People are talking...

Last Friday New York became the most recent state to legalize gay marriage. Governor Cuomo signed the bill, which passed through the Senate with support from a handful of Republican lawmakers, including at least one who had run for office with the promise that he would oppose gay marriage in the state.

Issues with significant and obvious social overtones tend to create a furor in the public square, and as expected, people are talking about gay marriage, straight marriage, and what should or should not be under the law.

Talking heads pontificate on television. Editorialists editorialize. Neighbors discuss, and occasionally argue. And politicians step up on the stump and make promises, take credit, or vow a reverse of course is in the offing.

What few do is actually read the law. That's not just true of this new law in New York, it's true of most laws in most states, and in the nation as a whole. The vast majority of those who publicly express an opinion on topics such as this one have little knowledge of what the law actually says. Instead the interpret what the law means, what the intent of the legislators was, and what the ramifications of the change will be.

Almost all of what they have to share is conjecture. It has little basis in reality, and that is the shame of it. We learn when we have solid information on hand to guide us. Rumor, innuendo, suggestions, and misunderstandings of the facts can lead to worry, anger, and even violence under extreme circumstances. History has proven humans to be an emotional bunch who are prone to doing less than noble things when a big enough crowd gathers to vent their emotions - often with little real information to base their rage on.

I won't quote the entire New York marriage equality act here, but I will share a few sentences that are of interest and pertinent to the discussion, no matter which side of the argument you might be on.

“Marriage is a fundamental human right.” It says that using those very words. Regardless of whether you are married or single, divorced or widowed, engaged or commitment-phobic, it is reasonable to come to the same conclusion the New York legislature did on this one point, if you base your position on the traditions of the human race, throughout history. We marry. We always have. In fact, marriage is considered by many to be a cornerstone of civilization.

You'll notice there is no mention of gender, race, ethnic origin, or religious conviction on that simple sentence. “Marriage is a fundamental human right.” The legislature was concise on that point, at least.

“It is the intent of the legislature that the marriages of same-sex and different-sex couples be treated equally in all respects under the law.” That sentence is in the bill, too. Again, it is short, to the point, and suggests an attempt to be fair, even-handed, and respectful of the rights of the citizens of New York.

If you take the time to read the bill you will notice that there is no place where special privileges are granted, or special rights are bestowed. With one exception. There is an amendment to the bill that acknowledges that while the state recognizes marriage as a right, and that same-sex and different-sex marriages should be treated under the law as equivalent unions – no person or entity can be compelled to provide services, accommodations, advantages, facilities, goods or privileges for the solemnization or celebration of a marriage. These points are included in the religious exemption to the bill.

So while some of us may be in favor of this new law, and some of us may be opposed to it, the bill itself contains an important lesson in specifics for all of us. Because the truth of the law is may not be found in the pundit's pronouncements or the politician's speeches – it is laid out for all to see in the bill itself. As is the case with any bill, in any state, on any topic.

The world we live in really is an open book. We just need to be sure we take the time to read it ourselves once in a while. That's the key to truly knowing what's what – really!

Is a lifelong deal really a lifelong deal?

The Fox Theater in Atlanta, Georgia is one of the great entertainment palaces of the 20^th Century. Originally built as a venue to host movies and live performances, as well as to provide a home base for the Shriner's organization, the Fox has seen good times and bad. The doors opened just after the stock market crash that set off the Great Depression, but the Fox muddled through. With changes of ownership and management, the Fox maintained a presence in the community until the 1970s, when its future became truly tenuous.

Enter Joe Patten. Joe is a force of nature. He is the man most responsible for pulling together the resources and bringing sufficient attention to bear, which allowed Joe and his crew to save the Fox from demotion during those dark days. In return Joe was granted a lifetime lease on the 3,640 square foot apartment that lies under the domed roof of the theatre.

But that was yesterday, as the saying goes. The lease was actually signed on December 28, 1979, and it stipulates that Joe is granted the privilege of living rent free in the Fox for the rest of his life. Yet by the summer of 2010 there were rumblings that the board of directors of Atlanta Landmarks, an organization that Joe helped to form, and the current owners of the Fox, were suggesting that perhaps it was time for Joe to move along.

As you can imagine, the story made the papers, and caused a bit of an uproar in the community and across the Internet.

The publicity was arguably beneficial to Patten, who was in receipt of the letter suggesting that his time as the sole resident of the apartment above the Fox was coming to an end. That same media attention was less than beneficial to Atlanta Landmarks, however, which got a bit of a public relations black eye for being perceived as less than grateful or gracious to the man who had saved the landmark that he had called home for more than 30 years.

