Pennsylvania Trusts and Estates Blog

Where do you live? It depends.

Domicile is "the place where a man has his true, fixed and permanent home and principal establishment, to which whenever he is absent he has the intention of returning". A person can have only one domicile, no matter how many residences he owns.

Your state of domicile determines (1) to which state you pay state income taxes, (2) where your will is probated and where your estate will be administered (3) to which state your estate pays inheritance and estate taxes and (4) which state's laws govern the enforcement of judicial orders.

The state of domicile also determines spousal rights in property. Most of the states, like Pennsylvania, are common law states. Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin are community property states. A move to any of these states requires special planning.

It is very possible for more than one state to claim that you are a domiciliary. When this happens all of the states that have claims can assess income tax and inheritance or estate tax. Some states are parties to agreements to resolve these issues as they affect death taxes, but many are not. The battle over Howard Hughes' estate went on for years, with Texas, Nevada and California all claiming him as a domiciliary. In perhaps the most famous estate tax domicile case, the estate of Mr. Dorrance, the founder of Campbell's Soup Company, was taxed by both Pennsylvania and New Jersey, in each case as if he was domiciled there. Each of Pennsylvania and New Jersey collected about $17 million. The U.S. Supreme Court upheld this result.

Since domicile depends on where you intend to return, it is a subjective concept. Nevertheless, many objective actions can give indications of your intention. There are lists available for actions that should be taken to give evidence of your intention to change your domicile. You don't have to do everything on the list. None of these things, except the requirement for physical presence in the new domicile, are absolute requirements. However, you have to do enough of them, especially the more significant ones, to convince the tax authorities that you have truly moved your domicile. Here are some actions that show intention to change domicile:

• Buy or lease property in the new domicile state, furnish it as a permanent residence, not a vacation place.
• Spend more than 183 days per year in the new state - this is the most important requirement. In some states this is an ironclad rule for tax purposes. For example, if you maintain a residence in New York and spend more than 183 days per year there, New York considers you a resident for tax purposes regardless of your intentions.
• Obtain a driver's license in the new state.
• Register your cars in the new state.
• Register to vote in the new state, and vote.
• Go to doctors, dentists, lawyers and other professionals in the new state and have your records moved from the old state to professionals in the new state.
• File your federal income tax return with the appropriate IRS service center and show your new state as your address.
• File a Declaration of Domicile if your new state has such a procedure.
• Move bank accounts and safe deposit boxes to the new state.
• Send notifications of a change of address to family, friends, business associates, professional organizations, credit card companies, brokers, and insurance companies
• Use the new state as a home base. When you travel, leave from and return to the new state.
• Keep your family heirlooms, furniture and keepsakes in the new state.
• Change legal documents to reflect residency in the new state.
• Update your estate plan and have your estate planning documents identify you as a resident of the new state.
• Join organizations such as clubs, religious groups and become active with local charities in the new state.
• Apply for a homestead in the new state if applicable.

Not only must you adopt a new domicile, but your old domicile must be abandoned. In your former state of domicile:

• Have your name removed from the voter registration list.
• Turn in your driver's license.
• Pay income tax as a non-resident if applicable.
• Mark your last state income tax return "FINAL" and use the new state's address.
• Spend as little time in the old state as possible.
• Close accounts in the old state.
• Change all club membership, religious and social affiliations to "non-resident" status.

Timing of the change in domicile can be important. If you sell your business or your home in the old state, where you are domiciled at the time of the sale can impact how the gains are taxed. If you are creating trusts, the "resident state" of the trust will often depend on your domicile at the time you create the trust. This means a trust could remain taxable in the old state even though you move your domicile to the new state.

If you stop filing taxes in your old state, this doesn't mean that they have no claim on you. Remember that if you don't file a return for a year, the statute of limitations never starts running. There is no limit to the number of years they can go back and assess tax. Consider filing a non-resident return.

Be consistent. If you want to be a Floridian to escape Pennsylvania income tax, don't register your car in Pennsylvania to get lower insurance rates. Use common sense. Does your neighbor who has lived in Florida all her life have her car registered in Pennsylvania? Of course not. Does she belong to a church or synagogue in Pennsylvania? No. Just imagine yourself explaining that to a tax auditor.

In this age of photocopies, e-mail, faxes, word-processing and pdfs, a signed original may seem old-fashioned. But sometimes you actually need an original signed document with a real signature. An original will is very important.

There is always only one original will. If you sit down at a table and sign 5 wills, only the last one you signed is your will. Making a new will automatically revokes all prior wills.

It is common practice to make photocopies of the executed will. Can you probate the copies if you can't find the original? It depends.

There is a conflict between the policy of the law to carry out the decedent's wishes as expressed in a will and, on the other hand, to protect against fraud. Since the person who made the will is no longer alive and cannot tell us what happened to the will and whether or not he or she destroyed it; the law takes special precautions.

When a will cannot be found, a presumption arises. A presumption is a rule of law by which finding of a basic fact gives rise to existence of presumed fact, until the presumption is rebutted. In the case of a missing will, the known fact is that the will is missing, which gives rise to the presumption that it was destroyed with the intention of revoking it. In order to have a copy of a will probated, therefore, the proponent of the will must adduce evidence to overcome that presumption.

To overcome the presumption, evidence must show that (1) someone other than the testator destroyed the will, (2) the decedent did not have access to it and, therefore, could not have destroyed it, or (3) that the decedent made statements up until the time of death that he had a will. The proponent of the copy of the will must also prove by the testimony of two witnesses that the will was executed by the decedent when he or she had testamentary capacity, a diligent search did not turn up the will, and the contents of the lost will are as presented in the copy. Providing actual proof of any of these circumstances can be very difficult and often impossible.

Since the original will is so important, where should you keep it?

I recommend keeping your will in a safe deposit box at your bank so long as no one has access to the box who could benefit by the destruction of the will. I recommend that you drive immediately from the lawyer's office to the bank to put your freshly signed will into your safe deposit box.

In Pennsylvania, a decedent's safe deposit box can be searched, in the presence of two bank officers, for a will. A will and cemetery deed can be removed. This is so even if no one else's name is "on the box," meaning that no one is designated as deputy or attorney-in-fact on the card maintained by the bank. Also, when the box is searched after death, an original will can only be turned over to the named executor, which provides some additional safeguards.

