Is Jimmy Carter Spending a Long Time in Hospice?

June 8, 2023

The news that former President Jimmy Carter entered hospice care came in late February. The Carter Center announced that he’d “decided to spend his remaining time at home with his family and receive hospice care, instead of additional medical intervention.”

Now more than two months later, experts say that spending months at a time in hospice — while not always the case — is not at all uncommon, reports MSN’s recent article entitled, “Jimmy Carter’s Hospice Care Is Not Unusually Long, Expert Says: ‘Average Is 60-70 Days.’”

“A misconception is that the average length of stay in hospice is for the last several days of someone’s life,” explains Jonathan Fleece, president and CEO of Empath Health, one of the largest not-for-profit hospice organizations in the country. “The average length of stay nationally is in the 60- to 70-day range.”

While many consider hospice 24/7 care, it depends on a patient’s situation.

“A lot of hospice care is not 24/7. It’s in and out of the home and working with the family and caregiver to be able to support their loved one,” he says. “So we teach them a lot of different ways to help, whether it’s helping with bathing or administering medication or keeping them comfortable.”

It’s interesting to note that hospice was made eligible for Medicare reimbursement under the Tax Equity and Fiscal Responsibility Act of 1982 — which was passed into law under Carter himself.

“I truly believe that the former president wanted to make this part of the American conversation,” Fleece said.

Hospice care isn’t only meant for those at the end of life but for their family members, as well. It also provides caregivers and families with the resources they need.

This includes guiding family members through the grief and bereavement process, including the period of “anticipatory grief,” in which the family and patient know that death is coming.

Hospice care can also include things like veterans programs (Carter, being a veteran, would likely be provided with a pinning ceremony, in which a decorated soldier administers a flag with military honors). It also provides full medical care, as well as spiritual support.

“We hear all the time from families and patients, ‘I wish someone had explained the scale and depth and breadth of what hospice can bring sooner.'”

Reference: MSN (April 20, 2023) “Jimmy Carter’s Hospice Care Is Not Unusually Long, Expert Says: ‘Average Is 60-70 Days’”

Is Aretha Franklin’s ‘Voice-from-the-Grave’ Having an Impact on Litigation Over Estate?

June 7, 2023

In some voicemail messages from May 2018, Aretha Franklin mentions her desired adjustments to a will recently drafted by an attorney she’d hired. While Franklin is heard saying she’d like to arrange an office visit “to finish this,” those voicemails turned out to be her last communication with the attorney, and the eight-page document remained unsigned when she died a few months later.

The Detroit Free Press’ recent article, “Aretha Franklin voicemails revealed in court as estate battle takes latest twist,” reports that these voicemails made for a chilling “voice-from-the-grave” scene in the courtroom of Oakland County Probate Judge Jennifer Callaghan. The counsel for Franklin’s four sons gathered at the judge’s bench as audio was streamed from a laptop computer while three of the sons listened on from the gallery.

In the recordings left on the voicemail of the Troy estate attorney, the Queen of Soul sounds polite but firm as she states her requested changes to the drafted will.

The hearing was the latest twist in the long estate battle complicated by the discovery of multiple conflicting documents that indicate her final wishes. The 2018 draft is one of three wills as the judge considers how the estate will be distributed among the four sons and other heirs.

The document was filed to the court in 2021 by Ted White II, the second youngest of Franklin’s sons. It followed the appearance of two handwritten wills, penned by the singer in 2010 and 2014 and found tucked away in her home after her death. The wills have varying instructions, which has made for a contentious impasse among her sons. The 2018 draft is the only one that calls for assets to be split equally among the three youngest, with eldest son Clarence Franklin, who has special needs and is under guardianship, to be supported by a trust.

A jury trial is scheduled for July to determine which — if any — of the documents should be upheld. The recent hearing was scheduled to determine if the unsigned 2018 draft is admissible under Michigan statutes. The judge is expected to rule later this month.

Reference: Detroit Free Press (April 21, 2023) “Aretha Franklin voicemails revealed in court as estate battle takes latest twist”

What Do I Do If I’ve Lost an Important Document?

June 5, 2023

Many important documents may be decades old. Therefore, if they get lost, you should know how to replace them. AARP’s recent article entitled, “You’ve Lost an Important Document. Now What?” breaks it down for you.

