Total Counsel Law Group

How Large Was the Rhinestone Cowboy’s Estate?

“After Glen Campbell passed in August 2017, news concerning his estate has been circulating.”

Rumors have surfaced that Glen included only five of his eight children in his will and that his widow Kimberly has brought a claim for more than $500K from the estate to pay medical bills.

Glen Campbell died in Nashville on August 8, 2017, at the age of 81. He suffered from Alzheimer's.

Wide Open Country recently published an article, “Glen Campbell’s Estate Might Not Be Worth as Much as You’d Think,” that gives details about what Glen left behind for his family.

An Arkansas native, Glen started his professional career as a studio musician in Los Angeles, spending several years playing with a group of world class musicians known as "the Wrecking Crew." Campbell played guitar on hundreds of hit records, many without credit. When he went solo, he placed a total of 80 different songs on either the Billboard Country Chart, Billboard Hot 100, or Adult Contemporary Chart—29 made the top 10 and nine reached number one on at least one of those charts.

There were some reports that Campbell’s assets came to roughly $50 million. However, more recent estimates say it’s worth around $410K.

The Tennessean reported that Campbell’s accountant and manager Stanley B. Schneider (who was appointed administrator ad litem by a judge earlier in 2018) filed paperwork that says Campbell’s combined assets reached a lower amount than many anticipated.

The claim says the stake in AZPB Limited Partnership holds the most value at $296,164, interest in AZ Baseball Broadcast Holdings totals $3,464, and the combined total of two bank accounts is just $959.

Funds from Glen Campbell Music, Inc. and Glen Campbell Enterprises total $109,634.

In addition, Schneider listed debts for state and federal taxes and legal fees totaling $118,200. He also reported that $43,448 of royalties were paid to the estate in the eight months after Campbell’s death. More than $76,000 is owed.

With the will contests and filed claims, the legal battle concerning Glen Campbell’s estate is expected to continue for some time.

Reference: Wide Open Country (April 26, 2018) “Glen Campbell’s Estate Might Not Be Worth as Much as You’d Think”

Why Does a First Responder Need a Living Will?

“It is not easy to speak about living wills. But for every first responder, it’s a conversation worth having.”

Although first responders experience illness, injuries and death every day, they still can be hesitant to create a living will for themselves. Nonetheless, it’s important.

EMS1.com recently posted a story, “Why EMS providers need living wills.” It explains that a living will—contrary to most other estate planning documents—has no authority after the creator of the document passes away. A living will or advance directive provides instructions about your end-of-life care. It can include as much or as little direction as you want, such as the use of pain-relieving treatments, do not resuscitate (DNR) orders, life support and organ donation.

A living will helps your family members carry out your wishes.  However, it often doesn’t cover everything. For instance, if you don’t specify whether you’d want certain life-saving treatments like emergency surgery in the living will, you should have a trusted agent to act in your best interests and help you to carry out your wishes.

First responders need both a health care power of attorney and a living will. Due to the high risk of serious injury that comes with a first responders’ duties, it is even more imperative to have this advanced planning in place. In many states, the health care power of attorney is part of the living will. The agent or the “health care proxy” has the authority to act on behalf of the incapacitated first responder, if the first responder is incapable of making decisions on his or her own.

But why do I need a living will?

Be in control of your end-of-life decisions. Without a living will, the decisions to carry out your last wishes could be made by the court. In this situation, state law takes effect and dictates who will have a say in your well-being. A living will lets you control how decisions are made and who will make them.

Protect your life partner. Without a living will, the law will place the health care power of attorney in the hands of your spouse, and then your family. If you have a long-time partner, but are unmarried, your partner would have no say in any end-of-life decisions.

Select one of your children to assist. With a health care power of attorney, you eliminate confusion as to which of your children will make the decisions to enforce your living will and decisions on end-of-life care.

Peace of mind. A living will gives you and your loved ones comfort and peace of mind. This is a stressful time, and a living will helps smooth out the logistics and questions that will arise.

Organ donation. You can state your instructions for organ donations in a living will.

Without a living will, decisions can become difficult for family when a loved one is in a terminal state. Families are left wondering whether they made the right decision. Your living will lets you approve and announce your health care decisions beforehand, avoiding confusion and fighting.

For more information, please visit our website at www.totalcounselor.com

Reference: EMS1.com (May 6, 2017) “Why EMS providers need living wills”

Don’t Wait until It’s Too Late to Estate Plan

“Many people don’t see the importance of estate planning, until they have been forced to deal with the adverse effects of not being prepared for death or disability.”