For clients who do not have a safe deposit box and do not wish to rent one, the will can be kept with other important papers at home. Most folks in this category have a safe, strong-box, or "fire-proof" box. I always caution folks that there is no such thing as "fire-proof" - these boxes are fire-rated to withstand high temperatures for a given period of time, say one or two hours, and this is often inadequate for a fire which stays hot long after it appears to be "out." These boxes are nice little ovens.

If the will names a bank or trust company as executor and/or trustee, often the bank will offer safe-keeping services and hold the original document. This is also a good solution to the problem of where to keep the original will.

Some folks let the lawyer who wrote the will hold it in "safe-keeping" for them. This is usually a service provided by law firms at no charge. Sometimes the law firm's motivation for offering the safe-keeping service is to make sure that the family has to come to that law firm to retrieve the original will and, thus, that firm gets first crack at the business of settling the estate. In fact, some lawyers just assume that is the case, taking over the estate settlement, and the executor and family members don't even realize that they have a choice.

Whatever the law firm's motivation for offering to hold your will, this could provide the needed safety. It is a good option so long as the executor and family members understand that the will is being held in safe-keeping and that the executor is free to interview other law firms and make an informed decision about what lawyer or law firm is going to be attorney for the estate. This gives the executor the opportunity to compare fees and the expertise of other lawyers before making a decision.

It is not flesh and blood but the heart which makes us fathers and sons.
-Schiller

When a person dies intestate, that is, without a will; the law determines who are that person's heirs. The general rule for an adopted child is that the adoption severs the parent-child relationship between the adopted child and his or her natural parents including severance of all inheritance rights.

Thus, under Pennsylvania law, for purposes of inheritance by, from and through an adopted person, the adopted person is considered as a natural child of his or her adopting parents; and an adopted child is not considered to be a child of his or her natural parents. Pennsylvania provides a limited exception to this rule. A child who has been adopted may inherit from his or hernatural kin (but not natural parents) when the natural kin has maintained a family relationship with the adopted person. The comment to the statute when it was enacted says that "[t]he exception recognizes that family relationships frequently continue for grandparents and others where an adoption may have occurred after the death or divorce of a parent."

Here is an example: John and Katie are married and have a son, Buddy. John dies. Katie remarries. Her new husband, George, adopts Buddy. John's parents, Buddy's natural grandparents, are very much involved in his life, are frequent visitors and maintain a family relationship with Buddy. Under the Pennsylvania Statute, if John's parents die intestate, Buddy, even though adopted, would inherit from them.

What about step children? If they are not adopted, they do not inherit from their parent's spouse. This can create some unfortunate results. Let's say Amy has a child, Josh. Amy marries David who is not Amy's natural father. They live together as a family for years, but David never adopts Josh. That means that Josh is not Dave's heir. If David dies without a will, Josh has no rights to Dave's estate as an heir.

In these days of blended families, where the children can be yours, mine, and ours, it is extremely important that parents make wills that spell out the rights of their children. It can completely destroy a family if only some of the children in a household inherit and others are cut out because of these rules of inheritance.

What if a will or trust directs distribution to a person's children. Does that include adopted children? In construing a will making a devise or bequest to a person described by relationship and not by name (e.g. "my children" or "John's issue"), any adopted person shall be considered the child of his adopting parent or parents. In construing the will of a testator who is not the adopting parent, an adopted person shall be considered the child of his adopting parent or parents only if the adoption occurred during the adopted person's minority or if an earlier parent-child relationship existed during the child's minority.

Why the age limit? You can adopt and be adopted at any age. Mrs. Dowager left a will providing for distribution to her children and grandchildren. Mrs. Dowager's 65 year old son, Libertine, is unmarried and has no children. However, he has a lady friend, Floozy age 45. Libertine adopts Floozy. If Libertine dies, Floozy is Mrs. Dowager's grandchild by adoption. However, since the statutory rule of interpretation provides that in interpreting Mrs. Dowager's will, an adoption has to occur during a person's minority (under age 18) to be given effect, Floozy would not inherit any part of Mrs. Dowagers' estate. (And that's probably the way Mrs. Dowager would have wanted it.)

Many loans among family members are interest free. Be careful. If you loan money to a relative or friend, there may be income and/or gift tax consequences if there is no interest or if the interest is below the market rate.

For loans of $10,000 or less, you don't have to worry about any of this. Such a loan may carry little or no interest, and there are no income tax consequences or reporting requirements.

For loans of $10,001 to $100,000 (all loans between the borrower and lender are added together for this threshold), the forgone interest to be included in income by the lender and deducted by the borrower is limited to the amount of the borrower's net investment income for the year. If the borrower's net investment income is less than $1,000, it is deemed to be zero.

What does the borrower's net investment income have to do with it? One of the purposes of these rules is to prevent taxpayers from shifting income to kids or other family members who are in lower tax brackets. For example, Dad loans his 19 year old Son $100,000. Son invests it, receives interest, dividends, and capital gain income which Son reports on his own 1040 and pays no income tax. Then Son repays the $100,000 to Dad. The effect of this has been (1) Dad has made a gift to Son of the income and (2) the income has been taxed at lower brackets, in fact, at zero.

If, on the other hand, Dad lends Son $100,000 to buy a house, or to pay for college, and Son uses the loan proceeds for the intended purpose, then there has been no income-shifting. No income is being generated by the loaned funds. Interest will be imputed to this type of gift loan only to the extent that the son has investment income.

The IRS publishes applicable federal rates (AFRs) monthly. There are interest rates for short, mid, and long-term loans. Short-term rates are for demand loans and term loans of 3 years or less; mid-term is for 3-9 years; and long-term is over 9 years. For example, the short-term AFRs for January 2010 are short-term 0.57%, mid-term 2.45%, and long-term 4.11%.

For demand loans, the difference between the interest calculated using the stated rate and the applicable federal rate is generally treated as income to the lender and a gift from the lender to the borrower on December 31 of each year that the loan is outstanding. A demand loan is payable in full at any time on the lender's demand.

For term loans, a lender who makes a below market rate (BMR) loan is treated as having made a gift of the difference between the amount of the loan and the present value of all the scheduled payments, using the applicable federal rate on the date the loan is made. When making a term loan it is usually best to state an interest rate. The Lender may forgive interest payments as they come due. The forgiveness of the interest is a gift and the lender must, nevertheless, include the amount of the interest in income.

