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When a client passes. As an Estate Planner, you plan for a client to pass away.  You do your best to help them “leave a legacy of peace and not a legacy of chaos”.  You help them create “The Plan”. Even though the topic of death is discussed every day in my office, it still has an impact on me when I get the call or email that: “Mr. Jones died Friday.  I just wanted you to know.” Their passage leaves a mark.  As an attorney, hopefully, I spent enough time with the client to make sure their wishes were accurately reflected. As a person, I may remember a laugh that we shared as we discussed their wishes.  I may remember what a delight (or tyrant) they were in our discussions. As a person of faith, was their salvation secure?  While the business of Estate Planning anticipates the passage of a client, I don’t know that as a person, you are ever fully prepared. 

This is a true story, from a lady who was in my office witnessing a client signing her Will.   It is also an example of the unlicensed practice of law.   I am both an attorney and an insurance agent. I have two (2) licenses. One (1) was hard to get. One (1) wasn’t. Guess which one (1) fits each category.   There is a lot of argument in the insurance and financial world about helping clients draft their Wills, Trusts and Powers of Attorney while getting paid to do so. Why?  Money .   Tennessee defines the practice of law as: As used in this chapter, unless the context otherwise requires: (1) “Law business” means the  advising or counseling for valuable consideration  of any person as to any secular law,  the drawing or the procuring of or assisting in the drawing for valuable consideration of any paper,   document or instrument affecting or relating to secular rights, the doing of any act for valuable consideration in a r...

  SUPER NERDY ALERT Did you ever watch the movie "Fight Club"?  If so, the persistent line throughout the movie is "Don't talk about Fight Club!"  Why?  Well, watch the movie. As many of you know, the i ntersection of law and insurance simply fascinates me.   Here's an instance of that:   All U.S. states have a State Guaranty Association.   These associations insure life and health insurance companies in case of failure.  Failure is rare, but it happens from time to time.  As both an insurance agent and an attorney, I have seen the results of this.  In that situation, the Guaranty Association worked out very, very well.  Consumers need to know that this program exists.  Who better to tell them than their insurance agent? For banks, consumers know that the Federal Deposit Insurance Corporation (FDIC) exists.  For their brokers, they know that the Securities Investor Protection Corporation (SIPC) exists.  How?...

  For the sake of clarity, the term "Estate Planning" applies everything from Wills and Powers of Attorney to elaborate Trusts.  "Do's": Update your documents more than once a decade.   That's right.   I recently saw a Will that was fifty (50) years old!   Fortunately, some of the folks listed in it were still alive. If your documents pre-date cell phones, update them! Read your documents.   Even if an attorney drafted the documents, read them. Make sure you understand the documents. Recently I saw a document where  the attorney did not change the name on the document from one (1) of his/her previous clients.   That document was invalid. You need to make sure the words on the page are what they need to be.  Love yourself and your family enough to have the documents.   Those who love their families  make difficult times easier  with documents that prevent the family from having to get court ord...

  Recently I had a client pass away.  Before this happened, we did her planning.  Her relatives came to see me after her passing.  I was able to say "she had her affairs in order". She wasn't wealthy.  Too often I hear people say "Why should I care, I don't have anything anyway?"  Well, having the proper documentation in order makes it easier on those you leave behind, who have to make decisions for you.  So, do you care enough to leave a legacy of peace?  If so, get your planning in order today. 

  Let that title sink in a moment.   " Double Asset Protection" What I don't understand is why every Fraternal Insurance Company is not screaming this from all their advertising outlets. Your thinking: "The Insurance Nerd has really lost his mind this time." Well, maybe, but not on this point. Tennessee Code Annotated 56-7-203 states: The net amount payable under any policy of life insurance or under any annuity contract upon the life of any person made for the benefit of, or assigned to, the spouse and/or children, or dependent relatives of the persons, shall be exempt from all claim s of the creditors of the person arising out of or based upon any obligation created after January 1, 1932, whether or not the right to change the named beneficiary is reserved by or permitted to that person.  Emphasis Added That's the first layer.   So, any money in any permanent life insurance or annuity contract "upon the  life of any person made for the benefit o...

