Category: Estate Planning

Death certificates in Minnesota are easy to acquire and creates a security risk. Yes, just about anybody can obtain a copy of the certificate by mail, fax, and on-line. Unfortunately, this means bad guys can get them too.

A person can spend their whole live keeping their information private. Then, upon their death, that same person exposes their:

• Date of Birth,
• Social Security Number,
• Full Name,
• Mariage,
• Place of Birth,
• Residence,
• And list of other private information for for a small fee of $13.

---

Stolen Identities from Death Certificates

Of course, Minnesota goes out of their way to protect privacy. For example, there are a bunch of forms that need to be filled out in order to obtain a copy of the Death Certificate.

On the other hand, bad guys lie.

After A Loved One Dies

Because this issue keeps me up at night, I like to see spouses, adult personal representatives, or trustees immediately upon the death of their loved one to do the following:

• Give notice of death to the Social Security Administration,
• Provide notice of death to the IRS,
• Give notice of death to Minnesota’s Department of Revenue,
• If the loved one was a Veteran, give notice to the Veterans Administration, and
• Purchase online security protection.

Why So Fast?

Literally, giving notices and purchasing online security protection needs to happen days after a person dies. Here is why. As soon as an obituary is posted, the whole world will know about the death.

Yes, obituaries are wonderful tools to share stories and the like. But, obits and death certificates in Minnesota are the feeding ground for identity theft.

Change to an estate plan happens for many reasons. Many people wait until it is to late. Luckily, Minnesota laws support a change to an estate plan when the the grantor or testator is of a sound mind. Assuming this is true, there is no better time than the present.

That said, here are a few reasons why people make revisions to their estates:

• Births or Adoptions,
• Deaths,
• Divorces to Guardians or Personal Representatives,
• Marriages,
• New feelings towards Guardians, Trustees, and Personal Representatives,
• An increase in the composition of an estate or an expected inheritance,
• Updates to state residence, and
• Changes in Minnesota or Federal laws. 

When to Think about Change?

Look, many of us see a doctor once a year. Many of us see a dentist a couple times a year. Many of us meet with our accountant once per year. Well, revisiting our long term affairs requires our attention too.

The holiday season is a great time to reconnect with extended family. But, I like the idea of doing a deep dive on one’s estate plan around the same time we file our tax returns. For some this is far too late. For others, it is just right.

As a result, trust that distant voice. The right time is right now.

What does a $550 Million Dollar will look like? Well, we found out a short while ago when the will of Jeffrey Epstein was filed in the Superior Court in the United States Virgin Islands.

A few key points we can take away from this document:

• A last will and testament is a public document,
• The names of the people identified inside a will become public, and
• Picking an executor or personal representative without discussing it with them prior can have detrimental effects.

Luckily, the process you take can be different and even more importantly, better.

Should you update your estate?  Making an update to your estate probably ranks lower than buying backpacks and looking up your child’s school bus route, but it might be more important than other fall tasks.

Here are 3 reasons why I think September is a great month to update an estate.

Immunizations are Up to Date #3

Very likely, you took your child, young and old, for their pre-school physical.  Whether they received immunizations or a sign off to play sports, taking them to the doctor in August made sense.  But, did you think about the person who might be required to take your child to the doctor if you the parent were sick?

Yes, it is easy to point a finger at the other parent as a back-up.  But, I like the idea of thinking through who is third in command.  Sometimes, this is Grandma or Grandpa.  Other times, it is an Uncle or Aunt.  Either way, delegating partial parental authority is an issue for every estate plan.  Update your estate because your recent doctor office visit triggered your thought process.

MEA Weekend Is Out of Site #2

Before you get excited about a five-day weekend in October, consider this.  Hitting the road or skies is a common for many families with school aged children.  Between now and then, you will travel maybe 2,000 miles by car, have 45 family dinners, and engage 20 separate dates of planned activities.  Certainly, nothing will go wrong.

But, if something does indeed go wrong, updating your estate to include a guardian that you believe will be a better your previous choice is an important edit.

Update Your Estate Plan Because It is the Right Thing to Do #1

I wish I could take a softer position, but everywhere I look, people are dying.  Quite frankly, it has me second guessing nearly everything.  Maybe MEA is the perfect opportunity to make up for a lost family outing.  Or, should I focus on something else, like a home improvement project?

In my humble opinion, parents can do it all.  Edits or updates to an estate plan are not nearly as difficult as we think and likely more important than windows.  For this reason, making an update to your estate plan is the right thing to do, along with everything else you have planned.  Why?  Because Parents always seem to find a 💗way.

Thinking about taxes on a sunny summer day?  Me too! In fact, I wish more people were as proactive as yourself.

Today, my goal is two-fold:  reduce the risk of bad stuff happening to our estates and  reminding my readers that the they should be asking questions.  I say this because being able to recall issues to bring to the attention of an estate planning attorney or Certified Public Accountant might end up saving you or your family from a huge headache or a financial loss.

Before we start talking about taxes, consider this:  individuals and families are still trying to unpack the rules under the “Tax Cuts and Job Act“, which was the most recent tax bill passed by our Federal Government.  With the summer months, many have put this info aside.  Luckily, you are different.

Of the 2️⃣7️⃣5️⃣ amendments to the #Tax bill passed in December ⛄️, the rules impacting our estates 🏡 the most included: doubling ⬆️ the estate and gift 🎁 tax exemption and repealing contribution restrictions on Individual Retirement Accounts. 👍

Thus, I wanted to quickly highlight a handful of issues some of my Clients are seeing.

