Author: Sara Thomas

10 Steps to Take Now to Secure a Comfortable Retirement – Part 1

Post author By Sara Thomas
Post date May 23, 2024
No Comments on 10 Steps to Take Now to Secure a Comfortable Retirement – Part 1

Retirement is more than just an end to the working years; it’s an exciting new phase of life that requires thoughtful preparation and strategic planning. There’s no time like the present to explore 10 steps you can take now to ensure a comfortable and fulfilling retirement. In this article, we’ll discuss the first 5 steps, why they’re important, and how to implement them. Next week, we’ll continue with the remaining 5 steps.

Let’s dive in, shall we?

Step 1: Plan for the Transfer of Your Assets

Why It’s Important: Effective estate planning ensures that your assets are distributed according to your wishes, potentially reduces estate taxes, and can prevent a lot of legal complications for your heirs. Proper estate planning also helps to avoid the public, often lengthy and costly process of probate, ensuring that your heirs have quicker access to the assets you leave behind. Moreover, clear directives in estate planning can prevent family disputes (sometimes resulting in irretrievably broken relationships) and ensure that your specific instructions are followed, preserving your legacy exactly as you intend.

Life Insurance: Having adequate coverage to handle any debts and funeral expenses can provide a financial cushion for those who depend on you. As part of our Life & Legacy Planning process, we can educate you about how much insurance you need and how to pass the funds to the people you want, while avoiding unnecessary taxes and ensuring the funds are available as soon as possible.

Step 2: Prepare for Long-Term Care Expenses

Why It’s Important: As we continue to live longer, so does the probability of needing some form of long-term care. These services, whether in-home care, assisted living, or nursing facilities, can be costly and are not typically covered by Medicare. Without proper planning, the high costs of long-term care can quickly deplete retirement savings, potentially leaving less financial support for spouses or other family members. Furthermore, preemptive financial planning can significantly ease the emotional and logistical challenges of arranging for long-term care.

Long-Term Care Insurance: Investigate different policies early, ideally in your 50s or early 60s, before premiums rise significantly. Compare benefits, coverage limits, and the reputation of insurance providers.

Government Programs: Understand what Medicare covers and explore Medicaid eligibility for long-term care, which varies by state but generally requires spending down your assets.

Preparing for long-term care can be tricky because the laws are quite complicated. However, meeting with an estate planning attorney who offers elder care planning can help you navigate your options and create a plan that preserves your assets for your loved ones, rather than draining them for health care costs.

Step 3: Pass on Generational Wealth

Why It’s Important: By ensuring that wealth passes effectively to future generations, you can secure their financial future and teach them how to manage and grow that wealth responsibly. Furthermore, generational wealth can enhance the lives of future family members and their communities by providing educational opportunities, fostering entrepreneurship, and supporting philanthropic efforts. It also instills a sense of responsibility and stewardship, which are crucial for maintaining family wealth over generations.

Educational Trusts: We can help you set up trusts that release funds for your children or grandchildren based on milestones such as graduation from college. These trusts also have tax benefits, and we can educate you about how they work.

Create a Family Investment Plan: Include younger family members in discussions about family investments to educate them about financial principles.

We will not only help you create an educational trust, but also asset protection trusts so you can create generational wealth for your family.

Step 4: Leave a Legacy

Why It’s Important: What your family will treasure most is not the financial gifts you leave, but your life lessons, values, and memories that define your family heritage. A well-planned legacy can inspire and guide future generations, providing them with a sense of identity and belonging to a greater family story. You can ensure that your philosophical and ethical beliefs continue to influence even when you’re no longer present, helping to shape the character and choices of your descendants.

Record Life & Legacy Interview: We include an interview as an important part of our unique Life & Legacy Planning process. The interview ensures your family has a piece of their family history they can hold onto long after you’re gone. They’ll also treasure being able to see you and hearing your voice whenever they want.

Step 5: Cultivate and Share Family Values and History

Why It’s Important: Continuing the idea of leaving a legacy, know that strengthening family bonds through shared history and values helps maintain a sense of continuity across generations. This cultural and historical continuity enhances their psychological resilience and emotional well-being. Additionally, a well-documented family history can serve as a valuable asset for educational and genealogical purposes, enriching the lives of current and future generations. Here are some steps you can take outside of recording a Life & Legacy Interview.

Create a Family Archive: Gather photos, letters and important documents in a digital format to ensure preservation and easy sharing. Enlist the help of a younger family member (Gen Z, anyone?) if you need to. Also consider writing down recipes, stories, and holiday traditions that can be passed down as family legacies.

Compile Family Histories: Write or record stories about family elders, significant events, and the origins of family traditions. Note that writing these down the “old school” way, i.e., pen and paper, will be meaningful to younger generations. They’ll love having a piece of paper with your handwriting on it.

Host Family Reunions: Regular gatherings not only help reinforce family bonds but also allow older generations to impart wisdom and traditions firsthand.

Let Us Help Secure Comfort in Your Retirement

So whether you’re a few years away or are about to retire now, it’s never too early (or too late!) to start planning. Be sure to check back next week for even more steps you can take to ensure peace of mind when the time comes.

At our firm, we do more than just guide you through estate planning; we provide you with peace of mind, knowing you are free to enjoy retirement. However, understanding the complexities of retirement—from estate planning to ensuring long-term care and preserving generational wealth—can be daunting. That’s why, as your heart-centered firm, we streamline the process, making it as easy on you as possible.

If you’re interested in learning more about how to create a Life & Legacy Plan that secures your comfort in retirement, we invite you to schedule a complimentary 15-minute call with our office. Let us help you live your best life, every step of the way.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Tags Elder Law, Estate Planning, Legacy, Long-term Care, Personal Family Lawyer, Retirement, Retirement Planning

A Gift of Peace and Power for Every Parent

Post author By Sara Thomas
Post date May 16, 2024
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Parents spend their days and nights thinking about how to make sure their children are happy, healthy, and safe. If you’re a parent, you know. Every parent deserves the peace of mind and power to create financial security for themselves and their children with thoughtful estate planning.

