Ann recently came to the office to have her estate plan updated. She had been working with an attorney from a large firm and felt that, in recent years, he did not listen to her and had become unresponsive. The attorney had been her late husband’s friend.

Ann is 79 years old and well-to-do. She has a very business-like demeanor. She enjoys good health. Ann’s three children were her biggest concern. She had a problem for which she could not find a solution.

Listening to someone discuss their family problems is an acquired skill. They are typically ashamed that they have problems. They are embarrassed to talk about them. You have to listen for key words and then pry to get the conversation started. Once “the cat is out of the bag,” a sense of relief that comes over them and they open up. That pattern presented with Ann.

Her three children were as different as night and day. Ann had two sons and a daughter. The daughter was estranged from her husband but stable financially. One of the sons was very successful and was a great source of support for Ann. The third child was Charlie.

Charlie is the problem child. Perhaps the name “Good-Time Charlie” was originated to describe him. Charlie has had spotty employment throughout his life. He is divorced with two kids in college. Ann has a good relationship with the grandchildren and even Charlie’s ex-wife.

A tuition check that Charlie wrote for one of the children had recently bounced. Ann had to step up and made it good, with only hours notice.

It was the latest incident for Charlie. Ann and made two huge loans to Charlie in the past. She really regretted making the second one. She had no hopes of repayment and had told him that she would reduce his inheritance if she had to.

To top it all, Charlie now has a fatal disease. His health will slowly deteriorate.

Ann wanted to make the adjustments to reduce Charlie’s inheritance and wanted his children protected. Ann had more than enough to even things out.

The solution: Ann made specific bequests to the other two equal to the amount she had given Charlie. Specific bequests are honored before general bequests. The remainder will be divided into three shares. Charlie’s share will be further divided so that his children split half of Charlie’s share. Ann left happy!

    

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