The Cost of Death on the Rise

It can be expensive to die, and I am not talking medical bills at the end of life.  The cost to purchase burial items are expensive.  An article written by Michael De Groote in the Deseret News by Michael De Groote dated January 23, 2014 discusses two points.  One point is that cost of burial paraphernalia is increasing with the cost of living.  A second point is surviving family members often make poor funeral purchase decisions during the death crisis.  It is our opinion here at Hughes Estate Group that pre-funeral planning is more likely to keep costs down.  It also allows family members the freedom to grieve properly without dealing with unnecessary money decisions.

Gifts To Grandchildren

Gifts given to grandchildren by grandparents can be a great blessing.  Kelly Greene wrote an article in the Wall Street Journal September 14, 2012, titled "Are You Coddling Your Grandkids?"  In her article, Ms. Greene indicates five ways to give to a grandchild something and at the same time not creating a sense of entitlement from a grandchild.
First, Ms. Greene says you must, "Pare your gifts to offset the pain."  In other words, don't give to the extent that you jeopardize your own financial care.
Second, Ms. Greene say you might consider making a gift a loan rather than an outright gift.  If the loan is handled properly, it might be a good way to help the grandchild and at the same time allowing them to make their own way in the world.
Third, Ms. Greene says a grandparent can create teaching moments.  Gifting stock or investments rather than cash can be a way of teaching grandchildren the value of money as an example.
Fourth, Ms. Greene says it is a good idea to delay a grandchild's gratification.  Gifting money at certain dates or events rather than on a regular basis can help grandchildren rely on their own resources first.
Fifth, Ms. Greene counsels to practice equality.  One of the most common reasons for litigation between family members if perceived favoritism. 
As you choose to gift assets, it is wise to take into account the feelings of family members and how said gifts will affect them in the long run.

Choosing The Right Fiduciary--Trustee, Agent, Personal Representative

In an article written September 10, 2012, by Jeanne Skowronski of the Wall Street Journal, Ms. Skowronski writes about the importance of choosing the right trustee to serve as the fiduciary of your estate.  Ms. Skowronski talks about four questions which she feels should be asked in deciding who should serve as fiduciary.  She asks:




- How large and complex are the assets in the trust?
- Can anyone in your family do the job?
- How are the relationships between your beneficiaries?
- Have you explored other options?




Here at Hughes Estate Group, we emphasize the great importance of choosing the right individual or entity to serve as the fiduciary of a person's estate.  We ask a series of questions in order to help you determine the best fiduciaries for your estate plan. 




We feel there should be much more deliberation in determining who should serve than simply naming your first born child for example or even the child most able to handle finances.  The relationships between siblings and many other issues also hold great bearing on who should be named as the individual or individuals to take care of your affairs at your incapacity or death. It is important to ask the right questions in deciding who should serve as trustee of your trust, or agent of your power of attorney, or personal representative of your will or estate. 

New Year's Resolution

At the beginning of this new year, we at Hughes Estate Group wish all a happy and successful year.  We would encourage everyone to set a goal for this year to either get an estate plan in place (if a plan is not in place) or review and update any existing estate plan (if a plan does exist).  Death is something we will all experience.  Ensuring the smooth transition of one's estate to beloved beneficiaries is one of the best gifts a person can give his or her family.

Requirements of a Care Agreement

A care agreement is a formal agreement between two parties. One party is providing services. The other party is hiring said individual to provide said services. A care agreement
• must be a formal contract between parties;
• must name the parties involved in the care agreement.
• must outline service and duty terms.
• must outline payment terms.
• must outline breach of contract terms.
• must outline termination of contract terms.
• must outline length of time the contract is valid/active.
• must allow for mutual amendments or changes to contract.
• must be signed and dated by all parties (parent(s) and family member(s)).

Elements of Care in Care Agreements

Care agreements can be customized to each family’s particular situation. The following are basic elements of care that can be explained in a care agreement: 
• Personal Assistance
• Personal Hygiene
• Meals
• Laundry
• Housekeeping
• Transportation Services
• Yard Care
• Shopping
• Social Contacts
• Religious Needs
• Intellectual and Emotional Needs

Purposes of Family Care Agreements

There are many good reasons for families to enter into care agreements, particularly agreements in which a family member is paid for services rendered. 
First, a care agreement spells out for the parent, family, and third parties the details of care a family member will provide to an ailing parent. Caring for a parent even occasionally can be a physical, time-consuming, emotional, and financial burden for a family member. Acting as a parent’s full-time, primary caregiver can be deeply burdensome. A care agreement spells out details of care in a way that is illuminating and helpful for everyone involved.