Some parents will engage their kids in disability and estate planning, with some viewing it a way to share the work and bring on a younger mind to help navigate the complexities of estate planning.

The Napa Valley Register recently reported in its article, “Estate planning for your parents,” that not all parents are open to this. Some are insecure about their lack of knowledge, and there can be fear of the cost or undue influence. In some instances, parents just don’t want to come to terms with their mortality. Whatever it is, if a parent delays or doesn’t make an estate plan, the children will potentially have stress and conflict—and have to clean up the mess.

Probate is a tiresome, slow moving and bureaucratic headache. There are delays and hard feelings. Probate can also wind up with the wrong people inheriting wealth and family treasures. If you’re not certain if your parents have a proper estate plan designed by a knowledgeable attorney, there are several ways to approach this before a crisis.

The easiest way to see if your parents have a solid estate plan is to ask, “Hey Mom, do you and Dad have a will and a trust?” In addition, see if they have disability planning and other medical documents in place.

If a subtler approach is required, you can try asking for advice from your parents. Tell them you’re trying to get your personal affairs in order and need their help. You can ask them what estate planning they’ve done and what attorney they used. This may get them to open up about their situation, in order to help you with yours.

Another way to ease into this conversation is with an anecdote. You may know a person who had an easier time with proper planning, or maybe you know someone whose life was troubled by avoiding it.

If your parents simply don’t want to talk about this type of planning, you may seek the help of another sibling. They may respond better to your brother or sister.

You can also ask a relative or a trusted friend to broach the subject.

A final option might be to offer to pay for the creation of their estate plan. Tell them that by doing your estate planning, you’ve learned what issues there can be settling an estate that wasn’t in proper order and that you would be willing to pay for them to work with an experienced estate planning attorney. The idea of paying for someone else’s estate plan may not be that appealing, but it will save you time, stress and money in the long run.

For more information, please visit our website at www.totalcounselor.com

Reference: Napa Valley Register (March 26, 2017) “Estate planning for your parents”

A Look at Target-Date Funds as You near Retirement

“They may not make sense once you're past the target date.”

We’ve all heard of “target-date funds.” They’re the one-stop portfolios that make investments based on when you want to retire. These products can be great options for retirement savers trying to build their nest egg. However, as Kiplinger notes in “The Trouble with Target-Date Funds in Retirement,” before you stop working, you may want to check to see if your target-date fund is still the best selection for you in retirement.

Target-date funds have become extremely popular. These funds are frequently the default investment choice in 401(k) plans. Therefore, your money’s automatically directed to them, unless you choose otherwise. The Investment Company Institute found that 50% of all 401(k) plan participants had some money stashed in a target-date fund at the end of 2014.

There are professional money managers who decide where the investments go in target-date funds. They decide how much of the portfolio should be in stocks, bonds, or other assets and these managers choose which funds to buy. They will adjust the holdings to make the portfolio more conservative, as you get older. Each fund family follows what is called a glide path for its series of target-date funds. This path will change the mix in stocks and bonds over time. After these funds hit their target year, some continue to adjust the stock-bond mix—usually for another 10 to 20 years—but some will stop all adjusting. That’s the difference between a target-date series that shifts through retirement and one that shifts to retirement.

The issue for retired investors is that target-date funds may not be nimble enough. Look at these reasons to review your target-date fund holdings when you retire.

Fund has a “to” retirement glide path. Most target-date series follow a “through” retirement glide path. However, if you have a series with a “to” glide path that ends at retirement, you need to assess how the portfolio is split between stocks and bonds, so it lines up with your need for return and your risk tolerance. The basic idea of a target-date series that glides “to” retirement, is that you’ll sell your shares in the fund when you retire and move the money into an IRA. You’ll then have the freedom to invest in other assets. But investors shouldn’t to be too conservative in retirement. It is important to keep some growth to maintain your spending.

A glide path may no longer fit. The stock-bond divide varies among different series of funds throughout the glide path. It’s even more so in the post-retirement years. The typical 2015 portfolio has 40% of assets invested in stocks, but the range for all 2015 target-date funds stretches from 15% in stocks to close to 60%. Target-date funds are designed to be one-size-fits-all, but no one truly is actually a one-size-fits-all.

Consider a more tax-efficient withdrawal strategy. You can be strategic about which assets you sell to meet your cash needs, but that’s not an option if you have all your retirement money in a target-date fund. In those funds, the withdrawals are made proportionately, according to the portfolio’s prescribed allocation and across all of the fund’s assets. When it comes to retirement withdrawals, the investor doesn’t have the discretion over where those withdrawals come from.

