Kansas and Missouri Estate Planning

Should I Tell My Children Anything About Their Future Inheritance?

Honesty is a good policy.

You have created an estate plan.

With the help of an experienced estate planning attorney, everything is in place and in alignment with your wishes.

You are done.

According to a recent Kiplinger article titled “To Prepare Your Heirs for Future Wealth, Don't Hide the Truth,” this is not necessarily true.

You should probably talk to your children about your plan.

People make many excuses for avoiding this crucial step.

Like what?

First, the topic is unpleasant.

People do not enjoy discussing death of a family member.

You cannot avoid death.

Why avoid talking about it?

It is a reality.

A second reason is fear of poor decisions.

Many parents believe if children know they will receive an inheritance, then they will no longer be motivated to work or go to school.

Discussing your wealth and your estate plan with your children can be a valuable time to pass along your wisdom and explain why you made the choices you made.

By doing so, you can help your children make informed decisions for their own future.

This can help with their own tax and estate planning, too.

Communication is key to any relationship.

Transparency in estate planning can help strengthen your family bonds, while setting your loved ones up for a successful transfer of wealth and wisdom.

Reference: Kiplinger (May 22, 2019) “To Prepare Your Heirs for Future Wealth, Don't Hide the Truth”

How do I Prepare My Family for My Passing?

Do not avoid the topic of your death.

You may think you are protecting your loved ones by avoiding the topic of your death.

You may prefer to keep conversations light and fun.

You may think you are helping them.

According to a recent MarketWatch article titled “Breaking the taboo: How to prepare your heirs for your death,” you are actually doing them a disservice.

The transitions are critical times.

After the death of an individual, families are at risk for losing peaceful relationships and financial assets.

The cause?

More often than not it is a simply a case of "unprepared" heirs.

This can breed distrust and disrupt communications.

How can you help?

Educate your heirs on the locations of your financial assets and estate planning documents.

Explain your wishes regarding incapacity and end-of-life care decisions.

Your family should understand your wealth, wishes, and values to discourage resentment.

Work with an experienced estate planning attorney to protect your loved ones through proper estate planning, especially when they are grieving and emotionally vulnerable.

Reference: MarketWatch (March 7, 2019) “Breaking the taboo: How to prepare your heirs for your death”

Should I Designate a Trust Company as My Successor Trustee?

Trust companies are not only for the wealthy.

You know you need to create an estate plan.

You are not positive what you need, but you think a last will and testament may suffice.

After all trusts and companies are only for those with extensive wealth, right?

According to a recent Pasadena Journal article titled “Who Can You Trust to Reduce Stress of Estate Planning?,” this is not true.

You do not have to be super wealthy.

Having a reasonable amount of financial assets means you may benefit from a trust company.

Trust companies provide a variety of services from managing or safekeeping assets to administrating trusts.

This range of services means having one appointed could be helpful to you.

How so?

First, a trust company can minimize opportunities for family disputes over your estate.

With no one family member in charge, there is a greatly reduced perception that anyone is being treated unfairly.

Trust companies can provide greater control within your estate planning, especially regarding how and when assets are to be distributed.

A trust company can also take some of the stress of estate planning from your shoulders, through the experience its brings to working with and coordinating the services of tax advisors, attorneys, and financial professionals.

Finally, a trust company has a fiduciary responsibility, meaning it is are bound to act in your best interests.

As you work with your experienced estate planning attorney, ask him or her about whether a trust and a trust company would be beneficial to your plan.

Reference: Pasadena Journal (February 20, 2019) “Who Can You Trust to Reduce Stress of Estate Planning?”

What Happens when Heirs Fight Over the Family Home?

Executors should act in the best interest of the estate and beneficiaries.

Your parents have passed away.

In their wills, they left the home to you and your siblings.

They also named one of your siblings as the executor to the estate.

This sibling does not want to sell the home, but the rest of you do.

What now?

According to a recent nj.com article titled “What happens when siblings can't agree about selling parents' home,” this depends on whether your parents left specific instructions regarding the home.

The executor is bound to follow the will and then make choices to benefit the beneficiaries and to settle the estate as quickly as possible.

If the parents left no specific instruction regarding the home, the executor can choose to sell the home and distribute the net proceeds.

Alternatively, the executor may also distribute the home "in kind" so the siblings own the home in equal shares as tenants in common.

This means all will be obligated to the home equity loan, if there is one.

One executor responsibility many do not understand is the responsibility of settling debts.

