Santa Clarita Estate Planning Lawyer Discusses Divorce and Estate Planning
September 13, 2009
“John’s Ex-Wife Could Come Back To Haunt Him!”
Divorce can be very rough on the individual and their family. If you already have an estate plan in place, it is certainly time to review it after a divorce. After all, do you really want your ex-spouse making health care decisions, handling your estate for you, or having access to your accounts?
However, if you don’t have an estate plan, it may be an excellent time to establish one after your divorce to protect yourself and your loved ones. Single people are especially vulnerable without a plan in place.
Let me tell you a story:
John came to me shortly after his divorce. He wanted to find out if doing an estate plan made sense for him. Like most people, he figured estate planning is only for rich people (which is the biggest mistake most people make – do you ever wonder how reach people stay wealthy?).
I explained to him that estate planning deals with many issues, most having nothing at all to do with the amount of wealth one has or estate tax issues. It’s about protecting oneself and one’s family using the legal tools available to all, irrespective of wealth. I asked him, “What legal documents do you have in place in the event something happened to you? How will people be able to help you?”
John then explained why he got a divorce. There were many reasons, but the main reason was that John’s ex-wife always spent all their money, just as soon as it was deposited into their bank accounts. She did not believe in saving money and spent far more than they could afford. Financial problems often lead to divorce, and John’s marriage wasn’t immune.
Then John asked me the common question: “What if I do nothing at all?”
I explained that if he did nothing, California law would dictate what happened to his estate. If he remained unmarried, his estate would end up going to his 8 year old daughter. He seemed very relieved to hear that. However, I explained that a minor child can’t own real estate, and a life insurance company certainly won’t write a check to a minor. Also, during and after the probate process, the court would insist that any inheritance going to John’s daughter be managed by her guardian.
Then I asked a question: “Who would likely be your daughter’s legal guardian if you died?”
There was a silence.
Then he said, “Oh my God…my ex-wife would control everything!” And I added, “Yes, and anything left (if anything) would go to your daughter at age 18 so her no-good boyfriend could steal the rest.” Of course, there is no boyfriend in her life yet, but some people stand in line to be a boyfriend/girlfriend when there is money involved.
Needless to say, John quickly appreciated the need to establish an estate plan to protect his daughter…to make sure her inheritance was handled properly (and out of reach from his ex-wife). By the way, this story is not intended to malign the ex-wife as the roles could easily have been reversed.
In addition, we made sure John had a solid Durable Power of Attorney and Advance Health Care Directive to further protect him and his estate.
Rob Mansour
Santa Clarita Estate Planning Lawyer
Santa Clarita Injury Attorneys
Santa Clarita Wills & Trusts Lawyer Discusses Lessons from Michael Jackson
September 13, 2009
Personally, I was sad to hear about Michael Jackson’s death. Part of me always admired his accomplishments, and I was curious to see how his career would continue unfolding.
For a fellow that many considered quite strange, Michael Jackson really got some things RIGHT when it came to planning for his estate. Some lessons can be learned as the story unfolds before us.
Here are FIVE MAJOR LESSONS Michael Jackson leaves behind:
Lesson #1: GET YOUR LEGAL DOCUMENTS IN ORDER: Michael had his legal documents in order. Around 66% of Americans have absolutely no plan whatsoever. As a result, much of his affairs will likely remain private, and his wishes will likely be followed.
Lesson #2: BE SPECIFIC ABOUT WHO INHERITS: Michael avoided potential misunderstandings by naming each of his children and specifically excluding the mother of his two older children, Debbie Rowe, from any inheritance. While that may not have been necessary, because the couple were no longer married, but it makes clear that Jackson purposely omitted her, rather than committing an oversight. Anna Nicole Smith’s documents did not mention her daughter which led to a great deal of argument in the courts. His living trust purportedly gives some of his estate to his children, some to his mother, and some to charity. Without the right documents, his wishes would be easily thwarted.
Lesson #3: A LIVING TRUST CAN BE HELPFUL: Michael Jackson had a living trust. While assets in a trust avoid the court-involvement of probate, a trust also provides for family privacy. As such a public figure, he probably wanted to keep things as private as possible. Truth be told, most families and individuals would rather their affairs remain private. His children will also be cared for and their money will likely be managed properly. By having a solid trust, his wishes are much more likely to be followed.
Lesson #4: NAME GUARDIANS FOR YOUR KIDS: Michael named guardians for his children. In writing his will, Jackson named guardians for his children, all of whom are minors. Without doing so, the court would have made the choice about who would raise the kids. Jackson selected his mother as primary guardian and singer Diana Ross, his longtime friend/mentor, as backup. Although the court has to sign off, most judges abide by a parent’s wishes unless there is a compelling reason to ignore them. While courts usually favor the biological parents, Debbie Rowe reportedly gave up her parental rights several years ago and later petitioned to have them reinstated, leaving the legal picture murky. Still, Michael made his wishes know which beats being silent on the issue.
