Merchen Law

04/25/2024

When people say they want a "trust", my first thought always goes to my second favorite Princess Bride line: "You keep using that word, I do not think it means what you think it means."

First, a living trust, which is what most people think they want when they use the word "trust", can in fact help your family members avoid probate when you die. However, contrary to popular belief, a living trust does not in any way protect your assets from creditors or serve as any protection from liability. A living trust shares liability with its creator. So the lady who slipped on your sidewalk can sue you and get the living trust assets too; those assets are just as at risk as if they stayed in your personal name.

Second, probate isn't the awful evil thing people portray it to be. In fact, a probate does quite a bit to protect survivors from fraudulent claims. In the probate process, creditors have to present their claims to the court in a timely manner, with proof the claim is legitimate, or they are forever barred. With a trust, there is no such cutoff. Why is this important? The modern world of scammers comb obituary notices and then send false bills to the estate. Most people trying to settle up a living trust will just pay the bills that come in without really checking--because they are stressed, it is a lot of work, and chances are they didn't really know that much about the deceased's day to day affairs. Scammers take advantage of that fact. Plus, with a trust there is no cutoff date, so those bills can trickle in perpetually. Fake claims don't work in probate as the scammers can't present any proof to the court that the claim is valid (and they don't go to the trouble as their whole approach fails once people start asking questions).

Third, a living trust only works if you put ALL of your assets into it. If you forget to properly title the assets in the name of the trust, i.e. your vacation house, your kid's car, or a boat--guess what. You have to go through probate anyway. And generally probating one asset costs just as much as if the estate contained all the assets in the first place.

There are some legitimate reasons to create a living trust, and sometimes there are good reasons to create an irrevocable trust (which is the kind of trust that really does protect assets from liability), but it's important to fully understand the purpose of probate and the protections it provides before deciding how to handle your estate.

If you have estate planning questions, especially if you own your own business or have concerns about liabilities, give us a call.

04/22/2024

Merchen Law saves clients both time and money by preventing liabilities and creating plans for long-term success.

06/14/2023

10/09/2017

I represent a number of physicians and medical practices, and recently had a client face issues with some patients who were upset at missed appointment times. It's a relatively normal issue for most clinics, but here the doc really wanted patients to understand why the wait was sometimes unavoidable. Logistically, there really wasn't a way to readjust any business practices or plan for all the contingencies that come up during the average clinical day, so we opted to help him create the following to place in his waiting rooms as a way to proactively address the concern (he has a better quality pic on the actual write-up; it didn't translate her for some reason). It remains to be seen if it will cut down on the concerns, but in working with him to put this together and going through what really does happen in his offices, I've now personally sworn never to again whine about waiting:

Why you may have to wait for your doctor….

Your time is important and delays can be frustrating. Sometimes, however, they are unavoidable and it’s equally important to understand what goes on behind the curtain in my office that results in missed appointment times. Each of the following examples are very real:

1. The patient ahead of you may have just had a heart attack while I was examining him. I am going to take the time necessary to revive him, make sure he is stable and assist with getting him to an emergency room while contacting his family and working with them to ensure someone is monitoring his care. It may cut into your appointment time.

2. The patient ahead of you may be contemplating su***de. I will take whatever time is necessary to help him, I will get him additional assistance, and I will work with whoever else is assisting to make sure the patient is safe and stable before he leaves. It may cut into your appointment time.

3. The patient ahead of you may start giving birth. I will deliver the baby. It may cut into your appointment time.

4. I may get an emergency call from the hospital or ER that a patient has gone critical—I will rush to their side, I will assist, and I may scrub in. It may cut into your appointment time.

5. The patient and their spouse ahead of you may just learn for the first time that the patient has an inoperable tumor and is not going to live more than six months. I will pray with them, I will listen to them, I will develop a strategy with them. It will likely cut into your appointment time.

6. My teenage patient may be contemplating aborting a pregnancy she has hidden from her parents. I will do everything in my power and take whatever time is necessary to help her find a couple to adopt the baby (patients I know and trust), involve her parents in the decision, and make sure she is safe. It may cut into your appointment time.

Though the reasons for the delay may not be as dire in every case as the above examples, they are just as important. Some patients just need more time to be reassured, others are facing family or personal issues and their doctor is the only person they feel comfortable talking to, and in some situations it is a celebration of good news for a patient who is pregnant and didn’t think it was possible or whose cancer has gone into remission. In every case, the patient sitting in front of me is the most important person in my world in that moment; if I worry about the length of the session, who might be in the waiting room, or keeping everything on schedule, I may miss something. I may not address some need. I wouldn’t be giving that patient the care and attention they deserve.

Hopefully you understand and agree that the above issues are worth some schedule delays. If not, it is totally understandable and my staff will be happy to refer you to another doctor.

Copyright 2017, all rights reserved. No portion may be reproduced without express authorization.

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