When you think about how you want your assets divided, you might not know just where you want your personal property to go. It can be difficult to determine who gets the sentimental items you've collected over the years. You don't have to make the decisions regarding these items all at once. In fact, you can simply create a memo about who gets what item and modify as you see fit.
]]> You should always contact an attorney about your estate plan. This will ensure that your forms are drafted correctly and can also save a lot of money in terms of taxes. In addition, your attorney will make sure all of the paperwork you need for estate plan is taken care of and there won't be an important piece missing when it is needed.Choosing an executor of your estate is one of the most important decisions you will make. The duties of this position are many and might include selling your home, filing taxes, paying bills or managing long-term care plans. Choose someone you trust to carry out your wishes, but who is also available when needed to do so.
Another common mistake that people often make in estate planning is not updating their beneficiary information. At least once a year, you should review your estate plan and make sure all of your assets are included and that you still wish to leave your beneficiaries the same assets as you did in the prior year.
The worst mistake that people make is to not plan at all, though. The government will take over your estate and that only creates headaches. It's best to contact an estate planning attorney to take care of these needs now so you have peace of mind later.
Source: dailynewstranscript.com, "Common avoidable estate planning mistakes" Suzanne Sayward, May. 15, 2013
]]>Starting a conversation with your parents about their situation is the best approach. One expert recommends using a third party as an example of poor planning. For example, you can talk to them about a friend whose parents weren't prepared and how much trouble he had to go through in order to ensure everything was set up properly. You may be surprised at how ready your parents are to have this conversation.
]]> Make sure someone in your family knows where the paperwork is, even if you don't have a copy. Beneficiary information should be double-checked to ensure the correct copies of wills, estate planning, care planning and other documents are easily accessible should they be needed. It is best to have such documents reviewed each year to ensure everything is correct and this will avoid many problems that can arise when a parent becomes unable to make decisions any longer.There should be one person who has a list of important financial information. This includes account holders and numbers, titles and deeds, and safety deposit boxes. This information may be kept by an attorney, financial advisor or other trusted individual; however, you should know who that person is.
If you find out your parents have not made any plans concerning their estate, it is important for them to do so. Contact an experienced elder law attorney who can explain their options and help ensure their rights are protected.
Source: forbes.com, "Are Your Parents Prepared For Retirement?" Abigail Dalton, May. 07, 2013
]]>One person that spoke to the council was a Massachusetts psychologist who was diagnosed five years ago with Alzheimer's. Because of the diagnosis, he has seen his income drop by 75 percent and filed bankruptcy. The psychologist said people who are in the early or middle stages of dementia need to be on the council, and the council needs to concentrate more on services to meet the long-term needs of these people.
]]> Another person that spoke to the council was an author who is just now developing the first symptoms of Alzheimer's. He said his concerns are that there are few providers for elderly care and not enough money for research. He also expressed his concern that there is no one with dementia sitting on the council and helping develop policies for those who suffer from dementia.A representative for the National Alliance for Caregiving asked that the council focus on the cost of caring for Alzheimer's patients, but also on the needs of Alzheimer's patients and their families.
There were no insurance companies, long-term care providers or other similar agencies represented at the open floor meeting with the council.
If you or someone you love is in need of long-term care planning, contact an attorney who specializes in this area of the law. By retaining the services of an experienced attorney, all of the necessary decisions can be taken care of ahead of time, and you will know what your options are should your current situation change in the future.
Source: lifehealthpro.com, "Alzheimer's caregivers beg for action" Allison Bell, Apr. 29, 2013
]]>A study done a decade ago by the University of Massachusetts estimated that 1.9 million people on Medicare had a bad reaction to a drug and for those in a nursing home, the numbers were even higher. That study also estimated that over one quarter of those reactions should have been prevented.
]]> The Harvard professor says that the increase in agitation, lethargy, confusion and other side effects of delirium could be because there are more people using heartburn and sleep medications available over-the-counter. This is in addition to the six prescription medications that the average 70-year-old takes or the 11 prescriptions that the average 80-year-old takes.Family members of older people, as well as their doctors and other medical personnel, should be aware of possible adverse reactions any time a new medication is introduced. The professor says it is not acceptable to simply think that because someone is over 70-years-old, they will have more or new symptoms.
The Federal Drug Administration has been working on a system to track adverse drug reactions suffered by those people who are covered by private insurance, the Veteran’s Affair system, Medicare and Medicaid. It’s called the Sentinel System, and while progress has been slow, it is close to being ready, according to the chief of Harvard Medical School’s pharmacoepidemiology division.
