Estate Lessons From Michael Jackson's Death
“Estate Planning Lessons from Michael Jackson’s Death”
In this Article, we will discuss two important estate lessons learned by Michael Jackson’s death. The first estate lesson is your legal affairs must be planned prior to your death or incapacity.
A. Guardianship of Minor Children & Incapacity Planning
Michael Jackson’s death is an educational opportunity because seniors face similar issues to Michael Jackson. First, Michael Jackson (hereinafter referred to as “Jackson”) deceased with three minor children. Seniors are having children at later ages and are responsible for parenting their grandchildren. Unfortunately, death is a hard topic to grasp, but one that must be planned for.
Adult guardianship is a type of probate court, which administers an adult disabled person’s financial and health matters when they are incapacitated. Guardianship court also hears legal matters involving minor children who have either inherited money or need a guardian appointed. Jackson’s will preferred his mother, Katherine Jackson (hereinafter referred to as “Jackson’s Mother”), to be guardian over his children. A will gives the guardianship court clear direction of Jackson’s intent. Estate disputes costs heirs thousands to hundreds of thousands of dollars in attorney’s fees and costs and more importantly, your family may be destroyed over your estate matters. The key lesson is anticipating your potential family conflicts and have your proper legal paperwork prior to your death or incapacity.
B. Privacy as a Dispute Resolution Tool
Privacy is a vital tool in managing potential family estate conflicts. Michael Jackson’s will name his Family Trust as his estate’s beneficiary. A family trust or otherwise known as a “Living Trust” or “Revocable Living Trust” is a legal written document which distributes property upon your death or incapacity. Unlike a will, a family trust does not involve court procedures and is administered outside of court. Hence, in contrasts to probate court where a will is administered and is public information, a family trust has no requirement of mailing out notices to potential heirs including disinherited heirs. More importantly, a public document such as a will enables a will contest attorney to review the language and determine how to contest the validity of the will. In contrasts, a family trust is more difficult to attack because disinherited beneficiaries have no legal right to see the contents of the document. Therefore, the non-court involvement and privacy of a family trust is a powerful tool in managing potential family disputes.
by Sean L. Robertson, Attorney at Law
Robertson Law Group, LLC
9923 S. Ridgeland Avenue, Suite 99
Chicago Ridge, Illinois 60415
w) 312-498-6080 or RobertsonLawGroup@gmail.com
Thursday, July 9, 2009
Basic Estate Planning for Seniors
“BASIC ESTATE PLANNING FOR SENIORS”
Will vs. Revocable Living Trust
A will is a legal document, which distributes your property upon your death. A will is simple and inexpensive. A Revocable Living Trust is a legal document, which acts similar to a Will in distributing your property with minimal hassle. Generally, a Will involves hassle.
Probate Court: Why Wills Do Not Avoid Probate Court?
A Will is public information and must be filed with a court. For example, Sam Smith aged 70 years old is deceased and left a Will. Sam Smith’s heirs must file Sam’s Will with Probate Court in the County where Sam lived. Unlike a Will, a Revocable Living Trust (hereinafter referred to as “Trust”) if planned correctly involves no court involvement and passes one’s assets quickly and easily upon death or incapacity. The second difference between a Will and a Trust is that a Trust plans for incapacity such as Alzheimers, dementia, and strokes. Seniors must be concerned about long-term care issues and incapacity planning is more vital now than planning for one’s transfer of assets upon death. An estimated fifty (50) percent or more Seniors are facing long-term care issues.
Unlike a Will, a Trust plans for incapacity and death. For instance, Sam Smith has a stroke and is unable to manage his healthcare concerns and finances. In this example, Sam Smith’s family members must either have a valid power of attorney (healthcare and property) or face Guardianship Court. Additionally, your loved one’s must undergo a probate or court procedure in every state where you own real estate. This creates a burden upon your family and is expensive and time consuming. Generally, a probate proceeding takes a minimum of nine (9) months to several years. More importantly, court involvement creates family conflict because of Will contests. Attorneys and Executors must mail notices to potential heirs involving Probate Court unlike a Trust. A Trust is private and is typically a secret document with only beneficiaries knowing the Trust’s contents and assets.
Guardianship Court & Incapacity Planning
Guardianship Court is a type of court that determines whether disabled adults are incapacitated and administers a process in choosing a Guardian to manage their financial matters and healthcare concerns. With a Trust, one’s assets such as their primary home, checking/savings accounts, certificate of deposits and any other assets are titled in their Trust’s name. Many people add relatives to their accounts or house deed, but this is ineffective because their relatives may have lawsuits and other legal matters that could jeopardize a senior’s assets. In this financial crisis, lawsuits, judgments, and bankruptcy are major concerns. Second, relatives and friends die and complicate a senior’s life.
Powers of Attorney for Property & Healthcare
There are two types of Powers of Attorney: Property & Healthcare. A Power of Attorney for Property appoints an agent or successor agent(s) to manage one’s finances in case of incapacity. It is highly recommended to have multiple agents in case your original agent is unavailable, deceased, or incapacitated. An Agent is empowered to make financial decisions for the incapacitated adult. The second type of Power of Attorney is a Power of Attorney for Healthcare. In a Power of Attorney for Healthcare, you state your wishes in case you are unable to make healthcare decisions.
