Estate Planning

Friday, May 18, 2012

Do You Know Your Taxes Are Going Up?

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

In April, I attended a national meeting of the American Academy of Trust, Estate and Elder Law Attorneys, a premier educational seminar for attorneys like me who do estate planning.  From that experience, I want to share some important information with you.

Taxes are scheduled to increase dramatically in 2013: 

                                                                             2012                  2013

Estate and Gift Tax – Top Tax Rate                     35%                   55%

Estate and Gift Tax Exemption                             $5 million           $1 million

Federal Income Taxes – top rates

         Capital Gains                                                15%                   20%

         Qualified Dividends                                       15%                   39.6%

         Interest & Compensation Income                  35%                   39.6%

In the current political climate, Congress and the President are not likely to reach a compromise on these issues, and in fact the President wants to make “the rich” pay their “fair share” in taxes.

What does this mean for you?  2012 is a year of opportunity while taxes are lower.  It would be wise to schedule an appointment to review your estate plan before September 1, and see if there are steps you can take to improve your family’s position.  If you wait to the last minute, it may not be possible to put a plan in place before the law changes.

Friday, May 04, 2012

A Veteran’s Benefit Is Available To Help Pay For Care.

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

If you are a Veteran who served 90 days on active duty, one day during war time, and were not dishonorably discharged, you may be able to access a government benefit to help you or your spouse pay for caregivers in your home, or help pay for assisted living bills.  The benefit is called a non-service connected pension called aid and attendance.  To qualify it is necessary to pass a number of tests.  These include income and asset tests. 

 What is the benefit?  The maximum pension rates for “Pension plus Aid and Attendance” are as follows:

Single Veteran                         $1703 per month or $20,447 per year

Married Veteran                      $2,019 per month or $24,239 per year

Surviving Spouse                     1,094 per month or $13,138 per year

Veteran married to a Veteran    $2631 per month or $31,578 per year.

Who can help a Veteran or the Veteran’s spouse apply for this benefit?  In Idaho, we have the Office of Veteran’s Advocacy, which is part of the Idaho Division of Veterans Services.  They will help you complete the forms for FREE.  Their address is 444 W. Fort Street, Boise, Idaho 83702 and their phone number is 208-577-2300.   An assisted living or nursing home or any other facility or other organization that is paid out of the VA benefits is considered an interested third party and cannot charge or pay for the preparation, presentation or prosecution of a claim.

Friday, April 13, 2012

Where Do You Keep Your Important Papers?

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

         Who knows where you keep your important papers?  In an emergency situation, valuable time could be wasted tracking down important legal papers.  Make it a point to tell your children, successor trustee or personal representative where they can find your original documents.  If you store those documents in a safe deposit box, or a safe at home, make certain they have the ability to get into the box or safe. 

         We frequently receive calls from our clients’ family members who want to know where they can find these documents, and they need them “now” because there is a family crisis.   There are legal limitations that tie our hands so often we cannot provide our copies to the family. 

         You do not have to tell anyone about the contents of the papers, just let them know how they can access them in an emergency.

Friday, March 30, 2012

Why Is the City Digging Up Telephone Poles?

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

I walk my dogs every day.  We cruise the neighborhood.  Of course making it safe, but also noticing any changes or new things.  For the last month I have noticed piles of dirt around the wooden telephone poles.  It seemed odd to me.  Yesterday, I saw a young man digging around a pole.  I asked him why and he told me the city decided it is much cheaper to dig the dirt from around the wooden poles, treat the wood with something to stop any rot or bug infestation, wrap it in a special cloth and then refill the dirt.  This saves them loads of money because it is cheaper to maintain the poles, than it is to replace them.  Of course, that makes sense.  We have limited resources, and it is cheaper to take care of what we have, rather than let it fall apart and only notice when it fails.

How does this relate to you?  If you have gone to the trouble and effort, and paid for, an estate plan to help protect you and those you care about if you are ill or die, why not make certain it still works.  When the telephone poles were installed they were the best, but as time goes by things change.  The City still wants them to be the best and can help that happen with maintenance.  You, too, need to maintain your plan so that it works when you need it   How can you do this?  Set up a review appointment with your estate planning attorney to review your existing plan to determine if it covers your current circumstances and what you want to happen when you become ill or die.  If not, it is easy to make changes now before there is a problem.  The City is saving money and headaches.  So can you.

Friday, March 23, 2012

Whitney Houston's Will Is Now Public - What Was She Thinking?

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

Whitney Houston’s Last Will and Testament is available on the internet and everyone can see the terms of her estate plan.  Her estate goes to her daughter and is managed until she is 30, with some assets going to her earlier.   Do you want your affairs made public?  There were similar news reports about the Last Will and Testament for Jackie Kennedy Onassis and Elvis Presley.   Every word of their Wills became public.

How does this happen?  When someone dies with a “Last Will and Testament”, their Estate must be probated in the local court.  This means the Will is filed with the court along with a petition requesting that the terms of the Will be followed and that someone nominated in the Will be appointed by the court to wind up the affairs of the deceased person.  All of these documents filed with the court become a public record and are available for anyone to view.  They just need to go to the courthouse and pay for copies.  

Maybe this is not a problem for some people.  But many of us would not be happy if the details of our personal lives were available for strangers to review.  It is none of their business.

If this is a concern of yours, you may want to consult with your lawyer about how to create an estate plan that keeps your affairs private and still accomplishes your planning goals.

Friday, March 16, 2012

Hope is not a plan. Is it OK to have two house fires?

