Question 1: Who receives Amy Winehouse’s millions?

Because Ms. Winehouse did not leave behind a Will, her parents will receive her entire estate. Though the late singer left behind a brother and an ex-husband whom she apparently still had good relations with, even if she wanted these two people to receive any of her estate, it will not happen because she did not have a Will. The United Kingdom’s laws state that whenever someone dies without a Will, known as dying intestate, that person’s property passes to their closest relatives. In this case, it is Ms. Winehouse’s parents. All states in the USA have similar laws.

Question 2: Did she own anything else that doesn’t pass through probate?

The probate process applies only to specific types of property. Anything Ms. Winehouse owned in her name alone will have to go through probate before her parents can become the legal owners of it. If, for example, Ms. Winehouse had established a trust (unlikely), owned property jointly with someone else, or had property that named a beneficiary upon her death, none of this property would go through probate. However, even if she had created a will and chosen who she wanted to receive her property, all that property would have to pass through probate before the new owners could take possession.

Question 3: What if she wanted to avoid probate? Could she have done anything?

Yes. Avoiding probate is not very difficult as long as you create an estate plan beforehand. Ms. Winehouse represents a large majority of Americans, especially younger Americans, who do not have any type of estate plan whatsoever. Because of this, she had effectively no choice in how her property passed and that her estate would be public information because it would have to go through probate.

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

In late March, the Supreme Court finished hearing oral arguments on the case challenging the Affordable Care Act, the health care reform law passed early in the Obama administration. Though much of the media attention has focused on whether the so-called “individual mandate” is constitutional, the Medicaid expansion provisions, and how the Court rules on it, may turn out to be the key legal legacy of this case.

Under the Affordable Care Act, Medicaid coverage will extend to Americans based not just on their condition, but on whether an individual meets specific poverty criteria. This expansion will bring Medicaid coverage to millions more Americans than had been previously covered under the program. Medicaid is a partially federally funded program that states can voluntarily enter into to receive federal funding. Part of the argument against the healthcare legislation is that by forcing the new standards the federal government is coercing states into participating.

If the Supreme Court agrees with the coercion argument, this may jeopardize other federal programs that use a similar voluntary participation method. For example, highway funding programs, educational funds, child welfare programs and other federally assisted or created projects may be similarly affected. Though no lower court has ruled that the Medicaid expansion is coercive, many people saw it as surprising that the Supreme Court decided to hear the issue at all, which may indicate the court’s willingness to rule the law coercive.

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

While Rosa Parks remains an iconic symbol of the civil rights movement of the 50s and 60s, her legacy remains in legal limbo as representatives of her estate and some of her family members continue to battle over her possessions in a Michigan probate court. However, news comes from the probate court that the estate battle may finally be coming to a close.

After her death in 2005, Rosa Parks left behind an estate that had become very valuable largely because of her role in the civil rights movement. Her intellectual property and personal memorabilia was itself estimated to be worth anywhere from between $8 million and $10 million. Since her death, 15 of her nieces and nephews, as well as the nonprofit organization she founded, have been battling over who owns the memorabilia and who has rights to her intellectual property.

The battle over the property culminated in a Michigan Supreme Court ruling last December, wherein the court ordered that the memorabilia should be returned toThe Rosa and Raymond Parks Institute for Self Development, a nonprofit organization Ms. Parks had established. Previously, a Michigan appeals court had ruled that the 15 nieces and nephews have the right to own the property because they were the legal heirs of the Parks estate.

The Michigan probate court judge presiding over the case has stated that he will issue an order transferring the property from the nieces and nephews to the Institute. The order will also dictate that, in accordance with the Supreme Court decision, any proceeds of the sale of the memorabilia will be returned to the Institute, which will receive 80%, as well as to the nieces and nephews, which will receive the remaining 20%.

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

Under the terms of the Patient Protection and Affordable Care Act, or PPACA, the number of people eligible to receive medical care under the Medicaid program is set to expand in less than two years. The PPACA contains provisions that will allow 16 million more Americans to be covered under the Medicaid safety net.