Second, when a parent needs help, family members often rally around and provide service for their parents free of charge. But caring for a parent can be a significant financial burden, not to speak of the physical and emotional burdens (in taking time off work or in taking time away from their own family duties, for example). A wise parent will set forth in a care agreement details regarding compensation of family members for care services the family performs on the parent’s behalf.

Third, a memorialized care agreement prevents family resentments and disagreements regarding said payments. Misunderstandings and hurt feelings often occur in families during the time an aging parent is being cared for by family members. A carefully drafted care agreement protects in numerous ways a family member serving an aging parent.

Fourth, a care agreement has Medicaid advantages. Without a formal care agreement, the funds used to pay family members are treated as part of the ailing parent’s assets or income for Medicaid eligibility purposes. On the other hand, if an ailing parent is paying a family member (or anticipates paying a family member in the future) for services, a formal care agreement ensures that funds used to pay family members are not treated as the ailing parent’s assets or income for Medicaid eligibility requirements.

Family Care Agreements

A care agreement (also known as a family care agreement, personal care agreement, personal services agreement, care contract, etc.) is an agreement between a parent (or parents) and a family member (or members) in which the family member agrees to care for the parent and the parent agrees to pay the family member for the services performed on behalf of said parent.

Who Gets Dad's Old Anvil

Once both parents have died, the children have a big job ahead of them. It litterly can take years to wade through all the accumulated stuff. And the stuff might really be valuable (not just monetarily). The sentimental value of a certain item can help ease the lose of the loved one as family reminisces, or it can cause the dreaded family fight that keeps family members from talking to each other for years. An article written by Kelly Greene of the Wall Street Journal entitled, "The Pearls Are Mine!" gives some good suggestions for working through the mountain of stuff in an timely and friendly way.

A Second Marriage And Children Of The First Marriage Fight With Murder Thrown In

Judge Patrick Maqubela, acting judge in the Western Cape High Court, was suffocated June 5, 2009 in his Bantry Bay flat. He wife of his second marriage, Thandi Maqubela, has been accused of co-conspiring to kill him.

At the time of his death, Thandi Maqubela declared her husband had died intestate or without a testamentary document in place. Later, she declared that she had found his will. The difference between how Mr. Maqubela's R20m estate would be distributed by the laws of intestate versus by a will it hugh.

According to the intestate laws of South Gauteng, Thandi Maqubela would receive half the estate and Mr. Maqubela's five children would receive the other half to be divided in five equal shares. With the will, the two children from Mr. Maqubela's first marriage are completely cut out of the will and Thandi Maqubela's daughter from a previous marriage is named a beneficiary. Mr. Maqubela's son from his first marriage, Duma, is contesting the validity of the will saying that he cannot believe his father would disinherit him and his sister, Patiwe.

A full article reporting on the situation can be read here.

Movie Review: Snowball Express

Here is another inheritance movie. Disney's classic, Snowball Express (1972), is just plain fun. The story is about the crazy adventures a family has when they move to Colorado to try and make an inherited run down hotel a success. Of course, there are the good and bad guys and the ultimate "snowmobile" race to see which side wins.

The movie can be found here.

Joke of the Week

Neighbor: "Where are you going Beatrice?"

Great Aunt Beatrice: "To see my Arithmetic Relatives."

Neighbor: "Why do you call them that?"

Great Aunt Beatrice: "Because they add to my misery, they subtract from my pleasure, they divide my attention, and they multiply like the dickens."

Movie Review: Scavenger Hunt

Here's an inventive way to give away your estate. Have your relatives participate in a scavenger hunt where the winner inherits all. Scavenger Hunt (1979) is exactly that. In this comic movie, the relatives and even the servants compete for the prize: the $200 million dollar estate.

Check out this review.

The Mummy Bequest

It is a personal decision whether or not you want your body donated at your death as organ transplants or even for medical research. In recent years it has become more and more common for individuals to make these kinds of donations. Alan Billis, a former British taxi driver, donated his body for scientific research. What makes his end-of-life bequest unique is that he donated his body to be mummified in the same way the pharaohs were mummified. In fact, the mummification process on Mr. Billis will become a documentary titled Mummifying Alan: Egypt's Last Secret. His family was supportive of Mr. Billis's decision and joke about their claim to a real live mummy in the family.

Read more about it here.

William Shakespeare and Edward De Vere's Estates

No matter which side you take--William Shakespeare is "the" William Shakespeare or Edward De Vere is "the" William Shake-speare--it is of interest to look how their heirs inherited each of their estates.