Tax Benefits For Families And Individuals

(Sec. 11021) This section temporarily increases the standard deduction to $24,000 for married individuals filing a joint return, to $18,000 for head-of-household filers, and to $12,000 for all other taxpayers. The amount of the standard deduction is indexed for inflation after 2018 using the chained CPI.

Taxes and Increases In Estate And Gift Taxes

(Sec. 11061) This section doubles the estate and gift tax exemption amount for decedents dying or gifts made after December 31, 2017, and before January 1, 2026, by increasing the basic exclusion amount from $5 million to $10 million. (Under current law, the amount is indexed for inflation occurring after 2011.)

Taxes and Retirement Plans

(Sec. 13611) This section repeals the rule that allows Individual Retirement Arrangement (IRA) contributions to one type of IRA (traditional or Roth) to be recharacterized as a contribution to the other type of IRA.

(Sec. 13612) This section increases the limit on accruals that is required for length of service award plans (LOSAPs) for bona fide volunteers to be exempt from treatment as a deferred compensation plan.

(Under current law, plans paying solely length of service awards to bona fide volunteers or their beneficiaries on the account of firefighting and prevention services, emergency medical services, and ambulance services performed by the volunteers are not treated as deferred compensation plans if they meet certain requirements. One of the requirements is a limit on the aggregate amount of length of service awards that may accrue with respect to any year of service for any bona fide volunteer.)

The bill modifies the limit on accruals to: (1) increase the limit from $3,000 to $6,000; and(2) provide for a cost-of-living adjustment to the limit after 2017.

Taxes on a Hot Summer Day

As you can see, taxes and a hot summer day go hand-in-hand.  If you disagree, then know this:  half the battle of finding tax opportunities is knowing which questions or issues to address with your personal advisor.

Problems with estates vary from garden variety to huge conflicts.  Even for a perfectly planned estate, a problem can arise.  In my experience, an estate plan generally fails because of poor communication or capacity.

Luckily, proactive families have an opportunity to reduce conflict. Consider this.

Problems with Estates: First Truth

The first truth is as follows.  Problems and risks can rarely be reduced to zero. 

When I think about an estate, I like the idea of finding people I trust to manage my affairs when I am in need.

Whether this includes family members or paid professionals, I want to make this easy for my family.

Second Truth of an Estate

Money and children can be a common stress, but people are the real problem.  Lying, cheating, and stealing are bad.  Greed, envy and pride are equally bad. 

I believe the strongest response to an irrational family member or friend or whomever is having a plan that was created as a plan of mercy.

Of course, this isn’t always possible, but it certainly helps.  Even more significant, problems with estates can be reduced with fancy legal clauses like eliminating a person from a plan if they decide to pursue a claim in bad faith or attaching attorney fees.  Perhaps punitive on their face, but effective.

Third Truth and Types of Issues

When I meet with a person or family, I like the idea of understanding the goal of seeking help or advisement from an attorney. 

During the course of the estate planning process, here are a few problems most folks want to avoid:

• Can my will or trust get contested?
• Was my trust properly funded?
• Were documents signed under duress or without a sound mind?
• Fiduciary conflicts and errors.
• Failed steps by a personal representative.
• Business or cabin assets fell apart.
• Beneficiaries were forgotten or omitted.
• An abuse of power exhibited by a family member.
• Ownership issues with a beneficiary form.
• Non-traditional family dynamics.
• And or other stresses/issues.

Again, every person and family has a different dynamic. The idea behind human planning is to reduce a conflict.

Brain injuries are scary for a lot of reasons, but this week especially.  Like you, I lost control of my emotions after I read a news article today about a newborn hit in the head by a softball.

Yesterday, I read about a soccer icon in his seventies who suffered a brain hemorrhage.  A week before that, I read bout a professional baseball player in his thirties who suffered a brain injury so severe, he was called a walking miracle.

As I reflect on these events, all I can think about is the impact a brain issue might have on my family too.

Even though it is my job to help people plan for the unexpected, these stories still hit home.  Whether these were random events or purposely presented by a higher power, it is a reminder how vulnerable we really are.

Advent is a special season for many Christian families.

As you prepare for your celebration, here are four (4) quick tips you can apply to your estate plan.

If you find these tips to be helpful during this holiday season, please share with your congregation.

Advent Tip #4: Connect the Past with the Present

Certainly, gathering for a celebration like Christmas is a fun event.  Your family’s legacy requires passing your knowledge and symbols onto the next generation.  For some, this includes pictures.  For others, this includes scrapbooks, heirlooms, and collections.

Thus, connect past advent seasons with the present by adding a special ornament to your Christmas tree.

Advent Tip #3: Recipes Are Underutilized

A lot of people cannot wait to ask me how to pass their mother’s wedding ring onto the next generation when Grandma’s famous pie crust made more people smile.

I agree, passing along jewelry is important.  But, it isn’t everything.  In my experience, tasting an old family recipe can have a greater impact on the family as a whole.

Thus, during this holiday season, I challenge you to track down an old family recipe and add it to your estate plan.

Advent Tip #2:  Share With Others

Giving our time can mean more than making a gift of cash.  Of course, you already know this, but when we are gone, time no longer matters.

Personally, I think sharing a percentage of our estate with a charitable group is far more advantageous than identifying a specific gift or dollar amount.  Here are a few other charitable examples.  Otherwise, every situation and person is different.

Thus, if you are accustomed to sharing with others, then perhaps now is a good time to add a sharing clause limited to a specific percentage to an estate plan.

Advent Tip #1:  Take Care of Yourself

Christmas is a wonderful time to give.  But, advent is a season of preparation too.  As you prepare, consider locking down a plan for yourself too.

Thus, if you need help with your plan, please contact me directly.