Estate Planning & Elder Law Hour - 6.2.18

Saturday, June 2nd

I believe that Estate Planning is here to give you control over who is in charge of taking care of you and control over how you take care of your family after you are gone.  Without proper planning you can lose control and your family will not be able to take care of you as easily, or you will not leave your estate for the benefit of your family according to your wishes.

I had an experience in my own family where during a crisis, we lost control over where my grandmother was going to receive care.  This caused my grandparents in their last years to be separated by a long distance after more than 60 years of marriage.  I believe that my grandparents have drawn me into the field of estate planning and elder law to affect the lives of my clients so that they can have a different experience at the end of their lives than my grandparents did.

I place a special emphasis on protecting the assets of aging loved ones and educating families about complicated laws and the best options available to them.  I am passionate about helping others preserve their money, avoid probate, and achieve lifetime estate planning goals. 

I started my post law school career working for a large financial company helping financial planners with advanced estate planning and tax planning. I utilize this financial services experience to bring a different perspective to my estate planning and elder law clients.  My number one priority is to educate and empower clients to make the best decision for them and their family; there is no one way to do things.  I strive to give clients options and let them choose which direction they want to go.  I like to say, “If you don’t ask yourself the right questions, you never get the right answer for you and your family.”
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Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This is the estate planning an elder lauer with skip Reynolds we dive into wills trusts powers of attorney and so much more. Now here's your host skip Reynolds. Welcome everybody to be state planning an elder -- hour with me skip Reynolds thanks so much for joining me this Saturday afternoon. Hopefully having a splendid days so far enough hopefully we'll continue that way by listening to my show here today. For those of you listen all the time you've heard this before but for those he might be here meet for the very first time in your car in your garage or wherever you might be. The reason that I do view Steve planning an elder law power is because what I found in my office is so many people. Make decisions. Based upon things they've heard from their neighbor their friend their co worker their family. Whoever it might be in their life and they heard this and they've heard that may put all of these scenes together into what I call the ball a fact and they make decisions based upon what they think are the facts. But unfortunately like so many other things in life. Sometimes we put to have facts together and we have a little bit of what I call the telephone effect if you remember. That team from when you're in kindergarten maybe you played it where you sat in a big circle. And it started out I have a dog and it goes all the way around. When it comes back around to the last person in it dust person stands up and says I have a dog that jumps over a ten foot fence backwards. Not even bill whole story that had been told by the first person and things changed. And unfortunately we make decisions upon these hearsay events that we here where we have a half fact and a half actually put them together and say this is the fact. And what happens in my office and unfortunately too often. I can't fix the problem but people walk in my office. And they've made decisions they made. Actions with terrorist states wanting to achieve some results. Not understanding that there might be by products and there might be things wrong with that result that they're looking for or form from the action that they made looking for that result. And what ends up happening is we can't fix their problem and now it ends up being the bigger problem that it would have been had they just done nothing. So many times this happens in particular round probate. So many times this happens around I wanna protect my assets from the nursing home in Medicaid. And we make all these decisions and then it blows up in our face or doesn't work out quite the way we had planned. And now we're stuck in a totally different scenario where. We may or may not be able to fix that problem so my goal with this show is to give view. As Paul Harvey used to say. The rest of the story. So that you can make better decisions for you and your family says that they have more control if something happens to you while you're still alive. And you have more control and more protections or. Have a better path for making your state float the way you want after you pass away. Somebody told me. Little bit over a year ago great analogy. When you go on vacation somewhere warm retake a sweater Earl light switch or light jacket white you do it you do it because. Of the just in case is sect cloudy day or the wind is blowing off this the ocean and it's cool or in the air conditioning is too high or whatever it might be but. State planning is that just in case is well. Because nobody ever wakes up and says well today's my data have that that car accident night on I 25 and be injured for the rest of my life or die. Or today's my day to have a heart attack or stroke or whatever it might be no one lives that way. And so we must plan for the just in case it's that we have more controls our family has more control. That's why I do this show so that you don't make better choices so you have more control at the time that you want to have that control. All right so enough for my rant about why do this show let's talk about what I'm gonna talk about today so. So many people when they come to my public workshops and we'll talk about windows upcoming ones are here in June. People to come no I workshops coming in my office so many of them say that they want to you have really. And a simple plan and simple this is okay. But let's move but I wanna diving into what is simple but I also wanna die in CU. You know what you need to do to make sure that you have it is C plan that works. And and and it kind of incher weave the two different goals for people as well lists steps you need to be making to make your plan work. So the three steps to having a plan in place is one you need to have something in writing. Meaning you need a will Unita