The Lender can forgive $13,000 of interest and principal payments using the annual gift tax exclusion. If the loan is from a married couple to a married couple, maybe Mom and Dad to Son and Daughter-in-law, up to $52,000 (4 x $13,000) in interest and principal payments could be forgiven each year with no gift tax consequences. Mom and Dad have interest income to report on their 1040. Son and Daughter-in-law are treated as having paid interest. If the loan was used by Son and Daughter-in-law to buy a home, and if the loan is secured by a mortgage on the home, the interest will be deductible for them as interest on their primary residence mortgage.

For any of these arrangements, make sure the terms are in writing. This accomplishes two things: (1) the terms of the arrangements are clear to the lender, the borrower, and other family members and (2) the loan documentation can stop the IRS from claiming that the transfer of cash was a gift. This is very important. Without written documentation that the transfer is a loan, the IRS can argue that there was no loan at all; it was just a gift. Plus, if the borrower can't make good on the loan, you would need to have this documentation in order to deduct it as a non-business bad debt.

Undocumented loans can become particularly contentious when the lender dies. Documentation establishes whether the loan is to be repaid to the estate or was a lifetime gift. Many times, a family lender, especially to children or grandchildren, does not expect a loan to be repaid after the lender's death. If this is so, it is necessary for the lender to state in his or her will that the balance of principal and accrued interest on the loan is forgiven. Otherwise, the loan will have to be repaid, or will be a set-off against the borrower's distributive share of the estate. Simple documentation can avoid this set-up for a sibling fight and the expense and time that usually ensues.

So you're getting married? Did you invite the IRS to the wedding? On the list of things to do from hiring the hall, choosing the caterer, and mailing the invitations, don't forget a visit to your tax advisor.

The first thing you will learn about is the marriage penalty. The marriage penalty is a holdover from an earlier era when single income families were the norm. Since the tax code was written to tax household income instead of individual income; a married couple, both with similar earnings, pays more tax than the total tax of two single taxpayers with the same incomes as the married couple. This higher tax is what is referred to as the "marriage penalty."

The penalty manifests in two ways: 1) the standard deduction for a married filing jointly return is less than twice the single standard deduction; and 2) the combined income can push the couple higher into the tax brackets. Often the first tax return a couple files after marriage results in a big tax due because of under-withholding or underpayment of estimates. Even if you get married on the last day of the year, for tax purposes you are considered married for the entire year.

The marriage penalty does not apply to all married couples, it depends on the husband's and wife's respective incomes. Tax laws in more recent years have actually eliminated the marriage penalty for tax payers in lower tax brackets. So here's the good news: there's no marriage penalty built into the tax rate schedules in the 10% and 15% tax brackets.

Having decided to combine their lives, newly weds now combine their income. The decision as how to report this combined income on tax returns should be a topic of discussion with the tax advisor. Many credits and deductions are based on the total income reported on the return. When two taxpayers get married, their combined income may now be too high for certain tax credits. For example, a single mom qualifies for the Earned Income Credit. She marries a man making a good salary, and now their combined income on a joint return is too high for the Earned Income Credit.

Worse, the woman has a low amount withheld on her earnings because she expects to get the Earned Income Credit. After the marriage, she finds out the amount withheld is not enough to cover her share of the tax.

A single person can deduct up to $3,000 in excess capital losses against ordinary income, but the amount doesn't double to $6,000 for a married couple - it remains $3,000.

A single person who actively participates in renting out real estate can deduct up to $25,000 of losses against his or her earned income if his or her modified adjusted gross income is $100,000 or less. This deduction is the same for a married couple as it is for a single person.

While filing a joint return results in a lower tax for most couples, they don't have to file joint returns. They can file as "married filing separately." Married filing separately is not like filing two single returns. In our example, the earned income credit can't be claimed at all on a married filing separate return. Some other credits and deductions , such as the Child and Dependent Care deductions, American Opportunity and Lifetime Learning credits, the student loan interest deduction and the up to $25,000 of rental real estate losses are not allowed on a married filing separate return.

On the plus side, newly married couples may have increased limits for tax-deductible IRA contributions. If the couple's income meets certain limits, they could qualify for more of a deduction. In some scenarios, one spouse also may "borrow" from the other's earnings to meet the limits.

Likewise, if a spouse claims medical expenses or other itemized deductions that are limited by their adjusted gross income, filing separately may be the way to go because the single income produces a lower limit. However, if the spouse wants to claim credits or deduct his or her IRA contribution, the couple probably needs to file jointly.

Sometimes only after the wedding, you find our that your spouse has debts, back child support, defaulted student loans, unpaid income taxes, you name it. All of these things can be offset against taxpayer refunds. You might find your tax refunded scooped to pay your spouse's debts. This can be a nasty surprise. There is a procedure, the Injured Spouse Allocation, whereby the debt-free spouse can get his or her share of the refund, but it takes months to actually get the money.

Everyone's situation is different, so it is important to consult with a tax professional before making any important decisions, especially the decision to marry.

The income tax, property tax, estate tax and asset protection planning advantages of Florida domicile make Florida the ideal place to live, whether you are still working or are retired. Florida obviously wants to be considered a tax-favorable haven for its residents and wants to attract new residents - both retirees and working people.

Florida's homestead exemption which provides an exemption from a forced sale is among the most protective in the United States. It provides no limit to the value of homestead real property that can be protected from creditors. This is how O. J. Simpson can own an expensive home in Florida despite a huge unpaid civil judgment against him. Various World.com and Enron executives bought lavish homes in Florida.

Florida has no individual income tax. (It does have a corporate income tax.) Florida has no estate or inheritance tax. (Since the Florida estate tax "picks up the federal state death tax credit and that credit has been eliminated from the federal estate tax; Florida estate tax is zero. Unless there is a change, the state death tax credit and Florida's estate tax will be back. in 2010.) It has a 6% state sales tax. Some counties charge an additional sales tax.

Florida did have an intangibles tax but that was repealed in 2006. The intangibles tax applied to stocks, bonds (excluding Florida municipal bonds), mutual funds, and notes receivable. Retirement accounts, life insurance or annuities were exempt. The rate was .5 mills, and there was a $250,000 exemption per resident. ($500,000 per couple).

In 2007 the Florida legislature passed a Reform Bill that proposed to create a new "super-homestead" exemption. After a legal battle, a Constitutional Amendment appeared on the ballot to increase the exemption from the tax and "portability" of the Save Our Homes exemption. The amendment passed on January 29, 2008. This tax savings is available only to Florida residents.