As loved ones age, it’s important to consider their long-term care planning. This might include Medicaid planning, living wills and estate planning, or options that include nursing homes. An experienced attorney can help make some decisions easier by providing your family with all available options.
Source: bostonglobe.com, "Medication side effects can cause a range of problems" Karen Weintraub, Apr. 29, 2013
]]>According to a recent survey, the costs for assisted living and nursing homes are growing faster than overall inflation. Over the past five years, the increase is more than 4 percent at an annualized rate over five years. A semi-private room in a nursing home cost the average person almost $84,000 in 2013.
]]> The costs of long--term care, such as living in a nursing home or other assisted living facility, are skyrocketing just like all other healthcare--related costs. Long--term care insurance can help with some of those costs, but family members are not as likely to care for their older relatives as they once were. In decades past, family caregivers, who were traditionally women, usually did not work outside the home. That has changed for many households today and many women are no longer able to fulfill the role of full--time caregivers in for their older relatives in their homes.Of the population that is age 65 and older, only one in eight has private long--term care insurance. Even those that do have such a plan in place, the out-of-pocket expenses can be very high. The good news, though, is that for those that choose in--home care, such as by a home health aide, the increase has been minimal -- less than 1 percent at an annualized rate over five years.
When planning for retirement, it's important to understand all options involving your estate, including long--term care planning, living wills and healthcare proxies. An experienced attorney can explain which options will best suit your current situation and what implications your choices will have in Massachusetts.
Source: usnews.com, "http://money.usnews.com/money/blogs/the-best-life/2013/04/09/long-term-care-costs-favor-home-based-treatment?s_cid=related-links:TOP," Philip Moeller, April 9, 2013
]]>This creates issues for many people, not just the individual who falls ill or is diagnosed with a life-altering condition such as Alzheimer's disease. Loved ones are forced to take time from their lives to care for the person who did not make plans for long-term care. If they cannot take the time, they may feel obligated into using their money to pay for such care. Attorneys that specialize in estate planning and other late-in-life issues can help people avoid this sort of obligation to loved ones.
]]> New studies show that women should be making more long-term care plans than men. This is because they are expected to live longer by a number of years. According to data from the Institute for Health Metrics and Evaluation, women have a life expectancy five years longer than men: 81 years as compared to 76 years. In addition to this, reports indicate that women have more years of being unhealthy: 11 years for females, 9.7 for males.Long-term care insurance providers have taken notice of this data and are expected to increase rates for women. This may seem unfair to some; however, there is one way to avoid it. If a couple gets long-term care insurance together, there is a discount. This is because when one spouse becomes ill, the other tends to take care of her or him. Elderly individuals in Middlesex, Massachusetts, should be aware of these changes so that they can adapt accordingly.
Source: A Place For Mom, "Paying for Senior Care: Women vs. Long Term Care Insurance," Sarah Stevenson, March 26, 2013
]]>Underscoring the need for good estate plans -- and tax protections, in particular -- is the following figure: $10.4 trillion. This figure is an estimate of how much money will be passed onto the Baby Boomer generation between 1990 and 2044. With this figure in mind, imagine how much of it could be lost to estate taxes without proper planning. Billions of dollars could be lost to the government, never to be passed down to your children and grandchildren.
]]> But as already mentioned, there are other forces that can put an estate at risk. Interestingly, one in particular can often be solved by a solid estate plan. Consider the following scenario: You have four children and a considerable estate. You have passed away and instead of asking your children what they wanted out of the assets, you have left a will that states that your possessions be divided evenly. This sort of clause leaves an estate vulnerable to all sorts of conflict.Instead of leaving the will open-ended, many experts suggest asking the children what they want or leave directions on how to allow the children to select assets from the estate. By leaving the will questionable, many individuals have left behind estates that have been squabbled over for years. It's interesting because in many cases, it isn't the most valuable item that is being fought over but something that more than one of the children found extremely sentimental. By hiring an attorney to help you with your estate plan, you can avoid turning your legacy into a battlefield.
Source: Wall Street Journal, "If Heirs Are Fighting, Try Mediation," Robbie Shell, March 15, 2013
]]>One issue that seems to be occurring more often now than ever is picking a personal representative. While some people struggle to select a personal representative because of a lack of suitable individuals, others worry that picking someone from out-of-state will be a poor choice. According to experts, this is not a poor choice, it just requires a bit of extra planning.
