Terrible, horrible, no good, very bad idea of NOT having a Will

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Person writing on paper

A last will and testament certainly sounds like a complex document. But, when boiled down, your will answers just three simple, yet important questions.

  1. Who do you want to inherit your assets?

A will provides for the orderly distribution of your property at death according to your wishes. By property, I mean everything you own. Your property includes both tangible and intangible things. An example of a tangible item would be your stamp collection. An example of intangible items would be stocks and bonds.

mom and daughter holding hands

  1. Who do you want to be in charge of carrying out your wishes as expressed in the Will?

In a will, you also name the “executor” of your estate. The executor is the person who’s responsible for making sure the will is implemented as written. Needless to say, this is a very important position, and you want to name someone you can trust completely, and you know to be responsible and competent.

  1. Who do you want to take care of your kids?

If you have minor children (i.e., kids under age 18), you’ll want to designate a legal guardian(s) who will take care of your children until they are adults. Also, a will can set up a financial trustee (may be the same as the guardian) who can oversee and be responsible for your child’s funds until they are old enough (and mature enough) to inherit property.

The Kids are Alright: Guardianship for Children

 

Without a Will, There’s No Way

Without a last will and testament, you’ve given no guidance to anyone about who should inherit your property, who should be in charge of carrying out your wishes, and who you want to be your kids’ legal guardian. Not having a will creates unneeded stress and heartache, and even total chaos, for your loved ones and friends. This distress would also come at the worst possible time—when they are mourning your passing.

Drafting a quality estate plan that incorporates your wishes and goals is the height of responsibility. And if estate planning sounds intimidating, fear not! We’ll walk through the five steps of estate planning together. The best place to start is with my Estate Plan Questionnaire.

I’d love to hear from you. You can email me anytime at gordon@gordonfischerlawfirm.com.

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Smart Estate Planning: Special Needs Trust

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Someone pointing into the sunset

Estate planning allows people to elect tools and strategies that makes life for their loved ones as uncomplicated as possible following death. Almost everyone I work with wants to ensure their family members are set up for success.

Dad holding daughter

One such estate planning tool to accomplish this is the handy dandy trust. There are almost limitless different types of trusts; trusts may be classified by their purpose, duration, creation method, or by the nature of the trust property. For instance, there is the fairly common “animal care” or “pet” trust. You can also place almost any asset imaginable in a trust.

Estate Planning: What About Trusts?

For some parents looking to help a son or daughter (minor or adult) with special needs, a trust can be a powerful avenue to continuing to support the loved one. (In this trust situation the child would be the beneficiary of the trust, the parents would be the settlor, and a trustee would be assigned.) Why? In general, the idea is that a special needs trust can use estate assets to enrich and enhance the child’s life while maintaining the individual’s viability for enrollment in public benefits programs. Examples of assistance programs can include Supplemental Security Income (SSI), Medicaid, subsidized housing, and vocational rehabilitation, among others.

Specifics of Special Needs Trust

Smart estate planning for special needs ensures that the parts of the estate which pass on to the individual with special needs are NOT considered an “available asset” by the associated agencies that disperse essential benefits. Many people make the mistake of leaving assets to a loved one with a disability through a will. This is problematic because acquiring assets, such as a significant lump sum of money, can disqualify your loved one from certain government assistance programs. By setting up a special needs trust, instead of solely using a will, you can avoid these issues. How? Because the trustee has total control over the management of the funds, and the beneficiary does not, government program administrators, like the ones from SSI and Medicaid, don’t “count” the trust assets when considering eligibility.

Show Your Kids You Love ‘Em with a Testamentary Trust

Beyond protecting the beneficiary’s eligibility for public benefits a special needs trust can also:

  • offer assured lifelong money management for the child; and/or
  • establish a pool of available funds in the future event that public benefits should be restricted or revoked.

Careful Drafting Required

It’s important to remember that details of each special needs trust will vary depending on factors like the beneficiary’s age, competency, and familial situation. Also, because of the complexities involved, special needs trusts require extremely careful drafting. So, If you’re even considering establishing a special needs trust as a part of your estate plan, it’s definitely necessary to speak with an experienced estate planning professional to make sure all of the nuances of the trust are executed properly.

9 Reasons You Need a Lawyer to Write your Estate Plan

Don’t hesitate to contact me with questions via email (gordon@gordonfischerlawfirm.com) or on my cell phone at 515-371-6077.

