As the drama surrounding the Huguette Clark estate continues to unfold both in the courtroom and in the media, some of the heiress’s possessions will soon be sold as part of the estate settling process. As the sole heir of copper mining magnate William Clark, Huguette died last year at the age of 104, leaving behind a $400 million fortune. Though the question remains as to who will inherit her estate, the executors responsible for managing the property are planning on selling some of her real estate and personal jewelry.

Ms. Clark had been a recluse for much of the past 70 years, spending the last several decades isolated in a New York City hospital room. Her executors discovered that Ms. Clark had an extensive personal jewelry collection that had been hidden away in a bank safety deposit box since the 1930′s. 17 pieces were found in the box, all of them in their original packaging. The most valuable, a nine-carat pink diamond ring, is very rare and estimated at a value of between $6 and $8 million, though it is expected to sell for much more at the April auction held at Christie’s.

Apart from the jewelry, the estate is also selling three New York City apartments that Ms. Clarke owned, though she had not inhabited them for decades. All three of the apartments are located in the same building that overlooks New York’s Central Park, and are listed at an asking price of $55 million.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

It would be simple to state that every adult needs an estate plan, and that would be true.  But, that reason seems very easy to ignore.  It’s one of those woulda, coulda, shoulda things and we all procrastinate.  Here are 13 intriguing reasons you need an estate plan.

If you don’t have an estate plan:

1.  Your children may be placed into foster care, if you are incapacitated, in a car accident, or have a stroke.

2.  The court will choose who raises your children if you die, and it might not be who you would want.

3.  If you become incapacitated, the court will appoint a guardian for your money and assets, and it might be a stranger.

4.  You don’t get to pick who gets your assets when you die; state intestacy laws will dictate who gets what.

5.  Your assets will go through probate which means that a lot of money and time will be wasted.  In addition, your loved ones will experience increased hassle, stress, and your personal and financial business will be made public, for all to see.

6.  Your estate may pay unnecessary taxes, reducing the assets that go to your loved ones.

7.  Your spouse or children’s inheritances may be seized by creditors or divorcing spouses.

8.  You may disqualify a special needs beneficiary from receiving governmental assistance.

9.  Your assets may fuel a drug, alcohol, or gambling addiction.

10.  You will leave a greater burden on your family than if you had a plan in place.

11.  Your loved ones likely won’t know about all of your assets, so they may go unclaimed.  The Wall Street Journal reports that there are currently $32.9 billion in unclaimed assets.

12.  Your loved ones won’t know what to do with your beloved pet.

13.  Your loved ones won’t know your final arrangement wishes.

With an estate plan, you can stay in control of your health care and finances, care for loved ones, reduce the burden on loved ones, and save money.  Consult with a qualified estate planning attorney to get a comprehensive estate plan in place.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

Your children and grandchildren will both be appreciative if you include your grandchildren in your estate plan.  The acknowledgement of your grandchildren makes memories, shows your love, creates family bonds, and carries on your legacy.  Here are 7 ideas for ways to include your grandchildren in your estate plan; pick what works for you, discard what doesn’t.

• Set up a 529 Plan for each grandchild.  529 Plans are used to pay college expenses; the investments grow tax free and are distributed tax free when used for college costs.  Other family members and friends can contribute to the same account.  You can contribute small sums or large amounts, depending on your goals and financial situation.

• Write a love letter to be given to your grandchild at your death or upon the attainment of a certain age.  Be sure to be in photographs with your grandchild; don’t always be the person taking the pictures.  Frame a photograph and keep it with the love letter.

• Select a family heirloom or a special personal possession for each grandchild.  Jot down why the item is special and why it’s being passed to that particular grandchild.

• Provide for a financial gift for each grandchild in your will or trust.  Even a gift of $1,000, $3,000, or $10,000 will be exciting for your grandchildren.

• During your lifetime, pay for a special activity for your grandchildren.  Examples would be music lessons, gymnastics, horseback riding lessons, sports camp, summer camp, or a class trip.  You’ll get to see your grandchildren enjoy these activities.

• Sponsor a family trip such as beach house or a trip to ranch or lodge.  Experiences are the best gift, even better than cash.

• Incorporate your grandchildren into your charitable planning.  Let your grandchildren choose their favorite charity to receive a donation.  Provide choices; they may choose the zoo, animal shelter, library, or literacy programs for other kids.