a power of attorney for financial and medical you need a living will he may or may not need to trust I don't know. We need something in writing. But once you have something in writing that doesn't mean that it's all set and ready to go because even in the most simple estate plans. The next step is integrating your assets and your life into that plan what do I mean by that. What I mean is you've got accounts bank accounts 401 k.s IRAs Roth IRAs whatever it might be. Male life insurance he may have brokerage accounts that are non IRA you may have individual stocks or bonds. All of those things need to have. Hat at a minimum even in the simplest they've planned a beneficiary designation associated. And when I talk about that I'm talking about a primary. He ended a backup. Or contingent beneficiary. If possible. And so many people come in my office only have the primary being their spouses especially if they're married. They may or may not and have their kids and a lot of say well I think I have my kids well if you think. And you are sure. In my opinion you need to go in check need to make sure you dot the I's and cross the t.s but so many people don't keep consistent with that. And they don't integrate their assets or they do it initially after the do their state plan but then as we all do. We put it in the safe deposit box and put it in a safer wherever you store it. And then all of a sudden. It's ten years fifteen years down the road and everything's out of whack because now you got different bank accounts different investment accounts different investment advisors. You house all of these different things and the plan is kind of fallen out of whack. Because you have a dotted the I's and cross the t.s or at least you're not sure whether it's all right or not. And then once you integrate those assets you must maintain that. For the rest of your life. Meeting every time there's a change in accounts every time he knew it from Schwab and fidelity or to Scott trade or wherever you move your money. First bank to US bank you must follow the same pattern. And it's really easy to just get going on what we're doing and not be thinking about that and away we go and now it's not maintain. And if you don't do all three of those things there is a Washington State University study a couple years back. And what it said is that out of 100 estate plans nine. That means only four out of a hundred work out exactly the way that they had planned it. And it's because people do an okay job. 50% of us making a plan in place but we do a terrible job of integrating in maintaining that integration into our state plan. Even if all you're doing is beneficiary designations. And a simple will. We still mess it up so my idealistic hope you not mess things up. But I wanna talk about. I think them that links today. What a lot of people see as goals for their state plan really there's three main goals that people say to me that they want their state plan. Number one. They want to you and this is in no particular order. One they wanna stay in control meaning they want to control their assets they don't want anybody else to be controlling those assets until they give over control. Meaning we are all control freaks at our heart especially with our money right it's why we choose not to move our money to this investment advisor because. We don't trust them. Or it's because why we have banking accounts in five different banks because we want to FDIC ensure our money. We want to be gained control of our money and we do all of these actions disdain control. And then the second one that I hear so often is I don't wanna become a burden on my loved ones the unfortunate piece of this one is a lot of people do. And they don't even realize that they're doing it. So for example I was talking with client the other day. And he was talking about how he's retired in and sued his wife is going to retire but now his mother is having all kinds of different. Mental health issues as it pertains to you just old age may be a little bit of dementia not sure but she. She is essentially. 100% dependent on him. And he was going to be out in a way from his cellphone for the day eighty let her know. And she didn't understand that he was gonna be back she misunderstood how everything was gonna work is so she thought he was out of town. Completely meaning like gone. And the problem for him is not that she thought that it's is that. What if he didn't wanna be gone what is he worked his whole life for he worked his whole life for so he would retire and can go and travel and do things it that he did. You know set as a bucket list item. But now. And and I hear this all the time but now he's a little bit tied down. Because he feels is that he needs to take care of mom and mom doesn't. Want to move from our house which is understandable. But now because mom is starting to not understand Danes in in May be this interpret beings and isn't so sharp with third with her. Bank accounts and paying your bills and everything else now. He had to some degree. Is a little bit tied down and can't just go and do but she doesn't want to moving into an independent living. Or she's not quite ready for assisted I think but she's not quite ready for. Moving now. But yet he can't move on with this like because she doesn't wanna move on with purse. And on unintentionally. She has become somewhat of a burden on his life and I hear these have to stories all the time. So you know I kid that we wanna stay at home. But some times. Our choices as we get older actually do become burdensome on our family even when we're not trying to be burdensome on them. And so take that into account. As you're looking at your life and you're looking at that things that you're doing or not doing or not people to do or things that you're asking your children to do for you. Nor is this a burden on their life. His most of us don't wanna be that burned but so many times we lost in the shuffle and we don't take that. 30000 foot view we don't step back we don't look at the situation. From an outsider's perspective. Because we're so involved in it and we actually have become that burden. On our loved ones that we were not wanting to be. Although I did have one person who came to one of my workshops who said that she for sure was going to be a burden on her daughter and she wanted to be benched her daughter voted to work. I thought it was a little funny she she was I think joking to some degree but. It. You know most of us don't have that feeling. And then the third goal that most people have is they want it to be simple. And I think there's