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New Nonprofits: Form 990 While Waiting for Tax-Exempt Status

spiral notebook

Submitting Form 1023 for “Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code” to the IRS is cause for celebration for any organization seeking that coveted tax-exempt status. While waiting for the determination letter from the IRS regarding the application, there can be many uncertainties regarding what to tell donors about donations, and what to do about other submissions, like Form 990.

What to do with Donors While Waiting for Tax-Exempt Status

For oversight and evaluation purposes, most nonprofits need to annually file Form 990 (Return of Organization Exempt From Income Tax) instead. Beyond aspects of the organization’s finances, Form 990 collects information related to practical and operational aspects like conflicts of interest, Sarbanes-Oxley compliance, and charitable gift acceptance. Submitting an annual filing is also essential to retaining the tax-exempt status.

When is Form 990 Due?

So, when is Form 990 due exactly? It depends on the end of your organization’s taxable year; the form is due the 15th day of the fifth month after the organization’s taxable year.  For most tax-exempt organizations that follow the typical calendar year (January 1 through December 31), this means Form 990 is due on May 15th every year.

notebooks on table

What Do New Nonprofits Need to Do?

What does this mean for new nonprofits and organizations waiting on the tax-exemption determination letter? Expect to submit a variation of Form 990 in the year following the close of the first tax year. This is the case even if the organization is still waiting on the determination letter from the IRS in regard to tax-exempt status.

So, for example, let’s say a nonprofit filed articles of incorporation with the Secretary of State and adopted bylaws in March 2019. The organization subsequently submitted Form 1023 to apply for tax-exempt 501(c)(3) status. In the governing documents, the organization’s tax year is established as the typical January to December. For this organization, they should expect to file Form 990 by May 15, 2020, with information related to the receipts for the 2019 operating year.

Form 990 Variations: Which Annual Return Should Your Nonprofit File?

Plan Ahead to be Prepared to Submit

The full Form 990 is over 10 pages (not including additional schedules and written attachments), so no doubt your organization should have a jump start on the process. The best way to be prepared, year after year to avoid a failure to file, is to have updated and applicable policies asked about on the form readily available to be referenced. I’m offering a great deal that features 10 policies related to Form 990 for $990. The rate includes a comprehensive consultation to discuss your organization’s need and a round of reviews so we can make certain the documents fit your organization’s needs.

Nonprofit Formation: Responsibilities to Consider

No matter what stage of the nonprofit process you’re at—from just getting started to hiring employees to board management—don’t hesitate to contact me with questions or challenges. I’m available via email (gordon@gordonfischerlawfirm.com) and by phone (515-371-6077).

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Framework for a Legacy: Your Art Collection & Estate Planning

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woman in front of painting

If you’re growing an art collection it brings up an interesting situation: how do you incorporate your prized pieces into your estate plan? Sure, you likely don’t have an authentic da Vinci, Renoir, or Klimt just hanging in your living room, but maybe you have a couple of pieces you inherited or a burgeoning modern art collection.

Value of a Passion

For most collectors the art isn’t about monetary value, but more so about a passion for a certain period, artist, or medium. Collecting is often an act of genuine appreciation for the fine arts. Considering both the intrinsic and market value of your art collection it’s ESSENTIAL you include it as a part of your estate plan. The collection is, after all, a part of your total estate’s value and they way it’s handled in your estate plan could impact the value of your gross estate in regards to the federal estate tax. When it comes to the estate planning goal of avoiding such taxes and fees the appraised value of your art is paramount to consider. Naturally, you want your collection to be well-treated following your passing, as well as retain its value.

Let’s go through some important steps and elements to consider.

Assemble Documentation

The value of the collection will be important to the estate plan. If you haven’t done so already, you must correctly catalog, photograph, insure, and appraise the collection. You should also gather all documentation such as appraisals and bills of sale that will need to accompany the artwork as it changes hands upon your estate plan’s execution.

Common Estate Planning Excuses and How to Avoid Them

Weigh Your Options

With an art collection, there are three main options for disposition within your estate plan (or to be executed during your life).

Donate

Donating your art to a charitable organization or a museum is an excellent way to practice smart charitable giving. It can also be one of the more simple options. Donate through your estate plan following your death and the estate will receive a tax deduction based on the current valuation. Give while you’re living and you can take an income tax deduction, also based on the value of the piece or collection at the time of the donation.

