Hart Law and Social Responsibility

Mae Creadick

By Attorney, M. Mae Creadick

Did you know that when you choose The Hart Law Group, you are helping to support area nonprofits and needy community members?  Since I began work at the Hart Law Group on May 1, 2013, I’ve observed how our dedicated staff is giving back to our community. 

We aspire to live up to the words of the great late Nelson Mandela:

"For to be free is not merely to cast off one's chains, but to live in a way that respects and enhances the freedom of others." 

This year, after leaving fourteen years of legal aid law practice, I feared that I would lose sight of my passion for community service.  Being an effective legal aid lawyer was as much a part of my identity as being a good mom, wife and daughter.  But luckily, I landed at The Hart Law Group.

What has Hart Law done to help our neighbors this year, you might say?  I give you exhibit A:  within the first 26 days of joining the Hart Law Group, our esteemed leader Mary Hart approved my acceptance of two cases from the Mountain Area Volunteer Lawyer (MAVL) program of Pisgah Legal Services (PLS). See www.pisgahlegal.org.  Both cases involved complicated time-consuming litigation on behalf of tenants whose landlords breached the implied warranty of habitability by refusing to make essential repairs to their apartments, causing the tenants to become very sick.  After filing Complaints on behalf of these tenants, the landlord’s counsel requested a jury trial.  Here we go!  It is important to note here that I am just one of hundreds of MAVL attorneys in the PLS service area who donate their time to help PLS’s clients with their most basic needs for safety, housing and essential services.  Observing the generosity of these MAVL attorneys over my years at PLS was truly awe inspiring. 

We also have exhibit B (complete with photographic evidence).  In August 2013, Hart Law sponsored an art auction wine-tasting fundraiser for Pisgah Legal Services following Pisgah’s loss of vital funding to serve victims of domestic violence.  We co-sponsored this event with the wonderful guys at Appalachian Vintner.  Check them out at www.appalachianvintner.com.

Everyone at the Hart Law Group pitched in art, food or funds to help support this fundraiser.  By now, I’m thinking “HOW did I score this AWESOME job?!”  Shortly after the PLS event, our firm decided to host a law conference to assist another area nonprofit, the Campaign for Southern Equality (www.southernequality.org).  Visit www.lgbtinthesouth.com to learn more about this event, titled LGBT in the South: Advocacy Within and Beyond the Law.

Lastly I give you exhibit C:  the staff of the Hart Law Group.  As I now enter my 8^th month as the civil litigation attorney at Hart Law, I’ve observed my co-workers regularly accepting pro bono cases.  Attorneys Joanne Dykes and Mary Hart help MAVL clients with essential end-of-life planning documents and resolve disputes arising out of probate. Real estate attorney Margaret Toms works with MAVL clients on real estate disputes or real estate documents that protect their rights.  The Hart Law support staff is involved in events supporting area nonprofits or those who are less fortunate.  As I write this, I know staff is gathering food and toys for families to adopt for the holidays.

Why is this so important, you may ask?  Because a strong pro bono culture at the Hart Law Group makes us better advocates for our clients.  Our social responsibility makes us an integral part of our community.  Regular community service work strengthens our morale, and enhances our firm’s reputation both in the general public and the legal community.  In addition, a strong public interest law firm is enticing to lawyers with integrity and a strong sense of justice: essential traits in a good attorney. 

I feel fortunate to have found a private law firm that supports the value of pro bono work and supports lawyers who strive to “live in a way that respects and enhances the freedoms of others.”  For more information about The Hart Law Group, visit our website at www.thehartlawgroup.com and “like” us on Facebook.

M. Mae Creadick

I thought keeping my Will updated was sufficient...

"Bob and I were vigilant about ensuring that our Will and Trust documents were up to date.  Being a blended family, we knew the importance of clearly designating our wishes for transferring family assets should something happen to one of us.  We were certain we had done everything right, until Bob suddenly passed away and I found out differently. As it turned out, the large life insurance policy Bob had through his employer of 30 years still had his ex-wife listed as beneficiary. This designation took precedence over what we had carefully constructed in our Will."

