Should you draft your own Will?

A recent article in US News & World Report states that there is an increase of people handling their own estate planning by drafting their own Wills. There are a number of online resources to do this, and some people assume that by doing this online themselves, they will save themselves hundreds or thousands of dollars?

Is this actually a good, sound practice? Should people, with little or no knowledge of the law, draft their own Wills?

There are numerous problems that can arise when one takes on the task of drafting their own Will. First, each state’s law is different, and there are different legal terms and requirements for an authentic Will in each state. These requirements are not easily learned online. Second, if a mistake is made, or if a person drafts a Will without understanding the full effect of its language, there will be thousands of dollars spent fixing it afterwards. Third, and worse, you may draft your own Will and it may legally distribute your property exactly opposite of how you intended.

We have seen numerous tragic cases where people have either drafted Wills themselves, or used online tools to draft them, and in the end, the Wills have been declared invalid, or worse yet, they have transferred assets contrary to the person’s true intention.

Don’t take the risk of drafting your own Estate plan. At Fausone Bohn, we have attorneys who will provide a free consultation, and discuss a range of choices, options, and plans. Our estate planning is often conducted on a flat-fee basis, and the rates are affordable.

Let an attorney, who is skilled in the law, help you fully think through and understand what choices you have, and let them help you pick the best options for you. It is worth the peace of mind that you will receive when you know that your estate plan is drafted exactly how you want it.

You can read the US News & World Report article here: The Dangers of DIY Estate Planning


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

The Michael Douglas Lesson About Marital Property

Michael Douglas and his ex-wife Diandra Douglas divorced in 2000, but that was not the end of their saga. Diandra Douglas recently sued Michael Douglas in a New York court, alleging that her divorce agreement entitles her to profits & residuals from his new movie: “Wall Street: Money Never Sleeps.”

Diandra Douglas contends that the divorce agreement entitles her to one-half of any profits, royalties & residuals from any movies he did during their marriage. She contends that the new movie is a spin-off from the original “Wall Street” movie, made famous by Michael Douglas’s character, Gordon Gekko: “Greed is Good.”

Michael Douglas, on the other hand, contends that she is not entitled to anything from this new venture and that it is not marital property subject to the 50/50 split.

This particular dispute is a good example of why a person needs a skilled attorney while going through a divorce. In Michigan, all property and income earned during the marriage is considered to be marital property, subject to a 50/50 split. If certain income or property is marital, whether it is received during the marriage or after the divorce, it is to be shared equally.

A skilled divorce attorney will be careful in how marital property is defined, and should counsel their client on what type of possibilities may exist that would entitled that person to a share of profits or distributions even after the marriage, provided those profits and distributions resulted from marital property.

Every situation is unique and different, and in some cases, there will be a clear and defined ending point for those types of profit distributions. However, in other cases, such as the Douglas’s case, the line is not so clear or defined.

You can read the Boston Herald article here: Michael Douglas’ ex wants ‘Wall Street’ payday


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

The Legal Separation of John & Elizabeth Edwards

A recent article on CBS News discussed the legal separation of John & Elizabeth Edwards. While they do not plan on divorcing in the near future, they are separated.

One common question that is often asked is whether or not Michigan has what is called a “legal separation,” allowing a married couple to legally separate, but still remain married.

The simple answer is yes, but the procedure is not so simple. Michigan has a legal action entitled “Separate Maintenance.” An action for “Separate Maintenance” is filed with the court just as a Divorce action is filed.

The process for a Separate Maintenance action is identical to that of a Divorce. In a Separate Maintenance action, just as in a Divorce action, the couple must decide on how they are going to distribute their assets, share their debt, determine child support & spousal support, and also address how assets are purchased and debt is acquired in the future.

At the end of a Separate Maintenance action, a Judgment of Separate Maintenance is entered with the Court, and the couple is officially legally separated, meaning that all property and debt has been divided, but the party is still legally married.

Why would a couple proceed with a Separate Maintenance action instead of a Divorce? The most common reasons are religious and medical. Some people opt for a Separate Maintenance action because divorce is frowned upon or prohibited in their religion. Some people truly need the medical insurance of their spouse and cannot obtain insurance on their own. For these people, they essentially become “divorced” but still remain married.

What happens if you go through the entire Separate Maintenance action and then decide later that you want to become divorced? You have to file a Divorce action with the court and start from the beginning again.

Separate Maintenance actions are not very common in Michigan, but it is the only legal avenue in Michigan that allows a couple to split all assets, share all debt, live independently, but still remain married. It is the only way for a couple to become legally separated.

