Posted: October 12th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Health, Retirement | Tags: Alzheimer's, Alzheimer's Disease Month, Estate Planning, Incapacity Planning, Living Trust, Living Will, Medical Directives | No Comments »
You may have missed that September was World Alzheimer’s Month. It’s important not to forget about Alzheimer’s. While medical research and advocacy are vital causes to uphold, Alzheimer’s is a disease that you and your loved ones might have to face directly, if you have not already. With the reality of Alzheimer’s or dementia striking close to home, some understanding and prior planning can help you in terms of the extensive economic toll and the unique legal ramifications.
According to a recent Forbes article, Alzheimer’s is as widespread as it is demanding. Consider this: Another American citizen will develop Alzheimer’s every 69 seconds. The symptoms are oftentimes subtle, at least initially. Some estimate that more than 13 million Americans will have the disease by 2050 and run up as much as $1 trillion in costs. Because of the progressive nature of the disease, most of the costs and problems won’t develop until later on. Nevertheless, significant planning must take place at the time of diagnosis, if not anticipated beforehand.
So, what is the scope of this “significant planning”? First, you will need to secure medical care, both for now and for the future. That means fundamental financial planning needs to be addressed, to include securing government benefits such as Medicaid and Social Security Disability Insurance. Second, because of Alzheimer’s progressive cognitive degeneration, estate planning must occur early in the process to secure and protect family assets. Thorough estate planning should include durable powers of attorney and advance health care directives. These documents create a plan for your future when you may no longer be able to manage your finances or make decisions regarding your health or personal care due to mental incapacity. With these documents, you identify a trusted person to act on your behalf and in your best interests to make financial and health care decisions for you.
Establishing durable powers of attorney and advance health care directives while you are in good mental and physical health will allow you to avoid the prospects of a court-supervised and expensive conservatorship.
Fundamentally, it’s important to understand that Alzheimer’s is not the same as other diseases. Through it all, competent counsel will be necessary to properly assess the needs and possibilities, as well as to ensure that everything is in place when needed most. At Idaho Estate Planning we have the experience and expertise to help you maintain your options and protect yourself as well as your loved ones now and into the future. We have a network of resources throughout the Treasure Valley ready to help us meet your needs. Remember, good planning is no accident!
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Posted: August 24th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Retirement | Tags: Amy Winehouse, Blended Family, Celebrity Estates, Estate Planning, Financial Stress, Living Trust, Will | No Comments »
We are used to hearing dramatic stories about the estate woes of celebrities like Anna Nicole Smith and Gary Coleman. From all appearances, however, in the tragedy of singer Amy Winehouse’s recent death there is one positive note: she left her affairs in remarkable order.
While you may not have an ex-spouse in prison you may be part of a blended family, have a special needs child or simply want to make sure your estate is managed according to your wishes. Whether you have $16.4 million (or more) … or substantially less … there are fundamental estate planning moves that every adult should undertake. These include making a will, appointing durable powers of attorney, and completing health care directives. Trusts also are versatile estate planning tools that may help you achieve your goals in a variety of situations.
To ensure a successful plan, we at Idaho Estate Planning will: 1) educate you and your helpers; 2) take the time to get to know you, your family, your desires, your concerns, your goals, and your potential problems; 3) gladly and patiently answer questions until you understand the concept or issue; and, 4) based on experience with the problems and results caused by poor planning, help you design and implement the plan that fits your concerns and goals. Remember, good planning is no accident.
According to US News & World Report, Winehouse’s assets, estimated at around $16.4 million were at risk of going to her ex-husband, who is currently in prison, since the English legal system tends to favor ex-spouses. But Winehouse avoided that problem by writing a new will directing her estate to her parents and brother instead.
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Posted: August 15th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Retirement | Tags: Beneficiary Designations, Estate Planning, Living Trust, Naming Beneficiaries, Probate, Will | No Comments »
What is the quickest way to un-do an otherwise carefully planned estate?
