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Estate Planning With a Loved One Who Has Special Needs By utilizing a Special Needs Trust you can provide support for a relative or friend who has special needs without causing that person to become disqualified from receiving government benefits or having his or her benefits reduced. Individuals who qualify for government assistance, such as Medicaid and/or Supplemental Security Income (SSI), are evaluated each year to ensure they do not own over a certain dollar amount in assets which would make the him or her ineligible for those benefits. Depending on the program, the individual receiving assistance can be disqualified by merely owning over $1,000 to $2,000 in assets. Many special needs individuals require hundreds of thousands of dollars in annual medical care. Parents and other relatives who support special needs individuals must be certain they are making the right decisions about how they provide for their loved ones with special needs, and it can be confusing. For a family with a loved one requiring extensive medical attention to have any financial stability, it is important those with special needs become and remain eligible to receive Medicaid and other assistance. If no action is taken, an inheritance could pass to the special needs individual, which would cause that person to lose Medicaid, etc. By setting up a Third Party Grantor Special Needs Trust that is carefully drafted to comply with the Missouri Trust Code, you are able to provide additional support for your loved one with special needs without disqualifying that person from benefits. Contact us today to set up a consultation with an estate planning attorney to discuss a Special Needs Trust or to have your trust reviewed to make sure you are taking the proper steps for the future of your family. (417) 882-2828 | trecla@skslawfirm.com #estateplanning #springfieldmo

Going through a divorce can be stressful, and many people in this situation may not consider how divorce affects their estate plan. However, if your marriage is being dissolved, it is important that you do not wait to update your estate planning documents for a couple of reasons: If you wait to revise your estate planning documents and something were to happen to you resulting in your death or incapacitation, your ex-spouse might still be named in your documents which could result in unintended consequences, such as having minor children inherit property or not having someone named who can serve as your agent under a Power of Attorney. While many spousal rights terminate automatically upon a dissolution of marriage being finalized, you should still revise your Last Will and Testament, any Trust Agreements, and other estate planning documents to exclude your former spouse. Other steps that may need to be taken include: Revoking Powers of Attorney or Healthcare Powers of Attorney naming your spouse as your agent. Revising beneficiary designations to retirement plans, life insurance policies, etc. Revising pay on death (POD) and/or transfer on death (TOD) designations. Amending your estate planning documents to create trusts for minor children or educational trusts to provide for the children without your ex-spouse’s involvement, if something were to happen to you. When major life changes occur, call Schmidt, Kirby & Sullivan, P.C. (417-882-2828) for an appointment with one of our attorneys to review your estate plan and recommend the necessary revisions.

For parents of school-age children August means returning to earlier bedtimes, buying new clothes to replace the ones that are suddenly too small, and braving the “back-to-school” supply aisles. Perhaps for you this August also means taking steps to ensure you have named an appropriate guardian for your child in the event both parents die. WHAT IS A LEGAL GUARDIAN? A legal guardian is a person, other than a parent, who undertakes responsibility for the physical welfare of a minor child or disabled adult. A guardian has the authority to help meet essential daily living needs for food, clothing, and shelter, including making decisions about the child’s living arrangements and education. HOW DO I NAME A GUARDIAN FOR MY CHILD? In Missouri you can name a legal guardian for your child in your Last Will and Testament. Any individual (or couple) over the age of 18 can be named to serve as your child’s legal guardian. You can also include substitute appointments in the event one of the named guardians predeceases you or is unable or unwilling to serve. Should you change your mind at some point in the future about whom you would like to serve as your child’s guardian, your Will should be revisited. WHY SHOULD I NAME A GUARDIAN FOR MY CHILD? In the event of the death of both parents the court will determine the appropriate person to serve as your child’s legal guardian. If two or more persons petition the court to serve as a guardian, without a Last Will and Testament naming whom you would prefer to be guardian, the court lacks evidence as to who the parents believe is proper to serve as guardian and may not choose the person you, the parents, would. Back-to-school time brings activities, excitement, and responsibility for parents. This year it can also bring peace of mind if you choose this time to talk to one of our estate planning attorneys about preparing your Last Will and Testament and ensuring your child will be cared for by the person of your choosing in the event of your death. Please call us at (417) 882-2828 If you would like more information.

