Being Thankful!

November 27, 2019/in Uncategorized/by KT Williams

The Business of Being Thankful

The Holiday season provides many of us with an opportunity to pause from work and spend time with our families and friends. Even if we don’t get as much time as we would like to relax or to spend time with others, hopefully we use it to reflect upon how much we value those people in our lives, even if they make us a little bit sideways sometimes.

In my work on estate planning and estate administration, I see a vast range of family dynamics. Some of them are unfortunate while others are just the opposite, filled with compassion, patience, and gratitude toward one another. As I reflect on all the things I’ve heard over the years, it seems one of the most common missing ingredients in the less unified families is “Thanksgiving.”

Thanksgiving Is An Attitude.

Thanksgiving is not just a holiday where we stuff ourselves. It’s an attitude that we can choose to have all year long. Some call it gratitude. We can practice gratitude, much like we might practice for a sport or for a part in a play or much like we might prepare for an important interview. Start small and think big picture. Approach the Thanksgiving table and each day with a fresh perspective, a fresh attitude.

Thanksgiving Is An Action.

Thanksgiving is also an action. While gratitude and thanksgiving may seem like they are purely emotional, our attitude is only one piece of the puzzle. Thanksgiving requires action, too. Perhaps, it’s a smile. Or a wave across the street or to a friend in a passing car. Maybe it’s a sincere sounding greeting of “hello” or “how are you doing” followed by taking time to listen for a response. Thanksgiving is an action, and it is infectious.

Putting The Attitude and The Action Together.

We must combine both our attitude and actions of thanksgiving to complete the thanksgiving puzzle. That’s when we find ourselves in the business of thanksgiving.

What are the things you are thankful for? If you have friends and family for whom you are thankful, tell them. Look for small things each day for which you can be thankful. Did someone graciously let you into traffic? Is the café near your office serving your favorite soup today? Did you get a great deal on something you wanted to purchase? Has it turned out to be an unexpectedly great hair day? Did the price of gas drop before you had to fill up? Each day we experience things for which we can be thankful. We just need to take the time and be intentional about doing it.

I Am Thankful!

I am thankful for my family. I am thankful for the opportunity to get to do something I love every day. I am grateful for each and every client I get to meet and serve. I am thankful for the wonderful staff in my office that assists me in serving our clients.

I cannot express enough gratitude to the friends and colleagues who refer us to others and who help spread the word about how my staff and I can help. I am thankful for the community that I call home. I am also thankful for the many surrounding communities that I serve. And I’m thankful that technology allows me to serve clients from all over our great state of Kentucky.

As I think about the things for which I am grateful (and the list could go on), I am hopeful that I show my thankfulness each day. And as you consider the things for which you are grateful, I hope you feel blessed and thankful, too!

Joint Accounts: Avoiding Unintended Consequences

November 22, 2019/in Estate Planning/by KT Williams

We use many tools in an estate plan. The tools may include Wills, Trusts, and Powers of Attorney. Also, the tools may include the beneficiary designations of retirement accounts and life insurance and carefully titling assets so that they pass the way we want. How an account is titled can play a major role in an estate plan. And I’ve seen the use of joint accounts prove very helpful, but I’ve also seen them lead to major, unintended consequences. So be very careful before you place someone on your account.

What is a joint account?

A bank or investment account can be a joint account or single account. This relates to the number of owners. A single account is an account owned by one person. A joint account is owned by more than one. The owners of the joint account are joint owners, and each of them can control and use the account as their own. Spouses may have joint accounts, and I often see joint accounts owned by a parent and a child.

Why Have A Joint Account?

A joint account isn’t always a bad idea. It can be a convenient way for more than one person to write checks on the account and to make withdrawals. Often, when someone tells me they’ve placed a child on their account, the account changes were based on recommendations from a friend, child, or bank employee. The goal for the change is usually to allow the child to help the parent with writing checks, paying bills, or taking care of anything else that may come up with the account. And that goal is achieved when the child is placed on the account.

When the parent dies, the joint owner becomes the sole owner of the account. And the new owner doesn’t have any obligation about how the account is used. This can lead to unintended consequences. But there are other ways to achieve the convenience of having a joint owner without the unintended consequences that can arise.

What Are Some Unintended Consequences of Joint Accounts?

Some of the unintended consequences occur often. First, there is the joint owner, often a child, who uses the account in ways not intended by the parent. For example, the parent may only intend for the child to use the account for the parent’s needs. But the child, as a joint owner, can do anything they want to do with it. So the account is an easy source of funds to spend on things unrelated to the parent. And it happens far too often.

