22 August

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Same-Sex Couples May Need to Review Estate Plans

Obergefell v. Hodges, the historic Supreme Court decision requiring all states to recognize legally valid same-sex marriages, will certainly have rippled effects in the estate planning world. Why? Because couples in the LGBT community need to now review their estate plans to determine whether the language used to transfer assets to their significant other is still legally accurate and valid. Many states, including Virginia, did not recognize same-sex marriage prior to the Obergefell decision, so many LGBT couples opted not to put together estate plans where their significant other received assets for fear that they may not be legally valid upon their death. In addition, even if LGBT couples decided to put together an estate plan, they may have done so with under a civil union or domestic partnership agreements. These agreements offered some protections and benefits, but not at the same level as a married couple. For example, married couples are...

10 August

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There’s No Such Thing as a “Simple Will”

Posted by Bobby Feisee

in Bobby's Blog

I get this request, in some form or another, on a regular basis - “I want a simple will.” The client is thinking they have a relatively straightforward collection of assets and a “typical” family. Then they drop the proverbial bomb and reveal that they have a half-interest in a rental property based in Honolulu, natural gas interests in another state, and a general partnership worth somewhere between $100,000 and $5,000,000. They also divulge the fact that they have one child who is physically disabled and another child who has served jail time with two divorces under their belt. Clearly, a simple will is not going to be in the picture. And I make this determination in many instances when meeting with clients. Each individual’s estate is unique. It is important to look at all the complexities and nuances so your estate plan is detailed, thorough, and legally valid. When meeting with...

18 July

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Maintaining Control of Your Money From Beyond the Grave

Posted by Bobby Feisee

in Bobby's Blog

A funny story, found on littlethings.com, about a man and his money goes as follows: There was a man who worked all of his life and saved all of his money. He loved money more than just about anything, and just before he died, he said to his wife, “Now listen, when I die I want you to take all my money and place it in the casket with me. Because I want to take all my money to the afterlife.” So, he got his wife to promise him with all her heart that when he died she would put all the money in the casket with him. When one day he died. Just before the undertakers got ready to close the casket, the wife said, “Wait a minute!” She had a shoebox with her, she came over with the box and placed it in the casket. Then the undertakers locked...

09 July

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Savings Bonds – A Hidden Gem in Your Estate?

Posted by Bobby Feisee

in Bobby's Blog

Over $9 billion worth of savings bonds and $200 million in registered Treasury securities have stopped earning interest, but haven't been cashed in by the owners,according to treasurydirect.com. Why is so much money simply in limbo? Well, the truth is that when many people hear the term “savings bonds” they conjure an image of their grandparent giving them a piece of paper for a nominal amount of money and being told to “hold onto this since it may be valuable someday.” Savings bonds are simply not considered “sexy” investments and therefore get tossed aside and forgotten by the purchasers and/or the heirs. Many clients who purchased savings bonds decades ago, may have even forgotten that they purchased the bonds. Understanding How Savings Bonds are Passed On Savings bonds are “nonprobate” assets, which means they are not inherited through the provisions of a Last Will and Testament. In fact, savings bonds are more...

01 July

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Ignorance is Not Bliss – The Importance of Maintaining Your Estate Planning Documents

Posted by Bobby Feisee

in Bobby's Blog

In a packed auditorium for a TEDx Conference, venerated journalist and author Tom Brokaw was asked flat out by his daughter what was in his Living Will. Why? Because she had no clue. They never talked about exactly what was in his Living Will. Even more shocking was Mr. Brokaw’s admission that “unfortunately, I don’t know a lot about my living will. In fact, I’m not even sure where it is at this point.” [embed]https://www.youtube.com/watch?v=OCFwlysc56c&feature=youtu.be&t=2m15s[/embed] Think about that for a moment – Tom Brokaw, a man who has dedicated his life to investigative journalism including intense research and scouring details of high-level public and private documents, has no clue (1) what exactly is in his Living Will and (2) where it is actually located. Mr. Brokaw is not alone. Approximately 51 percent of Americans age 55 to 64 do not have a Last Will and Testament, or any other estate planning document for...

