Writing Your Tulsa Estate Planning Blog

Slayer statutes are designed to prevent people from inheriting the assets of people they have killed, but they have their limitations.

You have probably heard this plotline before. It is a common one that goes something like this: a younger relative of a wealthy person in need of money or just plain greedy, murders the elderly relative to inherit his or her estate or cash out a life insurance policy.

This is more than just a Hollywood fantasy. It happens in real life.

There are even famous examples from history, such as the Roman Emperor Tiberius who was killed by his heir Caligula or so the writer Suetonius alleged.

We actually do have laws that are designed to prevent this from occurring known as “Slayer Statutes.”

They generally state that people cannot inherit from those they are responsible for killing.

However, they can have their limitations, one of which the Wills, Trusts & Estates Prof Blog discussed in “Court Determines that Slayer Statute is Not Applicable in Self-Defense Case.”

In the case discussed, it was not clear what led to the death of the holder of a life insurance policy. The sole beneficiary of the policy was involved in the death and had given conflicting statements.

The beneficiary was not convicted of murder and claimed self-defense.

The deceased’s sister sued to claim the policy, but the court decided that since there was some merit to the self-defense claim, the slayer statute did not apply.

Needless to say, it is good that slayer statutes exist to guard against profiting by killing, even if the statutes do have some limitations.

Reference: Wills, Trusts & Estates Prof Blog (April 11, 2017) “Court Determines that Slayer Statute is Not Applicable in Self-Defense Case.”

The first instinct for doctors and other health care workers, is to do everything possible to save the lives of their patients. That can be in conflict with the wishes of those patients, which is leading to lawsuits.

Millions of Americans have completed advanced medical directives such as health care powers of attorney and living wills. More and more people are taking advantage of their legal options to give directives to health care professionals about what treatments they wish to receive and what should be done to preserve their lives.

While this has empowered millions to take charge of their own end of life care, it has not been without conflict as The New York Times reports in “The Patients Were Saved, That’s Why the Families Are Suing.”

The problems start when the patients’ advanced directives are not followed.

Health care workers, who are either unaware of the directives or uncertain about them, have been known to resuscitate patients who do not wish to be, for example. This had led some families to sue for saving the lives of their sick relatives, which is a new position for doctors to be in. Most suits normally come when they fail to save patients.

It leaves many doctors bewildered, since the Hippocratic Oath does not suggest that saving a patient’s life is ever inappropriate.

Americans deserve to have their advanced medical directives respected and followed. Much thought and consideration goes into the decisions people make about their end of life care.

This is an issue that requires further education and making sure that health care workers are made aware of their patients’ advanced directives, so they can be sure to follow those directives.

Reference: New York Times (April 10, 2017) “The Patients Were Saved, That’s Why the Families Are Suing.”

Despite what many people want to believe, some elderly people are sexually active. That reality needs to be confronted, so that sexually active elderly people are properly protected.

Absolutely no one wants to think about the possibility of their grandparents having sex. That is somewhat understandable. However, you do not have to think of the act itself, to think about the reality that elderly people do continue to be sexually active.

It is actually very important that we do think about that reality, because it is true.

The unwillingness of people to confront that reality causes problems for the elderly, as USA Today explains in “Yes, your grandmother is having sex.”

One of the biggest problems is that elderly people are getting sexually transmitted diseases at increasingly alarming rates.

One of the reasons appears to be that elderly people are far less likely to use condoms than younger people. Some of that might be the result of nursing home policies that often tend to be completely silent on issues of resident sexual activity and thus do not make protection available.

Many elderly people also think condoms are for preventing pregnancy not for preventing the transmission of diseases.

Elder law advocates need to address this issue and insist that nursing homes write appropriate sexual activity policies.

Families should also make sure that their elderly members are informed and protected.

Reference: USA Today (April 12, 2017) “Yes, your grandmother is having sex.”

Many people have fond memories of their vacation homes and would like to keep them in their families, after they pass away. That requires some considerations.

For many people, the best memories they have of spending time with their families is at a family vacation home when their children were still young. On vacation when people have few worries about work, they have more time to develop strong bonds with their children.

People remember these times fondly.

Many people would like to make sure those vacation homes remain in their families, so future generations can have similar experiences.

