Kansas and Missouri Estate Planning

Should I Appoint "Co-Executors" Under My Last Will?

Naming an executor should not be done lightly.

Your estate planning attorney says you need an executor (also known as a personal representative).

The problem?

You have multiple children and do not want to choose.

Maybe you can name all of them to serve together.

Or not.

According to a recent nj.com article titled “I’m planning my will. Is it bad to have more than one executor?,” you should carefully consider the pros and cons.

Why?

The role of an executor is a vital to settling an estate.

The executor must gather all assets, pay liabilities and debts, and then distribute the remaining assets to heirs according to the instructions in the will.

If necessary, an executor can hire professional help.

For example, an executor may hire an accountant for the estate tax return or a real estate agent for the sale of a home.

Appointing multiple children can either help or hinder this process, depending on their relationship to each other.

If they get along well and each has different skill sets to offer, then they can divide and conquer responsibilities.

If they do not get along, disagreements can bring the estate administration to a standstill.

Having an odd number of executors would be key.

Why?

With an even number, there may not be a majority in agreement on a decision.

Perhaps you could designate a method to break any deadlock, such as rock, paper, sissors?

Even if they do agree, all of their signatures may be required to take action.

Coordinating this will take both time and energy.

Conflicts among siblings can also be a problem if you name a single sibling.

How so?

Other siblings could claim a conflict of interest and contest actions taken (or not taken) as executor, costing your estate in legal fees and time.

Carefully consider your family dynamics before naming your executors.

Discussing your situation with an experienced estate planning attorney can help you make an informed decision to meet the needs of your family.

Reference: nj.com (May 22, 2019) “I’m planning my will. Is it bad to have more than one executor?”

What Should I Know about Leaving an "Unequal" Inheritance?

Equal and fair are not necessarily synonymous.

You are reviewing your finances and assets.

You know you will likely be leaving some sum behind.

You have more than one child.

How should you divide the inheritance pie of assets?

According to a recent Ladders.com article titled “More parents are leaving unequal inheritances to their adult kids,” equal may not be the best choice.

A recent Merrill Lynch study found about two-thirds of Americans believe unequal divisions are a good choice depending on circumstances.

It is not merely theory.

The IZA Institute for Labor Economics found those who actually left unequal amounts through wills more than doubled from 1995 to 2010.

Will this not cause conflict among siblings?

Perhaps.

Managing expectations will help.

If you explain your estate planning and the underlying reasons for your decisions, your children will be less inclined to blame your or each other.

What are common reasons for unequal division of an estate?

One is the number of grandchildren.

If a person has more children, many parents see this child as having a greater need for funds.

Another reason is the amount of care provided.

If a child serves as the primary caregiver for an aging parent, this individual may deserve a greater inheritance for the sacrifices of time, energy, and finances.

Sometimes stepchildren are left less than adopted or biological children within blended families.

Sometimes they are not included at all.

However, if you are not careful, stepchildren may inherit everything and your children zippo.

If this possibility caught your attention, consult with an experienced estate planning attorney without delay.

In addition to a difference in sum, you may consider a difference in disbursement.

You may have responsible and capable children who can receive an outright inheritance.

You may also have minor children, children with disabilities, or children with addictions, or children with an undesirable spouse who require more complex and protective planning through a trust.

Do not leave your estate plan as a surprise.

Get the family together and explain your wishes so everyone is on the same page.

Surprises are fun when it comes to birthday parties, but less so when it comes to inheritances.

Reference: Ladders.com (March 25, 2019) “More parents are leaving unequal inheritances to their adult kids”

If I Am Not "Rich," do I Still Need an Estate Plan?

Wealth is not the only thing at stake with estate planning.

You make a modest living.

You wake up every day.

You go to work.

You pay your bills.

You feed your family.

You save what you can.

You are not wealthy.

Surely, you can avoid estate planning.

Right?

According to a recent Investopedia article titled “4 Reasons Estate Planning Is So Important,” this could not be further from the truth.

Your estate plan will look different than a plan for a super wealthy CEO, but you should have one.

Why?

You will want to choose your beneficiaries.

