Stapleton Elder Law

Backwoods Cabin Where Bluegrass was born is Now for Sale

For fans of bluegrass, this is an once-in-a-lifetime opportunity to own a piece of musical history.

It was while he was living in a small cabin in Rosine, Kentucky, when Bill Monroe first learned a number of tunes from his uncle, Pendleton Vandiver. Both of Monroe’s parents had died by the time he was 16, and his “Uncle Pen” took him in for two years, teaching the young man fiddle tunes, working on his timing and accompanied by his uncle’s mandolin.

Monroe’s life and what his estate is now doing is detailed in an article appearing in USA Today, “Bill Monroe estate to sell historic property.”

That cabin went to the bank when Vandiver died. Bill Monroe's son, James, bought the property in 1973 as a gift for his father. James also built another cabin using some of the salvaged logs from the original home.  However, now James says that it's time to pass it along to a new owner.

"We've got so much stuff that he left. We can't take care of it all."

This is the second sale of pieces from the Bill Monroe estate in less than a year. Last summer, Monroe’s fans and collectors purchased more than 1,000 items at an estate sale in Gallatin.

The property's eBay page currently lists an asking price of $550,000. Monroe’s cabin is on 2½ acres of land overlooking Rosine, Kentucky.  It is about 110 miles north of Nashville, but within walking distance from the cemetery where Monroe, who died in 1996, and Vandiver are buried.

Monroe’s cabin currently welcomes tourists from May to October, but there’s no indication what might happen with new owners regarding whether they might want to keep the cabin as a tourist attraction.

The purchase of the property also comes with name, merchandising and image rights to Pendleton Vandiver as well as several items in the home. That includes one of Monroe's Stetson hats and a BMI award for his classic song "Uncle Pen"—a song that’s been covered countless times by artists ranging from Ricky Skaggs to Phish.

Tuning keys from Monroe’s prized Gibson F-5 mandolin, along with a fiddle Monroe purchased and used as a backup instrument by a number of members of the Blue Grass Boys Band will also be put up for sale. One of the Blue Grass Boys who played that fiddle is Bluegrass Hall of Famer Kenny Baker, adding to the instrument’s cachet.

Reference: USA Today (April 25, 2017) “Bill Monroe estate to sell historic property”

What will your legacy be after you pass? Please visit our website to learn more about creating an estate plan that last long after you pass.

 

Savvy Tips for Dealing with an Inheritance

Inheritances by their very nature, create many mixed emotions. While you are grateful for the inheritance, you are grieving, which is a painful experience that impacts decision-making skills.

Perhaps the most important thing to know when you are grieving the loss of a loved one and expect to receive an inheritance, is not to make any big decisions. While an inheritance may change your life in a financially good way, as reported in The Reading (PA) Eagle Business Weekly’s recent article, “What to do and what not to do with your inheritance,” you are in a state of emotional crisis. Financial planning and big financial decisions will need to be made, but nothing needs to be done immediately, except for settling the business of the estate, if you are the executor. Here are some dos and don’ts to keep in mind:

What not to do with an inheritance

There’s no rush. Don't go nuts and spend every dollar immediately. Don't invest in long term or risky projects. Be patient.

Don't pay too much in taxes. Work with an estate planning attorney so you pay the appropriate amount to the IRS.

Don't pay off the mortgage. Although this can be emotionally fulfilling, it may not be the best use of your money. Take advantage of today's low interest rates and the tax-advantaged deductible mortgage payments. Create a financial plan so that you don’t run out of retirement funds.

Don't go on a mad spending spree. This should be self-explanatory.

Don't be pressured. Don’t be surprised if many people suddenly come out of the woodwork to offer their unsolicited advice—relatives, old pals, insurance agents, bankers and investment advisers. Just say, "No, I am not ready to make a decision yet." Likewise, don't get pressured into sharing your money with a friend or family member.

What to do with an inheritance

Save it. Deposit the money in the bank, a money market account or a short-term CD.

Pay off debt. Get rid of credit card balances and other high-interest debts that don't have tax benefits.

Do some financial planning. Figure out your long-range financial plan before spending any of this new found wealth and make plans for your retirement.

Update your estate plan. Make sure that your estate plan is up-to-date so your assets go to the intended persons, and you don’t waste it on probate fees and unnecessary taxes.

Meet with an estate planning attorney. If your financial situation has changed as a result of the inheritance, it makes sense for you to meet with a qualified estate planning attorney to update your will and other documents.

Reference: Reading (PA) Eagle Business Weekly (January 17, 2017) “Office Space: What to do and what not to do with your inheritance”

Please visit our website to learn more about handling an inheritance or ensuring your estate plan is up to date so your assets go to the intended persons. 