Open a bank account, brokerage or retirement account.
Why? Because the beneficiary designations on these accounts override your will. Yes, it’s true – the beneficiary designation is the estate planning trump card. And many an estate plan has come undone because of carelessly named beneficiaries.
The Wall Street Journal last week issued a warning in an article entitled Beware the Beneficiary Form.
“People don’t realize the importance of this,” says Martin Shenkman, an estate planning lawyer in Paramus, NJ. A carelessly named beneficiary on a financial account can cause a loved one to be disinherited, a disabled child to lose government benefits, and heirs to be slapped with a big tax bill.
The Journal also offers a few tips to protect you from this type of estate plan destruction, to include:
Know what kinds of accounts have beneficiary designations. Did you know that U.S. Savings bonds have a beneficiary form? Other accounts for which you may have named a beneficiary include retirement accounts, life insurance policies, bank accounts, certificates of deposit, stocks, bonds and mutual funds.
Review your beneficiary designations regularly and certainly after any life-changing event such as a marriage, divorce, birth or death of a loved one. Also, job-changers and retirees take note: Beneficiary designations on retirement plans don’t carry over when you roll a 401(k) to a new employer’s plan or to an IRA, or when you convert a regular IRA to a Roth IRA.
At Idaho Estate Planning we educate our clients on the proper procedures for naming beneficiaries. Our Life Plan™ Members also participate in a yearly review of the assets contained in their estate plan and any changes made through the previous year. If you have been considering putting your estate plan together, we have the experience and expertise to help you maintain your options and protect yourself as well as your loved ones now and into the future. The best time to plan is always now! Remember, good planning is no accident.
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Posted: August 12th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Retirement | Tags: Dossier, estate plan, Legal Documents, Living Trust, Will | No Comments »
The financial consequences of failing to keep your legal and financial documents in order can be significant. As pointed out in a recent Wall Street Journal article, state treasurers currently hold $32.9 billion in unclaimed bank accounts and other assets. Additionally, some of the country’s largest life insurers are under investigation for failing to pay out unclaimed life policies to beneficiaries. Insurers say they are behaving lawfully and under their policy contracts are required to pay a claim only when beneficiaries come forward.
Will your family members reap the full benefit of your estate planning efforts, or will they miss out simply because they cannot locate all of your important legal and financial documents in a timely manner? Of course, you don’t have to keep every single scrap of paper, but the WSJ offers a pretty comprehensive list of the 25 most important legal and financial documents you should compile, and make sure your heirs can quickly access, to include:
- Will
- Letter of instruction
- Trust documents
- Housing, land, and cemetery deeds
- Escrow mortgage accounts
- Proof of loans made and debts owed
- Vehicle titles
- Stock certificates, savings bonds, and brokerage accounts
- Partnership and corporate operating agreements
- Tax returns
- List of bank accounts
- List of all user names and passwords
- List of safe-deposit boxes
- Durable health-care power of attorney
- Authorization to release health care information
- Living will
- Do-not-resuscitate order
- Personal and family medical history
- Life insurance policies
- Individual retirement accounts
- 401(k) accounts
- Pension documents
- Annuity contracts
- Marriage license
- Divorce papers
The original article goes into much more detail with each, and whether you have or need each of these documents will depend on your individual situation and the various legal facets of your life, but it is a list that commands a certain attention. By putting this all together you help your loved ones to more quickly and easily pick up the pieces and put your plan into operation.
Few things in life could be more frustrating than putting a great plan together only to have it fail because for lack of implementation. At Idaho Estate Planning we have the expertise and resources to make sure your plan is carried out according to your wishes. Remember, good planning is no accident!
