Warning Sign 1: Planning Difficulties

As we get older we may be more prone to making checkbook errors or taking slightly longer to solve problems that used to be routine. For person with Alzheimer’s disease, not only do these problems become more prevalent, but they also become disruptive. Someone with Alzheimer’s may, for example, forget to pay bills months at a time, be unable to complete common tasks they want easily finished, or not be able to follow a familiar recipe.

Warning Sign 2: Visual Difficulties

Many people develop cataracts as they get older, a condition that impairs their ability to see clearly. A person with Alzheimer’s disease, however, will not only have vision difficulties but will have problems relating what they are seeing with concepts. For example, a person with Alzheimer’s may be unable to differentiate between colors or may not realize that they are alone in a room.

Warning Sign 3: Misplacing Objects

Everyone occasionally forgets where they left their cellular phone or car keys. A person with Alzheimer’s will experience these occasional memory lapses more frequently, and may begin placing objects in strange places. For example, a person with Alzheimer’s may place their car keys in the bathroom and, after being unable to find them, accuse someone else of having stolen them.

Brooke Astor died in 2007 at the age of 105. However, after allegations arose in 2006 claiming that her son had been mishandling her affairs as her legal guardian, the question of who would run her estate after she died has been in doubt. Much of that doubt was removed after Mr. Marshall was convicted of stealing from his mother three years ago and sentenced to one to three years in prison. Though he is currently appealing the conviction, the terms of the settlement brokered by the New York office of the Attorney General will apply regardless of the outcome of the appeal.

Under the terms of the settlement Mr. Marshall will receive $14.5 million of the original $31 million inheritance he was going to receive. He will also play no role in the creation or management of the Brooke Astor Fund for New York Education. This fund will be started with a $30 million endowment from the Astor estate. The rest of the estate funds will go towards other charitable groups such as Central Park and city playgrounds located in New York City.

The best way to ensure your inheritance wishes are met is to always speak to your estate planning lawyer whenever you make an inheritance decision. Even though you may know what you want, you may not be aware of the best way to ensure that your wishes are met. Your attorney will be able to advise you on what you need to do.

Tip 2: Use specific gifts carefully.

Let’s say that you created a Will soon after the birth of your daughter. In it you decided to give her your home as part her inheritance. Decades later you decide to sell your home and move to Florida. What happens to your daughter’s inheritance now that you no longer have the specific property you left her in your will? In legal circles this is known as ademption. It effectively disinherit your daughter because the property you left is no longer yours. In order to prevent this you will need to either regularly review your estate plan or create a plan that does not base inheritance only on specific named gifts.

Tip 3: Don’t assume your inheritances only come from your Will.

Today, many estate plans avoid passing property through a last Will and testament as much as possible. Basing your inheritance choices solely on the property distributed according to your Will can leave to an unintentional inequality. Much of your property, such as joint property you own with someone else and property that has a right of survivorship, will not be covered under your will. If you fail to take this property into account when choosing who receives an inheritance, this can lead to an imbalance that you may not have wanted.

There are an endless number of charities that support numerous different causes, each of which is important. It’s not possible to donate money to every worthy cause, so you should pick one, or several, with which you most strongly identify.

Step 2: Research the charity.

Not all charities are equal, and some of them are downright dishonest. The American Institute of Philanthropy recommends that at least 60 percent of any donation should go to the charity itself and not to overhead or other expenses. Research your potential charities carefully before you make any decision about who should receive your money.

Step 3: Determine the amount.

Always make sure that the amount you give to charity is something that you are comfortable with. Though the charity may want more from you, you must be happy that your estate plan meets your other desires, such as providing for your family, children and loved ones.

Step 4: Write it down.

Once you have decided on the charities you want to donate to, make sure you inform your estate planning attorney so he or she can make adequate inclusions in your plan. It isn’t enough to simply express your wishes to donate to charity after you die, and you must create some concrete form that records your wishes. This is typically done by creating a last will and testament, trust, or other instrument through which you can give a donation.

Question 1. What is a gun trust and why would I need one?

Under the National Firearms Act, the sale, use and transfer of specific types of firearms is restricted. These firearms include sawed-off weapons, automatic rifles or machine guns, as well as silenced or suppressed weapons. Owners of these types of firearms can use a gun trust to avoid certain procedures required under the law, making it easier to transfer your weapons as part of your estate.

Question 2. Why is it called a gun trust?

A gun trust is a form of revocable living trust, and in that respect it is the same as other trusts you may form. The trust has a trustee that will manage the firearms, a beneficiary who can use the weapons, and a trustor who creates the trust. However, not just any revocable living trust can be used, as the gun trust must contain specific provisions that allow for the firearms restrictions under the national firearms act.

Question 3. Can I make my own trust?

While there is no legal requirement you hire a lawyer to create your gun trust for you, violating federal firearms laws can pose significant penalties. For example, if you do not create your firearms trust correctly, the trust may be deemed to be invalid in any transfers made, which could result in criminal sanctions such as fines and even imprisonment. You should speak to your estate planning lawyer if you want to create gun trust so you can be sure you do it correctly.

