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58 Additional material for subsection h:  The number of states which have repealed the Rule Against Perpetuities as it applies to trusts now exceeds twenty.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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