Category Archives: Medical Powers of Attorney

Undue Influence?

Posted on by under Business Succession Planning, Business Transitions, Elder Law, Estate Planning, Estate Tax, Family Business, Financial Powers of Attorney, Gift Tax, Gifts to Minors, Illiquid Assets, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Probate, Small Business, Trusts, Wills

This NY Times article discusses how a hospital manipulated a long term patient (net worth > $100 million) to obtain gifts, pledges, and other favors from her. Undue influence is a common probate or trust litigation issue. Wills in Kansas and Missouri are only valid if executed without undue influence. Most attorneys hear undue influence and think of a child or other prospective heir trying to persuade a family member to favor them over other relatives or heirs. But what about organizations, hospitals, and others looking for a piece of an individual’s or family’s inheritance? Food for thought.

If my law firm, Johnson Law KC LLC, can help you or your family with your estate planning needs, call (913-707-9220) or email me (steve@johnsonlawkc.com) to schedule a free, convenient consultation.

(c) 2013, Stephen M. Johnson, Esq.

Talking to Family about Inheritances

Posted on by under Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Estate Tax, Family Business, Family Limited Partnerships, Financial Powers of Attorney, Gift Tax, Illiquid Assets, IRA, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Probate, Small Business, Trusts, Wills

CNBC has this article about a recent US Trust study about when parents should talk to their children (and grandchildren) about inheritances. As the article points out, many children of wealthy families realize they’re wealthy based on the lifestyle they enjoy. But there’s a big difference between knowing “My family’s wealthy and takes exotic vacations” and knowing “Mom & Dad have XYZ income each year, a house held in ABC trust, a controlling interest in Family Co LLC, a vacation home also held in trust, and a net worth of $_______.” When to tell family members specifics is an important question to consider in careful consultation with your family’s accountant, attorney, and other professional advisors. As the article suggests, maturity levels, financial acumen, and other factors come into play. But as the article rightly concludes, “even if parents don’t give their kids “the number” for their wealth, they should at least give them the skills and the values to manage it well.”

Beyond the tax and legal details of structuring entities that attorneys and other wealth advisors do, imparting skills and values to manage a legacy is vital. Without the skills and values, a child or grandchild may not know how a family member became wealthy, why a family member managed their lifestyle as they did, or what legacy the wealth should have. I encourage clients to be open and honest with their families when the time comes to discuss inheritance and legacy. But don’t just give your family the numbers, give them the context and share your values and passion and legacy with them.

If my law firm, Johnson Law KC LLC, can help you or your family with estate planning or asset protection needs, or give you ideas for spurring these important conversations with your family, please call (913-707-9220) or email me (steve@johnsonlawkc.com) for  a convenient free consultation.

(c) 2013, Stephen M. Johnson, Esq.

Elder Law and Finances

Posted on by under Elder Law, Estate Planning, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Probate, Retirement, Special Needs Trusts, Trusts, Wills

CNBC has this interesting article about a dilemma many people face – when to take over an elderly parent’s checkbook and finances. To pay bills for an elderly parent, you must have a durable financial power of attorney in place. There are a myriad of elder law issues to examine as well. You need an experienced estate planning and elder law attorney to help guide you and your loved ones.

If my office, Johnson Law KC LLC, can help you or your elderly parent with your estate planning or elder law needs, give me a call (913-707-9220) or email me (steve@johnsonlawkc.com) to schedule a convenient, free consult.

(c) 2013, Stephen M. Johnson, Esq.

Cross posted to The KC Elder Law Blog.

Marriage and Taxes

Posted on by under Estate Planning, Estate Tax, Financial Powers of Attorney, Generation Skipping Tax, Gift Tax, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Trusts, Wills

You’ve probably seen news stories about the Supreme Court arguments this Tuesday and Wednesday in the gay marriage cases, Hollingsworth v. Perry and Windsor v. United States. This blog doesn’t take political positions, but the Windsor case presents an interesting marriage and tax question. Windsor involves a lesbian couple who were legally married in New York, where one of the spouses died, and the surviving spouse tried to claim a marital deduction for estate tax purposes. One of the federal tax benefits to being married is that the surviving spouse can claim a marital deduction on the estate tax. The government denied the marriage tax benefit in Windsor because under federal law (the Defense of Marriage Act (1996) (“DOMA”)), marriage is defined as between 1 man and 1 woman, so a lesbian couple isn’t married under federal law. So Ms. Windsor, the elderly widow from New York, doesn’t get the marriage tax benefit, even though she was legally married under New York law (marriage is a state law issue, and New York allows same-sex marriage). Ms. Windsor sued the government, arguing that DOMA is unconstitutional, because it prevents her from receiving the tax benefit she would get if federal law recognized her as legally married (like New York’s law did).

So does Ms. Windsor get her tax benefit, does DOMA’s marriage definition fall, or will something else happen? We will know by the end of June, when the Court issues its opinions. Ms. Windsor’s case may well join the annals of tax law stories.