Passport. To avoid becoming a victim of identity theft, report a lost or stolen passport by calling 877-487-2778 or completing Form DS-64 online at travel.state.gov. You can also print the form at the website and mail it to the U.S. State Department. To get a replacement passport, you must submit a Form DS-11 in person at a passport office.

Birth certificate. Contact the vital records office in the state where you were born and order a replacement.

Marriage certificate. Contact the clerk of the county where the license was issued. This office will let you know the documents required, the cost and how the copy can be issued (online, by mail, or in person).

Social Security card. First, consider the need for a replacement because you rarely need the physical card. However, a replacement should be obtained if you’re starting a new job or live in a state where you need it to apply for a Real ID. To obtain a new Social Security card, you’ll need a birth certificate, driver’s license, state-issued identification card, or a passport. You should then complete an application on the Social Security website (ssa.gov) and mail or take your application and original documents to your Social Security office (the website has information on locations). The replacement card is free.

Will. Laws relating to estate planning are different in each state. However, generally, if your will was accidentally lost or destroyed and not revoked, it will still be valid and represent your wishes. A copy of the will can be submitted to the court at your death. However, you must have left behind clear evidence that you didn’t revoke it—proof that it was accidentally destroyed or lost or testimony from an impartial third party stating that you didn’t plan to change it. Your heirs will also need evidence that it’s a true copy, which the original witnesses or attorney can confirm.

Car Title. The replacement process for the title to your vehicle varies by state. Contact your Department of Motor Vehicles. You may be able to submit a form, or you have to submit a photo ID, vehicle registration, or registration renewal notice.

Reference: AARP (Feb. 14, 2023 ) “You’ve Lost an Important Document. Now What?”

Can We Learn from the Presley’s Estate Fight?

June 2, 2023

Priscilla Presley, mother of the only daughter of Elvis Presley, argues that a 2016 amendment to Lisa Marie’s trust, which removed her as co-trustee, is invalid. The amendment replaced her and Lisa Marie’s former business manager as co-trustees with her children Riley and Benjamin Keough (the latter of whom died in 2020).

MarketWatch’s recent article entitled, “Lisa Marie and Priscilla Presley can teach us some estate-planning lessons,” reported that Presley said she was never told that she was being replaced, as was required. She also said her name was misspelled, her daughter’s signature was ‘inconsistent’ with her usual autograph and the amendment wasn’t witnessed or notarized. We can learn that estate planning must be meticulous, and the Presleys provide some simple lessons for anyone looking to create or amend an estate.

Follow the trust rules. Priscilla said she was supposed to be told if she was to be replaced as co-trustee, but she wasn’t. The trust sets out the rules. If you’re going to make an amendment, you must follow what the trust says. There may be consequences if the rules aren’t followed precisely. For example, Lisa Marie’s latest amendment allegedly ignored one of the rules of her trust when her mother wasn’t notified that she’d been replaced as co-trustee. This is where having an experienced estate planning attorney is critical: they can spot mistakes and understand legal language and procedures, so these important documents are upheld in court.

Update your documents when necessary . The amendment Priscilla is contesting was made in 2016 and named two of Lisa Marie’s children as the new co-trustees. However, one died four years later. If a judge deems the amendment valid, what happens next will depend on what the trust specifically says about one co-trustee predeceasing the granter of the trust. You should also review your documents every few years, or when major life events occur, such as a birth, death, marriage, or divorce.

Inform trustees. Deciding who will be trustee to an estate can be challenging. It’s not uncommon for successors to not know they were named. However, they should be notified of this critical job.

Get your paperwork witnessed or notarized – even when you don’t have to. Priscilla’s name being misspelled in the amendment raises questions because she was referring to her mother. In addition, the fact that her name is spelled incorrectly creates issues. A witness or notarization can avoid any additional legal hurdles with a misspelled name or an inconsistent signature. The court will need handwriting experts to examine Lisa Marie’s amendment and determine if it was actually her signature.

Reference: MarketWatch (Feb. 4, 2023) “Lisa Marie and Priscilla Presley can teach us some estate-planning lessons”

Does Divorce Have an Impact on Estate Planning?

May 31, 2023

Even if your divorce is amicable, you still need to make changes to the paperwork, including your will and power of attorney. Yahoo News’ recent article entitled, “I’m Divorcing. Will That Impact My Estate Planning?” says to ask an experienced estate planning attorney how to protect your assets against potential loss due to a potential divorce. Here are some tips:

Revise Your Will. If you have a will, and if it’s written so that your soon-to-be ex will get all or most of your assets, you may want to change how to split up your assets after your death. Check with an estate planning attorney because state laws handle the assets in a will differently. Many states say that gifts to your ex are automatically revoked.