The Amendment increases the homestead exemption from $25,000 to 50,000 but only for taxes other than school taxes and just for homes valued at more than $50,000.

Since 1995, Florida has had a property tax law that capped the increase in assessment value of residents' property at 3% per year. The actual value of the properties often far outstripped the 3% per year growth. The gap between the assessed value and the actual fair market value of the home is called the Save-Our-Homes (SOH) differential. Many residents fear moving from their homes because they don't want to lose the tax advantage of paying taxes on their much lower assessed value. The new constitutional amendment allows up to $500,000 of value from the gap between the assessed amount and the fair market value to be applied towards the tax base of .any new home purchased in Florida within two years. In other words, the SOH differential is "portable." This benefit is available only to residents.

For snowbirds who have a principal residence in a northern state and also a home in Florida, the new Florida Constitutional Amendment may be bad news. Not only do they not qualify for the 3% cap or the portable SOH benefit, but the gap in the real estate taxes they are paying compared to their homesteaded neighbor is likely to increase. The taxing authorities whose budgets are reduced because of the new tax breaks for homesteaders will need revenue. A likely source is to increase the tax rate on non-residents. This will probably lead to more northerners deciding to change their domicile to Florida.

In the meantime, what is the State of Florida doing for revenue? Reduction of property taxes benefits homeowners, but hurts education. Empty-nesters are moving in, but families are moving out. Instead of an anticipated increase of 30,000 pupils, the state has seen virtually no increase. Non-residents can pay twice the property tax of their resident neighbor with the same house. Attorney Jerome Lanning of Birmingham, Alabama, is suing to seek relief from the disparity, and when the case reaches the U.S. Supreme Court, things might well change.

Writing your will is not a do-it-yourself project. Words are important. The words that are not in your will can be as important as those that are. That is one of the reasons you should not try to write your own will. Even pre-printed forms and computer programs can lead to problems. Take the case of Mr. Tate, recently decided in Somerset County.

Mr. Tate dies leaving an estate consisting of $700 in household goods. He also owned certificates of deposit, a checking account, money market account, life insurance policy dividend and cable refund with a total value of $39,300.

Mr. Tate died leaving a will that was apparently prepared by a local notary (practicing law without a license) who used a pre-printed form and filled in the blanks. Mr. Tate's will said: "I give, devise and bequeath all my personal property, jewelry and furniture, to my niece, Valarie Nichols." . . . "I give, devise and bequeath all the remainder of my estate, which I may own at the time of my death or to which I may thereafter become entitled, to my friend, Janet Geisel."

So what's the problem? The question is who gets the $39,300 - Valarie Nichols or Janet Geisel? Why is this a question? Because personal property, as understood in the law, means any kind of property other than real property. Thus, bank accounts, certificates of deposit and other cash items are personal property.

The will says all personal property goes to niece Valerie Nichols - which would mean she would get all of the assets - bank accounts, certificates of deposit, etc. Janet Geisel, the other beneficiary disagreed. She said that since the decedent had no real estate she would get nothing and that what the decedent meant was tangible personal property should go to niece Valarie and everything else should go to friend Janet.

Had the will included one more word, "tangible," there would have been no dispute. "Tangible personal property" is a well defined class of property under the law.

The first point I want to make is that if there has to be a lawsuit over a $39,000 estate, how much do you think is going to be left for any beneficiary? If writing your own will means you need a court to interpret what you meant, you have made a serious mistake.

What do you think? What did Mr. Tate intend? And how do we know? We can't ask him.

In this case, the court applied a doctrine of construction called "ejusdem generis" to reach its holding. "Ejusdem generis" is Latin for "of the same kind." As applied to Mr. Tate's will, this phrase means that "where general words follow enumerations of particular classes or persons or things, the general words shall be construed as applicable only to persons or things of the same general nature or kind as those enumerated." In other words, since the will said "all my personal property, jewelry and furniture" the general words "personal property" should be interpreted to mean property of the same type as jewelry and furniture.

So Janet Geisel gets the $39,300. . . . minus the costs of the lawsuit. It reminds me of the plumbers fees: $50 per hour; $75 per hour if you help; $100 per hour if you try to fix it yourself first. This is only one of innumerable such stories. In my experience, almost every self-written will contains at least one ambiguity or problem that must be interpreted (by a judge) when the estate is being administered.

Have you ever noticed that wills written by attorneys are often much longer than those from "kits?" That is because the attorney adds many clauses and definitions that are added to clarify and protect the testator's intent. Do-it-yourselfers are usually thinking about what they want to put into a will and are not focused on important words, phrases, and clauses they may be omitting.

Moral of the story: Writing wills is not for amateurs. You may think you are being clear, covering all the possibilities, and complying with all the legal requirements. And maybe you are - but there is no way you can know for sure that what you have written will accomplish what you want or create a dispute.

Let's take a boat to Bermuda
Let's take a plane to Saint Paul.
Let's take a kayak to Quincy or Nyack,
Let's get away from it all.
- lyrics by Tom Adair and Matt Dennis

Do you have a house at the shore? A condo in ski country? Time share in Florida? In just how many states do you own real estate?

Every state in which you own real estate will be involved in the settlement of your estate unless you arrange your estate plan to avoid this complication.

Real estate law is state law. Only the courts of a particular state have authority to resolve issues about title and ownership of real property located in that state. If you are a resident of Pennsylvania when you die and own a condo in Florida, settlement of your estate will require a domiciliary probate in your county of residence in Pennsylvania and an "ancillary probate" in Florida. An ancillary probate is required in each state where real property is owned in the name of the decedent.

Not only are there probate proceedings required in the other states, but there can be inheritance and estate tax due to those other states as well. That's a lot of probates, a lot of fees, and a lot of lawyers.

The first thing your estate plan should do is eliminate the need for these probate proceedings in various states. The simplest way to do this is titling real estate in other states in joint names - first with a spouse, and then with intended beneficiaries such as children. This simple device means that the real property will pass to the surviving joint owners on your death, and no probate proceeding is required. Changing the title to include joint owners requires the preparation and recording of a new deed. It may also require the consent of a mortgagee if there is a mortgage on the property. While this is a simple procedure, there are downsides to joint ownership. Any sale, mortgage, lease or other transaction involving the property requires the unanimous consent of all owners and a joint tenant's interest is exposed to claims of his or her creditors.

