Attorney O's Midnight Musings: Connecticut Law » Estate Planning

Leaving Your Passwords and Other Important Information for Your Loved Ones

Irene C. Olszewski, Esq. — Thu, 15 Dec 2011 23:36:28 +0000

Whether we like it or not, we are all going to meet our demise one day. I’m not particularly looking forward to it, mind you — but I know that I have to think about it in practical terms because it will most certainly affect those I leave behind. The emotional component aside, when I my time comes, my loved ones will have to deal with the settlement of my estate. I don’t want that to be more difficult for them than it has to be. To that end, I should plan much better than I already have.

Sound familiar? You’re certainly not alone. I’d venture to say that you’re actually in pretty darn good company. There are more folks out there who haven’t planned properly than those who have. Time to switch teams.

I will assume that if you’ve been reading this blog regularly (I’m optimistic) … you either already have a Last Will and Testament in place or you’re going to call a lawyer first thing in the morning and schedule an appointment to have one drafted. You’re not going to put that off another day. Promise? Good. That’s a start.

Now let’s talk about those other little details that we often overlook. Things such as PIN numbers and account numbers and passwords. Yeah, those pesky things that we all change rather frequently. Well, in theory we’re supposed to change them frequently. Some people never change them. You really should, in case you were wondering.

If you don’t happen to wake up one morning, someone in your family will have to know how to access your private information. I don’t recommend leaving a file on your computer with all of that sensitive data because we all know that computers can be rather easily hacked. Not a good plan.

Don’t leave a big notebook laying around with a brightly colored label alerting a would-be thief that hey, if you want to steal my identity, here’s everything you need and more. Again, not a good plan.

Some people opt to keep such data in a safe deposit box. That sounds like a good idea on the surface but keep in mind that before your loved one can access your safe deposit box upon your death they a) have to know it exists (and where), b) they have to be a joint owner of the box and have a key, or c) they have to be named executor or administrator of your estate and prove to the bank that they have a legitimate reason to access your box. Remember, they still have to know it exists and they still have to have a key (or they will pay a rather high fee to have the box drilled open). Besides, account numbers and PIN numbers and passwords change so frequently that you’d wear yourself out running back and forth to the bank trying to keep the darn list up to date. That is, if you even remember to update the thing.

Some security experts suggest that you have an nondescript notebook or box in which you store all of the information. Obviously, you have to tell your executor where it is located and why he or she will want to access it after you’re gone. Other experts recommend that you prepare a confidential file and store it at your lawyer’s office along with your Last Will and Testament. Then, when the Will is read, the lawyer can hand over the information to your executor. Again, you will have to keep the file updated — and that may be as simple as sending your lawyer a letter when things change, or perhaps stopping by with the new file.

Smart phones are handy dandy little gadgets that store all sorts of information. But remember that phones can be hacked, stolen and lost. If you do keep your passwords in a folder on your cell phone, please be prudent enough to develop some sort of code so the passwords aren’t obvious to someone who should not ever have access to them. Again, that method worries me just a tad.

When recording your passwords, PINS and account numbers, be sure to remember all of your online accounts. Your list should include not only account numbers and URLs (the www.my account part) but also your user name, password and security question(s). Don’t forget about your e-mail accounts and social media accounts (such as Facebook, Twitter, Linked In and the like). These days, social media is one important way that your loved ones may have to alert people they aren’t even aware you know that you have died.

Whatever system you choose to employ, don’t put this off. The new year is approaching, so go ahead and make this your new year’s resolution. It may be the best thing you ever did for your loved ones. Other than leave a Will, that is.

For further reading on the subject, check out PINs That Needle Families here.

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Disclaimer: The information, comments and links posted on the blog do not constitute legal advice. I will not respond to any specific legal questions in the comments section of this blog. Read my entire disclaimer.

Estate Taxes and the Future of the Oakland Raiders

Irene C. Olszewski, Esq. — Wed, 19 Oct 2011 02:59:46 +0000

Here’s a post that should appeal to sports fans and probate estate fans alike. (Sorry, I couldn’t resist). I happened open upon this post written by my colleagues, Andy & Danielle Mayoras on The Probate Lawyer Blog. I thought it was worth passing along tonight. Enjoy!

Read:

Will Estate Taxes Force Al Davis’ Family to Sell The Oakland Raiders?

