Jarvis Law Office

A Big Transfer of Wealth Looms in the Future

The Baby Boomer generation in the U.S. will transfer $3.2 trillion to their heirs and most people have not made proper preparations, according to the Royal Bank of Canada Wealth Management, as reported by Private Wealth in "Americans Unprepared To Transfer Trillions, Report Says."

People who are not prepared to receive large sums of money do not normally deal with it well. This is especially true, if they are unprepared.

Collectively, that is exactly where the U.S. finds itself today.

Most Baby Boomers did not talk to their parents about their inheritances.

In turn, Baby Boomers have continued that tradition and are not communicating with their children about what they stand to inherit and how to manage it. Most do not even have wills, let alone any sort of comprehensive estate plan or wealth transfer plan.

While that might not seem like a big deal for any one family, it is a huge issue for the nation as a whole. Without proper preparation, there is a good chance that much of the $3.2 trillion could be wasted and lost.

An estate planning attorney can guide you in preparing an estate plan that fits your unique circumstances, including wealth transfer and sometimes even financial planning for your beneficiaries.

Reference: Private Wealth (Feb. 2, 2017) "Americans Unprepared To Transfer Trillions, Report Says."

Is Just Filling Out Documents Enough?

One state in the U.S. has taken the step of creating a professional class of people to help fill out legal documents, according to the Green Valley News in "Legal Documents for Less?"

While online services have sprung up allowing people to fill out estate planning documents for a relatively small fee, the State of Arizona has created a professional class called the Arizona Certified Legal Document Preparer.  This allows trained people to help others to fill out legal documents for less than an attorney charges.

In the case of Arizona, people are referred to attorneys if they require legal advice. That may or may not be the case for online legal document services. However, the question to ask is whether that is good enough?

These services might be appropriate for some people who know exactly what they need and who have very simple estate planning needs. The problem is that most people may not actually know what they need, even if they think they do.

One of the most important functions of estate planning attorneys is to listen to what clients want to do and then guide their clients to the best means to achieve their estate planning goals.

While some methods may be cheaper, it is possible that your needs can only be met by an attorney. That may initially be cheaper, but it can turn out to be more expensive in the long run.

You should always seek the advice and counsel of an experienced estate planning attorney when it comes to your estate planning needs.

Reference: Green Valley News (Jan. 30, 2017) "Legal Documents for Less?"

Controversial Nursing Home Regulations Could Face Scrutiny

Some elder law advocates have expressed concern that a Republican-controlled Congress may seek to repeal the sweeping new regulations on nursing homes, according to The New York Times in "Nursing Home Residents Gain New Restrictions."

The Centers for Medicare and Medicaid Services attempted to improve care at nursing homes in the fall of 2016.  As a result, the Obama administration pushed through new regulations that addressed patient complaints about their nursing homes.  

Many of the new regulations address basic quality of life provisions. For instance, they include regulations requiring that patients be allowed to have any visitors they want at any hour as long as the visitors do not disturb other residents and that residents be allowed to choose their own roommates as long as both of them agree.

Some regulations are more controversial, such as not allowing nursing homes to require that residents agree to binding arbitration to settle disputes and changing the rules about readmission to facilities after an extended hospital stay.

Reference: New York Times (Jan. 27, 2017) "Nursing Home Residents Gain New Restrictions."

Judge Gives Up after 20 Years of Dispute over Estate

Judge Mike Wood, the “Anna Nicole Smith judge” for 20 years, has recused himself from the case, according to Law.com in "'I Beg You to Recuse Me': Anna Nicole Smith Judge Finally Gets His Wish."

The dispute over the estate of J. Howard Marshall is an extreme example of a family fight over money dragging on for decades.

Most people know the dispute as the Anna Nicole Smith case, since she was Marshall's much younger widow. The court room proceedings were broadcast live on TV and highlights of the day's testimony often made the nightly news. There was enough interest in the case that the judge at the center of it, Texas probate Judge Mike Wood, became known as the "Anna Nicole Smith judge."

What most people do not know is that the dispute over Marshall's estate is still going on.

The family is still fighting over it.

Judge Wood was still presiding over the matter as well. He grew so frustrated, that he begged the parties to file a motion to recuse him from the case. He got his wish eventually.

It is very rare for an estate fight to be so contentious and go on for so long, that a judge gets this frustrated. This shows, however, just how bad family feuds over large estates can get.

Reference: Law.com (Jan. 26, 2017) "'I Beg You to Recuse Me': Anna Nicole Smith Judge Finally Gets His Wish."

Two Charged after Elderly Man Found Abandoned in U.K.

Law enforcement officials are accusing the wife and son of an elderly man of flying to the U.K. and intentionally abandoning the elderly man there, according to FOX News in "Relatives accused of abandoning Calif. man with dementia in UK parking lot."

The circumstances leading up to the charges began in November of 2015, when an elderly man was found in a parking lot in the U.K. He had dementia and authorities were not able to immediately identify him. Despite numerous calls to nursing homes and hospitals, no one seemed to know who the man was.

Authorities in the U.K. even contacted international embassies to help identify the man.

For eight months, the unidentified man was taken care of in a U.K. nursing home. It was only after the story was broadcast on the BBC, that a viewer recognized the man from an old high school yearbook. It turns out that the man is Roger Curry, 76, of California.