Diversity. Vanilla is the predominant flavor in most target-date funds. Most of the money in target-date portfolios is divided between stocks, bonds and cash. That’s a challenge, especially with a low return outlook for both stocks and bonds. A customized approach to your portfolio in retirement, might allow added flexibility. You could hold more cash or invest in alternative investments that don’t move rigidly with stocks or bonds.

In addition, you don’t want too many eggs in any one fund family’s basket. You need to see if the funds are appropriate for you.

For more information, please visit our website at www.totalcounselor.com

Reference: Kiplinger (April 7, 2017) “The Trouble with Target-Date Funds in Retirement”

You Can’t Take It with You, but Dying Isn’t Cheap

“Funerals cost $6,000 and up, but planning can help you cut the big expenses.”

No one likes to talk about death, because it's considered taboo. But one subject even more taboo is money, contends gobankingrates.com. According to its article, “7 Money Secrets about Dying That No One Wants to Talk About,” if you don't talk or plan for dying, your death could cost your family a considerable amount of money. Read on to consider some valuable money secrets about death and how to be prepared.

Funerals Can Be Darn Expensive. Funerals homes charge about $6,000 for funeral services, and you'll pay an additional $2,000 for burial, $1,000 for a grave marker or $2,000 for a headstone. That adds up to $10,000 or more. Your family could also spend even more, if you don't put your final wishes in writing and discuss them with your family. The high cost of a funeral you didn’t want, could put your family in debt.

Look at Less Expensive Funeral Options. It’s hard to be sensible and objective when you're dealing with the emotional stress of a loved one's death.  However, there are differences in prices. You can find this information online. Do some comparison shopping for your family and tell them which funeral home you prefer.

A Funeral Package Deal Isn’t Always a Great Deal. A funeral home might offer a package, but you may not want or need everything that's in it. Look at your options because funeral home pricing is dependent on the services provided. You can also buy the grave marker, headstone or casket online directly from wholesalers or distributors, which can cut costs.

A Traditional Funeral Isn’t the Only Option. Don’t feel pressured into having a traditional funeral for yourself or your loved one, especially if you can't afford it. The difference between a full traditional burial and a cremation can be $7,000, with the additional services required.

Prepaid Funeral Policies. Funeral homes and insurance companies offer prepaid funeral policies. This sounds like a good way to save your family money on your funeral costs, but you can spend more on premiums than the policy will pay at your time of death.

When you don't plan or you plan improperly, your family will pay the price. While you are at it, spend the money to have an experienced estate planning attorney draft a will so that it conforms to your state's laws.

For more information, please visit our website at www.totalcounselor.com

Reference: gobankingrates.com (March 14, 2017) “7 Money Secrets about Dying That No One Wants to Talk About”

IRA Info for Your Retirement

“IRAs were established to help Americans save for their future, and retirement savers should take advantage of tax shelters such as IRAs to build and grow their nest eggs.”

A GOBankingRates.com survey found that one in three Americans has saved nothing for retirement. One great way to get started on retirement savings is by using an IRA: Individual Retirement Account.

According to madison.com’s article, “5 Things You Should Know about IRAs,” an IRA is a popular retirement savings vehicle. It lets individuals put money away for the long term, while providing them with tax advantages.

There are two main types of IRAs: traditional and Roth. Contributions made to a traditional IRA may be deductible or non-deductible, and all contributions made to a Roth are non-deductible. Both types of IRA accounts allow money to grow tax-deferred for many years. After age 59½, you can start taking qualified distributions. You’ll typically have to pay income tax on withdrawals from a traditional IRA, but withdrawals from a Roth are tax-free. In addition, here are a few more aspects of the IRA to consider.

1. Saving for retirement is a solo job, at least when you’re putting money in a tax-sheltered retirement account. An IRA can only have one owner.
2. IRAs have their own beneficiary designations, so who will inherit an IRA is based on who’s on the account's beneficiary forms—not what’s in a will, trust, or any other estate document. Therefore, when you open an IRA, name a beneficiary and remember to review and update the beneficiary designation form regularly, particularly when you have a life event, such as marriage or a child.
3. You have until Tax Day to make your IRA contribution for the last year. If you can't make a lump-sum contribution at the start of every year (giving your money added months to compound), you can spread your contributions over a 15-month period, from January until the following March to help you reach the annual contribution limit each year.
4. You typically must have your own taxable compensation to fund an IRA ( although a working spouse can fund a non-working spouse's IRA.) However, you don't have to use your own money to make your IRA contribution.
5. Consider rolling all of your 401(k)s into one IRA, which can hold all your old 401(k) money. You can also make direct contributions.

