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Miami Estate Planning Law Blog

What the ..?! 50% of Americans with kids don't have a will p2

A recent poll unearthed a terrifying fact: Half of Americans with children do not have an estate plan. This is one of those findings that make us cringe -- especially when the respondents' top three reasons for not having a will or any plan at all are procrastination, not thinking they need a will and not believing it's really worth the money.

In our last post we talked about procrastination. Procrastination should be saved for things that don't matter. Ironing, sending out holiday cards, updating your FaceBook page -- the consequences aren't really dire in these cases. Holding off on writing a will or a health care directive can cost you and your family a lot of money and cause everyone a lot of pain. Our message about procrastination, then, is this: It's bad.

What the ..?! 50% of Americans with kids don't have a will

We slapped our foreheads in disbelief when we read the results of a recent survey. It seems that 50 percent of the survey respondents with children do not have a will. Among respondents age 55 to 64, the percent is a little better but still worrisome: Only 41 percent of this group, the population that is closest to retirement, has an estate plan. The respondents are from across the country; we like to think the people of Florida are a little better prepared, but we don't have the data to argue either way.

The respondents say they don't have an estate plan because they have been procrastinating, or they don't believe they need an estate plan, or they think it will cost too much. Those were the top three reasons, and we think it's once again time to challenge each of them.

Zsa Zsa Gabor: Independent conservator may solve family dispute

The daughter and ninth husband of Zsa Zsa Gabor appeared in probate court this week to continue an argument that's been going on for quite some time. In March, Gabor's daughter, Constance Francesca Hilton, asked to be appointed her mother's conservator; on Wednesday, she said she would be amenable to having the court appoint an independent conservator to manage the financial, health and other affairs of her 95-year-old mother.

Gabor's husband, Frédéric von Anhalt, has agreed only to try to resolve the matter outside of court. The parties told the court on Wednesday that they planned to meet with a retired probate judge next month to work out a settlement.

The three have not been one big, happy family for some time. In 2005, Gabor sued her daughter, accusing Hilton of stealing $2 million. The case was dismissed when Gabor failed to show for a hearing, but the animosity between Hilton and von Anhalt linger. He maintains that Hilton has tried to manipulate her mother and has been causing financial problems for the star. A doctor's report supports his claims that Gabor is well cared for by her husband and two aides.

Planning for the unusual: How much is that retirement in the window?

We recently came across an article that laid out some interesting and untraditional questions we should all ask ourselves as we plan for retirement. For most of us, planning for retirement goes hand-in-hand with estate planning. We ask ourselves a standard set of questions about affording retirement, about ensuring a loved one is taken care of  when we are gone, about end-of-life medical decisions and so on.

The author suggests we ask ourselves a few other questions, too. A good retirement and a solid estate plan consider even the unlikeliest contingencies.

Wanted: Elder care worker, no experience or training req'd

In spite of the efforts of the Florida Department of Elder Affairs, residents of the state may be surprised to know there may only be minimal, if any, training required to care for the elderly. Other states are even farther behind. This lack of qualification and monitoring can prove dangerous for family loved ones, and easy for people who prey on the elderly and vulnerable in our society. In addition, unless a complaint is filed, the business caring for the elderly person will not be regularly monitored.

According to the co-director of the Center of Excellence on Elder Abuse and Neglect, the base of the problem is the lack of a long-term care system throughout the United States. The state of Florida has struggled with the same problem for some time.

No, no, your other left brain, part 2

We are talking about brain science and difficult conversations. Some of the hardest conversations a family can have are about estate and end-of-life planning. And, while we urge everyone to have these conversations, we haven't really come up with a good way for them to broach the subject.

According to the author of an article in the Journal of Financial Planning, financial issues are among life's major stressors. When you add in the part about someone dying, the conversation gets even more stressful. This is where brain science and the difference between the right brain and left brain come in.

No, no, your other left brain

We often talk about talking. Talk to your parents. Talk to your kids. Talk to your attorney or financial advisor. Talk talk talk -- and, with apologies to Rogers and Hammerstein, it's not all happy talk. There just isn't a way around it when it comes to estate planning, though. Everything starts with a conversation.

Ahh, but how do you start that conversation? Do you open with a joke? A man walks into a bar without a healthcare directive.... Do you blurt, as a friend of ours did with her mother? Ma, you'd better write down now who gets the Encyclopedia Britannica when you die, because it'll get ugly if you don't. Do you wander in through the back door? You know, Aunt Gladys, I saw this great documentary the other day -- maybe you saw it, too? All about how to put real estate into a revocable trust and name a, like, loving relative as beneficiary?

The art of estate planning: Lifelong collecting comes at a price, part 3

We have been talking about art collecting. We're for it, as long as it meets your investment goals. Before the recession, real estate was the "sure thing" investment. Home values were like Weebles: They wobbled, but they didn't fall down. The thing about Weebles, though, is that they do fall down -- if you deflate them. And between the recession, subprime lending and, finally, the foreclosure disaster, the real estate bubble deflated and, boy, did it fall down.

Florida homeowners were among the hardest hit. All at once, it seemed, parents had nothing to will to their children. Or parents were depleting their savings -- the estates intended for their kids -- to bail out their distressed-homeowner children.

The art of estate planning: Lifelong collecting comes at a price, part 2

If you have seen the original "The In-Laws," with Peter Falk and Alan Arkin, you may remember the South American dictator's prized art collection. He showed off one piece after another, and Falk lavished praise on all of them. Arkin looked on, confused -- it was a collection of paintings on velvet. The tiger was the most impressive.

The collection may not have fetched much in the United States, but the true value of a collection is measured by the collector. And the IRS. Especially after the collector dies, and his heirs must decide what to do with the velvet Tiger, the velvet Elvis, the velvet Dolly Parton and so on.

The art of estate planning: Lifelong collecting comes at a price

The 1950s and 1960s were a great time to buy art. Painters were prolific, and as Americans earned more than their Depression-era parents had, they invested in art. It turns out that, in the wake of the recession, a work of art was a better investment than, say, a house. Not that there's anything wrong with that, but it does add a wrinkle to an estate plan.

Collecting is deliberate most of the time, a conscious effort to amass works that will appreciate over time. In other cases, it's accidental. A person purchase pieces he likes, and one day he realizes he has a bona fide collection.

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