Many people incorrectly assume that because they have updated their Will, their final wishes are in place. As a general exception to this belief, beneficiaries designated on financial accounts override the Will.

Best Practice: periodically review beneficiary listings on your financial accounts to ensure they are in accordance with wishes and those expressed in your Will. 

Typical financial accounts that have beneficiary designations include:

• Life Insurance Policies
• Annuities
• Bank Accounts  (these can be co-owned, Payable on Death (POD), Transfer on Death (TOD)).
• Retirement accounts, such as 401ks, IRAs.
• Pension plans
• Stocks, Bonds (including Savings Bonds), Money Market Certificates
• Certificates of Deposit (CDs)

Estate Manager PRO (https://hartlawgroup.myestatemanager.com/), a FREE RESOURCE available via our website, helps you plan, prepare for, and manage life transitions.  You will find best practices (https://hartlawgroup.myestatemanager.com/#step/organize-beneficiary-designations/97) and professionals - when needed, to help you. 

My kids have different strengths...do I pick one or both?

"I love both of my kids equally - but it is clear to me and everyone else for that matter, they have very different strengths.  Kevin is the analytical thinker.  No surprise – he has pursued a career in accounting!  He thrives in situations that require order and logic.  Jamie, on the other hand, is talented also  - but not in finance.  Her emotional intelligence and the ability to perceive the unspoken is amazing!  She can be in a room for less than five minutes and be able to perceive the relational dynamics – even without knowing any of those present.  I’m blessed - two wonderful kids with strikingly different gifts.

Though not done in most families, I decided to utilize both kids, each serving a different role, in creating my Estate Plan.  It makes all the sense in the world.  Kevin will be responsible for handling my financial affairs, while Janie will be the key decision maker with respect to my medical treatment.”

It is often assumed that, as part of an Estate Plan, a single person should be named to handle one’s financial and medical concerns.   Surprisingly, selecting different individuals for financial, legal, and/or medical decisions may be the best choice in certain family situations.

We’ve learned from thousands of families who have been there before.  Taking the time to thoughtfully consider your approach can reduce family tension and stress.  Be sure to consult an estate attorney to determine best options for your circumstance.  Estate Manager PRO (https://hartlawgroup.myestatemanager.com/), a FREE RESOURCE, helps you plan, prepare for, and manage life transitions.  You will find step-by-step education (https://hartlawgroup.myestatemanager.com//#step/selecting-an-executor-or-personal-representative/95) and best practices to help you.

Communicating A Loss

"I held the envelope and stared at it for what seemed like an eternity.  Mr. and Mrs. Jerry Townsend - the line pierced my heart.  I know it wasn't sent intentionally to hurt my feelings, but it is hard enough being the first Holiday Season without him.  I didn't expect to be getting cards addressed to us both."

Coping with the loss of a loved one is always challenging – but especially during this season of Joy and Celebration.  For those left behind, even small incidents can cause feelings of isolation.  We've learned from thousands of families who have been there before - details such as notifying friends and family (even distant relatives) often get overlooked.The result can be unexpected, painful moments. 

Learn about best practices(https://hartlawgroup.myestatemanager.com/#step/notify-family-and-friends/10) and helpful tips on subjects such as “notifications”  and other life planning topics at EstateManagerPRO: https://hartlawgroup.myestatemanager.com/, a FREE RESOURCE that helps you plan prepare for and manage life's transitions.

If you are coping with a loss this Holiday Season we are thinking of and praying for you.  You are not alone.  The following ideas may help:

• Offer Yourself Grace: Don’t fall prey to the belief that you should have to feel a certain way.  Allow yourself to feel sad, let the tears flow if they need to, and if a hint of joy and happiness appear – don’t feel guilty about enjoying those moments as well.  Be kind to yourself and allow your feelings to just be what they are, not what you or anyone expect them to be.   
• Ask for and Accept Help: In times of need others want to help – but often don’t know how.  Don’t be afraid to speak up - let them know what you need and how to help you.  If you want to talk about what you are experiencing or just want to be left alone – let them know. 
• Make An Impact: One of the best ways to cope with sadness and grief is to shift the focus to someone else.  Choose a person or organization that could use your compassion and help this season.  Donate your time or financial resources.  You may be surprised at the joy these actions can bring to your Holiday. 
• Remember that this too will pass: As hard as it is right now, you will make it through, and you will be stronger on the other side.  Your pain will not always be as intense and with time it will get easier.