POWER OF ATTORNEY VS. LIVING WILL
A living will is an advanced healthcare directive informing your doctor how you want them to proceed in case of an emergency. A Power of Attorney is much broader than a Living Will and it instructs your physician how to proceed in a medical emergency and appoints an Agent (your loved one) to make healthcare decisions for you. Thus, unlike a living will, you appoint an Agent to consult with your physicians and family members and make healthcare decisions as you have instructed them to do.
Conclusion
In general, a will is sufficient for somebody that does not own any real estate and have limited assets. In contrasts, a Revocable Living Trust is generally better for Seniors with a house and modest to large assets. At a minimum, Seniors should have a Power of Attorney for Property & Healthcare in combination with a Will and/or Revocable Living Trust.
Sean Robertson is Principal of Robertson Law Group, LLC and he concentrates in Elder, Wills & Trusts, Probate & Guardianship, and Asset Protection for Seniors & Adult Disabled persons. Sean can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com. Sean has a nationwide Elder law, Estate Planning, & Asset Protection law practice. Sean has his website at www.robertsonlawgroup.com.
Will vs. Revocable Living Trust
A will is a legal document, which distributes your property upon your death. A will is simple and inexpensive. A Revocable Living Trust is a legal document, which acts similar to a Will in distributing your property with minimal hassle. Generally, a Will involves hassle.
Probate Court: Why Wills Do Not Avoid Probate Court?
A Will is public information and must be filed with a court. For example, Sam Smith aged 70 years old is deceased and left a Will. Sam Smith’s heirs must file Sam’s Will with Probate Court in the County where Sam lived. Unlike a Will, a Revocable Living Trust (hereinafter referred to as “Trust”) if planned correctly involves no court involvement and passes one’s assets quickly and easily upon death or incapacity. The second difference between a Will and a Trust is that a Trust plans for incapacity such as Alzheimers, dementia, and strokes. Seniors must be concerned about long-term care issues and incapacity planning is more vital now than planning for one’s transfer of assets upon death. An estimated fifty (50) percent or more Seniors are facing long-term care issues.
Unlike a Will, a Trust plans for incapacity and death. For instance, Sam Smith has a stroke and is unable to manage his healthcare concerns and finances. In this example, Sam Smith’s family members must either have a valid power of attorney (healthcare and property) or face Guardianship Court. Additionally, your loved one’s must undergo a probate or court procedure in every state where you own real estate. This creates a burden upon your family and is expensive and time consuming. Generally, a probate proceeding takes a minimum of nine (9) months to several years. More importantly, court involvement creates family conflict because of Will contests. Attorneys and Executors must mail notices to potential heirs involving Probate Court unlike a Trust. A Trust is private and is typically a secret document with only beneficiaries knowing the Trust’s contents and assets.
Guardianship Court & Incapacity Planning
Guardianship Court is a type of court that determines whether disabled adults are incapacitated and administers a process in choosing a Guardian to manage their financial matters and healthcare concerns. With a Trust, one’s assets such as their primary home, checking/savings accounts, certificate of deposits and any other assets are titled in their Trust’s name. Many people add relatives to their accounts or house deed, but this is ineffective because their relatives may have lawsuits and other legal matters that could jeopardize a senior’s assets. In this financial crisis, lawsuits, judgments, and bankruptcy are major concerns. Second, relatives and friends die and complicate a senior’s life.
Powers of Attorney for Property & Healthcare
There are two types of Powers of Attorney: Property & Healthcare. A Power of Attorney for Property appoints an agent or successor agent(s) to manage one’s finances in case of incapacity. It is highly recommended to have multiple agents in case your original agent is unavailable, deceased, or incapacitated. An Agent is empowered to make financial decisions for the incapacitated adult. The second type of Power of Attorney is a Power of Attorney for Healthcare. In a Power of Attorney for Healthcare, you state your wishes in case you are unable to make healthcare decisions.
POWER OF ATTORNEY VS. LIVING WILL
A living will is an advanced healthcare directive informing your doctor how you want them to proceed in case of an emergency. A Power of Attorney is much broader than a Living Will and it instructs your physician how to proceed in a medical emergency and appoints an Agent (your loved one) to make healthcare decisions for you. Thus, unlike a living will, you appoint an Agent to consult with your physicians and family members and make healthcare decisions as you have instructed them to do.
Conclusion
In general, a will is sufficient for somebody that does not own any real estate and have limited assets. In contrasts, a Revocable Living Trust is generally better for Seniors with a house and modest to large assets. At a minimum, Seniors should have a Power of Attorney for Property & Healthcare in combination with a Will and/or Revocable Living Trust.
Sean Robertson is Principal of Robertson Law Group, LLC and he concentrates in Elder, Wills & Trusts, Probate & Guardianship, and Asset Protection for Seniors & Adult Disabled persons. Sean can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com. Sean has a nationwide Elder law, Estate Planning, & Asset Protection law practice. Sean has his website at www.robertsonlawgroup.com.
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