It sounds so counterintuitive, but those who suddenly inherit a lot of money can very quickly fall into financial difficulty just as fast. Consider, if you will, the fact that over 70 percent of NFL and NBA athletes are bankrupt or in dire financial straits within five years of retirement.

Why? Many people believe it is because these people are not psychologically and financially prepared to deal with the issues that come with large amounts of wealth. For many people, questions about money are relegated to assistants, friends and family members who may be ill-prepared to render proper advice and services. These people may also take advantage of the people whose money they are supposed to manage, often leading to not just financial ruin, but destroyed personal relationships.

Issue 2. Happiness.

Neither the poor nor the wealthy have a monopoly on happiness. However, while you are much less likely to be happy if you are poor, your chance at being happy does not increase proportionally with the size of your wealth. Researchers have determined that beyond a minimal amount of money you need to live and to meet certain desires and needs, happiness does not typically come from material possessions, but rather from a sense of purpose and meaning that we derive from other sources. Inheriting wealth is often a hindrance to this sense of purpose as there are few obstacles a person must overcome when their wealth allows them to indulge any whim.

Damaging Myth 1: I don’t need to create an estate plan because I’m not wealthy/old/sick.

Reality. Of all the estate planning myths, this one is the the most damaging. Every adult aged 18 and over can benefit from some estate planning efforts. Even if you don’t have a lot of property, you will want to have an estate plan in the event you get sick or die prematurely. If you have children, your need for an estate plan is even greater as only an estate plan can allow you to take specific steps, such as naming a replacement guardian.

Dangerous Myth 2: All I need is a will.

Reality: Though a will is a key part of every estate plan, is usually not enough. There are some questions that a will cannot answer, such as the kinds of medical care you want to receive if you suffer from a disease that prevents you from expressing yourself. To get a better idea of what a complete estate plan entails, you should speak to an estate planning lawyer as soon as you can.

However, Nebraska lawmakers have recently introduced a bill that would make it the first state to adopt a law directly addressing digital estate planning issues. The proposed law states that an estate executor, known as a personal representative, will have the authority to not only access a decedents social media and e-mail accounts, but will also have the ability to control and dispose of these assets as he or she sees fit.

Currently sites like Twitter, Google, and Facebook have varying procedures involved when a member dies leaving behind an account. For example, Facebook will memorialize a deceased person’s account once it learns that the person has died, while Google and Twitter require notification from an executor that includes a copy of the death certificate plus other forms of notification.

Though the bill has not been approved or signed into law, it appears that this is the first kind of legislation introduced into a state legislature anywhere in the country. As digital assets become increasingly prevalent in estate planning issues, it appears likely that other states may follow with different forms of legislation.

At issue is the more than $50 million that Ms. Clark left to her personal nurse during her life and through her final last will and testament. The nurse worked for Ms. Clark for about 20 years and, as that time progressed, received almost $26 million in gifts from the heiress including five houses and a $200,000 luxury Bentley automobile.

The family members are contesting the will on the basis that Ms. Clark was not able to understand the nature and extent of her property at the time she made it. They argue that a previous will should apply to her estate, one that leaves the family an inheritance. The will which they are contesting completely cuts the family out.

However, the two wills were created within six weeks of each other. If the court determines that one is invalid because of Ms. Clark’s inability, it may very well determine that the previous will is also invalid. In this situation, the family members would stand to inherit everything because that is what the New York intestacy laws require.

• Will

You name guardians for your minor children in your will.  Be sure to get the guardian’s permission before naming them.  This best ensures that the guardian will serve when needed.  Name back up guardians as well, just in case your primary guardian is unable or unwilling to serve when needed.

• Revocable Living Trust

Minor children cannot inherit directly; they, however, can be named as beneficiaries of life-time trusts that provide for their needs and are managed by a trustee.   When your child becomes an adult she can act as a co-trustee.  These assets can even be asset protected, so they can’t be taken in a subsequent divorce, bankruptcy, business failure, or lawsuit.

• Stand-by Guardianship; Child Care Power of Attorney; Temporary Guardianship Authorization

Stand-by Guardianship; Child Care Power of Attorney; and Temporary Guardianship Authorization are all names for the same document.  Because the guardians in your will only have authority to act if you are deceased, you need to authorize these same guardians to care for and make decisions for your children if you are alive, but somehow incapacitated, and unable to care for them.  Again, name contingent temporary guardians.

• First Responder Authorization

The First Responder Authorization authorizes trusted friends and neighbors to stay with your children until your named guardians arrive to take them into their custody.  Include trusted friends and neighbors who can get to your house within 15 minutes.  This is about how long the police will stay in your home before taking your children into protective custody (i.e. foster care.)

If you are the parents of young children, you need comprehensive estate planning, incorporating these documents.  Be sure to consult with a qualified estate planning attorney.