Only recently it would seem that Patten's attorneys have been able to hammer out an agreement with Atlanta Landmarks that will keep Joe Patten in his home, atop the Fox, until the end of his days. At 83 years of age, it no doubt provides some welcome relief to a proud octogenarian of considerable accomplishment to know that his coveted lifetime lease truly is valid for the remainder of his lifetime.

At least in this case, a lifetime lease really has turned out to be good for a lifetime. Congratulations, Joe. Long may you enjoy your home, without the fear of a moving van rolling up to the door unexpectedly.

ESTATE PLANNING: Planning for your children's education

Recently a fellow attorney in Indiana penned a thought provoking post on planning for your children’s education.  I enjoyed it, and I share it below with you.  The author is Chris Yugo writing a column for The Times in northwestern Indiana.

I just finished reading a book by Michael Schumacher called the "Mighty Fitz: The Sinking of the Edmund Fitzgerald."

As the title implies, the book chronicles the story of the Edmund Fitzgerald, a huge ore caring vessel that sank in Lake Superior in 1975. Except for what I learned from the Gordon Lightfoot song, "The Wreck of the Edmund Fitzgerald," I really knew very little about the ship and its sinking.

Although you might imagine that book about a shipwreck would end with the ship's sinking, the book actually picked up from there to discuss the investigation and how the families of the men who were lost came to terms with the tragedy.

One thing that caught my attention was a section dealing with the children of the sailors. In particular, it discussed how Eugene "Red" O'Brien, a wheelsman, encouraged his son to attend college and get an education by establishing a trust for his education. According to his son John, "It made me stay in college because it was my job. I was getting paid. Here was my dad, a guy with limited education, working on the lakes. Yet he had the insight to do these things"

The book didn't go into too much detail about the terms but according to John, he received a monthly stipend as long as he remained in school.

The great thing is each of you can do the same thing to encourage your children and grandchildren to attend school. Now some of you might be saying, "I'm having trouble just keeping the mortgage current. There is no way for me to establish a trust fund."

In today's economic environment, I certainly understand that. However, you can still plan now without actually setting anything aside. You can set up a trust for your loved one's education within your will. A trust established within a will is a testamentary trust.

By using a testamentary trust, you don't have to fund it until your death. At that time, it can be funded with the savings account or the proceeds from the sale of the home or from life insurance or retirement accounts. If the funds are available at your death, the trust will fund. If the funds aren't available at your death, then the trust won't fund and you haven't lost anything.

Since you create the trust, you can choose the terms. For example, you can restrict the funds to only be used to pay for tuition, fees and books or it can pay any legitimate educational expense including room and board and perhaps a living allowance. You can make the terms as restrictive or unrestrictive as you please. So be creative.

I'm pretty sure Red didn't plan on being lost at sea. However, he did have the foresight to plan, which enabled his son to get an education. Even if you don't work the ore carriers on the Great Lakes, you should still have a plan.

Please note:   Opinions are solely the columnist's, and his information is meant to be general in nature. Specific legal, tax, or insurance questions should be referred to your attorney, accountant or estate-planning specialist.

Remember, I am the attorney who is available to address specific issues related to planning for your children’s education and other estate planning matters.  Please call me or post a request to meet in the COMMENT section of this blog post. 

 

Real estate is tough all over

Every now and then an article catches my eye that makes an outstanding point. When I can, I like to pass those little treasures on to others. So when I came across this piece in Forbes that so beautifully illustrates the leveled playing field that is the real estate market, I just couldn't resist popping a link in here.

The article is titled, “Whack! Celebrity Price Cuts: Mel Gibson, Penelope Cruz, Billy Joel, and More.” They're not talking about a reduction of the fee our top flight celebrities charge for their services, either. This piece is about the hit their real estate holdings have taken in our current economy.

It's an interesting read. You may even come away feeling a bit better about your own home's appraisal after perusing this piece. And if you happen to be in the market for a new house, in a far off place, with an illustrious history and a price tag in the seven figure range – well you just might find a deal in the process.

Enjoy!

Beware the Grandparent Scam

It's a sad fact of life, but there are people out there lying in the weeds, hoping to find an unwary victim they can take advantage of. All of us need to be on guard, and a big part of being on guard is being educated and aware.

This leads us to a brief discussion of an old but common ploy known as the Grandparent Scam. It works like this. You get a call late at night from your grandson or granddaughter. They sound different, but it's late and it might be a bad phone connection, so you ignore the sound of their voice and focus instead on the words they're saying. They tell you they are in real trouble and need your help. In this case, help equals money.

The reason for the sudden late-night need for cash is immaterial. The scammer has free time. They can find the names and ages of your grandchildren, so they can put together a scenario that is plausible enough to get your worried. You love your grandchildren, and you want to keep them safe. So you listen, assuming all the while that you're taking to your grandchild, not a thief who is trying to empty your bank account.