Lesson #5: ASSEMBLE A GOOD TEAM: As an arguably strong businessman, Jackson named a top-notch lawyer, John Branca, and a smart business executive, John McClain, as co-executors of his will and co-trustees of the family trust. Despite a challenge by Katherine Jackson (who reportedly filed for bankruptcy years ago), Branca and McClain were awarded control of the estate. To some extent, choosing outsiders was a wise move to prevent arguments among family members.
Whether you think Michael was a genius, or an eccentric individual, or as bizarre as they come, Michael got one thing right – an apparently solid estate plan that, for the time being, seems to be working for him and his family.
Rob Mansour
Estate Planning: http://www.MansourLaw.com
Personal Injury: http://www.ValenciaLawyer.com
1) If your vehicle sustained damages, take plenty of photos of the damage to your car and the other car – if you can. Many cell phones have cameras, or if you don’t have any kind of camera, have a friend or family member buy a cheap camera from a nearby store and take as many photos of the scene and the vehicles as you can. If you call them from the scene, ask them to bring a digital camera with them.
2) If you have visible injuries (bruises, scrapes, cuts, etc), have a friend or family member take photos of those injuries ASAP! You can talk to people about your injuries all day, but showing them photos is an entirely different story!
3) Be civil at the scene of the accident. There is no need to fly off the handle. Things you say and do at the accident scene often come back to haunt you. Don’t apologize for the accident unless you are 100% sure you are at fault.
4) The insurance company for the other party will likely want to take your statement by phone or otherwise. You are under no obligation to do so. In my experience, there is very little (or nothing) to be gained from giving a statement. At least talk to a lawyer first. The insurance company representative will often act interested in your case, sympathetic, etc…but in my experience, they are usually trying to “box” you into a story so you can’t argue otherwise in the future.
For example, they will ask, “How do you feel?” Then you will say, “Well, considering all that happened, I feel OK.” Then a few days later when you can’t move due to sore muscles, or worse, you may decide to file a claim. They will say, “Well, we took your statement the day after the accident, and you said you feel “OK” so we don’t understand why you’re changing your story!”
5) Finally, if you were injured in the accident (or even if you’re not sure!), by all means seek medical help (at least an exam) as soon as possible. Most people try to “tough it out” or “see how they feel” before deciding to see a doctor. One of the biggest reasons personal injury claims fail, or get short-changed, is because the individual waited too long before seeking medical attention. How long is too long? In my experience, insurance companies will give you a very hard time and discount (or even deny) any injury claim if you wait longer than one week. Remember your actions speak louder than words.
Robert Mansour
http://www.mansourlaw.com
http://www.valencialawyer.com
I met a client today who lost her husband several months ago. He was an unfortunate victim of cancer. As we discussed their matter, we found out that hardly any of the assets were actually in the name of the living trust. Most were not. Assets in the name of the trust are governed by it. Assets NOT in the trust are NOT governed by it. Therefore, we found out their living trust really didn’t mean very much because hardly any assets were titled in the name of the trust. It should be known that when it comes to assets, “Title” is “King.” That means the title to an asset trumps any will or trust you may have written. Therefore, you might have a living trust, but it may not even matter if you don’t retitle your assets to the trust’s name.
Robert Mansour
http://www.MansourLaw.com
http://www.ValenciaLawyer.com
When the issue of estate planning comes up, some people tell me, Oh, weve already taken care of that. Then I ask them some specific questions about their plan, and the answer is almost always, I dont know. What kind of a plan is that? Thats like saying you just had surgery, but youre not sure what surgery it was.
If you already have an estate plan, ask yourself the following questions:
1. Do you have a testamentary trust or a living trust?
2. What kind of living trust do you have? Is it what you need?
3. Do you have a Schedule A somewhere in your plan?
4. How do successor trustees take charge? What is the system of succession and is it spelled out clearly?
5. Are your assets clearly designated as community property or separate property?
6. Are all your beneficiary designations in order? When was the last time you checked?
7. Is your life insurance payable to your spouse? Your kids? Your Trust? What is best for you? Perhaps you should remove the life insurance from your estate for tax reasons?
8. Does your trustee or agent under power of attorney have the ability to help you qualify for state assistance if necessary?
9. Is your trust revocable or irrevocable? Who has the power to do so? If it is revocable, when does it become irrevocable?
10. Do you have a HIPAA authorization?
11. When does your Durable Power of Attorney become effective?
12. Was your Health Care Directive executed prior to 1992?
13. Does your Health Care Directive really capture your wishes? When is it effective?
14. Are the people youve chosen willing to serve?
15. Do you have a community property agreement? Do you need one?
16. Have you given any direction to the guardian of your children or have you simply nominated someone without any further instruction?
Of course, there are more questions to consider, but this is a good start. If you dont know the answers to these questions or would like your plan reviewed, please feel free to make an appointment. Your plan should reflect your wishes, and your lawyer should explain things to you. I want my clients to actually understand their plan not just have one.
Robert Mansour
http://www.MansourLaw.com
http://www.ValenciaLawyer.com
