Orlando Estate & Elder Law

Does It Pay To Pre-Paid Funerals

In the U.K., families are discovering that many pre-paid funeral plans do not cover all of the costs of funerals. Americans often face the same problem.

Funerals can be very expensive and they get more expensive all the time. To spare their families the expense of paying for their funerals and to hedge against future price inflation, a growing number of people are choosing to get their own pre-paid funeral plans.

The U.K., for example, has seen a huge increase in the number of people that get these plans. However, very frequently the plans do not cover all of the funeral costs.

There are often hidden expenses, such as flower arrangements.

Funeral companies have made it very difficult for many people to learn what is and is not covered. They also face stiff sales competition, so they exclude more and more services from the pre-paid plans.  They often give the customer a lower price, without always telling the customer what is not included.

The Guardian reported on this in "Pre-paid funeral plans failing to cover the cost of dying."

The same thing happens all over the U.S. and can create difficulties for many families.

Estate plans often include ways to pay for funeral services. However, if an estate planner incorrectly thinks the full cost of a funeral is paid for, then they are unlikely to leave extra money for the funeral in the estate plan.

That means families often need to take assets dedicated for other things to pay for some funeral costs.

If you get a pre-paid funeral plan, make sure that everything is included before signing the contract. If you are not sure if it is, then speak to an elder law attorney.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: The Guardian (July 8, 2017) "Pre-paid funeral plans failing to cover the cost of dying."

Should You Consider A Stealth Trust? Shhhh!

It is possible to create a trust that leaves beneficiaries uninformed about all the details of the trust and, in some cases, even the existence of the trust itself. That can have its benefits, but there are also potential drawbacks.

One of the most common ways to minimize the estate tax burden is to create an irrevocable trust that delays any distributions to beneficiaries until a later date. One of the big issues people often have with creating that type of trust, is fear of telling their younger relatives they are the beneficiaries of a substantial trust.

It is not always a good idea to tell a teenager or college student, for example, that in the future they can expect to receive large trust distributions.

Why?

This might have the unintended consequence of causing them to apply themselves less to their studies.

A potential way to avoid that problem is by using a silent trust, as Financial Advisor explained in "I Have a Trust?"

As the name implies, a silent trust keeps beneficiaries in the dark about the existence of the trust, or some of the details, until a later specified time. This could be upon reaching a certain age or graduating from college.

Beneficiaries cannot be negatively affected by a trust if they do not know about it.

However, there is a major drawback.

Beneficiaries who do not know about a trust cannot monitor the trustee to make sure the trustee is not disregarding his or her fiduciary duty.

The rules concerning silent trusts vary greatly from state to state, and some states do not allow them.

If it is something that you would consider creating, then it is vital to do so with the expertise of a wills and trusts attorney.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Financial Advisor (June 22, 2017) "I Have a Trust?"

Jenner Sisters Usurp Images of Deceased

Kendall and Kyrie Jenner recently learned that their fame does not give them license to infringe an estate's rights to the deceased's image.

It is not exactly clear what Kendall and Kyrie Jenner are famous for. They just are.

Every month or so, the Jenner sisters just pop into the news over something or other. If other people did the same thing, no one would care. It would not be newsworthy.

It's plausible that their skill at getting that media attention is what they are most famous for doing.

However, the sisters recently learned that there are bad ways for them to use that skill, because it can get them sued by an estate.

TMZ reported on this in "Notorious B.I.G. Estate Warns Kendall & Kylie Jenner Lawsuit's Coming, Unless."

The sisters created T-shirts with the images of deceased rappers Tupac Shakur and Notorious B.I.G.

Problem?

They superimposed their own images and logo over the rappers' images and offered the shirts for sale on their website.

It is not clear why they thought they could do this, since they did not seek permission from the artists' estates to use the images.

Notorious B.I.G.'s mother was deeply offended. His estate's attorney sent the sisters a cease and desist letter with a deadline to stop selling the shirts or face a lawsuit. The Jenners quickly complied and took the shirts out of their store.

The lesson for the sisters here and for anyone else, is that just because a person has passed away, you cannot use his or her likeness in your own commercial enterprises without permission.

The estate of the deceased holds the rights to that likeness and can sue for infringement.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: TMZ (June 29, 2017) "Notorious B.I.G. Estate Warns Kendall & Kylie Jenner Lawsuit's Coming, Unless."

The Medicaid Debate Is Personal

Most Americans do not think about Medicaid very much. They think that it is just the health care program for poor people that they will not personally ever need. However, if you have any desire to live into old age, then you should be concerned about the debate over the program currently going on in Congress.

Medicaid is the extremely expensive government program. It is intended to provide health care for the poorest Americans.

Medicaid is often an easy program for politicians to attack as too costly, because most Americans are not poor and do not think they will ever be poor enough to qualify for Medicaid.

