Law Office of Paul Black - August 2021

Law Office of Paul Black - August 2021

404.410.6820

www.Georgia-EstateLaw.com

August 2021

The Art of the Difficult Conversation WHAT BEING AN ATTORNEY TAUGHT ME

In law school, you learn how to navigate laws and write legal paperwork, but those are not always the immediate skills your clients need most. Like listening (which I covered last edition), one of your most important skills is a willingness to have difficult conversations. I started thinking about this because of a recent news story about Naomi Osaka. “When you are having a tough conversation, the path of least resistance is not the way you want to go.” Osaka is a world-famous tennis player who has even beaten Serena Williams, and she has decided not to speak to the press any longer. Why? That part of being a professional athlete has always made her extremely uncomfortable, and although she is giving up many sponsorships by doing so, she decided that path was best for her going forward.

of sports — and I grew a lot of respect for her in making such a difficult decision, choosing the road less traveled. Unfortunately, many of my clients are forced to make uncomfortable decisions all the time. It is an important part of my job to have those difficult conversations to ensure my vulnerable clients make the right choices for themselves. A country song lyric by Jason Isbell goes, “The right thing’s always the hardest thing to do.” So, what does it feel like when you enter a serious conversation with a stranger? Does the “right thing” mean telling them what will make them feel better? Or is it better to explain what will affect the short-term and long-term future? When you are having a tough conversation, the path of least resistance is not the way you want to go. You can know all the laws in the world, but avoiding those moments can make all the difference between a terrible lawyer and a good one. For example, if I am working with a married couple and the husband has dementia, the wife may be initially hesitant to believe that she must become the decision maker for him. Or, clients may bring forth ideas for how to solve their dilemma but not fully understand

how the law can complicate their plans. Walking through every single step of the law, a client’s emotions, and how we can work out a strategic approach not only puts the power of their situation back into a client’s hands, but it also makes me feel like I am doing my job. I will always want my clients to understand their options and how each choice can change their future. I know it is not fun to be asked a bunch of questions, though. I recently went to a medical provider and noticed I was feeling a little exposed as they barraged me with questions about my health and personal life. I could only imagine what it must be like for clients, exposing their private feelings, frustrations, nightmares, and dreams for the future. If there is anything being an elder law attorney has taught me, it is that being “right” is far less important than getting it right. It is impossible to represent someone who does not trust you or talk to you. Just like every person is different, every case is different. As with all difficult conversations, I cannot assume anything — I can only hope that by engaging in them with an open mind, I can learn how to earn my clients’ trust.

This is a huge institutional change for athletes that may have big implications in the future Do you have estate planning or elder law-related questions? Write to me at [email protected] with “Asked and Answered” in the subject line. Your identity will be kept confidential. The opinions offered in this column are not intended to replace or substitute any financial, medical, legal, or other professional advice. -Paul Black

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Lincoln’s Law

THE REVENUE ACT AND THE HISTORY OF THE FEDERAL INCOME TAX

Even with the extended May deadline, we are well past tax season, so why talk tax history now? As it turns out, it was in August way back in 1861 that the Revenue Act was passed, which imposed the first federal income tax. If you are trying to recall your American history lessons, you may have already figured out that it was President Abraham Lincoln who signed this bill into law. A LOOK AT THE FIRST TAX The Revenue Act called for a 3% income tax on Americans making over $800 a year. That’s almost $26,000 in today’s dollars. The tax was levied primarily to fund the Civil War. While federal income tax dollars are spent in myriad ways today, defense remains a major category. About 16% of taxes

collected for the 2019 tax year were spent on U.S. military and defense.

CHANGES OVER TIME About a decade after the Revenue Act was passed, it was repealed. While it was possible to coax income taxes out of Americans during wartime, there was significant opposition to taxation following the end of the Civil War. It wasn’t until the 16th Amendment was ratified in 1913 that the federal government once again got the power to tax individuals on their income and to spend the money how government officials saw fit, rather than in proportion to state populations.

like Social Security, Medicare, and veterans’ benefits; discretionary spending on defense, education, transportation, and health; and finally, interest on the national debt. As the old saying goes, two things are certain: death and taxes. However begrudging Americans are about paying taxes these days, income tax has become a given.

