The Future Estate
  Volume 6, Issue 6, Summer 2015
Will

About My Firm

Law Office of

Christopher Guest, PLLC   

888 16th St., NW, Suite 800
Washington, DC 20006
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202.349.3969 (DC)
703.237.3161 (VA)
703.574.5654 (Fax)
Admitted in DC, VA, MD and NY


Newsletter Spotlight
-What is the Five by Five Power of Appointment?
-Basics of Estate Planning: Five Wishes
-Estate of The Month: Jazz Great King has Royal Estate Problem
Law Office of Christopher Guest
 
 A Law Office Planning for the Future
 
   


CMG Bio

The summer is flying by. I hope you are enjoying it. If you haven't had time you still have August. For me, August is always a little slow. To fill some of my time, on August 13th, I will be a speaker at a CLE on the Probate process. 


This month's topics include: more on specific power of appointment - the five by five power, the Five Wishes document, and the estate of the month is the problems facing jazz great B.B. King's estate.


 

Sincerely,

  

Chris

  

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What is the Five by Five Power of Appointment?

  

I

n my last newsletter, I wrote about the use of powers of appointment in a person's estate plan. This month I will describe more specifically one type of power of appointment.


As a reminder, powers of appointment ("PoA") arise when the grantor/testator authorizes an individual, also known as the holder, to dispose of certain property/asset that is controlled by the will or trust. The grantor may give either a general or limited power of appointment. Many times, when giving powers to an individual, a major concern is to ensure that the value of the assets is not included in part of the holder's estate for estate tax purposes at the holder's passing. 


 

One way to avoid including the assets under the individual's "control" and not be included in that individual's taxable estate is by utilizing the "Five by Five power." Under this power, individuals are annually able to access the principle or corpus of a trust in an amount equal to the greater of $5,000 per year or 5% of the fair market value of the trust each year. Hence, the name  "Five by Five power." 
  


Basics of Estate Planning:

Five Wishes

  

Will

In the past, I have written about how an advanced medical directive ("AMD") allows an individual to lay out medical directions to caregivers, loved ones and medical personal. An AMD is important in detailing an individual's desires for medical care, particularly towards the end of their lives. A properly written AMD would lay out things such as recitation orders, detail with whom the decision making powers lay when they were incapacitated, and any other medical wishes they may hold. Over the last several years, an alternative document called the "Five Wishes" has emerged for those individuals wishing to give more life and body to their end of life requests. The Five Wishes document is valid in 42 states and D.C. Similar to your will and AMD, this document must be signed and witnessed, and it is important to inform people that you have such a document, to ensure that your wishes are followed.


 

The Five Wishes document was the brainchild of Jim Towey. Towey spent 12 years working with Mother Teresa and became inspired by her work to help patients find a better way to deal with end of life planning. The Five Wishes document is described as "the first living will that talks about your personal, emotional and spiritual needs as well as your medical wishes." Towey believes that the major difference between this document, as compared to traditional documents, is that it not only discusses a wider range of wishes, but also does so in a way that makes it easy for others to truly understand your needs.

 

More in the Summer 2015 Newsletter  

 

Estate of the Month:

B. B. King 1925-2015 
Photo by Jean-Luc Ourlin-1977
B orn Riley B. King in 1925, blues legend B.B. King  passed  away in Las Vegas on May 14, 2015. King was known for songs such as  T hree O' Clock Blues   Every Day I Have the Blues   Why I Sing the Blues , and  The Thrill is Gone . King was  inducted  into the Rock and Roll Hall of Fame in 1987. He died from complications of Alzheimer's disease along with congestive heart failure and diabetic complications. However, several of King's daughters  allege  that he was murdered through the use of poisons meant to cause stroke like effects. ). Needless to say, the fight over his estate began almost immediately.

A will dated January 18, 2007 named LaVerne Toney to be personal representative of King's estate. Toney was King's manager and oversaw King's road show for 39 years. Even if King's daughter's allegation were not enough several other issues have arisen. First, several of King's 15 children petitioned to have Toney removed as personal representative. The petitioning children had two main reasons to remove Toney. First, two of King's children alleged that both Toney, along with King's personal assistant, poisoned King to hasten his death. That claim fell apart with the recent release of an autopsy report confirming that King died from complications that arose from Alzheimer's disease, along with coronary disease, heart failure and the effects of Type 2 diabetes and not poison.

 
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Copyright © 2015 Law Office of Christopher M. Guest, PLLC
This newsletter was prepared by the Law Office of Christopher Guest, PLLC as a service to clients and friends of the firm. It is not intended as a source of specific legal advice. This Newsletter may be considered attorney advertising under the rules in some states. Prior results described in this newsletter cannot and do not guarantee or predict a similar outcome with respect to any future matter that the firm or any lawyer may be retained to handle. Case results depend on a variety of factors unique to each case and circumstance.