You’ve worked hard to build your business. But what happens to your business when you’re no longer around, whether that’s because of retirement, incapacitation, or death? It might be unpleasant to think about such things, but developing a plan to transition your company following your wishes doesn’t have to be a long, tedious process. Preparing for the Unexpected You maintain adequate insurance, you’ve managed to create a healthy cash flow to protect and nurture your business, you’ve reaped the benefits of successful marketing, and you’ve hired the right employees - all important steps in the daily operation of your business. But there are important simple steps you can take now to protect your family and your business in the face of unforeseen events such as medical emergencies, incapacity, or death. Those steps include estate planning and implementing some strategy into your business succession plan. Protecting Your Interest Your business may be the most valuable asset you own and needs to be covered as part of a comprehensive estate plan. Call Schmidt, Kirby & Sullivan, P.C. to speak with an attorney about drafting a Revocable Trust Agreement, the most versatile, comprehensive tool available for ensuring your assets are managed and distributed as you desire. Getting your business assets and other property into a trust allows a trustee of your choosing to handle these assets promptly as you set forth, rather than allowing the court system to dictate decisions concerning your business you have worked so hard to build. Implementing Strategy Into Your Plan Your inability to make decisions for your company may be temporary, such as being unreachable while on vacation or laid up in the hospital for a few weeks requiring surgery. Who will pay the business expenses to ensure your business continues to run smoothly while you are gone? Would someone be able to access company bank accounts to see that these payments are made? A key strategy to make sure you are covered in such situations is to identify and train a key employee to operate as your successor in your absence. Ideally, you would have such a plan in place before you open for business, but this may not be realistic. However, you do not want to wait too long to begin planning for unforeseeable events. These plans should be reviewed periodically and updated if needed. You may have partners in your business. It is important to discuss your business’s succession plan with your partners and come up with a plan in case one partner passes away unexpectedly. Our firm can take steps to ensure you have the proper business planning documents in place so that you’re covered for such an event. Such documents might include Buy-Sell Agreements, Shareholders’ Agreements, LLC Operating Agreements, etc. Buy-Sell Agreement A Buy-Sell Agreement is important when there are multiple owners of a company. Such an agreement will outline how the transition of ownership interest is to be handled in the event of your death, incapacity, or retirement. Get Started With Your Business Succession Planning Today Our attorneys at Schmidt, Kirby & Sullivan, P.C. can help you tackle the “what ifs” and “what happens if worse comes to worst.” You have worked hard to grow your business. Now take steps to make sure it is in good hands when the time comes that you are unable to be actively involved. Spending an hour or two with one of our attorneys, you will achieve peace of mind and gain a sense of security by developing a plan for the growth of your business into the next generation.

The end of May is a busy time filled with Memorial Day observances, end-of-school activities, graduations, and lake trips. May usually means you are spending extra time with those who mean the most to you. You can take advantage of this time to talk to your family about your estate planning wishes, including a General Durable Power of Attorney for financial purposes, which is an extremely important part of your estate plan, whether you’re 18 or 88. What is a General Durable Power of Attorney for Financial Purposes? A General Durable Power of Attorney for financial purposes is a document prepared for you (the principal) in which you name an individual or individuals (your attorney-in-fact) to act on your behalf concerning your financial matters in the event you are unable to do so for any reason during your life. A General Durable Power of Attorney for financial purposes can cover managing your financial accounts, insurance, buying and selling vehicles and property, and other actions related to your assets. Granting someone power of attorney doesn’t mean you give that person total control of your finances, but it does allow your attorney-in-fact to legally handle many financial tasks for you. In deciding who to name as attorney-in-fact, a spouse or adult child may be the appropriate individual to name. You should also name at least one alternate in the event the first named individual is unable to serve. The most important consideration is that whomever you name should be trustworthy and someone who will act wisely. An attorney-in-fact has a fiduciary obligation to make decisions that are in the best interests of the principal. A General Durable Power of Attorney ceases to be valid after your death, so it does not take the place of a Trust Agreement and/or Last Will and Testament. A person cannot execute a Durable Power of Attorney if he/she lacks the mental capacity and in many situations people do not recognize the need to have one until it is too late. So the time to talk to an attorney about your General Durable Power of Attorney for financial purposes is now. Please call us (417-882-2828) to discuss your need for a General Durable Power of Attorney for financial purposes and other estate planning documents.