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Posted: July 28th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Retirement | Tags: Estate Planning, Letter of Final Instructionk Will, Living Trust, Probate | No Comments »
If you’re a member of the Baby Boomer generation, there’s a good chance you have not done even the most basic of estate planning. In fact, only 56 percent of you have a will, according to a 2011 survey by Rocket Lawyer. So, if you have covered that base, give yourself a well-deserved pat on the back … but not too heartily. As Smart Money recently pointed out, most people overlook another crucial element in their estate plan: a letter of final instruction.
The letter of final instruction is a non-legal document that guides your family through important tasks after your death. For example, your family might not know where you keep important papers like a deed or a marriage or birth certificate. They may need your passwords to access accounts on your computer. You also may want to list the contact information for people you would want notified, like friends that your family members may not know well. Trusts & Estates magazine recently ran a list of items you might want to include. The idea is not so much to set down demands or to solve possible squabbles, because the document is non-legal, but just to supply the answers to those questions that could otherwise prove troublesome for your family.
Of course, this letter is just a small (and non-legal) part of your estate plan. You still need to cover your legal bases with at least a will, living will, health care proxy and durable powers of attorney.
Simply put, Do In Now! We all want to stay in control of our lives as long as possible and for that we must plan. When it comes to planning for the future, the sad fact is that every year we fail to plan we lose options. Wait long enough and the only options left are those made for us out of desperation. Remember, timing is everything. In order to maintain control as long as possible and have an effect on your own quality of life decisions you must choose to act now. Your decisions need to be made known and documented correctly. Good planning is no accident!
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Posted: July 26th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Retirement, Uncategorized | Tags: beneficiary, estate, estate plan, executor, Living Trust, Retirement, Will | No Comments »
There are a number of decisions to be reached when planning for your estate and not least among them is the choice of executor. A poor choice of an executor, or a disconnection between executor, estate, and beneficiaries can hobble even the best laid of estate plans. Indeed, Reuters offers one unfortunate beneficiary’s troubles in a recent article on the topic and offers some solid suggestions to consider.
The beneficiary was Stephanie Stephens, who, in the end, was surprised to find that the estate she received had shrunk by $129,000, something she angrily blames on the executor. Apparently, the estate had incurred a $104,000 loss when the executor failed to pull the assets from the flames of the 2008 financial meltdown and, insult to injury, that executor was then entitled to a fee of another $25,000. Needless to say, she wasn’t happy. Whether or not the executor was to blame may be debatable (since it was the beginning of the recession, after all) but there are other wrinkles to the story. For example, Stephanie hadn’t met the executor of the estate until after her relative passed away and so only knew him as a somewhat disinterested party. Further, she was surprised by the executor’s fees and even felt them to be excessive.
In this case, the beneficiary was, at best surprised (and at worst, victimized) by a situation she did not understand. Her case offers an example of a kind of disconnect that can all-too-easily arise between executor, estate, and beneficiary.
Reuter’s offers three general principles to bear in mind:
Know the estate. Choosing the right executor has a lot to do with the nature of your estate. Is it complex or simple? Are there a lot of moving parts and assets that may be at risk? A family member can likely carry out a simple estate but a professional might be necessary for those more difficult ones.
Know the person. Just because someone is a “good person,” this does not mean they should be doing business for you. You need to know that they are well-intentioned and interested in carrying out the tasks, but above and beyond that you must also know that they have the proper skills and business mindset to carry out your plans and take care of your assets in your absence.
Let your family know – communicate. It’s a difficult conversation to have but it’s important to relate your plans directly so that your family knows your decisions. Further, you’ll want to be sure they are aware of the cost of the executor so it isn’t the surprise it was in Stephanie’s case (in fact, you yourself may want to be sure you are aware of the costs, too).
Understanding the role of Executor is just a part of successful estate planning. To ensure a successful plan, we at Idaho Estate Planning will: 1) educate you and your helpers; 2) take the time to get to know you, your family, your desires, your concerns, your goals, and your potential problems; 3) gladly and patiently answer questions until you understand the concept or issue; and, 4) based on experience with the problems and results caused by poor planning, help you design and implement the plan that fits your concerns and goals. Remember, good planning is no accident.
