We started the day [...]]]> I was privileged to conduct the In Case of Emergency, Break Glass! program at the East Library on Jan 21, 2012 sponsored by the members of Artemis and the Friends of the Pikes Peak Library. It was open to the public and 5 of my close friends came as well.

We started the day with why organizing your will, powers of attorney, and health care directives are so important. The state of Colorado has very reasonable laws if people die without a will, (and if no one decides to contest it) but having a will absolutely makes the process easier and cheaper on the people left behind. Having a will also makes sure that you, not the state, decides what happens after you are gone. So why don’t more people have a will?

I think it is because having a will means that we acknowledge the fact that we will someday die. This is scary. Sometimes death is quick, sometimes it is painful, and sometimes it is a surprise. The uncertainty of death makes it a frightening prospect.

Having a will, though, gives us back some of the control. We decide what happens, we plan and we know we are helping the people we care most about.

I like trusts too, if there is property in other states, multiple properties, second marriages, or complicated family situations, but the need for a trust is based on the individual and the state of residency. More and more states are moving toward common rules, but if you think you might need a trust, meeting with an estate-planning attorney is a good idea.

One of the points I made yesterday is to please check the beneficiaries of your life insurance and your Individual Retirement Accounts (IRAs), SEP plan, and 401 (k). When you first checked in for your job, you probably received a stack of forms and you filled them out and turned them in and stopped thinking about them. The people you listed as beneficiaries may not be in your life any more.

Please look at that paperwork to make sure that the people listed are who you want. Many people don’t realize that accounts with beneficiaries like this do not go into the estate if something happens to you – they go to the person named on the form, so that form is important.

Getting all of this paperwork together doesn’t sound fun, but it is critical to the well-being of the people you love. Isn’t that worth a few hours of your time?

Who needs a [...]]]> What is a will? A will is a set of instructions directing when and how affairs should be managed in the event of a death.  It also directs who makes the decisions and to whom property is awarded.  A will can also be used to name a guardian for minor or disabled children.

Who needs a will? If you have any property at all, you need a will.  A car counts as property.  Your clothes are property.  I think if you are old enough to vote, you need a will.

Where can I go to do a will?  I like using estate planning attorneys for wills and trusts.  If there is any ambiguity in your will, or if someone can say that the will is defective (such as they were left out), the estate gets tied up in the court system.  This is the problem with the cookie cutter do-it-yourself will-making kits.  If the will is contested, the lawyers are going to get involved.  That costs money and time as then the lawyers and the courts try to figure out what you intended.  Doing a will right pays for itself.

What happens if I don’t have a will?  Then you die “intestate.”  When this happens, the state’s laws and courts decide who is entitled to what, who has the authority to be the personal representative, and where the property goes.  Administering an intestate estate is complicated and requires the involvement of the court system as they sort out all possible heirs to the estate.  (This is bad.)  You can find out where your stuff goes for your particular state at www.mystatewill.com if you die without a will.  This does not consider the costs of the process.

What is probate?  Probate is the legal process that is use to transfer title of property from the decedent to the designated people (named in the will) or heirs (if there is no will).  All wills and intestate estates must be probated.  A long probate is costly.

Bottom line:  Get a will!  It saves countless hours of hassle and money for the people you leave behind.  You worked for your assets, and you should make sure your wishes are carried out.  Make sure YOU control where your wealth goes, not the court system.

As the hurricane looms on the east coast and people are evacuating, securing important papers is important. You should be able to grab important papers in less than 60 seconds. Birth certificates, passports, mortgage papers, marriage certificates, wills, trusts, insurance information, personal contacts, health care [...]]]> Make grabbing important papers easy with this free checklist

As the hurricane looms on the east coast and people are evacuating, securing important papers is important. You should be able to grab important papers in less than 60 seconds. Birth certificates, passports, mortgage papers, marriage certificates, wills, trusts, insurance information, personal contacts, health care directives, military discharge papers, and social security cards are just some of the paperwork you need.

Does it seem overwhelming?

Here is a free downloadable checklist http://organize-you.com/refills/ (scroll down to the In Case of Emergency Checklist) to make it easy for you to make sure you have what you need.

There are also free childcare forms, senior care forms, cat care forms, and dog care forms.

Please take care of yourself and be safe!

Let me know if you have any questions. I appreciate your feedback.

Warmly,
Mary Kelly
Mary@ProductiveLeaders.com
www.Organize-You.com

Less than 57% of American adults have a will. Of those who have a will, most claim that they either don’t have or [...]]]> The death of Amy Winehouse is a reminder that being young and famous doesn’t exempt us from needing our legal paperwork in order. If you can vote, you need a will.

Less than 57% of American adults have a will. Of those who have a will, most claim that they either don’t have or don’t know where the rest of the needed paperwork is, such as insurance information, trusts, powers of attorney, health care directives, memorial instructions, burial wishes, and letters of instruction. Many of those people who have a will need to update it, since their lives and situations have changed.

Please take control of your life. Make sure that the people left behind are not spending your money AND years of their life cleaning up your affairs because you didn’t do paperwork now.

Have questions? Email us at Mary@ProductiveLeaders and we will answer questions here.

“Not an obnoxious one, just some tasteful art where not many people will see it,” she explained.

I asked, “On your back?” She said yes.

“So you won’t be able to see it yourself?” I persisted.

“That’s right.” She answered.

“So [...]]]> One of my young friends said they really wanted a tattoo.

“Not an obnoxious one, just some tasteful art where not many people will see it,” she explained.

I asked, “On your back?” She said yes.

“So you won’t be able to see it yourself?” I persisted.

