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Trust Mill Fined $6.4M for Illegal Practice of Law in Ohio

Written on October 28, 2009 by Thom Cooper in Estate Planning, Planning, Trust

The Ohio Supreme Court has recently taken strong action against two co-owners in a company participating in an illegal “trust mill” operation (Columbus Bar Assn. v. Am. Family Prepaid Legal Corp., Slip Opinion No. 2009-Ohio-5336). The company and its two owners, Jeffrey and Stanley Norman, have been permanently barred from marketing or selling their trust products in Ohio after they were found to have committed “more than 3,800 acts of unauthorized law practice.”

Unfortunately, Jeffrey and Stanley Norman are not the first unscrupulous characters to try to pull one over on the general public. Trust mills exist in every state, and although seniors are often the main targets, anyone can fall victim if they aren’t careful.

The Ohio Supreme Court is making it clear in this case and other similar cases (e.g. Cleveland Bar Assn. v. Sharp Estate Serv., Inc., 107 Ohio St.3d 219, 2005-Ohio-6267) that meaningful attorney client contact is required as a prerequisite to developing a legal estate plan and documents. In both of these cases non-attorneys such as insurance agents and financial planners would normally meet with the people in their home and tell the people what legal services and documents they needed. Following that a cursory meeting or phone call with an attorney was scheduled to “rubber stamp” the recommendation of the insurance agent/financial planner. In many instances the insurance agent/financial planner would also suggest financial products such as annuities, securities or long term care insurance. Often the seniors were given false assurances that the documents or financial products would protect them from losing their assets to a nursing home. Although these products certainly have valid and appropriate use, it is outside of the competency of these insurance agents/financial planners to determine how they fit into a comprehensive estate plan.

So be wary of any will, trust or financial product that is offered without a meeting with an attorney. Be wary of anybody who is not an attorney who tries to sell you a trust or estate plan. Be wary of anybody who will come to your home or meet you at a restaurant, but has no local office or local phone number. And be wary of anybody who will have you fill out a form and sell you a trust online.

A good trust should be drafted by an experienced attorney who specializes in estate planning and who practices or is licensed in your state of residence. A good trust is drafted after that attorney has met with you, interviewed you, and given you a chance to ask questions as well.

Don’t fall victim to companies like American Family Prepaid Legal Corporation. Be wary, be aware, and be willing to pay for an estate plan that will legally protect your assets and your family.

If you have any questions about the legality or adequacy of any planning which you have already completed email us at or call for a free review of your plan at 1-800-798-5297.

Who Inherits the Jewelry, Family Pictures, Your Tools and Other Decisions You Should Make Before you Die

Written on July 22, 2009 by Thom Cooper in Estate Planning, Planning, Trust

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We all want our kids to remain friends after we die, unfortunately it’s easier than you think to create a situation putting your beneficiaries in conflict. Take the case of the Stiffles (not their real name). Nice family. Six kids. The Stiffles completed basic estate planning, created a living trust that took care of splitting their real estate and financial assets equally among their children. There was a General Asset Assignment that made sure that the remaining “stuff” would not have to go through probate. Dad appointed his oldest son, Jim, as successor trustee because he was “good with money”.

Mom died and Dad was soon to follow, as often happens with couples that have been married for many years. Following a beautiful funeral service for Dad, Jim came in for his postmortem consultation and brought the family so that everyone knew what was to happen. It was clear to all that Mom & Dad wanted the real estate split equally – no problem. It was clear to all that Mom & Dad also wanted the financial assets split equally – no problem. But, what about their “stuff” – who was intended to get what? This is where the problems began. Mom had a small diamond ring that she promised to … all three girls and one of the granddaughters, at one time or another. Mom was getting a little forgetful near the end, but each of the girls was looking forward to having that memento. And Dad had told Jim and Jeff that they could have his tools – how would they split them so that it was even? Jeff really wanted the antique chisel and Jim did as well. So it went with other possessions that were maybe not high-dollar items, but meant something to one or more of them.

To help sort through the situation, we were able to work with Jim to provide some options: (1) they could have a family auction where each could bid with their share for items most important to them; (2) they could have a silent auction where each got what they requested and if there was a tie, it was settled by picking the longest straw (3) they could have a round robin where each could pick one item per round. If none of these worked, they could have a formal sale with an outside auctioneer valuing the items and allowing all comers to bid. Luckily, the family chose the family auction and all walked away feeling good about the distribution of the stuff.

What about your stuff? What’s the best way to keep your family from facing a bad situation? The best way is to make your wishes clear in your living trust. You can list items and their corresponding beneficiaries in the document so that there is no question about your wishes. If you are unsure who should get what, you can define the process, such as a public sale or a private family auction, that your trustee will use to distribute these items. Remember, the clearer you are, the easier it will be for your trustee and your family after you’re gone.

