The following is an article, found at www.dailyfinance.com/writers/dan-caplinger/, published on Aug 14th 2014; it reminds us why whether healthy or sick, rich or poor, a basic will probably is not enough to protect most families sufficiently.
Robin Williams' Estate Plan Spares His Heirs a Lot of Drama
The life of comic genius Robin Williams brought joy to millions of fans, and his tragic death has sent shock waves throughout the entertainment community. But as painful as his loss will be for family, friends and fans, it appears that at least according to early reports, Williams took care of business when it came to setting up a solid estate plan.
Keeping Private Affairs Private
Celebrity estate planning is often bungled, and the errors get magnified both by the large sums involved, and the fact that their deaths play out on the same public stage that they lived their lives on. (Think of Philip Seymour Hoffman, for example.)
Despite having a wealth of advisers, many wealthy entertainers fail to prepare adequately to handle the transfer of their real wealth after their death. Williams, however, apparently used at least one revocable trust for the primary portion of his estate planning, and that will likely be adequate to avoid some of the complications and tax liabilities that other celebrities' families have had to endure.
Most people think of wills as the basic must-have estate-planning document. But for those in the public eye, the downside of using a will as your primary document is that it's subject to the probate process, which invites public scrutiny of court-filed records. Especially in California, where Williams lived, the probate process is notorious for being long and arduous.
By contrast, revocable trusts enable people to arrange for the disposition of their assets after death without any involvement from a probate court. And, the public has no right to see the trust document. It's possible that we'll never know for sure what any trust that Williams created said. Because trusts keep personal business out of the public eye, even family members who disagree with each other can choose to resolve disputes privately, if they choose. That can avoid the negative publicity of will contests and keep arguments from escalating.
Is a Revocable Trust Smart for You?
Apart from the different procedural requirements, revocable trusts also give you the ability to control how and when your loved ones will receive your assets. For instance, in many cases, parents arrange to have money held in trust until children reach a certain age at which they believe they will be able to responsibly manage their finances. These provisions allow trusted advisers to act as trustee and handle financial matters during the early part of children's lives, and they ensure that children don't squander their inheritance quickly and find themselves with regrets later in life.
In addition, revocable trusts can give you flexibility in making changes to your estate plan as needed without necessarily having the same level of formality that a will involves. Given that Williams was married three times and had children from different marriages, making sure that his estate planning was rock solid in the face of changing circumstances was particularly important. Sometimes, families will break up into factions following a death, and arguments can become contentious when the estate plan isn't perfectly clear.
The downside of a revocable trust is that it tends to be more costly in terms of upfront fees than a simple will. However, unless you live in a state whose probate process is relatively simple, the extra cost in preparing a trust often pays for itself in not having to hire an estate planning attorney or pay court costs associated with probate proceedings after death.
Testamentary Trusts Are an Alternative
If probate isn't an issue, then you can get the same protection that trusts provide by setting up testamentary trusts in your will. If you go that route, the trust doesn't come into being until after your death, and your will automatically transfers your assets into the trust according to your instructions at that time.
One important thing to remember is that a revocable trust doesn't do you any good at all unless you transfer assets into the name of the trust.
Many times, people make the mistake of creating a trust, but never executing the real estate deeds to move their home into the trust, or leave financial accounts in their own names rather than making arrangements with their brokers to have accounts opened in the name of the trust. Even if you follow the common practice of having a backup will that puts any forgotten assets into the trust at your death, doing that leaves you vulnerable to probate, negating one of the values of having a trust in the first place.
No matter how modest your estate might be, having the right documents in place, and your financial house in order, can make a huge difference to your heirs if something happens to you.
OOOOOH, can't wait!! The Boca Walk to End Alzheimer's will be partnering with ROBERT GRAHAM and WINES FOR HUMANITY on Saturday, Sept. 6 at Boca Town Center Mall. Great reason to spend money, drink and be hopeful that Together, we will make Alzheimer's a Memory!!!
Seth Rogen, the 31 year old popular comedy actor and writer, recently gave a heartfelt and humorous speech in Congress about Alzheimer's disease, mentioning the devastating effects it has had on his mother-in-law, and later slammed senators who did not attend the hearing.
Mr. Rogen also started and heads a charity to raise funding and awareness for the incurable ailment (Hilarity for Charity:http://www.hilarityforcharity.org/).
"After forgetting who she and her loved ones were, my mother-in-law, a teacher for 35 years, then forgot how to speak, feed herself, dress herself and go to the bathroom herself -- all by the age of 60," said Rogen, who C-Span dubbed an "Actor and Alzheimer's disease activist."
"Not sure why only two senators were at the hearing," Rogen said on Twitter. Very symbolic of how the Government views Alzheimer's. Seems to be a low priority."
Below is the transcript of the hearing; please watch it at https://www.youtube.com/watch?v=hvdbHSGWAgs
SETH ROGEN: "Thank you very much for having me, Mr. Chairman, ranking member [Jerry] Moran and the members of the subcommittee. Thank you for the opportunity to testify today and for the opportunity for me to be called an expert in something, 'cause that's cool. I don't know if you know who I am at all -- you told me you never saw 'Knocked Up,' Chairman, so [spectators laugh] it's a little insulting."
