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405-843-6100 | 918-615-2700 | ParmanLaw.com April 2024
All About Trusts and POD Accounts: Your Need-to-Know Plus, What I’m Reading
Clients and Friends …
The days race by. As always, we appreciate the excellent online reviews you share and the referrals you send our way. Both mean a lot. Thank you! I will get right to it with a few thoughts. What makes your trust work? Your trust is a contract and is a substitute for your last will. Your trust, not the will, names your beneficiaries and determines when they receive their inheritance. For the trust to distribute assets according to your wishes, they must be titled in the name of your trust. If you transfer assets into the trust during your lifetime, probating those assets will be avoided. If you fail to transfer assets during your lifetime and have assets titled in your name at the time of your death, those assets are subject to probate. Even if you have a trust! We refer to the process of connecting ownership of assets to a trust as “funding” the trust. Connecting your assets to the trust is the third and most crucial step in creating an effective estate plan utilizing a revocable trust. Caveat: The only assets not retitled into the name of the trust are IRAs and other retirement accounts. We link those assets to your trust by creating the appropriate beneficiary designations. The same applies to most insurance policies and annuities. Who should be the beneficiary of your IRA? Speaking of IRAs, clients regularly get push-back from financial advisors, telling them a trust cannot be the beneficiary of an IRA or retirement account. Balderdash! When a trust is structured to be a Qualified Designated Beneficiary, it can be your trust’s primary or secondary (contingent) beneficiary. Another question is whether naming a trust as the beneficiary is your best option. Receiving good legal advice and counseling is vital in making this decision. When you name children as your beneficiary, there are many pitfalls and risks. If you have any questions about how your IRA, insurance, or annuity beneficiaries are structured, we should discuss it. Do not let your financial advisor misguide you due to not understanding your options. Understand the perils of Payable on Death (POD) accounts. Some see using POD account designations as an inexpensive way to avoid probate. In fact, accounts styled in this manner will achieve that. If you own a home, a bank account, two cats, and a car, utilizing Payable on Death accounts may get you by. With POD accounts, the controlling instrument is the account contract you sign with the bank or financial vendor. You should not use POD accounts if you do not read and understand the implications. For example, what happens to a child’s share if that child predeceases you? Does it go to your surviving children or the deceased child’s children, as you may
prefer? And, don’t forget, you still need to designate a decision- maker for you in a Property and Health Care Power of Attorney, an Advance Directive, and other ancillary documents. It is also possible to transfer real estate with a Beneficiary Deed. However, often problems arise when statutory requirements are overlooked by the beneficiary. For example, we recently discovered an adult child did not claim their interest in real estate conveyed to them by a Beneficiary Deed within the statutory time limit. They lost their interest in the land, and probate was required. What’s Larry reading? As expected, there are so many legal articles and case reviews. Beyond that, I always seem to have three or four books staring me in the face, all vying for my attention. I finished reading the last two recently published Vince Flynn (dec.) books this month. Now I’ve read all 22. On the nonfiction side, “The Right Call” by Sally Jenkins (famous sportswriter Dan Jenkin’s daughter) is an excellent leadership book based on what she has observed on various athletic fields. I also periodically pick up John Dwyer’s “The Oklahomans.” John is an outstanding Oklahoma historian whose words paint a compelling vision of our state. Finally, “The American
Story: The Beginnings” by David and Tim Barton flashes away at me on my Kindle. The first few chapters are about the formation of this great land — compelling.
Until next time,
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4 Meaningful Pursuits to Explore After Retirement
education but couldn’t fit it into your schedule, now you can. There are courses available online and in person. Many classes specialize in educating seniors, while others offer highly discounted rates. Some colleges allow seniors to audit their courses at little to no cost with a tuition waiver. Lifelong learning also helps reduce the risk of Alzheimer’s and dementia. So, if you worry about these diseases, continuous learning is one of the best defenses you can have. No. 3: Help and Advocate Many retirees find purpose through volunteering. Many organizations need a hand, like food banks, soup kitchens, and animal shelters. Giving them some of your time allows you to support your community, further a cause, and even save lives. Volunteer work also connects you with like- minded people, ensuring you make friends with people who share your values.