If my office, Johnson Law KC LLC, can help you navigate the complex labyrinth of tax law and estate planning, give me a call (913-707-9220) or email (steve@johnsonlawkc.com) for a convenient free consult.

(c), 2013, Stephen M. Johnson, Esq.

Kansas City Wealth

Posted on by under Business Succession Planning, Business Transitions, Estate Planning, Family Business, Financial Powers of Attorney, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Retirement, Roth IRA, Small Business, Trusts, Wills

The Forbes annual billionaire list has many old names and a few fresh faces. This year, 4 Kansas City area residents made the list – Neal Patterson, of Cerner, Donald Hall, of Hallmark, and Min Kao and Gary Burrell, of Garmin. Congratulations to each of them on successfully building and preserving wealth amidst a challenging economic environment.

Most of us won’t be making the Forbes billionaire list any time soon. But most of us do have homes, cars, bank accounts, stocks, or a retirement plan. Everyone from Bill Gates to Joe Six Pack needs estate planning documents. Don’t bet on legal forms from the Internet or library. Two things to think about: (1) if you’re an adult, you need a will, living will, and durable medical and financial powers of attorney, and (2) if your family’s future well being is at stake, you want to be sure everything will work smoothly when it’s needed. If my firm, Johnson Law KC LLC, can serve your estate planning or business transition needs, call (913-707-9220) or email (steve@johnsonlawkc.com) me for a convenient, free consult.

(c) 2013, Stephen M. Johnson, Esq.

Reading Your Trust (and Estate Plan)

Posted on by under Business Succession Planning, Estate Planning, Family Business, Financial Powers of Attorney, Gifts to Minors, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Prenups, Retirement, Small Business, Trusts, Wills

Read your trust. Yes, I know, reading a will, trust, or almost anything written by a lawyer (except John Grisham or Scott Turow) sounds as appealing as doing your taxes, having a root canal, getting caught in a blizzard, or spending the night in an airport. And understanding “legalese” is even more daunting. Let’s face it: most lawyers don’t write well, and when they do write, they level forests, producing 50 page “briefs”and minor novellas by the hour. Lawyers speak legalese and often leave a trail of misplaced participles, dangling modifiers, and bizarre archaic phrases (e.g. “hereafter,” “heretofore,” “said party of the first part,” “such party of the second party,” “inter alia,” “res ipsa loquitor,” “stare decisis et non quieta movera,” “cy pres,” “stipulated,”  “subsequent,” “give, bequeath, and devise,” and “situate”). Most people don’t read the small print, we all just want to get it done (and leave the details to the professionals). People hire lawyers to apply their wishes and desires for the future to their family’s legal landscape: clients tell lawyers “we want X,” now figure out how to do it. And lawyers are the professionals who what you need in a will, trust, living will, powers of attorney, and who can answer your tax issues, and other vital questions.

If you’d like to work with a lawyer who speaks and writes in plain English and can help you decipher the legalese of your trust and other estate planning documents, give me a call (913-707-9220) or email me (steve@johnsonlawkc.com) for a convenient free consult with my firm, Johnson Law KC LLC. We practice law differently.

(c) 2013, Stephen M. Johnson, Esq.

Selecting a Trustee

Posted on by under Business Succession Planning, Business Transitions, Estate Planning, Family Business, Financial Powers of Attorney, Gifts to Minors, Illiquid Assets, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Prenups, Probate, Retirement, Small Business, Trusts, Wills

So you’ve decided it’s time to do some estate planning and you’ve talked with you estate planning attorney. And the lawyer asks who you want to serve as trustee. A friend or family member? Your bank or a trust company? Here’s a helpful article on some non-legal issues to think about when selecting a trustee.

The lawyer walks you through some of the pros and cons of each option – a friend or family member probably won’t expect to be paid for their service, but they may not know anything about investments or administering the trust for you and your family, so they could jeopardize your financial legacy to your descendants. A bank or trust company will usually serve for a fee of 1%/year of assets under management and they have professional investment and advising services included (so you’ll be getting a good return on investment and monthly or quarterly financial statements), but they might not want real estate or closely held (and non-diversified) business interests or other assets in the trust. And banks and trust companies often change through mergers and other business deals over the years, not to mention the internal turn over of trust officers and employees that you actually work with.

Even if you don’t set up a trust, the lawyer will ask a similar question about your will (who’s your executor?), your living will and your financial and medical powers of attorney (who’s your agent/attorney in fact?). Who’s going to be making decisions on your behalf? Who do you trust to handle your last affairs and settle your estate? The law doesn’t provide many answers, but a good estate planning lawyer can walk you through your options, and help you select the person or institution best suited for your unique situation and your needs. If I can help you on your estate planning journey or answer any other questions, please give me a call (913-707-9220) or email me (steve@johnsonlawkc.com) for a convenient appointment with my firm, Johnson Law KC LLC.

