It’s been almost four years since I last blogged. In that time, I went from a mom of two, to a mom of four. I went from a co-owner of a law office with three locations, to an associate with a long-established firm where I can focus on my passion of fighting death in my own way through addressing and, when I work with people ahead of time, minimizing the legal chaos death causes.
My obsession remains the same. Sharing information in normal language, so that we can get over the discomfort with death and law. And we can get on with getting our affairs organized, for our peace of mind and as our final gift to those closest to us.
Find the reboot at An Organized (after)Life.
Wednesday, April 18, 2018
Tuesday, December 8, 2015
ARCHIVES
An Organized (after)Life is a blog I started as a new attorney, navigating through the ins-and-outs of what professionals call "estate planning", but what really is just the process of organizing your affairs so that your assets go to the people you want, in the easiest way possible. Look around at the over 6 years worth of information to give you some background in the organization process.
Wednesday, May 27, 2015
Throwback Thursday: The Power of Joint Tenancy
FILE UNDER: THROWBACK THURSDAY
This was originally posted in July 29, 2009
One of the many vehicles to transfer real property, or real estate, outside of probate is through owning the property in joint tenancy.
There are two forms of real estate ownership in Minnesota when there are multiple owners. The first is tenants in common. In this form of ownership, the parties each own a distinct percentage of the total ownership in the property. For example, if a husband and wife own property, husband owns 50% of the total property and wife owns 50% of the total property. In this form, if one of the parties dies, their distinct percentage transfers through probate.
The other main form of ownership in Minnesota is joint tenancy. In this form, the parties have an undivided interest of the total ownership of the property. In this case, both husband and wife each own 100% of the total property. This may seem like a minor distinction, but it has a big effect. Upon the death of one party, the other party automatically owns the entire property without the probate process.
In order for the property to be owned in joint tenancy, the deed must specifically state that the property is owned as such. For example, "Property X is granted by Mr. X. to Husband and Wife, as joint tenants." If the deed does not specifically state that it is in joint tenancy, then it is owned as tenants in common.
If you own property with another person, and both of you intent that the other should automatically receive your interest without the probate process, review your deed. If the deed does not state "joint tenancy", contact a licensed attorney to execute and record a deed that does.
Update: I've gotten in the habit of asking couples to bring in a copy of their real estate deeds. In most cases, they want their property to automatically go to the survivor. Double checking their deeds now, can help prevent what would be an unnecessary probate. Keep in mind however, that joint tenancy isn't for everyone. It essentially means "survivor wins" and usually isn't a good fit for ownership between siblings.
This was originally posted in July 29, 2009
One of the many vehicles to transfer real property, or real estate, outside of probate is through owning the property in joint tenancy.
There are two forms of real estate ownership in Minnesota when there are multiple owners. The first is tenants in common. In this form of ownership, the parties each own a distinct percentage of the total ownership in the property. For example, if a husband and wife own property, husband owns 50% of the total property and wife owns 50% of the total property. In this form, if one of the parties dies, their distinct percentage transfers through probate.
The other main form of ownership in Minnesota is joint tenancy. In this form, the parties have an undivided interest of the total ownership of the property. In this case, both husband and wife each own 100% of the total property. This may seem like a minor distinction, but it has a big effect. Upon the death of one party, the other party automatically owns the entire property without the probate process.
In order for the property to be owned in joint tenancy, the deed must specifically state that the property is owned as such. For example, "Property X is granted by Mr. X. to Husband and Wife, as joint tenants." If the deed does not specifically state that it is in joint tenancy, then it is owned as tenants in common.
If you own property with another person, and both of you intent that the other should automatically receive your interest without the probate process, review your deed. If the deed does not state "joint tenancy", contact a licensed attorney to execute and record a deed that does.
Update: I've gotten in the habit of asking couples to bring in a copy of their real estate deeds. In most cases, they want their property to automatically go to the survivor. Double checking their deeds now, can help prevent what would be an unnecessary probate. Keep in mind however, that joint tenancy isn't for everyone. It essentially means "survivor wins" and usually isn't a good fit for ownership between siblings.
Friday, February 27, 2015
Myth Buster: Not Everyone Needs a Trust (but for some people they can solve a lot).
FILE UNDER: QUICK TIP
Another month in 2015. Another myth I'm going to bust.
A common myth I run into is that everyone should have a living trust. A related myth is that having a trust (but not funneling all assets into that trust either during or lifetime or setting them up to distribute to the trust upon your death) will guarantee that you will not have a probate.
First, let me lay out a golden rule of organizing your estate. If you are told by a professional "everyone needs [x]". Run from them. Everyone's assets, tax liability and family dynamic are different. Work with a professional who will take your particular needs and balance them against the cost of creating and managing particular types of planning tools. [Rant over].
A trust can prevent probate, but doesn't necessarily guarantee that a probate won't be needed. What matters is what assets are your probate assets. For example, if you set up a trust, but don't have your real estate assets retitled in a way that gets those assets out of your probate estate, those assets alone will trigger a probate. Even if you and the professionals you work with get all of your assets into or set up to automatically go into your trust, if you don't do the same with new assets, you might have a probate. It's a great tool to minimize the likelihood of a probate process, but there's a lot more to avoiding probate than simply creating a trust.
In Minnesota, a trust won't always be cheaper or easier to deal with than a probate. In some states, probates mean going in front of a judge, which costs the estate both in time and money. they may have other costly requirements that apply to most or all estates. If you live in one of those states, the cost of creating and managing a trust may look pretty good compared to probate. In Minnesota, most estates go through an informal process that can cost less than creating and managing a trust. That's something to keep in mind when you hear "everyone needs a trust", particularly if they aren't from Minnesota.