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

I talked to a wife this week who has been a caregiver for her demented husband for years.  Recently he has taken to getting up in the night and using firewood stored by the fireplace to start fires on the hearth and in the firebox!  Fortunately, his wife noticed both times and put the fires out.  She is grateful for these miracles but sees no need to change how they live.  

Her desire is to continue to care for and keep him at home with no help.   This is a dangerous plan for both of them.

Fortunately, their children and doctor have taken notice and are working to make changes that will result in a safer environment for each of them with plenty of help.

Hope is not a plan.  That approach is living in a fantasyland unrelated to real world events associated with ageing.

Friday, March 02, 2012

Inheritance Trust

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

Marie died and $400,000, which was all of her estate, went to her son, Chris.  Chris was married to Jane and they had three children.  Chris died two years later giving all of his assets, including those he inherited from his mother, to his wife.  After a few years, Jane married Tim, a widower with one child.  Jane and Tim did not have a prenuptial agreement, and they just decided to put all the assets each of them owned in joint names.  Jane died a year after marrying and everything she owned went to Tim.  When Tim died everything went to his child.  Nothing went to Chris and Jane’s children. 

Do you want your son’s widow to give your son’s inheritance to her new husband rather than your grandchildren?  If not, you may want an “Inheritance Trust.”

Some other names for this type of trust are “dynasty,” “heritage,” or “legacy” trusts.

This trust provides powerful protection for the individuals who inherit from you.  How does an inheritance trust work?  Upon your death, the monies a person inherits from you will be deposited directly into this trust rather than being given to them out right.   The funds that are placed in this trust will be protected from divorces, creditors, lawsuits, and bankruptcy.

Using an inheritance trust, we will rewrite the story about Chris.   When Marie died, $400,000 went to Chris. This time Marie has created an irrevocable inheritance trust naming Chris as the Trustee and the sole beneficiary during his lifetime.  When Chris dies, whatever remains in this Trust will go to his three children.  Marie dies, and Chris puts the $400,000 in this inheritance trust.  Chris decides how the funds will be invested, and he has the right to withdraw the money under certain circumstances. When Chris dies, those funds will go to his children and stay in Marie’s family. This trust provides extraordinary protection for Chris because the money will be protected should certain life tragedies occur, such as a serious illness, financial reversal or divorce.

If you want to explore this planning opportunity, call 208-344-0375 to set up an appointment, if we are the right law firm to help you.

P.S.  Boise Little Theater has three grand plays that address the issues of forgetfulness as we age.  They are so much fun to watch and listen to.  I went to the opening night last week.  The plays continue through March 10.  A part of the review from the Boise Weekly follows.  If you want to go, call 342-5104 or go to boiselittletheatre.org

The first is the short drama A Candle on the Table. The play features three elderly women of different social backgrounds who meet for lunch on their first day in an old folks home. The new housing accommodations stir up the sentimental memories of these old-timers, and when a matron places a candle on the table, it incites the women to share different nostalgic memories of the past.

The second play is the comedy Lost, from Tony Award-winning playwright Mary Louise Wilson. The play is about two absentminded elderly women trying to leave the house to go about their day. In the course of preparing to leave, the friends engage in lots of silly banter and end up finding compromise and clarity.

The third play, The Travelling Sisters, is a comedy that centers on the story of two elderly women. Twice a year, the ladies go to a travel bureau and plan elaborate vacations with ritzy accommodations.

Thing is, they can't actually afford these vacations. After a series of events, they have a run-in with a bank robber who, strangely enough, might end with the opportunity to make their dream vacation a reality.

Saturday, February 25, 2012

A Fresh Start - Seven Ways to Get Organized

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

Life gets away from us with endless distractions every day.  Here are seven easy steps you can take to be certain some of the most important parts of your life stay organized.

1. Keep your important papers in one place and tell someone where they are located.  These papers may include some or all of the following:  birth certificates, marriage certificates, death certificates, divorce decree, military discharge papers, life insurance, car titles, deeds, your Last Will and Testament, a Revocable or Irrevocable Trust, financial power of attorney, health power of attorney, living will, Physician’s Order for Scope of Treatment (POST), funeral plans, health insurance, long-term care insurance, a list of your bank accounts, retirement accounts, and other investments, along with a list of your charge card numbers.

2. Sign a financial power of attorney, which allows the people you select to handle modest financial transactions for you if you are not able. 

3. In addition, sign a health power of attorney appointing someone to make health decisions on your behalf if you cannot communicate effectively.

4. Sign a “living will” to elect the type of care you want to receive when you are on your deathbed.  If you fail to have a “living will,” under Idaho law the legal and medical systems require at a minimum that you receive nutrition and hydration with tubes (nose or stomach tubes).  The other two choices are to use all the fancy machines to keep you going as long as possible, or skip the tubes and fancy machines, and just keep you comfortable and “let me go.”

5. Sign a Last Will and Testament or a revocable Trust so that your wishes will be followed when you die as to who will be in charge, and who will receive your “stuff” [the ring and gun] as well as who will receive your estate.

6. If you have a safe deposit box, or a safe at home, make certain someone else has the ability to access them if your are ill, out of town or die. 

7. If you have pets, make arrangements for their care if you are unable to care for them due to illness or death.

If you need a financial power of attorney, health power of attorney, living will or Last Will and Testament, you can start by downloading free forms from my website, www.senioredgelegal.com, and fill them out.  In this instance, “something” is lots better than “nothing.” 

Lastly, mark your calendar for a year from now to review this list and up date your affairs.  That way you will stay organized and prepared which creates security for your future.