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Family Wages Legal Battle Over Control of Etta James’ Fortune

Irene C. Olszewski, Esq. — Mon, 24 Jan 2011 19:13:22 +0000

72-year old Etta James, the famed jazz singer most known for the classic, At Last, was diagnosed with advanced dementia and leukemia. She is in need of total care and is unable to sign her own name. Her husband of 41 years, Artis Mills has asked the court to add his name to her sole bank accounts because California is a community property state. He claims that he needs control of the money in order to provide care for Etta at home rather than in a nursing home. Her son, Donte James (born to a different father), wants to see his mother cared for at home as well; but he wants someone independent to manage her funds.

The issue is that Etta signed a Power of Attorney in 2008 naming her son, Donte, as the person to manage her affairs in the event of her incapacity. Under the law, the execution of the Power of Attorney would control and the husband would not be able to control her million dollar fortune. Mills is claiming that Etta was not mentally competent in 2008 to have signed the document. Her sons believe otherwise.

This is a perfect example of why proper legal documents are important in every person’s life. You never know what’s going to happen and if you want some say in who will manage your funds and other aspects of your life if you are unable to do so, you must plan ahead.

A Power of Attorney is an important legal document that helps to protect you while you are alive. You might also seriously consider executing Advance Directives (a Living Will) in the event that you suffer a medical emergency or terminal condition in the future and want to direct how your medical providers will handle life support and comfort measures. A Last Will and Testament (Will) gives you the final say over the disposition of your property upon your death.

It is wise to consult with a licensed attorney to discuss the legal documents of protection available and to determine what documents suit your individual situation. Don’t wait until it’s too late.

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What’s In YOUR Adult Starter Kit?

Irene C. Olszewski, Esq. — Fri, 27 Aug 2010 18:42:55 +0000

I was in Maine to attend the wedding of a friend last weekend (a trip I enjoyed immensely, in case you were wondering). At a gathering on the eve before the ceremony, a few of us were engaged in conversation with the groom-to-be. After telling us about his job and future plans, he remarked that he had awoken one day at age 27 and realized that he had amassed the tools for his “Adult Starter Kit” which included a house (complete with mortgage), a solid job, and a fiance. Although we all laughed at the time, I’ve thought about his comment a lot this week and it sparked the subject of this post.

So, I will ask you, dear readers, what’s in YOUR Adult Starter Kit?

In addition to his house, job and new wife, I might suggest a number of other things that my friend should consider adding to his arsenal. It’s a lot like one of those starter game system bundles you buy. It comes with the very basics, such as the console, AC adapter, hook-up wires for your TV and a controller. Sometimes they even throw in a free game. The system works well for a while but it’s usually not too long before you realize that in order for it to really serve you well, you’ll need to add another controller, a few more games and a memory card. Adult Starter Kits are similar.

Let’s consider the Adult Starter Kit Expansion Module: One of the things my friend might consider adding to his Kit, given that he now owns some assets, is a Last Will and Testament. Let’s pretend that he hasn’t yet married his fiance. If he were to die without a Will, his assets (including his house) would pass to his blood relatives according to the laws of intestacy in effect in his state on the date of his death. If it were his intent to leave the house to his fiance if something happened to him before the wedding, she would be out of luck if he didn’t have a Will.

In Connecticut, a minor reaches the age of majority at the age of 18. If that young adult is unfortunate enough to be in a serious car accident leaving him or her in a persistent vegetative state, I would hope that he or she had previously executed Advance Directives (also known as a Living Will). One of the best examples I can think of to illustrate the need for such a document is the well-publicized Terri Schiavo case. In Terri’s case, it was cardiac arrest and not a car accident that put her in the hospital (she was 27 at the time). Her husband battled her parents in court for several years (1998 to 2005) in order to be able to cease life support measures. Terri did not have a Living Will.

If a young adult is temporarily incapacitated due to an accident or medical emergency, a
Power of Attorney (POA) or Springing Power of Attorney will allow a trusted person to handle his or her financial affairs. Perhaps the young adult owns a house on which he pays a mortgage — and a car on which he repays a loan — if he is unable to access his checkbook due to being incapacitated, those bills will not be paid and serious consequences may arise. If he has a POA in force, someone he designates will be able to access his bank accounts and pay his bills while he recovers.

If you are a young adult in the process of packing your own Adult Starter Kit (or if you’re the parent of one), I hope you will remember that a house, a job and a fiance are a great start to the Kit … but don’t ignore the legal protections available to you. You wouldn’t buy a house without also purchasing a homeowners insurance policy nor would you finance a car loan without carrying insurance on the vehicle. Young adults — actually, ALL adults, should explore the legal documents I have discussed in this post, at the very least.

