Wisconsin Estate Planning and Tax Law Blog

Wisconsin We Have a Budget... For Now?

I have done my best to follow the Wisconsin Budget proceedings over the past four months.  "Technically" the budget was due on or before July 1st, but the State Legislature spent some 114 days debating the over $1 billion dollars in tax increases in Governor Doyle's proposed budget.  On October 23, 2007 the Wisconsin Legislature approved a two-year $57.2 billion budget.  Link: The Associated Press article by Scott Bauer, "Wis. Lawmakers Pass Long-Overdue Budget."  Governor Doyle signed the budget on October 26, 2007at the University of Wisconsin-Madison Memorial Union.  That would appear to bring this biannual budget saga to an end, but as the post by Matt Dolbey at WisPolitics Budget Blog titled, "Wisconsin Medical Society to sue once budget is published," shows this saga may just be getting started.  The Wisconsin Medical Society is taking aim at the portion of the budget that calls for a transfer or $200 million from the Patients Compensation Fund.  That may mean the budget will be tied up in court for six to nine months.  I will update this story in the coming months as things progress.

How much does a Will or a Revocable Trust cost?

This is probably the most commonly asked question during the first five minutes of any initial conversation I have with a potential estate planning client.  I believe it is a justified and important question to ask an attorney before deciding whether to work together.  However, the question is both difficult to answer and that answer can be difficult to appreciate in those early stages.  The reason it is difficult to answer is because five minutes is not near enough time to accurately determine the specific needs of a particular client that will need to be addressed in their estate plan.  Everyone's estate plan is different, which means each plan will require a different amount of work relative to the drafting and implementation of the plan.  This is the central reason that I am hesitant to answer this question with any specificity.  It is not because I want to hold out on discussing fees, but rather I just simply do not know what that specific estate plan requires at that time.  As my clients can attest, I always discuss fees during our first in-person meeting.  In fact, I always provide at the very least a narrow fee quote range.  In nearly all cases I quote a flat-fee that covers the comprehensive estate plan that I have recommended. 

Therefore, in practice I cannot and typically do not directly answer this question because the answer would not be sufficiently accurate based on the limited amount of information I have at that time.  I understand that some people do not like this answer and quite honestly I wish I did not have to give the typical lawyerly answer of "It Depends."  But in most cases I do have to say "It Depends" because it is in the client's and, admittedly, my best interest to explore the situation in greater detail before we all commit to a fee schedule.  I can assure you that the initial estate planning meeting is well worth the time and expense even if you do not ultimately decide to proceed after I make a recommendation and quote a fee.  In the initial estate planning meeting I provide an overview of estate planning, which serves as both an opportunity to learn about the process and to get you thinking about how you would like to plan your estate. 

Estate Planning for Vacation Homes, Part II

Soon after I published my planning for vacation homes post I came across this post by Bill Gratsch over at Blawg.com titled Finding a Niche: CottageLaw.com.  Mr. Gratsch's post discusses the work of Michigan Attorney Stuart Hollander who has developed a niche practice area involving planning for the family cottage.   Attorney Hollander's firm is located in Suttons Bay, Michigan and his website is www.cottagelaw.com.  The fact that Hollander and his firm can concentrate on such a narrow niche area of estate planning is evidence of just how involved and important the family cottage or vacation home is from a planning perspective.  The article and Attorney Hollander's site may be worth exploring for additional information on the topic of Vacation Homes, especially if you or your cottage are located in Michigan.    

Who do you want to get your "stuff" when you die?

The class of assets in one's estate that is often the cause of the majority of familial disputes is also often the least focal point of an overall estate plan.  This class of assets is what it referred to as tangible personal property.  Tangible personal property used to describe assets such as automobiles, collectibles, jewelry, household goods, etc.  Basically, it is all of your "stuff" that you can touch, feel and smell.  It does not include real property such as your home, cottage, or land.  It also does not include intangible personal property such as stocks, bonds, bank or brokerage accounts, etc.  The "stuff" in a person's estate can be the source of a large amount of family fighting if it is overlooked in an estate plan.

To eliminate any possible family strife in the future it is important to address the issue of tangible personal property in your comprehensive estate plan.  This is often accomplished in one of two ways.  The first way a testator (maker of the Will) or the grantor (maker of the Revocable Trust) can provide for the disposition of tangible personal property is through a specific bequest in the Will or Revocable Trust.  The specific bequest could be as simple as "I leave my baseball card collection to my son, James Fielder."  The second way is through the use of a tangible personal property list, which is incorporated by reference into the Will or Revocable Trust.  This method is authorize in Wisconsin by § 853.32, Wis. Stats.   The most recently signed and dated list will control the ultimate disposition of your property.  To complete the list you simply write the asset and who you would like to receive it.  For instance you entry on the tangible personal property list would read "My Wedding Ring" on the asset line and "My Daughter, Emma Braun" on the recipient line.  A tangible personal property list along with instructions is included in any estate plan that I write.

As I mentioned above, your "stuff" may not be at the front of your mind when you first think about updating or creating your estate plan, but it should not be overlooked in the process.  Just as the estate planning documents require occasional updating over the years, your tangible personal property wishes should be revisited from time to time as circumstances change.  As with much of the estate planning process, the time spent today will prove priceless when your loved ones are settling your estate in the future.