With this option, you and the recipient organization should agree to signed terms and conditions BEFORE the artwork delivery. Details can include specifics as to where and how the art is to be displayed if you want your name on the signage next to the painting and similar details.

Let’s Head Back to School! First Lesson is on Planned Giving

Bequest Artwork to your Loved Ones

Another common option is to keep the art within the family by passing along the art along to your estate’s heirs. Yes, you could gift each individual piece to each family member, but if you want to keep the collection intact you could transfer the collection to a trust you create while living that can be updated and changed during your lifetime. A trust is a solid estate planning tool that allows your named trust beneficiaries to avoid estate tax and probate complications and fees. In the formation of your trust, you can also define the terms for the care and condition of the artwork.

You could instead bequest the collection to an entity like an LLC you create. In this case, your heirs would own interest in the LLC instead of each owning a piece of art. In your estate plan and in the development of the entity you can appoint a manager (or multiple managers) who make sales or purchasing decisions for the collection.

Sell

It goes without saying that art is expensive—to buy and to sell. There are benefits (and detriments) to this option during life and after death, but waiting to sell until after death means the art’s value will be included in the estate. As such the capital gains tax could be lessened or entirely eliminated because the tax basis for the art collection is increased to fair market value at the time of death, instead of what you paid for the art/collection. If you instead would like to sell while alive you can likely expect to pay a capital gains tax on top of a sales commission fee and sales tax (among other potential fees).

Give, gift, sell—whatever option you choose, select a plan that allows you to feel at peace with where and to whom your collection is headed.

Enlist an Expert

Regardless of what option you want to pursue in the disposition of your art work, you need to work with an experienced estate planner who can help navigate the complexity of your estate. It’s your estate planning lawyer who can help you establish a framework for passing along your artwork to your chosen beneficiaries.

9 Reasons You Need a Lawyer to Write your Estate Plan

Discuss With Your Family

Depending on your family dynamic, discussing your estate plan with your loved ones can be difficult. It can bring up emotion and hard topics like mortality, however, to avoid litigation, mitigate in-fighting, and help determine what’s the best course of action forward for your property it’s necessary. When it comes to your art collection, your heirs may not feel the same way about the artwork that you do and knowing these opinions is critical in the decision of what to do with the collection.

When having the conversation, cultivate an environment in which your family can discuss openly and freely without judgment. You want their honest opinions as a part of your decision in what to do with your collection in the event of your passing.

art graffiti

Just as the art itself can be exceedingly complex, so can incorporating said art into an estate plan. You probably have questions; don’t hesitate to reach out at any time via email or phone (515-371-6077). I offer a free one-hour consultation and would love to help you protect your artistic assets through quality, individualized estate planning.

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Celebrate National Love Your Pet Day with Estate Planning

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Dog in dog house

When you own a pet, every day is a celebration of your furry/feathery/fuzzy friend…except maybe when they leave a stain on the new carpet. But, today is National Love Your Pet Day, which means it’s a special reason to celebrate! So after you’re done posing with your pup on Instagram, contact an estate planner about including Spot in your estate plan! Don’t worry, you don’t need to name your bunny or bird as a beneficiary in your will to include them as a part of your family. There’s a special kind of trust just for animals—known as a pet or animal care trust.

dogs on a dog walker's leash

Top Dog Benefit: Peace of Mind

It’s easy to establish but can make a world of difference for your animal companion if something were to happen to you. Of course, we would all hope that our families or friends would adopt our pets without hesitation and given them all the love in the world. But, for many reasons, that doesn’t always happen. An animal care trust gives you peace of mind that your pet will be provided for if you were to pass away or become incapacitated in a way that prohibits you from fully being able to care sufficiently for the pet.

Animal Care Trust: Continued Care & Love for Your Pet

Animal Care Elements: Consider These Questions

There are just a few key questions you should consider with an animal care trust.

