[WSBAPT] impact of divorce (for convenience) on estate planning

Wed Feb 26 11:36:58 PST 2014

I agree with Heather’s comments and yours. The “tax expert” sounds like
just another non-lawyer practicing law!

Jane Bitz.

From: wsbapt-owner at lists.wsbarppt.com
[mailto:wsbapt-owner at lists.wsbarppt.com] On Behalf Of G. (Gus) Benjamin
Lindsey III
Sent: Wednesday, February 26, 2014 11:33 AM
To: wsbapt at lists.wsbarppt.com
Subject: RE: [WSBAPT] impact of divorce (for convenience) on estate
planning

Thanks Heather,

I agree it’s a drastic step, and I don’t fully understand the fears that
drove it. All I was told is that “their tax expert” advised them to do so.

I plan to sit down with them next week. Home is at most worth about 500K.

Thanks for the insight, my reaction was the same as yours!

Sincerely,

G. (Gus) Benjamin Lindsey III

Attorney-at-Law

The Law Office of G. Benjamin Lindsey III

2012 Grade Road, Suite 202

Lake Stevens, WA 98258

Phone:   (425) 263-9585

website: www.gbl3law.com <http://www.gbl3law.com/> 

Business Law     Employment Law     Construction Law     Civil Litigation
Estate Planning      Labor Law     

CONFIDENTIALITY NOTE: This e-mail message contains information belonging
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From: wsbapt-owner at lists.wsbarppt.com
[mailto:wsbapt-owner at lists.wsbarppt.com] On Behalf Of Heather deVrieze
Sent: Wednesday, February 26, 2014 11:23 AM
To: wsbapt at lists.wsbarppt.com
Subject: RE: [WSBAPT] impact of divorce (for convenience) on estate
planning

Gus,

State law (11.94.080) terminates the power of attorney upon entry of a
decree, unless the decree or the POA specifically state otherwise.
Similarly, provisions for a spouse in a Will are automatically terminated
upon entry of a decree, unless the Will says otherwise.  

This is a pretty drastic step for them to take if they are not rather
immediately anticipating long term care.  There are already significant
protective provisions for the at home spouse to keep the home, with or
without a lien, if the other needs long term care, unless we are talking
about a very valuable house.  I’m not sure what the tax/Medicare issues
that are the impetus for this decision, but it would seem that a thorough
education of the Medicaid rules, as well as the tax/inheritance
implications of not being married, is in order before taking such a step.

Medicaid rules are constantly changing and highly technical, so
appropriate advice from someone very familiar with the rules is always a
good idea.

Heather

Heather S. de Vrieze
Attorney-at-Law

3909 California Avenue SW

Seattle, WA 98116-3705                          

(206)938-5500 

 <mailto:heatherd at westseattlelaw.com> heatherd at westseattlelaw.com 

 <http://www.westseattlelaw.com/> www.westseattlelaw.com 

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From: wsbapt-owner at lists.wsbarppt.com
[mailto:wsbapt-owner at lists.wsbarppt.com] On Behalf Of G. (Gus) Benjamin
Lindsey III
Sent: Wednesday, February 26, 2014 11:09 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] impact of divorce (for convenience) on estate planning

Good morning,

I am hoping one of you can give me some insight on the below situation.

PC’s are an elderly couple (80’s) but still physically and mentally sharp.
The couple is getting a divorce due to tax/Medicare concerns but plans to
remain together. (I’ve heard of this being done but never actually met
anyone that has done it.) It seems that rather valid or not, the couple
became concerned over losing their house if the wife required long-term
care. 

Couple wants to ensure that their current plans will still work when the
divorce is final. The current estate plan consist of wills and power of
attorneys; I have not seen the wills yet.

Will the POA’s be void if they refer to the attorney-in-fact by name and
relationship(spouse) because of the divorce? PC states that the POA’s do
not have clauses that rescind the powers just because of a divorce.

I am assuming that the Wills require updating if the couple still wants to
leave everything to the other person even after the divorce is final in
the near future. The overall estate value appears to be far below the
federal and state taxable thresholds. (main assets are a home and cash)

Anyone dealt with this that can provide general insight on drafting
issues?

Thanks!

(And today started off as such as a quiet and non-eventful day.)

Sincerely,

G. (Gus) Benjamin Lindsey III

Attorney-at-Law

The Law Office of G. Benjamin Lindsey III

2012 Grade Road, Suite 202

Lake Stevens, WA 98258

Phone:   (425) 263-9585

website: www.gbl3law.com <http://www.gbl3law.com/> 

Business Law     Employment Law     Construction Law     Civil Litigation
Estate Planning      Labor Law     

CONFIDENTIALITY NOTE: This e-mail message contains information belonging
to The Law Office of G. Benjamin Lindsey III, which may be privileged,
confidential and/or protected from disclosure.  The information is
intended only for the use of the individual or entity named above.  If you
think that you have received this message in error, please contact the
sender.  If you are not the intended recipient, any dissemination,
distribution or copying is strictly prohibited

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Bar Association nor its officers or agents. 

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author and do not necessarily have the endorsement of the Washington State
Bar Association nor its officers or agents. 

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