Miguel’s Light at the End of His Dark, Downward Spiral

In the early 1980′s, Ronald Reagan signed a top secret directive giving the CIA authority to recruit and support the “Contras” with $19 million in military aid to battle the reigning Sandinistas importation of Cuban-style socialism in Nicaragua and El Salvador.  To hide its involvement (and avoid the scrutiny of inter-governmental bodies), the U.S. Government tried to arrange funding and military supplies by means of third-parties. Does the Iran-Contra Affair ring a bell?  By the late-80′s the fallout of lawlessness, civil war, and economic devastation in several Central American countries was horrific.

Enter, Miguel, a 26-year-old Salvadoran and son of an assassinated local military leader.  Miguel had served seven years in the military (a seriously stigmatic credential). Unemployed with no hopes of finding work in El Salvador, he was expected to provide for an aging and sick mother, a young daughter, and another one on the way.  He decided to enter the United States in hopes of finding work so he could send money to his family and, hopefully, one day bring them to the U.S. with him.

In 1989, MIguel fled the war-torn and lawless country of his birth, and entered the United States.  He spoke no English, and had little resources.  He lived made inner-city Los Angeles his home.  As a means of restitution or simple expediency to deal with the mass Central American exodus the U.S. had, in part, caused in its Contra scandal, a special, legal immigration status was provided to nationals of certain Central American nations (mainly, El Salvador and Nicaragua). This status, called Temporary Protected Status, allowed qualifying immigrants to obtain work authorization and remain in the United States until the government could figure out what to do with them.

Miguel was soon forced to learn the systems of justice, law enforcement, and dispute resolution of a foreign land.  Stuck in a violent part of the country, Miguel almost immediately fell into the beginnings of a dark spiral downward.  First, his landlord demanded money from him, after Miguel had resided at that location for two days. Miguel said he would give him $50, but that was all. The landlord came back drunk, tore up all of Miguel’s money and blamed his marital problems on Miguel.  The landlord’s wife scratched the landlord’s face, police were summoned, and Miguel was arrested and charged with assault for the scratches that he had nothing to do with.  Not knowing the system or the language, Miguel agreed to the District Attorney’s plea bargain: sign here and go free (actually a plea of guilty to domestic assault, with a suspended sentence and 24 months probation, because the witnesses did not appear in court) or don’t sign and spend two years in jail. Miguel signed and went free.

Next, and three years later, Miguel was buying $10 in groceries at a corner grocery store (he lived simply so he could send money home) when a Hispanic man entered the store, armed with intentions of robbing it.  When law enforcement approached the scene, the man fled, running into Miguel and dropping his groceries on the ground.  The police mistook one Latino for another, and arrested Miguel. Again, not knowing the language or the system, Miguel was charged with criminal assault.  However, the Court likely realized a misunderstanding had taken place and that Miguel was not a violent man, because it diverted the charges (meaning, if he successfully completes a program the charges will be dismissed). The downward spiral of this unfortunate immigrant was not over.

Eventually, Miguel moved to Denver to seek better employment at casinos in Central City and Blackhawk.  He continued to send money to his mother in El Salvador and his daughters were able to come to the United States themselves in the 90′s.

In 2001, Miguel purchased a car that he hoped would get him from his tiny apartment in Aurora to his place of employment in Central City.  The seller of the car agreed to allow him to keep the license plates on the car so Miguel could drive the car home.  On the way home, Miguel got a flat tire.  On the side of the road changing the tire, Miguel had the misfortune of a police officer stopping to assist. The officer ran the plates and discovered they had been stolen (not by Miguel, but the seller). Miguel was charged with theft. Given the seeming insignificant nature of the crime, he pleaded guilty and was given 45 days in jail (with 42 suspended) and 1 year probation.  Little did Miguel know, that theft, along with assault to which he pleaded guilty in 1990, is a crime of moral turpitude (i.e., a crime of conduct that is inherently base, vile, or depraved, contrary to the accepted rules of morality and duties owed between persons or to society in general, see Matter of Tran).  Crimes of moral turpitude (even for minor ones, like theft of license plates) have severe affects on the immigration status of immigrants. One can have their status completely revoked if convicted of a crime of moral turpitude. Such information is rarely disclosed to immigrants charged with such crimes and faced with a plea bargain.  This issue comes into play later in Miguel’s story.