  1. If something happens to you, who do you want to have guardianship of your pet? This caregiver should be a trusted someone that can give ample care and love to your pup. It’s a good idea to name a successor caregiver just in case.
  2. Who do you want to be the trustee of the trust? The trustee is the person who distributes trust funds and ensures that the pet’s caregiver follows the owner’s instructions as set out in the trust. For instance, you could designate your mother as the trustee and your brother as the caregiver. You can name a successor trustee if the first individual is unable or unwilling.
  3. Who would you like named as the remainder beneficiary of the trust’s funds? If your pet passes before the trust is exhausted, where would you like the money to go? This is a great opportunity to name an animal care charity which would put the money toward helping more animals!
  4. What are your pet’s standard of care and daily life? What do they like to do? You’ll want to detail things like health care needs (like medicine), food preferences, and activities they love (like playing catch or running alongside a bike). If you want your pet to visit the veterinarian for check-ups every six months, this can also be written in.
  5.  What features (breed/age/color/name) identify your pet? Identifying the dog in detail can prevent a guardian from replacing the original pet as a way of illegally extend trust distributions! (Not that they would…but just in case.)
  6. Do you have a preference for the disposition of your dog? This is optional, but you could choose to specify burial under a favorite tree in the backyard, or cremation.
  7. How much money do you want to set aside in the trust? This money is what will be used to provide care for your pet. You’ll also want to specify how the money will be distributed to the caregiver of your animal. Generally, this figure can’t exceed what may reasonably be required given your pet’s standard of living.
  8. Do you want to compensate the caregiver? If you wish, you can compensate the caregiver in their role. Generally, a small monthly or annual stipend is acceptable.

Note that a good estate planner will include “all present and future pets” in the pet trust with some specific verbiage. This is a bit of estate planning insurance, just in case you don’t have the chance to update your pet trust if you add a new animal to your family in the future.

Why Not Just a Will?

One questions I’ve received from pet parents in the past is: why can’t I just include my cat in my will? They have a point and they’re on the right track. Pets are considered personal property, so you can include them in your will with language such as, “My daughter will inherit my house and my hedgehog, Sonic.”

However, a will is a document that facilitates transfers of assets—it doesn’t enforce demands tied to the property. Instructions in a will are unenforceable, there is nothing to stop the pet caregiver to ignoring instructions in a will completely. But, in an animal care trust, you can hone in on specific habits and behaviors such as: Rover eats X certain kind of dog food and should be taken to a dog park at least once a week. If the caregiver didn’t feed Spot a certain kind of dog food or take him to the dog park, the trustee could get the caregiver’s status revoked and the pet would transfer to the successor guardian.

Close up of dog licking camera

Unlike a specific trust, a will doesn’t address the possibility that your pet may need to be cared for by a guardian if you become incapacitated. Additionally, wills go through the probate process and the property transfer is not immediate. Where will the pet reside during this process? If litigation over the estate occurs who is caring for the pet.

Unlike a testamentary trust for children in a will, the document doesn’t allow don’t allow for disbursement of funds over a pet’s lifetime. If you bequest funds to your intended animal guardian it would be distributed all at once and there’s nothing to stop that individual from using the money on themselves and selling your pet.

In terms of opportunity for fund disbursement, specific instructions, and a clear cut contingency plan if your initial named guardian or trustee doesn’t work out, the animal care trust is a superior estate planning tool for your pet.

That all being said, you DEFINITELY need a will as a part of your estate plan. It just that a separate animal care trust will best compliment the other estate planning documents for this particular and important part of your life.

If You Die What Happens to your Cats?

Tail Wagging Trust

Share this infographic with fellow pet lovers, and let’s discuss how to structure your personalized animal care trust. Contact me via email or phone (515-371-6077) to get started!

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What to do with Donors While Waiting for Tax-Exempt Status