24 June

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Caring from a Distance: Tips on How to Help Aging Loved Ones When You’re Not Around the Corner

Posted by Bobby Feisee

in Bobby's Blog

Many years ago, it was quite common for children to live in the same city they were born and raised in. They may have even decided to purchase a home in the same neighborhood where their parents still lived. Today, such a scenario is a relic of the past. Many people do not live close to their parents and are scattered across states, and even countries. So you need to ask yourself this important question - when your parent’s health begins to fail, what will happen? Do you know who will care for them if they can’t take care of themselves? The purpose of this article is to give you some tips on how to best prepare for this possibility. Sit Down and Talk with Your Parents About Long-Term Care It’s an awkward conversation, to be sure. You may not want to imagine your parents being mentally or physically incapable of taking care...

19 May

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3 Common Mistakes Executors Make and How to Avoid Them

Posted by Bobby Feisee

in Bobby's Blog

Many people are suddenly thrust into the position of being the executor of a loved one’s estate, and have no idea what to do or how to best proceed. It can be overwhelming. I want to share with you some common mistakes that I’ve encountered with executors in the hopes that you can learn what not to do. Please note, the concerns below are for people that have not done proper trust based planning. Properly drafted and maintained trust based planning (which we recommend for all of our clients) avoids many of the pitfalls below by allowing your trustees to stay out of the courts and public altogether during the administration of an estate. Mistake #1 – Distributing Too Early [caption width="300" align="alignright"] Courtesy of covenanttrust.com[/caption]Inexperienced executors are prone to make distributions too early and without protecting themselves from liability when that distribution is initiated. When you are an...

06 May

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The Williams Family Feud – Lessons for Estate Planning

Posted by Bobby Feisee

in Bobby's Blog

Back in November 2014, I blogged about Robin Williams’ estate plan and his use of a living trust as a vehicle for distributing assets to his children. Unfortunately, despite what appears to be a thoughtfully crafted plan for who receives which assets, members of Williams’ immediate family have opted to litigate a dispute over his estate. The dispute focuses on an array of Mr. Williams’ personal items including his a tuxedo Mr. Williams wore, a promise ring, photographs and awards at his Tiburon, California home. The rivaling family members include Mr. Williams’ wife and three children from previous marriages. According to his estate plan, Mr. Williams passed on his Tiburon home to his wife. However, her attorney contends that the home should not be “stripped” of the things inside of it. On the other side, Mr. Williams' children argue that they are entitled to personal items, per the...

29 April

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Naming a Guardian – Do You Need Court Approval?

Posted by Bobby Feisee

in Bobby's Blog

If you have minor a child, or children, an important issue you’ll need to address in your estate plan is determining who will take care of your children if you suddenly pass away. This person would serve as a “guardian” for your children until they become legal adults. A question I routinely get asked by clients is whether the guardian they prefer to name will need to be approved by a court. Here’s the answer: it depends. A major factor that will influence a guardianship issue is where you reside. If you live in Maryland, you can actually name a guardian in your Will and not have to worry about court approval. Specifically, Maryland law states that “unless prohibited by agreement or court order, the surviving parent of a minor may appoint by Will one or more guardians and successor guardians of the person of an unmarried minor....

18 April

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Proper Medicaid Planning Is Essential for Long-Term Care

Posted by Bobby Feisee

in Bobby's Blog

The National Institute on Aging reports that roughly 70 percent of American over the age of 65 will need some type of long-term care. If that isn’t shocking enough, the NIA reports that over 40 percent of Americans will need some type of nursing home care at some point in their life. You may be thinking, “What’s the big deal?” Well, considering the fact that the annual cost of long-term care at a nursing home is over $100,000 per year, the “big deal” is financial – the cost of care could quickly wipe out your savings leaving you with very little, or nothing, to pass on to your loved ones. Typically, people pay for long-term nursing home care through one, or a combination, of these methods: (i) long-term care insurance; (ii) retirement funds; and/or (iii) Medicaid. In my experience, I have found that better results are achieved for the family if they...