Does Healthy Lifestyle Have an Impact on Memory Decline?

March 1, 2023

People 60+ who had at least four of six favorable lifestyle factors — healthy diet, exercise, social contact, cognitive activity and no smoking or drinking — had slower memory decline than those who had no more than one healthy factor, according to Jianping Jia, MD, PhD, of Xuanwu Hospital of Capital Medical University in Beijing, and co-authors.

MedPage Today’s recent article entitled “Memory Decline Tied to Lifestyle Factors” reports that over 10 years, memory decline was 0.28 points less on the Auditory Verbal Learning Test (AVLT) in the favorable lifestyle group compared with the unfavorable group, Jia and co-authors reported in The BM.

People who carried the apolipoprotein E ε4 (APOE4) allele also had slower memory decline with a favorable lifestyle or an average lifestyle with two or three healthy factors compared with an unfavorable one. Similar results were seen for non-APOE4 carriers.

“APOE4 is the strongest known risk factor for Alzheimer’s disease and related dementias, and within the context of ongoing and future targeted prevention trials, this outcome is particularly important,” noted Séverine Sabia, PhD, of Université de Paris, and Archana Singh-Manoux, PhD, of University College London, in an accompanying editorial.

“These results support the notion that lifestyle change might counteract the deleterious effect of APOE4 on cognitive decline and dementia,” Sabia and Singh-Manoux added.

Prior studies showed that APOE4 affects cognitive decline. However, it doesn’t negate all the benefits of a healthy lifestyle. In the U.S., healthy lifestyle scores in midlife have been associated with better cognition in later years, even among APOE4 carriers. In the FINGER trial, APOE4 carriers who participated in an intervention comprising diet, exercise, cognitive training and vascular risk management performed better than controls on annual cognitive tests.

Jia and co-authors analyzed data for about 29,000 adults who initially tested normal for cognitive function. Mean age was about 72; 48.5% in the study were women, and 20.4% were APOE4 carriers.

They measured immediate recall, short-delay and long-delay recall, and long-delay recognition. Of the six healthy lifestyle components, diet had the strongest association with memory, then cognitive activity, physical exercise and social contact.

“Although each lifestyle factor contributed differentially to slowing memory decline, our results showed that participants who maintained more healthy lifestyle factors had a significantly slower memory decline than those with fewer healthy lifestyle factors,” Jia and co-authors wrote. “This information could be useful in making personal choices that can help to protect against memory decline, and our results provide further evidence that memory loss is potentially modifiable.”

Cognitive decline is likely affected by several variables, Sabia and Singh-Manoux observed.

“The multifactorial risk paradigm introduced by the Framingham study has led to a substantial reduction in cardiovascular disease,” they pointed out. “A similar approach should be taken with dementia prevention, identifying not only the factors that matter most but also the threshold at which they matter, and the age when intervention is likely to be most effective, as the World Health Organization underlined in its recent report on brain health.”

Reference: MedPage Today (Jan. 25, 2023) “Memory Decline Tied to Lifestyle Factors”

What Should I Know About Probate Costs?

February 27, 2023

The cost of probate depends on several factors. One of the most important is the state where the decedent lived. The cost of probate varies from state to state, depending on the general cost of living in the state and state probate laws. Other factors also impact the cost of probate.

Nasdaq.com’s recent article entitled “How Much Does Probate Cost?” provides a breakdown of fees associated with probate. The process of probating an estate will settle the estate after the decedent’s death and following their last will and testament. It’s also used for those who die without a will or intestate. Assets owned only by the decedent are usually addressed in the will and are distributed according to the decedent’s wishes. An executor is usually named in the will, and an administrator of the estate is appointed in the case of a decedent dying intestate. The executor takes an inventory of the decedent’s assets, pays the decedent’s outstanding debts and presents the inventoried estate to the court for settlement. If there are no objections to the will, the estate is closed. If there are objections, the probate judge is responsible for settling them. The longer the probate process drags on, the more expensive it will be.

Probate can be a time-consuming process. A modest estate may take six to 24 months to settle. Larger estates can take even longer, if they’re complex. It also necessary to add in more time if the will’s contested or beneficiaries can’t be found. The longer the process, the more expensive it becomes. Probate costs in 2021 run about 3% to 8% of the value of the estate. Let’s look at the key costs of probate:

Court Costs. This includes filing fees. Some states require the same filing fee for all estates, while others have a graduated scale depending on the size and complexity of the estate. The more complex the estate, the higher the court costs.