a lot of different definitions of what is simple. In different people's eyes so often times. It what I found is simple means I understand it. I understand how things are going to flow I understand the language in the documents to some degree etc. That. As long as I understand it therefore it must be simple because I'm not a lawyer I don't wanna be an attorney. And I understand it or. My family understands. It because maybe they're not super sophisticated with money or maybe they are. But I wanna make sure that they understand it you know what to do and then it just kind of passes downhill. What I mean by that is when I die goes my spouse upon married a thumb. Now married or if both of us are gone and we have children it goes to our children. If we don't have children that it goes to whomever else we want whether it's people charities etc. And it just goes here you go plop right in their lap. And today and that's a simple plan because you know hey I gave it TU you have got to go go ahead do it you want with it. And I and I understand that and in for many people that works just fine. The other thing is sometimes it means that. I don't want it to deal lengthy document because then it becomes more complex to me you know the longer the document the more complex it may be. And I get that it is potentially more complex but sometimes. Just because it's a longer documentary different path. Doesn't mean that it's actually got much more complex and sometimes it can actually solve problems that come with the two simple. You know it's real simple to just say OK when I die give it to my kids that's simple. But sometimes you have to take into account other factors such as what's going on in their lives or. Other kinds of things happening for them. Or are there differences between the beneficiaries. That your leaving things to you. And depending on how you leave it near me not cause different problems and I'll talk about that here of coming in the next segment. But I before I go to the next segment on a make a point and then onion and expand upon that point so so many people. Do. Not want to pay. Worn estate plan because we've been told for years and years and years you've got to have a power of attorney got to have a will you gotta have this you gotta have that. And all we know is that we've got to have these pieces of paper the problem with that thought process is that. If we go out and we find these pieces of paper. On the Internet we can find him maybe even for free right. We can find a power returning or something this says it's a power of attorney for financial or for medical. Or something that says it's a last will shoot you can go to office Max or Office Depot and buy these things. 451015. Dollars. And fill in the blanks. It's a so many of us see it is just pieces of paper. And we don't seated they are going to potentially have enormous power if we don't understand what we're doing. Inside of those four corners of that piece of paper. We may or may not be giving everything that we want to our family members to take care of us while were alive and or take care of them after work on. In the fashion that we actually intended. But it was simple I went to Office Depot where I went to legal zoom are went to the Internet and found this free form. Boy that was simple I signed it boom now my son can take care of me. Great. But do you know what's inside of it do you know what power you gave away. Do you know win you give that power away or by the way did you take into account some other factors. So when I come back on and keep continuing on that point. Is that you can find these scenes all over the place but I'm gonna give me some examples of people that have come into my office. That had issues with their documents and had zero clue that they had those issues because they'd done it themselves. And sometimes. Mrs. Skinner seemed not to say sometimes just because you wink to an attorney doesn't mean you got the right thing. Because there's a lot of attorneys say oh yeah I can drop your power of attorney. And they do it and insult me is wrong with it because it's not near practice area they just throw on top and get paid a little bit of extra money. So I come back and continue talking about that. But I do want to remind anybody if you missed any part of today's show or if you and if you want it you find this show you can go to crews in 1430 website. You can go to shows click on the weekend shows and go to the estate planning an elder law hour and you could find the podcast right there. In addition to that you can go to my website at WWW. Skipped ten law dot com that is SK IP. TO and law dot com. And you can find the podcast of this show and past shows all the short description of what each show is about if you want to go back. And listen to you specific shows or specific topic areas that I might be talking about. Also wanna remind you I've got to do. Free public workshops this month. If you come to one of these workshops any wanna sit down with me insert a new plan. Or updating an old plan or reviewing your plan to make sure that you're all sets. You're welcome to come to these in if you sign up at the workshop to come and meet with me I will give you an hour and a half my time. Or free. And will go through we'll figure out what is the right path for you and for your family. But those workshops are coming up Thursday June the seventh so this coming Thursday. It's at the cobol library in Greenwood Village from ten to 12 PM. 10 AM to 12 PM he won a sign up in call my office at 720. Or 402774. Or you can go to my website skipped in law dot com click on workshops and you can sign up there. I've also got another one in June on Thursday the 21. This one is at the Morningstar senior living at ridge ski. That is in the lone tree area right across from New York senator in this one is from 132 at 3:30 PM. So if you wanna sign up for either those you go to my web insider call my office we'd love to see there. Billion on a whole bunch of other topics in addition to what I'm talking about on the show here. So when I come back and and continue the discussion talking about. Simple and how some some simple can blow up in our face. This is the estate planning an elder lauer with skip Reynolds. We dive into wills trusts powers of attorney and so much more now here's your host skip Reynolds. Welcome back everybody to the estate planning an elder law our thanks so much for joining me this Saturday afternoon. Think so much hopefully you're having a great day so far. For those of you who missed the first segment of the show this is the second segment amid