Our Readers\’ Top 5 Articles from 2013
Like most, The Shark Free Zone took a little time off to reflect over last year’s work and our readers’ preferences. So before the “reflection” month of January is over, below are the top 5 articles from 2013. Enjoy! NUMBER ONE. The popularity of our top article for 2013 may have had a little to do with its melodramatic title, “Infants, Stairwells, & Burning a Million Dollars.” The premise was less dramatic than the title, but still important: If professionals or smallbiz owners fail to protect their assets by not planning, they might as well set their income and belongings on fire. Of course, we’re not advocating arson, but if someone slips and falls on your property or a toddler visiting with Mom finds his or her way into a non-child-proof cabinet, oh woe… Click here to read the star of The Shark Free Zone for 2013 and feel free to pay it forward. TWO. \”What the Civil Union Means…to Many,\” was a spillover all the way back from 2011, providing useful information on LGBTQ couples considering or entering into Illinois Civil Unions. It\’s continued popularity was likely because it resonated with many concerned about the economic benefits that can be reaped when discrimination ends. It’s a somewhat moot now that Illinois has passed the Religious Freedom and Marriage Fairness Act, providing marriage equality to Illinois LGBTQ couples. However, the article has many relevant points, so you can read it here. Our article on marriage equality in Illinois is forthcoming, so stay tuned! THREE. Smack dab in the middle is our series, whose information, is rising to the top of the news charts as more statistics and reports are being shared daily about the large aging Baby Boomer population. We first mentioned the Baby Boomer issue, or “Silver Tsunami,” a few years ago. It is now abundantly clear to all advisors that almost everyone is or will be affected by the Boomer generation, especially families that are unprepared. Don’t get caught by the Boomer wave. Prepare for the Silver Tsunami by checking out this middle entree. FOUR. Fourth in last year’s popular articles again involved marriage equality, particularly DOMA’s undoing. Our series, “The IRS Takes a Bite Out of DOMA” highlighted the complex estate and financial planning machinations LGBTQ couples had to take before the U.S. Supreme Court’s ruling in U.S. v. Windsor and the subsequent IRS ruling 2013-17 that removed a lot of that complexity for legally married LGBTQ couples, and especially those in \”friendly\” states. Tap here to read the beginning of this important 4-part series. FIVE. Rounding out our top 5 is “The Money Talk.” Recently, a relative became engaged, which will likely happen with many couples next month on Valentine’s Day. As couples take this loving step, it’s critical to know and understand each other’s mindset as it relates to saving, spending, investing, charitable giving, and a host of other related issues. So before you say “yes” or consider putting a ring on it, consider having this conversation. So there you have it: The top interests of 2013 were about love, money, and justice. What else is there to be interested in, except a pair of good looking shoes, right?
Your Resolution: Keep Fake Children Out of It
Recently a post went out from our office across a few social media outlets that pretty much sums it up when it comes to reasons why most folks, especially parents and smallbiz owners need a will. The post went something like: “Got kids? Get a will. Got more than one heir? Get a will. Got a high risk job? Get a will. Got the picture? If it\’s a Renoir, get a will.” The Issue: Children While we’ve written here repeatedly about how important it is for parents to have a will because of the guardianship provision, it bears repeating. Only by having a valid will can you nominate a potential guardian or potential guardians for your children. If you’re a single parent, having a valid will is all the more important. You don’t want an irresponsible parent having control over your child’s estate, which he or she will have, if you’ve followed this series and bought life insurance, or daily care if the other biological parent believes that chips and fruit punch make for a good breakfast. An alternative issue about children can be found in the converse: If you’re single and have been responsible intimately, you want to ensure that “fake children” cannot inherit from you. The issue: Multiple heirs. Wills or the potential for inheritance often results in less than happy-go-lucky family dynamics, especially if someone dies without a will and with a couple of children or a few nieces and nephews. So a will allows one to head the family feud off at the pass. You can state who will get what and when and the best part is you don’t have to say why. Frankly, that should be communicated long before the ink on the will is dry. If you’re unsure about the allocation, you can leave it to the discretion of the executor and have a “no-contest clause” inserted and then talk about it at Thanksgiving. That might provide the impetus needed for having that “conversation.” The Issue: High Risk Profession. Do you work as a carrier of jet fuel? Are you a criminal defense attorney or a divorce lawyer with walk-in offices? High-wire artist? Human rights attorney working in the hotspots, such as Afghanistan? The Issue: Art and other collectibles. People tend to put a value on everything from brown crock-pots to President Jefferson’s cravat. If you own anything that is similar to Jefferson’s cravat, the pen Clinton used when he signed DOMA, Reagan’s cowboy boots, Liberace’s cape, you need to get that or those items first appraised by a qualified appraiser. Next, you should have a will prepared that will determine how that valuable piece or collection is going to be managed, i.e., sold, handed down, donated. More than 70% of Americans don’t have a will and that percentage surely includes people who have children or who don’t plan to have children, folks with more than a few heirs who might argue over a collection of antique doohickeys. Children should be taught how to plan; one should plan appropriately for not having children; and doohickeys should also be in the plan – the estate plan that includes a will.
