Does an “I Love You” Will Really Show Your True Affection?

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A will is a legal document that lets you tell the world who should receive your assets after your death. An “I Love You” Will basically states, I leave everything to my spouse first and then to our children equally. In real life this type of Will can become anything but loving.

Marge and Walter have three wonderful children, Beth, Dave and Mark. Beth lives locally, in Rockford, and helps Mom and Dad out all the time. Dave and Mark live out of state. Other than a visit or two a year, they are not involved in mom and dad’s daily life.

 

Marge and Walter have a beautiful cottage on the lake in Grand Haven, in addition to their primary home in Grand Rapids. Beth and her family look forward to weekend visits in the summer. Her children feel like it’s their summer home because they spent so much time there with Nana and Grandpa. Due to distance and their own busy lives, Dave and Mark haven’t been to the cottage since they were little.

If Marge and Walter had an I Love You Will, what do think would happen to all their assets? Sell everything and divide by three, perhaps. Of course, after attorney fees and Probate costs! Do you think Beth would want to keep the cottage “in the family” and continue to use it in the summer months? There are so many memories there, particularly of Mom and Dad. Beth may even think she deserves the cottage. After all, she was always there for their parents (paying bills, doctor’s visits, trips to the store when it wasn’t safe for them to drive anymore, etc.)  Do you think this situation may cause dissention among the siblings? Is this really what Mom and Dad planned, their “wonderful” children fighting over the cottage or at the very least have bad feelings towards each other? What happens to the primary residence?

There are alternatives to an “I Love You” Will. An experienced estate planning attorney can explain your options and counsel you on how to best achieve you wishes.

"I Love You" Will

How to Get Ahead of Alzheimer’s Disease

In the U.S. an estimated 5.4 million people are living with Alzheimer’s disease

Are Your Legal Documents In Order?

How can anyone know the true devastation of Alzheimer’s unless you have had a loved one affected by the disease? In Michigan, there are 180,000 people aged 65 and older with Alzheimer’s. According to the Alzheimer’s Association, they expect that number to grow 22% by the year 2025. The need to plan while you are well and able becomes more significant as we age.

The financial and emotional implications of becoming disabled before dying can have a profound effect on one’s family. It’s hard enough to see a loved one decline but wondering if you can afford to get them the care they need, is even more stressful. Estate planning attorneys can help you protect your assets and plan for what you hope won’t happen. In the United States, someone develops the disease every 66 seconds. We can never be certain it won’t happen to us.

John and Karen had been married for over 40 years when John started to notice some changes in his wife’s behavior. They were subtle at first and they chalked them up to “senior moments”. She would get confused while cooking. She began to have trouble with simple math. (Karen had been an expert at calculating the discount at Macy’s in her head!) But, when she started wearing heavy clothes in the warm weather and accused the cleaning lady of taking things, he knew it was something more. After the diagnosis, the next chapter in their life journey began.

Fortunately, they planned ahead. They had their Durable Power of Attorney- Medical and Financial, Living Will, Advance Directive, Revocable Trust and Irrevocable Trust prepared and updated by an Elder Law attorney. They had peace of mind knowing their legal documents were in order.

But, how about the physical and emotional toll being a caregiver would take on John?  In Michigan, they took advantage of the Program of All Inclusive Care for the Elderly (PACE). They were able to keep Karen safe at home, provide housekeeping services, medical transportation, socialization at the day center, and all her doctors. This was at no cost because they qualified and did the planning and application with an expert Medicaid attorney.

An Elder Law attorney has the expertise to counsel seniors and their families on how best to plan, with a primary emphasis on promoting the highest quality of life for individuals. For more information on Alzheimer’s visit http://www.alz.org/

If you’re in need of estate planning assistance, contact the experienced lawyers at The Law Offices of David L. Carrier.

Planning for Alzheimer's

Charitable Giving Under the New Tax Law

President Donald Trump signed the Tax Cuts and Jobs Act into law on December 22, 2017. While the new legislation redefined the tax brackets and eliminated personal deductions, it also changed the rules for charitable giving. Here are some of the changes you need to know in order to plan your donations appropriately for the upcoming year. Read more

The History and Facts of Estate Tax

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Estate tax in the U.S. is a contentious topic, and legislation surrounding estate taxes often fluctuates depending on the current political climate. This has caused estate tax to take many forms over the decades. In any case, it’s a good to know what you’re dealing with and how to handle it, so you can be better prepared when planning your own estate. Read more

Does Your Trust Really Work?