talking about what so many people want in their state plan. And it talked about how they wanna stay in control they want it to not be burdensome on their loved ones and they also want it to be simple. So I started into the simple but I'm gonna continue launch in my. I'll call it my rants about being simple so. A lot of people see simple as they understand it it's not too many pages it's not funny lawyer language. But it also is sometimes about I don't wanna pay a lot or I don't see a lot of value I just knowing he'd get these pieces of paper because I've been told. That I got to have these pieces of paper. And so it leads people to do we need themselves. So what is to be. Yourself mean well. They can go out there and they can find it on the Eagles him or they can find something on the Internet this says general power of attorney. Or medical power of attorney. Or some of our health care providers handouts something called the five wishes. Here you go here's this power of attorney and living will that you know you need and we wanna have in our in our files so here you go. I don't know it's kind of like me handing out a pill you know hey you got knee pain think this bill get ready your knee pain. I'm not sure asking interactive anything else but it purity and EPA so take it. It's kind of like that when they hand these things out so. Sometimes what happens is we do it ourselves we don't understand all of it elements that might be necessary in that document or we don't understand what we. Needed to have heard don't need to have. Or what we just gave way and win we gave it away. So. The question that I ask people is if you do yourself are you comfortable. Knowing the you may or may not be missing something because you know like personally I don't know much about medicine Seoul. I don't know what the difference is I watch these commercials. These days and you talk about here take this medicine you'll get rid of your plaque psoriasis or by the way your eyes may lead. Or you're gonna have you know continue this other problems but hey your skin is gonna look better sometimes and we don't know everything about it. We may be missing something and we are knowing that we're missing some that we just hey we needed this piece of paper have been told by everybody I needed. So under on one occasion this is a few years back had a couple come in they had to come to one of my workshops. And I till talked to them. In the workshop I talked about all these resources out there like legal zoom etc. and they gun illegals M and they when they did their own set of documents. And then they came in any wanted to meet you review them and so I took a quick look at them for them in the very first thing that jumped off the page to me. Is that they had gone to legal zoom they paid money for legal zoom. Legal zoom as it says on its commercials does not give legal advice it's doing yourself for. They have not named each other on any of their documents their powers of attorney for financial or medical or their last will. Neither one of them this married couple I need each other as the primary person in charge of those things. So he got sick and had a stroke she was not his primary power of attorney. It was they're kids. But they didn't even realize it they had messed it up until I pointed it out to them a message did you mean to do it this way in the all what got you didn't I didn't mean to do it that way. But he didn't know what did you know had they not come in in seen the and had any review them for them they would have had no idea until when something happened and then all this and boom now we've got a whole brand new problem. And they can't fix the problem potentially. Also. Lot of times when we are. Need mean these things out and we're going online to these resource I've seen this I've seen this even with attorneys that have drafted things for. People is in particular on powers of attorney and I see it it's feels like the financial power tourney is the number one offender. And the financial power of attorney is a very important document because it's who can pay your bills and who can make financial decisions if you're not capable right. OK so. So often I see on these forms that come through my office when people come in your view their documents. They only have one person named they only have their spouses they're married or they only have one child named on that document. Well for those of us that are married I don't know about you but my life and I drive in the car quite frequently together especially on the weekends. Oh what was to happen if we're in a bad car accident so they have visible this same time. May we don't die but we're both not really capable of running our fares for a period of time. Who's gonna pick it up await the power of attorney will open oh wait I did it myself. Or I did it without good direction. Are we to somebody who just got some form instead they can take my money called an attorney and they don't name anybody extra. The problem with that is okay now we're both incapacitated now who's my power of attorney. Open I don't know there's nobody there. If we don't know who it is then we have to go into the courtroom which is the place you were trying to avoid by doing that document in the first place. We didn't understand. May be that he needed to name extra people or maybe the form that he polled didn't. Asked YouTube. And if you didn't nasty to you don't included in you don't fill in the blank right there isn't a blank to be filled then. Often times even if he knew in the back your mind you're not thinking other right then or you're not used to thinking about it you don't add anybody extra. And then it causes a whole new set of problems the other thing is I see people want him put their kids as joint agents. So we want there. We want there. Son and daughter to be their joint power of attorney. So the positives of a joint power of attorney are there working together the negatives of the joint power of attorney is they're not working together. Eating that ever happens folks darn right it happens every single day we've got disagreements. Right. We have different philosophies of what we should be doing with our money our health care decisions. Or different interpretations of what mom or dad wanted different interpretations of what we think is in mom or dad's best interest right. That stuff happens every single day. The other thing that I've seen is sometimes and we need those joining agents did we empowered. Them to sign. I'm in particular financial documents with only one signature. As I have problems with that with financial