They tell you were to wire them a quantity of cash. They tell you how embarrassed they are and plead with you not to call their parents. “Can't you please help me?” sounds so heartbreaking coming through your phone at 1:00 AM.

So you get up and you wire the money, as you've been asked to do. Unfortunately, the money didn't go to your grandchild, who is more than likely still at home, safe in bed – it went to a scammer who just hit pay dirt.

How common is the Grandparent Scam? In 2010 alone the Federal Trade Commission received 60,000 complaints. On average the victims of this scam lost, $3,500.

So stay on your toes. If you get a call from a someone who identifies themselves as your grandchild, ask questions. Where are they? Can I call you back? Why are you at a different number than your usual cell phone number?

The longer the person on the other end of the phone talks, the more likely it is they'll make a mistake that clues you in to the fact that they are not your grandchild. Don't be afraid to call mom and dad, either. It might embarrass your grandchild if they are truly in trouble. But it might keep you from being the victim of a scam, too. In the big scheme of things, it's at least possible that suffering a little embarrassment might be the better of the two options.

It doesn't have to have monetary value to be important to your estate

SmartBusiness recently highlighted the fundamentals of a “well-thought-out estate plan,” with topics that everyone should consider – whether prince or pauper.

One of their interesting points was that if you are working with an estate planning attorney, most likely the important areas are going to be properly addressed, including the impact of pending changes in estate taxes. However, I’ve found that many people overlook making arrangements for their personal effects, including jewelry, art work and collectibles. They simply assume that their loved ones will be able to agree on how to divide it all up. In my experience, these things are what people argue over the most.

Not long ago, there was a case involving two brothers who litigated for three years over the ‘stuff’ left in their mom’s house. They ended up spending over $50,000 on attorney’s fees fighting over items that were appraised for only $5,000. To avoid this happening in your family, draft a Memorandum of Understanding and attach it to your will. The Memorandum can be very simple, but it should also be very specific in detailing your wishes. Hold a family meeting to identify what your children want, and incorporate that into the memo.

As your circumstances change and evolve over the years, your plans need to be kept current. Don’t forget about external factors such as tax law changes and fluctuations in the value of real estate.

Few people sit down, annually, and take stock of their estates. But if you do, millions of dollars can be saved and much heartache can be avoided.

If you have questions, let’s meet and talk.  My goal is to provide you with helpful information for creating, implementing, and updating your estate plan to serve your wishes.  And our mutual goal will be creating an estate plan that will succeed when it is called upon to take you and your loved ones through life’s inevitable transitions.

 

 

 

You can't do that

As unfortunate as it is, many of us will find ourselves with debt that has built up to an unmanageable level. It happens. Sometimes it happens because of unrestrained spending. However, it can also come about due to an illness, a layoff, the need to take care of a loved one, or any one of many variables that can cause our expenses to soar, while our income dwindles.

Our debts are our responsibility. And while the most of us will do our very best to dig our way out of debt in a responsible manner – that effort will not necessarily shield us from phone calls that put us in direct contact with debt collectors.

There is nothing enjoyable or noble about being deeply in debt. But that doesn't mean you deserve to be yelled at, annoyed, embarrassed, or lied to in order for that debt to be collected. In fact, residents of Connecticut should never have to suffer that sort of behavior from a bill collector. Partly because it's bad manners and bad business to resort to a screaming match with a teary-eyed widow who is doing her very best to make minimum payments that are simply beyond her means. But mostly because it is against the law. It's true. You may have heard a lot of rumors and murmurings about what bill collectors can and can't do in the process of trying to collect a debt. Well the truth is, the law is very clear on what they cannot do.

What the law says is this; “No creditor shall use any abusive, harassing, fraudulent, deceptive, or misleading representation, device, or practice to collect or attempt to collect any debt.”

Thankfully, this particular passage of Connecticut law can be understood with reasonable clarity even if you don't have an advanced degree from Yale. It basically says that debt collectors can't call you on the phone and scream at you, or insult you, in an attempt to shame you into paying a debt. They can't pretend they are somebody other than a debt collector to wheedle information out of you, or your family members. And they can't lie to you about what will happen if you don't whip out your checkbook and pay your debt in part, or in full, right now.

In these difficult times it's worth knowing for sure that the law really does work for you. In fact, its whole purpose is to protect us from abuse or harm. So the next time you're worried, or a rumor floating around the office or the production floor gives you real concern about what you should, or could do about a debt problem – don't fret. Find out what your rights are, for real. Then work up a plan of action based on solid information.

Knowing what the rules are can make all the difference when we're under stress, and in debt. I hope this little bit of insight helps you, even though I hope you'll never need to put it into use in your own life.