There can be some great uses for a trust. Maybe you don't want your distributions to be in a public probate court file. Maybe you know your kids will have costly probate court fights. Maybe you want the simplicity of giving one person control of your real estate while a group of people receive the benefits. Maybe your estate is large enough that both you and your spouse need both of your estate tax exemptions to prevent estate taxes. For people in those situations, the costs of creating and managing a trust can absolutely be worth it.
Not everyone needs a trust. However, for people who want to keep their distributions confidential, expect an heir to contest their gift, need to ensure particular management of assets over a long period of time or need an option to use both spouses' estate tax exemptions, trusts can be a valuable tool. Myth (sort of) busted.
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| Thanks Gwendal Uguen, for Creative Commons use of your pic! https://flic.kr/p/8NmBrd |
A common myth I run into is that everyone should have a living trust. A related myth is that having a trust (but not funneling all assets into that trust either during or lifetime or setting them up to distribute to the trust upon your death) will guarantee that you will not have a probate.
First, let me lay out a golden rule of organizing your estate. If you are told by a professional "everyone needs [x]". Run from them. Everyone's assets, tax liability and family dynamic are different. Work with a professional who will take your particular needs and balance them against the cost of creating and managing particular types of planning tools. [Rant over].
A trust can prevent probate, but doesn't necessarily guarantee that a probate won't be needed. What matters is what assets are your probate assets. For example, if you set up a trust, but don't have your real estate assets retitled in a way that gets those assets out of your probate estate, those assets alone will trigger a probate. Even if you and the professionals you work with get all of your assets into or set up to automatically go into your trust, if you don't do the same with new assets, you might have a probate. It's a great tool to minimize the likelihood of a probate process, but there's a lot more to avoiding probate than simply creating a trust.
In Minnesota, a trust won't always be cheaper or easier to deal with than a probate. In some states, probates mean going in front of a judge, which costs the estate both in time and money. they may have other costly requirements that apply to most or all estates. If you live in one of those states, the cost of creating and managing a trust may look pretty good compared to probate. In Minnesota, most estates go through an informal process that can cost less than creating and managing a trust. That's something to keep in mind when you hear "everyone needs a trust", particularly if they aren't from Minnesota.
There can be some great uses for a trust. Maybe you don't want your distributions to be in a public probate court file. Maybe you know your kids will have costly probate court fights. Maybe you want the simplicity of giving one person control of your real estate while a group of people receive the benefits. Maybe your estate is large enough that both you and your spouse need both of your estate tax exemptions to prevent estate taxes. For people in those situations, the costs of creating and managing a trust can absolutely be worth it.
Not everyone needs a trust. However, for people who want to keep their distributions confidential, expect an heir to contest their gift, need to ensure particular management of assets over a long period of time or need an option to use both spouses' estate tax exemptions, trusts can be a valuable tool. Myth (sort of) busted.
Wednesday, January 28, 2015
Myth Buster: Wills Don't Solve Everything.
FILE UNDER: QUICK TIP
So, I had all these great plans to post all sorts of interesting and enlightening things at least on a weekly basis.... so much for plans. Whew, let's just get back on that monthly horse shall we? If I'm feeling extra special, maybe I'll get in a few more.
Anyway, I thought I'd start out the new year by trying something new. Every so often, I'll take a commonly held myth, and bust it. For the first such post, I'll bust this myth: Wills solve everything.
Every once and awhile, I'll get a variation on that myth such as, "But, he died without a will! What will we do?" Or, "The bank won't let me take out the account, because she didn't have a will!" Or, "I won't have a probate, I have a will. I'm good."
Wills are good (obviously, or I'd be ethically in trouble for doing them). They have a few particular purposes; purposes that can be super important for a lot of people. They can appoint guardians for your children, allocate your probate assets to the exact people you want and have the exact people you want control and distribute your estate. Some of the things they won't do is effect how non-probate assets, like life insurance that lists individual recipients and other things that transfer without court action, are distributed. It also won't in and of itself prove authority for someone to act on your estate's behalf.
If you don't have a will, but have probate assets to distribute, state law will fills in who has the authority to manage your estate and who gets it. These estates are called "intestate", Latin for "no will".
The will doesn't prevent a probate process. It tells the court what you want to have happen if a probate action is needed. Myth busted.
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| Thanks Gwendal Uguen, for Creative Commons use of your pic! https://flic.kr/p/8NmBrd |
Anyway, I thought I'd start out the new year by trying something new. Every so often, I'll take a commonly held myth, and bust it. For the first such post, I'll bust this myth: Wills solve everything.
Every once and awhile, I'll get a variation on that myth such as, "But, he died without a will! What will we do?" Or, "The bank won't let me take out the account, because she didn't have a will!" Or, "I won't have a probate, I have a will. I'm good."
Wills are good (obviously, or I'd be ethically in trouble for doing them). They have a few particular purposes; purposes that can be super important for a lot of people. They can appoint guardians for your children, allocate your probate assets to the exact people you want and have the exact people you want control and distribute your estate. Some of the things they won't do is effect how non-probate assets, like life insurance that lists individual recipients and other things that transfer without court action, are distributed. It also won't in and of itself prove authority for someone to act on your estate's behalf.
If you don't have a will, but have probate assets to distribute, state law will fills in who has the authority to manage your estate and who gets it. These estates are called "intestate", Latin for "no will".