Change Your Trust. If you have a trust in your estate plan, your spouse may be designated as the trustee, so change who will be dispersing your assets.

Review Your Insurance Policies. You’ll want to remove your spouse from all of your insurance policies. However, if you have young children your ex-spouse will be raising, you may want to keep your ex-spouse as a beneficiary. If you were covered on your spouse’s health insurance plan while married, you’ll need to get your own policy. Also consider changing the beneficiaries on your life insurance policy if you’re worried about your future ex-spouse cashing in if something happens to you.

Change Your Power of Attorney. If your spouse is named as your medical or financial power of attorney, change that. Do that by the following steps:

Notify the person currently holding power of attorney
Make the change in writing
Include all required language
Notarize and, if necessary, record; and
Notify all concerned parties.

Divide Retirement Accounts. There are several factors to consider as retirements are divided, like the type of account and when the earnings were received. Before defined contribution plans can be split, the court must issue a qualified domestic relations order (QDRO). The court will determine which properties are marital and which are separate. When the judge signs the QDRO, it lets plan administrators enforce it. The order applies to all plans governed under the Employee Retirement Income Security Act (ERISA) of 1974, like 401(k) plans, 403(b) plans, and Thrift Savings Plan (TSP).

Reference: Yahoo News (Feb. 3, 2023) “I’m Divorcing. Will That Impact My Estate Planning?”

What You Need to Know About Estate Taxes

May 30, 2023

Most Americans don’t have to worry about federal estate and gift taxes. However, if you’re even moderately wealthy and want to transfer wealth to your children and grandchildren, you’ll want to know how to protect your ability to pass wealth to the next generation. A recent article from Woman’s World, “If You’re Rich, Read This—Your Estate Taxes Could Be at Stake (And Your Kids at Risk of Losing Their Inheritance” provides a good overview of estate taxes. If any of these issues are relevant to you, meet with an experienced estate planning attorney to learn how your state’s tax laws may impact your children’s inheritance.

A well-created estate plan can help you achieve your goals and minimize tax liability. There are three types of taxes the IRS levies on gifts and inheritances.

Few families worry about federal estate taxes for now. However, this will change in the future, and planning is always wiser. In 2023, the federal estate tax exemption is $12.92 million. Estates valued above this level have a tax rate of 40% on assets. People at this asset level usually have complex estate plans designed to minimize or completely avoid paying these taxes.

An estate not big enough to trigger federal estate taxes may still owe state estate taxes. Twelve states and the District of Columbia impose their own state taxes on residents’ estates, ranging from 0.8 percent to 20 percent, and some have a far lower exemption level than the federal estate tax. Some begin as low as $one million.

Six states impose an inheritance tax ranging between 10 percent and 18 percent. The beneficiary pays the tax, even if you live out of state. Spouses are typically exempt from inheritance taxes, which are often determined by kinship—sons and daughters pay one amount, while grandchildren pay another.

Taxpayers concerned about having estates big enough to trigger estate or inheritance taxes can make gifts during their lifetime to reduce the estate’s tax exposure. In 2023, the federal government allows individuals to make tax-free gifts of up to $17,000 in cash or assets to as many people as they want every year.

A couple with three children could give $17,000 to each of their children, creating a tax-free transfer of $102,000 to the next generation ($17,000 x 3 children x 2 individuals). The couple could repeat these gifts yearly for as long as they wished. Over time, these gifts could substantially reduce the size of their estate before it would be subject to an estate tax. It also gives their heirs a chance to enjoy their inheritance while their parents are living.

It should be noted that gifts over $17,000 in 2023 count against the individual estate tax limit. Therefore, your federal estate tax exemption will decline if you give more than the limit. This is why it’s essential to work with an estate planning attorney who can help you structure these gifts and discuss other estate tax and asset protection strategies.

Reference: Woman’s World (April 5, 2023) “If You’re Rich, Read This—Your Estate Taxes Could Be at Stake (And Your Kids at Risk of Losing Their Inheritance”

Bernie Sanders Again Presents Plan for Higher Estate Taxes

May 12, 2023

Sen. Bernie Sanders, with Senator Elizabeth Warren and Representative Jimmy Gomez, are introducing new legislation targeting heirs who receive over $3.5 million. Named the: For the 99.5 Percent Act,” the proposed bill would impose a 45% tax on estates worth $3.5 million and a 65% tax on estates worth over $1 billion.