(c) 2013, Stephen M. Johnson, Esq.

Final Boarding Call: Estate Planning in 2012

Posted on by under BDITs, Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Estate Tax, Family Business, Family Limited Partnerships, Financial Powers of Attorney, Generation Skipping Tax, Gift Tax, Gifts to Minors, Illiquid Assets, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, QPRTs, Small Business, Special Needs Trusts, Trusts, Wills

The WSJ has this helpful article reminding folks to get their estate plans in order, especially for families with $1 to 5 million+ in assets. As we ring in the new year in a few short months, if Congress hasn’t done anything on the tax front, you’ll see several changes hitting your pocketbook. The Bush tax cuts will expire – so you’ll owe tax if you (1) die with more than a $1 million estate, if you (2) give more than $1 million to family or friends, or (3) if you do more than $1 million generation skipping transfers (e.g. grandparents to grandchildren). Portability is also set to expire, so you won’t be able to use your predeceased spouse’s estate tax exemption. The Obama payroll tax cut will also expire – so you’ll have less take home pay from each paycheck. Like the historically low interest rates now in play, we may not see estate and gift tax laws that allow you to pass on your hard-earned wealth and leave a legacy for your family again in our lifetimes.

Echoing the anecdotes offered in the WSJ article, our firm has been very busy lately, and our appointment calendars are filling up with work, as are the other professionals we work with to best serve clients with a holistic approach. If you need to do any estate planning, business, or real estate work before 2013, it’s time to act. If you have a small business, real estate interests, or other potentially hard-to-value assets, you may need to have an appraisal done before structuring your business succession plan, or setting up a family limited partnership (FLP) or family LLC. Appraisers’ schedules are filling up, so if you’re thinking of passing on your business or real estate holdings, it’s time to bite the bullet and get it done. Your family will thank you and you’ll be able to enjoy the holidays with the peace of mind that everything’s taken care of according to your desires.

We offer a free 1/2 hour consultation, convenient and affordable flat fee billing, and we’re a simple phone call or email away at (913) 7o7-9220 or steve@johnsonlawkc.com. At Johnson Law KC LLC, we look forward to serving your legal needs.

(c) 2012, Stephen M. Johnson, Esq.

Estate Planning: Beyond Taxes

Posted on by under Digital Estate Planning, Estate Planning, Estate Tax, Family Business, Financial Powers of Attorney, Generation Skipping Tax, Gift Tax, Gifts to Minors, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Probate, Small Business, Trusts, Wills

Conrad Teitell, a noted tax and non-profit lawyer, has these helpful tips to remind people that while a good estate plan will minimize or completely avoid taxes for your and your family, estate planning is about more much than taxes. I would add that consulting with an estate planning attorney is crucial. Any adult with any complexity in their life (married, divorced, kids, grandkids, house, more than $50,000 in assets, business interests, life insurance, IRAs, favorite charities or college, anticipated inheritance, etc) needs to talk with a lawyer about their estate plan.

Every adult needs a will and/or trust, a living will, and durable financial and medical powers of attorney. Our law firm’s estate planning documents include digital estate planning provisions (for email, social media, digital photos, online banking, and more) standard. While digital estate planning is a cutting edge field and certainly not included in most online legal services or other one-size-fits-all forms, at Johnson Law KC LLC, we listen to your needs and provide custom tailored solutions that will protect you and your family for generations to come. Give us a call (913-707-9220) or email us (steve@johnsonlawkc.com) for a free 1/2 hour consultation on your estate plan.

(c) 2012, Stephen M. Johnson, Esq.

Estate Planning Made Easier

Posted on by under Business Succession Planning, Business Transitions, Digital Estate Planning, Estate Planning, Estate Tax, Family Business, Financial Powers of Attorney, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Probate, Small Business, Trusts, Wills

Here’s a helpful article from Fox News offering 5 tips for preparing a will and estate planning documents. They are:

1. Make a plan – what do you want to happen to your assets when you die?

2. List your assets – what different accounts, cars, house, and other stuff do you have?

3. Name an executor – who’s going to handle your final affairs and administer your estate?

4. Consult an expert – use a good estate planning attorney, accountant, and financial advisor

5. Leave a note – how do you want your funeral handled? Who should your family call after you die?

While thinking about estate planning is often unpleasant or morbid, we try to make the estate planning process easier and help you gain the peace of mind and assurance that your family is taken care of and well provided for. Whether you’re in Kansas or Missouri, young or old, single or married, wealthy or just starting out your career, we’re here to serve your estate planning needs. Call our office (913-707-9220) or email (steve@johnsonlawkc.com) us for a convenient appointment and let’s begin the estate planning journey together, for you and your family’s sake. We offer a free 30 minute consultation and convenient, no surprises flat fee billing to our estate planning clients.

(c) 2012, Stephen M. Johnson, Esq.