Thus, when a politician talks about cutting the costs of the program, it is easy for many people to nod their heads in agreement.

The problem?

Medicaid is not that simple.

Many people who do not think they will ever need Medicaid are mistaken, as The New York Times points out in "Plan on Growing Old? Then the Medicaid Debate Affects You."

Medicaid provides health care for a substantial number of the nation's elderly.

More than 60% of people in nursing homes have their care paid for by the program. Many more receive home health care through the program.

If you grow old and outlive your retirement funds, which is easy to do given the costs of health care for the elderly, then you might need Medicaid to pay for your care someday.

We should all take a personal interest in it, because our future interests are at stake.

For more information about Medicaid and estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: New York Times (June 30, 2017) "Plan on Growing Old? Then the Medicaid Debate Affects You."

Heirs Fight Over Assets and Debts

People with a significant amount of debt should consider specifying how those debts should be paid in their wills. It could save their executors and heirs some headaches.

Most people will pass away owing money to someone. It is unavoidable in America's credit based economy.

Those debts we still have do not simply disappear when we die. Instead, they must be paid out of the assets of our estates, before anything is distributed to our heirs.

Most of the time this does not create substantial problems,  since the debts of a deceased person are fairly small relative to the total assets of the estate. However, some people do carry very substantial debt loads.

This death debt load can create problems for heirs and executors, as the Wills, Trusts & Estates Prof Blog explained in "Use Your Will To Specify How To Handle Debts."

Large debts can leave executors scrambling to figure out which estate assets to sell to pay off the debts. Heirs who thought they might receive a particular asset or a specific amount of money, might be disappointed to have the asset sold or to have their inheritance reduced to pay off the debts.

One way to avoid these potential problems is to specify in a will exactly how your debts should be paid and to do so, before listing how your assets should be distributed to heirs.

It is easier for heirs to accept that they will not inherit something because of debt, if a will never states that they should have it in the first place.

Specifying how to handle your debts also makes handling them much easier for an executor.

If you have large debts and would like to incorporate handling them into your will, visit an estate planning attorney for advice about how to do so.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wills, Trusts & Estates Prof Blog (July 3, 2017) "Use Your Will To Specify How To Handle Debts."

Real Life Hotels for Corpses

A rapidly changing society and high costs have caused many Japanese families to forgo traditional funerals. Corpse hotels have arisen to meet their needs.

In American popular culture, Japan is normally portrayed as a very rigid and tradition-bound country. In some ways that is an accurate depiction, but things change in Japan just like in other countries.

Japanese funeral services have traditionally been elaborate, expensive affairs.

First, the body of the deceased is taken home and everyone in the neighborhood is invited to view it. The next day, the body is cremated and the ashes are taken home for another 49 days, after which they are buried in a local cemetery.

However, those services are extremely expensive and the country has a shortage of crematories.

This has many Japanese families turning to corpse hotels, as The New York Times reports in "Crematory Is Booked? Japan Offers Corpse Hotels."

In some ways, these corpse hotels are just like any other hotel. People can stay overnight in a traditional hotel room that has the usual amenities.

The difference?

Across the hall from the living guests are rooms that house the bodies of their deceased family members, while they await an open crematory. Japanese people are less likely to know their neighbors than they once did. Consequently, they do not see the need to hold an elaborate funeral for the entire neighborhood.

There is also a cost saving. Corpse hotels can cost a tenth of what holding a traditional funeral would.

The U.S. does not have corpse hotels.  However, funerals are changing here and many elderly people are deciding to be buried in non-traditional ways.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: New York Times (July 1, 2017) "Crematory Is Booked? Japan Offers Corpse Hotels."

No Need to Be Wealthy To Leave a Legacy

You do not need to be wealthy to leave a lasting legacy and be remembered fondly after you pass away.

For some people, one of the things that terrifies them most about passing away is that they might be forgotten. This is especially true for people who are not married or who do not have children.

They fear that not too long after they pass away, no one will remember them very much, if at all.

One way people get around this is by intentionally leaving a legacy with their estate plans. They give things to people who will remember them fondly as a result.

However, not everyone is wealthy enough to do that in any meaningful way.

The non-wealthy can still leave a legacy though, as Market Watch points out in "5 ways to make a great impression after you're dead."

Even if you do not have very much now, you really only need enough to pay life insurance premiums to leave a legacy.

Life insurance policies are very flexible. In fact, you can make almost anyone or anything a beneficiary.

You can make a favorite niece a beneficiary. You can make your alma mater a beneficiary to have a scholarship created in your name. A charity or church can be the beneficiary. You can even leave the money to the town you live in to have a park named after you.

If you want to leave a legacy and are not wealthy, then consider life insurance. However, do not neglect your estate plan either.

