Question #1

The late soulstress reportedly wrote a will that excluded her ne’er-do-well ex-husband.

The late Amy Winehouse was many things to many folks – fabulous talent, an inspiration to Lady Gaga, an addict who couldn’t quite shed her demons all come to mind. Add to that list: wise estate planner.

Winehouse’s revised will reportedly prevents any of her fortune, estimated at $16 million and most assuredly growing, from going to her ex-husband, Blake Fielder-Civil, widely regarded as the person who introduced her to hard drugs. Instead, her millions will be divided among her father, Mitch; mother, Janis; and older brother, Alex.

 ”Let this be a lesson to both the famous and the obscure: A will is a good idea at any adult age,” Ron Dicker wrote at DailyFinance.

Fielder-Civil, now serving a sentence for burglary and possession of an imitation firearm, might have inherited everything had Winehouse not put a new will in place. Tim Worstall wrote at Forbes:

However, the one thing, under English law, that divorce does not do is undo the presumption that the natural inheritor is the spouse. In the absence of a will the surviving spouse will inherit at least the bulk of any estate.

Even in the presence of a will written pre-marriage which states otherwise the surviving spouse, or ex-spouse, will again be the natural inheritor.

How would it work in the United States? It varies from state to state, but generally if you die intestate, your estate will go to spouse and kids, or parents or siblings if you are single and don’t have children.

 Do you have a will? There’s a good possibility you don’t, even if you’re well past 27. “According to an AARP survey, more than one third of Americans over 50 lack a will, living trust, or power of attorney,” Kimberly Palmer wrote at U.S. News & World Report.

If you’re a parent of minor children, consider yourself negligent if you don’t have one. Liz Weston of MSN Money wrote: “No matter how icky you feel about planning for your own demise, you owe it to your kids to spare them the potentially ugly and drawn-out custody battle that could ensue if you don’t make these decisions now.”

Whether you are older than 27 or younger than 27, it may be worth meeting to discuss a will.  After all, it was a very smart move by Amy Winehouse and it could be equally beneficial to you. I’m available to schedule a meeting.

Fundamental Estate Planning

The fundamentals are the same across all sizes of estates.  A recent post by my estate planning colleague, Scott Makuakane, who practices in Hawaii reminded me once again that it is important to review the basics.  Below is Scott’s blog posting on the fundamentals.  I think you will find them a brief, but worthwhile, read.

 No one enjoys a conversation about death.  And, with the estate tax exemption now set at $5 million for an individual and $10 million for a couple, many people may believe they have no reason to consult an attorney about their estate planning.  But avoiding the topic of estate planning can mean unnecessary expense, confusion and conflict.

SmartBusiness recently highlighted the fundamentals of a “well-thought-out estate plan,” with topics that everyone should consider – whether prince or pauper.

• Why do you need an estate plan?  A comprehensive estate plan ensures that your estate will distributed according to your wishes, provides protection for yourself in the event of your own disability, and allows you to plan for minor children, pets, and charitable causes.  You can also make sure that the assets you leave behind will be there for your intended beneficiaries – and not their creditors or ex-spouses.
• Can I write my own will?  You certainly can, and there are many online sites to help you do so! However, remember that you get what you pay for.  Improperly drafted or last-minute, hand-written wills frequently are contested and invalidated in court.  If you don’t know what you’re doing, the outcome could be much different than what you expect.
• What should every estate plan have?  SmartBusiness recommends two powers of attorney and a living will.  That’s not a bad start, but I would expand the list to include a will, powers of attorney for financial affairs and for health care, and an authorization to your physician to share your health-care information with your health-care agent.
• What about trusts?  Many people choose to create trusts, not only to reduce estate taxes, but also to help their heirs avoid probate.  Trusts also can help shield assets from loss to due to unforeseen circumstances, such as the bankruptcy, divorce, or lawsuits of your heirs.
• What mistakes do people tend to make in estate planning?  The writer points out two common mistakes: failure to plan for their personal effects, and failure to review and update their plans over time.  Reviewing and updating your estate plan is particularly important in light of the frequent changes that have characterized our estate tax law of late.  Although the estate tax “coupon” (the amount you can pass estate tax-free) is $5 million for the next two years, the coupon is set to go down to $1 million in 2013, and the estate tax rates are set to go from 35% to 55% at that time.  Another mistake that we see is failure to implement an estate plan by making sure all assets are properly titled.  Many people create trusts but then do not make sure that title to their assets is transferred into their trusts.

If you have questions, let’s get together and get them answered.  My goal is to provide you with helpful information for creating, implementing, and updating your estate plan to serve your wishes.  And our mutual goal will be creating an estate plan that will succeed when it is called upon to take you and your loved ones through life’s inevitable transitions.

Another subject that I wanted to bring to your attention is a recently published book recommended by one of my colleagues.  It helps with the starting points for getting and keeping good relationships.  My goal as a legal counsel is to connect as well as to deliver good legal counsel.  I thought you would find these “icebreakers” to be helpful suggestions.

Debra Fine, author of The Fine Art of Small Talk  offers a lot of helpful advice on networking and connecting with people while networking.  In her book she includes a list of her top 10 icebreakers. She suggests using them at any occasion where you have few established relationships.  We’ve all been at those types of events – school meetings, business events, fundraisers, cocktail parties, dinners, and conferences/conventions where you need to start a conversation with people you don’t know well or those “strangers” you would like to meet.

Top Ten Icebreakers

1.            What is your connection to this event?

2.            What keeps you busy outside of work?

3.            Tell me about the organizations you are involved with.

4.            How did you come up with this idea?

5.            What got you interested in  … ?

6.            What do you attribute your success to?

7.            Describe some of the challenges of your profession.

8.            Describe your most important work experience ….

9.            Bring me up to date.

10.         Tell me about your family.

According to Fine, the theme to these ten icebreakers is that they are personal, but not too personal. “Your goal is to build a business relationship,” she says, “while still getting to know more about a customer or potential customer. If you are talking to an existing customer, they probably already know you are good at what you do, so you just want them to see you on a more human level.” Thinking about this –when you establish that comfortable connection on the human level, they are more likely to refer you to a friend or associate. 

The other thing to note about these icebreaker guidelines is that they give the new person control to decide just how much information they are willing to share and where they want to set the parameters of the conversation.  On your part,  your job is to help the other person feel comfortable with you as a person.  You never want to overwhelm them with complex topics.  You never want to slip into insider jargon.  And you never want to put your audience on the spot regarding religion or politics.

Many of our friends and acquaintances could be more effective using these 10 icebreakers, so I encourage you to forward this link to them.  Let’s all communicate more effectively.  And you are invited to contact me, so we can get better acquainted.