Another solution is to transfer title of out-of-state real estate to a revocable trust. The title to the shore home is then held by a Trustee, not by the individual. When the individual dies, the trust continues; and there is no need for a probate since the owner did not die (the trust lives on). No title question will arise. This technique has the added benefit of retaining complete control of the property in the hands of the creator of the trust.

Sometimes these properties are transferred to entities like corporations, limited liability companies and partnerships. Again, since the decedent did not hold the title to the real estate, but rather, the entity which has a continuing existence held the real estate, there is no need for an ancillary probate.

Most of these techniques do not remove the property from the taxing jurisdiction of the state where the real estate is located. Your executor can expect to file state death tax returns and perhaps pay tax in these other states.

There is a special federal estate tax planning technique available for residences which can be used for the primary residence and/or a secondary residence. It is a Qualified Personal Residence Trust ("QPRT"). In addition to solving the ancillary probate problem, and possibly addressing the sharing of the residence by the family after Mom and Dad are gone, this technique also offers substantial estate tax savings. A QPRT is an irrevocable trust which provides for the occupancy of the residence by Mom or Dad for a period of years. At the end of the term, Mom and Dad's right of occupancy ends and the beneficiaries become the new owners. When the trust is created, a gift is made; but the value of the gift is steeply discounted - hence the estate tax savings.

What if your get-away place is an island villa in Kokomo, Antigua, or a pied-a-terr in Paris? You'll need to consider the foreign county's probate and estate tax systems in your estate plan. Your attorney will need to work with counsel in the foreign jurisdiction to co-ordinate an estate plan that will include that property too.

What, in the end, do we leave behind? Money? A house? Investments? All these are but fleeting and will come to nought. The only thing that lasts is the wisdom of a life - values, beliefs, lessons learned from life, dreams, and hopes for future generations. These things should be left to your children too - in an ethical will.

We all want to be remembered. And surely we will be, whether we leave a writing behind or not. Yet what will be remembered and for how long? How often do you search your memory for some saying of your grandfather's? Or try to remember how your Uncle described his experience in the coal mines? Or in World War II? Don't you wish you could read their words and tell their stories to your own children and grandchildren?

Psychologists point out that writing down your values also helps you to clarify them. It helps you to focus on what you value the most, how to cultivate it and preserve it for future generations. You learn a lot about yourself when you write an ethical will. You must subject you life to self-examination and face up to failures as well as successes. As Rabbi Rammer, editor of So That Your Values Live On puts it: "I have learned that ethical wills have the power to make people confront the ultimate choices that they must make in their lives. They can make people who are usually too preoccupied with earning a living stop and consider what they are living for."

While ethical wills have gained wide popularity in recent years, they were originally a Jewish tradition, with roots in early Biblical times. Recall Moses' address to the people before he died; Joseph's blessings of his sons where he described their respective characters and their futures; and King David's prayers for his son. Perhaps the most famous of ancient ethical wills is Moshe Nachmanides' (Ramban's) letter to his son called Letter for the Ages. There is also the letter of the Vilna Gaon written at age 27 giving his wife and mother instructions for the education of the children.

How do you go about writing an ethical will yourself? There are many useful books on the subject. One of the best known volumes is Ethical Wills: Putting Your Values on Paper by Barry K. Baines. The author is a physician and hospice director. Baines defines an ethical will as "a vehicle for clarifying and communicating the meaning in our lives to our families and communities." Baines discusses the history of the practice of leaving an ethical will, its enormous benefits to the dying and to their families, and how to make them.

Other resources are So That Your Values Live on: Ethical Wills and How to Prepare Them by Jack Rammer and Nathaniel Stampfer, and Women's Lives, Women's Legacies: Passing Your Beliefs and Blessings to Future Generations: Creating Your Own Spiritual-Ethical Will, by Rachael Freed.

Some legal scholars have objected to calling such a personal statement a "will" lest it confuse people and they think they do not need to write a real will which disposes of their property. Instead, some refer to it as a "Personal Legacy Statement," but the term "Ethical Will" seems to have stuck.

Here's a partial list of common themes seen in more modern ethical wills which are listed at www.ethicalwill.com: Important personal values and beliefs, important spiritual values, hopes and blessings for future generations, life's lessons, love, forgiving others and asking for forgiveness.

Humorist Sam Levenson wrote an "Ethical Will and Testament to His Grandchildren and to Children Everywhere". Here it is as reprinted in So That Your Values Live on: Ethical Wills and How to Prepare Them by Jack Rammer and Nathaniel Stampfer:

I leave you my unpaid debts. They are my greatest assets. Everything I own -- I owe:

1. To America I owe a debt for the opportunity it gave me to be free and to be me.
2. To my parents I owe America. They gave it to me, and I leave it to you. Take good care of it.
3. To the biblical tradition I owe the belief that man does not live by bread alone, nor does he live alone at all. This is also the democratic tradition. Preserve it.
4. To the 6 million of my people and to the 30 million other humans who died because of man's inhumanity to man, I owe a vow that it must never happen again.
5. I leave you not everything I never had, but everything I had in my lifetime: a good family, respect for learning, compassion for my fellow man, and some four-letter words for all occasions: words like help, give, care, feel, and love.
Love, my dear grandchildren, is easier to recommend than to define. I can tell you only that like those who came before you, you will surely know when love ain't; you will also know when mercy ain't and brotherhood ain't.
The millennium will come when all the ain'ts shall become ises and all the ises shall be for all, even for those you don't like.
Finally, I leave you the years I should like to have lived so that I might possibly see whether your generation will bring more love and peace to the world than ours did. I not only hope that you will. I pray that you will.

An ethical will may be the most cherished and meaningful gift you can give to your family.

We read a lot about Social Security, Medicare and Medicaid, but what about Veterans' Benefits?

In addition to Disability Compensation for service-related disabilities, there is also a Disability Pension for non-service related disabilities. There are three levels of pension benefits:

1. Basic - Disabled Veteran unable to work
2. Housebound Disabled Veteran or surviving spouse
3. Disabled Veteran or surviving spouse who needs aid and attendance

Pension benefits are not dependent upon service-related injuries. To be eligible the applicant must have an honorable discharge, be a war-time veteran with 90 days of active duty, one day beginning or ending in a period ofWar, and be disabled, blind, or in need of care. A surviving spouse of such a person can also apply.