You might not have a lot now, but you can still get a professional estate plan that considers your legacy goals. You might just find that you have a lot more money later in life to fulfill those goals even further.

For more information about legacies and estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Market Watch (May 8, 2017) "5 ways to make a great impression after you're dead."

Seeking Funeral Price Transparency

Americans are not the only people in the world who have a difficult time finding accurate funeral price information. Australians have the same problem.

One of the many small estate planning things people can do to make things easier on their families is to plan ahead for their own funerals. By making all of the arrangements they want for their funerals and paying for everything in advance, people leave one less thing to worry about.

At least, that is how it is supposed to work.

In reality, people have often found it difficult to get funeral pricing information so they can find the best deal. Even when they do sign contracts and pay in advance, many families are later hit with hefty bills for things they thought were included in the funeral price, but were not.

This is not just a problem in the U.S.

In fact, Australia has the same issue as The Guardian reports in "Funeral pricing comparison website targeted with legal threats."

A former solicitor in Australia went undercover and posed as a customer at funeral homes. He got pricing information from over 600 of them. He posted the information on a website so other Australians could easily comparison shop and make sure they were not being quoted a price from a funeral home that was more expensive than another customer was quoted from the same business.

He is now being threatened with legal action.

In the U.S., funeral homes are legally required to give customers fair and accurate pricing information when requested. However, it has proven very difficult to enforce those laws.

Anyone who has problems getting the information, should not hesitate to call an estate attorney.

For more information about  all aspects of estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: The Guardian (May 29, 2017) "Funeral pricing comparison website targeted with legal threats."

The Real Undead Son

A California man had been told that his son had passed away.  He spent a lot of money on the son's funeral and was surprised when he talked to his son on the phone less than two weeks later.

Frank Kerrigan, an elderly California man, knew that his son had problems. He had a lot of problems.

The son suffered from mental illness and was homeless.

Therefore, it probably was not that big of a surprise to Kerrigan when he received a phone call from the Orange County, California coroner's office to inform him that his son had passed away. Kerrigan asked the coroner if he could see his son's body and personally identify him.  However, he was told that was unnecessary since the coroner had confirmed the deceased's identity using fingerprints.

Kerrigan arranged a funeral for his son and spent $20,000.

Other family members flew in from out of state to attend the funeral. However, 11 days later, Kerrigan received a phone call from a family friend who informed him that not only was his son not dead, he was standing right there.

Kerrigan then spoke to his son on the phone, as the Daily Mail reports in "Outrage as father is told his homeless son is dead and buries him in $20k funeral - only to be told 11 days later that it was a mistake by the coroner and that his son is very much ALIVE!."

Kerrigan is suing the coroner's office for damages that he suffered due to the false identification.

Cases of authorities mistakenly identifying a deceased person do not happen all that often.  However, they do happen. Because they do, it is important that someone who knew the deceased person view the body and confirm the identity.

Families should insist on it.

In this case, the family only held a funeral. Other cases of mistaken identity have been discovered during or after an estate administration, which creates even more legal difficulties.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Daily Mail (June 24, 2017) "Outrage as father is told his homeless son is dead and buries him in $20k funeral - only to be told 11 days later that it was a mistake by the coroner and that his son is very much ALIVE!."

An Executor Acts for Estate and Not Beneficary

In most states, an executor is allowed to go back in time and authorize estate actions that occurred between the time of a person's death and the time the executor is appointed. A case from Florida illustrates that they do not always have to use that authority.

When a person passes away, there is a gap in time before a court officially appoints a personal representative, also known as an executor. However, there are often estate actions that take place during that time.

In many states, the personal representative can retroactively authorize those actions after his or her appointment, if doing so would be beneficial to the estate.

Wealth Management recently discussed a Florida case holding that a personal representative is not required to exercise that authority.

The article is titled "Estate Not Liable for Car Accident After Decedent's Death."

In this case, the decedent's adult daughter had lived with him. Although she had a car of her own, she often used her father's car with his permission. She was driving her deceased father's car when she got into an accident and struck another vehicle.

Subsequently, the decedent's stepson was appointed to be the personal representative of the estate.

Under Florida law, if the daughter was driving the vehicle with the permission of the owner, then the owner could be held liable for any damages, which in this case would be the estate.

Occupants of the other vehicle in the accident sued the estate. However, the personal representative of the estate declined to retroactively authorize the daughter's use of the vehicle.  Therefore, the estate would not be liable for any damages.

The case turned on whether the personal representative was required to exercise that retroactive authority. The court ultimately ruled that he was not.

Consequently, the personal representative is not required to do something that would be harmful to the estate, even if authorized to do so.

For more information about estate administration and planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wealth Management (June 23, 2017) "Estate Not Liable for Car Accident After Decedent's Death."