The will doesn't prevent a probate process. It tells the court what you want to have happen if a probate action is needed. Myth busted.
Wednesday, October 15, 2014
There Still Hasn't Been a Will Reading. What Gives!
So you have a loved one who died and there still hasn't been a will reading. In Minnesota, our probate code has no chapter, no rule about will readings. Sitting family members down to hear final wishes isn't required or even governed by laws, in the state of Minnesota.
So how do you know what's in a will, or even if there is one? Wills govern what happens and who controls property that doesn't automatically transfer to other people like life insurance or jointly owned property would. You'll need a probate process to transfer these "stuck" assets. That's where a will comes in. The will says where things should go and who manages those assets.
In Minnesota, next of kin are required to receive notice of probate proceedings if the probate asset includes real estate or is larger than $50,000.00. The next of kin can then find out if a will exists and what it says.
Will readings. They make for dramatic scenes in movies and TV. But, they're just not required or even common in the state of Minnesota.
(photo credit: Thanks hikingartist.com for allowing creative commons 2.0 use of your pic!)
Friday, October 3, 2014
10 Things My Husband Learned From His Father's Death (so far)
My much beloved father-in-law died suddenly and unexpected a few weeks ago. As I shared on my personal facebook page, I was a daddy's girl who lost her gregarious father at 14. At 21, I met my father-in-law who, if I couldn't have my dad, well he was the next best thing. The separation and shock, like every loss of a loved one, is indescribably tough.
My husband put this together a few days ago and all of these non-legal lessons are just as important as all the stuff we lawyers learn in our wills and trusts classes. Here's a republication of what he wrote.
As I'm processing my father's way too early passing, I thought I'd share some of the lessons I learned. If these are useful to anyone, I can at least find some additional purpose in all this.
1. Know your final wishes. Know the final wishes of your loved ones. I am so relieved my mom and I knew what my dad had in mind for his funeral. Nothing was written down, but just weeks before he died, my parents were on their way back from my uncle's funeral and happened to discuss their own ideas. If it wasn't for that conversation, my mom and I would have had a major headache on our hands last week.
2. Don't put off conversations about death until you're old or your loved ones are old. My dad was ripped out of our midst at 66. No one saw it coming, including him. My goal is for Jen and I to have things discussed by the end of the year. This includes simple things, such as "Would you be able to handle finances after I'm gone?", "Would you know all our passwords?", "Would you know where to find our will?", "Would you know what home/car maintenance is coming up?", "Would you know how to get a hold of key family members and friends?", "When is the kids' next check-up?", etc. Simple things that could turn into big problems, if you have to start from scratch.
3. Don't be strong for anyone. The advice to be strong after your dad dies is not always fitting. My dad died. I don't want to be strong. I want to cry and let out my emotions, too. Sure, my mom and I are leaning on each other for strength, but we each grieve differently and should each be able to not have to worry about how the other expresses it. Truth be told, it probably won't really hit either one of us until I return to the U.S., which will be the real beginning of the new normal.
4. Lean on your support system. My mom and I are fortunate to have a massive support system in place, thanks to family and a huge circle of friends. Many are offering to help in different ways... to listen, to take care of certain paperwork, to help haul stuff, to cook meals. Take advantage of it and don't be shy to ask for help. It also lets the person offering the help grieve in their own way.
5. Take pictures of your loved ones. My mom and I had to pick a picture of my dad to be put up next to the urn at the funeral service. Thanks to our photo-happy family, this was easy to do, but from now on I'll always have a pic or two in mind in advance. Do you?
6. Let people know where you are. In my dad's case, my mom and I knew where he was. He was hiking on a marked trail and talked to my mom via cell phone just an hour before he was found. But he was alone. It's questionable if anything could have been done if anyone had been there. Even though knowing where my dad was and being able to reach him likely didn't make a difference, it could mean the difference between life and death for others.
7. Cherish every visit, every conversation. I last saw my dad when we came to Germany in May. I last talked to him the day before he died. I now regret that I was kind of short with him and suggested we chat more the next day, as Jen, the kids and I were about to go on a bike trip in Lanesboro. That next conversation never happened.
8. Show compassion. My dad was a master at this. He was able to build relationships with anybody. He put himself last and had a hard time saying no. I'm proud to have been carrying on that legacy already. But most importantly, this compassion will come back at you manifold in the situation my mom and are facing now. My dad cared about everybody, and now everybody is caring about us as a way of saying thank you.
9. Don't try to find all answers. Learn to live with the questions. My mom and I have been struggling with the big WHY. We don't know why my dad died or why it happened so early and suddenly. Even when we find out the official cause of death, we will likely never know why things played out the way they did. It's extremely hard to accept, but we know we have to. We try to focus on the happy memories and tuck away the what if's.
10. Grieve how you see fit, not how society might expect. My mom and I have talked a lot about how people might expect how we should grieve. Should we wear black? Can we watch TV? Can we laugh? Can we get groceries like normal? Should we act like nothing happened? We quickly realized that unless we shed ourselves of any societal pressures, the grieving process will only get more difficult. If we feel like laughing, we'll laugh. If we feel like watching a comedy show, we will. The point is only we know how to best process this horrible turn in our life. Advice from anybody should be taken with a grain of salt.
Friday, September 26, 2014
Is There a Tax on All Those Jeter Gifts?
News outlets are buzzing a bit about the gift tax consequences for all those gifts given to Derek Jeter during his farewell tour.
I'm a bit disappointed the articles didn't talk about those infamous gift baskets.
