Indiana Estate Planning & Elder Law

Procrastination is the Primrose Path to Destruction!

I had a college professor who gave only semester-long assignments. No daily or weekly homework or reading. Rather, he would start each semester with the assignment of whatever essays, projects or research we would be required to complete, and then say no more about it during regular classes. Students were expected to responsibly progress toward completion of their assigned projects without reminders or check-ins throughout the months-long semester.

The only reminder was a sign posted in the classroom, containing these words, “Procrastination is the Primrose Path to Destruction.” He pointed it out on the first day, when the assignments were made.

Inevitably, some students would put off the work, and find themselves in a mad scramble at the end of the semester in a frantic effort to get everything done before the deadline. You’d see them and hear their complaints about this massive project that was “unfairly” thrust upon them … as if they hadn’t been warned, or they had somehow forgotten that time passes whether you do anything or not. In any event, it was a lesson in accountability and personal responsibility. The lesson was learned, either the easy way or the hard way, but learned nevertheless. Putting things off does not end well.

I think of this advice often. It comes to my mind every time I work with a family who are cleaning up a mess of financial and personal matters after the death of a loved one. The loved one who didn’t seem to have any system for managing their affairs, and never took the time to write even a simple estate plan. Maybe they just kept putting it off and agreeing that they would do it “someday.”

Just as inevitably as the end of the semester comes for students, so comes the end of our lives. It is inevitable. As they say, “no one is getting out of this alive!” We know it. We know for certain that, eventually, death will come, and there will be affairs to be cleared up. The question is whether we choose to prepare and make things easy for our families, or procrastinate and enjoy the primrose path that leads to destruction. In the case of the students, “destruction” means a poor grade. In the case of life, “destruction” means the loss of significant portions of our estate that must now be expended in order to finally settle our estate. The same lesson is learned.

At this time of year, a phrase enters our language patterns; “I’ll take care of that after the first of the year.” As if some magical thing is going to occur on January 1 that will suddenly provide us with the time and energy needed to complete the task. We all know there is no magic to January 1 – it is simply the “next day” – yet we push things there. Why? It’s a convenient method of procrastination! Unfortunately, and inevitably, the 1^st of the year comes, and now we have a big pile of un-done to-dos that we’ve put off for no real reason. So we put some of those things off a bit longer. Including that Will we promised to get done this year.

Procrastination is the Primrose Path to Destruction. Start the process now, and you’ll be checking that task off your list before the 1^st of the year. No procrastination = no destruction.

To get your estate planning done once and for all this year, contact us by clicking here and giving us a little information.  Or you can call us at (317) 863-2030

Susan Hunter, Esq.

        

What to Do After Someone Passes Away

After someone passes away, the to-do list for the Executor or Successor Trustee grows almost instantaneously. However, first and foremost, the most important thing to do is to grieve – so often, we see the individual in charge jump into “business mode” without taking time for himself/herself first.

I compare this to the security briefing before a flight takes off – should there be a change in cabin pressure, the oxygen masks may drop down. At that point, they state you are supposed to place the oxygen mask on yourself first before assisting others. This situation is no different. Take care of yourself first – even if your sibling has his hand already out and ready to receive his inheritance.

Though, at some point, you’ll have to transition into business mode and begin checking tasks off the to-do list. But, what is on that to-do list? First, Hunter Estate & Elder Law is happy to be a resource for the individual in charge – we can connect you with other trusted professionals (CPA, financial advisor, business that helps clean out houses, auction companies, personal property appraisal, funeral homes, etc.); we can provide informational materials like checklists with what to do and when; and we are, of course, happy to sit down to discuss “what’s next” from a legal standpoint.

Is probate needed? Can things be settled privately? Is there a Trust involved? Is it fully funded or are there assets outside the Trust?