If you have grandchildren, we encourage you to include them in your estate plan in a way that makes sense for you.  If you need guidance or helping implementing your plan, consult with a qualified estate planning attorney.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

The stress of disability, death, funerals, money, family heirlooms, and hurt feelings are the makings for many a family fight.  It sometimes feels inevitable; however, you can prevent much family discord with good estate planning.  Keep in mind that family fight prevention is important in all families; it’s even more important in blended families wherein there are built-in jealousies and natural competition.  Here are 7 ways to avoid family fights with good estate planning.

• Talk it Over.  Communicate with your loved ones; let your loved ones know that you’ve done estate planning and let them know your wishes.  Explain who’s in charge, when and why.  Show them where you keep your estate planning documents and other important papers and give them your estate planning attorney’s contact information.

• Put it All in Writing.  Don’t rely on verbal communications; they have no legal authority and can be misremembered.  Your estate plan, including the distribution of personal property and final arrangements must be in writing.  Put your love in writing too by including love letters for each family member with your estate planning documents.

• Pre-Plan Your Funeral or Other Final Arrangements.  Let your loved ones know your wishes regarding final arrangement; this avoids many squabbles that can end in life-long estrangement.

• Designate Beneficiaries of Family Heirlooms.  Choose a special possession to be passed to each loved one and include a letter indicating why it’s special and why it’s being given to that particular beneficiary.

• Name Back-Up Trusted Helpers.  Be sure to name contingent, as well as primary trusted helpers, in all of your estate planning documents, as appropriate.  For example, name a back-up agent under your financial power of attorney in case your first choice is unable or unwilling to serve.

• Give Equal Inheritances.  While none of us like to think so, money equals love.  If you give more money to one beneficiary of a particular class (i.e. grandchildren, children, or siblings), it will be interpreted that you love that person more than the others and that you’re punishing those who received a smaller inheritance.

• Don’t Make Your Children Wait.  If you’re in a blended family, don’t make your children from a previous marriage wait until your second (or third) spouse dies to provide an inheritance.

You can avoid family fights with good estate planning; consult with a qualified estate planning attorney to do so.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

It’s important to have your estate planning documents and other important papers kept in a safe, accessible place.  This will allow your loved ones to get the information that is needed after your death, or during an emergency.  It’s a good idea to take the time to organize all of your information as soon as possible, so that you’re always prepared and to lessen the stress and burden on loved ones.  Take a look at the following information, to better understand this need.  If you have any questions, or if you’d like to review your estate planning documents, contact an estate planning attorney.

Without the right documents in place, it can be hard for your loved ones to handle your affairs during your time of need.  If you’re taking the time to organize all of your important documents, take a look at the following information.  You should collect the following:

• Estate planning documents
• Other legal documents
• Real estate deeds
• Life insurance policies
• Retirement account statements
• Bank account statements
• Business documents
• Bill account statements
• Vehicle titles
• Tax returns
• Complete updated list of all user names, passwords, and PINs

All of these documents will be useful to your loved ones.  It will allow them to easily handle your affairs.  If you choose not to organize all of your important documents, it may take a lot longer for your affairs to be handled.  Additionally, your wishes may not be respected if the information isn’t readily available.  Taking the time to carefully organize your documents is well worth the added effort.

Consider storing all of your documentation in a safe place such as your home office desk drawer.  This will keep your documents from being damaged and can avoid theft; be sure to let loved ones know where you keep them. You may also consider keeping copies of important documents at a loved ones home.

If you have any questions, or if you’d like advice on organizing your estate planning documents, consult with a qualified estate planning attorney.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

If you’re beginning your estate planning, you may be considering creating a trust.  This can be a great planning tool that allows you to control your assets and determine how they will be distributed after your death.  Take a look at some of the information below, to better understand the use of a trust.  If you have any questions, or if you’d like to create a trust, meet with an estate planning attorney.

What is a trust?

A trust is a powerful estate planning tool that many people choose to create.  This legal agreement makes it possible for you to hold your assets and plan for their management and distribution.

As the trustmaker, trustor, settler, or grantor, you decide on the terms of your trust.  This includes deciding how your assets will be distributed to your loved ones, the beneficiaries.  You’re also able to appoint the trustee, the person who will manage your trust’s assets and affairs when you can’t through incapacity or death.

As the trustmaker, you will transfer assets into the name of your trust.  The trustee will then be responsible for managing the assets and distributing to your chosen beneficiaries according to the terms that you’ve outlined.