(H/T U.S. Chamber of Commerce)
I'm a bit disappointed the articles didn't talk about those infamous gift baskets.
(H/T U.S. Chamber of Commerce)
Friday, September 12, 2014
To Do, Hug Your Family
Last Friday, I was drafting a post to publish for Monday. On Sunday, we unexpectedly lost a much beloved family member. So, in light of that, the number one thing you should do to plan your estate? Hug your loved ones. Then talk to professionals to plan.
Monday, August 25, 2014
The Cisco Shuffle. Or, Why I Called the Secretary of State
FILE UNDER: QUICK TIP
Why yes, I was grooving out to this hold music. So why is an estate planner/probater on hold with the Secretary of State's office? Well, it all started when I needed to do a UCC search. For the lawyers out there, you might be wondering why I'd be doing that since I don't do debtor/creditor law (for the non-lawyers out there, I don't help/fight the repo man).
However, there's a good reason why I'd need to be on there when it comes to dealing with an estate. It's pretty common for an estate to auction off the deceased's personal property. Running a UCC search for liens (which are like mortgages, but instead of a bank securing their loan through real estate, a creditor secures its loans through personal property), can help you, the auctioneer and the personal representative know that the items sold are clear of liens, which can crop up especially if the deceased owned a business.
Also, the Secretary of State's office was super helpful and quick with the answer. Which was great (not great if you have a strange addition to the Cisco Shuffle, but I don't).
(photo credit: https://www.flickr.com/photos/networkosaka/3031707049/in/photolist-4bD4Jf-5BUhTc-5DKSZ9-5Do3Q7-5DnJbQ-561Mn9-4tVuoJ-eToYdm-5AmZS-9AuJXJ-5ZGES-8gkV-bzFfHj-bycSWH-6UYUKx-6zP9yt-6Vj6tu-5MYteW-55WAtz-AM7EY-b5q3SH-6WKLZN-dCv4Ti-7vbeN6-dCv5ik-5H2Xxk-5VQ2c9-67i6Up-8emwqX-6oYvX2-86atHS-6aA7rh-6vJLxT-aBHgfY-eToVJj-fHXwvE-8vAvNd-eP2XAt-cUgzsE-5svbGT-6fSRTP-aR8Fve-iecrw-dCAuES-6fSRFB-cUgAcQ-8T3zcQ-eg5Jc3-aB3A3G-6oYvJH
Thanks _Untitled-1 for allowing creative commons 2.0 use of your pic!)
However, there's a good reason why I'd need to be on there when it comes to dealing with an estate. It's pretty common for an estate to auction off the deceased's personal property. Running a UCC search for liens (which are like mortgages, but instead of a bank securing their loan through real estate, a creditor secures its loans through personal property), can help you, the auctioneer and the personal representative know that the items sold are clear of liens, which can crop up especially if the deceased owned a business.
Also, the Secretary of State's office was super helpful and quick with the answer. Which was great (not great if you have a strange addition to the Cisco Shuffle, but I don't).
(photo credit: https://www.flickr.com/photos/networkosaka/3031707049/in/photolist-4bD4Jf-5BUhTc-5DKSZ9-5Do3Q7-5DnJbQ-561Mn9-4tVuoJ-eToYdm-5AmZS-9AuJXJ-5ZGES-8gkV-bzFfHj-bycSWH-6UYUKx-6zP9yt-6Vj6tu-5MYteW-55WAtz-AM7EY-b5q3SH-6WKLZN-dCv4Ti-7vbeN6-dCv5ik-5H2Xxk-5VQ2c9-67i6Up-8emwqX-6oYvX2-86atHS-6aA7rh-6vJLxT-aBHgfY-eToVJj-fHXwvE-8vAvNd-eP2XAt-cUgzsE-5svbGT-6fSRTP-aR8Fve-iecrw-dCAuES-6fSRFB-cUgAcQ-8T3zcQ-eg5Jc3-aB3A3G-6oYvJH
Thanks _Untitled-1 for allowing creative commons 2.0 use of your pic!)
Monday, August 18, 2014
What's in a Name?
FILE UNDER: OFF TOPIC
After over six years of this blog, why the new name and redesign? When I first started this job, I was a brand new baby attorney working as a law clerk (attorney for judges... that's what my judges called us, so I'll happily use that definition), hoping to establish a probate practice once my clerk year was done. The blog was partly an excuse for me to dig into probate and estate law. Anyone who listens to me for any amount of time when it comes to "death law", knows I geek out about it and should console themselves with the notion that I have an outlet to get (most) of the geeky-ness out. Quite honestly, it's also a way to market myself. Even more honestly, at the time I started the blog I wanted to prove myself as a real-honest-to-goodness attorney. Hence the run of the mill design and even more run of the mill title and was stuck in the rut ever since. My stodginess was born by a fear of not being taken seriously.
Now that I have an established probate practice (heck, I've taught other estate planners how to plan estates that span the globe), I feel less like proving myself as attorney. More importantly, I've learned that "estate planning" is more than dropping some money to have an attorney create a will or a trust and thinking your affairs are in order. Estate planning isn't just a legal thing and just like managing your junk drawer, it isn't just a one time thing.
