|
|
Page |
Update/Correction |
| 58 |
Additional material for subsection h:
The number of states which have repealed the Rule Against Perpetuities as it
applies to trusts now exceeds twenty. |
| 107 |
Additional material for introduction to
Section G: Seven states have special provisions dealing with transfer
on death deeds, also called beneficiary deeds (Arizona, Colorado, Kansas,
Missouri, Nevada, New Mexico, and Ohio). This technique operates similar to
a pay-on-death bank account, that is, the beneficiary named on the deed has
no interest until the owner dies. Like the depositor, the owner of the land
may change the beneficiary designation at any time and for any (or no)
reason. |
| 137 |
Add to Note 1: The annual exclusion
increased to $12,000 as of January 1, 2006. |
| 207 |
New Note 15. For an
excellent review of the fundamentals of drafting marital deduction
provisions, see Sebastian V. Grassi Jr., A Summary, a Checklist, and a
Chart of Marital Deduction Formulas, Prob. & Prop., Jan./Feb. 2005, at
32. |
| 414 |
New Note 18.
New studies show that many people who are completely unable to communicate
and who are outwardly unresponsive are actually mentally alert and aware.
There are approximately 100,000 to 300,000 individuals in the United States
who are bedridden, unable to communicate, unable to feed themselves, etc.
Caretakers often think these individuals are "out of it." In reality,
studies of brain activity reveal that when many of them listen to stories
from loved ones, their brain activity is similar to that of a totally health
and alert person.
So, you should
instruct your health care agent to be sure to "entertain you." Perhaps you
should leave a list of your favorite TV shows, movies, music, books, etc. so
that you will have some entertainment rather than being completely trapped
in your own mind in relatively total isolation.
See Benedict Carey,
Study
Finds Signs of Awareness in Brain-Damaged Patients, N.Y. Times, Feb.
8, 2005. |
| 440 |
Note that the Deficit Reduction
Act of 2005 extended the look-back period to 60 months. However, the 36
month look-back period will still be used until February 8, 2009 because
transfers made before February 8, 2006 continue to be evaluated under prior
law. Beginning February 2009, the look-back period will be extended by one
month as each month passes for the next two years. Thus, the five year
period will not actually take effect until February 2011.
In In re Keri, 853 A.2d
909 (N.J. 2004), the court recognized that Medicaid planning is not contrary
to public policy. |
| 448 |
Second paragraph, line 2.
The correct citation is 42 U.S.C. § 1396p(d)(4)(a). |
| 479 |
Add to the end of § B.
A relatively new estate planning technique is the
Physician Order for Life Sustaining Treatments (POLST). As described in
Julie Appleby,
Debate surrounds end-of-life expenses--Should treatment be provided,
regardless of cost or quality of life?, USA Today, Oct. 19, 2006, at
1B, 2B:
On the forms, patients can say whether
they want cardiopulmonary resuscitation, antibiotics or feeding tubes.
Conversely, they can specify that they want full treatment, including
breathing machines and feeding tubes. And for how long.
The forms differ from so-called
advance directives, which are also called living wills, which name someone
to speak on behalf of a patient and state patient wishes. Instead, the
forms are doctor's orders, similar to directions written into medical
charts, that are recognized and followed by medical personnel from
technicians on ambulances to staff at hospitals and nursing homes. * * *
The POLST forms in Oregon, which are
printed on bright pink paper and can be transmitted electronically by
hospitals and other medical providers, are "for the individual who is in
life's last chapter," she says.
Oregon was the first state to authorize
POLST documents. According to Julie Appleby,
Few states allow forms spelling out patients' wishes, USA Today,
Oct. 19, 2006, at 2B,
Washington
state and West Virginia, along with parts of New York and Wisconsin, have
similar programs. Advocates in a handful of other states, including
Hawaii, Utah, Florida and Nevada, are developing them.
|
| 491 |
Add to note 2. In
Gonzales v. Oregon, 126 S. Ct. 904 (2006), the United States Supreme Court affirmed the
Ninth Circuit's opinion by ruling that the Controlled Substances Act does
not grant authority to the United States Attorney General to prohibit
physicians from prescribing regulated drugs for patients to use to commit
physician-assisted suicide under the procedure sanctioned by Oregon law. |
| 491 |
Add to note 3. The number
of deaths by assisted suicide in Oregon in 2004 was 37 and 38 in 2005. |
| 527 |
Additional material for Note 3.
"A western Colorado coroner said Monday that two hospitals allowed vital
organs to be removed from a man before they had proved he was brain dead,
and he declared the death a homicide. The cause of * * * death was
'removal of [decedent's] internal organs by an organ recovery team.'"
Patient's Death Ruled a Homicide, San Antonio Express-News, Oct. 5,
2004, at 6A. |
| 529 |
Add to note 24.
"The 90,000 Americans now
on the national transplant waiting list are literally staring death in
the face. About 60% of them will die before they get one. The waiting
list has become a "waiting to die" list."
Lloyd Cohen and
David J. Undis,
Organ
Insurgents vs. Organ Bureaucrats, LewRockwell. com, Jan. 2, 2006.
Tens of
thousands of people are saved each year by organ transplants but about
60% of the recipients have not agreed to donate their own organs. In
other words, they are willing to take but not willing to give.