Friday, February 17, 2012

Pitfalls of Being a Guardian/Conservator

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

"It’s your fault” may be true if you help a senior update their estate plan after you have been appointed by a court as conservator/guardian for a senior who has trouble taking care of themselves and their daily business.  

What kind of "fault"?   Idaho law lists a number of standards for someone appointed by the court to help others.  If you are a conservator/guardian, you have many responsibilities to the person (the “Ward”) you are officially responsible to help.  Some of the responsibilities are to account to the Court at least once each year about their health, their finances and how they are doing in their living situation.  One major pitfall concerns the estate plan of the person you have been appointed to help.

There is a new Supreme Court Case in Idaho, (Jason Rogers v. Household Life Insurance Company, March 18, 2011) that clarifies the law of estate planning for incompetent persons.  Under the law in Idaho, if someone is determined to be incompetent (that means they are mentally or physically incapable of making decisions), they cannot change their estate plan for any parts of their estate plan that involve a contract, nor can the Court appointed guardian/conservator act on their behalf.  What does this mean?  The Idaho law states if a Court has found a person incompetent, that person also lacks the capacity to contract.  They cannot change the beneficiary on a life insurance policy, an annuity, a "paid on death" (p.o.d.) or "transfer on death" (t.o.d.) account.

Perhaps the person who has been determined "incompetent" has a "good day" where they are engaged, in the present, and know what is going on.  Even on that day, if they change the beneficiary designation on an asset or their guardian/conservator makes the change at their request, the change can be set aside, and the guardian/conservator is a sitting duck for a lawsuit by the original beneficiaries of the asset.

Watch out if you have been appointed by a court to help!  You could be sued for taking a "common sense" step on behalf of a person you are responsible to help.

P.S.

We have an office flag!   Some people have trouble finding our office on the south side of Fort Street, between 10th and 11th, so we now have a white and green flag hanging near our front door to make it easier to notice.  Happy late winter, early spring to you.  My witch hazel has been blooming for 3 weeks and I have seen my first crocus blooming in my yard.  Yeah!

Friday, February 10, 2012

Wishing Does Not Make It So!

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

My 69-year-old Cousin in Seattle called on Sunday to update me with his bad news.  His mother died on Thursday, his daughter was engaged to an unemployed plumber who has 2 young children, and my Cousin was diagnosed with diabetes.  I asked if he had paperwork in effect to help address some of these issues and, like most people, he said “No.”   He did tell me he is “thinking about” doing something. 

Are you over 65 with no plan for your future? 

Do you want to be in charge of your life for the rest of your life? 

Wishing does not make it so.  Put a plan in place to make that happen.

What “parts” does your plan need to take the mystery out of tomorrow and replace it with confidence and security?   Everyone needs to start with the basics.  First, decide and sign papers that set out who will handle your health decisions and finances if you are unable to help yourself.   Most of us do not plan to die tomorrow, but it is a guarantee it will happen some day and you get to elect who gets all your things, from a ring to a bank account.  At a minimum, you need a Last Will and Testament to fully accomplish your plan of who inherits from you when you are gone.

Get started on your plan now.  How?

Contact your Certified Elder Law Attorney to discuss where you are, what you want to accomplish with the rest of your life, and discover the best strategy to get where you want to go.

If it takes you a while to get your appointment, then go to my website, and down load the free forms for a financial power of attorney, health power of attorney, living will and a holographic will form.

Stop wishing, and do something NOW!  Take the steps to help yourself have a more secure future.

Saturday, February 04, 2012

Want Advice From Those in the Last 1/3 of Their Lives?

By:  Susan M Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho 83702

Cornell University (my alma mater) created a Legacy Project to find out from those in the last third of their lives, what life experiences, both positive and negative, have taught them about living effectively.  There is a new book called "30 Lessons for Living", Hudson Street Press, by Dr. Karl Pillemer which gathers advice from more than 1,000 elders.¹

Here are some highlights:

1.  Marriage:  "A satisfying marriage that lasts a lifetime is more likely to result when partners are fundamentally similar and share the same basic values and goals."

2.  Careers:  Be involved in work that you absolutely love and look forward to doing every day.

3.  Parenting:  Spend more time with your kids.  Share in their interests and activities.

4.  Aging:  "Embrace it.  Don't fight it."  Most of the 1,000 people found old age had more opportunity than they thought.  If you are worrying about dying, then plan for it.  "Get things organized, let others know your wishes, tidy up to minimize the burden on your heirs."

5.  Regrets:  Take advantage of opportunities.  Say "yes" more.  Fill out your Bucket List and start checking off items once they are done.

6.  Happiness:  Happiness is a choice, not what life deals you.

"Even if their lives were nine decades long, the elders saw life as too short to waste on pessimism, boredom and disillusionment."

If you want to share your own wisdom and need help in getting started, on the web go to "New York Times."  Type in "Questions for Your Own Circle of Experts."  I bet your family and friends would be delighted to hear from you.

__________________________

¹"Advice From Life's Graying Edge on Finishing with No Regrets" by Jane E. Brody, The New York Times, January 10, 2012, page D7.

Friday, January 20, 2012

Want to Protect Your Children’s Inheritance?

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

         Margaret Barkley, a retired first grade teacher, has been married for 45 years to Al, a machinist.  They lived in town and have one son, Lee, also a machinist who is married to Sally.  Lee and Sally have three children, Joe, Pete and Victoria. 