4 \”Must Ask\” Questions for Smallbiz Owners and Single Parents
This is the third of 4 articles in our 2013 Estate Planning Fundamentals Review series. We\’ve already covered, life insurance and healthcare powers of attorney. So moving on…to property powers of attorney. Property powers of attorney are important components of an estate plan because the documents help people plan for today as well as tomorrow. The instruments are even more important for single parents and small business owners because often the single parent or smallbiz owner is the sole keeper of the keys to the family’s or business’s financial kingdom. So if the key keeper becomes seriously ill or suffers a devastating injury, the financial kingdom could turn to ruin if a trustworthy substitute keeper isn’t ready to step in. A property power of attorney allows for designation of a substitute keeper. Consider the following: Karyn and Jonah are divorced. Karyn has sole custody of Little Caroline because Jonah was abusive; Karyn’s restraining order proved so. Karyn was an only child whose parents died a while back. She and Jonah moved to Illinois immediately following the birth of Little Caroline, who is 5 years old. By the time Little Caroline was 2, Jonah and Karyn’s relationship was over. After the divorce, Karyn bought a flower and wine boutique, which is thriving. She owns a modest home and lives well within her means. However, Karyn has recently learned that she must be undergo major surgery and will be in recovery for at least 6 weeks, 3 of which will include her being heavily medicated. Because she put so much time into her business, though she has a part-time employee, and spends all of her spare time caring for Little Caroline, she hasn’t had a lot of time to really nurture other friendships. Furthermore, Jonah not only has a violent temper but he also has an erratic employment history. So there is no way Karyn would let him near Little Caroline or her financial affairs. So some but not all of the questions Karyn should consider are: Who will care for Little Caroline while you’re in the hospital and during the first few weeks of your recovery? Do you have 6 months of emergency daily living expenses saved? If you pay your mortgage early, will you be penalized? While you are in the hospital and a bill becomes due, have you arranged for its payment and how? If a complication arises, requiring a longer hospital stay and, thus, a longer recovery period, who will tend to your personal and business affairs? If you conduct your affairs online, who will have access to your online accounts and how have you cleared this with the relevant institutions? Can your part-timer handle opening and closing the shop during your absence? How has this authority been provided and is there a back-up plan? Can the shop survive during your absence? If you have arranged for someone to manage your financial affairs, have you limited their authority and how? All parents and business owners owe a duty to their families and business stakeholders to plan. For single parents and small business owners, failing to plan creates dangerously and unnecessary high risks to family and stakeholders.