Periods of War that have been determined by Congress to include:

• World War II: December 7, 1941 through December 31, 1946, extended to July 25,
1947, if veteran was on active duty on or before December 31, 1946
• Korean Conflict: June 27, 1950 through January 31, 1955
• Vietnam Era: August 5, 1964 through May 7, 1975, however, February 28, 1961 through May 7, 1975 for a veteran who served in the Republic of Vietnam during that period
• Persian Gulf War: August 2, 1990 through a date to be prescribed by Presidential
Proclamation

The veteran need not have served in a combat zone or even overseas but simply served in the armed forces for the required time during one of the designated war-time periods.

Let's focus on the Aid & Attendance ("A&A") Special Pension. This is a benefit that is often overlooked by veterans who have disabilities that are not connected with their active duty service or their surviving spouses who have disabilities. The Veterans' Administration considers the program one of the department's most underutilized offerings. Most veterans do not know about it or how to apply.

Many elderly vets or their surviving spouses whose income is too high to qualify for the basic pension, may qualify for A&A benefits. Aid & Attendance can help pay for care in the home, nursing home or assisted living facility. A veteran is eligible for up to $1,632 per month, while a surviving spouse is eligible for up to $1,055 per month. A couple is eligible for up to $1,949 per month.

A&A provides benefits to veterans and surviving spouses of veterans who require the regular attendance of another person to assist them with eating, bathing, dressing, or toileting. The claimant doesn't have to need help in all of these areas, but there must be sufficient evidence that he or she can't function alone. It is also available for those who are blind or a vet who is in a nursing home because of mental or physical incapacity. Care in an assisted living facility also qualifies.

The pension program is needs tested, meaning there are limitations on income and net worth in order to qualify for benefits. An applicant must have limited assets - as a general rule, less than $80,000 in assets excluding a home, a vehicle, and personal belongings. (The VA has discretion to increase limits to avoid hardship for the veteran and spouse.) If it appears that the veteran may outlive his or her assets, it is likely the VA will determine the veteran to be eligible. For A&A the income limit is $19,736. Some kinds of income, like SSI, don't count toward the income limit.

Where there are long term care costs involved, there are special rules where available income can be reduced by 12 months worth of future, recurring medical expenses. For example, a veteran with $6,000 per month of income could still qualify for A&A if paying $4,500 to $6,000 monthly for home care, assisted living, or nursing home costs.

Here are some resources for more information and application information:

▸ Contact the Director of Lancaster County's Office of Veterans Affairs, Mr. Daniel Tooth, Veterans Affairs, 150 North Queen Street, Suite 101, Lancaster, PA 17603 (717) 299-7920. Mr. Tooth's e-mail address is Dtooth@co.lancaster.pa.us. website: click here.

▸ You can get more information about the pension program and A&A, in particular, at the Department of Veterans Affairs website or by calling 1- 800-827-1000 to locate a Veterans' Service Officer near you.

▸ The Pennsylvania Department of Military and Veterans Affairs is a source for information: Their website states: "Seeking benefits from the USDVA without proper representation can be difficult to say the least. Understanding the complex rules, laws and evidence requirements can be very technical and confusing. We strongly recommend that no veteran attempt to navigate this system without proper representation and assistance of an accredited representative or organization.

Veteran Service Officers serve as the veterans' assigned representative at no cost to the veteran. They help identify what evidence is required in the claim process. They monitor the process of the claim through the adjudication process and intercede on the veteran's behalf if problems arise. They review decisions made by the USDVA to ensure veterans receive the full benefits for which entitled."

▸ Many Veterans Service Organizations provide Veterans Service Officer Representatives who prepare, present and prosecute claims for benefits on behalf of veterans. These include the American Legion, AMVETS, Disabled American Veterans, Military Order of the Purple Heart, Veterans of Foreign Wars, United Spinal Association, Vietnam Veterans of America, and Jewish War Veterans. Usually you do not have to be a member of the organization to get help.

▸ Pennsylvania operates its own Veterans Service Organization with three field offices in Philadelphia, Pittsburgh, and Fort Indiantown Gap. Here is the contact information for Indiantown Gap: Office of the Deputy Adjutant General for Veterans Affairs, Bldg S-0-47, FTIG, Annville, PA 17003, Phone: 1-800-547-2838, Email: jamebutler@state.pa.us
Website: click here.

▸ These websites provide valuable information: www.veteransaidbenefit.org, www.veteranaid.org, and www.vetassist.org.

Many commentators complain that the VA provides very little info about A&A and the pensions program generally. The application process takes a long time and much perseverance and pushing on the part of the applicant. Keep at it. Receiving A&A may allow a veteran to pay for assisted living or other long term care without needing to dip into assets. If a VA employee is unfamiliar with or states you don't qualify for A&A benefits because your disability is not service related, ask to talk to a supervisor. Benefits, when approved, are retroactive to the application date.

Congratulations to Attorney Richard E. Barnes on his book, "Estate Planning for Blended Families: Providing for Your Spouse and Children in a Second Marriage" (Nolo, $34.99).

Mark Kanny of the TRIBUNE-REVIEW reviews the book:

"A second marriage isn't a just second marriage; given the complexities, it's more like marriage squared, says author Richard E. Barnes. Just one legal aspects of those intricacies is addressed by Barnes, an attorney, in "Estate Planning for Blended Families: Providing for Your Spouse and Children in a Second Marriage" (Nolo, $34.99). Blended families means at least one partner has children from a previous marriage. "

Here is some of Richard Barnes' advice:

• Personally confront emotional issues from a previous marriage to be fair in making estate decisions.

• Know what your spouse is entitled to claim, including whether you live in a common-law state such as Pennsylvania or a community-property state.

• Prepare for predictably difficult topics of discussion, such as distribution of assets, by making lists to build in fairness about who gets Grandma's china or silver service.

• In the midst of disagreements, make sure to keep talking together -- which means knowing when to listen.

• When compromise proves impossible, look for a third way, which is another way of saying be creative.

• Be sure to use each non-spouse's full applicable exclusion amount, which reduces estate taxes. There is an unlimited marital deduction -- which means no estate tax on anything you leave outright to your spouse, with a few conditions.

• Explore the differences between wills and revocable living trusts. Trusts don't go through probate in court, but the issues are complex.

• Take full advantage of lifetime giving opportunities and other estate-reduction techniques.

• Make end-of-life decisions while you're well, including medical care such as heroic measures vs. hospice.

• Keep beneficiaries informed of your plans.

• Update your plans on a regular basis.

How in the world can you get married accidentally?