Executor Costs. The executor of a will is typically paid at least a nominal fee. Fees are mandated by state law, unless the decedent specifies in his or her will what the executor should be paid. Some states permit a flat and “reasonable” fee which may be determined by the court. Other states require a graduated fee, such as a certain percent of the estate for the first $100,000 and so on. If the will doesn’t state the executor’s fee or if the decedent dies intestate, the court determines the executor’s fee.

Accounting Fees. Accounting costs can be high with more complex estates. If the decedent has complicated business affairs to sort out or owns many stocks and other securities, the complexity will require higher accounting fees. The accountant will also have to file federal and state taxes in the form of a final return.

Attorney Fees. When the executor believes an attorney is needed, the attorney is paid out of the estate. Attorney’s fees can be state-mandated, determined by the court, or set by the attorney depending on the anticipated workload.

Estate Administration Fees. The executor will often incur significant costs of administering the estate, such as property appraisals, and a real estate agent may have to be hired and paid to dispose of property or businesses. A property may also have to be managed until it’s sold or the estate is closed.

Reference: Nasdaq.com (Feb. 2, 2023) “How Much Does Probate Cost?”

Who Inherits TV Broadcaster Barbara Walters’ Estate?

February 25, 2023

Vim Buzz’s recent article entitled titled “Who Will Inherit Barbara Walters’ Estate?” says American broadcast journalist and television personality Barbara Walters also rose to fame and received praise for speaking with people like Hugo Chavez, Fidel Castro, Anwar Sadat, Menachem Begin, Katharine Hepburn, Sean Connery, Monica Lewinsky and Vladimir Putin.

She hosted a number of television shows, including Today, the ABC Evening News, 20/20 and The View.

Walters was well known for her interviewing skills and popularity with viewers.

Her “coming out of retirement” for a special 20/20 interview with Peter Rodger, the father of the murderer of the 2014 Isla Vista shootings, Elliot Rodger, was announced on June 10, 2014.

She spoke in-depth with presidents and their wives, like Richard and Pat Nixon and Barack and Michelle Obama. In fact, she spoke with every sitting president and first lady of the United States during her tenure.

She also spoke with Joe Biden and Donald Trump, but not when they were president.

The newscaster’s estate will be inherited by her family. Chief among her assets was a Florida retreat she purchased in 2014. That was the same year she announced her retirement.

However, the property was placed on the market shortly after her dementia diagnosis took a turn for the worse.

She purchased the three-bedroom, four-bath waterfront condo in Naples for $3.4 million.

Just two years later, in April 2016, she transferred the unit to her daughter, Jaqueline Dena Guber.

The 54-year-old Guber subsequently listed the home three months later for $6.78 million. The home spent time on and off the market until September 2018, when it sold for $5.35 million.

The complex is called Moraya Bay. This luxury building has a concierge service, a private beach club, a large state-of-the-art fitness center and full security.

However, in New York City, Walters had lived in the same Upper East Side apartment overlooking Central Park since 1989.

An ABC program titled “Our Barbara” aired on January 1, 2023, and a 20/20 senior producer remarked, “For a lot of years, we maintained a close eye on Barbara.

Her final public appearance was in 2016, and her final on-air interview was with Donald Trump for ABC News in December 2015.

Reference: Vim Buzz (Jan. 3, 2022) “Who Will Inherit Barbara Walters’ Estate?”

Does Will Have an Expiration Date?

February 20, 2023

Nj.com’s recent article entitled “Do I need to change my will if it’s about 10 years old?” explains that there’s no expiration date on a will.

However, as your family and financial situations change, let alone as laws change, wills may need to be updated to reflect these changes and better reflect your intent.

If the changes are minor, they can be reflected in a codicil. That’s a separate document changing the will.

Codicils can be used to keep a will current and up to date. They’re separate documents from wills—and serve as an addendum to the will.

The use of a codicil dates back to ancient times when, for instance, an heir needed to be named.

The requirements for a codicil vary in each state, and like a will, most states require two witness signatures for codicils, while some states allow the document to be notarized.

In contrast, significant changes should be done by having a new will prepared and executed.

Sometimes, even minor changes may involve preparation of a new will.

For instance, in the original will you may have excluded a beneficiary who you now want to include. However, don’t want the beneficiary to find out they were originally excluded.