Baby Boomers may be forced to leave their heirs nothing

Written on July 16, 2009 by Thom Cooper in Case Study, Estate Planning, Nursing Home Planning, Planning, Trust

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A recent article in the Wall Street Journal gives a great case study on how “millions of families are struggling with new financial realities.” The article mentions one solution might be to “leave less to your heirs, or even nothing at all.”

But there are solutions. Find out how you can have your cake and eat it too at the Thom L. Cooper Co.

Let us show you how you can have:

- a guaranteed pension amount
- an option to leave it to the kids if you don’t need it, and,
- Nursing home protection for your money if you or your spouse go to a nursing home.

Read the original article

Who will care for my disabled child when I am gone?

Written on July 15, 2009 by Thom Cooper in Case Study, Elder Law, Planning, Trust

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The Facts: Jack is fifty years old and has Down’s Syndrome. His mother is eighty-three years old and is a widow. Jack’s mother was an only child; Jack is an only child.

The Problem: Jack’s mother was recently diagnosed with Stage Four lung cancer. She has decided not to go through a second round of chemotherapy or radiation. Jack’s mother is afraid – not of dying, per se, but of leaving Jack alone in a world that he doesn’t completely understand.

Unfortunately, this scenario is one that many attorneys either don’t understand or can’t appreciate on a personal level. Maybe their suggestion is for Jack to be committed to an institution for people with mental or physical disabilities. Maybe their suggestion is to find a distant relative who can care for Jack, removing him from the only home he has ever known. For Jack’s mother, neither of these scenarios presented an answer that she could rest with at night. After meeting with countless attorneys, Jack’s mother came to the conclusion that the only way to ensure Jack’s safety was for her to live forever. But she knew that her time was coming to an end.

At Thom L. Cooper Co., LPA, we see many clients who face scenarios similar to Jack and his mother. Sometimes, a simple trust presents the best solution – one that provides for a trustee to manage a disabled child’s assets so that he or she can live independently for as long as possible without interference from the court system. Other times, a more complex planning strategy needs to be implemented in order to preserve a parent’s assets so that there are options when a disabled child is left alone. The good news is that there are solutions. The bad news is these solutions often involve legal consequences that extend beyond the daily care of the disabled child; they often include the care of the parent as their own health fails. There is help – you just have to know where to look.

The Solution: If you or a loved one are planning for the care of a disabled child, your best option is to pursue a life plan with a certified Elder Law attorney whose expertise can help construct a plan tailored to a client’s specific, special needs. An attorney with experience is great; an attorney with experience who listens and cares is better.

FAQ about Living Trusts

Written on May 26, 2009 by Thom Cooper in Elder Law, Trust

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Today, I will answer a couple of questions I am frequently asked about Living Trusts: Is it Hard to Change my living Trust? When would I want to make a change to my Living Trust?

It is simple to change your living trust. We often refer to this as amending your trust. An amendment is a change to the terms of your trust.

Typically, there are two types of changes that you might want to make to your living trust. The first type of change involves making a minor change to your plan, such as adding a specific gift for a grandchild, or changing the beneficiary, or naming a new or different successor trustee. Our office provides sample amendment forms as part of your trust documents to assist you in making such amendments. You can also make minor changes by crossing out and changing any item and then the Settlor or Settlors initial and date the amendment.

The second type of change involves preparing a more complex amendment. This might be the result of serious health changes, family problems, dramatic change in assets, or modifications required to keep your plan current with changes in the law. Typically, this type of amendment should NOT be done on your own; it is a good idea to seek professional advice. If you are already one of our living trust clients, amending your trust is part of our on-going maintenance of our trust - just call for a trust review, we will be happy to review your trust and assist you in making any necessary changes. We also provide consultation and assistance for new clients.

Case Study: A Trust for a Disabled Child

Written on March 31, 2009 by Thom Cooper in Case Study, Nursing Home Planning, Trust

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Margaret and Sam have always taken care of their daughter, Elizabeth. She is 45, has never worked, and has never left home. She is “developmentally disabled” and receives SSI (Supplemental Security Income). They have always worried about who would take care of her after they die. Some years ago, Sam was diagnosed with dementia. His health has deteriorated to the point that Margaret can no longer take care of him. Now she has placed Sam in a nursing home and is paying $4,000 per month out of savings. Although Margaret is satisfied with the nursing home Sam is in, she is worried that there will not be any money left to care for Elizabeth. The facility has a Medicaid bed available for Sam if he were financially eligible. However, according to the information Margaret received from the social worker, Sam is $48,000 away from Medicaid eligibility. Margaret wishes there was a way to save the $48,000 for Elizabeth after she and Sam are gone. There is. Margaret can consult an Elder Law attorney to set up a “special needs trust” with the $48,000 to provide for Elizabeth. As soon as Margaret transfers the money to the trust, Sam will be eligible for Medicaid. Elizabeth won’t lose her benefits, and her security is assured. Of course, all trusts must be reviewed for compliance with Medicaid rules. Failure to report assets is fraud, and when discovered, will cause loss of eligibility, repayment of benefits, and perhaps even criminal penalties.