Retirement is the end goal after decades spent working and saving. Once reached, a common question retirees ask is, “Now what?” There’s a massive gap in your schedule now, and there are countless things you can fill the time with. So, here are four big ideas you can use to take advantage of your newfound freedom. No. 1: See the World The world is a vast and beautiful place, and now that you don’t have obligations tying you down, you can finally get out there and see everything on your bucket list. If you ever wanted to experience the breathtaking size of the Grand Canyon or dreamt of dining at French cafes by the Seine River in Paris, then retirement is the perfect opportunity to go on those adventures. No. 2: Never Stop Learning Be a lifelong learner. If you’ve always wanted to explore your interests through
No. 4: Retire a Little Less Some retirees miss the purpose that work gives (as well as the income). Many jobs also keep you on your feet and active. If you count yourself among them, consider picking up a part-time job. Roles like delivery driver, substitute teacher, and dog walker allow you to line your pockets while meeting people. Retirement is not just the end of work — it’s the start of leisure. You can do and experience many things, from seeing the Mona Lisa to volunteering at an animal shelter. It’s time to take advantage of retirement and seize every opportunity.
HOW TO SUCCEED AS AN EXECUTOR TIPS TO AVOID MAJOR MISSTEPS
which is why changing the locks could be crucial if the family situation is contentious.
If you’ve been named the executor for someone’s last will and testament, you’ve been entrusted with the responsibility of carrying out a person’s last wishes. This honor — and legal responsibility — means you must take care of financial obligations, including paying any outstanding debt or taxes, and then properly dispense the remaining assets according to the directions in the will. The person who chose you to be executor trusts that you can handle this responsibility, so we’re here to walk you through the process and clear up any questions you may have. If you are listed as the executor or the trustee in someone’s estate planning documents, you should do a few things immediately upon their passing. First, you must secure their home and any other property as quickly as possible. This involves
Next, you should locate all relevant estate planning documents and then determine whether the estate must go through probate. You will need multiple copies of the death certificate for banks, credit card companies, and insurance. Other important documents you will need include insurance policies, credit card statements, investment account and pension statements, and contacts for attorneys and accountants. Give yourself time to review these documents carefully. Once you understand the estate plan, you can call a meeting with all involved to review the deceased family member’s instructions on how to distribute the assets. Being prepared and proactive will ensure you carry out your duties as an executor with precision and honor the person who entrusted you with this duty.
maintaining any property until the estate is settled, including changing the locks.
Often, family members will try to go into the house after someone passes away and remove items. As the executor or the trustee, you have to ensure this does not happen,
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Why You Should Not Let Artificial Intelligence (AI) Do Your Estate Planning By Larry Parman You have heard, or will be hearing, about AI. Let’s pray we have open architecture and that it does not end up controlled by the government or a handful of large corporations. Aside from that, I have been exploring its use and how it might apply to our firm. For fun, I entered the following query. “Write a 500-word memo on the perils of having ChatGPT create a Do It Yourself living trust.” It produced this result in less than 15 seconds. I would like to discuss an increasingly prevalent issue, the use of artificial intelligence applications, specifically ChatGPT, for creating do-it-yourself (DIY) living trusts. While it may seem an innovative and cost-effective approach, it poses several potential perils that need to be addressed. Firstly, it is important to note that ChatGPT, or any AI software as of my knowledge cutoff in September 2021, lacks the legal expertise required to correctly and accurately interpret legal nuances in the context of specific individual circumstances. Unlike a human legal professional, an AI system does not possess the ability to understand and navigate complex legal scenarios or offer strategic advice, based on years of study, professional training, and practical experience. Furthermore, AI applications are not able to accurately assess unique personal circumstances and apply these to the legal context. The nuanced situations, family dynamics, tax considerations, and long-term implications of various decisions are best understood in face-to-face consultations with a legal expert. Relying on ChatGPT could result in the creation of a trust that does not appropriately address these complexities, potentially leading to conflicts and legal complications in the future. Secondly, legal systems and their interpretations are continually evolving. Laws
regarding trusts differ significantly across jurisdictions and are frequently subject to change. ChatGPT, having a knowledge cutoff, cannot keep up with these changes, thus, potentially offering outdated advice. Finally, the confidentiality and privacy concerns surrounding the use of AI cannot be ignored. Sensitive information shared with AI may be vulnerable to data breaches. As the data processed by ChatGPT is encrypted and anonymized, it may not provide the level of confidentiality that a direct consultation with a lawyer would. In summary, while the use of AI and tools like ChatGPT is an exciting development with many beneficial applications, it is important to exercise caution when using these tools for creating DIY living trusts. The complexity of legal matters and the unique individual circumstances that should guide such decisions make human legal consultation irreplaceable. AI is unlike other tech tools. Yet, for most of us, it will be a tool, not a panacea. It offered us pretty good advice to my query. ### Some Humorous Thoughts from Seniors Apparently RSVP’ing to a wedding invitation “Maybe next time,” isn’t the correct response. Don’t irritate old people. The older we get, the less “Life in prison” is a deterrent. Have you ever listened to someone for a minute and thought, “Their cornbread isn't done in the middle.” Aliens probably fly by earth and lock their doors. “You will hit every cone on the highway before I let you merge in front of me because you saw that sign 2 miles ago like I did." I asked my wife if I were the only one she had ever been with. She said yes, all the others were nines and tens. It turns out that being an adult now is mostly just Googling how to do stuff. I miss the 90’s when bread was still good for you and no one knew what kale was.
