Archive for the ‘Estate & Trust Administration’ Category

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Storing your Estate Planning Documents

Friday, October 21st, 2011

In Florida, originals of estate planning documents are important. When someone dies, their original Last Will & Testament needs to be deposited with the probate court.  Absent something unusual, the court will then admit it as the deceased person’s last wishes so that it can be “executed”.  If a deceased person’s Will cannot be located, then it is presumed to have been revoked.  This happens more times that you might think – people put their documents in a “safe” spot that is so safe that no one can find it after their death!

Fortunately, Florida has a procedure that allows a copy (signed or unsigned) to be admitted as the original Will.  It’s not a slam-dunk, but can be accomplished if the circumstances are right.  Because of the possibility of misplacing an original Will, some clients ask their advisors to hold their Wills in safekeeping.  This works well; however, if your family has no idea who your advisors were during your lifetime, they may not be able to locate your Will.

So what can we do?  I have a few suggestions:

1.   Tell your named personal representative or trustee where your originals are located.  You may also want to provide him or her with copies for their records.  That way, at the time of your death, they can compare the copies that you gave them with the documents that they subsequently locate as the originals.

2.   If you chose to hold your originals in a safe deposit box, consider having a second person authorized to enter your box.  Why?  In Florida, that person will not have any hassles entering the box to find your Will and other personal property.  A word of caution – authorize someone with whom you have complete trust.

3.   Store an electronic copy of your estate planning documents on The DocSafe (www.TheDocSafe.com).  This service will safely and securely store your documents on the internet for ready retrieval.  A copy from the internet is not the same as the original, so be sure to indicate on The DocSafe where your originals are located.  If you keep The DocSafe up-t0-date and your original Will cannot be located, then your named personal representative can ask the probate court to admit your digital copy of your Will into probate.

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Money Issues of Surviving Spouses

Monday, September 19th, 2011

That’s the title of a recent article by Tom Lauricella  in the Wall Street Journal.  This article talks about some of the very important issues that face a surviving spouse when his or her spouse dies.  If you are married, I would encourage you to read this article.  You should also consider these pieces of information:

1.     In many marriages (mine included), only one spouse handles the finances.  This is probably efficient and works well, but when that spouse dies, how will the survivor know what to do?  One of my clients recently lost her husband, who was also a client of mine.  He was ill for some time and before he died, he made a list of action items for her.  It was a very loving gesture, since most widows or widowers are in a “fog” after a spouse dies.  If you have not made this list, that’s ok.  However, you should consider having your financial information organized in a place where your spouse can find it.  That way, he or she will not have to search through your house at a very difficult time.

2.     My grandfather was an estate planning attorney for over 60 years.  During his practice, he obviously learned a few things, and he was kind enough to share some of those pearls of wisdom.  One of them was to not allow a surviving spouse to make any major decisions for at least six months after death.  This might include selling the family home or making significant estate planning decisions.  I don’t know if six months is the right amount of time, but I have witnessed that fog and know that it takes time to mourn.  Often, decisions made in haste cannot be taken back and may delay or impair the healing process.

3.     Don’t be afraid to ask for help.  Actually, your loved ones want to help, but do not always know what they can do.  Maybe they can take you to the DMV to retitle the car or to the bank to retitle your accounts.  You should also ask for help from your professional advisors.  While everyone’s situation is unique, many of the things that need to be accomplished after death have been done before.  We can help!

4.    Perhaps most importantly, allow yourself to mourn.  Losing a loved one is hard.   However, you do need to go on living as your spouse would have wanted.

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Death and Divorce

Thursday, July 28th, 2011

Why are celebrity deaths so fascinating?  Is it because it gives us a glimpse into their lives that we would not otherwise have?  The most recent celebrity death of Amy Winehouse is no different.

While I do not think I could identify her by photo or have that heard any of her songs, she has been in the news lately following her recent death. The newest article that I found mentions her Last Will. Not too many 27-year-olds have a Will, but then again most 27-year-olds don’t have a $16 million estate.

The gist of this article is how her Will specifically excludes her former husband as a beneficiary. Interestingly, under English law, divorce does not terminate a former spouse’s inheritance rights. In other words, it is necessary in England update your will after divorce. Otherwise, your ex-spouse will receive whatever gift was left to him or her in your estate planning arrangements.

The rules in Florida are a bit different. Divorce generally severs a former spouse’s right to receive an in gift under your Will. As with most laws, there are exceptions to this rule. For example, if you agree to include your former spouse as a beneficiary as a part of your marital settlement agreement, then your “old” Last Will’s provisions will still govern. In addition, a specific provision in your Last Will that states that your former spouse will continue to receive benefits will also be enforceable.

So what’s the point? We are always harping our clients to update their wishes as their lives change. Divorce certainly qualifies as one of those life events! If you are divorced or are in the midst of a divorce, be sure to review your estate plan to make sure that your wishes are current. This applies also to beneficiary designations on life insurance and retirement accounts. Changing your Will does not mean that your life insurance retirement accounts have been changed as well. Don’t forget to review and update those designations!

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