Estate Planning Mistakes
Total Page：16
File Type：pdf, Size：1020Kb
Estate planning mistakes Lessons from Bobbi Kristina Brown and her mother Whitney Houston By MARIA SCHMIDLKOFER in-home care, or would you like to live The recent death of Bobbi Kristina in a small foster care setting with a few Brown, at age 22, reminds us of the other individuals, or would you prefer a importance of having a solid estate plan large assisted living facility? These are all in place. Her mom, Whitney Houston, questions that you can answer in advance died just three years ago at age 48. Both so that your family does not have to of their estates would have benefi ted from deal with a myriad of personal care and comprehensive estate planning. healthcare decisions at a time when they Frequently, people tell me, “I have my are already emotionally distraught from will done. That’s all I need.” As an attorney seeing you decline. whose practice focuses primarily on estate How could an estate plan have helped planning, I am telling you: A will is not a Bobbi Kristina Brown? She was on life comprehensive estate plan. support, in a medically induced coma, for A comprehensive estate plan is two- about six months. Would this have been pronged: it plans for your assets both in her wish if she was able to speak? We do the event of your disability and death as not know. Evidently, her father Bobby well as your health care needs should you Brown and her aunt Pat Houston were become disabled. the guardians that were appointed to make Using a power of attorney, will and frequently medical decisions on her behalf. While a revocable living trust: The fi nancial side of family made medical decisions, a court- estate planning enables you to maintain appointed attorney out of Atlanta served as control of your assets while you are Bobbi Brown’s fi nancial conservator. This alive—despite any future disability—and means the attorney controlled all of Bobbi ensures that you give what you have, to Brown’s assets while she was disabled and whom you want, when you want, in the reported distributions to the court. way you want—after your death. It allows Instead of using a court appointed you to protect your assets and save as much conservator, most individuals would prefer possible from taxes, creditors and predators, to pick their own trusted loved ones or a without unnecessary cost and delay. The professional trustee to handle their assets trust and power of attorney work together and keep their assets private during their to ensure that your fi nances are handled disability. If you have a revocable living by the disability trustee and agent that trust with a disability trustee named to you name to do so. After death, the will handle your fi nances on your behalf if you transfers your assets to your benefi ciaries are disabled, then you decide who handles through a court probate. Many individuals the assets that you title in the name of choose to avoid court probate and transfer your trust and the trust remains private. A their assets using a trust and benefi ciary general durable power of attorney is also designations instead. frequently used to name an agent to handle Using advance directives, HIPAA waivers all fi nancial assets that the trustee cannot and disability instructions: the health care handle. For example, if someone needed side of an estate plan makes sure that to speak to your insurance company your wishes are followed during disability. or to the social security administration, The advance directive names health then you can authorize a person to do so care representatives to make health care through a Power of Attorney. Sometimes decisions for you if you are unable to make a power of attorney is the only document your own. It also allows you to decide that a person has signed to name an agent whether you would want life support to handle their fi nances. Using only a at the end of your life. HIPAA waivers power of attorney in the event of disability name individuals that you authorize to can often be insuffi cient. If there are bank have access to your medical information accounts titled in an individual’s own name, and to communicate with your doctors then it is up to the bank to decide whether and nurses. Many individuals also provide it can honor the power of attorney or if it instructions to their loved ones regarding requires a court conservator to access the the type of care that they would like to account. Both the revocable living trust have during their disability. For example, would you prefer to live at home with See ESTATE on Page 19 SU is not ideal. While a poor estate plan is not responsible for Bobbi Brown’s death, ESTATE had Whitney Houston updated her estate plan, she could have protected her estate Continued from Page 7 to help her daughter, instead of hindering and the general durable power of attorney her. She could have addressed addiction remain private. In contrast, a court- issues and stated that if there was suspected appointed conservator gains control of addiction the trust could provide funds your assets through a court process and for rehabilitation and counseling, rather your assets remain court supervised. The than pouring out millions outright to feed conservator represents the disabled person an addiction. A trust could have inspired and reports all income and distributions to Bobby Brown to gain an education or help the court at least annually. others. It could have been structured to Where will Bobbi Brown’s estate go? protect her money against predators and No evidence of a will or trust has surfaced creditors. In a recently fi led civil lawsuit, so it is likely it will pass through “intestacy” Bobbi Brown’s boyfriend is now accused of in which the state of Georgia writes a will stealing thousands of dollars, including an for her and distributes it to family members additional $11,000 after Ms. Brown was in according to state law. Her mom, Whitney a coma. If a trustee handled distributions Houston, had a very basic 18 page will in to Bobbi Brown, all of that could have place at the time her death. Ms. Houston been avoided. gave her daughter 10 percent of her own Does your estate plan include provisions estate at age 21 which Bobbi Brown to deal with your disability and protect received shortly before her coma. While 10 your loved ones after your death? If not, percent may not seem like much for a 21 consider having it reviewed and spruced year old to have outright and free of trust, up. when the estate easily exceeds $20 million [This information is intended only to by most estimates, at least $2 million dollars provide information.] given outright to a reportedly troubled (Maria C. Schmidlkofer is an young adult who lost her famous mom attorney at Willamette Valley and may have had drug-addiction issues Estate Planning & Probate LLC.) DESTINATION: RETIREMENT Travel Trailers 5th Wheels Sales, Parts, Service JUST WEST OF I-5 3282 Silverton Rd NE - Salem YOUR FULL SERVICE RV DEALER SINCE 1969 503.585.7713 - wagersrvs.com.