Upcoming Education Events: For non-clients interested in learning how estate planning can benefit your family and as a refresher for Clients… Wills, Trusts, and Estate Planning Made Easy and Painless: Learn How to Protect Your Loved Ones, Hard-Earned Money, Belongings & More Tuesday, May 14, 2024; 2 – 4 PM or 6 – 8 PM OKLAHOMA CITY Central OK Home Builders Association 420 E Britton Rd; Oklahoma City, OK 73114 Use the entrance on the right. OR TULSA The Holiday Inn Express 150 Aquarium Drive; Jenks, OK 74037 RSVP at 405-286-9009 (24-hr hotline) or OKC: www.okcprogram.com TULSA: www.tulsaprogram.com ++++++++++++++++++++++ Education Webinar for Business Owners Needing an Exit Plan Discover the System that Makes Your Business Sale-Ready, Maximizes Value to You, and Ensures an Easy, Seamless Transition Thursday, May 16, 2024; 12 – 1 PM This is held via Zoom so you may have a “Power Lunch” at your office or home. RSVP at 405-286-9009 (24-hr hotline) or www.parmanlaw.com/exitplan Invite family, friends and loved ones who will benefit from these valuable Education Programs. To host Parman & Easterday as a guest speaker to educate your group or organization (ie. church, civic, business, social, fraternal, political, school, etc.) – either in-person or via webinar, call Scott at 405-843-6100.
Do you ever get up in the morning, look in the mirror and think, “That can’t be accurate.” I want to be 14 again and ruin my life differently. I have new ideas. As I watch this new generation try to rewrite our history, one thing I’m sure of....it will be misspelled and have no punctuation. I told my wife I wanted to be cremated. She made me an appointment for Tuesday. Confuse your doctor by putting on rubber gloves at the same time he does. My wife asked me to take her to one of those restaurants where they make food right in front of you. I took her to Subway. That’s when the fight started. Me: Sobbing my heart out, “I can’t see you anymore....I’m not going to let you hurt me again.” Gym Trainer: “It was one sit-up. You did just one sit-up.” Picked up a hitchhiker. He asked if I wasn’t afraid he might be a serial killer. I told him the odds of two serial killers being in the same car was extremely unlikely. Our Wonderful Clients Speak Out: “…the experience was absolutely stellar.” “I came to be acquainted with Parman & Easterday back in 2002 when I had my first trust drawn up. I came back to them this year for an update and the experience I had was absolutely stellar. Everyone is SO accommodating, and Mr. Parman made everything so easy to understand for someone without a deep understanding of the law in regards to estate planning. Every visit was refreshing and everything was paid attention to, down to the smallest detail. And the visits I had were SO (dare I say it) FUN. I highly recommend them to anyone desiring to make sure
their final decisions are respected.” ~Dorothea Kinsman; Lawton, OK
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Keeper Ledesma Showed Fans a Different Kind of Save
How a Goalie Helped Rescue a Stricken Spectator
MARGIE’S KITCHEN: 3-LAYER MINT CHOCOLATE BROWNIES
by Darlene Parman
The European football pitch is often the scene of bitter rivalries and even violence between fans, but spectators at a 2022 match between the Spanish professional football clubs FC Barcelona and Cadiz CF witnessed an entirely different kind of drama. The match was suspended when a spectator in the end zone collapsed. As medical staff rushed to help, the goalie for Cadiz broke from his position, raced to his team’s dugout, retrieved a medical kit with a defibrillator, sprinted back toward the scene, and tossed the kit to the medics. Thanks in part to the defibrillator, which medics used to resuscitate the victim, he was safely transferred to a nearby hospital.
Here we share recipes that Darlene Parman’s late mother (Margie Trammell) used to whip up with TLC for her family, loved ones, and friends. These brownies were a favorite of Aly and Scott’s (Larry and Darlene’s children) growing up, as they truly proved time and time and time again that you “can’t eat just one!” You may want to whip up a couple of batches at a time as they promise to go fast!