         Margaret and Al have been frugal all their lives and made a habit of putting money aside every paycheck.  Now they are in their seventies and plan to leave everything they have to their son Lee, when they both die.  They have not told Lee, but they never liked his wife.  The Barkleys want to make certain that Sally does not end up with Lee’s inheritance

         Margaret and Al have another worry--their grandson, Pete.  Pete is 17, spends all his free time fishing in the Boise River and rather than study, he is with his girlfriend.  His grades are so bad that he may not graduate from high school.  His grandparents are concerned that unless Pete changes his ways, he will not be able to support himself.

         What to do?  Margaret and Al talked to their estate-planning attorney and shared their concerns about Lee, Sally and the grandchildren.  They were honest in sharing their worries.  For certain they did not want to give everything to Lee, and have it go to Sally when he dies because, if she remarried, Sally’s second husband would end up with everything.   They want all their assets to pass to Lee and somehow be protected from Sally inheriting the balance.  In addition, they want to help and protect their grandchildren.  Their attorney suggests one planning method to accomplish their goals is to create an “Inheritance Trust.”

         How does an “Inheritance Trust” work?  Margaret and Al create the Inheritance Trust now, and they name the Trust as the recipient of their estate when they both die.  Lee manages the Trust and also has the use of the estate assets deposited in the Trust.  A big difference is when Lee dies the assets in the Trust go to his children, not his spouse.  In addition, the funds in the trust can be used to help provide an education for the grandchildren.  Pete can get the help he needs to be self-supporting, but he will not be able to freely waste the money in the Trust. 

         There are a number of additional benefits to leaving assets in Trust to Lee.  These include: (1) the assets will be protected from his spouse in the event of divorce, (2) the assets will be protected from Lee’s creditors in the event of a financial hardship, (3) on Lee’s death, the unused assets will go to his blood relatives (grandchildren) instead of in laws, and  (4) these assets are protected from lawsuits.   If the grandchildren are under age 30, the funds are held in Trust for them until 30, but the funds can be available to the grandchildren to help them get started in life.

         If you want to protect your children’s inheritances from divorce, lawsuits, creditors and bankruptcy, call and set up an appointment with me to see how this planning technique fits for your estate plan.

Friday, January 13, 2012

Wolf Tracks at My Farm

by Susan M. Graham, Attorney at Law, Senior Edge Legal, Boise, Idaho

There were wolf tracks in the snow by my farm house last week.  I have never seen wolf tracks before.  They are bigger than a big dog print.

I was excited, and disappointed I missed seeing the wolf.  At the same time, I was a little frightened and wondered what would have happened if my dogs were outside when the wolf came by.  I would put my money on the wolf.

I really did not need to worry.  I have done everything I can to make my farm safe.  The buildings are secure.  I carry a phone.  I have a loaded shot gun.  There is little cover for hiding.

I was glad to see the prints, but also glad to be reminded of the need to review whether I am prepared to actually see a wolf at my farm.

How does this relate to estate planning?  One of the primary purposes for setting up an estate plan is to make it easy to handle the unexpected bad days of sudden serious illness or death.  Usually there is no advance notice and the tragic event just happens.  There is less need to worry if a plan is in place to identify who will be making decisions for health and finances, and that plan gives sufficient legal rights to help out.  Are you prepared if the wolf comes into your world?

If so, great.  If not, take steps now so you don't have to worry.

Friday, November 04, 2011

How Do You Talk To Your Elderly Parents About Their Money? [And Not Sound Greedy?]

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

Are you thinking about your elderly parents' finances and beginning to worry what you should do to help them in an emergency?

Don't expect your parents to be thrilled at the idea of discussing their finances if they have not been open about this in the past.

If you are lucky, they may bring up the topic.  When my Cousin Kathie was age 90, she called me one day to say she was going to be kicked out of her retirement home because she was two months behind in her rent.  She asked me to call and check.  I looked into it and she was indeed behind in the rent.  Right then and there she asked that I take over her finances, which I did, and I continued to handle her finances until she died at the age of 99.

If you are not so lucky to be asked for your help, you need to start the discussion.  Be careful that you don't come on too strong, because it may be perceived that you want to take their money.  One way to start is to express your concern about your role in an emergency if they should die or worse, they come unable to handle their affairs due to old age, dementia or illness.  If they share the information about what they own, the approximate value, and where their records are located, that would be a huge first step.  If they don't, be patient.  You have opened the door a crack and they may call you later to share this information.

An alternative approach is to suggest that you go to a meeting with them at their attorney's office to get independent, unbiased information on alternative ways to handle the health and financial emergencies worrying you.

Of course, if they say no, you are stuck.  You did your best.

If everything goes wrong that could go wrong and there is no plan in place when your parents become mentally or physically unable to handle their affairs, you have the option to go to Court to be appointed as their conservator [the one who handles their finances] and guardian [the one who makes the health and housing decisions].

What can you do?  Start the discussion so everyone is prepared for the bad days in life, death, or the possibility of becoming incompetent.  Good Luck!

Friday, October 28, 2011

Too Many Fall Leaves

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho 

Can you keep up with all the things you need to be doing?  No?  Well, NO is my answer!

The leaves are falling, I rake them every day, and in the morning they are back again.  Pooh - I didn't plan to spend the extra half hour each evening doing this chore,so something else had to slide.

How can you get a grip rather than chasing what calls for your attention this moment?

Take some time, even if just 10 minutes, and decide what is important in the big picture "to do" today, this month, this year to get you where you want to go.  Make a list.