institutions where they say we won't accept that power of attorney. Because we can't track whether both of them signed every single check we can't track it and so therefore. Since we can't track you were deciding who accepted because we want none of the liability issues now it's us lawyers kidney in your life again. But it is not accepted. And you can't sign a new one where we act. Oh boy you know were in a pickle right that we are trying to avoid by doing this document in by naming two people potentially. We could've caused new problems. The other thing is. Sometimes when we do it ourselves and I see this a lot when kids are starting to be caregivers from armored down where. We go online and we download reform and we take mom or dad to the bank in magically this form gets signed at the bank with a notary. Now is nothing on the bank but it's on to people. I've had numerous different clients command that have complained that a sibling took mom or took my dad. To the bank and had them sign a document and didn't really explain to mom or dad what was in that document or what mom and dad were signing away. And often times they're signing away their right to be 100% in control of their assets so that the kid can take over and sometimes this is a fine thing. But you can bet you that there are circumstances where one kids trying to angle to be in control. And he's doing things behind the back of their siblings so that they can get debt control. And mom or dad is going along with it because maybe there influencing mom dad. Or may be there any kid did is so controlling a mom or dad is afraid of them have had that happen. We're at some people exceeding even become clients because they're daughters said that she can do reform instead of using attorney and a different state. But she was so calm endearing. Day she told them she can do it herself for them and they shouldn't pay an attorney for all by the way this she better be the one in charge. Not for siblings even though they admitted to me in my office that they would rather choose a different sue them because that's that we would actually listen to them. But this other. Daughter was so in command and so. So overwhelming with her personality that they were almost scared did not name her. Which is you'll scary to me to be honest I decease she's going to take advantage of them but. It seems like she could if she wanted to. The other thing I've seen is people don't sign their documents right. So. I'll give you a couple of examples I had a couple coming here just recently actually and they had. Gotten the five wishes from their health care provider and they had filled the whole thing now but they forgot to sign it. Indeed so was all filled out but it wasn't signed and dated. And their question to me was well would be accepted if something would have happened and it being answered the best answer I can give is probably not. Now may show your intentions. But the fact you didn't make it legal means that it's not legal now they may still go along with that I can't tell you for certain. But I can tell you that it's likely that they won't. And if they decide not to go along with it. Doubts is if you didn't have that power of attorney now we're heading into the courtroom said nothing guardianship. All because you thought you filled it out rider you got distracted or. Looks we forgot to get a notary or witness or witnesses. Or oh what if wanted to win this is is somebody is inside of the document as a decision maker. Now that causes a potential conflict of interest for them being a witness but we didn't know the difference is they were there so we had to be a witness. So we make unintentional mistakes. Had another 18 years ago. Where they had done these will say god among line ladies didn't wanna pay a whole lot. Instead they got not a will online and then in the Whitney's signature line. Instead of having somebody be a witness they wrote and aid meaning not applicable. And they had a notary. Now there's a question of whether it would have been accepted or not as an as they're showing of their intention. Since it was signed in at least know arise but it definitely wasn't done the way I would prefer Dunn to make sure that there's no question. And they had no idea he had no idea that they had been going on for eight years but it will that may or may not work they thought for sure this scene was rock solid. The other thing that I see is is in this happened recently but somebody that was meeting with not with this particular person but with his father. It is father passed away and he had a will and he had all these things inside of his will. I'm about this monies to go here in this monies to go there and all these different directions of what to do with his assets. But when he didn't understand. Is he didn't understand the interaction of his will. With accounts that have beneficiary designations. So for example in this case. He had a life insurance policy that he had never changed the beneficiary on. And he'd been divorced for years. But he never changed the beneficiary to include who we wanted but he had written in his will wary won this darn account to go. But here's the problem. By not changing the beneficiary. To do way he had it in his will because he thought his will was the overruling document that he would rule all. His misunderstanding. Ended up sending the life insurance at his debt to the wrong person. At least not who we intended at least evidenced by his will and here's the problem. Once it once you die you can't fix that problem and the person that's named in the will as your recourse. Bit that precedent is a mile long. A beneficiary suing the states trying to get out beneficiary designations such as what I just described. And you lose in the lose in the lose in the loose. And so his misunderstanding of how his estate plan worked even though we had a will and the will was valid it was pretty clear. He didn't understand how to integrate those assets into the will to make it happen the way he wanted. And it blew up in his face in his estate plan didn't work. So going back to that statistic I talked about earlier out of a hundred estate plans 96 don't work out the way we want. His was one of those 96. Because he misunderstood how everything worked because he just wanted it to be simple so you just did it all himself. How another scenario here this past year. Where it was handwritten will in Colorado we do accept handwritten wells K that's great we we accept these handwritten wills. But here's the problem. He didn't make it super clear on exactly who is to be the executor of his state he