SENATOR TOM HARKIN (D-IA): "I want the record to know ..."
SETH ROGEN: "It's very important, guys."
SENATOR TOM HARKIN (D-IA): "I want the record to know, this is the first time, I will wager, this is the first time in any Congressional hearing in history that the words 'Knocked Up' have ever been used."
SETH ROGEN: [Laughs] "Oy. You're not gonna like the rest of this, then. [Senators laugh] First, I should answer the question I assume many of you are asking -- yes, I'm aware this has nothing to do with the legalization of marijuana. In fact, if you can believe it, this concerns something that I find even more important."
"I started dating my wife Lauren nine years ago when her mother was almost 54 years old. The first time I met her parents, being the mensch* that I am, I was excited to spend time with them and make Lauren thing I was the type of guy she should continue dating. It was this trip, the first time I met my now-mother-in-law, that Lauren first admitted to herself and then to me that something was off with her mother."
"I guess the clues were, unfortunately, easy to spot since both of Lauren's mother's parents had Alzheimer's disease. Soon after this trip, at 55 years old, Lauren's mother was diagnosed with early onset Alzheimer's."
"Now, at this point, my impression of Alzheimer's was probably was I assume most people's impression is -- I thought it was something only, like, really, really old people got and I thought the way the disease primarily showed itself was in the form of forgotten keys, wearing mismatched shoes and being asked the same question over and over. This period, which was the only way I'd seen Alzheimer's displayed in movies or television, lasted a few years for Lauren's mom. After that, however, is when I saw the real, ugly truth of the disease."
"After forgetting who she and her loved ones were, my mother-in-law, a teacher for 35 years, then forgot how to speak, feed herself, dress herself and go to the bathroom herself -- all by the age of 60. Lauren's father and a team of caregivers dedicate their lives to letting my mother-in-law be as comfortable as she can be. They would love to do more but can't because, as you've heard, unlike any of the other top 10 causes of death in America, there's no way to prevent, cure or even slow the progression of Alzheimer's disease."
"Another thing I didn't realize until I was personally affected was the shame and stigma associated with the disease. It was before I was born, but I'm told of a time when cancer had a stigma that people were ashamed by. Celebrities and other public figures that were stricken would hide, rather than be voices of hope for people in similar situations, and although it's turning, this is currently where we are largely at with Alzheimer's disease, it seems like."
"And it's because of this lack of hope and shameful stigma that my wife, some friends and myself decided to actually try and do something to change the situation."
"We started Hilarity For Charity. Hilarity For Charity is a fund we have, as a part of the Alzheimer's Association, to raise money to help families struggling with Alzheimer's and support cutting-edge research. That's right, the situation is so dire that it caused me -- a lazy, self-involved, generally self-medicated man-child -- to start an entire charity organization."
"It was through this that we felt we weren't just complaining there was nothing to be done, but actively taking steps to do something. Instead of being disappointed that young people were so misinformed about the reality of the disease, we've started to educate them. We recently started a college program that allows university students to hold their own Hilary For Charity events, and in the months since it started, 18 schools nationwide had signed up to hold events."
"The fact that we actually got college students to stop playing video games and volunteer their time is a huge accomplishment, especially considering both Xbox One and Playstation 4 came out this year -- I'm sure these people know what I'm talking about [laughs]."
"I came here today for a few reasons. One, I'm a huge 'House of Cards' fan. [Senators laugh] Just marathoned the whole thing. Had to be here. Two, is to say people need more help. I've personally seen the massive amount of financial strain this disease causes and if the American people ever decide to reject genitalia-driven comedy, I will no longer be able to afford it. Please don't."
"Therefore, I can't begin to imagine how people with more limited incomes are dealing with this. As you've also heard, studies show that Alzheimer's and related dementia is the most costly condition in the United States. Yes, it's more costly than heart disease in a country where, for $1.29, you can get a taco made out of Doritos. They're delicious but they're not healthy."
"While deaths from other major diseases, like heart disease, HIV and strokes continue to decline, deaths from Alzheimer's have increased almost 70 percent in the last 15 years. Over five million Americans have Alzheimer's and at this rate, in 35 years, as many as 16 million will have the disease."
"The third reason I'm here, simply, is to show people that they're not alone. So few people share their personal story, so few people have something to relate to. I know that if me and my wife saw someone like me talking about this, it would probably make us feel a little less alone."
"Americans whisper the word 'Alzheimer's' because their government whispers the word 'Alzheimer's,' and although a whisper is better than silence that the Alzheimer's community has been facing for decades, it's still not enough. It needs to be yelled and screamed to the point that it finally gets the attention and the funding that it deserves and needs."
"I dream of a day when my charity is no longer necessary and I can go back to being the lazy, self-involved man-child I was meant to be. People look to their government for hope and I ask that when it comes to Alzheimer's disease, you continue to take more steps to provide some more. I would like to thank the committee again for the opportunity to share my story and to voice my whole-hearted support for the continuing work that pursues a cure for Alzheimer's disease. Thank you very much." [Applause]
SENATOR TOM HARKIN (D-IA): [Clapping] "Thank you Mr. Rogen, that was great. That was very, very good. Thank you, thank you."