In 2008, Congress took a look at the following statistics:

• It is estimated that more than 120 million Americans lack an up-to-date estate plan.
• Two thirds of Americans over age 65 believe they lack the necessary knowledge to plan adequately for retirement.
• Nearly one-half of all Americans are unfamiliar with basic retirement tools, such as a 401(k) plan.

The result was passage of HR 1499 declaring the third full week of October as National Estate Planning Awareness Week.

Now I am telling you this a week late, but even so, the information is a great reminder to focus on the big picture of the important steps to take to make certain you have the best and most secure future that preserves your independence, protects your family and protects your assets.

Check your own estate plan to be certain the documents you have are up to date with the current law and your changing circumstances. That way you will accomplish your personal goals.

Happy Halloween and pretty Fall to you.

Saturday, October 22, 2011

Would You Want Your Enemy As Your Guardian?

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho 

This happened for the heiress of L'Oreal, a French cosmetics company.  Liliane Bettencourt is 89.  She and her daughter, Francoise Bettencourt-Meyers, have been suing one another for years.  A French Court found the mother to have failing mental health and to be showing signs of dementia.  The Court then appointed the daughter as her mother's guardian.  Now, the daughter can control when her mother can travel and how her money will be managed.¹

Could this happen to you?

A simple way to avoid this is to sign a financial power of attorney and health power of attorney stating who you want to make financial and health decisions for you if you are not able to care for yourself.  That will be a great first step.

If you have not signed these documents, go to our website (www.graham-lawoffice.com) and download the forms for free.  The forms come with instructions to make them easy to fill out.

^{______________________}

¹Heiress Loses L'Oreal Family Fight, The Wall Street Journal, page B8, October 18, 2011.

Friday, October 07, 2011

What is an Incentive Trust?

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

An inheritance of cash can be good or bad.  The "good" part is easy.  Someone receives the inheritance and uses the funds wisely to enhance their lives.  The "bad" part is often swept under the rug.

If someone inherits money and that person is young emerging into adulthood, likes to spend money freely with no sense of tomorrow, has an addiction problem or has trouble holding down a job, his or her inheritance is likely to evaporate.

An Incentive Trust may be the solution to help a child who is a reckless spender.  How does such a Trust work?  The parents need to sit down with their attorney and discuss the needs and abilities [and shortcomings] of their child.  Between them they can craft a Trust that will provide for the child's future in a constructive way.  Frequently a professional Corporate Trustee (such as a Bank Trust Department) will be the Trustee to co-Trustee with the child.  You don't want to make a family member a Trustee because that will poison the relationship between that person and the child.  Incentive Trusts frequently include a method to help educate the child to manage money responsibly so that he or she can develop the skills to take over their own finances in the future.  These trusts can work if they include objective standards and are transparent so the Trustee knows what the beneficiary is doing and the beneficiary knows the standards used for measurement.

Your other choice is to give the money outright with a "wish and a prayer" that it will all work out, knowing in your hear that result is unlikely.

Friday, September 30, 2011

You Have Been Nominated as Personal Representative! Lucky you?

By Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho

You may be nominated by a family member or friend to handle their affairs when they die.  It is certainly a compliment and an honor, but also a huge job.  You may want to think twice before you accept, or consider hiring professionals to assist you.

There is a long list of steps that need to be taken and the time period to complete the process is easily a year or more.

Some steps are easy, such as changing the locks on the house and making sure the mail is redirected to your address.

Many steps can be more difficult, such as preparing a proper accounting, investing the assets appropriately during the period of administration so you don't lose money, settling family disputes and arranging for care for a dependent family member.  It is often difficult to get through this process and have family relationships remain on a good footing.

An important first step for the person signing a Last Will and Testament or Trust is to talk to the person they are appointing to handle their affairs to see if they are willing to take the job.  That too is a good time to bring up any special concerns that either person may have about the job and the process, which should help when the time comes.

Saturday, September 10, 2011

10 Steps to Take After the Death of a Loved One

By:  Susan M. Graham, Certified Elder Law Attorney

This checklist includes important steps to help manage the estate of someone who has died.

1.  Follow the specific funeral and burial instructions left by the decedent.  Contact your local funeral home or mortuary for assistance in making or following through with any prearranged funeral plan.

2.  Arrange for the care of any persons who are dependent on the decedent, such as minor or disabled children, an elderly spouse or the decedent's elderly relatives.

3.  Arrange for the care of any pets of the decedent.

4.  Secure the residence.  You may want to have some trusted friend stay at the house.  Change the locks.

5.  Arrange to receive several copies of the death certificate - ten is not too many in most cases.

6.  Keep track of your time.  Get receipts for all out-of-pocket expenses you pay related to the estate administration so you can be reimbursed.

7.  Notify the decedent's friends, family members and work associates of the death.

8.  Call the attorney who set up the estate plan to make an appointment and learn how to administer the decedent's estate.  The attorney can tell you who is legally responsible under a Last Will and Testament, Trust, or even if no documents were prepared.  Locate the original Last Will and Testament or Trust to take to the attorney if these doucments exist.  It is important to talk with an attorney prior to making any decisions relating to the administration of the estate.  Sometimes the wrong decision, taken hastily, can be costly.

9.  Do not distribute any personal property items such as rings, guns, china and other household things until you speak to an attorney.  If you distribute such items and you did not have the legal authority to do so, you may be personally liable to others.

10.  Update your own estate plan to be certain you and your family are protected.  It is important that a surviving spouse make changes now that their spouse has died.  In most situations, it will be necessary to prepare a new financial power of attorney, new health power of attorney, and new Last Will and Testament or Trust to reflect any changes to your plan.