It’s similar to legislation that Sanders has tried to get passed in several variations over the last few years. It comes as some Republicans seek to roll back the estate tax entirely, says Insider’s recent article entitled, “Bernie Sanders once again wants to raise taxes on rich heirs.”

“It is unacceptable that working families across the country today are struggling to file their taxes on time and put food on the table while the wealthiest among us profit off of enormous tax loopholes and giant tax breaks,” Sanders said in a press release.

The amount of money exempt from the estate tax has increased significantly over the last two decades. For 2023, the tax exemption stands at just under $13 million, a large bump from around $12 million in 2022.

As of 2019, the most recent year for which the IRS has data, only 0.08% of adult deaths were eligible for the estate tax. The Tax Policy Center likewise saw that fewer than 0.1% of people who would die in 2020 would owe estate tax. The estate tax rate only goes up to 40% on estates worth a million dollars more than the exempted amount.

The senator’s proposed legislation also seeks to address the loopholes that the ultra-wealthy can use to protect their assets from taxation, like dynasty trusts that don’t incur estate or gift taxes when the family doles out money from a passed-down trust.

However, like Sanders’ previous attempts to hike taxes on the rich, the proposal is unlikely to make it far.

Even when Democrats held both chambers of Congress, centrist sentiment stalled proposed hikes on big corporations and closing loopholes for private equity investors.

With tax-averse Republicans holding the House, any legislation to hike rates will not be successful.

Reference: Insider (April 18, 2023) “Bernie Sanders once again wants to raise taxes on rich heirs”

More Heirs Found for Pope Benedict XVI’s Estate

May 10, 2023

The archbishop who assisted Pope Benedict XVI has been trying to handle the late pontiff’s estate, but has found more heirs than he was expecting, reports Fox News’ recent article entitled, “Vatican searching for heirs to Pope Benedict XVI’s estate.”

Born in Marktl, Bavaria, Pope Benedict XVI, passed away last year at the age of 95.

Some estimates show Pope Benedict’s net worth was approximately $2.5 million. After he stepped down as the head of the Catholic Church, he continued to receive a monthly pension of about $3,300, CNBC reported in 2013.

He was buried on January 5, 2023, in St. Peter’s Basilica, Vatican City. There are 90 other popes buried under the church.

Archbishop Georg Gänswein, Benedict’s personal secretary, told Vatican News that he was surprised to find he had five individuals with claims to Pope Benedict’s estate.

“This has been very interesting for me. I thought he had two relatives, two cousins, but there are five cousins in total,” the archbishop said, according to translations from Catholic News Agency.

He continued, “By law I have to write to the cousins who are the closest relatives, and also by law I have to ask them, ‘Do you accept the inheritance, or do you not accept it?’”

What money or assets are to be inherited from the late pontiff is not publicly known.

Pope Benedict XVI spent his last few years living simply in a Vatican apartment.

Gänswein told the newspaper Il Messaggero that “other personal items, from watches to pens, from paintings to liturgical items, were included in a list meticulously drawn up by Benedict XVI before he died.”

The late pope’s vast library was willed to the Vatican and the Joseph Ratzinger Vatican Foundation.

Reference: Fox News (March 22, 2023) “Vatican searching for heirs to Pope Benedict XVI’s estate”

What Is the Purpose of an Executor?

May 9, 2023

It is flattering to be named the executor for a loved one. It demonstrates an extremely high level of trust and respect, as the person considers you capable enough to fulfill their wishes when they have passed. However, just because you have been named executor does not mean you are obliged to serve, says the recent article, “What are the responsibilities of an executor?” from Daily Local News.

Suppose you decide the responsibilities of being an executor are more than you’re willing or able to handle. In that case, you can renounce your position as executor, and a successor executor named in the will becomes the executor. If the person who named you executor did not name a successor, the court will select a person for the role.

If you have any doubts about this role, please tell the person who asks you to serve, so they can make other arrangements.

If you choose to serve, you’ll want to understand what the job entails. Each estate is unique, and its administration depends upon the assets owned by the deceased, what debts they had and their wishes for distribution.

