HIS, HERS AND OURS
His, Hers and Ours. January 2017 “So,” the attorney queried, “are all the kids the children of both of you? Are there any children of either of you that aren’t the children of both of you?” The husband replied, “I have one from my first marriage, and she” gesturing toward his wife “has two from hers.” She nodded, and interjected, “and we have one together.” “His, hers and ours,” the attorney observed. “That makes this ‘interesting.’ “Tell me about where your children from your prior marriages grew up. Did you raise them together?” “No,” the husband replied, “my son was raised by his mother. I was in the military and couldn’t take family to my duty stations. When my first wife and I divorced, I saw him whenever I could, but that wasn’t...
IMPORTUNITY KNOCKS
By Tim Barkley. November 2016. Elderly and alone, my client had faced the future with fear. Widowed and childless, she relied on her money to secure her the attentions of her neighbors and nieces. Money was the carrot; the stick was her threat to write them out of the will. Ambitious and unscrupulous, some of the recipients believed they had found an opportunity too good to pass up. They became perpetually importunate, sad faces masking an insatiable greed. This is the stuff of Dickens novels and elder law practices. It is often the duty and privilege of elder practitioners to protect the vulnerable from sociopaths who believe that weakness is an invitation to abuse. How do you protect those you love from “helpful” friends and relatives?...
HOME ALONE II
By Tim Barkley. October 2016. Last month's offering to our readers considered the effect of the Inheritance Tax on folks without spouse, siblings or children as estate beneficiaries. This month's article offers practical steps to ease the task of your surviving nieces, nephews, friends or other loved ones as they try to sort out your affairs. First, and most basically, be sure your estate planning documents are up-to-date, and that someone knows where to find them. An out-of-date will that leaves assets you no longer own to persons who are no longer living can be an invitation to expensive and time-consuming litigation. Changes in terminology, technology and social norms can make a decades-old medical directive worse than useless. This...
REWRITES
By Tim Barkley. July 2016. “My wife just passed away,” the client said, matter-of-fact mien betrayed by a moistening of the eyes. “She was my power of attorney and executor of my will. I think I need new papers.” “I’m sorry to hear,” the lawyer replied. “When did she die?” “Around Valentine’s day,” the client clarified. “The kids and I have been working through things and I think this is the last thing I need to do.” “So was everything in joint names?” “Yes, except her IRA and an annuity, and I was the beneficiary. We’ve taken care of those.” “OK. Who is the backup for your power of attorney and will executor?” “My oldest daughter.” “She could still take care of things,” counseled the lawyer, “and would just have to present your wife’s...
WHAT ELSE DO I NEED TO DO? LETTERS OF ADMINISTRATION
By Tim Barkley. March 2016. The smartphone on the desk erupted in a coruscant display and intermittent insistent buzzing. The readout said “Mrs. Jones.” “Good afternoon, this is Tim,” intoned the lawyer. “How can I help you, Mrs. Jones?” There was a silence. “Hello, Mrs. Jones, this is Tim. How can I help you?” “Oh, it’s you! I expected to have to leave a message at this time of day.” “You might have, but that’s not your luck today – you’re stuck with me in person. How can I help you?” “You told me to tell you if I found anything just in my husband’s name. Well, I went to sell his Jeep and pulled out the title, and that’s when I remembered that he bought it alone – I had to work late the day he went to buy it, so he bought it just in his...
GETTING TO KNOW YOU – ESTATE PLANNING PROCESS
By Tim Barkley. February 2016. In beginning the estate planning process, your estate planning attorney should begin by getting to know you. Planning is for people. It is not a technician's exercise in efficiency, though it must be both effective and efficient. Planning is about you and your values, not about taxes or money or assets. Your assets, money, and tax situation should be aligned with your values, and not the other way around. Remember that probate and tax avoidance are subservient to the primary goals of estate planning: (a) providing for living dependents, and (b) maximizing the inheritance. Your goals need to drive the planning. Probate and tax avoidance only serve the second of these goals, and thus even the most elegant and...
WHAT DO I NEED TO DO?
By Tim Barkley. January 2016. The voice on the lawyer’s phone was generally steady, but shook now and then. “This is Mrs. Jones. My husband just died last week. What do I need to do?” The lawyer offered condolences – even though he had not known the Joneses, he sympathized with a grieving spouse. Mrs. Jones agreed to meet the lawyer in his office the following day. “What do I do now?” she asked. “He didn’t have a will. I’ve heard that the State takes everything. Do I need to go to court?” Her lawyer shook his head. “The state doesn’t take anything. And there is a sort of ‘default will’ in the law, called ‘intestacy.’ That controls what happens with his estate if he doesn’t have a will.” He queried: “Was everything owned jointly?” “Yes,”...
TIS THE GIFT
By Tim Barkley. December 2015. The text message was from Susan: “How much can my fiancé’s mom give away in a year?” I called her back. Some things are best handled in person. “What’s up?” “Thanks for calling right back! My fiancé’s mom wants to give money to her kids before the end of the year so she can get a tax write-off. I knew there was a limit of $10,000 or something. And Bobby’s worried about how much tax he’ll have to pay on what he gets.” “Well … you have several issues going on all at once. First, if Mom gives Bob a gift, it’s not a tax deduction for her, and it’s not taxable to him. So if she’s giving to get a deduction, that might end the discussion right there. If Mom needs a deduction, she needs to give to charity. “Now...
YOU GOTTA BE KIDDING!
By Timothy S. Barkley, Sr. October 2015. “You gotta be kidding!” Her voice was excited as she looked down at the test results. “We’re pregnant! After trying and trying … we’re finally pregnant!” He smiled and grasped her hand, squeezed softly. Their eyes met and both chorused “Now what?” Fast-forward nine months. A little bundle of joy has descended into their lives and transformed them and their relationship. The baby’s room is decorated, the clothes bought and handed down, and Mom and Dad are enjoying the beneficent sleep deprivation that comes with being new parents. But there was still a nagging feeling that something was missing. It was Mom who realized it – it’s usually Mom who knows what’s missing. “Honey, we need a will. Who’s...
FLY AWAY
Is your will up-to-date? Does it adequately provide for your assets and your loved ones?
THE NURSING HOME
The bill from the nursing home is enormous. In Maryland it averages about $8,000 per month, or about $100,000 per year.
UNCOMPLICATING (MARYLAND ESTATE TAX)
A client visits the attorney and reflects on the experience of her mother in making her own end of life decisions.