1973, June, Pg. 1. Estate Planning for the Client with a Terminal Illness.

• Author: by Joseph E. Doussard

2 Colo.Law. 1

The Colorado Lawyer

1973.

1973, June, Pg. 1.

Estate Planning for the Client with a Terminal Illness

1Vol. 2, No. 8, Pg. 1Estate Planning for the Client with a Terminal Illnessby Joseph E. DoussardSuppose your client walks into your office one day and tells you that he has incurable cancer and has a limited time to live. He wishes to review his estate plan and asks you for assistance. What should you do and how do you proceed?

Whatever you do, you have been presented with a unique opportunity to do some estate planning which will save your client money and yourself hours of work which you might otherwise have to spend after his death. The purpose of this article is to describe some of the practical aspects of planning for the client with a terminal illness.

FuneralAlthough the funeral will occur after the client's life ends, it is perhaps the first item he should consider. Not surprisingly some clients may find this a difficult subject. Others may see the funeral as irrelevant, stating that they do not care what happens to them after they are dead. However, your client should be encouraged to consider the type of ceremony and the amount he feels should be spent. The grief-stricken family can thus be spared the burden of making decisions about type of service and choice of casket, and can be protected from making lavish expenditures which often occur under such circumstances.

A sensible approach is for the client to make his own funeral arrangements and then advise the family, fiduciary and attorney of the plans. He might consider purchasing a prepaid funeral contract and a cemetery lot to make certain his family is relieved of decision-making and to ensure that his wishes are fulfilled. In addition, planning the funeral arrangements can help restore a sense of being in control over his affairs at a time when many such clients feel they have no control over anything that is happening to them.

Anatomical GiftsAt the same time your client is thinking about his funeral he may want to consider leaving all or part of his body to medical research---perhaps to the University of Colorado Medical Center or some other worthy medical organization. Such a bequest is clearly authorized by section 91-3-9 of Colorado Revised Statutes Annotated (1963). When you prepare your client's estate planning documents, include appropriate language to accomplish the bequest. In addition, be aware that Colorado law

2requires the recipient of the anatomical parts to have the written consent of the testator on hand. Call the proposed donee of the remains and request that you or your client be sent authorization forms for signature. Make sure your client returns the signed forms to the proposed recipient and a copy to you.

Medical InsuranceThe role of attorney frequently requires you to give practical advice to your client and in this connection, you should review his medical insurance. There are a multitude of plans and coverages available and not surprisingly you may find that some expenses are not insured but can be by amendment to the policy. In particular, take a look at supplemental benefits coverage which pays the cost of outpatient hospital visits, office visits, drugs and equipment. If your client is a member of a group plan, there should not be any difficulty in subscribing to additional insurance even though he is very ill.

Asset LocationEarly in your interviews with the client, determine the nature and location of his assets. One of the most difficult problems an executor faces is locating assets. A great deal of time and expense can go into the effort of sending out letters of inquiry and making phone calls. Another difficulty for an executor is that assets may sit in a safe deposit box, unknown until they are inventoried and unavailable for management until they are released by the Colorado Inheritance Tax Department.

Ask your client to list all of his assets and describe their location. Should your estate plan contemplate the use of a corporate fiduciary as executor, cost savings might be achieved by placing securities in a custody account with the fiduciary, the fiduciary transferring title to his nominee. The charge for this type of account is nominal and the fiduciary is assured of the location of assets. Another advantage of this arrangement is that at the client's death and upon being qualified as to legal capacity, the fiduciary can make investment changes immediately even though the requested inheritance tax releases have not been mailed by the inheritance tax department.

PersonaltyOne problem which can break up the closest of families is the division of tangible personalty: jewelry, art, antiques, furniture and so on. Frequently, a will gives the...