Category Archives: disputes

Common Mistakes To Avoid When Planning Your Estate

Estate planning can be a daunting task. If you do it right, your family will be well cared for long after you are gone. Without an estate plan, your family could be scrambling to pick up the pieces and paying expenses that would not be necessary with an estate plan. According to AARP Magazine, there are some simple but common mistakes people make when beginning to plan their estate. With the availability of online and do-it-yourself documents, many think hiring an attorney is a waste of money. In fact, one of the most important parts of estate planning is the assistance of someone familiar with the complicated legalese you will have to wade through. Retaining an experienced estate planning attorney could end up saving you and your family both money and frustration.

LisetteAccording to AARP Magazine, one common mistake people make is “failing to tie your business to your estate plan.” As one attorney told AARP, “parents sometimes do not want to talk to their kids about it and just leave the business to the kids.” This method does not take into consideration how to provide for children who work outside of the business. Sometimes failing to adequately plan for a family or small business means that the business ends up being sold under market, and distribution is not always uniform.

Another common mistake is to leave lump sums of money in cash instead of in a trust. A different attorney told AARP the anecdote of a father who left $250,000 “to his heroin-addicted son, who was penniless six months later.” A trust, according to AARP, “stipulates how you want the property distributed… the trustee holds your property and doles it out per your instructions.”

A third common mistake is failing to keep your estate plan updated. “Each time the law or your family changes,” reports AARP, “revisit your estate plan.” Even with all this, the most important aspect of estate planning is retaining an experienced estate planning attorney. Do not go through planning your estate alone. Contact a dedicated Chicago-area estate-planning firm today.

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Funeral Plans as Part of an Estate

Funeral Plans as Part of an Estate IMAGEPart of estate planning invariably involves making plans for a funeral. Many estate plans involve the notion of a pre-paid funeral, but unless the specifics are laid out with the assistance of a qualified estate-planning attorney, a pre-paid funeral could end up being a “grave error,” at least according to AARP Magazine. In some cases, such as that of Mississippi resident Evie McComb, a person will purchase a pre-paid funeral, file away the paperwork without alerting his or her family to the decision, and after his or her death, the paperwork will not surface. As was the case with McComb, the surviving family ended up paying for what had already been paid. “Evie’s daughter, Johnnye Denman, presented the document to the funeral home and asked for a refund,” according to AARP Magazine. “Too late, they said.”

According to the National Funeral Directors Association and as reported in AARP, “the average price of a burial with vault is about $8,000.” That is a lot of money for your family to come up with upon your death, but it is a directive that can be included with other important money plans. According to a publication from Ohio State University, the costs of dying include a funeral, a gravestone and cemetery plot (or cremation costs), and any medical expenses that might be incurred if the person dies in a hospital. Your specific wishes for your funeral and where the money will come from to pay for it can be explicitly laid out in your estate plan, making a frustrating and sad scenario like McComb’s impossible.

One way to set up funeral plans in an estate plan, as the executive director of the Funeral Consumers Alliance Josh Slocum told AARP Magazine, is to set up a “payable upon death” bank account. “It will earn interest, be available for an emergency, and still provide financial support to your family when you pass away,” according to AARP.  However, payable on death accounts may create unintended consequences.

Determining how funeral costs will be covered is only one step in estate planning. Do not go through it alone. Contact an experienced Illinois estate-planning attorney today.

Image courtesy of FreeDigitalPhotos.net

Ray Charles’ Children Win Legal Battle to Reclaim Song Copyrights

Ray CharlesSeveral of late singer Ray Charles’ children have won their legal battle to reclaim the copyrights on 60 of the entertainer’s most famous songs. A lawsuit filed by the Ray Charles Foundation attempted to block his children’s’ right to ownership.

In 1976, a revision to the Copyright Act gave authors the ability to reclaim their works assigned to publishers after a certain period of time. However, works “made for hire” cannot be reclaimed. If an author is deceased, then the heirs of the estate are allowed to recover works.

In 2010, seven of Charles’ twelve children filed termination to reclaim ownership of the 60 compositions from Warner/Chappell Music. Warner/Chappell did not challenge the validity of the termination notices. The Ray Charles Foundation did, however, because it reaps royalties from the copyrighted music.

According to a report in Variety, the judge would not rule on whether or not the songs were “made for hire” but instead wrote that “because the foundation is not a grantee of the rights to be terminated or its successor, Congress did not even require the statutory heirs provide it with statutory notice of the termination, let alone give it a seat at the table during the termination process.”

The foundation was also claiming breach of contract, claiming that in 2002, the children entered into an agreement with their father under which he set up a $500,000 trust for each of them and they waived “any right to make a claim against his estate.” The judge ruled that the termination notices were not claims against the estate because the estate had been probated and closed in 2006, prior to the notices being sent out. Therefore, there was no breach of contract.

Foundations, trusts, and any other estate planning issues can be very complicated and through knowledge of the law is important. Make sure you consult with a qualified Illinois estate attorney for all your estate planning needs.