This is not the worst case of elder abuse that has ever been seen, but it is one of the most unusual.

In this incident, at least the victim was found by law enforcement and well taken care of. The same cannot be said for many other victims.

Reference: FOX News (Jan. 30, 2017) "Relatives accused of abandoning Calif. man with dementia in UK parking lot."

Film Highlights Importance of Estate Planning

Manchester by the Sea has drawn praise and is Oscar nominated.  It also highlights the importance of careful estate planning, according to The Spectator in "'Who gets the kids if we die?' Planning for the unthinkable."

A brother passes away and the guardian of his teenage son is notified. Caring for the teenager will not cost anything, since the estate will supply all of the funds.  However, there is a need to relocate to care for the child. One problem is this was not communicated to the guardian beforehand.

Planning to nominate the guardians for your minor child should something happen to you must be undertaken carefully. For obvious reasons, it is very important that you consider your options.

The guardian you choose should be emotionally and financially secure, so he or she can handle the difficulties of suddenly rearing an orphan.

It is also extremely important that the guardian not be surprised by your decision after you pass away. You need to choose someone who is willing to take on the responsibility.

Talk to your first choice for a guardian and make sure that he or she is ready to act in the role.

The film world is one thing but real life can often turn out to be different.

Reference: The Spectator (Jan. 31, 2017) "'Who gets the kids if we die?' Planning for the unthinkable."

An Estate Plan Should be Reviewed Annually

Reviewing your estate plan is a really good idea. There is no time to do this like the beginning of the year as the Wills, Trusts & Estates Prof Blog suggests in some estate planning tips in "Tips for Estate Planners in 2017."

Those tips include:

• Make sure that your life insurance policies are up to date.
• Write down what your children should do in the case of an emergency, including the name of your estate planning attorney so they know who to contact when the time comes.
• Save your family the hassle of providing for your burial and make those plans yourself.
• Put money in a 529 plan to provide for the educations of your children or grandchildren.
• Hold a family meeting so everyone knows what to expect from your estate plan.
• Create a list of your important assets for your estate administrator.
• Make sure that someone can access your passwords to digital accounts, in case something happens to you.
• Update charitable bequests, if necessary.

Your estate planning attorney can help you with this review process and provide guidance on how to make sure your affairs are in order and up to date.

Reference: Wills, Trusts & Estates Prof Blog (Jan. 21, 2017) "Tips for Estate Planners in 2017."

Caregivers Face Considerable Stress

There is a steep cost to caregivers and it isn’t only financial, according to The New York Times in "Who Will Care for the Caregivers?"

Medical advances continue to allow people to, on average, live longer. Therefore, there are more elderly who require people to care for them; that care is frequently provided by family members.

Unfortunately, with declining marriage rates, declining birth rates and a mobile society that can weaken family ties, there are fewer family members available to provide care for elderly relatives, and fewer who are willing to do so.

Providing care for elderly relatives often causes stress and other emotional problems. This is especially true if the caregivers have other jobs, which most do. People who serve as caregivers earn less over their lifetimes on average than those who do not serve as caregivers. Ironically, this makes it more likely that they will require care when they get older.

Elder law advocates and health care professionals need to be aware of these issues and potential problems. It is important to make sure that caregivers have the support they need both emotionally and financially. If they do not, then the ability to care for the elderly is compromised.

An elder law attorney can guide you in making plans, in the event that you require care in later years.

Reference: New York Times (Jan. 19, 2017) "Who Will Care for the Caregivers?"

It Cost More to Care for Parents than Raise Children

The average cost to raise a child to the age of 17 is $234,000, but the cost is much higher to take care of an elderly person, according to Forbes in "Families Spend More To Care For Their Aging Parents Than To Raise Their Kids."

The average cost of just four years of long-term care for an elderly person is $140,000.

As the article points out, parents receive considerable government support to help offset the costs of raising children. In some cases, the support comes in the form of tax credits and exemptions. Lower income families receive support in other ways, such as food stamps and free school lunches.

While there is some support for taking care of the elderly through Social Security and Medicare, there could be a lot more. Medicaid only pays for the long-term care of elderly people who do not have assets.

Families need to be aware of the high cost of caring for the elderly, so that they can plan accordingly.  

An experienced elder law attorney can help you and your family plan for the cost of caring for elderly family members.

Reference: Forbes (Jan. 18, 2017) "Families Spend More To Care For Their Aging Parents Than To Raise Their Kids."

Marilyn Monroe Memorabilia Still Draws Buyers

The plaque that used to mark Marilyn Monroe’s mausoleum is being sold, with the bidding starting at $10,000, according to TMZ in "Marilyn Monroe Mausoleum Marker Up For Grabs."

The plaque was replaced many years ago because it had become worn down by visitors touching it.

It is not clear from the reporting who will receive the proceeds from this auction. Monroe's estate is known to be very protective of her image, but it might not have ownership of this mausoleum marker.

One thing this shows is that anyone who has any fame at all would be wise to plan ahead about how things related to them will be handled after they pass away. Celebrity memorabilia can fetch enormous prices under the right circumstances. Estate planning should take that into consideration, so it is clear what can be sold and who will benefit from anything that is sold.

Reference: TMZ (Jan. 22, 2017) "Marilyn Monroe Mausoleum Marker Up For Grabs."