Hence the name: An Organized (after)Life. Estate planning is organizing (and continuing to organize) your affairs so that your loved ones can spend their time working through losing you and spend as little time as possible dealing with seeing a lawyer, going to court, organizing your documents, dealing with your creditors, planning your funeral, trying to see eye-to-eye with each other, etc. While not as fun to look at as an organized closet or color coded folders in a drawer (not only am I a law geek, but I think looking at an organized closet is fun!), it'll be one of the best gifts you can give to your loved ones. I hope my posts will get you to think about how your stuff should be organized. That your "after", after meeting with an attorney, pre-planning your funeral, working with a financial planner, works better than what it would have had you been hit by a bus "before" and that doing this doesn't become an "after"thought that gets put on the back burner until it doesn't get done at all. For me, organization takes folders, tags, post-its and color coordination, hence the non-esquire-esque/non-fancy-schmancy design.
I also have to admit that I've been influenced by other blogs. For a time I was the resident small town contributor to Lawyerist, a national law blog, where I was challenged to make posts authentic and interesting. I'm also taking inspiration from some unlikely sources for a "blawgger", home improvement blogs like, Young House Love, Manhatten Nest and It's Great to Be Home. Although these have been some go-to sites for lunch break perusing for a while now, it wasn't until recently that it occurred to me that the bloggers are personable, funny, honest... and still authoritative (or at least seem trustworthy about what they know). While wills and insurance and funeral plans may never be as exciting to look at as home renovations and design (honestly, I could stare at those design choices forever), if I can be as helpful (which I hope I have been) and a fraction as interesting (which I have assuredly not been) maybe I can steer more people to not let a fear of jinxing getting hit by a bus get in the way of taking control of their estate and (effectively) use professionals like attorneys, financial planners, accountants, etc. to properly organize their affairs. Thank you readers, for having enough interest to have been reading Minnesota Estate Planning and Probate when it was stodgy (click the link to see it in all its stodgy glory, but look in the archives on this blog for its content), and I hope you find the changes to be a fresh take on a boring (for many, but totally-not-for-me) topic.
(photo credit: https://www.flickr.com/photos/mlebemle/3511330328/in/photolist-6mhub5-mQvnC-deSc8r-6Nkkq9-9vih9s-6atKnF-bnxxi3-22TEKo-gthiTp-66qVuM-881VoF-35ofCb-8bhsb4-6axVf9-9gE7jc-am4new-6atLS2-8bhrX8-6axTqb-68e5F9-rfpdb-4y5u3c-4a9Ghu-xq1Kn-ak4YeC-5qCStD-747jS9-dNMDQb-djU3ad-ak2bTZ-dNMDNJ-4Ts5f8-5NZN1r-anqcbk-dNMDKu-4sUww6-emDrqB-4WiZj-4FkDGp-6LgmJ2-5RYruC-689jpt-4ExMSU-3dGYGL-6RxFG5-FXw2B-98ssPo-o44Kx-ant1UG-68dgoJ
Thanks Emily Rose for allowing creative commons 2.0 use of your pic!)
After over six years of this blog, why the new name and redesign? When I first started this job, I was a brand new baby attorney working as a law clerk (attorney for judges... that's what my judges called us, so I'll happily use that definition), hoping to establish a probate practice once my clerk year was done. The blog was partly an excuse for me to dig into probate and estate law. Anyone who listens to me for any amount of time when it comes to "death law", knows I geek out about it and should console themselves with the notion that I have an outlet to get (most) of the geeky-ness out. Quite honestly, it's also a way to market myself. Even more honestly, at the time I started the blog I wanted to prove myself as a real-honest-to-goodness attorney. Hence the run of the mill design and even more run of the mill title and was stuck in the rut ever since. My stodginess was born by a fear of not being taken seriously.Now that I have an established probate practice (heck, I've taught other estate planners how to plan estates that span the globe), I feel less like proving myself as attorney. More importantly, I've learned that "estate planning" is more than dropping some money to have an attorney create a will or a trust and thinking your affairs are in order. Estate planning isn't just a legal thing and just like managing your junk drawer, it isn't just a one time thing.
Hence the name: An Organized (after)Life. Estate planning is organizing (and continuing to organize) your affairs so that your loved ones can spend their time working through losing you and spend as little time as possible dealing with seeing a lawyer, going to court, organizing your documents, dealing with your creditors, planning your funeral, trying to see eye-to-eye with each other, etc. While not as fun to look at as an organized closet or color coded folders in a drawer (not only am I a law geek, but I think looking at an organized closet is fun!), it'll be one of the best gifts you can give to your loved ones. I hope my posts will get you to think about how your stuff should be organized. That your "after", after meeting with an attorney, pre-planning your funeral, working with a financial planner, works better than what it would have had you been hit by a bus "before" and that doing this doesn't become an "after"thought that gets put on the back burner until it doesn't get done at all. For me, organization takes folders, tags, post-its and color coordination, hence the non-esquire-esque/non-fancy-schmancy design.
I also have to admit that I've been influenced by other blogs. For a time I was the resident small town contributor to Lawyerist, a national law blog, where I was challenged to make posts authentic and interesting. I'm also taking inspiration from some unlikely sources for a "blawgger", home improvement blogs like, Young House Love, Manhatten Nest and It's Great to Be Home. Although these have been some go-to sites for lunch break perusing for a while now, it wasn't until recently that it occurred to me that the bloggers are personable, funny, honest... and still authoritative (or at least seem trustworthy about what they know). While wills and insurance and funeral plans may never be as exciting to look at as home renovations and design (honestly, I could stare at those design choices forever), if I can be as helpful (which I hope I have been) and a fraction as interesting (which I have assuredly not been) maybe I can steer more people to not let a fear of jinxing getting hit by a bus get in the way of taking control of their estate and (effectively) use professionals like attorneys, financial planners, accountants, etc. to properly organize their affairs. Thank you readers, for having enough interest to have been reading Minnesota Estate Planning and Probate when it was stodgy (click the link to see it in all its stodgy glory, but look in the archives on this blog for its content), and I hope you find the changes to be a fresh take on a boring (for many, but totally-not-for-me) topic.