Most people have a general concept of what “estate planning” means, but in reality, don’t fully understand it. Believe it or not, estate planning is far more complex than just drafting a Will, and it’s not just for rich people, though doing it will leave your family much more “rich” than if you don’t. Once you appreciate the power of estate planning, you’ll know why it has the power to “gift” you peace of mind.

So let’s start by parsing out what estate planning really is and why it matters for every parent you know, including yourself if you are a parent.

Why Estate Planning Matters for Parents

Imagine having a roadmap that clearly shows how your financial assets, the guardianship of your children, and even your most cherished possessions are handled should anything happen to you. Now imagine that your roadmap is a legal document and the people receiving that roadmap are required to abide by your wishes and are able to easily do so because your wishes are so clear and you’ve left a guide for your family along with the roadmap.

That’s what estate planning is: a legally enforceable plan for your future, and ideally a guide to help your loved ones navigate the plan. And contrary to what most people think, estate planning isn’t just for the wealthy or those who are nearing the end of life. It’s for everyone, including you! Thoughtful estate planning gives you the power to make decisions now that will impact your and your family’s future, giving you peace of mind to know you aren’t leaving a mess for the people you love.

Estate planning allows you to specify who will care for your children if you are unable to do so yourself. It’s undoubtedly a tough subject, but choosing a guardian you trust to raise your kids as you would brings immense comfort, and may even guide you to build deeper relationships with the people you’d call upon to care for your children, if you cannot. Knowing that your wishes are written down and legally protected can relieve a lot of stress, and relax any of those “stressful in the background” thoughts about that one person you would never want raising your kids.

Without a plan, a judge would decide who takes care of your children if you cannot, and they might not choose the person you would have wanted. Or worst of all, they may even choose the one person you’d never want raising your kids because maybe they look great on paper. Think about it: a judge knows nothing about you or your kids. They only know what they see in court filings. That’s it. They’d have to make decisions with no input from you. Kinda scary, right?

When done right, estate planning also lets you direct the distribution of your property and finances. Specifically, it ensures your assets are transferred to the people you choose without unnecessary delays, legal hurdles, or family conflict.

This not only secures your children’s future but also simplifies the administrative process at a time when your family should have space and time to mourn and heal, not get tangled in legal complexities. And if they do get tangled up in conflict, it’s highly likely that those relationships will be forever destroyed. That also happens. Again, more often than you may think.

Here’s the bottom line. When you get these things in order, you can die in peace, and that means you live life more fully.

Estate Planning Equals Empowerment

Estate planning puts the power in your hands. It’s a declaration of your values and your voice, legally secured to guide your family when you can’t be there. By setting out your wishes clearly, you prevent disputes and ensure your legacy lives on exactly as you intend. After all, someone will have to wrap up your affairs after you die, so it may as well be you, now, while you’re living. So step into your power, safeguard your children’s future, and cement your role as the heart and protector of your family.

Financial Protection In Case of Loss

Estate planning is especially vital if the unthinkable happens and your spouse or partner dies. Many parents face not only devastating emotional loss but also the potential for significant financial instability – especially if you aren’t the primary breadwinner in your family. An effective estate plan, however, includes setting up mechanisms such as life insurance, trusts, and instructions for pension or retirement benefits, which can provide you with financial support when it’s most needed. There’s absolutely no reason you and your children need to compromise your lifestyle should something happen to your partner.

Let Us Give You the Gift of Peace and Power

At our law firm, we don’t just give legal advice or draft documents. We take your power and peace of mind seriously. We also know that you’re busy. We have processes in place that make getting your estate plan in place as easy as possible, all while being thorough, thoughtful, and mindful of your time and budget.

If you want to learn more about how we can help you create an estate plan that gives you the gift of power and peace of mind – so you can live life to the fullest – schedule a complimentary 15-minute call with our office.

Tags Asset Protection, Estate Plan, Estate Planning, Personal Family Lawyer, Wealth Preservation

Estate Planning

Here’s What You Should Know About A Will

Post author By Sara Thomas
Post date May 9, 2024
No Comments on Here’s What You Should Know About A Will

Having a Will, otherwise known as a Last Will & Testament, is important—and all adults over age 18 should have this document in place. Yet for all but a few people, creating a Will is just one small part of an effective estate plan that works to keep your loved ones out of court and out of conflict. With this in mind, we’ll look at exactly what having a Will in place will—and will not—do for you and your loved ones in terms of estate planning.

What A Will Does

A Will is a legal document that outlines your final wishes in regards to how your assets are distributed to your surviving family members. Here are some of the things having a Will in place allows you to do:

1. Choose how assets are divided upon your death: A Will’s primary purpose is to allow you to designate how you want your assets divided among your surviving loved ones upon your death. If you die without a Will, state law governs how your assets are distributed, which may or may not be in line with your wishes. However, a Will only covers assets owned solely in your name. Other types of assets, such as those with a beneficiary designation and assets co-owned by you with others, are not affected by your Will.

2. Name an executor: In your Will, you can name the person, or persons, you want to serve as your executor, sometimes called a “personal representative.” Following your death, your executor is responsible for wrapping up your final affairs. This includes numerous responsibilities, including filing your Will with the local probate court, locating and managing all of your assets, paying off any debts you have outstanding, filing and paying your final income taxes, and finally, distributing your remaining assets to your named beneficiaries.

3. Name guardians for your minor children: If you are the parent of minor children, it is possible to name legal guardians for them in your Will. However, naming guardians for your children in your Will alone is seriously risky, and doing so may even leave your kids vulnerable to being taken into the care of strangers if something happens to you. This is true even if you’ve worked with another lawyer to create your Will, because most lawyers haven’t studied and been trained on what’s necessary for ensuring the well-being and care of minor children.

