Profit Law Firm

Newman's Own: A Paul Newman Estate Planning Story

Paul Newman, the mastermind behind the successful company Newman’s Own, started as an actor who was selling homemade salad dressing with the author A.E. Hotchner. No one would ever think that two years later that his company would be posting a profit at about $1 million, which had been given away to charitable funding companies. Besides his company, there are some valuable lessons to be taken away from his estate plan. This lessons are sure valuable and resourceful when it comes time to start prepping for your estate planning consultation.

 

• Writing a Letter of Intention: Sadly after being hospitalized back in 2006, he needed to revise his estate plan in 2008 in which his daughters would not be on the Newman’s Own Foundation Committee and that all his money that was given to charity was to be put in his marital trust.

• Avoiding Conflict: Disputes among family foundations are not common, especially with such a successful company.

 

So whenever you are in the store and see a Newman’s Own product, think about what it took to make that company stand out like it does right now and how Paul Newman wasn’t a business owner but someone who took all the charity money back for his own.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Photo Courtesy: Wikipedia

Benjamin Franklin's Estate Plan

Benjamin Franklin. A thinker. A founding father. An inventor. The creator of the first ever printing press. The author of the renowned Pool Richard’s Almanack. The list could go on and on. Benjamin Franklin was born with a mind like no other. His inventions are still used as references in movies like National Treasure with his bifocal glasses.

Besides being all the things he is known for today, Franklin was very wise back in his day when no one else was. Sadly, some of his wishes were not fulfilled to its initial purpose. For example, he had put together a picture frame with 400 diamonds that he had collected and was supposed to give it to his daughter. He had the initial reaction that his daughter, Sarah, that she should not engage in the expensive, vain, and the useless pastime of wearing those jewels. Those jewels were further noted that she had removed them from the picture frame itself because why not? “Diamonds are a girl’s best friend.”

With this crazy provision made to Franklin, certain aspects of his life had to be put into play. Thankfully, his reputation was not dishonorable and he should be praised for being a wise and thoughtful man to his daughter. Try not to make such crazy provisions like Franklin.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Photo Courtesy: Unsplash

How To Protect Yourself From Getting Into A Lawsuit

Many people these days wonder about how did I get into this situation or how did I get sued? Was I in the wrong or was I in the right? According to EstatePlanning.com, roughly around 15 million civil cases are filed each year. This number can be cut down as long as you can protect yourself from getting into a civil lawsuit. Even though you may have asset protection to shield your possessions or intellectual property from being taken away, you still need to always have a backup plan to succeed and avoid civil court.

Here are some strategies that might be useful in order to figure out how to get yourself away from lawsuits.

 

• Buying Enough Insurance

• Consider Rethinking Your Marital Property

• Setting up a Business Entity or More

• Consider Establishing a Domestic Estate Protection Trust

• Sending Your Assets Offshore or Away

 

By following these strategies, you are more likely to be successful in the estate planning process and getting away from a lawsuit along with probate court!

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Photo Courtesy: Mikhail Pavstyuk on Unsplash

Why Not To Create An Estate Plan By Yourself

When creating an estate plan for yourself, make sure to consult others. You do not want to create an estate plan by yourself, like a DIY video. By creating an estate plan by yourself, you can ensure that their will be consequences after an cognitive decline or death and your heirs could end up paying for financial obligations that you were unable to envision or even knew about when the documents were created.

If you are deciding to create an estate plan on your own, consider these 5 tips on why not to create an estate plan by yourself.

 

• Bank refusing to accept your power of attorney

• Giving too much away in your power of attorney

• Failing to properly exclude family you don’t want to give money to

• Unintended tax consequences for your heirs

• Not using the correct documents for your estate

 

If you decide to follow these tips, you will be able to speak to an estate plan attorney and to make sure you have everything that is necessary in order to create an effective and proficient one.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Notes Courtesy: TheSeniorList.com

Photo Courtesy: Photo by Elena Koycheva on Unsplash 

What To Do Before Creating A Living Trust Effectively and Strategically

In order to create a very effective estate plan, there are certain important tasks that must be put in place. One very important component to include in your estate is to determine whether you have a living trust or not. By creating a living trust, it can enable the fact that all your wishes for your family will be followed accordingly after your death. By also making a living trust accordingly and effectively, it can ultimately assure a faster distribution of your assets and avoid the unnecessary taxes along with keeping your wishes private.

In order to enable this process, though, you need to take prior steps in order make sure this living trust is correct. These steps include:

 

•  Making A List Of All The Assets That You Want To Include

• Making Sure To Find All The Necessary Paperwork For Your Assets

• Choose Beneficiaries Wisely

• Choosing A Successor Trustee

• Choosing A Guardian For Your Minor Children

 

By following these prior steps, you will be able to create an effective living trust and making sure to strategize your time with every aspect.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Photo Courtesy: JEShoots.com via Unsplash

Do You Want To Go To Probate Court? Tips On How To Avoid Probate Court

How do I create an estate plan? Why did I not create one and now I have to go to probate court? These questions are very straightforward when deciding what is the right answer. The right answer is explained through these tips on how to avoid probate court as a whole. Probate court can not only cause stress but it can also cause splits between different members of a family.

By following these certain tips, you and your family will be able to avoid probate court without that worry hanging over your head on whether it is a good decision or not to go to probate court.