Have Your Family Trust Reviewed By An Expert

Why not have your family trust reviewed by a highly trained, expert trust attorney free of charge? Over 300 families meet with our attorneys every year to go over what they already have in place and consider making updates.  Some families have questions about their existing Trust documents. Recently a married couple came in for their free trust review.  Mom and Dad made a will and revocable trust when the kids were born years ago.  Time flies and now the “kids” are in their 30’s and they’ve been blessed with several grandchildren.  Mom and Dad now want their adult children to take care of things, rather than the (now aged?) aunts and uncles they chose 25 years ago. Those old documents must be revised to reflect this new reality! Sometimes starting a new business or changing jobs is the spark that highlights the need for new or different protection; do these changes fit into their estate plans or must we take a fresh look? Oftentimes our families reach out just because they’d like a refresher on the mechanics of the Trust or want to make a few specific changes to a relatively new trust.  Your complimentary trust review can answer those questions!

Sometimes families have a trust drafted by another law firm (hard to believe, but true!) and they just want a second opinion on that pile of papers they’ve been ignoring for the last number of years. Over 90% of these trusts (in our experience) will likely go through probate unless fixed. Now you’re wondering, “How can it be that most trusts fail?” The sad fact is that unless you, the client, do the hard work of retitling your property into your trust, changing beneficiary designations, and following through with the financial institutions, your trust will fail the most basic test: avoiding probate. Unfortunately, most law firms do NOT fund their own Trusts.  We do!

Another reality usually overlooked or dismissed by the unfortunate “head-in-the-sand” approach of ostrich-type estate planners is that of long term care! Typical trusts do not give you all the protections you deserve and thought you were getting.  Our “eyes-open” “no stone unturned” methodology means that your trust will shelter assets when you or your spouse is facing the bankrupting burden of long term care costs or the frustrating, ruinous drain of lawsuit expenses. Why not find out whether you are truly protected or living in reckless risk? Your free Trust Review means accurate, reliable information and solid, commonsense guidance to discover what type of trust is most appropriate for your family.  Call now or put it off for another year or so… we’ll be right here when you decide to take positive action!

Our LifePlan Workshop guests know how important it is to have the right Trust to secure the many benefits of comprehensive Trust planning. Trust assets not only avoid probate, Trusts also make it so much easier for the person you trust to maximize your life savings if you become incapable of managing your own assets. Our searching and exhaustive review is NOT limited to trust documents of course! All Estate Planning tools, including Wills, Financial and Healthcare Power of Attorney documents, and Designations of Funeral Representative are put under the microscope. Whether your documents were drafted by our office, or by other attorneys, you’ll get the straight story. Our recommendations, tailored to your unique needs, will be honest, clear, concise and comprehensive.

What Topics Besides Funding Do We Cover in a Trust Review?

At our Trust Reviews, we cover many topics. Clients ask a variety of questions and the answers we provide include the following information:

  • Who are your current and successor trustees?
  • What are the terms of your trust?
  • Who are your beneficiaries and contingent beneficiaries?
  • Does your Trust still suit your needs?
  • Do you have a current and properly drafted Durable Power of Attorney for Financial?
  • Do you have a current and properly drafted Durable Power of Attorney for Healthcare?
  • Has the law changed, and should your documents be updated to take advantage of a new law?
  • What changes have happened in your life that might require updating your trust documents, (death, marriage, divorce, births, substantial changes in your finances)?
  • Is your Trust Funded?

Trust Reviews in Grand Rapids, Michigan

If your family trust is in need of a review, contact the location nearest you to set up an appointment.

How Trusts Fail

Are You Missing This Vital Estate Planning Step?

Creating a trust without properly funding it is like opening a checking account and never depositing your paychecks. If you have questions or concerns about funding your trust, contact the Law Offices of David L. Carrier today.


Estate Planning Steps

Chef’s Specialty Event

We are a proud sponsor of this event supporting Meals On Wheels Western Michigan. Chef’s Specialty is one of Meals on Wheels Western Michigan’s signature events. This evening event is a time for our closest supporters and new friends to come together in a fun atmosphere to support seniors living healthy and independently in their own homes. This event has over 250 attendees and offers a cocktail reception with hors d’oeuvres, a cooking demonstration from Celebrity Chef Jenna Arcidiacono of Amore Trattoria Italiana, meaningful words from a client, raffle prizes, a photo booth, and of course, a few surprises along the way!

This year it’s a garden theme. Come dressed in your spring-time attire.