Fortunately, whether you’ve named guardians for your kids in your Will or have yet to take any action at all, you’ve come to the right place. We can put a full Kids Protection Plan® in place, and determine if there is anything else your family might need to ensure the well-being and care of your children.

4. Serve as a backup for a living trust: Because it can be difficult to transfer the legal title to every single one of your assets into a revocable living trust before your death, most trusts are combined with what’s known as a “pour-over” Will. This type of Will serves as a backup to a living trust, so all assets not held by the trust upon your death are transferred, or “poured,” into your trust through the probate process.

What A Will Won’t Do

While a Will is a necessary part of most estate plans, your Will is typically a very small part of a comprehensive estate plan. To demonstrate, here are the things you should not expect your Will to accomplish:

1. Keep your family out of court: Following your death, in order for assets in your Will to be transferred to your beneficiaries, the Will must pass through the court process known as probate. During probate, the court oversees the Will’s administration, ensuring your assets are distributed according to your wishes, with automatic supervision to handle any disputes. Probate can be time-consuming, costly, and open to the public. Moreover, there’s also the chance that one of your family members might contest your Will, increasing the time and cost in court.

2. Pass on certain types of assets: Since a Will only covers assets solely owned in your name, there are several types of assets that your Will has no effect on, including the following:

Assets with a right of survivorship: These types of assets automatically pass to the surviving co-owner(s) when you die.
Assets with a designated beneficiary: When you die, assets with a designated beneficiary pass directly to the individual, organization, or institution you designated as beneficiary, without the need for any additional planning.
Assets held in a trust: Assets held by a trust automatically pass to the named beneficiary upon your death or incapacity, so these assets cannot be passed in your Will. This includes assets held by both revocable living trusts and irrevocable trusts.

3. Pass ownership of a pet and money for its care: Because animals are considered personal property under the law, you cannot name a pet as a beneficiary in your Will. If you do, whatever money you leave it would go to your residuary beneficiary, who would have no obligation to care for your pet. This person could legally keep all of the money and drop off your pet at a shelter.

The best way to ensure your pet gets the care it deserves following your death is by creating a pet trust. We will help you set up, fund, and maintain such a trust, so your furry family member will be properly cared for when you’re gone.

4. Leave funds for the care of a person with special needs: There are a number of unique considerations that must be taken into account when planning for the care of an individual with special needs. In fact, you can easily disqualify someone with special needs for much-needed government benefits if you don’t use the proper planning strategies. For this reason, a Will should never be used to pass on money for the care of a person with special needs.

If you want to provide for the care of your child or another loved one with special needs, you must create a special needs trust. However, such trusts are complicated, and the laws governing them can vary greatly between states. We can make certain that upon your death, the individual would have the financial means they need to live a full life, without jeopardizing their access to government benefits.

5. Reduce estate taxes: If your family has significant wealth, you may wish to use estate planning to reduce your estate tax liability. However a Will is useless for this purpose. To reduce or postpone your estate taxes, you will need to set up special types of trusts. If you are looking to reduce your estate tax liability, consult with us to discuss your options.

6. Protect you from incapacity: Because a Will only goes into effect when you die, it offers no protection if you become incapacitated and are no longer able to make decisions about your financial, legal, and healthcare needs. If you do become incapacitated, your family will have to petition the court to appoint a guardian to handle your affairs, which can be costly, time-consuming, and traumatic for your loved ones. And there’s always the possibility that the court could appoint someone as a guardian that you’d never want making such critical decisions on your behalf.

However, using a trust, you can include provisions that appoint someone of your choosing—not the court’s—to handle your assets if you are unable to do so. When combined with a well-prepared medical power of attorney and living will, a trust can keep your family out of court and out of conflict in the event of your incapacity, while ensuring your wishes regarding your medical treatment and end-of-life care are carried out exactly as you intended.

Get Professional Support With Your Estate Planning

Although creating a Will may seem fairly simple, you should always consult with an experienced estate planning lawyer to ensure the document is properly created, executed, and maintained. And as we’ve seen here, there are many scenarios in which a Will won’t be the right estate planning solution, nor would a Will keep your family and assets out of court.

We see estate planning as far more than simply planning for your death and passing on your “estate” and assets to your loved ones—it’s about planning for a life you love and a legacy worth leaving by the choices you make today.

Tags Estate Plan, Last Will & Testament, Personal Family Lawyer

Estate Planning

What Happens To Your Social Media Accounts When You Die?

Post author By Sara Thomas
Post date May 3, 2024
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When you die, what happens to your online life? Each social media platform has its own rules for dealing with the accounts of deceased users, ranging from permanent deletion to transforming accounts into places for mourning and memory. Understanding these options is essential for managing digital assets responsibly and respecting your wishes. So let’s take a look at the various policies of major social media sites and what you can do to make sure your accounts are handled the way you want. After all, our social media accounts reflect our personalities, interests, and memories, so we want them handled with care.

What Each Platform Allows

Let’s take a look at the practical aspects and discuss what each digital platform allows or requires. Note that these provisions are updated as of April 2024.

Facebook. Facebook offers two options for accounts of deceased users: either close the account permanently or convert it into a memorial account where loved ones can share memories. The platform allows you to designate a “Legacy Contact” while you’re alive; someone who can manage your memorialized account by updating your profile picture, accepting friend requests, and posting memories. Importantly, they cannot log into the account or view your private message history.

Instagram. Instagram also allows accounts to be either memorialized or permanently deleted. A memorialized Instagram account will display a “Remembering” label and will not appear in public spaces like the “Explore” section. The process requires proof of death, such as a death certificate, so someone will need to provide that after you’re gone.

TikTok. TikTok permits family members or legal representatives to request the deactivation of a deceased user’s account by providing appropriate proof of death. Unlike Facebook and Instagram, and at the time of this writing, TikTok does not currently offer a memorialization option, so your account is permanently removed once the request is processed.

X. X (formerly known as Twitter) allows the family to close the account of a deceased user. This involves submitting proof of death, after which your account and its contents are permanently deleted. X does not provide a memorialization option.