1 Easy Best Practice to Execute before the New Year
As we continue reviewing estate planning fundamentals, let’s consider last week’s Best Practices Estate Planning tip posted on Facebook: “Every adult, regardless of age and income level, needs a healthcare power of attorney.” Young adults, and even their parents, may think this is going overboard, especially if they live at home. Yet, an adult with capacity has the right to make healthcare decisions on his or her own and also has a right of privacy regarding those healthcare decisions and his or her medical information. Recently, the Health Insurance Portability and Accountability Act (HIPAA) was revised, increasing the privacy guards around the release of medical records and, thus, making it much more difficult for parents or next of kin to obtain this information and, especially to make medical decisions for adult children, without the requisite authority. Human beings experience a myriad of conditions and ailments, some of which we do not want our parents to know about, some of which we only want our parents to know about. Conversely, parents should share important medical history with children, so that children are well-informed about potential conditions that they or their children could experience as a result of inherited genes. Sometimes we don’t know about an inherited medical condition until an accident occurs. If, however, Mom is in an accident and hasn’t designated an adult child a Personal Representative on the HIPAA form, her adult child may not learn this important information. Like the property power of attorney, the healthcare power of attorney is a critical document for single parents with minor children. A minor child cannot be a healthcare power of attorney agent or a HIPAA personal representative and, if a minor is one’s only next of kin, then the document is even more important. Also similar to the property power of attorney, the agent’s authority for a healthcare power of attorney does not have to be effective immediately. However, language should consider emergency situations. Finally, if you’re considering separation or divorce, you should seriously consider executing powers of attorney that designate someone other than your spouse as the agent and personal representative. Do you really want someone who is going to be an ex-spouse to have the authority to “pull the plug”? So to round out the knowledge and authority needed for minimum estate planning protection, be sure to start the New Year with your property and healthcare power of attorney signed and tucked away.
A Peaceful Way to End the Year – Checking the List
As the year winds down and we embark upon the “holidaze,” it’s a great time to take a few minutes and step back to review. \”Now?!,\” you may ask. Yes, \”now.\” Reviewing what we’ve accomplished and can accomplish before year’s end allows us to breathe a little easier as we deal with the frenzied seasonal festivities. So, the next few articles will focus on fundamentals that can bring you peace of mind and a nice deep breath before 2014. First on the list is insurance – life insurance and business insurance. If you don’t have it or enough insurance, then either purchase it by year’s end or put in the budget for Q1 ’14. However, you should be mindful that, like all important things we must buy, insurance rates are only going to increase. Thus, it may sound counterintuitive, but if your budget is a significant concern but cash flow isn’t, act now because rates will likely increase and the value of your money will decrease. Life insurance on all the working adults in one’s family is critical. Having sufficient insurance will make for a peaceful night’s rest during times when everything is fun and festive. Conversely, when unthinkable situations occur, family members can focus on the healing and comforting of each other instead of scrambling to try to find money to pay for memorial service necessities or thinking about a job search to replace income. Business insurance should be a no-brainer. Yet, thousands of smart business owners don\’t have liability insurance. America is the most law-suit crazy country in the world. I need not say more about that. However, insurance can also be of great help if a smallbiz owner becomes ill and can\’t pay the bills for a few months. Finally, keyman insurance is helpful in succession planning issues. For more information about the usefulness of insurance, check out these articles and be sure to enter 2014 on a peaceful note: Why and how to make the appropriate designations; it is not as easy as it appears. Determining the appropriate amount; and it shouldn\’t concern Jimmy Choo. Why small business success is like sushi. Happy Holidaze!