Friday, September 02, 2011

13 Steps To Maintain Your Independence, Protect Your Assets and Protect Your Family

By:  Susan M. Graham, Certified Elder Law Attorney

Do you want to protect your independence, assets and your family?  There are many steps you can take to make it easier for you and your loved ones when the bad days happen:  death or becoming unable to handle your affairs due to illness.  I encourage you to consult with an attorney to discuss many of the following topics to see which will best fit your needs.

1.  Health Power of Attorney.  Signing this document permits the people you rely upon to talk with your doctor when you can't.

2.  Living Will.  If one doctor decides death is near, you have 3 choices for your end of life medical care:

i.  use all the fancy machines to keep you going.

ii. have nutrition and hydration with tubes, or

iii. "let me go."

If you fail to sign a "Living Will", the legal and medical rules require that you be on "tubes" at a minimum.

3.  Last Will and Testament.  This document declares how you want your property distributed when you die, and if you have minor children, who will be the guardian.  After a death, the Will is filed with the Probate Court to start the administration of the decedent's estate.

4.  Revocable Trust.  This is another way to arrange for the management of your assets should you be unable to do so due to illness or when you die.  This document usually allows you to avoid probate or going to court.

5.  Financial Power of Attorney.  This document identifies those people whom you selected to handle some of your finances if you are unable to do so because of illness.

6.  Funeral Arrangements.  Pre-planning your funeral is a gift to your family.  Making your arrangements will assure that you will have what you want, and save your family from the worry and burden of such decisions at an impossible time.

7.  Pet Care.  You have the opportunity to write down who you want to be the caretaker for your pet when you are gone, recovering from an illness, or in a rest home.

8.  Beneficiary Designation.  Make certain that the beneficiary designation on all life insurance, annuities and retirement accounts, such as IRAs and a 401(k), match your current estate plan.

9.  Professional Advisors.  List those professionals who know about your affairs.  Include your attorney, accountant, insurance persons, doctors, dentist and others you rely on.

10.  Important Records.  Where do you keep your papers?  Who knows where to look?  Do they have a key, or can they get into your safe deposit box?

11.  Family Information.  Do you have a list of contact information for the family and friends who are important to you?  This information is helpful in an emergency.

12.  The Key to Your House.  Who has one?  Do they know whom to contact in an emergency?

13.  Driving Instructions.  If the time comes that it is no longer safe for you to drive, you can arrange ahead of time how to give up your car and provide for alternate transportation.

We can help!  If you want to review your personal situation, call 208-344-0375 and make an appointment with SUSAN M. GRAHAM, Certified Elder Law Attorney.

Saturday, July 30, 2011

Some Day You May Be Miss [or Mr.] Daisy. Are you ready?

By:  Susan M. Graham, Certified Elder Law Attorney, The Graham Law Office, P.A., Boise, Idaho 83702

Driving in this country is important.  You can elect when and where you are going out.  Losing driving privileges can be distressing as it represents a milestone in life that a person is no longer physically able to drive and they lose some of their independence.

But, there may come a time for each of us when it is no longer safe to drive, and we may not notice (or don't want to notice) when that day arrives.

I don't want to be like my client who drove down the street, scrapped 15 parked cars and clipped off every car's mirror.  He denied it was his fault.  "They all parked wrong."

What steps can we take to protect us from hurting ourselves or hitting some innocent person?

Plan ahead!

Authorize a trusted agent, perhaps your health care agent, to help make the decision that you are no longer capable of driving. Here is some suggested language to add to your health power of attorney.

My agent is authorized to tell my doctor that in my agent's opinion, I am a danger to others when I drive.  I realize that this might result in the loss of my driving license and driving privileges.  I also realize that I may not agree with my agent when my agent comes to this conclusion.  However, I do not want to endanger myself and I do not want to endanger others.  Therefore, I put this decision in my agent's hands, as I have the utmost trust and confidence in my agent.¹

____________________

¹Driving Miss Daisy, by Ruth A. Phelps, Trusts & Estates, July, 2011, pages 18-20^.

Saturday, July 16, 2011

It Takes Work to Die

The Wall Street Journal listed 25 documents you need before you die.¹

Their subheading was "Design your death dossier soon - or you could be setting up your heirs for frustration and financial pain."

They are right.  If you don't take the time to create a plan for your future and organize your documents, you are leaving a mess for your family.  It may be impossible for the people you rely upon to help you.  The distribution of your estate may be different than what you want because you may have failed to coordinate beneficiary designations on retirement accounts and life insurance with your total plan.

So what are those 25 documents that you should organize and put in one location so they are easy to find?  I will list them below and add a few items they forgot.

Personal Information:

• Birth Certificate
• Marriage License
• Divorce papers
• Military Discharge Papers
• Death Certificates for other immediate family members (spouse, parents, children)

Health Care:

• Personal and Family Medical History
• Durable Health Care Power of Attorney
• Living Will
• Physician's Order for Scope of Treatment (POST)
• List of Doctors and Prescription Drugs

Proof of Ownership:

• Housing, land and cemetery deeds
• Mortgage Papers
• Proof of loans made and debts owed
• Vehicle titles
• Stock certificates, savings bonds and brokerage accounts
• Partnership and corporate operating agreements
• Tax returns

Life Insurance/Retirement Accounts:

• Life insurance policies
• Individual Retirement Accounts
• 401(k) accounts
• Pension documents
• Annuity contracts

Bank Accounts:

• List of bank accounts
• List of all user names and passwords
• List of safe deposit boxes and keys

Estate Planning Documents:

• Will
• Financial Power of Attorney
• Trust
• Funeral Plan
• Pet Care Instructions
• List of who receives your "stuff", e.g., ring and gun

So get a box and start putting all these papers in that box.  If you put in copies, mark on the copy to indicate where the originals are located.