man questioning computer
Applying for tax-exempt status from the IRS is both exciting and an anticipatory waiting game. Even if you answer every question on Form 1023 and pay the correct filing fee it can take about 180 days to get a determination letter—the official notification that the organization meets the federal tax exemption as a 501(c)(3) nonprofit.
One of the key reasons entities choose to apply for that coveted tax-exempt 501(c)(3) status in the first place is so that they can offer donors the option to claim a tax deduction on donations. So, what are you supposed to say to donors in that bureaucratic purgatory between incorporation and submitting Form 1023 and waiting for the actual green light go-ahead to say you’re a tax-exempt organization?
The good news is that while your application is pending, the entity can treat itself as exempt from federal income tax back to the date of organization. This would be when the articles of incorporation were filed with the Secretary of State’s office.
That said, there is a big however when it comes to donors. Contributions do not have assured deductibility during this in-between period.
If the applicant entity is eventually granted tax-exempt status, then any donations made during this time period would be tax-deductible for the respective donors. But, if the entity is ultimately not granted federal tax-exemption, then any contributions made during the in-between period will not be tax deductible for the donor.
In the spirit of transparency, the uncertain status of donations (whether they are tax-exempt or not) should be something leaders of organizations should share with donors during this period. If appropriate, organization leaders can indicate that they have every reason to believe the donations in the interim period will be tax-deductible after 501(c)(3) status is achieved, but cannot be guaranteed in the present. Nonprofit pros will also want to indicate they will notify current donors about any status change following the determination letter. It’s also a good idea to implement a gift acceptance policy from the start.
I’m happy to help guide interested nonprofit leaders through the application process and then assist with all of those legal uncertainties and compliance requirements on the way to successful change-making. Don’t hesitate to contact me via email (gordon@gordonfischerlawfirm.com) or phone (515-371-6077), no matter what step along the way you are.
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Happy Presidents Day: Learn From George Washington’s Estate Plan

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george washington figurine

Happy Presidents Day! Even if you don’t have today off of work on this federal holiday, it’s a good day to think about the first and pretty incredible leader of the United States, George Washington. First recognized by Congress in 1885, the holiday was first celebrated on Washington’s birthday, February 22. Eventually, the day shifted to the third Monday in February after the Uniform Monday Holiday Act. Instead of celebrating by chopping down a cherry tree (just kidding, that’s a myth), consider the ways Washington’s own estate planning can inspire you to get your affairs in order.

“Human happiness and moral duty are inseparably connected.”

Washington Wrote His Own Will

Acknowledging Washington wrote his own will is probably a terrible point to start on, as I cannot encourage you to write your own estate plan. There are so many ways that this can go wrong from lacking requisite formalities, mistaking property laws, and risking the document being found entirely invalid. All of these errors can result in a situation that causes your loved ones heartache, confusion, and can maybe even lead to litigation. But, history is what it is.

Washington wrote his own will and dated it July 9, 1799, not long before his death on December 14 that same year. However, considering Washington was one of the wealthiest presidents of all time if he were living today, he would definitely want to enlist a team of professional advisors to make sure all of his assets were accounted for and passed on in a tax-strategic way.

9 Reasons You Need a Lawyer to Write your Estate Plan

Washington Made Two Wills

Washington was a smart man, clearly. He had, not just one, but two last will and testament documents! Of course, you don’t need and shouldn’t have two estate plans, but you should update your estate plan regularly when changes may affect your estate plan’s effectiveness or determine who you include as a beneficiary, executor, or guardian.

Washington was apparently on his deathbed when he asked his wife, Martha, to bring him both editions of his will. He had her burn one so the “real” one wasn’t competing against the other version. Again, it’s the principle that sometimes you need to make important changes to your plan that’s important here!

Estate Planning Basics: What You Need to Know, but Were too Bored to Ask

Washington Included His Charitable Goals

Washington left the entirety of his estate to his wife. However, he also wanted to benefit the causes he cared most about. Washington was concerned about American youth being sent to Europe for formal educations and wanted to benefit higher education institutions in the growing United States. He left 100 shares he held in a company called James River Co. to help, what ultimately became, Washington and Lee University. He also left 50 shares in a different company to endow a D.C. university (which never came to fruition).

Like Washington, you too can give to the charitable organizations and causes you care about by naming them in your estate plan as beneficiaries of certain amounts of money or of a certain percentage of your estate.

YOU Are a Super Hero: Charitable Giving Through Estate Planning

Washington Chose His Executors Wisely

Most folks I work with only choose one or two main executors of their estate plan, and then also name an alternate or two if the first choice doesn’t work out. Washington named a full seven executors to oversee that his wishes and dispersion of property was carried out. His executors included his grandson, five nephews, and his wife.

4 Major Reasons YOU Need a Will

In Washington We Trust

Probate can take a long time, especially if you pass away intestate (without an estate plan). But Washington’s estate, unfortunately, took an excruciatingly long time to be completely settled. For reasons unknown, appraisal of the estate wasn’t filed with the court until 1810! And then, the estate was not fully closed until 1847. Yikes. If you would the majority or all of your estate to avoid probate, you may want to consider a trust of some sort.