A Letter and Recipe for Your Family\’s Long-Term Health
Dear Family, Friends, and Folks Like Me, Last weekend I was able to release my culinary skills on a lovely group of friends and it was so delightful, I thought I\’d write a letter capturing that theme. So, I’m writing to ask that you join me in promising not to take the path of so many of our elders in creating a disastrous family meal and that you follow a healthier recipe. A friend recently heard the term, “Sandwich Generation,” for the first time. He asked me if it was because our peers grew up with Wonder Bread. Smiling, I responded, “Not quite.” I explained that the term is not because of what we ate as kids but because of what many of us are experiencing as adults. If we step back and look at the generations of family to whom we are connected, most of us will have children, whether our own or nieces, nephews, or cousins, on one side and our parents or grandparents, and sometimes both on the other side. Accordingly, we will have loved ones looking to us for care and assistance from both sides. Considering “sandwiches,” if our loved ones are the bread, then what are we? Yes. We are the stuff in the middle – peanut butter and jelly, roast beef, turkey – and because some of our elders didn’t understand or didn’t receive lessons on how to prepare a healthy, life-sustaining, family meal, many of us are starting to feel more like seamy meat-by-product instead of the tasty Portobello mushroom. So, Dear Family, Friends, and Folks Like Me, take a couple of seconds to jot down this recipe for a healthy family meal: Ingredients 1 lb of good health insurance, which may include long-term care insurance because, despite our denial, we will get old and most of us will live longer than anticipated 2 tbsps of life insurance: one for income replacement and the other for bills and larger items that must be or should be paid, such as mortgages and college educations 2-4 gallons of consistent retirement savings – about 1 cup per year 2 tbsps of powers of attorney: one for financial issues and one for healthcare issues; and 1 Will: so you can decide on who gets what and not the courts. Preparation Combine all of the above with 3-4 trusted and honorable fiduciaries, covered by a trust if you own a home, and stir occasionally with a very good financial planner and CPA. Cooking Time Then let sit for about a year, or taking it out more frequently to revisit growing family needs basis. Let’s make a conscious promise that instead of making our children feel like overdone and gamy sandwich meat, we show them that they are part of a healthy, hearty stew from which everyone can benefit and be satisfied in the long run. A votre sante! Max
The IRS Takes a Bite Out of DOMA, Pt 4
Last week’s article was the third in this series covering the court cases and government rulings that have been issued over the last several months. Today’s article, the last in the series, will consider migrating same-sex couples, i.e., couples who move from a state with one set of marriage equality laws to a state with a different set of marriage equality laws. With respect to marriage, all couples fall into 3 basic mindsets: lawfully married, intending to marry, or not reached the fence yet. For the sake of this article, we’ll also put states in 3 basic categories: friendly, unfriendly, and grey, such as Wisconsin. Lawfully married couples who migrate to an unfriendly state, will likely have state income and estate tax issues, presuming the state has an estate tax. If they have or plan to have children, a problem may emerge involving parental recognition and rights. Also, legal problems involving healthcare may arise, such as decision-making authority and visitation rights in medical emergencies. Lawfully married couples residing in friendly states should think long and hard before moving to unfriendly or grey jurisdictions. Married same-sex couples in a grey state should consider the worst-case scenario and take lessons from living somewhere like Alabama. One would think that the easiest advice to give married couples in a friendly state would be, “STAY PUT.” However, tax minimization and relationship recognition aren’t always the most important factors LGBT families face. Still, if all else is equal, they should STAY PUT. If a couple is engaged or intends to wed, they should consider all of the factors. Moving by itself is often a relationship destroyer, regardless of gender makeup. Add to that the stress of relationship recognition issues and stir in income tax burdens for good measure, and the couple may be divorced even before getting married. So great thought should be given to moving, especially if moving soon before or after the wedding. If a couple has yet to seriously consider marriage, they should travel together. If they begin considering marriage, they should move to a friendly state. A friendly hypothetical always helps to illustrate a point: Facts: Chris and Chaz marry in Iowa in 2010, move to Indiana, have a baby girl, Sarah, and Chris is killed in Indiana in 2012. Now Chaz’s attorney must file an estate tax return. Chris was also a