We can help with those deeper questions in a meeting, but the question we get asked often is … what do I need to do right now? The following is a helpful checklist with important tasks that should be addressed shortly after someone passes away:

1. Secure the property and any valuable or sentimental personal property. We recommend changing the locks to ensure that the individual in charge is the only one with access to the property.
2. Notify the post office and begin mail-forwarding to a more appropriate address. This will ensure a pile of mail does not accumulate in an unsafe place. Though, it is important to routinely check the mailbox (even after mail-forwarding) in case some pieces of mail slide by the post office.
3. Locate any estate planning documents like a Last Will and Testament and/or a Living Trust. While it is not absolutely vital to immediately find the originals of such documents, copies will suffice for an attorney to look at. Though, if the originals are unable to be immediately located, let the attorney know so they are aware the originals are still “out there.”
4. Notify any governmental organizations – Social Security Office, Medicare, Medicaid, and Veteran’s Administration. If an attorney assisted with seeking any of these benefits, it is advisable to let the attorney notify the organization.
5. Ensure death certificates are being worked on – whether it be the funeral home taking care of this piece or the county health department. You will need death certificates to show proof that the individual has passed away.
6. Schedule a meeting with an attorney that handles probate and/or trust administration – like us! When the meeting is scheduled, bring anything you feel is remotely important, but be certain to bring: any estate planning documents, copy of death certificate (if you already have one), information sheet containing beneficiary names and addresses as well as assets and debts of the deceased.

After many of the tasks above are complete, the meeting with an attorney will provide a solid game plan as to what still needs to be done and what gets added to the to-do list.

Though, even if tasks are added, what I find is having this meeting also provides a sense of relief because the individual in charge is often overwhelmed. It is our primary goal is to guide you through this difficult time – in the least difficult fashion.

If you need help with making sure that you are prepared with the proper documents, consider joining us for our upcoming workshop.  Just click here for all the information.

Fast & Furious Star Paul Walker's Auto Collection Dispute

Known for his movies about fast cars, Paul Walker owned a large number of very expensive cars.  A lawsuit alleges that a number of these cars were taken within 24 hours of his death by an acquaintance – but it is unclear how many vehicles he owned.

Actor Paul Walker's life was all about fast cars – and so was his death.  Walter, famous for his role in The Fast and the Furious, passed away in an auto accident in 2013.

After his death, Walker's estate requested information about where the actor's vehicles were located. The lawsuit alleges that his acquaintance, Richard Taylor, created a list of the cars – 31 owned entirely by Walker and one owned with a colleague who died in the same accident that took Walker’s life.  The lawsuit claims that at least seven cars are not on the list. Among them is a 2011 Porsche GT3 RS that is valued in excess of $150,000.  Richard Taylor was a friend of Walker's who helped maintain his automobile collection.  That’s what friends do? 

The Hollywood Reporter reported the story in an article titled "Paul Walker's Estate Sues for Return of More Vehicles Taken After Actor's Death."

Actually, these types of situations are not unusual.  It is the trusted friends and family members who feel they have an emotional connection to the decedent’s possessions and therefore a right to take them.

Estate administrators are charged with being diligent to ensure that no part of the estate is misappropriated and to seek recovery of anything missing if they think that someone took property or any size or value.

The best way to prevent this kind of unintended gifting?  Make a complete list of all items of value – sentimental or financial – that you own and provide this list to your estate attorney.

An experienced estate planning attorney will help make sure nothing is missing or left to chance -- from teaspoons to tractors.

Reference: The Hollywood Reporter (June 12, 2015) "Paul Walker's Estate Sues for Return of More Vehicles Taken After Actor's Death."

Long Lost Life Insurance Policy? Tips for Tracking It Down

If you can’t find the life insurance policy of a deceased relative, here’s your biggest problem: There’s no central, national database of life insurance policies. So if you’re hunting for a policy — and have had no luck finding the policy itself in any drawer or pile of papers — here are ways to find it.

 What good is life insurance if the beneficiaries don’t know about it or aren’t able to find the policy after the policy holder passes? When the beneficiaries do not know the company that wrote the policy, they need to track down the necessary information so they can contact the company and have the policy paid out.

Often, this is a task that falls to the executor of the estate.

Recently, Nerd Wallet published a list of helpful tips to conduct this task in an article titled "How to Find a Lost Life Insurance Policy."