You have worked hard.

You have been intentional with your finances.

Chances are you do not want someone else deciding who gets your hard-earned assets when you die.

To take control of your asset distribution you will need an estate plan.

You will want to protect your children.

Do you have minor children?

Have you thought about what will happen to them if you die?

Who will rear them?

How will they be reared?

You will need an estate plan to name a guardian for your children should both you and your spouse die.

Without this, a judge will pick the backup parents for them without any input from you.

You will want to minimize taxes.

Without proper planning, you could leave your loved ones with significant tax bills.

While neither Kansas nor Missouri has an estate or inheritance tax, a goodly number of states do.

An experienced estate planning attorney can help you reduce or eliminate estate or inheritance taxes.

You may even be able to reduce income taxes owed by your loved ones on the assets they receive.

You will want to leave your family in peace.

You lack of an estate plan can even cause family feuds.

If you become incapacitated, you can appoint persons of your own choosing to act as agents on your behalf financially and medically.

With protections and directions in place, you will minimize opportunities for your loved ones to fight.

Estate planning is not only for the wealthy.

It is for those who want to protect everyone they love and everything they have.

Reference: Investopedia (May 25, 2018) “4 Reasons Estate Planning Is So Important”

Why are Two Daughters of a Deceased Winemaker Fighting?

Money is often the cause of arguments.

Siblings argue.

They do it as children.

They do it as adults.

Some are petty.

Some carry more weight.

According to a recent Napa Valley Register article titled “Wealthy Napa businessman's heirs seek answers about $92 million estate,” the argument between two daughters of Ed Keith is one of the latter.

Why?

It involves the estate of their father.

An estate estimated at about $92 million.

What is the fight over exactly?

Lisa Keith is suspicious of her sister Celeste White’s actions in her role as co-trustee of their father's estate.

The result?

Lisa has filed a lawsuit seeking an accounting from her sister regarding the purchase of a Land Rover for a winery and a $2.4 million condo in Santa Barbara, a $15 million investment in real estate property, and the construction of a stable for polo ponies.

Lisa believes Celeste should refund about $1.8 million to the trust her father established.

The Napa County Superior Court has denied her request for an accounting of funds from her father’s foundation.

Why?

She is not a beneficiary or a director of the foundation.

Lisa is, however, a beneficiary of the trust.

As such, she still wants an accounting of those funds.

The trust had been set up by Ed Keith to distribute $10 million to a winery, $2 million to his grandchildren, and $1 million to each of his five children.

Half of the remaining $76 million was to go to the Edward A. Keith Foundation to benefit disadvantaged youths.

After bills were paid, $9.2 million remained to be split amongst his children.

The other $38 million was to be divided equally among Keith’s five children. After all the bills were paid, there was $9.2 million left to be split among the five siblings.

Lisa believes Celeste is getting far more.

How?

Celeste and her husband are co-trustees.

They take $300,000 annually in trustee fees.

Lisa believes they are using the trust and foundation to fund their own lavish lifestyles while managing the foundation in a way her father never intended.

Lisa also claims she and her other siblings were removed as directors of the foundation by her sister.

Do you want to avoid a situation like this?

Work with an experienced estate planning attorney to create a plan to fit your needs and goals.

He or she will also be able to help facilitate a conversation with your family so they are all aware of your wishes before you die.

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: Napa Valley Register (February 3, 2018) “Wealthy Napa businessman's heirs seek answers about $92 million estate”

What is Acceptable Funeral Etiquette?

Funerals are a time of respect.

Someone close to you has died.

Now, you are going to a funeral.

How should you act?

What should you wear, let alone say?

According to a recent Business Insider article titled "I'm a funeral director -- screaming fights, drunken propositions, and blasting Nirvana are all part of my job," do not take your cues from sitcoms.

The article contrasts proper funeral behavior with stories of inappropriate behavior, as a funeral director relates some of his wildest experiences.

What do these include?

Someone has worn a bikini to the funeral.

Others ordered pizza,

A few individuals even had a fight.

Yikes!

Although these things do happen, they are not proper behavior.