If you sign a codicil, the previous exclusion will be obvious. However, with a new will, the old will and previous exclusion will remain undisclosed.

Don’t mark up or hand-edit an original will because that will make it hard or impossible to probate. It will probably require a court proceeding to have the will accepted for probate.

Finally, some financial institutions have problems with older wills, so you may want to inquire about their policies to make sure there won’t be trouble after you pass away.

Reference: nj.com (Oct. 22, 2022) “Do I need to change my will if it’s about 10 years old?”

What Was in Ivana Trump’s Estate Plan?

February 17, 2023

Newsweek’s recent article entitled “Ivana Trump Gives Nanny Who Raised Kids $1 Million as Donald Gets Nothing” reports that Dorothy Curry worked for the Trump family for decades. Ivana Trump left her a Florida condo estimated to be worth over $1 million, Forbes reported. Ivana left behind assets worth a total of $34 million.

Ivana, who died in July at the age of 73, wrote about Curry in her 2017 book Raising Trump and said that she started as a nanny “with a sparkle in her eye and plenty of nervous energy.” Curry reportedly taught the Trump kids prayers Ivana didn’t know in English.

The former nanny is also expected to receive Ivana’s dog, a Yorkshire named Tiger Trump.

The Trump family appeared to have thought greatly of Curry, who later worked as Ivana’s assistant for years. Eric Trump said in his mother’s book that he thought of Curry as his “second mother” and recalled the time they spent together in her native Ireland.

“She’s raised me since I was a baby, and we are incredibly close—inseparable. I love her immensely. She’s a big, and very important, part of our family,” he said in the book, according to The Federalist.

Ivana died from an accidental fall at her Manhattan house, according to the New York City Office of Chief Medical Examiner. The death was ruled was accidental. First responders found her unresponsive at the bottom of a staircase at her house and she was pronounced dead at the scene, according to ABC News.

Her ex-husband expressed his sadness over the death of his ex-wife. “A very sad day, but at the same time a celebration of a wonderful and beautiful life,” he wrote at the time.

“I will be leaving shortly for the funeral service of Ivana. She will be laid to rest today. This will not be easy.”

“She had brains; she had beauty. She was the embodiment of the American dream… she was a force of nature, could beat any man down the slopes, any woman on the runway,” Eric Trump said during the service, according to a Mail Online report.

“She ruled the three of us [kids] with an iron fist but also a heart of gold,” he said.

Reference: Newsweek (Jan. 16, 2023) “Ivana Trump Gives Nanny Who Raised Kids $1 Million as Donald Gets Nothing”

What Is Inheritance Theft?

February 16, 2023

Inheritance theft is sometimes a very real issue for those who inherit money, property, or other assets. Inheritance theft laws exist to protect heirs and beneficiaries. If you’re going to receive an inheritance or have received one that was stolen from you, it’s important to know your legal rights and how to get those assets back.

Yahoo’s recent article entitled “Someone Stole My Inheritance. What Are My Options?” says inheritance theft can take different forms, and some are more obvious than others. Some common examples of inheritance theft or inheritance hijacking include:

An executor of a will who steals or attempts to conceal assets from the estate inventory
A trustee who diverts assets from a trust for their own use or benefit
Executors who charge excessive fees for their services
Abuse of power of attorney status
Use of coercion or undue influence to force a will-maker or trust grantor to change the terms of their will or trust; and
Fraud or forgery related to the will or trust document or the destruction of the documents.

Inheritance theft can also occur on a more personal level. Perhaps your sister and you share caregiving duties for your aging mother. Your sister has access to your mother’s bank accounts and—without your knowledge—takes out a large sum while your mother is still living. Your mother then names you as the executor of her will. When she dies, you create an inventory of her assets, as required. While doing so, you discover the missing funds from her bank accounts. If you and your sister were supposed to have inherited those assets jointly, this could be a violation of state inheritance theft laws.

People who commit inheritance theft may be subject to both criminal and civil penalties. A caregiver who steals money from someone’s bank accounts or coerces them into signing over other assets could also be charged with a felony or misdemeanor crime.

The injured heirs or beneficiaries may also opt to pursue a civil claim against someone they believe has stolen their inheritance.

Reference: Yahoo (Jan. 18, 2023) “Someone Stole My Inheritance. What Are My Options?”

Is Handwritten Instruction in Bible Valid to Update a Will?