transgender. Points to ponder: Was their marriage was valid? Iowa legalized same-sex marriage in 2009; they were married in 2010, so their marriage was lawful. The estate administration lawyer filed estate and income tax returns within 9 months of Chris’s death; can the income tax return be amended now? Yes; the return is inside the statute of limitations. Should the return be amended to reflect the marriage? Good question. It depends on potential advantages and disadvantages. Can the estate tax return, which was filed on June 21, 2012 be amended and should it be? Yes and it depends on a number of factors. Another hypo: If Indiana’s wrongful death statute required payment only to the spouse or children, does Chaz have standing to even claim? No, unless Chaz is willing to renounce their same-sex marriage which would be demeaning and a circumstance no one should have to endure. Also a final wrinkle is the fact that because Chris was the biological parent, Chaz would likely have to apply for guardianship before being able to act on behalf of baby Sarah as an heir. Though Windsor, Perry, and the government\’s guidance substantially increased marriage equality for LGBT couples, the decisions and rulings also resulted in more patches and landmines for migrating LGBT couples to navigate. Biting DOMA was good, but chewing the entire statute up would have been much more satisfying for those who want and deserve complete marriage equality. The IRS Bites DOMA Pt 1 | 2 | 3 | 4
The IRS Takes a Bite Out of DOMA, Pt 3
Before beginning today’s article in earnest, a brief recognition and review of the legislative process is relevant. Yesterday, Tuesday, November 5, 2013, was a historic day for Illinois. The state’s legislature voted affirmatively on the question of marriage equality, i.e., allowing Illinois same-sex couples to marry. Thus, Illinois LGBT couples, as of June 1, 2014, may enter into a legal state of loving matrimony. Listening to members on the floor of the House deliver the reasons why they favored the bill, SB10, one theme rang loud and clear: We should not be a society where the law treats individuals or groups in our population differently because other individuals or groups disagree with their lifestyles, don’t like them, or may not understand what makes them “different.” Sidebar: I’m saving arguments that address the reductio ad absurdum issue for later. Being one of those “different” kinda folks myself, I have always been a proponent of marriage equality and LGBT equal rights. Yet, when I saw and heard Catholics and African American men steadfastly and eloquently place their support behind the law, a sense of pride in our legislature, in our democratic system of governance, in our state, washed over me. While Illinois, most assuredly, has its fiscal woes, our money problems aren’t, or at least shouldn’t be, the ultimate issue. The ultimate issue is whether those of us with immutable differences, such as sexual orientation and identification, skin color, or ethnicity, should be afforded the same rights as those whose immutable characteristics are more commonplace. Surely, if we look deep enough, we will recognize that, in some way, we are all different, and our differences should not be the sole basis for refusing, abrogating, eliminating, or enlarging our rights individually and collectively. The fundamental rights of all should be equal. Therefore, if a state gives the right to marry or literally speaking, license to marry, to one group, it is an abomination to our system of democracy if we do not provide the same license to another. So it stands that Illinois citizens should applaud our legislators who lifted the rights of all Illinoisans yesterday when they provided marriage equality to our LGBT community. Now back to the business at hand, which is even more poignant for Illinois couples given the last 24 hours. Because of Windsor and the flurry of guidance that followed, disparate treatment of lawfully married same-sex couples under federal tax laws has been virtually eliminated. Therefore, estate and tax planning for same-sex married couples is more aligned with traditional estate planning methods for opposite-sex married couples. In the post Illinois Civil Union – make that the Illinois Religious Freedom and Marriage Fairness – Act and post Windsor plus guidance world, a same-sex married couple in Illinois should receive equal federal and Illinois treatment for purposes of income tax, estate tax, qualified retirement plans under ERISA, and FICA. However, practitioners must be mindful of the nuances between Illinois and federal law, such as, statute of limitations for amending returns, date of marriage recognition, portability*, and the fact that Illinois estate tax exemption is lower than the federal exemption. *Portability is the “check the box rule” that allows a surviving spouse to use the unused portion of the deceased spouse’s lifetime gift exemption. EXAMPLE: Michael dies on June 30, 2014 and used $1M of his $5.34M federal exemption. David, Michael’s surviving spouse can add the remaining $4.34M of Michael’s exemption. This means if David hasn’t used