For more information, please visit our website at www.totalcounselor.com

Reference: madison.com (March 13, 2017) “5 Things You Should Know About IRAs”

The Last Grandchild of The World’s First Billionaire’s Dies, Leaving Questions about His Trust Fund

“One of the legendary fortunes just moved one generation farther from the source. The next few years will determine whether dynastic planning has hit its ultimate limit or will truly run forever.”

John D. Rockefeller was the poster child for long-term estate planning 80 years ago. David Rockefeller, the last grandchild of the family patriarch and a full participant in the trust, has now died.

A recent Trust Advisor article asks “Dynastic Gamesmanship: Did David Rockefeller’s Crafty Trust Work Leave the IRS Holding the Bag?” It seems that when John D. put $1.4 billion into his first trust, he funded lavish lifestyles in perpetuity. Fortunately for future Rockefellers, family advisors have watched over the trust and kept it current. The family trustees did extremely well for David and his siblings, while passing completely outside the estate tax system. They enjoyed billions in tax-free income, while the principal continued to compound.

With Rockefeller advisors working hard to conserve the assets, the estates of John D.’s grandkids passed to their descendants with little in the way of taxation. John D.’s trusts passed the bulk of his money to his grandchildren and the great-grandchildren who were around when he set up the plan in 1934. Implementing trusts to bypass the estate tax at the time, arguably tripled the amount of money that went to the heirs, in addition to the income it provided. This saved 70% of fortunes this size from the IRS.

However, with David’s death, the estate plan needs to change. In the 1930’s, the trust code prevented the creation of beneficiaries who weren’t even born yet. This means that original layer of the family’s wealth will need to wind down when the last heir named in the documents dies. That will be John D.’s great-niece Abby Milton O’Neill—his oldest living great-grandchild, who now keeps the trust from terminating. Now near 90, the IRS is still waiting to tap assets. If there’s any principal left, the heirs will pay a tax bill.

By the early 1980’s, there were multiple layers of trusts supporting five generations of heirs—the youngest beneficiaries were only able to claim a 3% genetic bond to John D. This fragmented system kept everyone comfortable, but major charitable donations, and big-ticket purchases became a drag. Therefore, the advisors mortgaged Rockefeller Center and sold some property to raise cash on the deeply illiquid real estate. That cash went back into investments, eventually turning into a profit center. This approach keeps the wealth flowing to an ever-increasing list of descendants, while leaving the assets intact. At some point, their income needs are going to need to cut back or face draining the principal.

John D.’s money is rolling from generation to generation, without creating a taxable event. With the trust regulations now on the books, depending on the state, a trust created now for David’s own grandchildren and beyond may never need to end.

For more information, please visit our website at www.totalcounselor.com

Reference: Trust Advisor (March 27, 2017) “Dynastic Gamesmanship: Did David Rockefeller’s Crafty Trust Work Leave the IRS Holding the Bag?”

Roll Over Beethoven! Chuck Berry Leaves Sizeable Estate with Considerable Upside

“Chuck Berry started playing in the early 1950s. It really took his death to get him to stop.”

When a celebrity passes away, it looks as though money left behind may be only the beginning of the estate’s wealth.  This is because a star’s death can result in an influx of nostalgia buying. That just may be the case for the unofficial Father of Rock—he could leave his heirs billionaires, starting with his first studio album in 40 years.

Trust Advisor recently asked the important question: “Who’ll Reap The Millions From Chuck Berry’s Final Album?”

Berry left about $15-$20 million behind, which he built up by working deep into old age. Chuck was still touring in his mid-80s. He never really retired. Therefore, with cash coming in, he never really spent down his liquid assets, as if he’d retired earlier.

His wife Themetta can claim at least half of the cash and a 50% share in the intellectual property. She’ll get much more, if a will is located. She was married to him for 68 years. As a result, there was no expensive divorce settlement in Berry’s past, meaning that his net worth could grow over the decades.

When self-made millionaires keep operating the “family business” until they die, their heirs want to know how to turn the enterprise into cash.

Chuck Berry wrote about 1,400 songs under his name.

These songs were recorded 6,600 times by various artists. Unlike many mid-century music pioneers, he also kept the publishing rights. Each time anyone records “Maybellene” or anything in his catalog, his standing arrangement demanded 9-10 cents per unit sold.

Licensing the actual tracks for advertising cost more.