said. In his will who is to get things and he had another writing that was an email saying hey I want my buddy to be the executor of the estate. But it wasn't real formal. And it cost a little bit of an issue with this is state because. All the sudden mom and dad start popping up saying well we should be a part of it or was this a valid will or blah blah blah. And it caused some potential. Problems now. It ended up. Not causing. That big of a problem but I can tell you right now it did cause. Consternation on a part of the person that was the main beneficiary of the will. And who turned out to be the person named as a personal representative because she had priority to be so. But it did cause her some consternation and and and morning to you know if she really can do these scenes are what was their recourse. Because they were threatening. Because he wanted to try to get some money right. Greed comes out and it was because he was hand written. I had had a really funny one here the last year where there was a will that was written in. Henry at will and he goes on and on and on talking about how he doesn't want to pay darn sent to all of his credit card companies. But funny is it may be right before he passed away guess what he did. It paid off all this credit card bills almost liking if forgotten that he had written this really funny will. About all of these things. All right so. The next piece is that there may be multiple beneficiaries. So when I come back I wanna talk about issues that happen with multiple beneficiaries. Sick killer with a are real estate if we followed this Colorado law that allows this to try to avoid probate with a realistic. So when I come back and talk about that but I would do wanna remind you all if you missed any of the showed today. This is a second saying if you missed any of these segments of the show you could find an increase of 1430 website. Where you find it on my website skipped in law dot com by clicking on blogs you'll see it right there under radio shows. Also wanna remind you that I do you have to workshops coming up. In the month of June 1 is this coming week this Thursday June the seventh to set the cobol library from 10 AM to noon. He won a sign up we go to my website click on the workshop page. Also got another one Thursday June the 21 at the Morningstar senior living it reach deep from 130 to 3:30 PM. You wanna sign up for that you go to my website or you can call my office 720. Or 4027741. Ditch you signed up get you started on the path. To either fixing your older state plan or getting a plan in place. So when I come back and talk a little bit more about multiple beneficiaries and how can cause problems in particular with our realistic so stick around. This is the estate planning an elder law hour we'll skip Reynolds. Are we dive into wills trusts powers of attorney and so much more. Now here's your host skip Reynolds welcome back everybody to you Steve planning an elder law hour with me skip Reynolds. This is our third and final segment of the show today. If you're just tuning in or just Sharon my voice he wanna go back in here but I've been talking about today have been talking about how. People want things in their plan they want it to be simple they want it staying control of their assets and you don't want to be a burden on their loved ones. In particular have been talking about what is simple wanna hear about any of that you can go decrease in 1430 website. And you can find it on the estate planning an elder a lot our show. Or you go to my website skipped in law dot com that's SK IP TO and law dot com and you can click on the blog. They'll drop down in need can go to the radio show the world have this show and past shows as well. So I want to continue the discussion talking about what it is simple. Marty hit on that it leads people to do it themselves and they make unintentional mistakes are not understanding what may need to be in the document or not. Maybe they don't sign it right. Don't understand it hey. This is how you're will works with your beneficiary designations and then all of a sudden it doesn't work out they wanted. Because he didn't integrate their assets into their plan that cracked away with beneficiary designations. Or no beneficiary designations of flows through the will. But another thing that I see quite often and actually a number of clients on here recently have had this kind of concern. Is that we might have multiple beneficiaries. Of our brick of our. May be our largest asset or second largest sassou witches are realistic. And so let's say we got 234. Beneficiaries can be children could be other relatives whoever might be there would ultimately be inheriting our residents. Well if we've got multiple beneficiaries. We can do something here in the state of Colorado it's called. Or are transfer on death deed medium that is indeed that is filed with the county prior to your death. That says that we knew or when you when your spouse is your married her to a donor died this is used to receive. The benefit in the title of this property now the mortgage and all that is totally different scenario I'm not gonna get into that right now but we knew. Do this beneficiary deed it is. Relatively simple and straightforward you understand it hey but I die here's where it goes they get the title they can take it do whatever they're gonna do you sell it rented. By and each other out its outer. The problem is that when we have multiple beneficiaries to house. So anybody ever remember. Science class in high school reminder had a group of 234. People in your science group. And it seemed like one or two people did all the work. And then a couple people just sat back and watched you do it and then took the great. Anybody ever had that happen maybe happen TL work yet again happens at work a lot to you when you've got groups that work. Is feels like somebody's always picking up the slack and others are slacking. Well same thing can happen with beneficiaries. So let's just use this example so I do a beneficiary deed on my property. And I leave it to my four kids. Nice and simple right I dyed my wife gets it when she dies my kids get it fantastic. Everybody's happy it's simple. So now the four kids have it and they all have one quarter interest in that property. All right so now play along with me here folks so all four kids have an interest in that property. And we've designated all of our other assets beneficiary PO DT OD beneficiary. It's all gone a quarter quarter quarter all or four kids. So now they age you're just gonna get their inheritance rights nice and simple