The Globe and Mail recently discussed some things to consider about how to do so in “How to keep the cottage in the family.”

While the paper is Canadian, the considerations are applicable to the U.S. and include:

•Consider any tax implications for your estate and children. Both federal and state estate taxes might need to be paid, as well as property taxes. It is important to ensure that money is available to pay those taxes.

•You might want to use a trust to pass your vacation home down to your family, especially if you have more than one child. A trust can preserve the property for generations and can also take care of any maintenance and property taxes.

•Make sure that your children want the vacation home. One or more of your children might have good reasons for not wanting it and you may need to equalize your estate to give them something else.

Reference: Globe and Mail (April 11, 2017) “How to keep the cottage in the family.”

In most states, to completely disinherit a child in a will, parents have to mention the child and specifically disinherit him or her. Otherwise, it is presumed that the child was left out by mistake. Tennessee has an exception to the rule.

J. Don Brock, the late CEO of Astec Industries, wrote many wills over the years. He executed new wills in 1994, 1998, 2006, 2012 and 2013. His first three wills all did different things with regard to his five adopted children.

They were given various amounts of money or cut out from receiving anything in the different wills. The last two wills did not mention the adopted children at all. They claim that was done by their stepmother, in order to preserve the assets of Astec Industries for herself.

The children filed a lawsuit against the estate, but lost in the lower courts. The Supreme Court of Tennessee has now agreed to hear their case, according to the Times Free Press in “Tennessee Supreme Court agrees to hear J. Don Brock estate challenge.”

The main issue in this case is a 110-year-old decision by the Supreme Court of Tennessee that created what is known as the Cowan Rule. It limits the ability of potential heirs to challenge a will, if they were not mentioned in the previous will.

The adopted children lost in the lower courts because they were not mentioned in the 2012 will. The rule makes some sense.

Why?

Merely having the 2013 will ruled invalid would not create an inheritance for the children, since it would just validate the 2012 will, unless it is also successfully challenged.

However, this is not how other states handle disinherited children.

In other states, it is presumed that if a child is not mentioned in a will at all, it was a mistake and the child can challenge the estate, regardless of what an older will might state.

Reference: Times Free Press (March 21, 2017) “Tennessee Supreme Court agrees to hear J. Don Brock estate challenge.”

Americans are putting off retirement and continuing to work at an increasing rate. Many seniors who do retire later, chose to go back to work. One of the consequences is that it often leads to having a younger boss.

People often do not like taking directions and orders from others who are much younger. It seems to go against the natural order of things for younger people to be in charge of older people. However, that is exactly what is frequently happening in the American workplace today.

As The New York Times reports in “When the Boss Is Half Your Age,” 38% of Americans have a younger boss. One of the reasons for this trend is that many employers want to hire managers who grew up with the technology used in today’s workplaces, such as cell phones and email.

There is a belief that being a native to the technology, makes younger people better at understanding it and using it to their advantage.

Another reason for this phenomenon is that Americans are working longer than before and many people who have chosen retirement go back to work for one reason or another. As a result, many senior citizens have immediate superiors at work who are much younger than they are which can lead to problems.

Elders do not always like being told what to do by younger people, and younger bosses are often on guard against older employees who think that the old way of doing things is best.

Seniors who do have a much younger boss need to be aware that the law does protect them against discrimination due to age. However, they should also be open to new things and be willing to do their work, as directed by their younger boss.

Reference: New York Times (March 17, 2017) “When the Boss Is Half Your Age.”

When someone you know passes away, one of the most important things that you can do is to sincerely offer condolences to the deceased’s loved ones.

A lot of the time when we see other people hurting, we wonder what we can do to help. We often conclude that there is nothing we can do. It is common for this to happen, when we learn that someone has passed away and we see their family in mourning.

As humans, we lack the ability to bring the deceased back to life.

There are other things, however, we can do to help the family that do not require much time and effort as the Wills, Trusts & Estates Prof Blog points out in “How Condolences Alleviate Grief.”

The easiest and one of the best ways to help people mourning for a loved one, is to let them know we care and to offer our condolences. This does not require a grand gesture. It only requires a sincere statement of sympathy.