Since then, taxes have been used in three main ways: mandatory spending on programs

Asked and Answered

Dear Paul,

to charities, you may need different “buckets” to hold assets to meet different goals.

Remainder Trust is usually deciding what assets you want to put into it, and then finding a trustee who can manage it for a reasonable fee. If there are still other assets that either do not produce much income for you or that you want to go ahead and put toward charitable purposes, you could put some of them into a Donor Advised Fund. Assets you put into a Donor Advised Fund do not provide ongoing income to you, and you will pay an asset management fee to whomever is managing the fund. If you do not use a Charitable Remainder Trust or Donor Advised Fund or make charitable gifts during your lifetime, and you leave a taxable estate, the IRS is going to take about 40% of your estate assets in excess of the current estate tax exemption amount (currently $11.23 million). That’s all the incentive most folks need to give generously to charity! There are many more details to consider, but I hope this general overview helps you get your bearings. Feel free to reach out if you want to discuss these options in greater detail.

I am in my 80s and I have lived very frugally in my adult life, and I made a good living and invested well. I never married, and I have no children. My net worth is substantial (well over $10 million), but I want to enjoy much of my income now, but leave some money to my grandnieces and nephews for their educations, and the rest of it to charities upon my death. I have read about Charitable Remainder Trusts and Donor Advised Funds as potential options. Can you explain these two options to me in plain English?

The first bucket of assets might be a Revocable Trust that would leave money to your grandnieces and grandnephews via a minor’s trust to provide for their health, education, maintenance, and support based upon criteria that you specify. You can also include some charitable bequests in your Revocable Trust, but those might be relatively small bequests compared to your other buckets described below. To fulfill your charitable giving goals, you first need to decide how much income you want to keep receiving from your appreciated assets (like rental real estate or dividend-producing stocks). If you want to keep receiving income from certain assets but leave those assets to specified charities upon your death, a Charitable Remainder Trust can do exactly that. Significantly, it also provides a discount on the income tax you would pay on the income you receive from assets inside the CRT, which is another plus. The trickiest part of a Charitable

Anonymous

Dear Anonymous,

First and foremost, congratulations on amassing such a substantial net worth over the past several decades. I see clients all across the socioeconomic spectrum, but very few of us (about 1% of us) ever amass eight figures of net worth. Since you want to make gifts both to family members and

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In October 2017, California was in flames. One of those blazes was the Tubbs Fire, which charred its way through 36,800 miles of forests and vineyards in both Napa and Sonoma County. More than 5,600 buildings were destroyed, and 22 people were killed. But when the flames finally died, a four-legged hero emerged from the ashes: Odin, the Great Pyrenees dog. Odin belonged to Ariel and Roland Hendel, two farmers in Sonoma County. When the Tubbs Fire threatened to char their home, they packed up as many of their animals and precious items as they could. Unfortunately, their flock of goats wouldn’t fit in the getaway vehicle — and their goat-herding dog, Odin, refused to abandon them. Great Pyrenees are prized livestock guardian dogs that will do anything to protect their charges, and Odin lived up to his breed.

MEET ODIN, THE FIREPROOF DOG

THIS GREAT PYRENEES GUIDED HIS GOATS THROUGH A WILDFIRE

“I said, ‘Okay, Odin, take care of the goats. You’ll be fine,’” Roland Hendel told ABC News.

Both Hendels were sure they were seeing their dog for the last time. Their hearts sank even further when they heard their home had burned down completely. But on a trip back to examine the ashes, something amazing happened.

“In the distance, I saw Odin’s tail,” Roland told ABC. “Sure enough, there was Odin coming at the head of all his goats.”