Some duties are the same regardless of the complexity or simplicity of the estate. For example, the executor often makes arrangements with the funeral home and provides information for the death certificate. Once the death certificate is issued, the executor probates the will with the local court in the county where the decedent last lived. Most people retain an estate planning attorney to guide them through probate and estate administration.

Once the petition for probate has been filed and the court issues Letters Testamentary empowering you to serve as the executor, the administration begins. Some, but not all, of the tasks, include:

Gathering assets
Notifying beneficiaries named in the will
Obtaining an EIN federal tax number for the estate
Opening an estate checking account
Verifying and paying the debts of the decedent
Liquidating and transferring estate assets into the estate checking account
Filing a final personal income tax return
Providing an accounting to beneficiaries and distributing the estate in accordance with the decedent’s will
Filing an estate tax return.

The executor also handles other tasks, such as selling the contents of the person’s residence and home.

The executor is entitled to reasonable compensation for their services. The amount is treated as taxable income. Determining the fee depends on the value and complexity of the estate and the amount of time it took to settle the estate. Some family members waive a fee, while others feel their time deserves compensation.

An estate planning attorney can provide invaluable assistance and prevent expensive mistakes from occurring. If the estate involves businesses, complex ownership structures, trusts, or other sophisticated assets, it is worthwhile to have the help of an experienced professional.

Reference: Daily Local News (March 22, 2023) “What are an executor’s responsibilities?”

Single Parents Need Estate Planning

May 5, 2023

For single parents, estate planning is an even greater need than for married couples, advises a recent article, “Estate planning 101 for single parents,” from The Orange County Register. However, even single parents blessed with a strong support system need an estate plan to protect their children. Here’s why.

An estate plan names a guardian in the will. Who will raise your children and become their guardian if you unexpectedly die or become incapacitated? If the other parent is surviving and has not lost parental rights, they will have custody of the child or children as a matter of law. This is not guardianship. They are the legal parent.

However, if the other parent is deceased or their parental rights have been terminated, the court will need to grant guardianship. You need two documents to name a person whom you would want to raise your child. One is your will. It’s a good idea to list more than one person, in case someone named cannot or doesn’t wish to serve.

For example, “My mother, Sue Sandler, and if she cannot serve, then my brother Mike Sandler, and then my friend Leslie Strong.” There’s no guarantee that the court will appoint any of these people. However, the court may consider the parent’s preferences.

Depending upon your state, you could have a “Nomination of Guardian” document separate from your will. Remember that your will becomes effective only upon your death. If you become incapacitated, this document would be considered when determining who will be named guardian.

You’ll also want a health care directive. This document states who is authorized to make health care decisions for you, if you cannot, and provides general directions about what kind of care you want to receive.

If there are minor children, a “Nomination of Health Care Agent” should also be in place, where you nominate another person to make healthcare decisions for your children if you cannot. For example, if you and your children are in a car accident and you are incapacitated and can’t respond to authorize health care, hospitalization, or other care for your child.

A will and a trust are critical if you have minor children. The will sets forth your nomination of guardians, and a trust can hold your assets, including life insurance proceeds and any other significant assets for the benefit of your children as directed in the trust. The trust is managed by the successor trustee appointed in the trust document. Even if the other parent lives and the child lives with them, the trust is controlled by the trustee, so your ex cannot access the money and the children receive the funds according to your wishes.

If you have only a will and die, your estate will go through probate and assets will effectively be put into a trust for the child and be given to the child when they become of legal age. However, most 18 or 21-year-olds are not mature enough to manage large sums of money, so a trust managed by a responsible adult with a framework for distribution will ensure that the assets are protected.

Once a child reaches the age of legal majority, they are considered an adult. As a result, the nomination of a guardian is no longer necessary, nor is the nomination of a health care agent. However, this is when they need to execute their health care directive, power of attorney and HIPAA form. If they were to become seriously sick, even as their parent, you would not have any legal right to discuss their care or treatment with health care providers without these documents.

Reference: The Orange County Register (March 12, 2023) “Estate planning 101 for single parents”

Estate Planning Blog

Serving Clients Throughout North Central Missouri

Is Jimmy Carter Spending a Long Time in Hospice?

Is Aretha Franklin’s ‘Voice-from-the-Grave’ Having an Impact on Litigation Over Estate?

What Do I Do If I’ve Lost an Important Document?

Can We Learn from the Presley’s Estate Fight?