You can read the CBS News article here: Elizabeth Edwards: No Divorce from John Planned


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

No Texting while Driving in Michigan--effective 7/1/10

Michigan has just enacted its first law against texting while driving. Effective Thursday, July 1, 2010, it is now illegal for a driver of a vehicle to read, type or send a text message from a mobile device situated in the driver’s hand or lap.

This is the first state-wide legislation enacted, and it supersedes any local laws that were previously enacted.

Effective July 1, 2010, it will be a civil infraction to text and drive, and a first offense carries a $100.00 fine. A second and all other subsequent offenses carry a $200.00 fine.

Click here to read the law itself: MCL 257.602b

Click here to read the Detroit Free Press story on the new law: Mobile texting ban nearly here


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

New York Considers "No-Fault Divorce"

A recent article in the New York Times reflects that New York is considering legislation to end the fault-based divorce system, and move to a system of “No-Fault Divorce.” What exactly does that mean?

New York is one of the states that requires “fault” to be proven in order for a divorce to be granted. This means essentially that the person filing for divorce must state specifically the reason they are seeking a divorce, and the allowable reasons are confined to adultery, cruelty, imprisonment or abandonment. The spouse filing for divorce must prove one of those reasons to the Court, or the divorce will not be granted.

Michigan has been a “No-Fault Divorce” state since 1971, when the legislature abolished the fault system for obtaining a divorce. In Michigan, the person filing for a divorce does not have to state a reason for the divorce, nor do they have to prove adultery, cruelty, imprisonment or abandonment to the Court in order to get divorced.

Essentially, in Michigan, this means that if a person wants to get divorced, the divorce will happen unless both people decide to reconcile.

Does this mean that “fault” is never discussed? Not at all. The underlying reasons leading up to the divorce, particularly “fault,” become relevant in issues of property division, spousal support (alimony), custody and parenting time. However, “fault”, in Michigan, becomes more a cursory issue, and not one that has to be proven in order to get divorced in the first place.

You can read the New York Times article here: Change to Divorce law Could Recall a TV Quiz Show: ‘To Tell the Truth’

If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

Al & Tipper Gore and the Silver Divorce

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A recent article in Newsweek reflected that the recent divorce announcement by Al & Tipper Gore is actually reflective of the marriage and divorce trends, and that there is a rise in what is called the “Silver Divorce,” which is a divorce between couples who have spent at least 25 married years together.

There are some significant issues that become immediately important in “Silver Divorces” when the couple has been married for a significant amount of time. This includes issues of retirement, pensions, spousal support, and even social security.

Michigan law dictates that all marital assets are to be split equally when a couple divorces. This means that if one of the spouses has an IRA, 401(k), or pension, that must be valued (determine what the marital portion is) and that marital portion must be shared equally.

Also, in long-term marriages, the courts will often grant a request of spousal support (alimony). The length of time and the amount will vary from situation to situation—but it is an important consideration and in many cases, absolutely necessary for one of the spouses.

Lastly, it is important that the issue of social security is addressed. If you have been married 10 years, then even after a divorce, one spouse may be able to collect social security based upon the other spouse’s work record. This is something that should be definitely be discussed with an attorney.

Whether or not there is a trend toward more “Silver Divorces,” what is crystal clear is that if you have been married that long, you need to be well equipped with a skilled divorce lawyer so that you are fully aware of what your rights are, what options exist for you, and how to prepare for your financial security moving forward.

You can read the Newsweek article here: The Rise of the ‘Silver Divorce’

 

If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

 

What can we learn from Gary Coleman?

Lessons from Gary Coleman’s Estate

Who has the authority to make funeral and burial arrangements for the recently deceased Gary Coleman? His parents or his ex-wife who had medical power of attorney?

Neither.

A 1999 Will was recently found, and in this Will, Gary Coleman nominated his former manager, Dion Mail, as the Executor of his probate estate, which means that he, as executor, also has the authority to make funeral and burial arrangements.

People often think that if they have a power of attorney in place, or a medical power of attorney, then that person is the one who is responsible for making burial and funeral arrangements. Some people even believe that the spouse or parents have the right to do so in any circumstances.

However, it is the Executor, or the Personal Representative of the Estate that has the authority to make the funeral and burial arrangements. The Executor or Personal Representative is nominated in a person’s Will.

It is extremely important to make sure that your Will is up to date, and nominates the right person for the position of Executor or Personal Representative. It is advisable to frequently review your Will to make sure that you keep your nominations and wishes up to date.

We will never know if Gary Coleman still intended to make his former manager the person responsible for making the funeral and burial arrangements. What we do know is that he nominated him to do just that in a Will drafted in 1999. With no other revisions to that Will or new Wills, that is the decision that stands, and that is the decision the Courts will enforce.

You can read the CNN article here: Gary Coleman funeral plan 'pending' as executor takes over



If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.