Does this seem too much to do?  Well, think about the people you care for and think about covering your back.  If you want your life to go as well as possible, even during the bad days, you have to do your part.

So take 30-60 minutes and gather up these documents.  Good for you if you do what I suggest!

P.S.  The total documents is 32 - not 25.

_________________

¹"The 25 Documents You Need Before You Die.  The Wall Street Journal, July 2, 2011, page B7.

http://online.wsj.com/article/S810001424052702303627104576410234039258092.html

Friday, July 01, 2011

It's Your Funeral (Part Two)

Last week I wrote about two ways to pay for your funeral.

There is a second part of funeral planning to consider.  We believe it is important to leave a legacy.  Part of that legacy is to be remembered long after we are gone.

We have a new FREE service that we offer to our clients to help create this lasting legacy.  It is a membership program called "Legacy Safeguard," offered through our office in cooperation with National Guardian Life Insurance Company (NGL).

Some of the features of Legacy Safeguard are:

• Legacy Planning Guide^tm   Software - A one-of-a-kind legacy planning software that will help you share with your loved ones your historical information, the lessons you've learned, and the family values you hope they keep.

• End of Life Planning, Guidance and Assistance - At the time of need, because of a death, Legacy Safeguard advisors are on call to help your family locate several funeral homes and cemeteries in your area, help create a dignified memorial service that celebrates your life, and help your family make informed decisions about the use of the funds that you have set aside to pay for your final arrangements.

• Legacy Safeguard advisors can inform your family about bereavement travel options and discounts available to them.  They also can recommend grief-counseling programs to help your family through the loss of a loved one.

• Celebrating Life Events - As a member, you receive an exclusive professionally produced Family Legacy DVD that combines your photos with your favorite music.  In addition, members will enjoy a 20% discount on flowers, gift baskets and other items from FTD to celebrate life for any occasion.

These are some of the benefits that make it easy to create a permanent legacy for your family and future generations.  What an extraordinary gift to those you love.

If you are a client of The Graham Law Office and want to become a member of Legacy Safeguard, just call 344-0375 and we will get you started.

Friday, May 20, 2011

My Irrigation Well is Fried - Why Is Life Difficult When I Did Everything Right?

I had my sprinklers turned on this spring.  That was the easy part.  One evening I was at my kitchen sink, washing dishes, listening to the radio and noticed my back yard had turned into a lake.  A hole the size of a basketball was gushing water from a sprinkler pipe.  After weeks of having my back yard dug up and pipes replaced by the sprinkler people, they told me it was not the sprinkler system that does not work.  It is the pump for my well.

Let me tell you the obvious.  I know nothing about water systems and do not really want to know.  I just want someone to fix it (and, of course, yesterday).

So, I called the well man.  He came and told me there was a small part that was frozen last winter.  He replaced it and everything now works.  I've had the pump for 10 years and no one ever told me I needed to do something special to keep it warm in the winter.  I had the part fixed and now I am ready for a hot summer and a green yard filled with flowers and vegetables.  That part I am happy about.  The "fix-it" part made me grumpy for a few moments.

How does this apply to you?

Well, when setting up an estate plan, you do everything you can think of at that time to have the best plan in place to help now, and most importantly during the bad days (should you be unable to handle your affairs or upon death).  The plans we set up for our clients focus on protecting their independence, assets and families.

Then some time passes, and that original plan does not work as well as it did originally.  Just like my pump, some parts need to be fixed and it is not your fault.  The law changes, your health changes, your relationship with people changes and your money changes.  Usually one of these four things changes every 3 to 4 years.

What should you do?  I suggest you pull out your planning documents and review them.  Do they still reflect how you want your affairs handled?  Are all your assets titled properly and do you have the proper beneficiaries listed on your life insurance, retirement benefits and annuities?

If not, I encourage you to set up a review with your estate planning professional.  Do it now!  Or you can wait, have a mess that is harder and more expensive to fix, and only find out about it when you really need the plan to work (like the lake in my back yard).

Friday, April 01, 2011

It's Time for Spring Cleaning

Friday, January 28, 2011

How Does the New Tax Law Impact You and Your Estate Plan?

Monday, January 24, 2011

Is Elder Law Just Alzheimer's, Medicaid and Veterans Administration (VA) Benefit Planning? NO!

     There is a difference between the solutions offered with traditional estate planning and the solutions available using Elder Law techniques.

     Traditional Estate Planning clients are motivated to minimize or eliminate death taxes, a court probate of their affairs after death and decide who will receive their assets.

     As an Elder Law attorney, I address the concerns of a client as they age as well as when they die.  The people we help are also worried about what to do if they or their spouse has a long-term illness.  Just this week I met with Betty who placed Frank, her husband, in a nursing home that is costing $10,000 per month.  She was panicked about what to do because her husband has Alzheimer’s disease and will never be able to return home.

     Betty did not want a traditional estate planning solution.  She was desperate to know . . . 

•  How can she pay for her husband’s care and not end up in the poor house herself?

•  Will she lose her home?

•  How can she have enough income to live on?

•  Where can she go for help?

     The answer to the last question is easy.  Betty came to see an elder law attorney who has the answers to these questions.  Our goal is to help Betty and our other clients protect their income and assets, obtain quality care, and maintain their independence.