]]> If your loved ones have moved away and you want to make one of them the executor of the estate, it is possible. The only issue that needs to be addressed is that there be an agent for the courts to have jurisdiction over within the state. This agent will act on behalf of the personal representative and correspond with the selected representative when necessary.If this sounds too complicated, some choose to make their attorneys their personal representatives. This will often translate to an executor with more experience and more expertise than a friend or relative would have, potentially streamlining the process to the benefit of your loved ones named in your will. Another option for executor exists within some banks that possess trust departments. These departments often offer estate settlement services and usually require a fee to be paid.
Regardless of which option you choose, it is smart to discuss your estate plan with a legal professional to make sure you are creating the best protection for your estate.
Source: NWI Times, "ESTATE PLANNING: Who will serve as personal representative?," Christopher W. Yugo, March 9, 2013
]]>Those that have been named in powers of attorney often speak of certain situations that were not predicted and have been hard to surmount during times of anxiety and stress for the loved one that is no longer cognizant. One of these involves a policy that a woman took out some time before she became incapable. She named her daughter as her legal representative in her power of attorney, however.
]]> According to the daughter, the insurance policy was acquired to cover a short-term stay at a rehabilitation facility should her mother ever need it. Now, the woman is in hospice care and struggles to communicate due to her conditions, which include deafness. The insurance policy has been irrelevant for some time, but her mother set up an automatic payment system with the provider. This has been debited for some time and even though she has a reputable power of attorney document, the provider has refused to honor it and cease charges. She has decided that her only option is to change checking accounts, something that will take time away from the amount she could spend with her ailing mother.Many conditions can leave a person incapacitated or incapable of making sound decisions. In order to address this issue, the legal system created the power of attorney. Be sure to seek legal advice when setting up such documents so that minimal obstacles appear for the person you have tasked with making decisions for you in the future.
Source: Fredericksburg, "Be careful when you set up power of attorney," Janet Lynn Taft, March 3, 2013
]]>Without the tax agreement that was reached by the U.S. government, the estate tax exemption rate was expected to drop to $1 million per person. This would have been a sharp decline as the exclusion threshold was more than $5 million per person before this. Any estates valued higher than $1 million would have been subjected to a taxation rate of 55 percent. Many wealthy individuals panicked during this unsure time and made haphazard plans that were crafted at a rate that likely left some holes in their estate coverage.
]]> But the tax agreement solidified the exemption rate from last year, landing at $5.25 million per person in estate and lifetime gifting values. Couples have the ability to combine this exemption, giving them an exclusion of $10.5 million. Anything valued above these rates will be taxed at a rate of 40 percent. Estimates from the Tax Policy Center expect that no more than 4,000 estates will be taxed by the federal government this year, leaving many people with sighs of relief.Just because you do not believe that your estate will be above the exemption rate does not mean you should eliminate planning from your to-do list. There are many questions that need to be addressed by individuals as they age, especially if they want their loved ones to know what to do when it comes time to address the estate. Tax planning can save the estate from the feds, but without proper direction, the wealth that you saved may not be distributed the way that you want it.
Source: Reuters, "New estate tax rules call for new planning tactics," Amy Feldman, Feb. 26, 2013
]]>Experts often suggest considering long term care insurance. With this sort of insurance, individuals pay a monthly cost to cover any sort of ailments that may cause them to need long term care. This sort of coverage can be expensive, but so can long term care in itself. Those that try to get coverage later in life find that the costs are much higher than they would have been had the insurance been sought earlier in life. This makes sense from the provider's point of view because the older a person is, the more likely she or he will need such care.
]]> Many of those without coverage, or any long term care planning at all, have found themselves struggling to cover the costs, often milking their estates dry of assets and wealth to the point that there is little to bequeath. This renders the major reason that people make estate plans rather pointless - what's a will without anything to give to your loved ones?According to estimates from the U.S. government, roughly seven of every ten people will need long term care after the age of 65. This means that more people should begin planning and soon. One of the many issues that people need to overcome is being able to see themselves as potentially incapacitated in the future. This image and the repercussions associated with such a situation have convinced many individuals to begin making appropriate plans.
Source: Capital Gazette, "Long-term care financial impact can be overwhelming," Feb. 21, 2013
]]>Tax brackets have changed for individuals and businesses, affecting decisions on many levels. For those that have a business that is an S Corporation or an LLC, both with pass-through tax statuses, the former advantage may not be as stellar as it once was. Some are reexamining the option of becoming a C Corporation due to the tax benefits that are received by such entities. One of these benefits is a lower taxation rate than the highest personal level of 39.6 percent. C Corporations have a taxation rate of 35 percent, nearly five points lower than the aforementioned rate.