Another unintended consequence comes up when the parent expects the child who is a joint owner to split the account with others at the parent’s death. In other words, the parent often expects the child who is on the account to treat the account as part of the parent’s assets to be split equally with their siblings.

Sometimes it will work out exactly as the parent intended. But too often it does not. And even when it does, family tension can result as the siblings who were not joint owners wonder if they got everything their parent intended and if their sibling misused the money or took some that the parent intended to be split.

When a child decides not to split a joint account even though the parent intended it to be split, there are a few common justifications given. Often, the child decides that the parent really meant for them to keep the entire account balance for themselves after all. They justify this with the argument that the parent wouldn’t have made them a joint owner unless the parent wanted the child to keep the entire account at the parent’s death. And the child will ease their guilt by recalling all the help and care they provided for their parents while their siblings did very little or nothing at all to help. I’ve noticed that it’s easy to overestimate our contribution and underestimate the contribution of others.

These justifications may be true. But there are better ways to avoid the unintended consequences and family tension that arises. A Power of Attorney.

How Could A Power of Attorney Help?

A joint account is a fine idea in some circumstances. When there are no siblings to share in a parent’s estate, for example, a parent could add their only child on a joint account with them without some of the unintended consequences that could occur. Even still, you should evaluate carefully how much you can trust the person you would put on your account. Ask yourself – what is the risk that my money might be spent inappropriately? And when you have multiple children, there are the other factors. How great is the risk that the account may not be split the way I want after my death? What if my choice to have a joint account with one of my children creates suspicion and tension between that child and their siblings after I die? Are these risks that I am willing to take? If those risks bother you, there is a solution: A Power of Attorney.

The agent (attorney-in-fact) under a Power of Attorney typically has the authority to write checks on an account, to make deposits to the account, and to do anything else needed. But the agent is limited by law to only doing what is in your best interest. So the agent isn’t permitted to use the account for their own needs or desires. And if they did, they could be held accountable to you and your heirs.

Also, by using a Power of Attorney, you could rest knowing that the account will pass to the beneficiaries you desire. The account would be controlled by your Will or by beneficiary designations you put on the account.

Making someone a joint owner on an account gives them control and ownership of the account. Making them an agent under a Power of Attorney simply puts them in a position to help you. When the goal is to get help but not to give away an account, the Power of Attorney is usually a better option. If you would like some help evaluating whether a Power of Attorney or joint account is right for your situation, contact us. We’re glad to help.

Being An Executor: The Basics

November 15, 2019/in Estate Administration/by KT Williams

If you’ve been appointed executor, or believe you will be, there are some steps that you should take. This list will be a helpful guide.

What Is An Executor?

The executor is named in a Last Will and Testament to administer the estate. This means the executor will identify all assets of the deceased, all expenses and debts of the deceased, and all beneficiaries of the deceased. Then, the executor will determine which debts and expenses should be paid and which should not be paid. (It’s unlikely that debts and expenses of the deceased will not be paid, unless there are insufficient assets to pay them). The executor will pay the expenses and debts, then distribute the estate’s assets to the beneficiaries. Finally, the executor will close the estate.

Serving As Executor Is Manageable and You Can Do It.

With help from an estate administration (probate) attorney, serving as an executor will not be too difficult or too challenging for you. Our estate administration (probate) team will work with you from opening the estate to closing. The process will be coordinated step-by-step so that you know what to do and when to do it. That way, you can see where you are in the process and will finish sooner and with less trouble along the way. If you are appointed executor or think you may become executor, contact us to help. The list below will be helpful as we work together.

Steps an Executor Should Take.

Take time. The executor should give ample time for friends and family to grieve. And the executor should give themselves time to grieve as well. Rarely will circumstances require an estate to be opened within a few days after death. So, give those affected by the death some time.

Contact the right attorney. The executor’s first order of business is to contact an attorney who focuses their work on estate planning and estate administration (probate). This will make the workload and challenges that executors face much more manageable. Let the attorney guide you through the estate administration process. The process will be easier and less time consuming for you and the beneficiaries.

Find the Will. Next, locate the deceased’s original Last Will & Testament and take it to the attorney who will assist you. Do your best to identify all assets (property) the deceased owned. Include any proof of ownership you are able to find. Provide all of this information to the attorney.

Learn about the deceased’s affairs. Gather contact information for people and organizations that need to know of the death. This list probably includes the Social Security Administration, the deceased’s health insurance company, life insurance company, banks and other financial institutions, employer, accountant, family members, and beneficiaries. Your attorney can help identify who should be contacted, what order to contact them, and how best to contact them. Don’t feel like you must do it all. We are here to help.