Funding and Administering Your Living Trust

Power to the People…To Make Their Wishes Known

As Washington said, “It is better to offer no excuse than a bad one.” Drop the estate planning excuses! You don’t need presidential power to make a quality estate plan that meets your goals. One of the easiest ways to get started with my free, no-obligation Estate Plan Questionnaire.

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Love & Estate Planning: A Match Made in the Perfect Playlist

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headphones and pink flowers

Speaking of the most romantic holiday of the year, I’ve really LOVED writing the #PlanningForLove series in the lead up to Valentine’s Day this year. We’ve been able to cover some super important aspects of an estate plan and how, oddly enough, estate planning is one of the ultimate expressions of love.

I have no doubts that after reading posts on how you can show love to your spouse, pets, and even yourself through estate planning you are ready to take the first step and fill out my (free) Estate Plan Questionnaire. Thinking about your estate’s executor, beneficiaries, and charitable bequests can only be made better with a special Gordon Fischer Law Firm Valentine’s playlist. (You can also check out my other estate planning-inspired playlist while you’re at it!)

What are your favorite love songs of all time I should add to this playlist? Let me know in the comments below. (Also, I apologize if “My Heart Will Go On” is now stuck in your head.) Want to discuss your estate planning options? Don’t hesitate to contact me via email or phone (515-371-6077).

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Estate Planning: On Valentine’s Day Skip the Heart Box & Go for Secure Storage

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bowl of heart candy

Thanks for reading the #GoFisch blog! Now through February 14 I’m sharing how flowers, jewelry, or chocolate are not the only gifts that say, “I love you.” While not explicitly romantic, a personalized, quality estate plan speaks to that lifelong consideration and care be it for your significant other, your children, or even simply yourself. 

Typical Valentine’s Day gifts usually come in the expected packaging—velvet or heart shaped-boxes topped with silky ribbons and complete with a red rose or a sappy card. But, an estate plan is not your typical Valentine’s present and therefore needs some special storage. You’re more than welcome to put a bow on the documents following the signing…finishing your estate plan is something worth celebrating! However, a gift bag won’t do for safely and securely protecting your estate plan.

Roses are Red, Violets are Blue, Valentines to Inspire Estate Planning for You

I give my clients guidance on where to store their original estate plan documents because it should be both be kept private and safe, but should still be practical and accessible by those who need it such as your will’s executor or designated representative for financial matters. So, where specifically should your keep your original estate plan? There are a few different options.

In Your Home or Office

office space with flowers

When you think accessibility, the places you spend the majority of your time, such as your home or office, are going to be obvious choices. Some of my clients who’ve chosen this option even invested in a water- and fire-proof safe. (Of course, if you get a safe, folks who need to access the estate plan, such as a spouse or child, obviously need access to the lock combo!) In any case, put the plan in a spot that’s likely to be protected from flooding or fire. For example, a dark, dank basement may not be the best place to keep your original estate plan documents. However, in your home office, in your desk’s top locked drawer (assuming others have a key), would be a much better spot.

Caution: No Treasure Hunts

Some people think “hiding” their will is a solution to any security concerns. This, however, inhibits accessibility! Sure, people may not be able to find your will while you’re living, but that also means your loved ones are unlikely to find it when they need it in the case that you suddenly pass away or are incapacitated and cannot communicate where it is. This is problematic for multiple reasons. First, your wishes cannot formally be known and therefore not fulfilled, and if the document cannot be found, the presumption is you either did not make a plan or you intended to revoke/destroy it. In the case of your death, the court will then act as if you died “intestate,” or without a will. The long probate process will ensue, and after some substantial court fees, your estate will pass to your heirs-at-law as determined by state law. (Almost everyone I’ve ever met would have their estate pass according to their terms and not some impersonal law.)