 

Younger Billionaires Will Change the Face of Wealth Transfer and Philanthropy

With the advantages of more education, a world that is literally at their fingertips, and a greater sense of purpose, the next generation of billionaires is expected to make very different choices than previous generations when it comes to passing their wealth along.

Expect big departures from tradition when the estate plans of a new generation of billionaires begin to transfer their wealth. Unprecedented wealth creation, much of it digital in nature, means that more than $2 trillion in assets in the next 20 years will be transferred, according to a recent Billionaires Report by UBS and PcW. Perhaps it’s time to change the name of the report to the Trillionaires Report.

Investopedia’s article, “Billionaires to Transfer $2T in Wealth to Heirs,” reports that the data was gathered from the last 20 years, following 1,400 billionaires across the 14 largest markets. It looks at the potential impact this gigantic wealth transfer may have on both the recipients and society at large.

The report goes on to say that as great wealth trickles down the generations, the goals of those transferring that wealth will change. In fact, we’re already seeing the early stages of what we expect to be an upsurge in philanthropy.

The Billionaires Report includes information given by an advisor to several billionaire families.

The report concludes that younger beneficiaries of billionaire wealth are driven by three key goals that make them different from their elders: they typically put business first, place greater emphasis on values instead of valuables, and look to find identity through philanthropy. Young billionaires are apt to be entrepreneurial and feel that growing their businesses is a way to benefit society. They also believe in philanthropy, but have a different approach than their parents and grandparents.

The report presents an optimistic view of what may result from the wealth transfer. It asserts that the heirs will wish to create tangible benefits to more than their businesses and employees, but to the world in which they live. It is likely that they will change the face of philanthropy, as their desire to have a positive impact on their communities will benefit from bringing a strategic, business-like approach to giving.

Reference: Investopedia (October 31, 2016) “Billionaires to Transfer $2T in Wealth to Heirs”

To learn more about planning for your future and that of your heirs, please visit our website.

Keep Your Heirs Motivated with a Secret Trust

Preventing an heir from knowing about the value of a trust, or even that a trust has been created for their benefit is often a desired goal, particularly when there are concerns about how the knowledge will affect the heirs. In some states, there is a way to accomplish this.

This is what is called a "first world" problem, but it is a problem nonetheless. Wealthy families who value their accomplishments are concerned that heirs who know that they are going to receive large amounts of wealth through a trust may not be motivated to establish their own careers or take their studies seriously.

One way to help avoid this is to create a trust that does not give anything to the beneficiaries until they reach an age where they will have settled into their adult lives. However, there still might be a fear that if a beneficiary knows that a large inheritance is eventually coming through the trust, they will not be as motivated to earn their own money as they otherwise would be.

A recent article by Financial Planning, "How Silent Trusts Can Help Your Clients," discusses a type of trust that can be used to keep beneficiaries in the dark about their trusts.

The basic idea is that in a "silent trust," the terms of the trust prohibit the trustee from telling the beneficiaries about the trust or the assets in the trust. You should know that these trusts are legally controversial and are not allowed in all states.

Some states mandate that the trust beneficiaries must be told about the trust upon reaching a certain age. Delaware, however, is one state that does allow silent trusts in almost all circumstances.

If you are interested in such a trust, contact an experienced estate planning attorney to explore your options. Please visit our website to learn more! 

Reference: Financial Planning (October 16, 2015) "How Silent Trusts Can Help Your Clients"

 

No Kids? You Still Need an Estate Plan

 

Many people think that not having children means that you don't need to have an estate plan. But in most cases, having an estate plan becomes even more important in the absence of children. Unless you wish to give your assets over to the state, you'll want an estate plan that will carry out your wishes.

When most people think of wills and estate plans, they usually think about the primary function of distributing assets to children. The natural next thought is, if they have no children, then they don't need a will. But estate plans, and especially wills, actually serve a number of important purposes, only one of which is conveying assets to children.

As U.S. News & World Report points out in, "No Kids? You Still Need an Estate Plan," people without children need, at the very least, to have a will if they want to have a say in who gets their assets after they pass away.

People who pass away without a will are said to have died intestate. Every state has a law that determines who gets the assets of people who die intestate. The laws all operate similarly, in that the assets are given to the person's closest living relatives.

Under such law, those who have a spouse or children will have their assets given to that spouse or the children. If however you have no spouse or children, then your assets will be distributed to other relatives, depending on who is closest in line. Ultimately, if you have no living relatives that can be found, then the assets will be claimed by the government. The term for this is escheat.

So, the primary purpose of estate planning for most people is avoiding the laws of intestacy and deciding for yourself who will inherit from you.

Do not let the fact that you do not have children deter you from getting an estate plan. Contact a qualified estate planning attorney to help you design a custom plan for your unique circumstances. To learn more, please visit our website. 

Reference: U.S. News & World Report (October 14, 2015) "No Kids? You Still Need an Estate Plan"