Read this story from the Des Moines Register click here.

" Iowa law recognizes so-called "common-law marriage." In fact, the law already reads broadly, "A man or woman who was or is held out as the person's spouse by a person by virtue of a common-law marriage is deemed the legitimate spouse of such person." A couple deemed married by the common law is legally married for all purposes just as surely as the couple that goes to the courthouse and gets a marriage license. A split-up requires a court-approved dissolution of the marriage before either partner can "re-marry" or un-do those marital 'defaults.' "

"Common-law marriage is something unfamiliar to most cohabiting straight couples, let alone gay ones, and certainly the common law didn't recognize marriage between persons of the same gender. But, with the state of Iowa allowing access to legal marriage by this alternate path for over a century, coupled with the Iowa Supreme Court's equal-protection ruling, it's axiomatic that the state must now recognize similarly the "common-law" marriage of same-gender couples."

Wow. That's scary. But if you live in PA don't worry. Pennsylvania no longer recognizes common law marriage.

"Intellectual property" includes patents, trademarks, copyrights and trade secrets. This area of the law protects "ideas and works" against unauthorized use of this property by others. If you are an author, artist, or inventor, your creations may be your most valuable assets. You are probably aware that your need to protect your rights to your creative works during your lifetime with patents, copyrights and trademarks. But have you planned for these assets after your death?

Forbes published a list of the 13 Top-Earning Dead Celebrities. The estates of these persons are making fortunes with the decedents' intellectual property. How much do they earn? The top-earning 13 decedents earned a combined $194 million over the last 12 months. It makes dying look like a good career move. Who are they? Elvis Presley, Charles M. Schulz, Heath Ledger, Albert Einstein, Aaron Spelling, Dr. Seuss (Theodor Geisel), John Lennon, Andy Warhol, Marilyn Monroe, Steve McQueen, Paul Newman, James Dean, Marvin Gaye.

[While he hasn't made Forbes' list, Marlon Brando has an estate that is a big earner. Unfortunately, since he died at age 80 in 2004, his estate has been involved in 26 different lawsuits. Most recently, Brando's trustees (producer Mike Medavoy, accountant Larry Dressler, and Brando's former personal assistant Avra Douglas) forming Brando Enterprises to protect and manage the "Brando brand." They brought suit against a group of companies that own the Broadcast Center Apartments in Los Angeles County for infringing Brando's trademark name by calling a series of apartments the Brando and the Brando Den. The Trustees want to build their own planned development on an island in the South Pacific and call it The Brando.]

Dead celebrities who made the list make money (or rather their estates do) by various licensing agreements for use of the celebrities works, images or names. For example, The King (Elvis Presley, for the uninitiated) earned $52 million last year. That topped Madonna's $ 40 million.

Albert Einstein, 4th, on the list, who died in 1955 is still earning. His estate earned $18 million last year form a deal with the Disney learning tools for infants called Baby Einstein, and licensing deals for use of his name and image with, for example, Nestle for a Japanese coffee brand and, with Kobe Bryant, a sneaker marketing campaign.

The lesson in this is that estate planners, executors and trustees need to pay special attention to a decedent's intellectual property

Copyrights protect expressions of ideas such as literary works, computer programs, musical works, fine art works, audiovisual work and architectural works. A copyright gives the owner the right to reproduce the work, distribute copies to the public, and the right to publicly display or perform the work. For works created after 1978 copyright lasts for the life of the author plus 70 years. The author, or if deceased, the author's widow or widower and children or grandchildren may terminate all transfers or licenses of the renewal copyright or any right under it (for pre-1978 copyrights) at the end of 56 years from the date the copyright was originally secured and recapture the last 39 years of copyright protection. Termination of a grant of rights made after 1977 can be made during a 5 year period beginning 35 years after the grant. There are many technical requirements, exceptions, and special rules relating to these termination rights and expert help must be obtained. In short, however, it is important that your estate plan and your executor not overlook this opportunity to recapture copyrights.

Note that selling or giving someone a piece of your art does not automatically take with it the copyright to the work. There is a difference between the artwork itself and the intangible rights related to it.

Trademarks protect distinctive terms and designs. The more distinctive the mark, the more protection it receives. For an example, you may own the trademark used by your company. Your estate plan can direct the next owner of the trademark and it is important that the executor file documents to record the transfer of the trademark registration if it is registered with the date or with the federal trademark office.

A patent is a right to exclude others from using or commercially exploiting an invention. Patents protect inventions, that is, any new and useful process, machine, or article of manufacture. A patent can also be obtained for an original and useful ornamental design for an article of manufacture. A patent must be transferred in writing. Any patent owned should be addressed in your estate plan. If you die before obtaining a patent, your executor can file a patent application.

Any author or artist should consider choosing a an executor who is knowledgeable in his or her field to serve as a special executor after his or her death. For example, an author might appoint a family member as executor to take care of the estate in general, but name a literary executor to be responsible for and carry out certain duties with regard to the decedent's written works.

Intellectual property can be a valuable assets and it must be managed in your estate to maximize
income streams income, address infringements, protections, registrations and maintenance.

Q: What is the difference between death and taxes?
A: Congress does not meet every year to make death worse.

Death and taxes - two subjects that are highly emotionally charged. Nobody really wants to talk about either one of them - together they are, well, taxing and deadly.

Do you break out in a cold sweat when discussing your will? Can you bear to think whether there will be enough money to live on if your husband dies? Can you even think about which kid will run the business when Dad dies? Let alone talk about it in a family meeting?

The first hurdle to be overcome is facing your own mortality. Whenever I meet a client I try to wait until they use their own euphemism for death, then I use that expression for the rest of the conference. There's a wide selection of substitutions for the "D" word - "pass on," "kick the bucket," "meet my maker," "when something happens to me," "get hit by a truck," "pushing up daisies," "six feet under" - just to name a few. People will say anything rather than "When I die." (I had one client who said "When I croak" - I like that!)

Some folks hold to the superstition that making a will brings on death. Superstitious, yes, but nevertheless, it is a real impediment to many people.

The next hurdle is the fear of giving up control. Estate planning doesn't mean giving your assets away. Many people know they must do something to reduce taxes but fear giving control of assets to children. They have heard too many horror stories about ungrateful children who spend the family savings and turn their backs on their parents. Most people want it both ways - they want to retain complete unfettered control over all their assets and also pay no estate taxes. There are techniques that permit transfer of value while retaining significant control and there are ways to protect funds. Learning about these approaches is part of the estate planning process.