 

2010 Tax Act

February 8, 2011

            As you may know, the Federal government enacted a new tax act at the end of December 2010.  This is an important law in many ways.  It extends the 2001 and 2003 income tax “cuts” until the end of 2012.  It also makes some significant changes to the estate, gift and generation-skipping transfer (GST) tax laws.  This blog will discuss some of those changes.

            The very good news is that almost all of the estate, gift and GST tax changes are favorable.  However, these changes are temporary only and will expire at the end of next year (2012) unless Congress enacts other legislation.  Because relying on Congress to the “right” thing is risky, we think it unwise for taxpayers to plan for the long run based upon these temporary law changes.  Nonetheless, these changes suggest that all taxpayers review their estate plans as many plans may not accomplish the same goals under the new tax laws as the taxpayer might intend.  Also, the temporary tax law changes provide significant planning opportunities which we wanted to bring to your attention.

            The 2010 Act increased the estate, gift and GST tax exemptions to $5 million.  However, under the law as written, those exemptions will drop to $1 million (somewhat higher for GST tax purposes) after 2012.  Different sized exemptions can result in a significant shift in wealth depending upon when someone dies.  If you already have estate planning documents, we suggest you have your documents reviewed to ensure they reflect your wishes no matter what your estate and GST tax exemptions are when your wealth passes to loved ones.

            In addition, the top estate, gift and GST tax rates will be only 35% for this year and next year.  Beginning in 2012, the rates are scheduled to increase to 55% (and 60% for some).  The effective rate of estate and GST taxes also can result in significant changes in what each or your family members receive.  We think it is appropriate for people to review their estate plans for the disposition of their property whether the rates of tax are very high or not.

            Also, we think that it is appropriate for taxpayers to consider using their increased gift and GST tax exemptions soon.  Obviously, for many people, a lifetime gift of $5 million is much too large.  However, a smaller gift using a part of the larger exemption may be wise to consider.  In addition, it is possible for some individuals to create trusts of which they could be a beneficiary but still keep the trust out of their taxable estates.  If you are married, you and your spouse can use part of the $5 million gift and GST exemptions for each other (and other members of your family).  This takes careful planning in the structure of trusts but, properly formed, trust assets can be made available for you and your spouse without causing the assets to be included in either of your taxable estates. 

            You may have read or heard that the 2010 Act allows a surviving spouse to inherit the unused estate tax exemption of the first spouse to die. Some articles in the popular press have contended that this opportunity simplifies estate tax for all but the most wealthy Americans.  That simply is not true.  First, the law that allows for the inheritance of the exemption by the surviving spouse expires at the end of 2012.  So relying on it is not sensible in our view.  Second, even if the inheritance of exemption law becomes permanent, we think it complicates rather than simplifies planning for almost every married couple.

            I hope this information has been helpful to you.  Mary Hart

Introducing EstateManagerWEB

We have recently added EstateManagerWEB to our website.  This is a wonderful resource for those who have a loved one who is dying or has recently died.  This resource is free to the public through our website, http://www.thehartlawgroup.com/. Scroll to the bottom of the homepage and click on the EstateManagerWEB box to learn more.  There you will find instructions on how to use, or help others to use, this resource to organize and simplify those things that need to be taken care of when you lose a loved one. You will find week by week instructions, checklists, and more.  If you have any questions about how to use this resource, or if we can assist you in any way, please feel free to contact us at (828) 271-4278 or via email at maryhart@thehartlawgroup.com.  Have a great day!  Mary Hart

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