his, he now has $9.68M to give away tax free during his lifetime. NOTE: Before the Rev. Rule 2013-17, this wasn’t available to lawfully married same-sex couples anywhere in the U.S. So what does this mean for filing purposes? Because lawfully married same-sex couples are now equal in the eyes of the state and federal tax regimes for Illinois, they don’t have to complete “dummy” federal returns for income or estate tax purposes. WARNING: Illinois couples who are currently only in Civil Unions are not in federally recognized relationship; so, they must still complete the “dummy” forms. IRS Notice 2013-61 followed Rev. Rule 2013-17 and is at the center of the tax return amending issue for most married same-sex couples. The Notice requires employers to amend their 941 returns with respect to over withholding, FICA overpayment, and benefits counted as wages. Why is this relevant to estate tax returns? To file an accurate estate tax return, Form 706, an accountant or attorney should have an accurate income tax return record. Therefore, for these purposes especially, before amending a 706, a decedent spouse’s 1040 should probably be amended to account for Notice 2013-61 issues. Debates wage among colleagues about whether to file an amended return for an estate that is not taxable and, given the level of the federal exemption for a married couple, only very few estates are taxable at the federal level and even at Illinois’ level. Yet, if the income tax return is being amended, then filing a 706 might be advisable for consistency’s sake. Also, a surviving spouse should file a 706 if he or she wants to or should elect portability. All of this ultimately suggests that surviving spouses of same-sex marriages should request a filing extension on original returns to ensure that all tax records are thoroughly reviewed before filing amendments. The same premises apply for Illinois estate taxes because federal numbers drive state numbers. Of course, just because tax returns that fall within the statute of limitations should be reviewed, doesn’t mean they should be amended. Like a surviving spouse of an opposite sex marriage, a surviving spouse of a same-sex marriage might have to pay more taxes. Nevertheless, couples should review the amendment issue. As discussed last week, Rev Rule 2013-17 stipulates that “affected taxpayers may rely on this revenue ruling for the purpose of filing original returns, amended returns, adjusted returns or claims for credit or refund for any overpayment of tax resulting from these holdings providing the applicable limitations period for filing such claim
The IRS Takes a Bite Out of DOMA, Pt 2
As mentioned in the first article of this series, the U.S. Supreme Court’s (aka SCOTUS) Windsor decision resulted in a flurry of guidance from several government agencies. The agency leading the charge, because its treatment of estate taxes was called to the carpet in Windsor, was the IRS. Sidebar: When SCOTUS or an agency, such as the IRS, decides on an overall course of action, the action typically can’t or, better yet – shouldn’t, occur until the agency provides a legal how-to analysis and procedural guidelines (aka “guidance”) for those who depend on the agency when performing their respective jobs. In this case, it would be estate planners, CPAs, and others. The IRS responded to Windsor faster than most of us have ever seen with respect to an issue of discriminatory treatment of individuals; it’s response was Revenue Ruling (Rev. Rule) 2013-17. WARNING: Despite my best efforts the following language will likely be a little dry. Rev. Rule 2013-17 painstakingly crafted an IRS rule based on (1) gender neutrality, (2) the IRS’s historical treatment of common law marriage, and (3) the burdens placed on both the taxpayer and the IRS by the so-called Defense of Marriage Act (DOMA). Though somewhat spliced between most sections of the analysis, the rule provides that in the eyes of the IRS, “husband,” “wife,” and “spouse” each mean a “married person” and that “marriage” is a lawful union between “married people.” Thus, the Rev. Rule completely removed gender from the analysis of tax treatment for married couples. The IRS reached this conclusion by examining the references to gender within the Internal Revenue Code (Code) itself and found few instances of express, gender-specific terms. Further examination of legislative history and recognition of statutory construction (how laws should be interpreted) supported the gender neutrality basis for the federal tax treatment of married same-sex couples. Next, to answer whether credence should be given to state law if the state didn’t recognize the marriage as valid (recall, SCOTUS didn’t invalidate DOMA Section 2 which allows a state to not recognize valid same-sex marriages), the IRS considered its historical treatment of common law marriages. More than 50 years ago, the IRS decided that it would recognize common law marriages even if a state didn’t; therefore, it saw no reason to undo more than 50 years of precedent. (I will resist the strong temptation to comment on Citizens United here.) Equally important, the IRS