Fear of dealing with an attorney is another big hurdle. (Now who could be afraid of a lawyer?) You might be afraid the lawyer will think you are uninformed, unsophisticated. Do you feel uninformed because you have to call the repairman to fix the air conditioner? Of course not. In the same way that you don't know how to fix am air conditioner, you don't know how to do an estate plan. This is no reflection on your intelligence or character.

You might be afraid of being gouged by fees, or be afraid the attorney isn't going to listen to you but just forge ahead with a standard plan you don't want. The key to overcoming these fears is finding the right lawyer. Most estate planning lawyers will talk to you on the phone briefly so that you can get a sense of their approach and how you will relate to him or her. You don't have to stick with the first lawyer you talk to. Like anything else, a referral from a satisfied client is often the best approach. Ask your friends who they use for an estate lawyer. Like any other important decision, it is good to do research and talk to a few lawyers before making the hiring decision. If you are married, perhaps you and your husband shouldn't have the same attorney - especially if its not a first marriage and there are children from a prior marriage. Don't forget - you are the boss, you are paying the bill.

What does it cost? Fear of the expense is another thing that keeps people from estate planning. Let's face it. Estate planning is not for you - it's for those you leave behind. You aren't going to be hurt by estate taxes. You will be "long gone." You aren't going to have to negotiate who gets the grandfather clock - the kids are going to have to slug that out. So how much money (not to mention time and emotional energy) are you willing to spend on an estate plan for your family? Estate planning is truly a gift to your family. Recognize it for what it is - caring for others. Leaving a well designed plan behind is the best gift you can give your family. Arrange your affairs to do the most good for your family, friends, and charities.

Don't be afraid to ask how the attorney charges. Most attorneys will charge an hourly rate and you can expect to pay a high rate for a specialist. (Heart surgeons charge more than nurse practitioners.) Some estate planning is done on a flat fee basis, but an estimate can't be given until the attorney knows what will be involved. Almost no one gets a "simple will." More is involved than a will and every family situation is different. As Zoe Hicks says in her book "The Women's Estate Planning Guide," "[b]e especially wary of attorneys who write themselves into your will as the estate's legal counsel. Sometimes these attorneys may charge very little (even nothing) for preparing the will, only to take a huge fee, in the form of a percentage of the estate, for acting as the estate's legal counsel later."

Tough family decisions are another emotional stumbling block. Is there a divorce looming for one of your children? Is one of the grandchildren handicapped? Will you or your spouse remarry? Who is going to control the family business after the parents are dead? Are any of the children capable of running it? Facing these issues can be so painful that they are avoided indefinitely. Then a real mess is left behind. Avoiding the problem doesn't make it go away.

What if one of the children is in and out of drug rehab, or one of the kids is a successful professional and the other is a struggling single parent with small kids and a minimum wage job. Do these children get treated equally in the estate plan ?

What about blended families - the children are yours, mine and ours. Do all of them share equally in both Mom's and Dad's estates? Facing tough decisions like these is hard. The estate planning attorney can give you options and choices, but ultimately the tough decisions are yours to make. Do you really want to have someone else make these decisions for you after you are dead? Worse, do you want your family to be torn apart with the fighting over your estate?

"You gain strength, courage and confidence by every experience in which you really stop to look fear in the face . . . . You must do the thing which you think you cannot do."
-- Eleanor Roosevelt

Do you have minor children? Who will take care of the children if you die? This is the number one reason for you to make a will.

Michael Jackson left a will in which he nominated his mother, Katherine Jackson, as guardian of his three children, Prince Michael Junior, aged 12, Paris Michael Katherine, 11, and Prince Michael II (known as "Blanket"), 7. If Katherine is unwilling or unable to serve as guardian, he named his long-time friend Diana Ross.

It is a good thing that Michael Jackson had a will and that he made judicious choices about who would raise his children. But will his wishes be honored? Katherine has been appointed interim guardian pending a hearing. Debbie Rowe, Michael Jackson's ex-wife and the mother of his two oldest children, made comments to the media indicating that she wants custody of the children. It is unclear if her parental rights were terminated. The third child, Blanket, was born to a surrogate mother who has never been identified.

There are really two types of guardians with differing responsibilities: (1) Guardian of the person, which is physical custody of the minor, and (2) Guardian of the minor's estate, which is the care and management of the minor's property. It is not necessary that the same person hold both offices. The two functions can be split between different people.

In Pennsylvania, the law permits a surviving parent to name a guardian of the person for minor children in his or her will. However, the statute provides that no parent who, for one year or upwards previous to his death, shall have willfully neglected or refused to provide for his child, or who for a like period, shall have deserted the child or willfully failed to perform parental duties, may appoint a guardian.

In addition, Pennsylvania law permits anyone who gives property to a minor in his or her will to name a guardian of that property. Parents may name a guardian of the minor's estate as well as guardian of the person. Other persons also may name guardians of the minor's estate. For example, if grandparents leave their estate to a minor grandchild, the grandparents may name a guardian of the minor's estate in their wills to manage the funds for the benefit of the minor grandchild, even if the parents are living and even if the parents do not agree with the choice.

Pennsylvania law provides that the court shall not appoint as guardian of the estate of a minor the parent of the minor, except that a parent can be appointed as a co-guardian with another co-guardian.

A guardian of the person is a sort of substitute parent. For so long as the ward (the minor child is called a ward of the guardian) is under the age of majority, age 18, the guardian has the same rights and duties as a parent. As parents, you and your spouse are the so-called "natural guardians" of your minor children. Natural guardianship is a personal right to the custody of a child until the child reaches the age of majority. Where the parents are unmarried, the mother is considered the "natural guardian." A natural guardian, however, does not have any authority to exercise control over the minor child's property, except in limited circumstances where the court approves an award to the parent.

In the case of a married couple who are both the parents of the children, a court proceeding is not required when one parent dies. The surviving parent is the natural guardian. In all other cases, such as blended families and unmarried couples, court appointment is required to have legal authority. Will the court appoint the guardian who is nominated in the will? Probably. But its not automatic. If there is no will and the parents are deceased, the court will select and appoint a guardian.

Too many young couples say, "we don't need wills; we don't have anything to leave to anyone." If you have children, you have the most valuable thing in the world. You do everything you can to be a good parent. Make sure you make a will and have plans for your children's care if you are no longer around.