Ingredients
Second Layer
First Layer
• 1 cup powdered sugar • 2 tbsp softened butter • 1 tbsp milk • 1 tsp peppermint extract • A few drops of green food coloring
• 1 stick butter,
melted and cooled
• 1 cup sugar • 5 tbsp cocoa • 3/4 cup flour • 1/2 tsp salt • 2 eggs, beaten • 1 tsp vanilla
Many onlookers credit Cadiz’s goalie, Jeremias Ledesma, with averting a tragedy.
Third Layer
It is hard to tell who will step up in a crisis and who will freeze. People who are normally empathetic may shrink back, while sometimes introverts dive in to help, surprising even themselves. Those who respond heroically tend to be hopeful people who take charge in difficult situations — traits professional soccer goalies clearly need. People who step up to help others also tend to have a strong sense of responsibility, another requirement of keepers. The coach of the rival team praised Ledesma’s quick thinking. “We’re talking about a human life, and any human life is above a soccer game,” Barcelona’s coach, Xavi Hernandez, was quoted as saying. Only after the spectator was revived and en route to the hospital did the teams agree to resume the game. Although Cadiz lost the match 4-0, Cadiz fans went home with a different kind of win — global recognition of their goalkeeper’s good deed. Video of Ledesma’s quick response quickly went viral, earning “massive respect” from commenters and worldwide plaudits for heroism.
• 2 tbsp butter • 2 squares of semi-sweet chocolate
Directions First Layer: In a 9x9-inch cake pan, melt 1 stick of butter and cool. In a bowl, mix sugar, cocoa, flour, and salt. Add 2 beaten eggs and 1 teaspoon of vanilla. Pour cooled butter into mixture. Combine and return to 9-inch pan. Bake at 350 F for 25 minutes. Second Layer: In a medium bowl, mix powdered sugar, softened butter, milk, peppermint extract, and a few drops of green food coloring. Pour over cooled brownies and chill until set. Third Layer: In a small saucepan over medium heat, melt butter and 2 squares of semi-sweet chocolate. Cool and spread over brownie mint layer. Chill again until set. *You can double everything for a 9x13-inch pan. This recipe freezes well.* If you have a recipe you’d like us to share in Margie’s Kitchen, please mail it to us or email it to Info@parmanlaw.com. We’ll feature it in our newsletter or on our website!
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INSIDE THIS ISSUE
1
Your Need-to-Know on Trusts and POD Accounts
2
How to Flourish in Your Retirement Years
How to Be a Successful Executor
3
3-Layer Mint Chocolate Brownies
Soccer Goalie Saves a Fan’s Life
What We Can Learn From Chaotic Celebrity Probate Battles
4
Chaotic Celebrity Probate Battles Hold Lessons for All BIGGER STARS, BIGGER MESSES
her an allowance so she could remain in the couple’s home. However, his three children eventually inherited the home, and the widow agreed to a settlement in 2015. Even murkier is the case of Gary Coleman, star of the TV series “Diff’rent Strokes.” Coleman died at age 42 after a fall in his home left him in a coma with a brain hemorrhage. Coleman and his ex-wife, Shannon Price, divorced in 2008, and the actor left his estate to Anna Gray, his personal assistant and former girlfriend, in a 2005 will. Price claimed Coleman created a 2007 codicil that left his assets to her, so the battle dragged on for years. The lesson here? The bigger they are, the harder they fall? Perhaps. But there is also real wisdom to be gained: Don’t do as these celebrities did. Seek professional help with estate planning — long after you’re gone, your loved ones will thank you for it.
In November 2020, after 20 years of leading the high-flying retailer Zappos, Hsieh died alone without a will at age 46 from injuries caused by a fire he set himself, leaving a $500 million estate. He had jotted many of his final wishes only on sticky notes, so his family and friends are still battling in court. After the artist formerly known as Prince died in 2016, no fewer than 700 people claimed to be his descendants. Without a will or named executor, the artist’s estate remained unsettled for years as lawyers, bankers, advisers, and heirs haggled over it. It took DNA testing to clear the fog, qualifying his sister and five half-siblings as his rightful heirs. Relatives of the beloved comedian Robin Williams mounted a long and bitter legal fight over his estate, estimated at more than $100 million. His widow, Susan Schneider Williams, claimed Williams intended to leave
While living celebrities claim an outsized share of our attention, many keep grabbing headlines long after they die. Among crazy celebrity probate cases, few have made a bigger mess than celebrated entrepreneur Tony Hsieh.
Photo: Eva Rinaldi
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