cut and dried. No fighting right. Oh but wait. The gulf war own an interest in my property. So. Let's just say it's time to list step property. And I'm one of those four beneficiaries and I don't like their real estate agent I want this realist these and I think he or she's gonna do a better job for our family. I'm not gonna sign that real estate contract. Or I signed the project but I don't agree with the sales price I think we should be selling it for. X amount more and so I'm not going to you agreed to sign that deal. Allowing the sale of the property. Well I wanna read the property. But none of the other beneficiaries do. Or pay out one by you guys out but we can't come to terms on how we're gonna do a buyout because maybe I can't get the financing right away. So how we gonna make this work folks he got once our egg. And it's causing a problem for the other three eating bad ever happens. Absolutely. Right they're holding everybody else hostage. Or maybe you know holding everybody else hostage but let's just say we've got mortgaged still to pay we got to figure out how to pay that for a few months so we can offload the property. Or what about the heat bill or the water bill or electrical bill to keep the house running so it doesn't freeze in the winner are overheat in the summer. Or maybe we need do some repairs to the house so we can make it salable right what if not everybody has the same financial situation. Which often times is the case when you have multiple children. Some of them are doing better than others and one or two of them end up. Polling everybody else along by paying for all those bills or by paying for those. New things that need to be done to the house to make you more salable. Well when you do beneficiary designations we've all your other assets is that person being compensated more. At the closing of the house says see you sell a house for 400000. Each kid's gonna get a 100000 dollars but guess what one kid spent five to 101000 dollars keeping the place afloat. Or making sure that those little things were fixed does that person get compensated at the closing for their out of pocket. Or for what they took out of their own part of the inheritance that they received from other assets. Short answer is no at least not legally. Because of the closing each kid's gonna get a check for a 100000 dollars. They're not going to take into account who carried the burden to get us to sail it to the sale of the property at 400000 dollars right. So PO one or two kids that are repairing these expenses. And one or two kids that are just doing whatever they're gonna do because maybe their financial situation is different. Where they've already spent their other parents and they don't have extra money. Now he's come out equal. Or does it come up unequal did some kid and got bearing the burden that you didn't intend. Because all you wanted to do was handed down hill. So I had a number of clients here recently where they didn't like that situation because they can definitely perceive that happening with their family. And so even in a simple situation. We can do trusts. To solve that problem. So that we don't or even leave it through your will for that matter probe it's not that awful and we knew that you will earn your trust in now we have one decision maker. They can use that money that is yours. These some of the bank money or other money into the stated that trust. So that they are using now your money to pay all of these expenses and then once everything is paid for and sold. Now we can dispute mediate truly equally with Al putting a potential birdie and financially. On one or more over beneficiaries. To benefit of the other beneficiaries. Everybody benefits the same. So had a number of clients though like that. The other thing that's seen in my office and I've talked about this before. And I'm still dealing with one situation. Hopefully it will be over here soon is the situation where we wanna join real things with our children. So for example a lot of parents who put their children on their bank accounts. Because they wanna make it easy they wanna make sure they hate my kid can write checks or hey when I die they can pay for my funeral or my cremation. Right so we do all he sees we put our kids on the so if you got four kids her three kids or even two kids and you put one of those kids. On your bank account. Whose money is it if it's a joint asset when you die. It's theirs right. So the money is there is now what can they do with it whatever they want. Including not sharing. In one iota with your other children. It's their money legally there is no legal obligation for them to share with anyone else now there may be a moral obligation. Unfortunately. In my opinion we live in a somewhat morally corrupt society where money trumps morals in many circumstances. I need our money or I did more for months like deserve that money right here that my office quite a bit I deserve this. Okay. May be due may be done I don't know. The other thing is EC a lot with real estate we're making gifts where we put our kids on our house jointly with us of that when we die guess what. They get it outside of probate hey have avoided probing. But there may be other negative consequences. So if you put your child on your realistic. Let's say you buy your house 152030. Years ago. It's increased quite a bit in value around here so let's just pretend for easy numbers you bought your house for 200. And now it's worth 400 that 200000 dollars is called capital gains. And when you give an interest in your property to your family. They assume at least for their interest their part of the interest you or. What is called cost basis meaning it's as if they're portion started at 200 with you. So it's not their house it's George you're living in it. You die now it's there house great we avoided probate perfect. They go to sell the house guess what your calf got what's called the step up in basis potentially. Beating the 200 to the 400 is wiped away. But guess what there's isn't. So they're happened before hundreds of their 200000 is now subject to you a 100000 dollars worth of capital gains. At the lowest rate of 15%. So the cost of you trying to avoid probate in giving it is joint interest your kid just to avoid probate. In that example could have been 151000. Dollars C wanted to avoid Prodi because you heard it was so awful but he didn't know anything about what probate was. And that they could have done it themselves and it might have cost him at the most 500 dollars. C gave up 500000 dollars if they did it themselves or even if you hired attorney