February 14, 2023

The Tennessee Court of Appeals held that a handwritten instruction in a Bible that included only the first name of the writer was a valid codicil that changed a will

The ABA Journal’s recent article entitled “Bible note changed writer’s will, Tennessee appeals court rules” reports that the case concerned the will of Micki D. Thompson and her instruction regarding a gift to Albert Read Lewin.

In a Bible owned by her executor, a close friend, she’d written below the date: “Albert Read Lewin—shall receive $3,000 per month for life—This is appreciation for his care and complete dedication to Micki and her welfare. He gave All in making her life.”

There wasn’t a separate signature beneath the instruction. The Bible was found with Thompson’s personal property.

The parties agreed that the handwriting was Thompson’s, and that she was of sound mind when she wrote the statement that referred to herself in the third person.

However, a trial judge ruled that the writing didn’t meet the Tennessee law’s requirement for a signature for holographic wills.

The law states: “No witness to a holographic will is necessary, but the signature and all its material provisions must be in the handwriting of the testator, and the testator’s handwriting must be proved by two (2) witnesses.”

However, the Tennessee Court of Appeals reversed and found that Thompson’s insertion of her first name within the body of the handwriting satisfies the signature requirement.

When a name is inserted at some point in a holographic will that is not signed by the testator, the presumption is that the writer didn’t intend the writing to be a will. However, the presumption may be rebutted, the appeals court said.

A holographic will is a handwritten and testator-signed document.

In this case, the trial court had found that the inscription demonstrated Thompson’s intent. The facts overcame the rebuttable presumption, the Court of Appeals concluded.

Reference: ABA Journal (Oct. 28, 2021) “Bible note changed writer’s will, Tennessee appeals court rules”

What Happens When Property Is Owned Jointly and an Owner Dies?

February 2, 2023

When property is owned jointly, the property may pass automatically to the other owner, passing without going through probate, according to a recent article titled “Everything you need to know about jointly owned property and wills” from TBR News Media

Your will only concerns assets in your name alone without a designated beneficiary. Let’s say you have a joint checking account with another person. On your death, the account automatically becomes the property of the surviving owner. This is outside of probate, and any directions in your will won’t apply.

Real estate is most commonly owned jointly, in several different ways and each with its own set of laws.

Joint Tenancy or Joint Tenancy with Rights of Survivorship. On the death of a joint owner, the owner’s share goes to the surviving joint owner. Simple. The main advantage is the avoidance of probate, which can be costly and take months to complete.

Tenancy by the Entirety. This type of joint ownership is only available between spouses and is not used in all states. A local estate planning attorney will be able to tell you if you have this option. As with Joint Tenancy, when the first spouse passes, their interest automatically passes to the surviving spouse outside of probate.

There are additional protections in Tenancy by the Entirety making it an attractive means of ownership. One spouse may not mortgage or sell the property without the consent of the other spouse, and the creditor of one spouse can’t place a lien or enforce a judgment against property held as tenants by the entirety.

Tenancy in Common. This form of ownership has no right of survivorship and each owner’s share of the property passes to their chosen beneficiary upon the owner’s death. Tenants in Common may have unequal interests in the property, and when one owner dies, their beneficiaries will inherit their share and become co-owners with other Tenants.

The Tenant in Common share passes the persons designated according to their will, assuming they have one. This means the decedent’s executor must “probate” the will and file a petition with the court. However, a Tenant in Common may be able to avoid probate if their share of the property is held in trust, in which case the terms of the trust and not their will controls how the property passes at death. In this case, there’s no need for any court involvement.

There may be capital gains consequences when transferring ownership interests during and after life. Such gifts should never be made without speaking with an estate planning attorney. One of the more common errors occurs when the testator fails to account for the different types of ownership and how assets pass through the will. A comprehensive estate plan, created by an experienced estate planning attorney, ensures that both probate and non-probate assets work together.

Reference: TBR News Media (Dec. 27, 2022) “Everything you need to know about jointly owned property and wills”

Do I Need a Spendthrift Trust?

January 27, 2023

There are situations when you want to care for your children in your will. However, you know they’d just blow their inheritance in just a few years. That’s when a spendthrift trust is useful. This type of trust has restrictions that protect immature heirs from both themselves and potential creditors.

US News’ recent article entitled “What Is a Spendthrift Trust?” explains that a spendthrift trust lets you leave funds to a beneficiary, without giving them full control over those funds. Instead, a trustee is given the authority to distribute funds for the benefit of a beneficiary.