Miguel would make mistakes in his life (who doesn’t?). He received one DUI and one DWAI in Colorado in the mid-1990′s.  As a result of the restrictions placed on his driver’s license, Miguel was stopped on three occasions on his way to work (he had to work, no?) and arrested for driving with a suspended license. The last time was in November of 2009.  He was required to purchase an ankle bracelet to monitor his blood alcohol content and provide his probation officer with his pinpoint location 24 hours a day.  The sentence was an attempt by the state to push the economic burden of the criminal justice system onto the “criminals” rather than on the prison or jail systems.  The economic down turn was hard on Miguel, like most immigrants in the manual labor industries. He had been unemployed for two years and could not afford the ankle bracelet.

One evening, Miguel was walking home from a bar (he learned he shouldn’t drink and drive), as he approached the corner to turn down his street, police officers pulled in front of him and asked for proof of his legal immigration status (Arizona may have legalized it, but law enforcement does participate in such profiling, even in Colorado). Searching his documents in their computers, the police noticed the outstanding warrant for not completing his sentence (in purchasing an ankle bracelet). They promptly arrested him, and he served 88 days in Denver County Jail to serve his time on the warrant.  Denver County immediately transferred him to federal authorities because his legal immigration status had been revoked due to the crimes of moral turpitude and the number of misdemeanors of which he had been convicted.

Miguel spent six months in federal custody awaiting his fate.  He retained the legal assistance of the Rocky Mountain Immigrant Advocacy Network (RMIAN), who provides pro bono legal services to federal immigration detainees.  RMIAN asked for my assistance in representing Miguel.

I am elated to report that Miguel has been granted legal permanent residence in the United States.  As a response to the disaster it caused in Nicaragua and El Salvador, the U.S. Congress passed a law called the Nicaraguan Adjustment and Central American Relief Act (NACARA). NACARA allows Nicaraguan and Salvadoran nationals permanent resident status if they meet certain criteria.  First, they must have arrived in the U.S. before 1990. Check. Second, they must have applied for Temporary Protected Status before 1991. Check. Third, they must be of “good moral character”. This nebulous concept was our greatest hurdle. You can prove good moral character in a number of ways: family relations (e.g., financially supporting ailing mother in El Salvador), paying federal taxes (Miguel paid on 17 of the 20 years he lived in the U.S.), good employment history (as indicated above, Miguel was a hard worker and held steady employment as much as he could find it), and a criminal history that has no red flags (e.g., crimes of moral turpitude, alcohol and drug violations, etc.).  The criminal history was the crux of our case. Luckily, we were able to convince the judge that the instances of his criminal past were, at best, misunderstandings or isolated mistakes made by a young man who had entered the U.S. from a war-torn land and that there was nothing new, unrelated from past crimes, on his record in the last ten years. Good moral character, check.  Lastly, an immigrant must prove that deportation will cause him or his family extreme hardship. Given the history of this law, Congress knew the situation in El Salvador and Nicaragua, so it created a presumption of extreme hardship for Salvadoran and Nicaraguan nationals. The government attorney was unwilling to attempt to overcome this presumption. Hardship, check.

After certain administrative hoops are jumped through, Miguel will be released from federal custody, after being detained for all about six weeks of the present year. Upon his release, he will become a legal permanent resident of the United States and be able to continue working hard to support his mother in El Salvador, who depends on his work ethic and generosity.  Finally, Miguel has seen a light to the end of the downward spiral he stepped into after entering this country.