To remedy
the unfairness of this situation, the non-profit organization entitled
LifeSharers provides that
registered donors get the first choice of other registered donor's
organs. As described in David
J. Undis,
Put those willing to donate organs at top of recipients' list,
Tennessean.com, April 1, 2006:
LifeSharers members agree to donate their organs when they die, and
they direct that their organs be offered first to fellow members
before being offered to the general public. This is legal under
federal law and under the laws of all 50 states. By directing their
organs first to registered organ donors, LifeSharers members create
a powerful incentive for others to register as organ donors and join
the network. This incentive is the key to reducing the organ
shortage and saving lives.
|
|
531 |
New Note 36.
The Rose Parade held on January 1, 2005 featured two floats (The Donate Life
Float called "Many Families, One Gift" and Kodak's "Memory Lane" float
designed to promote organ and tissue donation. Do you think this type
of publicity will increase the number of donations? |
| 546 |
New Note 5.1.
LifeGem uses
a special process that can take several months to extract carbon from
cremation ashes which is then subjected to sufficient heat and pressure to
transform the carbon into a diamond. Family members may find great
comfort in owning these "family jewels." For example, one husband had
a diamond made from his wife set into his wedding bank. See Jim Suhr,
Ashes to Assets: Cremains Turned Into Diamonds, San Antonio
Express-News, Dec. 19, 2004, at 1AA. |
| 578 |
Add to the carryover paragraph.
On December 6, 2005, the
United States Court of Appeals for the District of Columbia Circuit
affirmed.
American Bar Association v. Federal Trade Commission, No.
04-5257. The court explained:
The Federal Trade Commission (“FTC”
or “the Commission”) appeals from an order of the District Court
granting summary judgment in consolidated cases brought by the
appellees American Bar Association and the New York State Bar
Association (collectively, “ABA” or “the Bar Associations”). The Bar
Associations sought a declaratory judgment that the FTC’s decision
that attorneys engaged in the practice of law are covered by the
Gramm-Leach-Bliley Act (“GLBA” or “the Act”) exceeded the statutory
authority of the Commission and was therefore invalid as a matter of
law. Because we agree with the District Court that the Commission’s
attempt to regulate the practice of law under the Act fell outside
its statutory authority, we affirm the judgment under review.
|
| 590 |
New Note 2.1. The average hourly fee for
trusts and estates work according to a survey of Illinois attorneys is
$182/hour. In rural areas, the average was $147/hour while in downtown
Chicago, the rate was $215/hour.
Virginia Grant, Highlights
of the 2004 ISBA Law Firm Economic Benchmarking Survey, 92
Ill. B.J. 624, 625-26 (2004). |
| 623 |
The last sentence of the
carryover paragraph should finish with the words, "husband and wife." |
| 640 |
New note 5. The ABA
Standing Committee on Ethics and Professional Responsibility issued
Formal Opinion 05-434
which address conflicts which may arise when an attorney represents several
members of the same family in estate planning matters.
The Opinion validates the
common practice of one lawyer representing several members of the same
family. The basis of this authorization is that the interests of the parties
may not be directly adverse and that more than conflicting economic
interests are needed before the attorney may not represent both.
The Opinion recognizes,
however, that current conflict of interest may result even without direct
adversity if there is a significant risk that representation of one client
will materially limit the representation of another.
Despite the “permission”
granted by this Opinion, I continue to think the representation of more than
one family member in estate planning matters is problematic. A potential
conflict may turn into a real conflict at a later time leaving the attorney
in an untenable position. It is simply not worth the risk. I believe it is
better for a lawyer to owe 100% of his or her duties to one and only one
family member. There will then never be doubt whom the attorney represents
or what actions the attorney should take if something “gets sticky,” True,
practitioners may lose some business and some clients may have higher legal
fees but I believe this is preferable to the alternative.
See also Eileen Libby, Beyond First Impressions,
ABA J., April 2005, at 24. |
| 773 |
With respect to first full
paragraph: The number of states which have repealed the Rule Against
Perpetuities as it applies to trusts now exceeds twenty. |
| 883 |
Add to note 3. In 2005,
Louisiana joined Indiana to become the second state to enact legislation
specially addressing the admissibility of a video recording of the will
execution ceremony. La. Code Civ. Proc. art. 2904. |
| 897 |
Add to § B(1) note. For an
extensive checklist, see SearchForCare.com,
Checklist After a Death. |
| 899 |
Add to § C(2)(b). Estate
planners recognize the importance of a client maintaining a comprehensive
inventory of assets such as bank accounts, insurance policies, stock
holdings, etc. so that the client's survivors will be able to locate these
assets. As discussed in Susan B. Shor,
Digital Property
and the Law of Inheritance, Tech News World, Feb. 22, 2005, it is
also important for a client to keep a comprehensive inventory of technology
information. Ms. Shor writes:
If a password list is part of your estate planning, a
number of issues will be alleviated. Create an inventory of URLs, Web
content, e-mail passwords and any other property an heir [or beneficiary]
will need access to.
Provided this list is kept in a secure location, such as a
safe deposit box, this appears to be an excellent idea. The list would also
need to be updated on a regular basis because computer users frequently
change passwords and user names as well as add or subtract from the types of
things kept or accessed electronically. |
| 907 |
New Notes section.
See Elizabeth J. Cohen, The Meaning of 'Forever,' ABA J., Nov. 2004,
at 28 (discussing recent ethics opinions ). |
| 930 |
The IRS issued a
new version of Form 706
in October 2006. |
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