“That’s right.” She answered.

“So how much do you think this picture that you can’t see is going to cost?”

“I got a good deal. It is only about $300. After all, this is a tattoo artist. With great colors.”

“Ah” says I. “So I guess you have fully funded your Individual Retirement Fund already?”

“Well, no” she admitted. “Retirement seems so far away. I’m only 21!”

“How old do you think you might be when you retire?”

“Oh, probably about 70.”

So,” I continued, “I am not saying tattoos are bad. But, consider the impact of compound interest and that money. If you invest that $300 for your tattoo and add just $10 per month, the cost of two coffee drinks, at a 10% interest rate, you would have $218,298 at 71 years old.

If you contributed just $100 a month, after that initial $300, it adds up to $1.7 million dollars.

But let’s say you just invest that $300 for the tattoo. That is still $43,610.”

Is that tattoo that you can’t see really worth $43,610?

Have a great week!
Mary Kelly

Mary@ProductiveLeaders.com
www.ProductiveLeaders.com

Families are often unprepared for the care involved with senior or incapacitated family members. Most underestimate the costs involved. Many people assume that the [...]]]> Most people don’t want to think about end-of-life care. It involves confusing programs, compounded by the mental and physical changes as we get older.

Families are often unprepared for the care involved with senior or incapacitated family members. Most underestimate the costs involved. Many people assume that the senior care is covered by government programs, but much of it is not.

One of the biggest expenses that people don’t anticipate is in-home care so that people can remain independent. Medicare does have an in-home health benefit, but it is only for part-time care.

www.medicare.gov/Publications/Pubs/pdf/10969.pdf

Without long term health care insurance, family members may feel as though they have to provide the nursing care. The family caregiver may have to forfeit a paying job or the care may be shifted among various family members if available. Other costs may include equipping the home with special disability bars, ramps, and enlarging doors to accommodate wheelchairs.

The key to a successful transition is planning. I suggest a great estate-planning attorney who specializes in elder-law, a family meeting on responsibilities and care giving, and possibly, long-term health care insurance.

In 2004, Colorado enacted a law that allowed an owner of real property to execute a beneficiary deed which would convey real property to a new owner at the death of the original title holder provided that the deed is recorded in the official records [...]]]> Does a Beneficiary Deed Have a Place in your Estate Plan?

In 2004, Colorado enacted a law that allowed an owner of real property to execute a beneficiary deed which would convey real property to a new owner at the death of the original title holder provided that the deed is recorded in the official records prior to the death of the owner of the property. Previously, Colorado law provided for a “transfer on death” deed, however that law was not well thought out and therefore created as many complications as it solved.

Among the reasons to consider transferring property by beneficiary deed are:
1. To avoid the financial expense of filing a probate administration with the court. (Attorney’s fees, court filing fees, LexisNexis e-file transaction fee of $6 each time you e- file a pleading, etc.)
2. To avoid the delay of probate proceedings which “official sources” say will take several months to a year. (Trust me, if you can get anything in and out of the judicial system in “several months” it is a great day for you, but don’t hold your breath.)
3. A beneficiary deed can be revoked by the property owner at any time by filing a revocation of the prior beneficiary deed in the official records.
4. The property owner can change the beneficiary at any time by making a new deed to a new beneficiary and filing that deed in the official records.
5. The property owner retains full use and control of the property throughout their lifetime, without any restrictions on their ability to sell, rent, or mortgage the property.
6. A beneficiary deed is inexpensive and easy to execute and file.
7. Since the beneficiary does not have any vested interest, but a mere expectation of receiving the property in the future, there is no risk that the beneficiaries’ creditors have a claim on the property.

Arguments against using a beneficiary deed to transfer property are:
1. If the property is owned by joint owners, then the last surviving owner can control who gets the property by executing a revocation of a prior deed or executing and filing a new beneficiary deed. (This would also be true if the surviving owner transferred the property by will.)
2. If the property is transferred to more than one beneficiary, then they will have to cooperate with one another in management of the property. (In my opinion, this is a multiple owner issue that arises no matter how multiple owners come into ownership of the property and is not a beneficiary deed issue.)
3. A beneficiary deed does not avoid estate taxes. (Again, a non issue when your choices are whether you are going to give the property to another by deed or through your will.)
4. When the beneficiary deed is recorded, it is public record as to who you intend to leave your property to (again, this is no different than a transfer through a probate case).
5. A beneficiary deed is subject to all conveyances, encumbrances, assignments, contracts, mortgages, liens and other interests affecting title to the property, regardless of when they were created. If the probate assets are insufficient to cover claims by creditors, by a surviving spouse or children for statutory allowances, or a Medicaid recovery claim, the personal representative (executor) may bring a proceeding against the grantee-beneficiary to recover a share of the equity in the property, to the extent necessary to discharge the claims. (This is also true in a probate proceeding.)

One significant caveat is that medicaid assistance is not available to a person who has executed and recorded a beneficiary deed. Therefore, if you may need to apply for Medicaid in the future, then any person executing a beneficiary deed should also execute a power of attorney that authorizes an agent to execute and record a revocation of any beneficiary deed, should that become necessary in the future.

And ladies and gents, what type of attorney would I be if I didn’t tell you, the real answer is “it depends” and issue the traditional disclaimer that each case is different, depending on the total picture. This information is general information only and is not provided as advice for a specific matter, nor does its publication create an attorney-client relationship. Laws vary from one state to another. For legal advice on a specific matter, consult an attorney.

Thanks for reading!

Cris Carter

www.CrisCarterLaw.com

(719) 434-0000