Baby Boomers - update your estate planning documents!

I have found that many clients have their wills drafted when they have young children at home, and then do not think about revisiting their documents ever again. As a rule of thumb, I recommend that my clients review their estate planning documents at least every three years. If you haven't looked at your documents in a while (or even in a few decades!), here are a few reasons why doing so is a good idea:

1. Laws change. State and federal laws regarding estate taxes are always in flux. Also, some states have adopted new laws about "living wills" - the documents that guide your family in making end of life decisions about your care.
2. People change. Twenty years ago, you may have appointed your cousin to be your executor in your will. That was before it was revealed that he had a gambling problem... Suddenly, your cousin no longer seems like the best person to be wrapping up your finances.
3. Finances change. You may have been in those youthful years when money was tight when your documents were first drafted. Now you have a vacation home, a sizeable nest egg, retired and have started a small business out of your garage. All of these need to be considered when drafting your will.
4. Stuff changes. You may have started a priceless baseball card collection, or you may have inherited a family heirloom that is to be passed on to a specific family member. These need to be addressed in your estate planning documents.
5. Families change. Kids grow up and have their own kids. Marriages occur and divorces happen. All of these family relationships need to be taken into consideration. Some divorced clients believe that their wills are no longer valid after their divorce is finalized. Guess what? Your old will where your ex gets everything is still valid until you revoke it.
6. Homes change. You've been in three different houses and lived in a few states since you had your documents drafted. Each state has different rules and guidelines about what is included in the various estate planning practices. What was valid in your old home state may not be valid in your current location.
7. You change. Your goals at 60 are different from your goals at 30. You may want to leave a legacy for your family. Further, your health needs now are different than when you were younger.

Wills for Heroes

I spent this past Saturday volunteering with Wills for Heroes, which held a session at the James N. Robey Public Safety Training Center in Marriottsville. Wills for Heroes is a phenomenal program which provides free wills and other estate planning documents for first responders - i.e. fire department and police department personnel. According to the Wills for Heroes website:

Anthony Hayes, a partner at Nelson Mullins Riley and Scarborough, LLP, in Columbia, South Carolina, started the Wills for Heroes program shortly after the September 11, 2001, terrorist attacks. Anthony emailed the Columbia Fire Department asking what lawyers could do to help that department. During an impromptu focus group, it became clear that there was a glaring need for estate planning services.
 

The attorneys who volunteered this past Saturday were able to provide estate planning documents to roughly 70 individuals.

Pet Trusts in Maryland

I grew up in a veritable zoo. My family included dogs, cats, parrots, lizards, frogs, turtles, fish, and hermit crabs. My parents spare no expense when it comes to their pets, and the care of the menagerie trumped everything else. My mother's mantra is "Animals can't care for themselves" - which is very true, especially if something happens to the pet owner. My mother has always maintained a list of people to call in the event that she and my father pass away. This list includes various breeders, family members, friends, aviaries and wildlife preserves in whom my mother has faith to take care of her furry, feathered and scaly friends. Recently, I have been giving a lot of thought to care for Bandit, the dog my husband and I adopted last fall, should something happen to us.

Fortunately, in 2009, Maryland enacted a 'pet trust' law to allow pet owners a formal mechanism to provide for their pets after the owner's incapacitation or death. The trust can be created for the benefit of an animal alive during the lifetime of the settlor. The trust terminates with the death of the animal (or the death of the last remaining animal if the trust provides for multiple pets). The trust may be enforced by a person appointed by the trust or by the court if the trust does not appoint someone. Further, a person with an interest in the welfare of the animal can petition the court to appoint a person to enforce the trust. In the trust, settlor's can provide express instruction for distribution of trust funds after the passing of their pet. If the funds of the trust are not used in full, the remaining funds can be distributed to the settlor or the settlor's successors. MD Estates & Trust Section 14-112.

Generally, a pet trust consists of a trustee and a caregiver. The caregiver provides the daily care for the pet, while the trustee oversees the handling of the trust to ensure the caregiver's compliance with the terms of the trust. Pet trusts allow the pet owner to have control over the care of their pet. Rather than rely on the goodwill of those tasked with caring for an orphaned pet, the trust can designate the standard of care for the pet. Trusts can direct veterinary care, diet, boarding, and the general standard of living to be maintained for the benefit of the pet. Additionally, the trust can provide compensation to the trustee and the caregiver.