(photo credit: https://www.flickr.com/photos/mlebemle/3511330328/in/photolist-6mhub5-mQvnC-deSc8r-6Nkkq9-9vih9s-6atKnF-bnxxi3-22TEKo-gthiTp-66qVuM-881VoF-35ofCb-8bhsb4-6axVf9-9gE7jc-am4new-6atLS2-8bhrX8-6axTqb-68e5F9-rfpdb-4y5u3c-4a9Ghu-xq1Kn-ak4YeC-5qCStD-747jS9-dNMDQb-djU3ad-ak2bTZ-dNMDNJ-4Ts5f8-5NZN1r-anqcbk-dNMDKu-4sUww6-emDrqB-4WiZj-4FkDGp-6LgmJ2-5RYruC-689jpt-4ExMSU-3dGYGL-6RxFG5-FXw2B-98ssPo-o44Kx-ant1UG-68dgoJ
Thanks Emily Rose for allowing creative commons 2.0 use of your pic!)
Thursday, August 7, 2014
Paper It! Or, Why It Matters to Have Business Certificates
FILE UNDER: GOOD IDEA!
Many people set up business entities for a variety of reasons, whether it's managing an entity that provides goods a services, planning for estate tax, limiting liability, or all of the above. The first step in setting up a business is to meet with an attorney to make sure you're meeting all the formalities to get the most protection for both the entity and your personal affairs.
A common step that is written out of the creation of many entities is a share or membership certificate. Many people, including attorneys think certificates (think a fancy piece of paper that looks like something Mr. Moneybags would have in a safe) are really only for the Wall Street big boys and not the mom and pop shops. It may seem old fashioned, but having a certificate is an important step to minimize the need for probate.
Why? You can list a payable on death designation on the certificate itself that says who receives your share upon your death. This makes your interests in the business automatically transfer without the need for probate. If you have a business, let your estate planner know so you can make sure it's ready to be properly addressed at your death.
(photo credit: https://www.flickr.com/photos/mike_miley/8581598506/in/photostream/
Thanks Mike for allowing creative commons 2.0 use of your pic!)
Many people set up business entities for a variety of reasons, whether it's managing an entity that provides goods a services, planning for estate tax, limiting liability, or all of the above. The first step in setting up a business is to meet with an attorney to make sure you're meeting all the formalities to get the most protection for both the entity and your personal affairs. A common step that is written out of the creation of many entities is a share or membership certificate. Many people, including attorneys think certificates (think a fancy piece of paper that looks like something Mr. Moneybags would have in a safe) are really only for the Wall Street big boys and not the mom and pop shops. It may seem old fashioned, but having a certificate is an important step to minimize the need for probate.
Why? You can list a payable on death designation on the certificate itself that says who receives your share upon your death. This makes your interests in the business automatically transfer without the need for probate. If you have a business, let your estate planner know so you can make sure it's ready to be properly addressed at your death.
(photo credit: https://www.flickr.com/photos/mike_miley/8581598506/in/photostream/
Thanks Mike for allowing creative commons 2.0 use of your pic!)
Friday, August 1, 2014
Now Why Don't (s)He Write?
FILE UNDER: HOT OFF THE PRESS
If you're a child of both the 90's and South Dakota, as I am, you might get that reference to Dances with Wolves. Back in November, I announced a two-month hiatus from blogging due to the impending birth of heir #2. Nine months (and only one measly post) later, I'm ready to dive back in. Yeah, so much for two months. I plead "harried working mom". A child who took eight months to learn to sleep through the night, pretty significant office(s) expansion, chasing a three year old, small town mayor duties, a trip for a wedding and a house sale/purchase/move, all while ensuring my clients were well cared for, left little extra time for the blawg.
Now that things have settled down a bit and I've had (count 'em) twelve full nights of sleep, I'm back. Not only look for the monthly posts you're used to, but an increase in content and a redesign of the site. The plan is to take the blog from a run of the mill blawg that looks and reads like you're walking into an attorney office, to something that tells and shows how to think about estate planning more like what it actually is, making things as organized for those you leave behind as what you try to do your yourself in life. Also, be on the lookout for a new name to something a bit less yawn inducing than "Minnesota Estate Planning and Probate".
In the meantime, feel free to peruse the archives and excuse the mess. You might see the look of the site alter a bit, but consider it a preview of things to come.
(photo credit: https://www.flickr.com/photos/caninest/4394675343/in/photolist-7qaZS5-65PwDT-7ryEpH-7i2LvR-jfTBMN-foprA7-7GkRSx-9xmZGy-guTCT4-8en7Et-btiN8r-9LpfT6-9b1ZMk-boQpP7-ndZRQj-gdFM2g-iDoAFr-ekK5Nm-4CH5kB-3oR8R5-4139ZC-8BbMkS-mHEfTi-9gJ2QG-bBTjfn-e3bU93-m4kF3-621g8R-arnWtA-cwmVD5-4nzxPF-7A7J5s-8Ym3wj-9jtX49-7B1WVD-FDjZE-4RjTHV-mDWpgc-77cnQi-5b8z5F-dStXSe-FDkwH-jrfGhs-eWumMo-8oELuj-mCcrHi-4xoyok-9LijSB-7sTc2A-4xcnEw
Thanks Caninest for allowing creative commons 2.0 use of your pic!)