You should dress nice and act in a respectful manner when at a funeral.

And when it comes to family funerals, any unpleasant interactions at the funeral can negatively affect how the family deals with the estate distribution.

Although you cannot control the behavior of others, you are responsible for your own.

While we are on the subject of proper etiquette, when it comes to interpersonal communications click here for an excellent article on the subject by Anna Kucirkova on the www.mastersincommunication.org website.  

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: Business Insider (July 25, 2017) "I'm a funeral director -- screaming fights, drunken propositions, and blasting Nirvana are all part of my job."

How do I Create a Will that Cannot be Challenged?

That is a tough one, but there are steps you can take.

With people living longer, things can be messier.

For starters, with increased longevity there is a greater likelihood that later-in-life remarriages will occur with more assets accumulated. In addition, there are more children, stepchildren, grandchildren, step-grandchildren, not to mention great-grandchildren on both sides.

Yes, things can get very complicated.

Throw in a sense of "entitlement" here and there ... and you have one volatile cocktail.

Can you say "Molotov cocktail"?

For some practical pointers to help ensure your estate plan can withstand attack, we turn to a recent USA Today article titled “5 ways to make a bulletproof will.”

The no-contest clause.

This provision discourages people from disputing a will. Basically, the clause means that anyone who challenges the will gets nothing.

Silch.

This clause can make beneficiaries think long and hard about trying to get more than you bequeath them. Even better, it will make any attorney reluctant to take their case, too.

Emphasize your wishes verbally.

Creating your will may seem a personal and private task. However, you should really try to communicate with your heirs to avoid unintended turmoil after your death.

If you tell your loved ones what you are intending and why while you are alive, then you can explain your rationale.

It also clarifies that your choices are yours alone—making it more difficult to successfully contest the will.

Allowing heirs to understand your wishes can defuse hard feelings.

Ask your doctor to verify your mental health.

A valid will must be made by someone of sound mind. Disgruntled heirs may question whether you were in your right mind when you made the will. In fact, they may try to convince a judge to disregard your wishes.

Solution?

If you are older, consider having a doctor examine you close in time to when signing your will. Have the doctor write a note that you are sound of mind.

Get a lawyer.

The do-it-yourself, fill-in-the-blanks will-preparation software is inexpensive and convenient.

However, in life you tend to "get what you pay for," yes?

 A cheap online will may not be up-to-date with current laws, which could open the door for challenges.

Consider a living trust.

Unlike a will, a living trust legally transfers your assets to designated beneficiaries without probate.

A trust is private, but a will is a public record.

Also, since by definition as living trust is created and used by you during your lifetime, a living trust is more difficult to challenge at your death.

A living trust can include directions for your finances in the event you are incapacitated, whereas a will cannot.

Why?

A will only has authority when you die and if it is delivered to the probate court within the statutorily required timeframe (i.e., six months in Kansas and one year in Missoiuri).

Speak with an experienced estate planning attorney to learn more about whether a living trust or a will is right for you.

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: USA Today (Sept. 27, 2016) “5 ways to make a bulletproof will”

What is the Latest on the Melva Bucksbaum Estate Feud?

As a recent report put it ... "Get your nose plugs out cuz this really stinks…."

The monumental battle over the estate of art collector Melva Bucksbaum is now being broadcast in a family war of words on Facebook.

According to an article in The New York Post Page Six, that battle began when Melva, a former trustee of the Whitney Museum, died at 82 last year.

In the article, titled "Melva Bucksbaum's $100M estate battle rages on Facebook," it seems her husband Raymond Learsy—a trader, developer, and fellow Whitney board member—challenged her will and claims he is entitled to half her fortune.

What is it worth?

More than $100 million.

The action infuriated Melva's adult children, Gene and Glenn Bucksbaum and Mary Bucksbaum Scanlan.

Glenn believes Learsy schemed to seize the family millions.

In fact, Glenn wrote the following on his public Facebook page: "Raymond Learsy…This name should be known. Full definition of cad. 1: An omnibus conductor 2: a man who acts with deliberate disregard for another's feelings or rights."