YouTube. YouTube is covered by Google’s overall policies, which offer a proactive feature called the Inactive Account Manager. This allows you to set instructions for your account if you become inactive for a specified period. You can also choose to have your data shared with trusted contacts or have the account deleted.

LinkedIn. On LinkedIn, immediate family members or colleagues can request to remove a deceased member’s profile by providing proof of death. LinkedIn focuses on maintaining a professional network and so does not offer account memorialization.

How to close or memorialize an account

It’s important to know that social media platforms generally discourage logging into a deceased person’s account as it poses privacy and security risks. To close or memorialize your account, family members must directly contact the service and provide the necessary documentation. They won’t be able to make a phone call, either – they’ll have to find out how to close or memorialize your account on each site separately, which can be time-consuming and frustrating. But there’s a better way! You can create a plan that helps your loved ones navigate the process. To do that, you need a trusted estate planning lawyer.

What an Estate Planning Attorney Can Do

A trusted estate planning attorney plays a crucial role in helping manage your digital legacy, ensuring that your wishes for your online accounts are carried out after your passing. Here’s what a skilled attorney can do to help ensure that your loved ones have the necessary information and authority to manage your accounts:

1. Create a Digital Asset Plan

An estate planning attorney can help you draft a digital asset plan that details your wishes for each of your online accounts. This plan can specify which accounts should be closed and which should be memorialized. It includes all kinds of digital assets, from social media accounts and emails to digital wallets and personal blogs.

Your attorney can also guide you in appointing an executor, a person who will be responsible for managing your online assets according to your wishes. A knowledgeable attorney will explain the responsibilities involved and help ensure that the executor has the legal authority they need to act on your behalf with various digital platforms.

2. Provide Necessary Legal Documentation

A skilled attorney can prepare necessary legal documents that authorize your executor to access your accounts. This might include special powers of attorney and directives that are included in your will, trust, or in a separate document.

3. Secure Your Account Information

A trusted attorney can suggest secure ways to store your account usernames, passwords, and any other necessary information. This information can be kept in a way that respects privacy and security but becomes accessible to the digital executor or designated individuals after your death.

4. Update the Plan Over Time

As laws and platform policies change, a trusted estate planning attorney can help update your digital estate plan. This ensures that it remains compliant with new regulations and continues to reflect your wishes accurately.

However, it’s important to know that most estate planning attorneys treat their clients as a “one and done” transaction. Once your plan is signed, they won’t contact you again to ensure that your plan stays updated over time. And they won’t explain that failure to update your plan regularly means your plan won’t work when you need it to. Instead, work with an estate planning attorney who will keep in touch for your lifetime to ensure your plan works.

How We Can Help

We don’t merely dispense legal counsel; we safeguard all your assets and guide you to make the right decisions for your unique situation. We take the time to fully understand what’s important to you, and then together, we’ll craft a thoughtful and holistic plan so you and your family can avoid the stress, conflict, and chaos that comes with incomplete planning – including incomplete digital planning.

To learn more about how we approach estate planning from a place of heart and understanding, schedule a complimentary 15-minute call with our office.

Tags Digital Asset Plan, Digital Assets, Estate Plan, Social Media

Estate Planning

Why Estate Planning Is the Best Use of Your Tax Refund

Post author By Sara Thomas
Post date April 25, 2024
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When that extra bit of money from your tax refund lands in your bank account, it’s easy to start dreaming about all the ways you can use it. Financial experts may tell you that it’s a chance to pay off debts, tuck away savings for an emergency, or add to your retirement savings. However, there’s an often-overlooked option that not only provides immediate satisfaction but ensures long-term benefits for both you and your loved ones: estate planning.

In its most basic terms, estate planning involves making a plan for what happens to your belongings and finances after you’re gone, or if you become incapacitated. Think of it as creating a roadmap for your loved ones to follow, ensuring they’re taken care of and know exactly how to handle your estate according to your wishes. After all, someone will have to do something with your stuff after you’re gone, and if you’re the one who takes care of it while you can, you can save your loved ones a lot of pain. And, make sure you are cared for in the way you want, by the people you want, if you become incapacitated.

Why You Need an Estate Plan

Not only do you need a plan for what happens with your finances and personal items after you’re gone or become incapacitated, but you also need an estate plan if any of the following are true:

You care about the people in your life who will handle things for you, if you cannot.
You want your wishes to be honored.
You want to save money and time (for yourself and your family).
You have minor children.

So now you know you need an estate plan but aren’t sure what to do next. If you feel like the process seems daunting, don’t worry. Taking that first step is easier than you might think.

Put Your Tax Refund To Work

You might consider using your tax refund to do your estate plan on your own or opt for a cheap online service. While these options can seem cost-effective at first glance, they don’t offer the comprehensive coverage and personalized advice that your unique situation requires.

Instead, investing your refund in working with a heart centered, holistic attorney with a process in place for ensuring that your plan works throughout your lifetime is a much wiser choice. We will get to know you, your family dynamics, and your assets, and then help you choose the right plan for you both now, and into the future. Creating a will or a trust isn’t a one and done thing you do, and then put it on a shelf or in a drawer and never look at it again. When you do that, your plan is almost guaranteed to fail when the people you love need it. In that case, it’s almost better to do nothing because then at least you have it on your to-do list. False security is one of the greatest risks of estate planning.

We will help you navigate the law, and also help you tailor your estate plan to fit your specific needs, as well as provide peace of mind knowing that your estate plan is thorough and legally sound. Remember, when it comes to safeguarding your family’s future and ensuring your wishes are accurately reflected, the value of expert guidance is well worth the investment.