Now that things have settled down a bit and I've had (count 'em) twelve full nights of sleep, I'm back. Not only look for the monthly posts you're used to, but an increase in content and a redesign of the site. The plan is to take the blog from a run of the mill blawg that looks and reads like you're walking into an attorney office, to something that tells and shows how to think about estate planning more like what it actually is, making things as organized for those you leave behind as what you try to do your yourself in life. Also, be on the lookout for a new name to something a bit less yawn inducing than "Minnesota Estate Planning and Probate".
In the meantime, feel free to peruse the archives and excuse the mess. You might see the look of the site alter a bit, but consider it a preview of things to come.
(photo credit: https://www.flickr.com/photos/caninest/4394675343/in/photolist-7qaZS5-65PwDT-7ryEpH-7i2LvR-jfTBMN-foprA7-7GkRSx-9xmZGy-guTCT4-8en7Et-btiN8r-9LpfT6-9b1ZMk-boQpP7-ndZRQj-gdFM2g-iDoAFr-ekK5Nm-4CH5kB-3oR8R5-4139ZC-8BbMkS-mHEfTi-9gJ2QG-bBTjfn-e3bU93-m4kF3-621g8R-arnWtA-cwmVD5-4nzxPF-7A7J5s-8Ym3wj-9jtX49-7B1WVD-FDjZE-4RjTHV-mDWpgc-77cnQi-5b8z5F-dStXSe-FDkwH-jrfGhs-eWumMo-8oELuj-mCcrHi-4xoyok-9LijSB-7sTc2A-4xcnEw
Thanks Caninest for allowing creative commons 2.0 use of your pic!)
Friday, February 21, 2014
Do You Need a New Form Power of Attorney?
FILE UNDER: LAND OF 10,000 LAKES
As of January 1st, the Minnesota statutory short
form power of attorney changed. The changes are mainly to provide notice to
those acting on your behalf of their duty to act in your best interest and the
limitations on their power. It also informs the person signing the power of attorney, what powers they're giving and how to revoke it if something goes wrong.
Under the new statute, the old form is no longer valid as a
statutory form and should no longer be used to create a new document. However,
power of attorney documents using the old form and signed before January 1st
are still valid documents.
If you have questions on the powers you've granted under a signed power of attorney or want to create a power of attorney, you should meet with a licensed attorney.
(photo credit: https://www.flickr.com/photos/zigazou76/5824384001/in/photolist-nfLkbn-dBR11y-f9kca-9oG38B-7Fvooa-dMpGn-hvwd3i-9ogs9R-cTX54W-gdNa2N-SQx6r-7yK62B-hqrczY-7C3CtW-7j1VmX-ojmkXd-kuVxyi-9SFurP-2GBqw-5YQFk4-5VxR5U-ds9yrY-87zRMG-9KJPh8-dC3Put-D9mZE-gip4J1-gpb93-42EvS-4TLGoA-bxt93q-akEoyE-5NwfZK-91Pdid-gJb1L-rmF84-e6Y9VP-kLgaNz-LdjhQ-4j6M1P-3iZxCW-eBVBB6-e3ro1-4RCUKy-7Cftnk-ndwYcB-5tWVCR-4YJpu-bqWuLw-b4tMb2
Thanks Frederic for allowing creative commons 2.0 use of your pic!)
(photo credit: https://www.flickr.com/photos/zigazou76/5824384001/in/photolist-nfLkbn-dBR11y-f9kca-9oG38B-7Fvooa-dMpGn-hvwd3i-9ogs9R-cTX54W-gdNa2N-SQx6r-7yK62B-hqrczY-7C3CtW-7j1VmX-ojmkXd-kuVxyi-9SFurP-2GBqw-5YQFk4-5VxR5U-ds9yrY-87zRMG-9KJPh8-dC3Put-D9mZE-gip4J1-gpb93-42EvS-4TLGoA-bxt93q-akEoyE-5NwfZK-91Pdid-gJb1L-rmF84-e6Y9VP-kLgaNz-LdjhQ-4j6M1P-3iZxCW-eBVBB6-e3ro1-4RCUKy-7Cftnk-ndwYcB-5tWVCR-4YJpu-bqWuLw-b4tMb2
Thanks Frederic for allowing creative commons 2.0 use of your pic!)
Monday, December 9, 2013
Waiting for a new heir... okay, doesn't sound as cute as baby.
I'll be taking December and January off from blogging for maternity leave. See you in February!
Tuesday, November 12, 2013
KSTP Shows Importance of Planning
The Twin Cities ABC affiliate, KSTP did a great story on the importance of estate planning and communication between couples and generations, with help from Jody Cohen Press, a Twin Cities estate planner.
Please take a look: http://kstp.com/news/stories/S3215039.shtml?cat=1
Here's a top 10 to ask and to do list from KSTP and Ms. Cohen Press. http://kstp.com/article/stories/s3215402.shtml
As always, meet with a licensed attorney to help make sure your estate is in order and that those you leave behind are prepared.
Please take a look: http://kstp.com/news/stories/S3215039.shtml?cat=1
Here's a top 10 to ask and to do list from KSTP and Ms. Cohen Press. http://kstp.com/article/stories/s3215402.shtml
As always, meet with a licensed attorney to help make sure your estate is in order and that those you leave behind are prepared.
Wednesday, October 30, 2013
"Holla We Want Prenup", even if you never get a divorce.