The list includes:

• Check if your state has a central database - 10 states have life insurance policies registered in a central database that can be searched.
• Check the deceased's mail - Look for correspondence from insurance companies.
• Look for payments - Check the deceased's bank account statements and credit card statements for payments to insurance companies.
• Contact Employers - Ask employers if a life insurance policy was provided through work.
• Check with banks - An executor can inquire if the deceased had safety deposit boxes. If so, check the boxes for life insurance policies.
• Check the MIB Group - Since 1995, the MIB group has maintained a registry of people who have applied for life insurance policies. While that does not mean that any policies were purchased, it is a good place to start looking.

Reference: Nerd Wallet (March 31, 2015) "How to Find a Lost Life Insurance Policy."

Illinois Bill Proposal Would Treat Digital Assets Like Physical Assets

A bill in the General Assembly would treat individuals' Facebook, Twitter, email and other online accounts the same as physical assets after death.

By default, the law does not treat digital assets the same way that it treats physical assets. After a person passes away, physical assets become part of the estate. Executors and loved ones are given access to the physical assets to dispose of them in accordance with an estate plan.

However, treatment of digital assets is determined by the terms of service of online companies.

This creates problems for executors who often need access to the digital assets to properly administer the estate as many technology companies make that access incredibly difficult to get.

Throughout the country state legislatures have debated this problem in an effort to reach a solution. The latest to do so is Illinois.

Its legislature is currently taking up a bill that would treat digital assets as physical assets, which would allow a court to appoint a trustee to access them. The bill is strongly opposed by technology companies and privacy groups who think the bill would be a violation of the deceased's privacy.

The State Journal Register has more on the debate in Illinois in an article titled "Bill would treat deceased's online accounts like physical assets."

This is not a debate that is going away soon.

It will likely take years for any sort of consensus to develop throughout the country. In the meantime, it is important to talk to your estate planning attorney about what you can do to ensure that your digital assets are handled appropriately in your estate.

Reference: State Journal Register (April 5, 2015) "Bill would treat deceased's online accounts like physical assets."

Ernie Banks' Estate Administration under Fire for Unpaid Funeral Expenses

The funeral home that handled services for Chicago Cubs great Ernie Banks has jumped into the legal battle over the estate of the Hall of Famer with a claim for more than $35,000 it says it has not been paid.

Unfortunately, the drama continues for the estate of Ernie Banks. First, there are the accusations that his longtime caregiver, Regina Rice, arranged a secret will that left the entire estate to her and disinherited his family for unknown reasons. Rice says that the will is legitimate, and her attorney recently claimed that the estate has assets of only $16,000. The court has ordered a full accounting as the family believes there should be much more.

Now, the funeral home where services were held for Banks has filed a lawsuit against the estate for $35,000 it says it has not been paid. The Star Tribune has more on the story in an article titled "Funeral home jumps into legal battle over Ernie Banks estate with demand for $35,000."

One issue should be obvious here. If Rice is correct about the value of the estate, then the funeral home is owed more money than the estate has.

The other issue is a failure of estate administration.

Normally, one of the first things an executor should do is to ensure payment of the deceased's funeral expenses. The failure to do so allows fees and interest to accrue. If the estate could not pay for the funeral, then a less expensive funeral should have been arranged.

Reference: Star Tribune (March 6, 2015) "Funeral home jumps into legal battle over Ernie Banks estate with demand for $35,000"

Scandal, Disinheritance and One Son’s Quest to Find Hidden Millions from Father’s Estate

Sidney Kronenberg, who owned an East Williamsburg hardware business called Brown Industries Inc., died in 2010 with about $8 million that has been accounted for, according to court records. But his son, S. Harris Kronenberg, says there is much more money out there hidden in offshore accounts and under aliases — and he bases his belief on his dad’s criminal past.

Does the name Kronenberg ring a bell? The late Sidney Kronenberg is perhaps most famous for being a part of a New York bribery and kickback scandal that Rudy Giuliani prosecuted in the 1980s. Kronenberg was convicted in the scandal but never received prison time.

When the hardware store owner passed away, it was discovered that his will disinherited his daughter and left his son a small portion of the total value of the estate. The son and daughter took the unusual step of hiring an expert to diagnose their father's mental condition after he was already dead.

This unusual step proved successful. The son and daughter were able to settle with the estate and received a large share of it.