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Posted: February 11th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Health, Insurance, Retirement | Tags: Alzheimer's, Assisted Living, Care Planning, Caregiver, Dementia, Elder Care, Elder Law, Estate Planning, Home Care, Incapacity, Living Trust, Long Term Care, Medicaid Planning, Revocable Living Trust, VA Pension, Veteran's Benefits, Veterans | No Comments »
Looking for a way to help Mom and Dad pay for home care or assisted living? Perhaps you are their caregiver. Wouldn’t it be nice to receive some compensation to help you provide their care? There is financial help available for senior veterans and their spouses.
For veterans who served during a time of war or for their surviving spouses, veterans benefits such as the Veterans Aid & Attendance Pension will pay additional income to cover long term care costs. The great news about this program is that VA will allow veterans’ households to include the annual cost of paying any person such as family members, friends or hired help for care when calculating the Pension benefit.
Pension can provide an additional monthly income of up to $1,949 a month for a couple, $1,644 a month for a single veteran or $1,056 a month for a single surviving spouse of a veteran. This money can be used to help pay the cost of home care, adult day services, assisted living or nursing home services.
A family member can be considered an in-home attendant, but that family member has to be paid for services duly rendered. There is potential for fraud here where a family member may move into the home and ostensibly receive payment as a caregiver but not actually provide the level of care paid for. Documentation for this care must be provided to VA, and it is reasonable for VA to question whether the services being purchased from a family member living in the household are legitimate. Such arrangements should be extensively documented and completely arm’s-length.
The care arrangements and payment for home care must be made prior to application and there must be evidence that this care is needed on an ongoing and regular basis. We recommend a formal care contract and monthly invoice billing for services. Money must exchange hands and there must be evidence of this. All of this documentation must be provided as proof to VA when making application for the pension benefit. Costs for these services must be unreimbursed; meaning these costs are not paid by insurance, by contributions from the family or from other sources. Even though the family member being paid for services cannot reimburse the veteran household directly, the family may pay the bills for the veteran household. This indirect form of support is allowed.
In 2007 the AARP released a study on Caregivers in America in which they reported, “Many caregivers make direct out-of pocket expenditures to help support a family member or friend with a disability. Non-spousal caregivers were asked how much money they spend in a typical month for groceries, medicines, or other kinds of cash support for the care recipient. About half of caregivers contributed financially, spending an average of $200 per month ($2,400 per year). Caregivers who had the greatest level of caregiving burden reported spending $324 per month ($3,888per year) out of pocket.”
The study went on to say, “In addition to direct out-of-pocket expenditures made by caregivers, many caregivers experience other significant economic losses. The majority of caregivers in the United States (59 percent) are employed either full or part time. The financial impact of caregiving on caregivers in the workforce can involve multiple aspects of their income security, including their wages, job security and career paths, and employment benefits such as health insurance and retirement savings.
Those family members acting as caregivers for America’s veterans and/or their spouses can help reduce the stress on their own and their families emotional, social and financial well being by making use of the VA Pension Benefit.
The secret for receiving a successful award from the VA is not in filling out the form but in knowing what documents and evidence must be submitted with the application. Knowing the secrets for a successful award – with the special case of long term care recipients – is 95% of the battle. A knowledgeable, accredited consultant can provide information to shorten the VA’s decision window of 6 to 12 months to possibly 3 or 4 months.
At Idaho Estate Planning we understand how to maximize the benefit or avoid a denial. We can also provide guidance for meeting the asset test. We provide the best strategies for reallocating assets through trusts or income conversions to allow for the best possible accommodation of assets for beneficiaries thus avoiding or reducing taxes, family disputes and Medicaid penalties.
We are VA Accredited and we know how to help veterans get the benefits they have earned through their greatly appreciated service to our country. Remember, good planning in no accident.