Creditors have a certain amount of time to present any claim to an executor.

This means the executor will make no distributions before this time period has ended in order to ensure debts are paid.

Some executors will further wait until after the any inheritance and estate tax returns have been filed.

What happen if the estate has not been settled and your parents have been gone for a very long time?

You can sue to have the executor discharged from his or her duties if they are not being completed in a timely manner.

Executors are often removed for ignoring court orders or acting unethically.

If your parents have only recently passed, give it a little time.

Serving as an executor is a significant role, let alone a significant responsibility.

The estate will not be settled in a day.

Reference: nj.com (October 4, 2018) “What happens when siblings can't agree about selling parents' home”

What are Some Practice Pointers for Legacy Planning?

Creating a legacy is a valuable aspect of estate planning.

You know you need an estate plan.

You want to minimize the issues your family will have to sort through after your death.

Where do you start?

How do you begin thinking through your wishes?

According to a recent The Street article titled “Planning Your Legacy: More Than Just Finances,” a good place to begin is with the four pillars of estate planning.

What are these?

Pillar 1: Values and Life Lessons.

You will pass more to your family than accumulated wealth.

You have lived a full life.

You have learned many lessons and made many memories.

Document these and share them with your loved ones.

Pillar 2: Instructions and Wishes to be Fulfilled.

An estate plan includes having the legal documents to provide instructions for care or finances should you become incapacitated.

You also need to document your wishes for preserving and distributing your assets after you die.

To ensure these are done properly, work with an experienced estate planning attorney.

Pillar 3: Personal Possessions of Emotional Value.

Not all possessions carry monetary worth.

Some carry memories.

What things do you own that may have special meaning to certain family members.

Talk about who will get what when it comes to these emotional assets, so your loved ones are aware of your wishes.

Pillar 4: Financial Assets and Real Estate.

Inventory your high-value assets.

This could include items such as antiques, jewelry, art, investments, retirement accounts, life insurance, and real estate.

Once you know what you have, your estate planning attorney can help you create a plan to preserve and distribute all of it according to your specific circumstances.

As you create your estate plan, do not keep your loved ones in the dark.

Talk with them.

They will thank you.

Reference: The Street (September 19, 2018) “Planning Your Legacy: More Than Just Finances”

What is the "Queen of Soul's" Estate Worth?

The estate of Aretha Franklin is valued at less than you might think.

This is true, even for the undeniably talented.

According to a recent Wealth Advisor article titled “Aretha Franklin’s Estate Almost Criminally Undervalued Even At $80 Million,” this is the case for Aretha Franklin.

Franklin had a beautiful voice.

She sold 75 million albums throughout her life.

She also helped write more than 100 songs for other musicians.

Surely she would have a ridiculously large estate.

Wrong.

Although her $80 million makes most jaws drop, it is nothing compared to many current celebrities.

For example, the net worth of Taylor Swift is estimated to be north of $300 million.

Why?

Franklin belonged to a different era.

Managers often took a significance cut of their artists earnings.

This was made worse for Aretha when she lost much of her earnings to her husband in a divorce.

He husband also managed her early career.

The industry has changed.

Many artists manage their own publishing and make most of their money through concert tours.

Even so, Franklin will leave a significant sum to her beneficiaries.

Reference: Wealth Advisor (August 20, 2018) “Aretha Franklin’s Estate Almost Criminally Undervalued Even At $80 Million”

Why is the Michael Jackson Estate Suing ABC/Disney?

Disney and ABC may have used songs without proper permission during a recent television special.

Did you watch the special “The Last Days of Michael Jackson”?

I did not, but if you did, then you may have witnessed the improper use of song and music video material.

How so?

According to a recent Fox News article titled “Michael Jackson's estate sues ABC, Disney over 'Last Days' TV special,” the estate of Michael Jackson brought a lawsuit against Disney and ABS listing at least 30 violations.

Why?

The special apparently used excerpts from several songs and music videos illegally.

Disney and ABC claim they are vindicated because it was a "journalistic" piece.

The lawsuit claims there is no merit in this defense.

The estate also claims Disney received and ignored a number of warnings before the show was aired.

The estate is seeking an injunction against further use of the intellectual property of the Michael Jackson estate as well as unspecified damages.

Intellectual property is an especially important and valuable asset to the estates of creative individuals.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Fox News (June 1, 2018) “Michael Jackson's estate sues ABC, Disney over 'Last Days' TV special”

What is the Latest on the Glen Campbell Estate?