determined that despite the lack of uniformity among the states regarding marriage and state taxes, “uniform nationwide rules are essential for efficient and fair tax administration.” Considering how inefficient DOMA Section 3 made tax administration, the IRS stated that “more than 200 Code provisions and Treasury regulations” contain terms pertaining to marriage. Additionally, more than 1,000 statutes and regulations are affected by DOMA, placing a huge burden on same-sex couples by forcing them to use a complicated tax return filing process. Finally, the IRS also recognized the increased healthcare costs to these families created by a loss of the tax benefits opposite-sex spouses enjoy though employer benefits. Also, looking at DOMA and its Section 3’s affect on tax administration, the IRS pointed to Windsor, where the reason for Section 3 was noted as anything but fair but, on the contrary, designed to “injure and disparage” same-sex couples seeking to marry. The Rev. Rule also acknowledged and agreed with SCOTUS\’s Fifth Amendment analysis inWindsor, stating that the IRS would prefer to pass rules and regulations that are more constitutionally valid than not. Accordingly, the IRS per Rev Rule 2013-17 affords legally married same-sex couples the same tax treatment with respect to the federal tax regime as married opposite-sex couples, even if the couple resides in a state that doesn’t recognize their marriage (an “unfriendly” state). The rule, however, also expressly provides that this treatment does not extend to those couples in a Civil Union, Registered Domestic Partnership, or other relationship that bears a substantial similarity in state law benefits to marriage but are not, in fact, marriages. IRS v. DOMA: IRS score BIG ONE; DOMA down 1 ½ . Tune in next week for what this means practically speaking for married LGBT couples. The IRS Bites DOMA, Pt 1 | 2 | 3 | 4
Estate Planning and Bologna
It’s National Estate Planning Awareness Week, so this article digresses from the Marriage Equality Government March series that began last week. The regularly scheduled program will resume next week. This article is about estate planning sandwich meat, in particular, 3 common servings. “I have more important things to worry about.” Colleagues and I often share “war” stories about the one that got away: the potential client who cancelled an appointment and then went on a fabulous vacation. We shake our heads because the scary anecdotes we tell clients about what happens when families fail to plan are not just Halloween pranks, they’re the stuff law students study. Still, no one ever thinks it will happen to them or their families until someone is seriously injured, diagnosed with a catastrophic illness, or dies. Then, because of procrastination, certain wishes may not be possible and what would have been unnecessary legal services will be unavoidable and potentially more expensive. If you can think of something more important than having genuine peace of mind or maintaining family harmony while you’re going into surgery, do share. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ “I don’t need an estate plan; I don’t have anything.” In fact, you do have an estate plan. If you’re in Illinois, it’s the one the state created for you in 1975, called the Probate Act. Perhaps you don’t need a will or a revocable living trust, but I’ve yet to meet an adult who doesn’t need powers of attorney. Also, I haven’t met a parent with a minor child who doesn’t need a will. Finally, even if you “don’t have anything,” is it fair to burden loved ones with emotionally challenging decision-making and bills were something to happen to you? For individuals with modest estates, a little life insurance and powers of attorney can go a long way. Thus, yes, you do have “something.” Chapter 755 of the Illinois Compiled Statutes, Act 5, Article 2, Section 1 says so. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ “I can’t afford an estate plan.” Millions of people in this world go without buying quality items for a long time or ever. The decision-making process is similar to the one used when buying shoes. My elder family members – men and women – always cautioned me about shoe purchases. “You only have one pair of feet to last your entire life,” they warned. So was I going to buy cheap shoes and then pay a ton o cash to the podiatrist or buy good shoes and save a ton o cash in the long-term? Similarly, buying a will in a box or online are reasons why probate courts and lawyers who specialize in probate can end up with a ton o cash and why property goes unclaimed and why families feud. So, what kind of shoes do you like? Better yet, what kind of shoes do you want your children to buy? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ It’s National Estate Planning Awareness Week; the same week will occur again next year; and most who need to act will not have acted by then. However, if one person does act after reading this article, whether by contacting me or another attorney, then it will be worth it to them and their loved ones; and I will have made one more person proactively aware.