Get a tax ID (EIN) for the estate. The estate may need a unique Tax ID (EIN) number. A tax ID number is like a social security number for estates, trusts, and businesses. For example, it there will be an estate bank account or any account-based asset as part of the estate, such as an investment account, the estate will need a tax ID number. Your attorney or the deceased’s CPA will get the Tax ID (EIN) for the estate.

Don’t Delay. Stay proactive in your efforts to locate assets, pay expenses, and distribute the assets to beneficiaries. Also, be diligent in communicating with the estate attorney about your efforts so that you can get the best instruction.

Keep the attorney well informed. This means you should provide copies of bank statements you receive for the estate accounts, provide copies of documentation related to estate debts and expenses, and rely on the attorney to help you move the estate toward completion and closing. Delay in providing information to the estate attorney or simply not cooperating with efforts aimed at moving the estate toward closing will simply add to the cost of the estate administration and make it frustrating for everyone.

Evaluate tax consequences. As executor, you may need to coordinate with an experienced CPA to have the final income tax return prepared. Also, there may be an estate income tax return to be prepared, but that will be rare. Most estates don’t require an estate income tax return. Nevertheless, executors should check into whether a tax return needs to be filed rather than simply assuming one doesn’t need to be filed.

We Can Help.

Our estate administration (probate) team works with executors in a coordinated step-by-step process so that the executor knows what to do and when to do it. That way, the executor can see where they are in the process and finish the estate administration sooner and with less trouble along the way. Our team loves to work alongside executors, to take the mystery and stress out of estate administration, and to help executors complete the estate more quickly and less expensively than they would elsewhere.

Milestones & Bucket Lists: Making Our Days Count

November 8, 2019/in Uncategorized/by KT Williams

This week, we celebrated a milestone birthday in the office. Brooke Clark turned 21. If you haven’t met Brooke, her smile welcomes you when you visit our office, and her voice greets you when you call. Her birthday started me thinking about other noteworthy points in our life. Perhaps, we look forward to a particular birthday: 16, 18, 21, and many others that follow. Or perhaps we look forward to a lofty goal: moving for college, a new job or promotion, marriage, starting a business, retirement, or leaving a legacy for our families.

Sometimes, we look forward to better days or a brighter future, especially if times seem difficult. Regardless, we should make each day count. How do we do that? Goal Setting and “Bucket Lists” can help. I’ve seen firsthand the importance of goal setting in the estate planning and elder law work that I do for people of all ages.

Goal Setting, Bucket Lists, And Taking Steps.

Do you have a bucket list? What are your goals? Each is a destination. It may be years away or merely days. But whether just a few days or many years into the future, you must map out how you are going to reach the destination. I realize that figuring out how we’re going to achieve our goals seems easier said than done. It is. We don’t have a crystal ball. We don’t know the future or what exactly the best path will be. And there may be some detours, roadblocks, and speed bumps along the way. But if you set the goal and create a map for getting to it, each step you take will bring you one step closer to reaching it. Your bucket list items are a prime example.

Vicki Gibson is another valuable team member in the office. We work side-by-side quite a bit, and, if Brooke isn’t here, it’s Vicki’s warm smile and pleasant voice that makes you feel comfortable when you visit or call.

Vicki recently returned from her own bucket list experience: an Alaskan Cruise. Wow! Hearing about the trip and seeing the beautiful pictures made me long for a similar trip. Yet Vicki admitted that her description and pictures failed to capture the feeling of the experience. The exhilaration. The breathtaking views. The crisp, sweet air. The flowing rivers, snowcapped mountains, whales, glaciers, and so many other things that words or pictures can’t fairly describe. If words can’t describe it, how do we understand what Vicki experienced? We must experience it, too.

Whether an Alaskan Cruise is on our list doesn’t really matter. The point is that much in our life is like Vicki’s experience on the Alaskan Cruise. We can’t understand what it is like without experiencing it ourselves. So what are we doing to experience the things that interest us and take us closer to achieving our goals?

There Will Be Obstacles To Overcome.

There will always be obstacles. Part of every experience and achievement is the journey. Very little good is experienced without some challenges along the way. And the obstacles or challenges can take many forms. Sometimes we may view our age as an obstacle, saying we’re too old or too young to have a particular goal or interest. But is that right or does our age simply add to the challenge?