For more information, visit the Meals on Wheels website.

meals on wheels logo

Join Us for “A Night of Shopping” Benefiting The Walk To End Alzheimer’s

The Law Offices of David L. Carrier are hosting ‘A Night of Shopping’ open house to raise funds for The Walk to End Alzheimer’s. Join the community and shop to your hearts content. This event is free to attend.

10% of all purchases go directly to support the Alzheimer’s Association. Invite your friends, family, neighbors!

Find these and other outstanding direct selling retailers.

  • Premier Designs Inc.
  • Style Dots
  • Touchstone Crystal by Swarovski
  • Tupperware
  • LulaRoe
  • Thirty-One
  • Mary Kay
  • Arbonne
  • The Pampered Chef

WHEN: Thursday, April 26, 2018 6:30pm – 8:30pm
WHERE: The Law Offices of David L. Carrier, 4965 East Beltline Ave NE, Grand Rapids

No registration required. All are welcome and refreshments will be served!

Questions? Call your host, Kris Cleary at 616-361-8400 (work) or 616-216-7590 (cell)

table of merchandise at a night of shopping at the law offices of david carrier shoppers participate in a night of shopping benefiting walk to end alzheimers david carrier staff and shoppers participate in a night of shopping shoppers browse clothes and merchandise at the law offices of david carrier a booth at a night of shopping benefiting walk to end alzheimers

What Does the Tax Cuts and Jobs Act of 2017 Mean for My Estate Plan?

The Tax Cuts and Jobs Act of 2017 (TCJA) is understandably a mixed bag for many people. If you utilize a pass through LLC you may have received a tax cut, but you may have also lost some deductions and credits along the way. TCJA’s effects are likely different for every household based on a host of factors, from income to how you manage your deductions.

Double the Gift and Estate Tax Exemption

Although complete repeal of the gift and estate tax was part of the initial negotiations, it was eventually dropped from the final bill. That being said, the gift and estate tax exemption is being temporarily doubled as a consolation prize. Although temporary, this modification may be significant for some filers.

State and Local Tax (SALT) Deductions

If you were previously exceeding the new $10,000 cap on SALT deductions, you could potentially have some other options. Some filers may own businesses they can shift property taxes to, in which case the cap wouldn’t apply. You may also be eligible for a home office deduction.

Changing Domicile

It’s not uncommon for people in high-tax states to change their domicile to a low-tax state. Although our state taxes in Michigan aren’t as high as those in places like New York or California, this is becoming an increasingly popular option for people who have lost their SALT deduction.

Incomplete Gift Non-Grantor (ING) Trust

An incomplete non-grantor trust, if set up correctly in a low or no income tax state, can help some filers avoid their home state’s higher state tax rate. A non-grantor trust does not pass tax exposure on to the grantor. From an estate planning standpoint, if you put your assets into an ING, it will be viewed as an incomplete gift for gift tax purposes because the grantor is maintaining control of the assets, but a completed transfer in terms of your personal income tax. Because the gift is incomplete, it doesn’t count against your lifetime gift and estate tax credit.

529 College-Savings Plans

Although contributions to 529 College-Savings Plans aren’t considered part of your estate, you still retain control over them, including the power to name beneficiaries. To encourage college savings, the federal government even allows savers to group five years of gift tax exclusion into a single year. So a single person could potentially contribute $75,000 – or a married couple, $150,000 – in a single year and avoid gift or GST taxes as well as using up any of their gift tax exemption.

The new law adds even more flexibility to 529 plans because they can now be used to pay for elementary and secondary school expenses in addition to college.

Learn About Your Options

The Tax Cuts and Jobs Act of 2017 (TCJA) is having some complicated effects on tax and estate planning. That’s why it’s so important to review both with your CPA and your estate planning attorneys. If you have questions about the TCJA and how it may affect your estate plan, call the Law Offices of David L. Carrier at 616-361-8400.

 

https://www.cpajournal.com/2018/01/30/tax-cuts-jobs-act-might-change-estate-planning/

https://www.cnbc.com/2016/08/02/how-the-wealthy-use-ing-trusts-to-slash-the-state-income-tax-rate-they-pay.html

https://www.kraftcpas.com/articles/will-new-tax-law-impact-estate-plan/

Gift Planning for Every Age

Gift planning – also called “planned giving” – is a great way for individuals to schedule future financial gifts for their loved ones, nonprofits, educational institutions and other organizations. While many give for emotional reasons, gift planning can also provide the giver with financial benefits such as reduced tax rates and a guaranteed source of income.

