Yes, apparently our US Government wants each of us to put together a “Social Media Will.’  I’m an estate planning attorney in Michigan, and advise clients on how to plan for their assets, including digital assets.  So, when I stumbled upon a blog post by USA.gov, I was intrigued.

Reading the blog post (How and Why You Should Write a Social Media Will), I kinda liked what I saw…

First, they outline how social media is not becoming a large part of everyone’s daily life and the issue of what happens with all that “stuff” if you were to pass away.  Lord knows, I have enough Facebook, Twitter, Email, Flickr, SmugMug accounts that it’s hard for me to keep track, let alone anyone else if something were to happen to me.

Next they outline some steps that should be taken to ensure that these digital assets are handled the way you would want if you were to pass away.  They recommend that just like a traditional last will and testament (or living trust!) handles your affairs for your physical belongings and financial assets, there should be a document that spells out how you want your online identity to be handled as well.

The idea of the social media will, is that like a traditional will, you’ll need to appoint someone you trust as a personal representative/trustee/executor.  That person will be responsible for closing your email addresses, social media profiles, and blogs after you are deceased.  Then that person should take the following steps:

• Review the privacy policies and the terms and conditions of each website where you have a presence.
• State how you would like your profiles to be handled. You may want to completely cancel your profile or keep it up for friends and family to visit. Some sites allow users to create a memorial profile where other users can still see your profile but can’t post anything new.
• Give the social media executor a document that lists all the websites where you have a profile, along with your usernames and passwords.
• Stipulate in your will that the online executor should have a copy of your death certificate. The online executor may need this as proof in order for websites to take any actions on your behalf.

The timing of this was ironic, since just yesterday I blogged about how to manage and find a Deceased Loved One’s Digital Assets.

So, what do you think?  Do you have a “Social Media Will?”

As a Michigan estate planning lawyer, I like to stay up on top of what other people are saying about Michigan estate planning.  I stumbled upon a blog that discussed estate planning options in Michigan.

The estate planning blog discussed how each estate plan is unique for the person and family it is created for.  The blog then goes on to talk about three methods on how property is distributed to heirs.

Well, in actuallity, there are four ways that assets are passed out of a deceased person’s name.

The first way is through joint ownership.  Most married couples hold most of their property jointly, so that if one person passes away, the asset passes directly to the survivor.

The second way that assets passes out of a deceased person’s name would be beneficiary designation.  For example, you name a beneficiary of your life insurance policy.

The third way, and the way most of our clients pass their property is through a trust based estate plan.  Through a trust based estate plan a settlor can control the distirbution of their estate, plan for Federal Estate Taxes, and avoid probate.

Which brings us to the last way that an asset passes out of a decedant’s name and that would be through the Michigan probate process.

So, which is the right process for you or your family?

Joint ownership can create all kinds of issues for Michigan property.  Quite often in our Oakland County estate planning law office, we see clients who have added a son or daughter’s name to a piece of property and created joint ownership.  Often times, our recomendation is that you should never add someone, jointly, to any piece of property unless they are your spouse.

There is a recent NY Times article that address this entitled Making Room for Mom and Dad.  The article talks about when more than one generation lives together and how even in that situation, joint ownership could be a poor choice and create estate planning headaches.

Alternatives to joint ownership include Lady Bird Deeds, revocable living trusts, and powers of attorney.  The right type of alternative would depend on the situation, that is why it is important to speak with a Michigan estate planning attorney before making any decisions that could have negative consequences.

With Michigan Estate Planning, there are a few basic things that you need to know.

First, no matter what your net worth is, how much in assets you have, how much debt you have, you need an estate plan. In Michigan, once you turn 18 you are legally an adult. So, even if you’re a college age adult who lives at home with your parents, there is a certain level of estate planning that should be done. That is you need, what our office calls, a disability plan. A disability plan plans for your disability or incapacity.  We would put together a Patient Advocate Designation (which is the Michigan equivalent to a health care power of attorney), HIPAA Authorization, and a Financial Power of Attorney that most likely would name your parents as decision makers and agents.

Now that we’ve established that if you’re over the age of 18, you need the disability documents, the next step would be once you have assets (now matter how meager) or children, it is important to plan for your assets and children.  This is done through using Revocable Living Trusts and Last Wills and Testaments.  Whether you opt for a Living Trust based estate plan or a Will based estate plan will depend on your goals.  Remember a Last Will and Testament only gives instructions to the Michigan Probate court on how to administer your estate, it does not avoid probate.

Lastly, it is important to consult a Michigan estate planning attorney in preparing your estate plan.  Proper Michigan estate planning involves more than buying Nolo Willmaker software or reading the latest Suze Orman Trust Kit book.  It involves analyzing your goals and situation and using the estate planning tools we’ve discussed in the most effective and cost effective way.

There are quite a few myths regarding Trusts, Wills and Estate Planning. A recent USA Today article address some of these myths. The article interviewed two colleagues from WealthCounsel, which is a national association of estate planning attorneys.

The myths that the article addresses include:

1. Estate planing is only for the rich.
2. If I die without a Will, everything will go to my spouse.
3. I have a Will, my estate wont go through probate.
4. After I create my Last Will and Testament or Living Trust, I’m set.
5. I could be held responsible for a deceased parent’s debts.

You can read the article in its entirety here: 5 Myths about wills, and what you should do.

While overall, the article is well written, I do have one large point of contention.  The article suggest that some of the do-it-yourself options are viable, such as Legalzoom, Suze Orman Trust Maker, or Quicken Willmaker.  Read some of my past posts on why these options can be even worse than having no estate plan at all.