The law states that starting in January of 2014, anyone who has a household income of up to 133% of the federal poverty level can receive Medicaid whether the person is employed or not. This means that anyone earning an individual income of about $15,000 will be eligible for Medicaid, while those with a family of four earning about $30,000 will also be eligible.

However, it is not entirely clear that the law will take effect as intended. Currently, the Supreme Court is hearing oral arguments about challenges to the constitutionality of the PPACA, also known as the Affordable Care Act. 26 states are challenging the law, and the court is expected to issue its ruling by June or July of 2012.

Since the law was enacted, five states have decided to expand their Medicaid program coverage early. California, Connecticut, Minnesota, New Jersey and Washington state, along with the District of Columbia, have already adopted the expanded Medicaid coverage provisions. Illinois is also considering an early expansion.

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

Trap 1: The Reverse Pension Plan

Though they have faded in popularity over the past several years, reverse pension plans are a notorious scam and are always a bad idea. These plans come in a variety of forms, but typically try to convince you to pay a very small upfront fee, usually around $50, for a potential benefit of about $50,000 later on. If anyone comes to you offering a reverse pension plan and tells you how you can benefit from it, you should immediately walk away.

Trap 2: Carrying Credit Card Debt

This financial pitfall is so dangerous because it is so easy to fall into. When you are retired and no longer generating regular income, credit card debt that balloons out of control can quickly become a serious problem. To avoid getting killed on interest fees and credit card payments, you should always pay off the balance of each card you have at the end of the month. If you are unsure if you can pay off the balance, don’t use your cards at all. If you know you will carry a balance in advance, consider a card with a low or zero interest introductory rate, but always make sure you pay off the balance before that rate expires.

Trap 3: Long-Term Care Insurance

The chances that you will need long-term care of some kind are about one in two, while the chances that your house will be destroyed in a fire is about one in 1200. For this reason alone, long-term care insurance can be a great benefit and protect your assets from the associated bills required with long-term health care. However, if you don’t have a lot of assets, long-term care insurance may not be a good idea, and you should speak to a financial advisor to analyze your individual situation.

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

The phenomena of “waiters” is something estate planning attorneys are seeing with more and more frequency. A “waiter” is typically a baby boomer who is relying on receiving a substantial inheritance from his or her depression era parents when they die. For many waiters, the prospect of receiving an inheritance is becoming increasingly less likely as numerous demographic factors are complicating the issue.

Longevity

For many baby boomers and their parents, the increase in lifespan that continues to lengthen as medical technology advances is posing a significant risk to relying on an inheritance. Many inheritances are becoming depleted by health care costs as parents age and need increasingly costly medical treatments.

Complicated Family Relationships

With increased life spans and an aging population, comes the greater chance that family relationships are complicated by divorces, remarriages, and blended families. The question of inheritance no longer involves only parents and children or grandchildren, but also children from a previous marriage, current stepchildren, former stepchildren, former spouses and other relationships.

Economic Downturn

Many baby boomers were hit hard by the economic downturn of the late 2000′s. Along with the decreased value of real estate, many people lost their job and saw their retirement savings dwindled to nearly nothing. For those relying on receiving an inheritance, the pressure they feel to receive wealth from their parent’s estate is only heightening, while at the same time that very inheritance is becoming smaller and smaller.

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

When Whitney Houston died last month at the age of 49, she left behind a last Will and testament that dictated that her entire estate would be inherited by her only daughter, Bobbi Kristina Brown, age 19. While the details of Ms. Houston’s Will are quite common and do not appear to contain any strange or potentially problem causing terms, we can look at her Will as an example of what you can do when creating your own. Here are three issues you may wish to consider when creating your own last Will and testament.

Issue 1: Your Gifts. Ms. Houston chose to give her entire estate to her daughter. Though she had remaining family members and a former husband, she is entirely within her rights to choose anyone she wishes to receive her estate. She was under no obligation to leave anything to her other family members, former spouse, or anyone else.