Where There’s a Will, There’s a Way

Irene C. Olszewski, Esq. — Thu, 22 Apr 2010 03:59:42 +0000

“In this world nothing can be said to be certain, except death and taxes.” — Benjamin Franklin

I find it interesting that people are diligent about obtaining life insurance policies to assist their loved ones financially after they die but so many put off preparing a Last Will and Testament. I’ve actually heard people say that they are afraid that if they do make a Will, they will die. I suppose it’s like walking under a ladder, having a black cat cross your path, or opening an umbrella indoors. In my professional experience, people don’t suddenly drop dead ten minutes after publishing a Will. We’re all going to die some day but making a Will probably won’t end our lives any sooner than it was going to end any way.

With that said, a Will is a document meeting certain formal requirements by which an individual may provide for the disposition of his or her property after death. In Connecticut, a Will must be in writing, it must be signed by the person making the Will (known as the testator or testatrix) and it must be attested by at least two witnesses who must sign in the presence of the person making the Will.

When a person writes their own Will, they run the risk of the document not being valid in their state. If a resident of Connecticut wrote: “I, John Doe, leave all of my wordly goods to my brother, Albert Doe. Signed John Doe,” that Will would be considered invalid because it does not meet the requirements of construction I listed in the previous paragraph. Such a Will is known as a holographic Will.

I have had cases where a widowed spouse submitted a Will to the Probate Court and was told that it was invalid. In one such case, the deceased spouse had purchased a Will online. Not all Wills are created equal and it is important to be aware of that fact. If you don’t have a Will, you should contact a licensed attorney in your state for advice. If you do have a Will that wasn’t drafted by a licensed attorney, you should have it reviewed by one to determine whether or not it is valid.

Just be sure to put a rabbit’s foot in your pocket before you make the call.

2010: An Uncertain Time for Estate Planning

Irene C. Olszewski, Esq. — Thu, 14 Jan 2010 03:51:35 +0000

According to information provided by New York Times on Yahoo! Finance:

“Most tax advisers thought that Congress would extend the estate tax before it was due to expire at the end of last year. But while the House did act, the Senate did not. So what few predicted would happen did happen: the tax is gone for one year but set to be revived in 2011 at a higher rate and a lower exemption, unless Congress acts. It’s the first time since 1916 that rich Americans can contemplate dying without one last tax.”

This will be a different year for estate planning than in years past.

Read: A Bizarre Year for the Estate Tax Will Require Extra Planning

[Thanks to North Carolina Estate Planning Blog]

2010 Has Arrived … What of Estate Taxes?

Irene C. Olszewski, Esq. — Mon, 04 Jan 2010 05:49:21 +0000

I scoured the internet for interesting posts and articles on the impact of the lack of estate tax in 2010. I present a few of them here for your review:

Lack of Estate Tax in 2010: Now Cheaper to Die?
With Taxes Gone, Will Death Be At A Premium?

[Source: ABC News]

Don’t Die Today – Tomorrow There Will be No Estate Tax

[Source: North Carolina Estate Planning Blog]

Beating the estate tax to death
With estate tax set to end this year, retroactive lawmaking in 2010 is likely

[Source: Market Watch]

How Does Your Timeshare Factor Into Your Estate Plan

Irene C. Olszewski, Esq. — Fri, 04 Dec 2009 05:01:22 +0000

You work hard your entire life and hopefully, in the process, you acquire some assets. Bank accounts, real estate, tangible personal property, collectibles, stocks, bonds and family heirlooms come to mind.

To paraphrase an old saying, the only certainties in life are death and taxes. Given that death is inevitable (much as I hate the thought), estate planning is something you should not ignore.

I often hear people say that they should have a Will drafted someday soon. (When they utter this statement, they have usually acquired some assets, large or small). I suppose it is human nature to procrastinate … and it is human nature to think ourselves immortal.

Wishful thinking aside, one day we shall all leave behind an heir or two.

Recently, I came across a well-written post authored by Pennsylvania attorney, Patti Spencer. It focuses on the issue of timeshares and how they come into play as part of your estate plan. If you own a timeshare, I urge you to review this post.

Read: Probate for Timeshares

[Source: Pennsylvania Trust and Estates Blog]