 

• Give away property

• Establish a joint ownership for the real estate

• Establish a joint ownership for other property, other than real estate

• Pay-on-death financial accounts

• Process of transfer-on-death security measures

• Process of transfer-on-death for motor vehicles

• Process of transfer-on-death for real estate

• Living trusts

• Making a will

• Taking advantage of the small estate provisions in the law

 

If deciding whether probate court is where you should be, consider these tips and how you can advance on them as quickly as possible!

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Photo by Thomas Martinsen on Unsplash

Under Pressure: David Bowie's Estate Plan

“Under Pressure.” These two words were said by the iconic David Bowie along with Queen singer, Freddie Mercury. Sadly, Bowie died back on January 20, 2016 from liver cancer at the age of 69 in Manhattan, New York City. Many celebrities, including Kanye West and Madonna, reacted with deep sorrow because they had lost the “Chameleon of Rock.” Bowie’s legacy still lives on through his children, Lexi and Duncan, along with his wife and now widow, Iman.

Bowie, initially, left the rest of his residuary estate and the remainder of Iman’s trust to Duncan and Lexi. Lexi was also subjected to her own separate trust until the age of 25. After the age of 25, she would be able to possess all the trusts assets. In the case of Iman’s trust, it did qualify for a full marital deduction, which created Bowie’s estate taxes that were to be managed by the children’s shares of the residuary estate.

Even though Bowie was iconic, his estate plan did suffer some consequences. With the $100 million value of his estate, Bowie did not create lifetime trusts that would have benefited his children. If he had created that trust, his children would have been protected from creditors for either his or her lifetime. It would have also given Bowie the power to use his full GST exemption. Since he did not achieve this step, both Lexi and Duncan did not have a special power of appointment over the trust.

One other mistake that David Bowie made in his estate plan was that he did not institute the decanting procedure, which an authorized trustee, not the grantor, transfers assets from one trust into another trust which contains the necessary changes that will achieve the intended purpose. Since he did not use this process, Iman’s trust could not be transferred from one to another.

When creating an estate plan, make sure to use the decanting process. The decanting process can be a powerful tool for post- mortem estate planning and should always be considered whenever testamentary trusts are created. Don’t be under pressure! Create your estate plan today!

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Creating A Good Estate Plan

Many people these days wonder about what do I need to do before I die and what is the process. Well, the answer to those questions is: Create an Estate Plan. By creating an estate plan, it helps open up the options about money distribution in a will or trust to the heirs of your inheritance. In fact, there are 12 easy steps to follow in order to make sure that your estate plan can go smoothly without having the risk of going to probate court.

 

1. Create a Will
2. Consider creating a trust
3. Make Health Care Derivatives
4. Make A Financial Power of Attorney
5. Protect your children’s property
6. File Beneficiary Forms
7. Consider having Life Insurance in place
8. Understand any estate taxes that will be made
9. Make sure the funeral expenses are covered
10. Make the final arrangements
11. Protect your business
12. Make sure your documents are stored in a secure place

By following these steps, your estate plan will be carried out smoothly and successfully without any further negotiations. If you don’t create an estate plan, your future heirs would need to go to probate court to negotiate over your inheritance which is not good at all. Avoid going to probate court and create an estate plan today!

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Princess Diana's Estate Plan

“Family is the most important thing in the world.” Diana, Princess of Wales, was the most beloved soul that left the world too soon. When Princess Diana died on August 31, 1997, the whole world mourned because their queen was gone and her legacy of social work was cut way too short thanks to the paparazzi. Unfortunately, Lady Diana Spencer’s failure to have a proper estate plan came into play 17 years after her death.

Along with creating a will, Diana had created a Letter of Wishes. That letter contained the fact that ¾  of her jewelry and prize possessions were to be given to her sons, Prince William and Prince Harry and the ¼ would be given to her 17 godchildren. Unfortunately, this letter was not recognized and her godchildren only received one item of Diana’s estate. This letter went undisclosed for several years until it was revealed due to the outrage of the parents of the godchildren who were supposed to receive the ¼ of Diana’s estate.

According to the executors of her estate, they had filed a “variance” after her death which was supposed to distribute the money to her sons until they turned 30 which of course did not occur.

In Diana’s case, Personal Property that is valuable and important should be directly in a will or trust. Not a letter. If Diana had done this in her estate plan, there would be no questions about what the deceased individual wanted. Also, there would have been no variances. Even though Diana was the beloved princess of the world, by making the mistakes and causing much havoc in her family, her estate plan ended up in turmoil.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

 

 

 

Sonny Bono's Estate Plan

“I’ve got you babe.” Those were the words that the beloved Sonny Bono said to Cher in 1965, 33 years before his tragic death in 1998 from a ski accident. Salvatore “Sonny” Bono was a comedian, a father, a singer, and also a congressman who appealed to to the younger generations as a figure of American singer- songwriters. His fame skyrocketed after he married his second wife, Cher in 1964 and produced a show, “The Sonny and Cher Show,” which featured even their own daughter Chaz(Formerly: Chastity) Bono, who is now a man.

Along with his career, his death also sparked some difficulty. Since he died without a will, his estate was even up for grabs, even for his second wife Cher. Cher sued Sonny’s fourth wife, Mary Bono, and the estate for $1.6 million dollars that was in unpaid alimony. That money consisted of: $25,000 per month for six months, $1,500 per month for child support, and $41,000 in attorney fees. Whether or not Cher collected this money is up for debate even to this day.

By not creating his will, Sonny’s legacy suffered drastically. It was all filled with legal fees and like before it is now up for grabs. Don’t make the same mistake that Sonny did. Create an estate plan.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.