Merriam-Webster’s legal dictionary defines “estate planning” as: “the arranging for the disposition and management of one's estate at death through the use of wills, trusts, insurance policies, and other devices.” Estate planning involves more than preparing a Will or deciding whether you need a Trust Agreement. Tackling estate planning without the assistance of an experienced estate planning attorney can lead to mistakes that affect your heirs and beneficiaries after your death. Here are a few of the mistakes we want to help our clients avoid: 1. BELIEVING A WILL AVOIDS THE NEED FOR PROBATE The probate process serves the purpose of providing documentation to satisfy various institutions holding a deceased person’s assets to ensure the institution relinquishes the property to the right person, and it gives creditors an opportunity to come forward with their claims. However, the probate process is costly (court costs and attorney’s fees) and a hassle for the deceased’s children or other heirs who have to navigate the process and deadlines prescribed by law before property can be legally distributed to those the decedent intended to receive it. The probate process can be avoided with careful estate planning. A Trust Agreement does not have to be complicated. It can be kept simple while still being the most flexible instrument to achieve estate planning goals. Nonprobate transfers can also be utilized, as discussed in our recent NonProbate Transfers blog post. 2. NAMING THE WRONG (OR THE SAME) PERSON IN ALL ESTATE PLANNING DOCUMENTS Whom you name to make your financial decisions is not necessarily whom you should name to communicate your healthcare decisions. The Trustee of your Trust should be someone you believe has the ability to manage your property after your death. Sometimes the best choice to fill that position is a Corporate Trustee, such as when the trust assets are significant or the trust estate is complicated. A Corporate Trustee can be named as a backup to an individual in the event the individual is unable or unwilling to serve when the time comes. On the other hand, the person you name in your healthcare power of attorney should be someone you feel has strong enough fortitude to do what you would desire under the circumstances. It is important to consider whether it is appropriate to name a certain family member, knowing that some loved ones might be too emotional to carry out your healthcare wishes, such as disconnecting tube feedings, artificial hydration, and/or nutrition. 3. NOT FUNDING A TRUST A perfectly drafted and executed Trust Agreement is not fully beneficial unless the Trust is properly funded. Assets owned by the creators of the Trust must be transferred into the Trust or otherwise titled in order to avoid probate. Some law firms simply advise clients that their Trust needs to be funded but do not assist them with any of the actual work of funding the Trust. Ensuring current and future assets are transferred or titled in the Trust is key; at Schmidt Kirby & Sullivan, P.C. we take this task seriously and have staff dedicated to assisting our clients with all necessary transfer work. If you have questions about any of this information or would like help in starting your own estate planning process, please contact Schmidt, Kirby & Sullivan, P.C. at (417) 882-2828. #estateplanning

One of the most common statements I hear from young parents and professionals is that they just don’t own enough property or have the assets to justify spending the money to do any estate planning. I often hear, “I do want to get some estate planning in place, but I’m just not there yet.” In reality, everyone, whether married or single, wealthy or not, has the need for at least a simple will, powers of attorney, and assistance in utilizing nonprobate transfer laws to avoid probate. Many of us struggle with facing our own mortality. However, ignoring estate planning until you’re older or own more assets is costly to your loved ones and can cause you unneeded stress and worry now. The untimely death of celebrity Luke Perry reminds us that our life can change quickly and it’s never too early to make sure our estate plan is in place. Sources report that because Luke Perry did appear to have an estate plan in place, there was no prolonged battle over removing him from life support and his children are taken care of financially. In the event of your untimely death, not having the appropriate documents in place will be more costly to your loved ones than the expense of working with an estate planning attorney now. For example, many families are headed by unmarried couples today. If you are unmarried and you own your home or other real property in your individual name, without the benefit of a will, those assets would transfer to your heirs-at-law upon your death. In Missouri that means the property would pass to your children. If your children are too young to own property at the time of your death, a court action would be required to appoint a conservator to hold and manage that property until your children are old enough to receive it. That conservator may or may not be the person you would have chosen had you died with a will. Some day you might need a more elaborate estate plan. But before you say, “I’m not there yet,” give us a call at (417) 882-2828 to discuss how we can help you protect your assets in the meantime.

One of the biggest misconceptions about estate planning law is that having a Will avoids the need for probate at the time of your death. When your assets pass to others through a Will, it involves the probate process. There are fees and court costs associated with having to probate property you own upon your death, which reduces the value of the assets your children or loved ones will inherit. In addition, probate can be a complicated and lengthy process, sometimes taking over a year to complete. For instance, if you currently own your residence in your individual name or your and your spouse’s names, upon your death or the death of you and your spouse, your residence would not pass to your children or whomever you wish to receive it without going through probate court, even if you have a Will. Missouri has some of the best nonprobate transfer laws in the nation. By utilizing Missouri’s nonprobate transfer laws, we can help you avoid a lengthy probate process and help you leave your property to those you wish. Call us today to set up a time to discuss how utilizing nonprobate transfer laws could benefit you and avoid the need to probate your residence, real property, financial accounts, vehicles, and other assets. While nonprobate transfers are a good way to avoid the difficulties of probate, they are not a substitute for a comprehensive estate plan. Nonprobate transfers are just one way we can help you achieve your estate planning goals. #estateplanning