Kayne West and Kim Kardashian are reportedly preparing a prenup before their upcoming marriage.
http://www.huffingtonpost.com/mindy-r-smith/kanye-west-and-kim-kardashian_b_4165510.html
Most outlets are emphasizing the use of prenups in protecting assets in the event of a divorce. Besides the obvious jokes about the longevity of Hollywood marriages, prenups (or more properly called, ante nuptial - "before marriage" agreement) are useful for estate planning. Your will generally can allocate assets how you wish, but spouses have a right in most states, including Minnesota to receive a minimum portion of the estate. The only way to guarantee that the surviving spouse will not invoke that right, is to have a prenup that waives the right. Prenups, particularly if there are family business assets, family farmland or other significant family assets, can keep the asset from being distributed against your wishes. You may never get a divorce, but everybody dies.
http://www.huffingtonpost.com/mindy-r-smith/kanye-west-and-kim-kardashian_b_4165510.html
Most outlets are emphasizing the use of prenups in protecting assets in the event of a divorce. Besides the obvious jokes about the longevity of Hollywood marriages, prenups (or more properly called, ante nuptial - "before marriage" agreement) are useful for estate planning. Your will generally can allocate assets how you wish, but spouses have a right in most states, including Minnesota to receive a minimum portion of the estate. The only way to guarantee that the surviving spouse will not invoke that right, is to have a prenup that waives the right. Prenups, particularly if there are family business assets, family farmland or other significant family assets, can keep the asset from being distributed against your wishes. You may never get a divorce, but everybody dies.
Thursday, September 26, 2013
Know the Consequences of Life Estates
A life estate can be a somewhat simple way to make sure your real property easily transfers to another when you die, but you need to know what you're getting into before you sign off on the deed. Life Estates have many consequences.
First, the property is transferred and your kids have
ownership rights the day you sign and deliver it. This means that your kids may
have things come up, like divorces or creditors that could create a title issue
on your property. For this reason, a transfer on death deed can be a better
option. Second, you can’t take the property back. If you want the property free
of your kids’ ownership, they need to deed back to you. Finally, transferring
property of any kind may have significant gift, estate or income tax issues. A
life estate may be a good idea, depending on your circumstances. However, you
should meet with both an attorney and CPA to make sure you don’t get surprised
later on.
Friday, August 2, 2013
Pohlads in Dispute with IRS over Valuation of the Twinkies.
The IRS thinks that the Twins are worth more than the Pohlad estate claimed on Carl Pohlad's estate tax return. (Have they seen the Twins record recently? - ba dum dum)
http://www.startribune.com/business/216303871.html
The estate claimed the value of Carl Pohlad's interest in the Minnesota Twins at the time of his death was $24 million at the time of his death in 2009. The IRS claims it was more like $293 million. So why the discrepancy? Are the Pohlads trying to get away with not paying their fair share? Well, it's not so clear cut.
Valuation of business interests are notoriously difficult to estimate. You can take into account the assets and liabilities of the company, but what about it's liquidity? Are the assets or business interests marketable? These questions create a whole range of good faith valuations on business interests.
This is further complicated when an individual, like Carl in 2009, owned a minority interest. The IRS recognizes that if you own say 10% of the interests in a company worth $100.00, the value of your interest is lower than $10.00 because you can't exert control over the company or its assets and the value should be discounted to reflect the minority status. But, the question of how much the asset is discounted adds another layer of uncertainty.
If you own business interests, its extremely important that you work with legal counsel to determine if you have a taxable estate and how to minimize estate taxes.
And, because I'm a Twins fan, here's my obligatory cheap shot at the Yankees... well, at least the Pohlads are paying estate tax, unlike the Steinbrenners. http://blogs.wsj.com/metropolis/2010/07/13/how-steinbrenner-saved-his-heirs-a-600-million-tax-bill/
http://www.startribune.com/business/216303871.html
The estate claimed the value of Carl Pohlad's interest in the Minnesota Twins at the time of his death was $24 million at the time of his death in 2009. The IRS claims it was more like $293 million. So why the discrepancy? Are the Pohlads trying to get away with not paying their fair share? Well, it's not so clear cut.
Valuation of business interests are notoriously difficult to estimate. You can take into account the assets and liabilities of the company, but what about it's liquidity? Are the assets or business interests marketable? These questions create a whole range of good faith valuations on business interests.
This is further complicated when an individual, like Carl in 2009, owned a minority interest. The IRS recognizes that if you own say 10% of the interests in a company worth $100.00, the value of your interest is lower than $10.00 because you can't exert control over the company or its assets and the value should be discounted to reflect the minority status. But, the question of how much the asset is discounted adds another layer of uncertainty.
If you own business interests, its extremely important that you work with legal counsel to determine if you have a taxable estate and how to minimize estate taxes.
And, because I'm a Twins fan, here's my obligatory cheap shot at the Yankees... well, at least the Pohlads are paying estate tax, unlike the Steinbrenners. http://blogs.wsj.com/metropolis/2010/07/13/how-steinbrenner-saved-his-heirs-a-600-million-tax-bill/
Tuesday, July 30, 2013
New Happenings at the Law Office
Is it almost August already? Whoops! This month our law office expanded to include a Chatfield office and we're preparing to set up a satellite office in Spring Valley. I've joked that it's like having one kid and then suddenly finding out you're having triplets. This all means that that I get to focus on files in the area of law I love, estate planning. This also means that July has been a whirlwind of activity. I was all set to write about controversies with the Pohlad estate (a familiar name to Minnesotans or Twins fans) this month, but plain ran out of time. See you in August, when I'll write about the Pohlads, the IRS, and valuing your estate.
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