FREE Call-in Clinic  “Aging Well with Law & Insurance” When:    Saturday, July 10th from 10:00 am to noon Central. Where: (615) 497-0763 Who:    Tennessee residents only What: Free, one-on-one consult over the phone.   Speak with a licensed Tennessee attorney and insurance professional on: Annuities Asset Protection Charitable Giving Medicare Supplements Powers of Attorney Probate Life Insurance Trusts Long Term Care Wills Other?

Do you have your own business?  It's great, isn't it?  Making all those decisions.  Having to buy the staples and copier.  And your delightful relationship with your silent partner, the IRS. Once all the euphoria of the above has passed, what's your succession plan?   How's the business going to pass along to other generations?  If you drop dead or are disabled, will your family have to clean up the mess?  If you are in a business with others, what's the succession look like? Most business succession plans include some sort of buy-out .  Normally, no one really thinks about this after the initial attorney drafts it.  How would you fund the buy-out?  Are you going to sell business assets?  Are you going to run a business with someone's widow, child, or girlfriend?  Or, is their life insurance on the business owners to fund it? Have I blogged on this before?  Yes .  Does it bear repeating? Yes . If you are in a small bu...

As an attorney who assists clients with Wills, Trusts, Probate, and Powers of Attorney, I see both good ideas and bad ones.  Here are a few of the really bad ones: Misspelling Names - whether it's your Will, Trust, Power of Attorney, Beneficiary, or Payable on Death forms, get the names correct.  Those coming behind you and wrapping up your affairs do not need to be explaining why you called "William" "Bobo".  Whether it's a financial group or a Trustee, matching a name on a document to a person should not be a challenge.  The solution, take a few extra minutes to confirm the names you are listing are the actual legal names of the people you wish to bless. Donating To The Government- You have a poor relative who is receiving Medicaid Long Term Care Services (they are in a state nursing home).  You would like to bless this relative upon your passing, so you list them in your Will, Beneficiary form, etc.  When you pass they now move from being poor, to a hi...

  In my Estate Planning, the topic of "planning for Medicaid" often comes up. I don't know why we, in the U.S., have gotten so oriented toward thinking we'll need "Medicaid" when we are one of the richest countries in the world.   I believe that planning for Medicaid is akin to planning for FAILURE. Why do I believe this?   As a teen, I worked in Nursing Homes and Assisted Living Centers. The staff always knew which beds were "Medicaid Beds". Those beds were always limited. Did they receive essentially the same care? Sure, but it was still known that the spot was "Medicaid".   Medicaid has limited options. Medicaid is subject to change at lawmakers' whims. Medicaid is designed for the truly poor. Why would triggering Medicaid be your goal?  Have you ever been in a Medicaid predominant  (only) facility and liked it?  Would you want to live that way?   I prefer to see people have more options as they age. I prefer to see people take mor...

The Probate process in Tennessee is quite simple.  COVID has made it even simpler with electronic filing and no appearance dockets.  "Death Taxes" and that sort of thing are really not much of an issue either for the average person. For most individuals, or couples, I encounter, complex planning is really unnecessary.  For those with vast, multi million dollar estates, more complex planning makes sense.  But for the average individual, it jut doesn't. A Will, a Durable Power of Attorney for Healthcare, a Living Will, a Durable Power of Attorney for Financial matters often do the trick.  If you have minor children, I also recommend a Durable Power of Attorney for Childcare.  These documents will cover the vast majority of what the average individual needs.  What are your thoughts?

  Are you concerned for yourself or a loved one aging?   A fantastic resource is from an unlikely source, the Centers for Disease Control (CDC).  STEADI (Stopping Elderly Accidents, Deaths & Injuries) has many resources worth your time.  The page I like the best is here .  Whether you are planning for yourself or a loved one, it is always easier to take a few steps toward the future than to play "catch up".  