At the very least, your attorney should help you create the relevant documents, including:

Creating a Will
Setting Up a Trust
Selecting Guardians and Executors
Managing Taxes and Expenses

These are all undoubtedly important, and what most estate planning attorneys will do for you. However, we will go a few steps further, ensuring that investing your tax refund in an estate plan is the very best investment you’ll make all year. In fact, we promise to deliver a plan to clients that works throughout your lifetime. We do this by:

Empowering you to choose the right plan that fits your unique family situation, values, and budget (most lawyers will tell you what you need);
Ensuring your assets are inventoried and don’t end up lost (most lawyers won’t tell you that this happens – a lot – to the tune of billions of dollars every year);
Creating a Kids Protection Plan® , a comprehensive plan outside of your will for what happens to your kids if something happened to you (most lawyers don’t even think to do this);
Being a trusted advisor for your family, so they have someone to turn to for help when something happens to you (most lawyers don’t ever make contact with your family after you’ve completed your estate plan);
Capturing your memories, stories, values and family traditions so they are passed down to the next generations (most lawyers don’t think to do this either); and
A system for updating your plan at least every three years to make sure your plan stays up to date so as your life changes and the law changes, your plan works when you need it to (most lawyers treat their clients as a “one and done” transaction, never checking in again and letting your plan go stale).

What If I Didn’t Get a Refund This Year?

Now you may be thinking, bummer, I didn’t get a refund this year. Know these two things: 1) Estate planning is always a wise investment whether you get a refund or not; and 2) Our unique process called Life & Legacy Planning can help you get more financially organized than you’ve ever been before, so that you make the very best decisions about the allocation of your resources for yourself and the people you love.

Estate Planning: The Ultimate Expression of Love

Among all the ways to use your tax refund, estate planning with us ensures that your love and care for your family endure long after you’re gone. It’s an act of foresight that not only secures your family’s financial future but also leaves a legacy.

We will work with you to create a complete plan that is worth more to your loved ones than your tax refund will cover. To learn more about our Life & Legacy Planning process, and how we approach estate planning from a place of heart, schedule a complimentary 15-minute call with our office.

Tags Asset Protection, Estate Planning, Personal Family Lawyer®, Tax Refund

Estate Planning

Helping Your Teen Navigate Cryptocurrency

Post author By Sara Thomas
Post date April 17, 2024
No Comments on Helping Your Teen Navigate Cryptocurrency

In an era where digital innovation shapes every aspect of our lives, it’s no surprise that our teenagers are drawn to the allure of cryptocurrency. This digital form of money represents a shift away from traditional financial systems. If you are the parent of teens, understanding cryptocurrency is crucial so you can provide them with the guidance they need to navigate this new world safely and wisely.

What is Cryptocurrency, Exactly?

Cryptocurrency or “crypto”, is, in essence, virtual money that can be used to buy goods and services. It can also be traded for profit, much like stocks. However, unlike the dollars in your wallet, crypto exists only in the digital world. The crypto universe is vast, with thousands of digital currencies out there.

Crypto is based on blockchain technology, which ensures transactions are secure, transparent, and decentralized, so they’re not controlled by any government or financial institution (there are pros and cons to this that we’ll describe below). Imagine blockchain as a digital Lego tower where each block represents a piece of information, and once a block is added to the tower, it can’t be removed or altered, making it a super secure way to keep track of cryptocurrency transactions – kind of like a high-tech, unbreakable diary

A critical component of understanding cryptocurrency is the concept of a crypto wallet. Unlike a physical wallet, a crypto wallet doesn’t store currency; instead, it holds secure digital keys that allow access to cryptocurrencies.

What Parents of Teens Need to Know

To the younger, digital-native generation, cryptocurrency is an exciting and innovative concept. They’re not afraid of technology and investing online. They’re aware of the potentially significant returns on investments, stories of cryptocurrency millionaires, and the prospect of being part of a cutting-edge financial movement. This is why crypto is very attractive to teens.

Parents should know that while there are no laws specifically prohibiting teens from owning or trading cryptocurrency, most platforms and exchanges require users to be 18 years old. For eager and younger investors, custodial accounts present a solution. These accounts allow parents to oversee their teen’s investments, providing a controlled environment where teens can learn about digital currencies.

These accounts not only allow parents to monitor their teen’s investment activities but also offer a hands-on educational experience in managing and understanding digital currencies. It’s a balanced approach that combines the practical aspects of investing with the security of parental oversight.

Be Aware of the Risks

While learning how to invest in crypto can be a great learning activity for you and your teen, be aware of the risks involved. For one, the crypto market is highly volatile. Prices can surge or plummet within a short period, making investments speculative and risky. It’s crucial to have open discussions with your teen about the importance of not investing more than they can afford to lose, and about the reality of the speculative nature of digital currency. Teach your teen the importance of research, diversification, and long-term thinking and you’ll help instill responsible investment habits that will last a lifetime (and make you proud!).

Most importantly, ensure that you know how to get into their cryptocurrency accounts, in case something happens. And, that someone knows how to get into your accounts as well. The biggest risk to your cryptocurrency investments is that you haven’t documented them such that someone could access your accounts, when something happens to you. Contact us and let us help.

Alternatives and Best Practices

For families that find direct investment in cryptocurrency too daunting, there are alternative ways to engage with the digital economy. Encouraging your teen to learn about blockchain technology or exploring investments in crypto-related stocks and ETFs can provide a safer introduction to the concepts without the direct risks associated with cryptocurrency trading.

However, if you’re ready to make a go at it, here are some best practices to keep in mind:

Foster a Culture of Learning. The rapid evolution of digital currencies makes continuous learning essential. Encourage your teen (and take the opportunity yourself) to stay informed about the latest developments by reading reputable news sources, listening to podcasts, and even speaking with a financial advisor.

Establish Guidelines. Before your teen makes any financial investment, it’s important to establish clear guidelines. Discuss together how much time and money is reasonable to invest, the importance of privacy and security in digital transactions, and the expectations for responsible behavior. Setting these ground rules early on can lay a strong foundation for healthy financial habits.