]]> But what about estate taxes? Many business owners have high personal values because of the income they have received due to their thriving businesses. As these people age, they get concerned about their estate tax exemptions and the massive taxation rates that are applicable to those that exceed the exemptions. Currently, tax law gives individuals a personal exemption of $5.25 million and couples $10.5 million. This means that any assets and wealth that exceeds this amount is open to taxation by the federal government.Those that exceed the exemptions may be exposed to a 40-percent tax rate that could leave their estates feeling slightly depleted. But there are many ways to avoid this taxation and those that are worried should attempt to implement such protections.
Source: Forbes, "Trends In Tax Planning From The New Tax Law," Steve Parrish, Feb. 13, 2013
]]>A basic estate plan contains three documents: an advance health care directive, a durable power of attorney and a will. The advance health care directive is a document that dictates who will act as a health care proxy when the individual is deemed incapable of making decisions regarding her or his health. This is an important document because it allows you to give the power of such decisions to someone you trust. In addition, it allows you to decide what sort of measures should be taken if certain situations may arise.
]]> A durable power of attorney is similar to an advance health care directive in that it gives your decision-making powers to someone else. Instead of those decisions revolving around your health, they revolve around your finances. A person listed in such a document is given access to financial accounts and can pay bills on your behalf if you become incapacitated.The will is one of the most well-known documents in an estate plan. Many people have heard of it but surprisingly few have drafted one and made it official. In a will, a person is allowed to dictate the distribution of their assets and who should oversee said distribution; this person is known as the executor of the estate. A will also allows a person to designate a guardian for any children that may be in need of care upon the drafter's death.
Source: Townhall Finance, "Are You Putting Off Estate Planning?," Carrie Schwab Pomerantz, Feb. 7, 2013
]]>Several questions were asked of investors for the survey. The major question inquired about worries that the respondents had in regards to their personal finances. At least five answers were provided, each of them to be ranked according to worry by the investors. According to the results, the top concern was being able to afford healthcare in old age with 26 percent of investors stating that they were highly worried.
]]> Next in line was the financial status of children or grandchildren with 18 percent of responders citing it as a high fear. Third and fourth places went to a major health problem occurring to a member of the family and having someone to provide care in old age with 17 and 16 percent, respectively. In fifth place was the worry of having enough set aside in a retirement fund, eliciting extreme worry from 14 percent of the survey takers.Elderly individuals in Massachusetts are likely concerned about such details themselves, especially since they are already in old age. According to UBS, younger respondents were more likely to be concerned about the costs of healthcare in old age. Some believe this is because they are watching their parents and grandparents struggle with the costs of long term care.
Though respondents seemed less concerned about retirement than other factors, retirement planning is still considered crucial as many use the funds they have collected to pay for the expenses of long term care. This does pose the problem of an unexpected medical need draining the retirement fund though.
Source: On Wall Street, "Investors Worry More About Long-Term Care Than Retirement Planning: UBS," Donald Jay Korn, Jan. 28, 2013
]]>Massachusetts lawmakers and health care providers also have hesitated to carry out incapacitation planning initiatives recommended two years ago by a state-sanctioned panel. Panel experts strongly advised public and patient education about end-of-life choices.
]]> Combined surveys revealed that 67 percent of state residents wish to die at home. Only about one-quarter of those who die experience that kind of death. Less than 20 percent have ever spoken to their doctors about end-of-life medical preferences.The panel urged state-monitored caregiver training throughout health care facilities. Hospice care availability for Medicaid patients was suggested along with online campaigns to promote end-of-life options at hospitals. Gov. Deval Patrick's administration says putting recommendations into effect takes money the state hasn't budgeted.
A Massachusetts General Hospital physician developed a series of videos that help patients make end-of-life health care choices. The doctor conducted a study of late-stage cancer patients. Doctors explained the end-of-life medical interventions to some patients and showed a realistic video depicting how the treatments were administered to others. Patients who viewed the videos were twice as likely to dismiss CPR and breathing machines as care options.
A new state law will require health care facilities across-the-board to provide information on palliative care for "appropriate patients." State officials are grappling with distribution plans and identifying patients who need the care most.
A training program called MOLST has begun in more than 160 health care facilities. Staff members learn how to talk with patients about end-of-life options. Patients who sign MOLST forms give health care workers detailed instructions about treatments they would prefer.
Attorneys assist clients with the legal aspects and incorporation of final medical treatment choices in estate plans.
Source: bostonglobe.com, "End-of-life care rarely discussed," Kay Lazar, Jan. 21, 2013
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