Estate Planning Practice Blog

Burial at Sea.

In a Advance Health Care Directive, you can indicate your wishes for funeral services and whether you wish to be buried or cremated. Many clients choose to be cremated with their ashes scattered at sea.

Another option is to have funeral services also at sea. In Southern California, this is possible as many charter boat companies will arrange for this on one of their boats. Dana Wharf at Dana Point, California, has packages for burials at sea.

Another popular service for cremation at sea is the Neptune Society. There are many Neptune Societies so be sure the one you contact is located with your county or state.

California has laws regulating burials at sea and permits are required. For more information about California's laws and regulations regarding funeral and cemeteries and everything else in between, check out the consumer guide from the Cemetery and Funeral Bureau website.

Those Fill In The Blanks -- A through N Isn't Enough.

Many notaries and office supply stores have those fill in the blank powers of attorney forms for you to complete without the advice of an attorney.  Here is a sample of the form that allows you check off letters A through N.

Sure, the form is only 2 pages long with information on both sides of the page and contains the standard powers -- banking, taxes, real property, etc.

But there are some powers that must be expressly stated or completely spelled out to be valid. And these standard fill in the blank forms either don't offer the choice or have room to completely spell out the additional powers that the California Probate Code requires to be completely spelled out. In these instances, checking the letter Q will not work.

One such power that is often omitted in a fill in the blank power of attorney, but can become very important is the power to create, modify or revoke a trust. See California Probate Code Section 4264. Further, Section 4264 lists other powers that must be specially enumerated or "expressly authorized" to be valid in a power of attorney.

For this reason, it is wise to have your power of attorney drafted by an estate planning attorney that can prepare a "long form" power of attorney to include specially enumerated powers important to make your estate plan complete.

Friday Funny From Judge Judy.

From a page a day joke calendar for Lawyers:

July 13, 2007

"Do you know when a gift becomes a loan? When the relationship is over. Have you ever heard of that, sir? Well, neither have I. I'm going to have it put on coffee mugs."

                                                --- Judge Judy

Is Probate Required When There is a Just a House?

This probate question was posted today on a listserv I belong to.  It is a good question and one that is asked by many people.

"If a person dies without a will and has only her adult children as survivors, must those children pay the parent's creditors?  The estate has not been probated because the only asset was the mother's house, which all of the children agreed should go to one sibling who lived with their mother in the house and helped take care of things. Does that child now have to pay off the mother's credit cards?  Also, are they required to probate the estate?"

The answer is straightforward. Yes, probate must be opened.

If the house is in the name of the mother who died then probate must be opened. None of her children can transfer title of an asset that they do not own. Probate is the legal process of determining the chain of title for an asset belonging to someone who has died.

And yes, the creditors need to be paid. This is not an insolvent estate. The house is ostensibly worth hundreds of thousands of dollars in California. There should be enough equity even with a mortgage on the property to pay off the creditors. It may mean selling the home though.

Probate may be opened by any of the children. If a child doesn't open probate in a timely fashion, a creditor may open probate themselves.

If the kids want to give their share of the house to one sibling, they can either through disclaimer or assignment. You should consult with an attorney to determine how to handle this as there are many tax implications and other implications involved in this kind of decision making to give up an inheritance.

One way to avoid probate in this case was if the mother had a Living Trust. It always comes back to a Living Trust sometimes. In California, it is often the best thing to do when it involves your real estate. Talk to your estate planning attorney about these kinds of things.

Leave a Lasting Impression.

One of the facets of estate planning is the opportunity to make a difference in the lives of your loved ones and support the causes you most care about. You may also have the ability to leave a legacy after you pass away.

Some things to think about when it comes to legacy planning:

1.     Think about charities and causes that are important to you. Describe which ones you would like to support with financial resources before or after you pass away.

2.     How would you like to be remembered by your family and friends?

3.     Personally imagine some of the ways you can leave a lasting impression. Write down your thoughts.

4.     Suppose you had $1 million to give upon your death, how would you allocate this money?

Your thoughts, answers and questions would be the basis of a good discussion with your estate planning attorney to see how an effective estate plan can achieve your objectives and leave a lasting impression.

Blog Featured by a Marketing Coach.

This blog was featured by Susan Cartier Liebel, a marketing coach for lawyers, as one of many blogs that work for those that are solo attorneys or think like solos for their firm. The blogs are called practice area blogs because they provide a distinct service to their clients, readers and the blogosphere as a whole. This blog is proud to be listed! Read Ms. Liebel's post here.

One Year Anniversary -- Don't Buy More Sunscreen.

Last year I posted about the shocking simultaneous deaths of young parents of three young boys. They died in a freak car accident in Arizona. The one year anniversary of their passing is coming up later this month.

I am constantly reminded by them whenever I see young families in my pool or at another person's pool. The pool is the connection to how I met the loving couple.

I always wonder silently if Mom and Dad have their estate plan in place. It avoids all sorts of hassles to have guardians nominated for your minor children, to have your home placed in a Living Trust and to make your wishes known in a medical directive.

Two weekends ago, our family was invited to join a summer BBQ hosted by a local networking group. We went and joined many other professionals that I know and their families. Part of the networking group concept is to help each other get more business. So in turn everyone learns more about everyone else's business.

A young couple with two gorgeous children were there. I knew their father well as he was part of the networking group. He inquired about Living Trusts with me time and time again for his family, but never followed up. He kept telling me that he could not afford my fee, which I felt odd as he also confided thet he owned multiple properties. Maybe he will take the DIY approach and will never tell me.  Though in my heart of hearts, I know that this is not likely. But as we swam with the kids, all I kept thinking they have life jackets, floaties and sunscreen, but do you really have in place the very things that will truly protect them if something happens to Mom and Dad?

Maybe the next purchase you buy for your kids shouldn't be a bike helmet, more sunscreen, but instead spend the money in an investment that will protect your family in case something happens to you. 

Besides if you work with a reputable attorney, the fee for estate planning will be modest in comparison to the alternative.

Leaving Written Instructions for End-of-Life.

Many states are enacting right-to-live legislation. Meaning that the default choice for end-of-life wishes in those states will be to be kept alive at all costs including being on a respirator, receiving nutrition and hydration for example.

I have no opinion on this, but I can tell you that if this does not comport with your wishes for your end-of-life choices... then having an Advance Health Care Directive or other document valid in your state is important.

You have the right to make your own medical decisions even if you cannot physically make them. That's what an Advance Health Care Directive does -- it allows you to appoint an agent to make decisions for you. You also indicate what your wishes are for end-of-life. This document can also be customized with your additional wishes whatever they may be.

It's all about your choice and making them known.