Is it simply another obstacle to overcome in our journey to experiencing something special? Don’t let the challenges and obstacles keep you from working toward your goals. They merely make the path look more difficult, but you shouldn’t let them stop you from beginning your journey. The first step is the hardest. We all have reasons (obstacles and challenges) why we wait to take the first step. But we must take that step, or we’ll fail to make the most out of our days.

Maybe your goal is to start a business. Starting a business isn’t easy. It takes guts, vision, and the willingness to accept the outcome. Not all businesses succeed. But those who know success and have experienced the triumph of trying something new and special have also had to embrace the uncertainty of the future. They had to overcome the fear of what might go wrong. They had to boldly refuse to let the fear of those things stand in their way from trying something big, making something special, and seeing just how successful they could be. I’ve been there myself when I decided to start my law office. And I have been honored to help many clients with the legal aspects of beginning their new ventures.

We don’t have to look far to see others who are venturing out to realize a dream. Jessica Beaven and her husband are a perfect example. They’ve laid out the vision for a senior-living community, called Homeplace of Henderson, and they’ve taken steps to make the vision a reality. Of course, they could have simply kept their vision quiet and done nothing, always wondering what would have come of their dream if they had tried. Instead, they embraced the challenge of making something new and boldly forged ahead. Doing nothing may have seemed easier at the time, but the sting of regret from not trying would have been much worse. They are making their days count.

Make The Most Out Of Your Days.

While we may not have Alaskan Cruises in mind or a large-scale residential and commercial development as part of our goals, we have goals. What are they? Make a list of them. Then, write the steps or milestones to achieving the goals. But don’t stop there! Take the first step. It’s normal to be scared and to see the challenges instead of the opportunities that accompany them. Do it anyway. Don’t hold back. Whether you are just turning 21 or you are shopping for a senior-living community, make the most of your days.

Avoiding Problems: Inconsistent Beneficiary Designations

November 1, 2019/in Asset Preservation, Estate Planning/by KT Williams

At our death, we want our assets to benefit those who receive them. And we want our beneficiaries to receive them both gratefully and peacefully (without controversy from other potential beneficiary candidates). To avoid one problem that would stand in the way of these goals, make sure the beneficiary structure in your Will (or trust) and the beneficiaries on your financial accounts are the same. If they aren’t the same, then your Will (or trust) should say that you meant for them to be different.

Beneficiary Designations Are Good, But May Backfire.

Beneficiary designations for banking and investment accounts, such as Pay On Death (POD) or Transfer On Death (TOD) designations, have many uses, and they can be a helpful part of an estate plan. Those designations, like the beneficiary designations on your retirement accounts, tell the financial institution who the new owner of the account will be at the moment of your death. An account with a beneficiary designation doesn’t have to pass through your estate and won’t be subject to the probate process. That sounds like a good thing. Right? But the convenience you hoped to create by having beneficiary designations on your investment and banking accounts could instead backfire and cause problems among your beneficiaries, unless certain steps are taken.

Generally, the beneficiaries named in your Will (or trust) are the same beneficiaries you want to share in your accounts. But it’s not necessary that they be the same. The law doesn’t require them to be. Because the beneficiaries are usually the same and because the Will (or trust) is viewed as an expression of how you want your assets to pass, if the Will (or trust) and the beneficiary designations on your accounts are different, your beneficiaries are left to wonder why there is a difference.

The beneficiary who receives less than expected because an account’s beneficiary designation is different from the beneficiary structure of your Will (or trust) often presumes that a mistake was made or that you were unfairly influenced by the person who got more. If the beneficiary structure of your Will (or trust) and the beneficiary designations on the accounts had the same distribution pattern, there wouldn’t be the basis for the presumption. To avoid this problem, you should be careful to make the beneficiary structure in your Will (or trust) and the beneficiary designations on your accounts match. If you want them to be different, that isn’t a problem as long you take steps to make it clear that you knew there was a difference and that you intended it. In other words, if you want to avoid these problems, your Will (or trust) should say that you have intentionally created a different beneficiary structure through the beneficiary designations on your accounts. That will help show that someone didn’t take advantage of you or influence you unfairly to make an inconsistent beneficiary designation.

Working Together To Prevent Problems.

You, your financial advisor, and your estate planning attorney should work together to make sure that what you want to happen with your assets will happen with your assets. When you, your financial advisor, and your estate planning attorney work proactively as a team, you can avoid problems that might otherwise arise. If you have questions or want to be sure your Will (or trust) and the beneficiary designations on your accounts won’t pose a problem for you or your family, contact us. We will work with you and your financial advisor so that your beneficiary structures won’t stir up any unnecessary controversy.