Era of “Great Givers” – The Noble Billionaire Philanthropists

Earlier this summer I felt admiration for many of the ultra-wealthy people of our country and world.  Two of the top three wealthiest individuals in the world, Bill Gates and Warren Buffett, embarked on a noble crusade calling on all billionaires of the world to commit at least half of their wealth to “good causes” when they die.  Their efforts have been enormously successful.  The likes of Oprah Winfrey, Ted Turner (American media mogul; founder of CNN), George Soros (Wall Street tycoon), John Morgridge (former head of Cisco Systems), members of the Rockefeller family, and many other lesser-known billionaires have all been attracted to the great challenge of Gates and Buffett–to earn the title “Great Givers”.   More recently, I’ve become disenchanted by this act of seeming generosity.  Here’s why:

1. Estate Taxes.  Putting aside this year’s anomalous 0% tax on the estates of wealthy individuals, next year will have a 55% tax on all estate assets that exceed $1 million. So if an eighty-year-old billionaire like Warren Buffett were to die next year, his estate, estimated at $47 billion (Forbes in 2010), would owe nearly $26 billion to Uncle Sam.  Through good estate planning professionals, Mr. Buffett can lower his tax liability, however; for instance, using irrevocable trusts, spousal disclaimers, and the like, but these estate planning techniques will only shelter his estate to a certain extent (perhaps by millions of dollars, but that’s a drop in the ocean of $47 billion), the remainder will be taxed at the 55% estate tax rate. Another way to lower the tax liability on his estate is through charitable contributions. Section 2055 of the Internal Revenue Code provides for a charitable deduction that allows the gross estate of the deceased to be reduced by the amount of charitable contributions made at death.  So, if Mr. Buffett bequests (gives at his death), say, $20 billion, the 55% estate tax will only apply to the remaining $27 billion, effectively lowering his estate’s tax liability to about $14 billion.

In essence, Mssrs. Buffett and Gates, and all their billionaire friends, are giving away to charity money that their estates never would have benefited from in the first place. Any two people chosen at random could argue about whether giving money to charity is better than giving it to the government, but the point stands that the “Great Givers” are playing with house money and reaping celebrity and honor for it. And that brings me to point #2.

2. Ego-Legacy.  These billionaires have amassed immeasurable fortunes, many have done so just over their own short life spans.  They are enormous successes, depending on how you define success.  There is no doubt that being a part of the great givers movement of Buffett and Gates will only increase the celebrity and ensure the legacy of these ultra-rich success stories.  It will make them feel good, stroke their egos by becoming significant after their successes.  I remember listening to a wealthy entrepreneur speak to my college freshman class. He had earned millions as an entrepreneur (putting him in a much less significant class than Mssrs. Buffett and Gates but would still be considered relatively more successful than most of us).  After a long career, he had the desire to become significant. So, he formed an organization aimed at working in the inner-cities, helping urbanites start their own businesses.  I found this idea of success then significance to be very intriguing.  However, thinking further, I thought, “why not just try to be significant from the start, it’s easy to become significant after you’ve achieved material success for yourself.”   I concluded that once someone with any kind of ego reaches material success for himself, he begins seeking for the next level of success, and this can come in the form of political influence (obtaining power, now that you have enough money) or in philanthropy (building a good name for yourself by giving to others once you have enough money for yourself).  I’m not judging the motivations of these Great Givers, but they are for the most part world-wide celebrities. As such, it is entirely possible that their great giving is simply their next entrepreneurial endeavor, their next pursuit to aggrandize themselves.

3. “Good Purposes”.  The third issue I take with the praise received by these Philanthropists is the lack of definition of what they mean by a “good purpose”.  I recall the recent death of the world’s 74th richest man, Dan Duncan.  Duncan was a Houston natural gas man that amassed a  fortune of an estimated $9 billion (all of which was passed to his heirs tax free…but that’s a topic for another blog).  He was a great giver in his own right, having contributed greatly to the Boy Scouts of America and cancer research (gifting $100 million to Baylor College of Medicine to build a cancer center in Houston which bears his name).  However, he also contributed greatly to the Shikar Safari Club International Foundation.  He was an avid big game hunter and had over 500 entries in the Safari Club International record books for killing polar bears, rhinos, bighorn sheep, lions, and elephants.