Doctor Directive: Place Important Estate Planning Documents on File

Safety Deposit Box

 

I know many folks who keep their important documents like birth certificates and social security cards in their safety deposit box. And when it comes to your original estate plan documents, your safety deposit box is a good option. Except, and this is hugely important, the safety deposit box must be readily accessible by executors, agents, and other fiduciaries. This requires making sure that your bank or credit union has the “right people on file.” Also, don’t assume that just because both you and your spouse have access to the safety deposit box, that is sufficient. What if there’s a joint accident or joint disaster and you’re both incapacitated? Sit down and talk with your bank or credit union to make absolutely certain those who need access to the safety deposit box will definitely have access in case of an emergency. Otherwise, a court order may be required before your financial institution will grant access, which equates to more bureaucratic hold-ups costing time, money, and even worse, adding additional stress for loved ones.

safety deposit box

 With Your Designated Representative

So far, we’ve been talking about your original estate plan documents (with “wet” signatures). An original is always better than a copy. But a copy is better than nothing.  Consider giving a copy of your estate plan to the executor of your will or successor trustee of your revocable living trust, and other named fiduciaries.

The person you designate as your personal representative has the important job of settling your estate and they will need to be armed with your estate plan in order to reference your wishes and provide proof that they are authorized to take certain actions. This option makes a lot of sense considering this representative will have immediate cause to reference the paperwork following your death.

two people drinking tea

Up in the Cloud

I always recommend you retain a paper copy of your original estate plan, but there are many valid and secure options of also storing your key documents in the digital cloud. Like any financial, health, or other personal information accessible online, make certain you have a strong password and security. And, just like a paper version, at least your executor and other designated representatives will need to be able to access the plan when necessary. Whether that’s through an online beneficiary designation or by allocating the password to your executor or another trusted custodian, that’s up to you.

The Best Valentine’s Date Isn’t What You Think

To recap: an estate plan can make a wonderful Valentine’s Day gift that shows love and commitment to your favorite people. And, since you spent time, effort, and money to create an estate plan that meets your goals, it’s essential to keep it in proper storage. Remember: if no one knows you created a plan or no one has access to it, it’s as if you never had one at all.

Before you can store your estate plan, you NEED an estate plan! The best place to get started is with my Estate Plan Questionnaire, or contact me.

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Animal Care Trust: Continued Care & Love for Your Pet

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cute puppy

In the lead up to Valentine’s Day, I’m exploring here on the blog how love can translate to estate planning. Thus far we’ve covered the best V-Day gift to give your spouse, advice on where to store your estate plan (and it’s not a chocolate heart box!), and how an affinity for football makes understanding estate planning easy. Romance and gift guides aside, this #PlanningForLove series would be incomplete without featuring the love for your pet.

Let’s be for real for a minute. The relationships we have with our pet(s), be they a dog, cat, amphibian, pocket piglet, parrot, or pony are some of the most comforting and consistent. Who else will lick your face, eat snacks out of your hand, demand belly rubs, or get the most Instagram likes? Our pets are a part of our family and it only makes sense to include them in estate planning documents and decisions concerned with the continued care for our loved ones.

cat with flowers

The best way to include your furry and feathered friends in your estate plan is with an animal care trust (sometimes known as a pet trust). This is a special kind of trust different from a living revocable trust or an inter vivos trust. An animal care trust specifically provides for the care of your pet in the event that something were to happen to you. In the trust you’ll likely want include the following information:

  • Sufficiently identify your pets and include a provision that describes your pets as a class through phrasing such as  “the pet(s) owned by me at the time of my death or disability.”
  • Describe your pet’s standard of living, care, and include any regular and special instructions. You can get as specific or general as you want at this point. For example, if your bird only likes a particular brand/type of food, or your dog thrives when she plays catch once a day, this can be specified in a trust agreement. If you want your pet to visit the veterinarian for check-ups three times a year, this can also be written in.
  • Determine the amount of funding that’s needed to adequately cover the expenses for your pet’s care. Generally, this figure can’t exceed what may reasonably be required given your pet’s standard of living.
  • Designate a trustee, caregiver, and remainder beneficiary. Also, designate successor trustees and caregivers if for some reason either becomes unable or unwilling to fulfill their role. The remainder beneficiary is who receives the trust assets if trust funding outlives the beneficiary (your pet).
  • Specify how the funding should be distributed to the caregiver from the trust.
  • Provide instructions and wishes for the final disposition of your pet (for example, via burial or cremation).

Check out and feel free to share this infographic with your fellow pet parents. (Click here to see the pdf version.)

gordon fischer law firm animal care trust

Valentine’s Day is coming up, so let’s discuss how to show your continued love for your pets, even if something unexpected were to happen to you. Contact me via email or phone (515-371-6077).

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