to look 5000 dollars. For a 151000 dollar potential capital gains or could be more. But if they're a high tax bracket. Now can be 20%. Now it's 20000 dollars so you gave away fifteen or 20000 dollars of valuing your steep to avoid probate because you didn't understand the full process. Right but it was sure easy or what happens if you needed to qualify for Medicaid seed gave it away each hoping to try to qualify for Medicaid and get this interest out of York. The states. But then you get sick before it's been five years since you gave it away but now guess what. You don't have enough other money to continue paying for your care. And guess what that person doesn't want to do you give it back they wanna keep their interest right. Being dad ever happens. Darn right. Okay see now you're sick you're in a pickle he got no money gave this thing away. This this state in Medicaid is gonna see you gave it away within the last five years. And your half of it is worth 200000 dollars and we're gonna penalize you for 28 months for that meaning he can't go on Medicaid for 28 months. We got no other money to pay for. Where US. You're asking for forgiveness from the state and hoping and praying that they're gonna. Work with you hate and greedy some kind of a waiver to all of this issue that you just cause yourself. Or hoping and praying that that loved one is gonna give it back but once she gave it away they have no. They don't have to give it back it's non take a bankable they can but if they choose not to they have no legal obligation to give it back. Potentially. So now you can't get the health care that you need in your later lean years because you were trying to avoid. Medicaid coming taken away but he gave it to somebody who doesn't wanna give it back and now let's cause a whole brand new issue. Man. See how this can go wrong folks if you don't know which you don't know. Or. We need give things away what is your bank account whether it's sure. Real estate is now also subject to liabilities in the creditors of data their individual. So if my parents gave me there how's the gate took their name completely off of it. Whose name is on the title now. Mine but who lives in that house. Oh yeah that's my parents. Or what happens if I'm driving down I 25 and I get in a bad car accident or what happens if I get sued. But what happens if I have a bankruptcy because I have medical bills and drown my family. Guess what assets are potentially at risk. My parents house. Oh my goodness we need to think about doubt we're just trying to avoid probate. Or writing thing about the tax consequences are I didn't even think that they would you share with their. Brothers and sisters. Seem we make all these decisions unfortunately sometimes. Not understanding all the potential consequences. Now not telling you not to do this stuff folks I'm just on new. Just because she can't do it yourself doesn't mean you should. Get good advice. Pace somebody Pavia I don't care. Pace somebody. 203 inner whatever there early radius. And get the good advice and make the correct decisions for you when your Stanley and understanding all of the potential consequences. Because if you don't understand all the potential consequences and you're trying to be as simple as possible I'll tell you right now simple often times. In my office. Ends up costing more. Than had they gone a little more complex in your better understood. Why they're simple decisions could blow up in their face all right so today folks I talked a lot about. People wanting their plans to be simple and not wanting to be a burden on their loved ones and they wanna stay in control of their assets. And I want those things for you to. But I want you to do it the right way for you in your family. So that you get it right in you get it right the first time. So if you wanna hear more about these kinds of things you wanna hear more about questions you need to ask yourself about. Estate planning in your state just because you just did you plan doesn't make it 100% up to date in a 100% exactly what you need necessarily. If you wanna hear about these things she can come to my two public workshops here in June. I'm gonna come one coming up this Thursday June the seventh tactic cobol library in Greenwood Village. From ten to new. I'm also got one on Thursday the 21 at the Morningstar senior living and risky from 130 to 3:30 PM. If you wanna sign up for these. You can go to my website skipped in law dot com that's SK IP TO and law dot com. Click on workshops and he can sign up right there. Or you can if you don't like to use Internet you can call my office and speak with Stacy should get you signed up 720. Or 402774. Won't make you start asking yourself these hard questions folks Cindy even get the right plan is right for you. Because everybody's got their own fingerprint. If you come to the workshop you wanna meet with me you get an hour and a half of my time to start you down the path of Keating that plan right for you. That's over a 300 dollar value of meeting with me. They you're not paying my rate to find out what you may need to fix or what you need need or where the big questions you still yet need to answer. So folks I really appreciate you listening in this week hopefully you learn something you had martyr or heard a story you hadn't heard before. Really appreciate you listening for those of you loyal listeners thanks so much. We're listening you're the reason why do you issue. So for everybody have a great rest your Saturday a great rest of your weekend and a fabulous week. I can't wait to talk to you next ticket. Thanks for listening to the estate planning an elder lauer would skip Reynolds. Tune in next week where we talk about some great new topics this is the estate planning an elder lauer with skip Reynolds that's every Saturday from two to three on cruise in 1430. You can Reynolds is a licensed attorney Colorado all the stories and content of this state planning an older life hour are not intended to be directly to a vice they are for illustrative purposes only additionally no attorney client privilege has been performed with the law offices have been Reynolds LLC we're still in Reynolds as wire went to seek legal counsel before making any estate planning or elder Watson did all of the views of the guests of the show or their own and are not views of the law officers have been Reynolds LLC or skipping right over Esquire. Nor is there appearance and endorsement of goods or services for the law offices of have been Reynolds LLC was it to Reynolds Esquire.
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