The Stratfordian Shakespeare's Will

William Shakespeare of Stratford prepared a will before he died.

To his daughter Judith he willed:
- 100 pounds for a marriage portion and another 50 pounds if she renounced any claim to the Chapel Lane cottage.
- An additional 150 pounds if Judith lived another three years, but forbade her husband any claim to it unless he settled on her lands worth the 150 pounds.
- If Judith did not live another three years, the 150 pounds was to go to Shakespeare's granddaughter Elizabeth Hall.
- A silver bowl
To is sister, Joan Hart, he willed:
- 30 pounds
- Life estate with nominal rent in the Western of the two houses on Henley Street, which Shakespeare himself inherited from his father in 1601.
To Joan Hart's sons, his nephews, he willed:
-5 pounds to each of Joan's three sons.
To his granddaughter, Elizabeth Hall, he willed:
- All his silver plates, except the silver bowl left to Judith.
To the poor of Stratford he willed:
-10 pounds to the poor of Stratford.
To his friends he willed:
- His sword and various small bequests to local friends.
- Memorial ring to be bought for his lifelong friend Hamnet Sadler
- Memorial rings to be bought for John Hemynges, Richard Burbage, and Henry Cundell
To his wife, Anne, he willed:
- His "second best bed."
To his daughter, Susanna and Son-in-Law, John Hall, he willed
- "All the Rest of my Goods, Chattels, Leases, Plate, Jewels & Household stuff whatsoever after my debts and Legacies paid & my funeral expenses discarded."

Oxfordian Shake-speare's Estate

Edward De Vere was the 17th Earl of Oxford. He inherited the Oxford estate when his father died. Titled property usually was inherited by the oldest son in a nobleman's family. Edward De Vere had only one living son, Henry, from his second wife, Elizabeth.

Edward did sell some of his estate during his life, and established a trust fund for his three living daughters from his first wife, Anne. His three daughters, Elizabeth, Bridget, and Susan all married men of title as well.

The remaining estate went to his second wife, Elizabeth, and his son, Henry, who became the 18th Earl of Oxford.

Joke of the Week

It usually takes five years for a tree to produce nuts, but this isn't true of a family tree.

Book Review: Special Needs Trust Administration Manual: A Guide for Trustees

Special Needs Trust Administration Manual: A Guide for Trustees, written by Barbara Jackins, with contributors Richard Blank, Peter Macy, Ken Shulman, and Harriet Onello, covers everything a trustee of a special needs trust needs to know in administering a special needs trust.

It is crucial that a trustee, especially if it is a family member of a special needs individual, understands how to spend special needs trust funds appropriately so that a special needs individual's government benefits are not harmed. It is also important for the trustee to report to government agencies how special needs trust funds were spent. This guide for trustees can be helpful in preventing mistakes that could cost a special needs individual dearly.

You can review the book here.

Movie Review: Greedy

The movie Greedy (1994, rated pg-13) is about an extremely wealthy uncle (Kirk Douglas) who knows his greedy relatives (Ed Begley, Jr., Phil Hartman, Michael J. Fox) want his money. He puts them through various tests including hiring a beautiful nurse from England. While watching the fun, it is of interest to see all the estate planning issues a family can actually go through.

Purpose Of Estate Planning

The purpose of estate planning is to transfer assets to beneficiaries at the times and in the manner desired by the owner efficiently, with minimal taxes, and without conflicts. This concise definition of the purpose of estate planning involves a lot of issues. The individual participating in estate planning must gain an understanding of all the issues. Look at the following site for an in-depth introduction to the various issues involved with estate planning.

Book Review: "Philanthropy Heirs & Values"

"Philanthropy Heirs & Values" written by Roy Williams and Vic Preisser discusses how to help heirs learn money principles during their growing up years so that they can wisely handle their inheritance once parents have died. The book is geared towards more wealthy individuals, but I think the principles they talk about could be used by any family to learn sound money skills and the joy of philanthropy.

Briefly, the authors discuss three general skills children need to learn: values, mission, and accountability. The authors further discuss how these three skills should be taught to children during five developmental periods of a child's life. The five developmental periods are:

Age 5-10 Awakening Years, discovering one's personal influence.
Age 11-15 Exploring Years, discovering self in the midst of change.
Age 16-20 Developing Years, understanding accountability.
Age 21-30 Applying Years, maximizing the value of contributions.
Beyond 30 Mentoring Years, unifying the family through Philanthropy.

You can find "Philanthropy Heirs & Values" here.