No matter where you are in your life or what your financial situation is, there is a gift planning strategy for you. The following slides will show you which gift planning options are most appropriate during each part of your life.

Mid-Life: 40s-50s

In your 40s and 50s you may have appreciated assets that have gained value over time, such as stocks, that you wish to utilize. You may also be planning more actively for retirement.

Fortunately, salaries are at their highest during this period of your life – around $50,000 on average.1 Take advantage of this extra income with these planned gifts:

  • Life Insurance – You can name an irrevocable primary beneficiary and grant them sole ownership of your policy so they receive the full amount after your death, or you can split the policy between multiple entities so each receives a percentage of the policy.

 

  • Gift of Appreciated Securities – Securities are investments like stocks, bonds and mutual funds that can increase in monetary value over time. If you gift appreciated securities, you do not owe capital gains tax and you can save money with income tax deductions.

Later Life: 60s-70s

At this phase, you may have retired or reduced the hours you work per week. You may benefit from a steady, guaranteed source of income, especially if you have medical and housing payments.

The following gift options ensure you receive a constant stream of income when you need it most:

  • Charitable Gift Annuities – Make an up-front gift with cash, securities or property in exchange for a fixed income and tax deductions. When you pass away, the principal goes to the entity designated to receive the gift.

 

  • Charitable Remainder Trusts – In a charitable remainder unitrust (CRT), the giver receives income depending on the fluctuating value of their trust and can add more money to the trust at any time. In a charitable remainder annuity trust (CRAT), the giver receives fixed income and cannot add more money. You get income tax deductions, and the entire value of the trust goes to your designated beneficiary once the trust expires.

Golden Years: 80s-90s

In their 80s and 90s, people are coping with long-term care and housing payments. They are making the final adjustments to their finances so their money and assets go to the proper entities.

  • Real Estate – If you are downsizing or have multiple properties, you can gift this property. This can be highly advantageous as you can get a full market value income tax deduction and bypass capital gains tax.

 

  • Charitable Lead Trust – If you haven’t already, start a charitable lead trust. The money in the trust goes to charities until your estate taxes are reduced. Once the trust expires, the rest goes to your beneficiaries.

 

  • Re-Evaluating Previous Gifts – You want to make sure that all established gifts have up-to-date beneficiaries and ensure all legal documents are consistent with your wishes.

Get Help with Estate Planning from The Law Offices of David L. Carrier, P.C.

As you can see, there are numerous gift planning options for those who wish to put their money to good use both during and after their life. However, the tax benefits and results of each plan can be confusing without proper legal guidance.

Fortunately, the estate planning lawyers at The Law Offices of David L. Carrier, P.C. can help you determine which gift plan is best for your unique situation. We have faithfully served more than 10,000 Michigan families over the past 35 years – a huge testament to our success.

To get started, call us at 616-361-8400 today for more information.

 

Client Success Stories…

We were very happy with the information at the workshop on Estate Planning [LifePlan workshop]. Amanda was very helpful in explaining the options we could choose from to protect our assets from excessive taxes.

All questions were answered in depth and in a manner that was very understandable. I left feeling confident that we can contact them at any time for help navigating the system.

The staff are incredibly professional. My mother was treated with utmost respect. Her paperwork was organized and concise. I dealt with David and Jim and they spoke in terms my mother and I could understand.

I was totally lost when my husband’s dementia got bad. David and his group helped me feel in control again. They are there to help me whenever I need them. I should have done this sooner.

Perfect balance of pleasant and professional. Starting with workshops with targeted info, to chit chat with David (and all the staff we met) – great experience. Thank you!

My husband and I just returned from your workshop in Portage…We are so pleased we attended and came away with so much information and insight. The workshop was well organized, well presented and your staff was wonderful. Patrick made things fun, and as he promised, the time flew by. Thanks you again for 2 very well spent hours.

Donna & Stephanie are extremely professional, on top of everything, friendly and just a joy to work with. Very prompt on phone calls, emails, etc. I am very thankful for these two people!

We have been extremely pleased with the professional service of David and the staff. It has been a pleasure working with everyone to make sure our future is secure. David was also very helpful finding an out of state attorney to help our parent’s address their Elder law needs.

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“The Law Offices of David L. Carrier is an estate planning and elder law firm located in Western Michigan. Our main office is in Grand Rapids, and we have 3 other conveniently located offices in West Michigan. We specialize in medicaid crisis planning, estate planning, elder law, probate, wills and trusts.

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