Learsy's lawyer, Hugh J. Freund, said of the real estate, "It was Ray's own personal estate planning and has nothing to do with Melva's estate. Glenn [is] going out of his way to cause a problem, where everyone else in his family is being constructive to resolve this issue."

Learsy was left about $10 million in trust under Melva's will. In addition, he also was to receive a $25 million home, but now he claims he is entitled to half of her fortune.

So what is included in her "fortune"?

That would include a Tribeca loft, homes in Connecticut and Aspen, and a valuable art collection.

Melva's New York friends are "appalled" that Learsy is planning a memorial for her in April while contesting the will.

As one friend put it, "It's distasteful. He's acting like the grieving husband around New York while challenging her will in Aspen."

Bucksbaum's children's lawyer, William D. Zabel, added, "I stand by my prior statement that he [Learsy] is a colossal cad."

Well, there you have it.

That is the latest on the Melva Bucksbaum estate.

I would gladly entertain some questions about famous families who get along.

Unfortunately, you rarely hear about those estates.

Why?

Because they are not newsworthy. 

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 New York Post Page Six (February 29, 2016) "Melva Bucksbaum's $100M estate battle rages on Facebook"

What is Happening with the Estate of Ralph Phillips, the Wealthy Ohio Industrialist?

Well, the civil lawsuit has been withdrawn, but the probate case filed in 2009 is still pending.

What is at stake?

The fortune of deceased industrialist Ralph Phillips.

The contestants?

His four daughters, with three pitted against the one he appointed as executor. 

It seems the three are upset with how their sister is dividing the estate.

The Mansfield (OH) News-Journal recently reported on the probate case, initially brought in 2009,  in an article titled "Court dispute over Ralph Phillips' estate withdrawn."

So, who was Ralph Phillips?

He was president and CEO of Phillips Manufacturing and Tower when he died in a motorcycle accident at age 65 in September 2009.

While all four of his daughters were named in his will, one daughter, Angela R. Phillips Deskins, was appointed executor.

Angela seemed a logical choice as she was active in his business operations.

Four appraisers with different specialties, including real estate and firearms, were tasked with conducting a valuation of estate assets.

They set the value of the non-business-related holdings at $4.74 million based on a 2010 inventory.

Included in these appraised assets were farm equipment, properties in Knox and Huron counties and South Dakota, numerous vehicles, bank deposits, and roughly $720,000 owed to Phillips on a note from Shelby Land Company (Shelby Country Club).

The three daughters filed a civil lawsuit in 2012, claiming Deskins interfered with the estate causing them to be deprived of trust inheritances they had expected. They alleged that their sister, the executor, failed to carry out their father's wishes to recapitalize his business assets prior to his death.

The three daughters sought an order from the probate court for equal distribution of the trust portion of Phillips' holdings. These assets included stock valued at more than $16 million in various companies, according to one court document.

The three sought $7 million in compensatory damages, plus punitive damages.

Yikes!

A little sisterly love there.

Deskins stated in court pleadings that she held officer positions within her father's companies and complied with all duties. In addition, she noted that, during his lifetime, her father rejected an estate planning proposal which her sisters claim would have affected their inheritances by recapitalizing the company so each daughter would receive a one-quarter share.

"Throughout his life, until his untimely death, Ralph Phillips remained very much in control of his companies and his plans for the disposition of his estate and those plans did not include the recapitalization of his companies," a defense brief said.

What is not clear from the article is whether Ralph Phillips ever had a "sit down" meeting with his four daughters.

In my experience, communication is key.

In fact, if you suspect there may be a family feud brewing, then it may be best to have an "heiring of the grievances" while you are alive.

That way family relationships are more likely to be preserved (and attorneys are less likely to be unnecessarily enriched) at your passing. 

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: Mansfield (OH) News-Journal (January 4, 2016) "Court dispute over Ralph Phillips' estate withdrawn"

How do I Preserve My Family Farm or Ranch for My Children?

For starters, I commend you for asking the question.

That is the first step.

However, procrastination is the death bed of good intentions.

I get it. 

Who likes to talk about death?