Sending a card or flowers is another way to offer condolences. Charitable donations in the name of the deceased is also a small thing that can let grieving people know you care.

This is important. Knowing that other people really do care helps those who are grieving.

It does not fix everything. It does not bring anyone back to life. Nevertheless, it does help people move on and makes it easier for them to handle other things that need to be done when a loved one passes away, such as making funeral arrangements and dealing with the estate.

Reference: Wills, Trusts & Estates Prof Blog (March 20, 2017) “How Condolences Alleviate Grief.”

People who plan to rely on Medicaid, if they ever need long-term care in a nursing home, often make a very big mistake.

Nursing home care is one of the most expensive things facing elderly people. It costs a lot of money to get long-term care in a nursing home.

Many older people do not have the money for it and do not have a realistic way of getting that money.

As a result, they look to the government to pay for that care. The government will step up through Medicaid, but only if the elderly person, who is in need of nursing home care, has no assets.

When seeking to qualify for Medicaid, however, many people make a big, big mistake.

This mistake is discussed in the Pauls Valley Daily Democrat article titled “Misunderstandings create traps in planning.”

The mistake is a simple one to explain, but it is important to make sure you understand it so you will not make it. You cannot give your assets to your children, just before you go into a nursing home, at Medicaid’s expense.

Unfortunately, that is just what many people are planning to do and it will not work.

What is the problem?

Medicaid has a five-year lookback window, which means that the program will look at any asset transfers the applicant (or anyone on his or her behalf) made within five years of needing long-term care.

If those transfers were not made at market value, then Medicaid will not pay for care until the expenses start to exceed the value of the transferred assets. There is a formula to calculate the “penalty period” that will be applied.

This simple mistake is a big source of problems for the elderly. Make sure that you understand it and ask an elder law attorney, if you have any questions about it.

Reference: Pauls Valley Daily Democrat (March 8, 2017) “Misunderstandings create traps in planning.”

You can think about estate planning in many different ways. One of the simplest and best approaches is to think of estate planning as a way of telling your family that you love them.

Estate planning is often thought of in cold or detached legal and financial terms. It is a way to decide who will get your assets, after you pass away and what the best legal instruments are for distributing those assets.

Viewed in that way, estate planning might not seem very important to many people, especially if they do not have many assets and do not particularly care about the legal aspects of transferring those assets after they pass away.

There is, however, another way to think about estate planning as Lifezette reports in “Estate Planning: A Love Note to Your Family.”

Estate planning is a way to let your family know that you love them.

As the article suggests, it is a love note to your family. You might not care too much about how your assets will be distributed when you are no longer around to worry about it, but it can make a big difference to your family.

Getting a proper estate plan, can spare your family the costs and legal headaches of having to go through the probate process. It can even stop them from fighting over who gets which assets.

When you think about estate planning in those terms, then it should be obvious that everyone should get an estate plan. If you love your family, it is one the best things that you can do for them.

Reference: Lifezette (March 7, 2017) “Estate Planning: A Love Note to Your Family.”

People who do not have a large amount of assets, think that they do not really need an estate plan. They are wrong.

Not everyone is wealthy. Not everyone has billions, or even millions, of dollars that need to be divided up between their relatives after they pass away. In fact, most people do not have that kind of fortune and never will.

Many of the people who are not wealthy, think that means they do not need estate plans. They reason that if there is little to divide up, then there is little to fight over. Consequently, they believe everything will go smoothly.

Unfortunately, that is a myth.

Even people who do not have a large estate need an estate plan, as the Pauls Valley Daily Democrat explains in “More on estate planning myths.”

You never know when family members will decide to fight over an estate and exactly what they will fight over. While it is true that a large amount of money often leads to a fight, it does not always do so.

Sometimes the most bitter of estate battles are actually over little things. Some estates have even been known to easily settle large fortunes, but have long and bitter feuds over small personal items that are not worth very much.

This means families might choose to argue over estates that do not have anything of value, if there are sentimental items wanted by more than one family member.

It happens a lot more often than you think.

No matter how much money you have, you need to see an estate planning attorney and get an estate plan.

Reference: Pauls Valley Daily Democrat (March 1, 2017) “More on estate planning myths.”