When you started your business, you generated an Operating Agreement or some similar document. The document looked all nice and legal at the time. You signed it and moved on. The business had very little worth at the time, so you didn't pay much attention. Now, you are years into the business and you haven't given this document another thought. As you have aged and the business or partnership grew, you start to think about the agreement. In most Operating / Partnership Agreements there is a "Buy-Sell Clause" that is triggered by death or disability . When you started the business, those issues didn't matter. Now, they do.  What if? Do you have the capital to fund a buyout of your partner(s)? Do you like the idea of owning a business with your partner's wife and her new husband?   Wouldn't you like a source to fund this part of the agreement? Maybe it's time to take a second look at that document and figure out a way to fund it for pennies on t...

As both an #Attorney and an #Insurance Professional, weird scenarios go through my head from time to time.  Here's one. I have dealt with many #grandparents in my practice.  Most of them are great and beneficial to the lives of the grandchildren.  Some are not.  I've dealt with both sides of the issue. I seem to be having more and more issues lately with emotionally #toxic #grandparents, especially in the realm of #Juvenile and #Family #Law.  This applies to both #custody and #visitation. So, here's one of the thoughts bouncing around in my head:  If a married couple is trying to protect their minor children from the influences of a toxic grandparent(s), they need the following: Mirroring #Wills nominating a safe person to raise the child/ren should they both pass away.   The nominated person needs to agree (not necessarily on paper) and be aware of the situation with the toxic grandparent(s).  This person is known as a #Guardian. A Durable Power...

  Photo by @francesgunn Time and time again I see examples of people who thought it was a good idea to reduce their Estate Planning to a quitclaim of real estate to another person. That is NOT Estate Planning.  That's not even basic Estate Planning.  It's a bad idea.  Here's why: Quitclaims do not #communicate your wishes.  #Wills and #Trusts communicate your wishes.  Quitclaims can actually create questions without good answers.  "What did Mamma want to do?"  "Was Daddy coerced wrongly into the quitclaim." Quitclaims can create #taxable events.  Example, a parent quitclaims a child's name onto a property.  The parent has now "gifted" half (1/2) the property to the child immediately, not after death.  This can trigger a "gift tax", taxable by the IRS.  Admittedly, this is a tax that is often not pursued by the IRS, but it does not change the fact that the taxable event exists. If someone is just determined to quitcl...

Ready to plan for the future? Estate Planning has different means depending on who you ask. A common misconception is that Estate Planning is only for the wealthy. That is simply not the case.  For me, Estate Planning is having a discussion about what a person wants their legacy to be. Do they want to have a #peaceful #transition from their “working era” to their “#retirement era” and then onto passing away? Do they have specific ideas as to what they want their medical care to be, when they can’t make the decision on their own? Is there someone they trust to handle their #financial affairs while they are living? Is there someone they trust to handle their #estate once they pass away? Are there people they want to #bless once they are gone? Are there people they want to shun once they are gone? Who would they trust to raise their minor or disabled #children? Should you have Life Insurance, Long Term Care Insurance or start thinking about a #Medicare Supplement plan? These questi...

  " For #God will never give you the spirit of #fear, but the Holy Spirit who gives you mighty #power, love, and self-control. "  2nd Timothy 1:7 TPT Right now, there seem to be those who want you to be #afraid.  They want you to be #fearful.  Why?  For some, it's #control.  For others, it's financial gain. Scripture tells us to not living in fear, but in power, love and #self-control.  Why? Because those things that are to be feared in LIFE cannot affect us in our REWARD in #Jesus. The singer / song writer Keith Green stated it best when he said, "It took the Lord six (6) days to make the Earth.  Jesus has been working on our home in #Heaven for 2,000 years.  This is living in a garbage can compared to what He has in store for us."  Don't hold on to #garbage.  Don't live in fear.  Sharpen your #Kingdom perspective.

                                                                                                                          Image courtesy of pasja1000 and Pixabay. These are crazy times.  While this will pass, it has a lot of folks thinking about the "what ifs" in life.  What if I don't make it?  What will happen to my kids?  What will happen to my stuff?  Have I made adequate preparation ? So, here's some tips: Make sure your relationship is right with the Lord. Make sure you have a Will .  It makes the Probate process so much easier. Have at least a Durable Power of Attorney for Medical Care , ...