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Posted: February 7th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Health, Insurance, Retirement | Tags: Assisted Living, Care Planning, Caregiver, Dementia, Elder Care, Elder Law, Estate Planning, Home Care, Incapacity, Living Trust, Living Will, Long Term Care, Medicaid Planning, Revocable Living Trust, VA Pension, Veteran's Benefits | No Comments »
There is a very good chance that you or someone you know is taking care of elderly parents now or looking at that possibility in the near future. In 2008 a USA TODAY/ABC News/Gallup Poll of baby boomers found that 41% who had a living parent were providing care for them — either financial help, personal care or both — and 8% of boomers said their parents had moved in with them.
Of those who were not caring for an aging parent, 37% said they expected to do so in the future. About half said they were concerned about being able to provide such care.
If financial planning and long term care planning have not been done previous to the need for care, the burden falls on the caregiving family member. Decisions about how care will be paid for, who will be responsible for managing the estate as well as how the long term care will be given can cause stress and contention among family members.
It is best for parents and all family members to be involved in planning for future financial needs. The financial resources being used today could change drastically with the occurrence of a stroke, illness or onset of dementia. In order to plan financially for long term care, you need to know what the costs are now and what they will be in the future.
Every year MetLife does a survey of long term care costs. Their 2010 survey shows that the average daily rate for private nursing home is $229 which is up from $219 in 2009. Assisted living monthly base rate cost rose to $3,293 in 2010 from $3131 in 2009. Home health aides average $21 an hour.
Planning financial needs can be very difficult, considering you do not know when long term care will be required or how long it will be needed. Staying in the home for care will require professional home care assistance, travel accommodations to doctor appointments, help with shopping, meals, medical supplies and medication and possibly a 24-hour attendant. Even if a family member is doing most of the care, in most cases professional care will eventually be required or a move to a nursing home facility will be necessary.
When evaluating present income and assets consider how they would work for future needs. Consider the following:
- Care options
- Long Term Care Costs
- Long Term Care Insurance
- Home Care Costs
- Medicaid Planning
- VA Benefits & Planning
- Legal Documents – Estate Planning
Idaho Estate Planning is part of the Treasure Valley Care Planning Council, a non-profit network of elder care professionals available to provide information for and beyond the items discussed above. Let us know your concerns and we will help you find the resources you need.
In addition to caring for your parents or other family members, it is also important to consider your own concerns for the future. How will you maintain your independence as you grow older? What effect would a costly health issue have on your quality of life? The more planning you do now the less difficulty there will be later. Better planning now will reduce the stress placed on you and your future caregivers. Good planning is no accident.
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Posted: January 18th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Health, Insurance, Retirement | Tags: Alzheimer's, Assisted Living, Care Planning, Caregiver, Dementia, Elder Care, Elder Law, Estate Planning, Home Care, Incapacity, Living Trust, Living Will, Long Term Care, Medicaid Planning, Power of Attorney, Revocable Living Trust, VA Pension, Veteran's Benefits | No Comments »
Recently I had someone in my office wanting to know what his options were for taking care of his In-laws. In 2004, when the first signs of medical troubles appeared, he had, with his wife and her siblings, tried to convince the parents that they needed to get their affairs in order. They needed to do some planning, but as is all too common, no planning was done. Where there could have been many choices and options, now there are few. Where there could have been comfort in their final years, now hard choices must be made that would never have been considered before.
The National Institute on Aging gives three simple, but important steps to putting your affairs in order:
- “Put your important papers and copies of legal documents in one place. You could set up a file, put everything in a desk or dresser drawer, or just list the information and location of papers in a notebook. If your papers are in a bank safe deposit box, keep copies in a file at home. Check each year to see if there’s anything new to add.