Embrace the Future. Regardless of whether your teen decides to invest in cryptocurrency, understanding this new facet of the financial world is invaluable for you. The rise of digital currencies offers a unique opportunity for parents and teens to learn together about the future of money, technology, and personal finance. It’s a chance to explore new concepts, discuss values and responsibilities, and prepare for a future where digital currencies may play a significant role.

Prepare Yourself and Your Teen With Our Guidance

Whatever the future holds, we believe it’s important to educate your children about finances so you leave a legacy of fiscal responsibility when you’re gone. That’s why we help ensure that when you’re no longer here, your assets – including cryptocurrency – are passed on the way you want, easily, and without your family ending up in court and conflict. We do that by approaching estate planning as a relationship – a lifetime relationship with you as your and your family’s trusted advisor so you have someone to turn to in times of change and uncertainty, and in times of joy and excitement.

To learn more about how we can guide you and your family to secure the future you want, schedule a complimentary 15-minute call with our office.

Tags Cryptocurrency, Family Finances, Finance, Personal Family Lawyer

Estate Planning

How To Protect Your Legacy In a Blended Family

Post author By Sara Thomas
Post date April 4, 2024
No Comments on How To Protect Your Legacy In a Blended Family

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Anyone who’s seen an episode of “Modern Family” knows that families these days come in many different shapes and sizes. Long gone are the days when a “family” was defined as a mother, father and two children. The new normal is the blended family.

A “blended family” comes into being when a single parent remarries. While everyone may get along effortlessly while the parent is alive, that too-often doesn’t happen once the parent dies. Why? Because the law still hasn’t caught up to our modern definition of “family.” The law often favors the spouse, which works well when the spouse and the deceased have children together. But when the deceased parent has children from another marriage, the children can (and often are) cut out of their inheritance.

Other than the law being slow to catch up, there are a few more reasons why this happens:

The parent trusts the new spouse completely and can’t comprehend the spouse ever doing anything to harm the children;
The new spouse may place his or her own interest ahead of the children – or have children from a first marriage and want them to benefit instead; or
The parent has not been educated about what could happen when he or she dies, and hasn’t consulted with a competent attorney to get educated.

A True (and Common) Nightmare

In a recent marketwatch.com article, a woman wrote about her own nightmare scenario. Her father owned several properties, including the house she lived in as a child. He remarried, and when his health started to decline, her stepmother made financial moves so he could qualify for government health care benefits under the Medicaid program. Whereas Medicaid is a needs-based program (meaning, you only qualify if you can’t afford to pay), many people with means are able to take advantage of legal maneuvers and set their assets aside so they qualify. Doing this keeps assets protected for the next generation(s).

However, in order to qualify for Medicaid, Dad had to transfer his assets to someone else while he was alive. That “someone else” was Stepmom. Apparently, she convinced Dad it was the right move and that she could be trusted with his properties. Dad eventually died, and so at the time of his death, Stepmom owned all his properties, including the childhood home. Stepmom went on a selling spree, cashing in on them all.

And guess where the money went? If you guessed Stepmom and HER daughter, you’d be right. Dad’s children from his first marriage got nothing.

Surely That’s Not Legal…

You may be thinking that’s a horribly unfair outcome – so bad that it has to be illegal. But it’s not. It’s completely legal. Once Stepmom owned the properties, she was free to do anything she wanted with them. She deliberately chose to give her stepchildren none of the proceeds and under the law, she had the absolute right to do this. The children had no recourse; they’d lose in court.

And so we’re left to wonder: is this the outcome Dad wanted? Could he have foreseen Stepmom was capable of cutting out his children? And did he know there was another way he could have protected them and still qualified for government benefits? With education from a trusted lawyer, would he have done anything differently?

How to Ensure Your Children Are Spared From the Potential Consequences

If you want to avoid the same tragic consequences, there are some steps you can take:

1. Don’t Be Afraid of the Inevitable: Benjamin Franklin is quoted as saying, “Nothing is certain but death and taxes,” and he was half right (you can avoid estate taxes with careful estate planning but that’s a topic for another article). Death is certain. Yet we’re all uncomfortable talking about death, much less planning for it. Accept death as a reality then make plans while you can.

2. Hold a Family Meeting: Having a heart-to-heart about your wishes, values and goals can go a long way in preventing misunderstandings after you pass away.

3. Educate Yourself: Hands down the single most important thing you can do is educate yourself, and educate yourself now. Don’t rely on the internet. Laws are different from state to state, families are different, assets are handled in different ways, and the internet won’t take all this into account.

4. Work With a Lawyer Who Understands Your Family Dynamics: One size doesn’t fit all when it comes to planning for life and death matters like these! What works for one family might not work for yours. You need a tailored plan to fit your unique needs. You deserve, and your family deserves, to have a plan that works when your family needs it. That’s why you need a trusted, heart-centered attorney who will appreciate your unique situation and educate you so you’re empowered to put the right plan in place. Your family’s future literally depends on it.

We Can Help

Your loved ones don’t have to face tragic circumstances when you pass. With honest conversations, proper education, and guidance from a trusted attorney, you can put together a plan that keeps the peace and makes sure your loved ones are taken care of just the way you want.

To learn more about how we approach estate planning from the heart and yet with all the strategies you need to keep your assets in the family, schedule a complimentary 15-minute call with our office.

Tags Blended Family, Estate Planning, Modern Family, Personal Family Lawyer, Remarriage

Estate Planning

Understanding the Intersection of Love and Law

Post author By Sara Thomas
Post date March 29, 2024
No Comments on Understanding the Intersection of Love and Law

Love is wonderful—joyful moments, shared dreams for the future, and yes, some legal considerations too. For married couples, the law has default provisions in place for what happens to your assets if one of you dies, but those default plans may not align with your personal preferences or the life you’ve built with your partner.

If you’re an unmarried couple, the absence of a plan could leave you vulnerable, risking the loss of assets or the inability to make crucial decisions about your property or your medical choices.

To better understand how a lack of planning can leave you and your partner out in the rain, let’s look closer at these important areas that are affected when a relationship ends through death or divorce.