Issue 2: Executors and Trustees. Though she left her entire estate to her daughter, Ms. Houston determined that her daughter would not receive the entire estate until she becomes older. Until that time, Ms. Houston’s will directs that the estate property will be managed by a trust. The person running that trust, known as a trustee, was also named in the Will.

Issue 3: Changes. Ms. Houston created her first Will in 1993, but created amendments in 2000 and 2004. These amendments are called codicils, and are documents that change the terms of the original Will. When you create a codicil, you must ensure the amendment complies with the laws of your state, though you can change any terms you like.

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

If you have an estate that will allow you to leave substantial amount of inheritance to your children or other family members, you may want to think twice before you decide to give the entire amount to them. Those who inherit large sums of money often face challenges that are rarely spoken about, yet no less difficult. Here are a few reasons why a sudden large inheritance can leave your children unhappy and unfulfilled.

Concern 1. Bankruptcy.

It’s estimated that more than 70% of NBA players are bankrupt within five years of retirement. These players can earn tens, if not hundreds, of millions of dollars, yet still they are left in financial dire straits. The fact is, that if you are not prepared to deal with the financial realities of having a lot of money, that money can go away almost as quickly as you receive it.

Concern 2. Isolation.

Once you inherit wealth, your role in society and the way society views you becomes almost instantaneously changed. Many people will approach you only in an attempt to obtain some of your money, whether honestly or not. This can often turn heirs into guarded, isolated, and untrusting people.

Concern 3. Happiness.

Scientists who have studied happiness have determined that while poverty is definitely more likely to cause unhappiness, wealth is no more likely to make someone happy. To truly become happy, you must have enough money to meet some basic needs, yet you must also be able to set goals and achieve them. Those who inherit too much face few challenges, and a large inheritance can often lead to a lifetime of unhappiness.

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

Art collections can prove to be a difficult piece of your estate plan, especially if you’ve acquired a collection that has appreciated significantly. For some people with significant collections, their art can make up a large portion of the value of their estates, with the art continuing to increase in value even as other assets stagnate. If you have an art collection of significant value, there are several issues you need to be aware of as you develop your estate plan.

Issue 1: Estate taxes and heir interest. When it comes to art collections, the passion the parent has for the artwork may not be shared by the children who stand to inherit it. In some situations, a parent may want to leave a child a high value work though the child may not want it, or be afraid that the value of the work will require them to sell it to cover the estate taxes.

Issue 2: Collection sizes. For collectors with large collections, the logistical problems involved in passing them along can be prohibitive. If you have a collection that requires a large amount of space, storage facilities, and significant insurance to protect it, the practical concerns of leaving it to a family member may make it impractical to do so.

Issue 3: Preventing conflicts. On the flip-side of inheritor ambivalence is when you have children who are all interested in keeping the collection or even just a single piece. In order to prevent conflicts from arising and damaging family relationships, you’ll need to carefully plan ahead to ensure that each child or family member feels they have received a meaningful gift.

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

For many people, the idea of leaving a beloved charity or nonprofit organization a gift as part of your estate plan is essential. If you want to do this, it is important that you and your estate planning attorney sit down and discuss not only how much you wish to give, but also the charity to whom you wish to leave your gift. Here’s a simple process you can go through to help you identify and choose a good charity.

Step 1: Make a list.

Start your charitable donation search by creating a list of causes or organizations that are close to you and the issues you feel strongly about. You should not feel obligated to donate to one group or another simply because you have a history with them or because you feel as if it is expected of you. In the end, your charitable donation should be something you feel strongly about and one that you will be proud of making.

Step 2: Research the charity.

After identifying the charities or causes you feel strongly about, you should investigate each charity and determine if it is reputable. In general, a good rule of thumb is to make sure that the charity uses at least 60 percent of its yearly revenue in support of its cause, and not as expenses, overhead or for other purposes.

Step 3: Determine the best method.

While you can always leave property to a charity by making a will, there are other methods that can benefit you and your estate, as well as the charity, even more. For example, you may be able to create a trust that can dictate how your funds are used long after you’ve died. You may also be able to give gifts while you are still alive so you can reduce estate taxes and have an immediate impact.

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