This type of trust is created to protect a beneficiary from squandering the wealth bequeathed to them or was left to them

Speak with an estate attorney and talk in detail about your concerns. Ask the attorney to draft this document for you.

The attorney can write into the trust certain rules, such as that an heir may be required to reach a certain age before they start receiving payments, or that the heir receives installments at certain life stages.

If you have an heir or someone you want to leave an inheritance who is immature, irresponsible, or underage, a spendthrift trust can give you some control and power over how and when the money is spent.

A spendthrift trust can also try to limit access to the funds by creditors. The objective is to keep other people from accessing the funds set aside for the beneficiary.

It’s the goal of the original trust creator to protect their beneficiary’s assets from other people. This might be a creditor or even an ex-spouse.

Note that the laws regarding spendthrift trusts vary from state to state, so work with a local estate planning attorney.

The ability of a creditor to access assets in the trust will to depend on state law. Every state has different rules regarding their respect for the spendthrift trust.

One of the critical tasks in setting up a successful spendthrift trust is the person who is named as the trustee of the funds. That person can have some discretion when distributing the funds, so it needs to be an individual you can trust over the long term. That’s why partnering with an experienced estate planning attorney who’s truly an expert in that field is so important.

Reference: US News (June 28, 2022) “What Is a Spendthrift Trust?”

Some Expenses are Paid by Estate and Some by Beneficiary

January 26, 2023

Settling an estate can be complex and time-consuming—it all depends on how much “estate planning” was done. According to a recent article from yahoo! Finance titled “What Expenses Are Paid by the Estate vs. Beneficiary?,” the executor is the person who creates an inventory of assets, determines which expenses need to be paid and distributes the remainder of the estate to the deceased’s beneficiaries. How does the executor know which monies are paid by the estate and which by the beneficiaries?

First, let’s establish what kind of expenses an estate pays. The main expenses of an estate include:

Outstanding debts. The executor has to notify creditors of the decedent’s death and the creditors then may make a claim against the estate. Because a person dies doesn’t mean their debts disappear—they become the debts of the estate.

Taxes. There are many different taxes to be paid when a person dies, including estate, inheritance and income tax. The federal estate tax is not an issue, unless the estate value exceed the exemption limit of $12.92 million for 2023. Not all states have inheritance taxes, so check with a local estate planning attorney to learn if the beneficiaries will need to pay this tax. If the decedent has an outstanding property tax bill for real estate property, the estate will need to pay it to avoid a lien being placed on the property.

Fees. There are court fees to file documents including a will to start the probate process, to serve notice to creditors or record transfer of property with the local register of deeds. The executor is also entitled to collect a fee for their services.

Maintaining real estate property. If the estate includes real estate, it is likely there will be expenses for maintenance and upkeep until the property is either distributed to heirs or sold. There may also be costs involved in transporting property to heirs.

Final expenses. Unless the person has pre-paid for all of their funeral, burial, cremation, or internment costs, these are considered part of estate expenses. They are often paid out of the death benefit associated with the deceased person’s life insurance policy.

What expenses does the estate pay?

The estate pays outstanding debts, including credit cards, medical bills, or liens.

Appraisals needed to establish values of estate assets
Repairs or maintenance for real estate
Fees paid to professionals associated with settling the estate, including executor, estate planning attorney, accountant, or real estate agent
Taxes, including income tax, estate tax and property tax
Fees to obtain copies of death certificates

The executor must keep detailed records of any expenses paid out of estate assets. The executor is the only person entitled by law to see the decedent’s financial records. However, beneficiaries have the right to review financial estate account records.

What does the beneficiary pay?

This depends on how the estate was structured and if any special provisions are included in the person’s will or trust. Generally, expect to pay:

Final expenses not covered by the estate
Personal travel expenses
Legal expenses, if you decide to contest the will
Property maintenance or transportation costs not covered by the estate

Some of the expenses are deductible, and the executor must use IRS Form 1041 on any estate earning more than $600 in income or which has a nonresident alien as a beneficiary.

An estate planning attorney is needed to create a comprehensive estate plan addressing these and other issues in advance. If little or no planning was done before the decedent’s death, an estate planning attorney will also be an important resource in navigating through the estate’s settlement.

Reference: yahoo! finance (Dec. 29, 2022) “What Expenses Are Paid by the Estate vs. Beneficiary?”

Estate Planning Blog

Serving Clients Throughout North Central Missouri