As reported by DNAinfo in an article titled "Owner of Brooklyn Hardware Store Hid Tens of Millions of Dollars, son says," the son petitioned the court two years ago to take over administration of the estate. The son believes his father hid money all over the world using false names and social security numbers.

However, two years of searching has not produced any results.

This particular family struggle with an estate might have been unavoidable since it appears that Kronenberg did not get along with his children. Normally, the key to avoiding a family feud over an estate is open communication and that may not have been possible here.

It is smart to engage the services of an experienced estate planning attorney early in the planning process. He or she can help you navigate these treacherous waters.

Reference: DNAinfo (March 5, 2015) "Owner of Brooklyn Hardware Store Hid Tens of Millions of Dollars, son says"

Estate Administration 101: Pay Applicable Taxes

When a loved one dies, the resulting tax issues must be handled.  The person to handle these issues is typically identified in the decedent’s will as executor of the estate.  However, if there is not a will, the probate court will appoint someone to be the administrator.

 Nothing is certain but death and taxes, right? Which is why an estate executor has an important role.

An executor has two basic functions. The first is to marshal the assets of the estate. That is the executor must locate and document the assets. The executor must also then distribute the assets. This is actually three functions in one.

The executor must pay the debts of the deceased out of the estate assets, pay the taxes and then distribute the remainder to any heirs. Many new executors get tripped up on the taxes as they do not know what taxes need to be paid. Problem: the executors may be held liable for any tax deficiencies owed by the estate.

The Wills, Trusts & Estates Prof Blog recently published a helpful list of taxes for estate administrators titled "Tax Issues When Closing an Estate."

Here are some of the practical pointers included in this list:

• Filing a final 1040 - An income tax return needs to be filed for the last tax year the deceased was alive. This should cover the period from January 1 until the date of death.
• Filing the estate's income tax returns - If the estate earns money after the deceased passes away, the estate is responsible for paying income taxes on that money.
• Filing an estate tax return - If any estate tax is due, then an estate tax return must be filed.
• Miscellaneous - Many estates have several other tax issues to deal with that executors should consult with experts about.

If you are administering an estate and have any questions about taxes, see an experienced attorney about what you need to do. The fees for the attorney are a legitimate estate expense and can protect you from liabilities flowing from your role as executor.

Reference: Wills, Trusts & Estates Prof Blog (February 17, 2015) "Tax Issues When Closing an Estate."

Estate of Fugitive with Double Life Being Challenged by Victim's Family

No one — not Florida investigators, court officials, the Wisconsin Department of Corrections or the FBI — ever notified the surviving relatives of Cydzik's victim in the Brookfield fatal robbery. Only this year — by chance and Facebook postings — did they finally discover whatever became of Cydzik. Now, they're looking for some belated closure in a Florida court. 

 Fugitive Thaddeus "Ted" Cydzik lived a double life for nearly forty years before taking his own life, but his estate may live on in court.

Forty years ago Gerald Wall was murdered in a Wisconsin bar by Ted Cydzik. At the time, Cydzik was an uneducated 19-year-old.

However, Cydzik was a model prisoner and became the first Wisconsin prisoner to receive a Bachelor's degree under a then new program. Then, Cydzik escaped and authorities were unable to locate him.

The Journal Sentinel,in an article titled "Wisconsin fugitive's secret life has victim's family seeking answers," reports that Cydzik actually fled to Florida.

Cydzik apparently assumed a new identity and started a technology company. He got married without anyone every figuring out that he was a fugitive. However, his wife became suspicious that he was not who he said he was and filed for divorce.

Cydzik then committed suicide.

When authorities finally pieced together who Cydzik was they did not tell the victim's family. The family only learned about it a few years later when a friend read a story online.

Cydzik's estate has been closed. However, Wall's family is seeking to have it reopened on the grounds that not all of the potential creditors were informed of Cydzik's death.

This is an interesting case. Under ordinary circumstances an estate is not reopened once it has been closed. But, if all creditors are not properly informed of the estate administration an estate can be reopened.

Reference: Journal Sentinel (December 10, 2014) "Wisconsin fugitive's secret life has victim's family seeking answers"