There is a new lawsuit against Legalzoom, alleging all the usual suspects of claims how they are an unauthorized practice of law, etc. Something to keep in mind if you’re a do-it-yourselfer with your estate planning.

Here’s the link:http://www.leagle.com/xmlResult.aspx?xmldoc=In+FDCO+20101214983.xml&docbase=CSLWAR3-2007-CURR

There was an interesting article in the New York Times discussing the issues that a lesbian couple in Beverly Hills, Michigan had in trying to create a family.  As the article indicates, Michigan does not allow same-sex couples to perform second parent adoptions, which would allow one partner to adopt the other’s biological or adopted children.  However, Michigan recognizes second-parent adoptions performed elsewhere.

This inability, in Michigan, to adopt, is just one of many legal and financial hoops that same-sex couples must jump through.

The article lays out some of the chief issues same-sex couples must address and many of it through legal documentation.  One of the first key documents is a parental authority document establishing the ability of both parents to have legal authority to act as parents.

Additionally, last wills and testaments must be updated to ensure there is guardianship and co-parenting rights if one of the parents were to pass away.  It’s important to establish the legal authority before any blood relatives.

Often times it is important to have revocable living trusts in place to manage any property if one of the parents were to pass away.

Obviously, the couple also needs incapacity documents establishing each other as patient advocates and to receive HIPAA authorizations so that each can receive medical information on the other.

To read more on the recommendations, read the NYTimes article here.

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.

With the baby boomers aging, the largest amount of wealth in history is passing from one generation to the next. Unfortunately, people are procrastinating on their estate planning until it’s too late.

Over at the greenbaypressgazette.com, they have an interesting article that discusses how to prioritize the details in estate planning which you can read here:  “Guest column: Tim Cisler Prioritize details in estate planning.”

From the point of view of a Michigan estate planning attorney, there are a couple key points that I would like to reinforce from the article.

First, don’t underestimate the value of your assets.  Sure the economy is down, that said, your estate could include your residence, your retirement accounts, your savings, and possibly your life insurance.  Add all those pieces up and you may be surprised at the value.  Regardless of the size, you most likely would want to protect those assets from needless expenses, for example the expense of opening a Michigan probate.

The next key point is to keep your beneficiaries designations updated on your assets, including life insurance, retirement accounts, deeds to property.  Just because it made sense at one point to name a family member the beneficiary of the IRA, doesn’t mean now or in the future it would make more sense to name the living trust the beneficiary.

Lastly, know the difference between a probate estate and a trust.  People think that just because they have a Michigan Will, they will avoid the Michigan probate system.  Not true, a Michigan Last Will and Testament is your ticket to the Michigan probate system.  If you want to avoid a Michigan Probate, then a living trust would be a better option.

Christopher J. Berry, Esq., A Bloomfield Hills Wills and Living Trust Attorney, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Bloomfield Hills  Estate Planning, Bloomfield Hills Medicaid Planning, and Bloomfield Hills Probate Litigation, serving Metro-Detroit and Oakland County, Macomb County, and Wayne County.  We can be reached at 248-971-1700.