The estate of Glen Campbell has piqued the curiosity of fans.

Celebrities capture the attention of the public.

Maybe they became celebrities because of their talents.

Maybe their fame was the result of political or business success.

Perhaps they were born into the spotlight.

However it happened, they are the subject of constant attention during their lives.

According to a recent Wide Open Country article titled “Glen Campbell’s Estate Might Not Be Worth as Much as You’d Think,” their deaths often draw curiosity and rumors.

One such example is Glen Campbell.

As a successful magician with more than 80 of his songs from his solo career hitting either the Billboard Hot 100, the Adult Contemporary Chart, or the Billboard Country Chart, Glen Campbell was well-known.

Campbell passed away from Alzheimer’s last August.

Since then rumors began to circulate about his estate.

One such rumor is about the size of his estate.

Originally, many thought it could be as large as $50 million.

The number is likely far lower.

Stanley B. Schneider—the accountant and manager for Campbell—recently filed papers reporting the assets to be closer to $410K.

What is the breakdown?

Money from Glen Campbell Enterprises and Glen Campbell Music, Inc. added up to $109, 634.

Two bank accounts hold a combined $959.

His AZPB Limited Partnership stake holds $296,164.

Interest in AZ Baseball Broadcast Holdings add up to $3,464.

Does his estate owe any money?

Yes, it does.

His legal fees, state taxes, and federal taxes alone add up to $118,200.

With a will contest and the claims filed, it is unlikely the Campbell estate will be settled any time soon.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wide Open Country (April 26, 2018) “Glen Campbell’s Estate Might Not Be Worth as Much as You’d Think”

What Happened to the Estate of Mary Thompson?

The estate of Mary Thompson may have been mishandled.

Guardianships are tricky.

If the appointed guardian is honest, your estate will be protected.

If the appointed guardian is corrupt, your finances could be in danger.

According to a recent Wealth Advisor article titled Judge Denies $1.4M County Clerk Estate "Conspiracy", this was the concern regarding the Mary Thompson estate.

Her family was not comfortable with the appointment of her Bryan Thompson as her guardian.

The niece of Mary Thompson had filed for her aunt to be declared incompetent.

The court declared her mentally incompetent.

So, why were they concerned?

The family alleged Bryan Thompson was illegally appointed.

They believed this to be a conspiracy to steal $1.4 million from her estate.

A lawsuit followed naming several parties as participants in this conspiracy.

The County Clerk of Court was recently dismissed from this lawsuit.

Why had the County Clerk of Court been included?

The clerk had not formally stamped the appointment of Bryan Thompson.

Was there really a conspiracy?

We do not know.

The estate is now under new care.

Alston and Doris Tucker are the current administrators of the estate.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: The Wealth Advisor (March 19, 2018) “Judge Denies $1.4M County Clerk Estate "Conspiracy"”

What Estate Sale Pointers Can We Glean from Celebrity Estates?

You can find treasures at estate sales.

Estate sales.

Perhaps the very thought of them stirs up mixed emotions.

They can be sobering because someone died and their worldly possessions are on display for sale.

They can also hold many unique treasures.

According to a recent The Wall Street Journal article titled “Estate Sales Are Cool Again,” the treasure of an item often lies in its history.

You can see this most vividly when the estates of celebrities are at auction.

For example, actress Greta Garbo lived a private life after her retirement.

This privacy intrigued many.

The result?

Her apartment sold for more than 43 percent of its asking price ... for a total of $8.5 million.

The belongings and homes of celebrities are researched, examined, and marketed to bring the highest profit when they die.

This is exactly the case with the estate of Hungarian actress Zsa Zsa Gabor.

The stories are what connect people to the items.

No surprising, the history behind and time or home is what buyers are actually purchasing.

Although you are likely not a celebrity, you can learn from them.

Record and research heirlooms in your home.

The "provenance" of a given item can either help fetch a good price at an estate sale or make it more meaningful when passed along to family members.

If you want to keep heirlooms in the family, work with an experienced estate planning attorney.

He or she will help you create a plan to meet your goals.

So, how do you find an "experienced" estate planning attorney?

First, ask around. Friends, family and other professional advisors are trustworthy sources.

Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").

Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.

How?

Two helpful online resources are just a mouse click away to assist with your due diligence:  Avvo.com and Lawyers.com.

Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.

In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: The Wall Street Journal (February 1, 2018) “Estate Sales Are Cool Again”