Not only did Odin survive the fire and run right up to the Hendels for belly rubs, but he also kept every single one of his goats safe! A few wild deer even joined the goats, and he shepherded them through unscathed. The incredible story made the news, and Odin became a local legend. Unfortunately, even legends do not live forever. This April, Odin passed away after a long life of tail-wagging, treat-eating, and goat-saving. In his honor, Great Pyrenees Rescue of Missouri gifted the Hendels two new Great Pyrenees pups: Buddy and Snowflake. They are following in Odin’s pawsteps, protecting the goats he loved so much.

SUMMER VEGETABLE GREEK SALAD

Inspirational MOMENT

For the vinaigrette: • INGREDIENTS

DIRECTIONS

2 tbsp red wine vinegar 1 tsp Dijon mustard 1 garlic clove, minced 1 tsp dried oregano

1. In a medium bowl, whisk together vinegar, mustard, garlic, oregano, honey, and salt. Slowly drizzle in the olive oil, whisking until well combined. 2. In a large serving bowl, toss together the romaine lettuce, tomatoes, cucumber, bell pepper, red onion, parsley, olives, and feta (as well as the chickpeas or salami, if desired). 3. If you plan to serve all the salad at once, drizzle the dressing over the salad to lightly coat, then toss to combine. Otherwise, store the vinaigrette and salad separately, then dress each portion before serving.

• • • • • •

1/2 tsp honey

1/2 tsp salt

“The key to serenity is trusting that the universe has your back.” –Gabrielle Berstein

1/4 cup extra-virgin olive oil

For the salad: •

1 head romaine lettuce, chopped 1 cup grape tomatoes, halved 1 small cucumber, seeded and chopped 1 cup yellow bell pepper, chopped 1/4 cup red onion, finely chopped 1/4 cup fresh parsley, chopped 1/4 cup Kalamata olives, pitted and halved

• • • • • • • •

1/2 cup feta cheese, crumbled

Optional protein choices: 1 cup cooked chickpeas or 6 oz Genoa salami

Inspired by CookieAndKate.com

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Decatur Office Location: Main Location One West Court Square, Suite 750 | Decatur, GA 30030

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INSIDE THIS ISSUE

1 2

The Art of the Difficult Conversation

Do You Know Which President Imposed the Federal Income Tax? Asked and Answered

3

Meet Odin, the Fireproof Dog Inspirational Moment Summer Vegetable Greek Salad

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How IKEA Is Saving the World’s Forests

Why would they buy a forest, though, of all things? The IKEA subsidiary, Ingka Group, has worked with The Conservation Fund in the past, a nonprofit that protects over 8 million acres of forest in the U.S. from fragmentation and development. The sprawling Georgian forest is home to the valuable gopher tortoise and functions as a working forest. But what is a “working forest”? It is a forest where lumber is harvested and regrown; however, these forests are prone to being broken up into smaller segments and developed. Thankfully, The Conservation Fund and Ingka Group will ensure this does not happen through creating permanent easements, legally preventing developers from splitting the forest up into smaller pieces. This will make a significant difference in protecting the gopher tortoise, a priority species for conservation. With over 616,000 acres of forest in the U.S. and Europe, though, the Ingka Group deserves many accolades for ensuring the highest international standards for good forest management. These forests make a difference for their local communities, too. “Well- managed forests provide essential benefits, including clean water and important wildlife habitat, as well as mitigating climate change,” Larry Selzer, president and CEO of The Conservation Fund, told GNN. In addition to forest stewardship, IKEA has announced they will also begin buying used IKEA furniture from customers for resale, while electric vans and eco-friendly materials will be used for both packaging and products. Thank you, IKEA, for helping the world stay a little greener!

Profiles in Perseverance

IKEA Saves 11,000 Acres of Georgia’s Forests

We normally associate IKEA with blissfully affordable furniture and cafeteria food, especially their Swedish meatballs. But did you know IKEA is also devoted to protecting the environment and striving to become a carbon neutral company? To prove it, IKEA purchased over 11,000 acres of forest in Altamaha Basin, Georgia, that would’ve been demolished for development. As part of IKEA’s strategy to reduce more carbon than it creates, the forest will remain intact to consume the CO2 in our atmosphere, creating a healthier environment for all of us.

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