     If a traditional estate plan only addresses a part of your concerns, please call my office so we can talk about how we may be able to help you.

P.S.  If you have a gun, have you written down the serial number and other identifying information?  My neighbors called me this week telling me my farmhouse was broken into and a shotgun was among the things stolen.  The sheriff asked if I had the serial number because then it would be easy to trace if it was pawned.   I had a written description, but no number in my records.  Pooh!  I want you to benefit from my mistake so if you have guns, make sure you have the serial numbers just in case.

Thursday, December 30, 2010

It's Time To Get A Grip

Friday, December 03, 2010

Lame Duck Congress-Down to the Wire on Estate Taxes

Friday, October 01, 2010

How to get a "Stepped-Up" Capital Gains Basis for 2010 Estates

Friday, September 10, 2010

WHEN DO YOU NEED A CONSERVATOR OR A GUARDIAN?

      The information provided in this article is general information and not intended as legal advice.  

Friday, June 25, 2010

The Conveyor Belt of Aging - As People Age They Usually Fall Apart

 The issues become frightening when considering this progression.  Start planning NOW.  

¹ Public Policy Institute, Assisted Living in the United States Fact Sheet, AARP, FS62R

Friday, June 04, 2010

Planning With A "Last Will And Testament"-What Does That Mean?

Friday, May 21, 2010

Now You Have A Vision, How Will You Get There? What Is Your Plan?

    At The Graham Law Office, we help retired people create security in their lives by protecting their assets and independence from excess taxes, health tragedies and the interferences of strangers, even if they are embarrassed to admit their retirement fears.  Call for a FREE appointment with attorney, Susan Graham, to help create your security.  Call before May 28, 2010 and we will send you a FREE report entitled “16 OF THE MOST COMMON AND COSTLY ESTATE PLANNING MISTAKES, AND HOW TO AVOID THEM.”

Friday, May 14, 2010

Need To Change An Estate Plan Heavily Invested in BP? One Easy Way=Virtual Representation

     We help retired people create security in their lives by protecting their assets and independence from excess taxes, health emergencies and the interferences of strangers, even if they are embarrassed to admit their retirement fears.  Call for a FREE appointment with attorney, Susan Graham, to help create your security.  Call within 7 days and we will send you FREE information on "Idaho-Enhanced Health Power and Living Will."

Friday, April 30, 2010

How To Create Your Own Estate Plan

I will be providing estate-planning chapters, using this blog to help you with your estate.  

#1.  Getting started with planning your estate.

Answer these two questions.  Are you going to die some day?  What plans have you made in anticipation of that event?  If your first answer is YES and your second answer is NONE or NOT MUCH, you have lots of company.  Studies show that well over 50% of the people in this country have no plan to deal with death or serious illness before they die.

How can you get started?  Planning is a three step-process.  

Step One: assess your current situation and create a powerful vision (goals) of where you want to go, now, while life is good, and  also when events occur such as bad days, death, or the need for care as you age.  

Step Two:  Come up with a plan or strategy to help you accomplish the goals you defined in Step One.  

Step Three:  Do something!  Follow up and implement your plan, don’t just talk about it.  Then continue to monitor your plan to keep it up to date so you are fully covered when the bad days occur, which means you die or need care.

The first part of Step One is easy – assess your current situation: people, finances and documents.  Start by sitting sit down at the kitchen table with a pad of paper and answer the following questions.

People:  There are two groups of people in your life that matter?  (1) Who can you trust to help when you need it and (2) who do you want to receive your assets when you die?  

Group one are the people you can rely upon to help and you can identify the people in this group by answering the following questions:

• Who will help you in an emergency?  
• Who will come to your home at 2 a.m. if you fall?  Who will care for you if you are sick for ten days?  
• Who do you trust to pay your bills and help with finances if you are unable to write checks for a month?  
• Who do you want to talk to the doctor and other medical people on your behalf if you are unable to communicate?  Do they know what type of treatment you would want?  
• Who can manage your affairs the way you want when you die?
• Who will take care of your children or other dependents if you can’t?
• Who will care for your pets?

Group two are the people you want to receive your assets when you die.  This list can be narrow or broad.  Do you want to limit the people who share your wealth to just family, or will you include friends and charities?  Do you have people with special circumstances such as being too young (age 3) or too old (age 85 and in a nursing home on Medicaid), having drug problems, being on disability or going through bankruptcy?  If so, what steps do you want to take to protect their inheritance?

Finances:  Create an itemized list of your assets and debts and the approximate current value of each.  Include the death benefit of all life insurance with your list of assets.  Also identify all sources of monthly or other regular income and the approximate amount received.

Documents:  Lastly, gather up all your planning papers and review them.  These will include your Last Will and Testament, Powers of Attorney for Finances and Health, Living Will, Deeds, Trusts, Partnership and Limited Liability Company Agreements, Community Property Agreements and other papers that reflect your existing written estate plans.

Once you have addressed the issues of people, finances and documents you have completed the first part of assessing your current situation.  

Next time we will start with chapter #2 of Step One.  Create a powerful vision (goals) of where you want to go, now while life is good, and also in the bad days when death occurs or the need for care as you age.

We help retired people create security in their lives by protecting their assets and independence from excess taxes, health emergencies and the interference of strangers, even if they are embarrassed to admit their retirement fears.  Call for a FREE appointment with attorney, Susan Graham, to help create your security.  Call before May 31, 2010 and we will send you a FREE report entitled “16 Of The Most Common And Costly Estate Planning Mistakes And How To Avoid Them.”