Chuck was also working on his first album of new material since 1979. Finished or not, if it’s sold as a memorial, it’ll probably sell like David Bowie’s final release, which generated about $700,000 for the Starman’s estate in the first week.

The Berry catalog could be an annuity for his great-grandchildren’s grandchildren, sort of like a dynastic trust. His intellectual property could generate millions of dollars a year in licensing, merchandising and images. This is very similar to what drives Elvis’ or Jimi Hendrix’s estate.

For more information, please visit our website at www.totalcounselor.com

Reference: Trust Advisor (March 20, 2017) “Who’ll Reap The Millions From Chuck Berry’s Final Album?”

Some Facts about Elder Financial Exploitation

“As with those who have endured other types of abuse, victims of financial elder abuse often feel they can't or shouldn't seek recourse.”

Perpetrators of financial exploitation are frequently family members, caregivers or other people who are known and trusted by the elderly. This makes many seniors who are financially exploited, even more reluctant to come forward. Perpetrators often depend on this or pressure victims to keep quiet.

As Yahoo Finance recently posted in “What to Do If You or Someone You Love Has Been Financially Exploited,” betrayal by a family member or another trusted person is especially hard on those who are financially abused. Seniors who've been financially exploited, may feel shame and guilt. Consequently, they do not feel entitled to help or support, let alone to feel victimized.

The widespread nature of financial exploitation shows that it can happen to almost anybody. More states are trying to find ways to legally address financial exploitation and to better address and deter this abuse, as the population ages and an increasing number of seniors are vulnerable.

Most states criminalize financial elder abuse.

This means that, in addition to laws already in effect to prosecute theft, there are added penalties, which can be filed in financial exploitation cases involving seniors or vulnerable adults,  increasing the jail time for perpetrators.

Some states also now have statutes allowing older or vulnerable adults to sue specifically for elder financial exploitation. The states include Arizona, California, Florida, Oregon, Minnesota, Utah, Illinois and Washington.

A key feature of elder financial exploitation cases is that they allow victims to sue for multiple times the amount lost (usually two or three times the amount) and to recover attorneys' fees. This punishes perpetrators more and acts as a deterrent. This approach also encourages settlement of these cases. Awarding attorneys' fees is another incentive for seniors to secure legal representation.

Remember that the cost of financial abuse goes beyond the monetary loss. Victims and their families should access services, like counseling and case management, to help them heal after being financially abused.

For more information, please visit our website at www.totalcounselor.com

Reference: Yahoo Finance (March 14, 2017) “What to Do If You or Someone You Love Has Been Financially Exploited”

The Bumpy Ride of Care for Your Parents

“Thanks to Father Time and copious amounts of prescription drugs, people are living longer. But with longer lives comes the potential for increased healthcare needs.”

It can happen out of the blue. One second your folks are in pretty good shape. The next second, your dad is in the hospital with pneumonia and your mom is showing signs of early onset dementia.

How the devil did this happen? This is the basic question asked by Chicago Now in its recent article, “Getting Old Sucks: Why To Start Estate Planning With Your Parents.” As the article puts it: “you are officially on the rollercoaster ride to elder hell.”

Fortunately, there are things you can do on this bumpy ride to make it easier on you and your parents. While it’s uncomfortable at first discussing the topic of death with your parents, it’s necessary and important.

Talk to them about estate planning and make sure that they have wills, durable healthcare and medical powers of attorney (POA) and health care directives. If your parents don’t have these documents, you should make an appointment with a qualified estate-planning attorney and get this completed today as soon as possible.

For example, what if your father has a debilitating stroke, doesn’t regain consciousness and needs 24/7 medical support indefinitely? Without a health care directive, the hospital will keep him alive, even in a vegetative state, until he passes naturally.

You’ll be unable to have him removed from life support, unless you can show the physician and hospital administrators his legally valid health care directive and his medical POA that details his wishes. Without these estate planning documents, you and your mother will have limited control on how he should be treated.

From a financial standpoint, it is important to remember that the hospitals will continue to bill you even when your father is on life support and technically brain dead. After 100 days of Medicare coverage, your mom will be fully responsible for these care and treatment expenses, if there’s no supplemental insurance.

Start the dialog with your parents and let them determine how they want to live and die. This will save you and your loved ones considerable stress, frustration and heartache in the future.

Once this is under control, work on your own estate planning. You should contact a knowledgeable and experienced estate-planning attorney with your questions.

For more information, please visit our website at www.totalcounselor.com

Reference: Chicago Now (March 7, 2017) “Getting Old Sucks: Why To Start Estate Planning With Your Parents”