Choosing a trustee

When choosing a trustee, you will need to make sure that he or she is responsible, honest, and reliable.  Your trustee will be responsible for handling a number of affairs, and you need to make sure that he or she is capable of the job.  You should carefully discuss the duties that go along with the job so that your trustee understands what is expected of him or her.

Take a look at our next blog post (part 2 of 2) to learn more about the use of a trust.  If you have any questions, or if you’d like to create a trust, consult with a qualified estate planning attorney.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

It can be difficult outlining your estate planning goals when you’re just getting started with the entire planning process.  It may seem overwhelming trying to make sure that all of your needs will be met.  We’ve outlined some estate planning goals that you may want to consider implementing in your plan.  If you have any questions about the information below, or if you’d like to start your estate planning, consult with a qualified estate planning attorney.

• Decide how your assets will be distributed to your beneficiaries so that your assets are in good care and you’re able to help your loved ones
• Make sure that your family business is protected after your death
• Eliminate the need for probate so that your loved ones are able to receive their inheritances more quickly and your affairs are kept private
• Protect the assets that you leave to your beneficiaries so that they are free from creditors and ex-spouses
• Make sure that you have a proper long-term care plan in place so that you’re able to afford your aging care needs
• Make sure that your minor children will always be cared for and protected
• Have a plan in place so that you’re prepared for possible medical emergencies
• Purchase enough life insurance so that your family is able to survive, even if your income is lost
• Choose who will help to handle your affairs after your lifetime so that your affairs are handled with care
• Protect a family member with special needs so that he or she receives the care that is needed

Working with an attorney can help to make the planning process easier.  Your attorney will be able to help you develop goals and create a plan that will meet all of your needs.  If you have any questions about the estate planning process, or if you’re ready to begin your estate planning, consult with a qualified estate planning attorney.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

When handling your estate planning, you may have fears about not choosing the best documents.  Taking the time to understand each document and tool will allow you to create a plan that meets your needs.  Take a look at two more documents and tools that you may want to consider using.  If you have any questions, or if you’re ready to begin your estate planning, call our estate planning law offices.

Durable Power of Attorney

With this document, you can ensure that your financial affairs will always be in order, even if you’re unable to make your own decisions due to incapacity.  You will appoint an agent who will be responsible for handling your financial obligations during your time of need.  You can do a number of things with this document:

• Appoint an agent who will be responsible for your financial responsibilities
• Make sure that your finances will always be in order, even if you’re unable to handle them yourself
• Ensure your family access to your finances

Without this document, your family will have to go to court, in order to get the approval needed to access your financial documents and handle your affairs.  The court will stay involved, which is expensive and a hassle for your family.  It’s important to be prepared ahead of time.

Letter of Instructions

This is a great way to make sure that all of your wishes are followed.  With this tool, you can explain some of your last minute requests.  While this is not a legal document, it’s a beneficial tool to include in your planning.  You can do a number of things with this planning tool:

• Outline funeral wishes including cremation or burial preferences and services wishes
• List contact information of your advisers and attorneys
• Show a complete list of assets
• List account information including account numbers and pins

This is a great way to further direct your loved ones after your death.  Talk to your attorney about how to go about creating this letter.

If you have any questions about the above information, or if you’d like to begin your estate planning, consult call now for a confidential estate planning consultation.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

One of the main problems when it comes to elder financial abuse is that too many people simply don’t understand when they are participating in this form of abuse. Parents and grandparents love their children enough that they want to give them everything that they can, but there comes a point when it is the child or grandchild’s responsibility to refuse that help.

When an elderly person gives away money or assets, they may not be in their right mind, or they may not realize that this money may be necessary for survival at some later time. For example, if grandma gives her house to you as a gift and a couple of years later she needs to enter a nursing home, she will be penalized for giving away assets and may not qualify for Medicaid.

Of course, there is always that one relative that goes to mom and dad for help on a constant basis. This person may have been doing this from the time they left home, and is still doing it as mom or dad is getting ready to enter a nursing home. Though helping children when they are young and just starting out is understandable, after that person is old enough to provide for him or herself, it is no longer acceptable to go to their parents for money. This could be considered financial abuse.

If your parent or grandparent is trying to give you money or assets that would not be considered a normal gift, you will want to gently refuse that gift. In the event that someone in the family is milking the elderly person for money on a constant basis, it is the family’s responsibility to see that the person understands what they are doing to their elderly loved one.

Although a parent or a grandparent will not usually sue to get back money they have given to their children, that person’s estate or trust can and probably will, when mom or dad becomes incapacitated due to dementia or some other type of illness.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.