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  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 of

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?

I am an insurance nerd. I admit it.  My previous career was as a Property and Casualty Insurance Adjuster.  I reviewed a lot of policies and case law.  Tennessee law is quite clear when it comes to interpreting contractual insurance policy language.  Tennessee law will enforce it.   Very few policies have wording that's truly hard to understand.  So, the words on the page are pretty easy to figure out. In this recent case , the homeowner had moved out of the house and allowed someone else to move in.  IT HAPPENS ALL THE TIME.  The problem is that you have to make sure the insurer is aware and then something bad happens, like a fire.   The same goes for unoccupied residences, which often comes up in Probate cases.  Ignore the policy wording at your own peril!

I get this all the time.  Here's how the conversation goes: Me:         Are your Will and your Powers of Attorney documents up to date? Caller:      Yes, I bought them online ten (10) years ago. Me:        Was the Will typed or handwritten? Caller:     Typed. Me:          When you signed the Will, did you have two (2) witnesses? Caller:     No, just the notary. Me:          That does not sound like a valid Tennessee Will.  When would you like to come and see me? Caller:     Wait? What? But I paid the online service for it! The Tennessee statute for wills, other than handwritten, states: Tenn. Code Ann. 32-1-104: (a) The execution of a will, other than a holographic or nuncupative will, must be by the signature of the testator and of at least two (2) witnesses as follows: (1) The testator shall signify to the attesting witnesses that the instrument is the testator's will and either: (A) The testator sign; (B) Acknowledge the testator's signature already made; or (C) At the

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 business with others and can't answer my qu

In Estate Planning for older individuals, a key is whether or not they have the necessary capacity to enter into the documents they are signing. In Tennessee, and I'm sure many other states, the person does not have to have perfect health and mental recollection for that.  Here's a recent case where the court reiterates the standard.  It states ...all that is necessary is “that the contracting party reasonably knew and understood the nature, extent, character, and effect of the transaction ." That's it.  It's not superhuman.  It's not even the standard of the "reasonably prudent man".  It simply whether or not they reasonably know and understood the transaction, at the time of the signing.   In this case, the issue is over a Power of Attorney, which led to a skilled facility admission, then a death, and then a lawsuit.  Isn't it amazing how a domino effect can wind up in litigation?  It was all from one apparently "simple" document. May

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 hig