- Tell a trusted family member or friend where you put all your important papers. You don’t need to tell this friend or family member about your personal affairs, but someone should know where you keep your papers in case of emergency. If you don’t have a relative or friend you trust, ask a lawyer to help.
- Give consent in advance for your doctor or lawyer to talk with your caregiver as needed. There may be questions about your care, a bill, or a health insurance claim. Without your consent, your caregiver may not be able to get needed information. You can give your okay in advance to Medicare, a credit card company, your bank, or your doctor. You may need to sign and return a form.”
When it comes to planning for the future, the sad fact is that every year we fail to plan we lose options. Wait long enough and the only options left are those made for us out of desperation. Remember, timing is everything. In order to maintain control as long as possible and have an effect on your own quality of life decisions you must choose to act now. Your decisions need to be made known and documented correctly. Good planning is no accident!
Call us today and let us help.
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Posted: January 6th, 2011 | Author: mwight | Filed under: Estate Planning, Financial Planning, Retirement | Tags: Alzheimer's, Assisted Living, Care Planning, Caregiver, Dementia, Elder Care, Elder Law, Estate Planning, Home Care, Incapacity, Living Trust, Long Term Care, Medicaid Planning, Revocable Living Trust, VA Pension, Veteran's Benefits, Veterans, Without accreditation no one may help a veteran with a claim more than one time. | No Comments »
Accreditation
The VA Pension Benefit helps veterans and surviving spouses pay for assisted living care in the home, nursing home, or assisted living facility. It pays up to $1,949 per month to provide care for single or married veterans, or their surviving spouses. Applicants must meet certain medical and financial thresholds. Many find the application process complicated and seek help preparing the forms. It is important to understand federal law dictates that no one may help a veteran in the preparation, presentation and prosecution of an initial claim for VA benefits unless that person is accredited by the VA. The only exception to this law is that any one person can help any veteran – one-time only – with a claim. To help any veteran a second time requires accreditation.
VA recognizes 3 types of individuals for purposes of accreditation.
- Accredited attorneys
- Accredited agents and
- Accredited representatives of service organizations. (Veterans Service Officers)
In order to be accredited to help veterans with new claims, an individual desiring this certification from VA must submit a formal application, must meet certain character requirements and work history requirements and – except for attorneys – must pass a comprehensive test relating to veterans claims and benefits. There are also requirements for ongoing continuing education.
What Does It Mean to Help a Veteran with a Claim?
VA interprets its prohibition on preparing, presenting and prosecuting a claim to mean that talking to a veteran or a veteran’s qualifying spouse or dependent after that person has indicated an intent to file a specific claim for benefits requires accreditation. Anyone can talk about veterans benefits in general with any veteran and need not be accredited. The point at which discussion narrows down to specific information about the veteran’s service record, medical conditions, financial situation including income and assets and other issues relating to a claim specific to a veteran or dependent triggers accreditation. According to VA, discussing the specifics of the claim means that the veteran has expressed an intent to file an application for veterans benefits, and at this point, the consultant helping the veteran must be accredited.
This bears repeating: An individual cannot advise a veteran or other eligible beneficiary about that person’s specific claim for VA benefits unless that individual is accredited.
Using an Accredited Agent
The secret for receiving a successful award from the VA is not in filling out the form but in knowing what documents and evidence must be submitted with the application. Knowing the secrets for a successful award – with the special case of long term care recipients – is 95% of the battle. A knowledgeable, accredited consultant can provide information to shorten the VA’s decision window of 6 to 12 months to possibly 3 or 4 months.
At Idaho Estate Planning we understand how to maximize the benefit or avoid a denial. We can also provide guidance for meeting the asset test. We provide the best strategies for reallocating assets through trusts or income conversions to allow for the best possible accommodation of assets for beneficiaries thus avoiding or reducing taxes, family disputes and Medicaid penalties.
We are VA Accredited and we know how to help you get the benefits you earned through your greatly appreciated service to our country. Remember, good planning in no accident.
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