Aside from morticians, even thinking about death makes most folks uneasy.

This includes farmers and ranchers, who really need to think about the future of their businesses and the livelihoods of their survivors.

It is about the land.

This was the focus of a recent AgriNews article titled "Estate planning can lessen grief for survivors."

While you will want to click over to the article yourself, it reinforces that land is the heart and soul of any family farming and ranching business.

Estate planning is about protecting that land.

And your family.

Let me guess - you want to preserve family and business relationships, avoid giving any more to the government than necessary, and provide peace of mind for both you and future generations, right?

One "yuge" challenge is how to handle children who are active in the farming and ranching operations ... and those who are not.

Communication is key, as with all estate planning.

I recommend that you think through the ultimate outcomes you want to achieve and make sure you have "spousal alignment" with these objectives.

Then, get together with your estate planning attorney to help you understand the legal requirements to make them happen.

While you are at it, discuss including "remarriage protection" provisions in your estate plan to avoid losing the entire estate to a "next spouse" (and his or her children) if one of you dies and the surviving spouse remarries. 

Once you get your estate plan nearing the signing stage, communicate your objectives with your children.

Why?

Better to "have it out now," rather than later!

Family feuds, and the attorneys involved, can be expensive.

Work with an estate planning attorney to make sure you protect your land and do what you believe is right and fair for your children.

Make sure any attorney you select is well-versed in current estate laws and farm business operations in the state.

In all things, measure twice and cut once.

Your local county extension agent likely has a short list of such attorneys if you need a referral. 

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: AgriNews (December 31, 2015) "Estate planning can lessen grief for survivors"

What is a Family (Estate Planning) Meeting?

Have you made it through the holidays with your family without any interpersonal friction?

Okay, let me be more blunt.

Were there any "skunks at the picnic" when y'all got together over Thanksgiving, Hanukkah or Christmas? If no, then tomorrow night (New Year's Eve) may be yet another opportunity.

If there were any family slights, then they likely were over nothing significant and never materialized into a squall.

Emotions run high during the holidays.

Understatement.

On the other hand, let's pretend that your family is gathering, not for a holiday together, but after a family member has passed away.

What if the disposition of the estate is not in alignment with the expectations of one or more family members?

[Translation: Someone is not a happy cat.]

In such instances, to paraphrase Uncle Billy in "It's a Wonderful Life," there may be a family squall shaping up into a storm in your family!

In most instances, it could all have been avoided.

How?

Communication.

As a recent article in The Wills, Trusts & Estates Prof Blog, titled “Using Family Meetings to Smooth Over and Explain Estate Transitions,” puts it:

Family fighting over estate plans and court challenges are sometimes unavoidable. When people feel slighted or have grievances, they often feel compelled to fight to the end. However, it might help avoid court challenges to your estate plan if you gave your family a chance to express their feelings before you pass away.

Unfortunately, when folks believe they have been treated unfairly in an estate plan, they often head right to the court house to challenge the plan.

For these folks, they see litigation as their only opportunity to get the estate plan changed and made right by publicly airing their grievances. 

Again, the solution is communication.

And it does not need to be in conjunction with a family holiday gathering.

In fact, the notion of a "family meeting" is rather simple conceptually.

You can call a family meeting, inviting everyone with a potential stake in your estate plan.

[You should not allow any hard liquor or firearms at the meeting.]

At the meeting discuss how your estate planning distributions are to be handled and, even more important, why.

Then, open the floor to feedback.

This will give your family an opportunity to engage in dialogue about it now, instead of retaining a litigator later.

Speak now or forever hold your peace, so to speak.

Naturally, a family meeting regarding an estate plan is not necessary for most families.

On the other hand, in those situations where it is necessary, this approach can save not only all of the financial costs of litigation, but also the more important emotional and relational costs of litigation.

Ask your estate planning attorney about whether a family meeting would benefit you and your loved ones.

Heck, you may want your attorney to attend and be the facilitator.

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: Wills, Trusts & Estates Prof Blog (December 7, 2015) “Using Family Meetings To Smooth Over And Explain Estate Transitions.”