In the month of August of this year and even early September, many areas in Michigan saw historic flooding and sewer backups after quick and intense storms blanketed various areas of the state. Based on several conversations I have had with clients regarding their homeowners insurance policies, many have learned the hard way about storm insurance coverage.
I recently represented a client who was appointed as successor trustee of his father’s trust. The father, just prior to his death, held a “family meeting” to announce his intentions to change certain distribution of asset provisions in the trust that would apply after his death. The family meeting was held, the changes were announced but nothing was done to actually amend the father’s trust.
Upon the father’s death, my client’s brother, whose share was decreased by the father in the family meeting, sued my client to obtain his original share of the trust assets.
In my experience assisting families with succession planning for legacy assets such as their family business, cottage or farm, the biggest challenge I’ve found is making sure there is enough money to pay for the immediate obligations after the current owner’s death. These obligations can be in the form of taxes, possible interruptions to business operations, and revenue and debt service. The obligations also may extend to longer-term capital needs such as paying the bills for these assets.
Domestic violence has been making news headlines lately, mainly because of the high-profile cases of the National Football League players Ray Rice, Adrian Peterson and others. This publicity has drawn attention to the ambiguity surrounding the NFL’s established policy on domestic violence and other off-the-field transgressions by players.
Factors to Consider
People view life insurance as a contingency plan if something bad happens in life. That view, however, is not the whole picture when it comes to considering life insurance as a planning tool. Life insurance can be a solution to several challenges in estate, business and cottage planning situations. As such, it is not only a contingency plan, but it can be a primary tool to serve a specific purpose in a person's overall succession plan.
Periodically Dan Penning will appear in the local media to discuss various matters relating to Cottage Law, Estate Planning, Business Succession Planning and Asset Protection.
Families Preserve Their Best Memories of the Family Cottage Through Succession Planning
Spring triggers the annual migration of cottage/cabin owners back to their summer homes after the long, cold winter – or, for those more fortunate, spending time at warm climate retreats. Spring also brings the excitement and anticipation for a new season of warm, muggy nights, fishing, watersports, campfires, and the constant coming and going of family members and guests at the family cottage.
As life circumstances change (birth, marriage, divorce, death), it may become necessary to make changes to your estate planning documents. If estate planning documents are not kept up-to-date, they can become useless. The best way to make changes to estate planning documents is to either restate an estate plan in its entirety or make specific changes to documents like a will through a codicil or a trust through an amendment to the trust.
Have You Included Your “Digital Assets” in Your Estate Plan? Part 2 -- Does Your Estate Plan Include Provisions Regarding Your "Digital Assets"?Thu, 04/03/2014 - 09:25 — superadmin
In last week's blog, I introduced the concept of including digital assets in your estate plan. Today's blog is a follow-up providing additional substantive information regarding estate planning issues and planning for digital assets.
Why Think About Digital Assets?