1 | Property Ownership

Let’s say you and your partner purchase a home and other assets together. Without clear documentation outlining ownership rights, a dispute can arise if the relationship ends in a breakup. But breakups aren’t the only danger.

If you aren’t married and one of you passes away, the other partner might find themselves without a rightful claim to the property, potentially facing homelessness or a significant financial loss.

If you own any property with anyone else or if you want to ensure your property lands in the hands you choose in the event of your death, plan for that property as soon as possible.

2 | Healthcare Decisions

In the unfortunate event of a medical emergency where one partner becomes incapacitated, lacking appropriate legal documentation could impede the other partner’s ability to make critical healthcare decisions on their behalf. This can lead to delays in medical treatment or disagreements among family members over the person’s treatment, causing unnecessary stress and complications during an already challenging time.

3 | Guardianship for Children

For couples with children, failing to establish guardianship arrangements in the event of both parents’ incapacity or death can have devastating consequences. Without a designated guardian, children may be placed in the care of individuals who may not align with your wishes or values, leading to potential custody battles and emotional upheaval for the children and your extended family.

If you and your partner end your relationship without coming to a mutual agreement on a guardian for your children, things could get even more chaotic – especially if one of you has documented your desired guardian and the other partner hasn’t.

Worst of all, typical wills don’t cover planning for the needs of minor children sufficiently. It’s why we offer the Kids Protection Plan®, specifically designed to ensure your children are never raised by anyone other than people you know, love and trust, and are never taken from your home, into the care of strangers.

4 | Business Interests

If you and your partner share business interests or investments, the lack of a solid plan could jeopardize the future of these assets. Without clear instructions, the surviving partner may face challenges in managing or transferring ownership of these assets, potentially leading to financial instability or the dissolution of the business.

Be Proactive, No Matter What the Future Holds

In each of the scenarios above, the absence of proactive estate planning measures leaves individuals vulnerable to legal and financial uncertainties. By taking proactive steps that consider what will happen when your relationship ends, couples can safeguard their assets, ensure their wishes are honored, and provide peace of mind for themselves and their loved ones.

Not sure how to start the conversation with your partner?

Start by explaining to your partner your desire to safeguard the life you’re building together. Just as relationships evolve over time, your wishes and how they are documented should too. Continuously engaging in dialogue and revisiting your plans ensures they remain aligned with your evolving needs and aspirations.

Let Us Make It Easy to Plan Ahead

Whether you’ve already started the conversation with your partner or need more guidance, planning for the future of your relationship can feel overwhelming. We can help.

At our firm, we don’t merely dispense legal counsel; we safeguard your love story. We comprehend the profound significance of your relationship and are dedicated to ensuring its protection. And whenever (and however) your relationship ends, we’ll work with you to create a plan that considers these contingencies ahead of time so you and your loved ones can avoid the stress, conflict, and chaos that comes with incomplete planning.

To learn more about how we approach estate planning from a place of heart, schedule a complimentary 15-minute call with our office.

Tags Divorce, Estate Planning, Marriage, Personal Family Lawyer®

Estate Planning

3 Estate Planning Documents Your Parents Need

Post author By Sara Thomas
Post date March 19, 2024
No Comments on 3 Estate Planning Documents Your Parents Need

As your parents gracefully navigate their golden years, ensuring their peace of mind (and yours!) becomes a priority. One of the very best things you can do for your own future, and that of your entire future lineage – your children, grandchildren, and beyond – is to take great care of the people you were born to or raised by.

The questions to start asking are:

How will you help them if they become ill or injured?
Who will take care of their bills and make sure their health needs are met?
How do they want to be cared for, if and when they cannot care for themselves?

The starting place is open conversation and a power trio of estate planning tools swoop in to save the day: the General Power of Attorney, the Power of Attorney for Healthcare (including a Living Will), and the HIPAA Waiver.

Let’s break down why these tools are the unsung heroes of comprehensive estate planning for your parents, and how to bring them up so you can support your parents to get them created or updated, no matter their net worth.

1. General Power of Attorney (POA)

A General Power of Attorney (or POA) grants a person you name (often a family member or trusted friend) the authority to manage your financial affairs if you become unable to do so yourself. From handling bills to making investment decisions, the General POA ensures that your financial matters are handled, whether you’re experiencing a temporary illness or a long-term inability to manage your money, such as in the case of memory problems.

If your parents have assets that you must be able to access easily in the event of their incapacity, you may decide that a POA for accessing their accounts is not sufficient, as it can be difficult to get access to bank accounts even with a POA in place, and will require court action. In that case, the best course of action is to ensure that their assets are titled in the name of a trust, with you or someone you trust as the named successor Trustee, who can step in and handle financial matters for your parents, without any court involvement, when needed.

2. Power of Attorney for Healthcare and Living Will

It’s possible your parents already lean on you for guidance with their healthcare decisions, and it’s equally possible they don’t share details of their healthcare with you at all. No matter which side of the spectrum your parents stand on, the question of what will happen to their healthcare needs if they become seriously ill can feel overwhelming — and trust me, it’s even more overwhelming during moments of medical crisis.

Thankfully, a Power of Attorney for Healthcare and Living Will allow your parents to explain their medical wishes to guide medical providers and family members on what treatments and life-saving measures they’d like to have, even in the toughest of times.

The Power of Attorney for Healthcare designates someone to make these medical decisions on behalf of your parents if they’re unable to do so. This trusted individual becomes the advocate, ensuring that healthcare choices align with your parents’ values and preferences.

Meanwhile, the Living Will – also known as a Declaration to Physicians – outlines your parents’ wishes regarding life-sustaining treatments in the event they’re unable to communicate. From CPR to artificial hydration, this document provides clarity amidst uncertainty, giving both your parents and their loved ones peace of mind that the decisions being made around their care are what they themselves would want.