“Good purposes” could simply mean 501(c)(3) entities that are considered ‘charitable’ by the IRS and allow for tax deductible donations.  I am all for the ultra-wealthy gifting the bulk of their estates to charities, regardless of their purpose, but I’m not for supporting of killing endangered species.   Let’s make sure we clarify where these huge bequests are going before we go praising and honoring the Great Givers of our era.

What Is an Estate Plan and Why Do You Need One?

An estate plan is meant to serve several important functions, including:

(1) Prepare for the management and distribution of a person’s estate at death through the use of wills, trusts, insurance policies, and other arrangements;

(2) Plan for the care of your minor children or disabled family members;

(3) Inform your doctor and other medical professionals through the use of advance directives of your desires of care should you become incapacitated;

(4) Maximize your health care through proper Medicaid planning, and

(5) Minimize the costs of settling your affairs and pay the minimum amount of estate taxes.

When you die, any assets you own may not be sold, transferred, or given away without going through the state court system for settling estates (called Probate). This process can run much more smoothly and sometimes avoided completely, with proper estate planning.

A Will can be used to distribute specific probate-assets, pour everything into a trust created while you were alive or at your death, appoint an individual to administer your desires and manage your estate, and appoint a guardian for your minor children.  Without a Will your property will be distributed according to state intestacy law, which may or may not comport to your wishes.  An important note concerning Do-it-Yourself Estate Plans: Forbes.com recently published an article on the dangers of trying to avoid the legal expenses of creating a proper estate plan. Click here to read the article.


There are many types of trusts but, in general, a Trust can be used to reduce or avoid estate taxes, avoid probate, increase privacy (Wills are made public during the probate process), manage one’s property during life and after, and allow for seamless management and distribution of property on death.  While trusts are most often used for wealthy families trying to avoid estate taxes, trusts can be useful for other purposes important to lower- and middle-income people.

A very important part of any estate plan is Advance Directives; they include health care or medical powers of attorney, living wills, and other forms of health care directives. Studies agree that you are more likely to become incapacitated than you are to die. Where a Will is intended to plan for death, Advance Directives plan for incapacity. Advanced Directives allow you to express your preferences for continued health care if you become terminally ill or incapacitated through a Living Will (do you remember the Terri Schiavo debacle in 2005?). In addition, the Medical Power of Attorney names a trusted person to make your health care decisions for you in case you are physically or mentally unable to do so yourself.

The Durable Power of Attorney is often referred to as the most important estate planning document, because it appoints someone to manage your property and financial affairs during your life time should you ever become unable to do so yourself. This document is essential if your assets and liabilities are to be managed if you become incapacitated and unable to direct your own finances.

All the above documents and more constitute a comprehensive estate plan, which is essential to properly and effectively provide for yourself and your family. A few years ago a Harris poll showed that over 55% of adult Americans do not have any form of an estate plan. The numbers are even worse for separate groups of minorities. You need an estate plan. Whether your financial situation requires advanced estate planning complexities or a mere simple comprehensive estate plan, call D. White Law at (303) 758-9910 or email at info@dwhitelawpc.com.

WELCOME

Thank you for accessing the D. White Law Blog.  The goal is for this blog to become an exemplary source of information and a medium for free discussion.  The subject matter of the Blog will range from nuanced legal issues to “hot topics” of debate in popular media, from international human rights to the actions of political figures in our society.  It is my intention that the blogs posted here be valuable to the reader, thought-piquing, and relevant to our world.

I, Derek White, will (at least initially) draft the majority of the posts. However, feel free to contact me if you wish to become a regular or one-time contributor of the main content on this Blog.

As always, I welcome and encourage your feedback and suggestions.  Please do not hesitate to contact me.

“If we value the pursuit of knowledge, we must be free to follow wherever that search may lead us. The free mind is not a barking dog, to be tethered on a ten-foot chain.” – Adlai Stevenson.  Here’s to the pursuit.

Derek N. White