San Antonio, TX Estate Planning

Practical Lessons from a 100-Tractor Inheritance

“This family tried so hard to make sure they did with the tractors what their loved one most likely would have wanted — selling some and keeping the rest for the next generation. After Dave's death, they found a list he had left, letting them know which tractors meant the most to him. That gave them much needed peace of mind.”

Collections come in all shapes and sizes. For Dave Hawkins, his collection came in the form of tractors. The Iowa farmer collected more than 100 of them during his lifetime. Many of the tractors were vintage tractors that he restored. Every July 4th, he would open up his collection for public viewing.

When he passed away, the tractors became part of his estate and his family inherited them.

What happened next was featured in the TV Show Strange Inheritances as reported by Iowa Farmer Today in an article titled "TV show explores Iowa family inheritance."

The show highlighted that the family wanted to dispose of the tractors as Hawkins would have wanted. Some of the tractors were sold, but others were kept in the family collection.

The family was helped with this task by a list that Hawkins prepared. The list detailed which of the tractors meant the most to him.

Everyone with a collection of any kind can learn from this.

Prepare a list of what is in your collection. Which items are the most important and which items should be kept in the family? While this list may not need to be a part of your formal estate plan, make sure it does not conflict with your estate plan.

Reference: Iowa Farmer Today (March 27, 2015) "TV show explores Iowa family inheritance."

Illinois Bill Proposal Would Treat Digital Assets Like Physical Assets

A bill in the General Assembly would treat individuals' Facebook, Twitter, email and other online accounts the same as physical assets after death.

By default, the law does not treat digital assets the same way that it treats physical assets. After a person passes away, physical assets become part of the estate. Executors and loved ones are given access to the physical assets to dispose of them in accordance with an estate plan.

However, treatment of digital assets is determined by the terms of service of online companies.

This creates problems for executors who often need access to the digital assets to properly administer the estate as many technology companies make that access incredibly difficult to get.

Throughout the country state legislatures have debated this problem in an effort to reach a solution. The latest to do so is Illinois.

Its legislature is currently taking up a bill that would treat digital assets as physical assets, which would allow a court to appoint a trustee to access them. The bill is strongly opposed by technology companies and privacy groups who think the bill would be a violation of the deceased's privacy.

The State Journal Register has more on the debate in Illinois in an article titled "Bill would treat deceased's online accounts like physical assets."

This is not a debate that is going away soon.

It will likely take years for any sort of consensus to develop throughout the country. In the meantime, it is important to talk to your estate planning attorney about what you can do to ensure that your digital assets are handled appropriately in your estate.

Contact us to have this discussion early on.

Reference: State Journal Register (April 5, 2015) "Bill would treat deceased's online accounts like physical assets."

Grieving Mother Loses Access to Deceased Daughter’s Facebook Account

19-year-old daughter Becky loved sharing her life on Facebook. When she fell terminally ill with a brain tumor, and lost speech and movement, her mother Louise would log in with Becky to help her stay in touch with her friends. Becky died in 2010 but Louise continued to access her account to feel close to her daughter. But then Facebook locked or 'memorialised' Becky's account.

When 19-year-old Becky was diagnosed with a brain tumor, she could no longer maintain her Facebook page on her own. Instead, her mother Louise helped her and together the two of them used Becky's account to let people know how she was doing.

After Becky passed away, Louise continued to access the account to read what people had to say about Becky and how they spoke with her in private communication. Louise found it comforting and it reassured her that her daughter would not be forgotten.

Unfortunately, Facebook memorialized the account without notice. They made it so that Becky's account could not be accessed publicly and that no one could make changes to the account.

Louise was locked out without warning.

All of the precious memories that comforted her were denied to her. BBC News has more on this story in a story titled "How do we protect our digital legacy after death?"

This is becoming an increasing problem for grieving families.

The issue is not just isolated to Facebook. Other social media companies do similar things after an account holder passes away. It highlights the need for options if you want your family to be able to access your social media after you pass away.

In the end, you really need to engage an experienced estate planning attorney such as the attorneys at the Voeller Law Firm, who can help you navigate the applicable laws and specific policies of the various technology companies.

Reference: BBC News (April 6, 2015) "How do we protect our digital legacy after death?"

Best Approach to Passing On the Family Business

Whether a family business is big or small, succession planning is important to avoid family feuding or damage to the business. Here are some tips for avoiding mistakes in succession planning.

Will your business live on after you pass away? Many family businesses begin life as the dream of a driven founder who guides the business to success. However, after that founder passes away, the businesses often flounder in the hands of the next generation.

While this is not always avoidable, it can be made less likely by avoiding common mistakes in succession planning.

Recently, the Wills, Trusts & Estates Prof Blog published a list about how to avoid those mistakes in an article titled "Succession Plan Considerations."

The list includes:

• Start succession planning sooner rather than later.
• Bring in outside advisors to help determine who is the best person to manage the company after the founder passes away.
• Get an appraisal to have an accurate assessment of the value of the business.
• Make the plan and open dialogue with possible successors and family members.
• Do not forget to plan for the estate tax to make sure key parts of the business do not need to be sold off.

If you have questions about how to properly plan for your business after you pass away, consult with an estate planning attorney about how to make succession planning part of your estate plan.

At the Voeller Law Firm business succession planning is one area of practice that we are excited to guide you through. Contact us to set up a free consultation today.

Reference: Wills, Trusts & Estates Prof Blog (April 6, 2015) "Succession Plan Considerations."

Long Lost Life Insurance Policy? Tips for Tracking It Down

If you can’t find the life insurance policy of a deceased relative, here’s your biggest problem: There’s no central, national database of life insurance policies. So if you’re hunting for a policy — and have had no luck finding the policy itself in any drawer or pile of papers — here are ways to find it.

What good is life insurance if the beneficiaries don’t know about it or aren’t able to find the policy after the policy holder passes? When the beneficiaries do not know the company that wrote the policy, they need to track down the necessary information so they can contact the company and have the policy paid out.

Often, this is a task that falls to the executor of the estate.

Recently, Nerd Wallet published a list of helpful tips to conduct this task in an article titled "How to Find a Lost Life Insurance Policy."

The list includes:

• Check if your state has a central database - 10 states have life insurance policies registered in a central database that can be searched.
• Check the deceased's mail - Look for correspondence from insurance companies.
• Look for payments - Check the deceased's bank account statements and credit card statements for payments to insurance companies.
• Contact Employers - Ask employers if a life insurance policy was provided through work.
• Check with banks - An executor can inquire if the deceased had safety deposit boxes. If so, check the boxes for life insurance policies.
• Check the MIB Group - Since 1995, the MIB group has maintained a registry of people who have applied for life insurance policies. While that does not mean that any policies were purchased, it is a good place to start looking.

Reference: Nerd Wallet (March 31, 2015) "How to Find a Lost Life Insurance Policy."