3. HIPAA Waiver

In the digital age, privacy is paramount – but what happens when privacy becomes a barrier to essential healthcare-related communication? Enter the HIPAA Waiver, the ultimate tool for opening communication roadblocks in times of need.

HIPAA (the Health Insurance Portability and Accountability Act) protects the privacy of individuals’ medical records. While this is crucial for safeguarding sensitive medical information, it can sometimes hinder the flow of communication between healthcare providers and family members, especially for the elderly and those incapacitated by an illness or injury.

By signing a HIPAA Waiver, your parents authorize specific individuals to access their medical information and speak directly to their medical providers, ensuring seamless communication and informed decision-making. This is essential in medical emergencies but is also extremely helpful if your parents need help hearing their doctor or understanding their medical advice.

How to Bring Up Estate Planning With Your Parents

The best way to bring up estate planning with your parents is to get your own planning handled first. Then, let your parents know that in the process of handling your own planning, your lawyer raised the question of whether you were an agent under anyone else’s power of attorney, or named as a successor Trustee in your parents’ Trust, or if you are going to be caring for aging parents at some point.

And, if you have worked with a lawyer and they didn’t ask you those questions, give us a call and let’s review your plan and your parents’ planning to make sure that everything you’ll need is dialed in. This can all get quite messy very quickly, and now is the time to talk with your parents.

The Sooner the Better

You might be thinking, “Why the rush? Can’t we tackle this later?” Here’s the scoop: Life is unpredictable, and procrastination can be a costly gamble. Waiting until a crisis strikes to get these tools in place can lead to a whirlwind of legal and emotional chaos, leaving your parents’ wishes unfulfilled and their affairs in disarray.

By proactively planning ahead, you’re not just checking items off a to-do list – you’re investing in your parents’ peace of mind and yours.

Don’t wait for a storm to hit – schedule a 15-minute call today to learn how our unique Life & Legacy Planning process is designed with your family’s well-being in mind, offering personalized guidance and support every step of the way.

Tags Estate Plan, Health Care Directives, HIPAA Waiver, Parents, Power of Attorney, Sandwich Generation

Estate Planning

13 Ways to Show Your Finances Some Love This Year – Part 2

Post author By Sara Thomas
Post date March 14, 2024
No Comments on 13 Ways to Show Your Finances Some Love This Year – Part 2

Last week we explored seven ways to show your finances and your family some love with smart, tax-advantaged financial tips for the new year:

Make a Qualified Charitable Distribution (QCD)
Front-load Your 401(k) Contributions
Set Up a Roth IRA for a Child
Make Donations During Spring Cleaning
Give the Gift of Appreciated Stock Shares
Establish a 529 College Plan
Make a Roth Conversion

If you missed it, check out Part 1. This week, we are continuing the financial love with 6 more tips you can use to benefit your family this month and the year ahead.

Let’s dive in.

8 | Spread The Love With The Annual Gift Exemption

Do not underestimate the power of spreading love through financial generosity. By leveraging your lifetime gift tax exemption, you can minimize estate taxes and provide a significant financial boost to your heirs during your lifetime. Did you know you can gift up to $18,000 per person to an unlimited number of people each year without having to file a gift tax return? This allows you to share your wealth with family and friends in a tax-efficient manner. These gifts not only escape the estate tax but also foster stronger connections and deepen relationships with your loved ones. Whether it’s helping with educational expenses, supporting a dream vacation, or simply offering a helping hand, using this exemption allows you to share your wealth and make a lasting impact on those you cherish most. The current high exemption amount of $13.61 million is set to sunset in 2025, so if your estate is greater than $5M, now is the time to plan.

9 | Allocate More Funds To The Generation Skipping Tax Exemption

As you plan for the future, it’s essential to consider the next generation. By allocating additional funds towards your generation-skipping transfer tax exemption (of up to $13.61 million), you provide a seamless transfer of assets to your grandchildren or future beneficiaries. This strategic move not only minimizes tax implications but also lays the groundwork for preserving your family’s wealth for generations to come.

10 | Make an Extra Mortgage Payment

Your home is more than just a place to live—it’s also a valuable asset that can offer tax advantages. By making an extra mortgage payment on your primary home loan, you can increase your mortgage interest deductions on your tax return. Not only does this reduce your taxable income, but it also accelerates your path to homeownership, saving you money in the long run.

11 | Complete Repairs on Rental Property

Investing in your rental property not only enhances its value but also offers tax benefits. By completing repairs on your rental property, you can offset rental income on your tax return while providing a better living environment for your tenants. It’s a win-win situation that improves your property’s profitability and strengthens your relationship with your renters.

12 | Create a Lifetime Asset Protection Trust

Planning for the unexpected is an act of love towards your spouse and children, and when you know the right tools to use (like we do) you can make sure your family is provided for and protected for generations to come. One of my favorite ways to do this is using a Lifetime Asset Protection Trust. This tool allows you to protect the assets you leave for your children from any future financial trouble, like lawsuits or divorces.

13 | Create Your Estate Plan

Finally, don’t overlook the importance of estate planning in showing love to your family. By finalizing your Will, Revocable Trust, Power of Attorney, and Advance Medical Directive, you ensure that your wishes are carried out and that both you and your loved ones are protected in the event of incapacity or death. It’s a vital step towards providing peace of mind for you and your family, allowing you to focus on enjoying life’s precious moments together. And remember, a plan is more than a set of documents. It’s a lifetime of wise decisions about your life and legacy.

Show Your Love Where It Matters Most

It’s never too late to make loving financial and planning decisions for your loved ones – and yourself!

We know the value of planning for the future. But we also know the value of planning for the life you want today and the legacy that extends far beyond your assets.

Schedule a complimentary 15-minute call to learn how we can help you create a Life & Legacy Plan that will take care of everyone and everything you love.

Tags Annual Gift Exclusion, Estate Plan, Family Finances, Generation Skipping Tax Exclusion, LAPT, Mortgage, Personal Family Lawyer, Rental Maintenance

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