Total Counsel Law Group

Come on, Millennials…Get Cracking on Your Estate Planning!

“Yes, you heard us right. Millennials do need to start thinking about their estate plans now. It has nothing to do with the fact that they have several decades to go before they actually get to the retirement stage.”

According to a caring.com study, the percentage of 18 to 36-year-old Americans with a planned will or trust is just 22%.

This was reported by Financial Buzz in “Millennials: Start thinking about estate planning now!” Compare this finding with the staggering 81% of Americans age 72 and older who have a will or trust, and you can easily determine which generation is planning to make sure that their assets are distributed properly after their lifetime.

If we look at the next age bracket—53 to 71—there’s a significant drop in the number of people who have worked up a formal estate plan.

That number is 60%.

For those in the 37 to 52 age group, the percentage of those who’ve planned drops to only 36%.

Overall, this research shows that Americans really need to get on the stick and do some estate planning. They also need to start doing it earlier in life.

The respondents gave two reasons for failing to do their estate planning. One is they felt they didn’t have enough assets to warrant drafting a will or doing other estate planning. The other was one of the most historically popular: they felt they had time to get around to it.

I’m sure you realize that life is unpredictable. That’s just the reason why you need to start your estate planning ASAP. This eliminates any questions about what happens to your assets and how your dependents will be taken care of.

It’s vitally important, especially for those with a young, dependent family. Create your will as soon as possible—don’t keep putting it off.

For more information, please visit our website at www.totalcounselor.com

Reference: Financial Buzz (March 3, 2017) “Millennials: Start thinking about estate planning now!”

These Are Two of the Biggest Estate Planning Misconceptions

“Although these are just two of the misconceptions regarding wills, they take on special significance because they relate to some of the most important assets owned by a person.”

There are several misconceptions floating around in estate planning, and the Pauls Valley Daily Democrat reviews some misunderstandings about wills in “More on estate planning myths.” Let’s take a look:

“I’m young, so I don’t need a will.” This is not true. One of the most important parts of a will for a young couple, is a provision that designates a guardian—the person(s) who will care for their young children in the event of their mutual death. This is rare,  although it does happen. To make matters worse, what if there’s a family fight for custody of your children? Make this selection so the court isn’t forced to select a guardian for your minor children, if the event arises. A will can give you peace of mind concerning the care of your children.

“I really don’t have much of an estate, so I don’t need a will.” This is also not true. Even if you don’t have young children, a will is essential for the distribution of your personal effects. Surprisingly, even some very large estates have been contested, simply because of disputes over small items.

Typically, large cash amounts can be resolved without difficulty because the details should be provided in the will. However, sentimental family items, like jewelry, family photographs, a valuable baseball card collection and other articles can become the source of conflict and lawsuits. A will can clarify your wishes.

An estate planning attorney will also advise you to use techniques like Payable on Death transfers, TOD deeds or other non-probate transfers that simplify and speed up most asset transfers after death, without probate. Nonetheless, it’s still smart to have a will prepared as a backup, in case you’ve forgotten to provide for the transfer of any asset.

The emotional and sentimental items owned by a person may be of great importance to his or her heirs. Failure to carefully describe your plans for distribution of those items at death, can frequently generate conflicts that are just as bad—and sometimes worse—as the conflict over monetary funds.

For more information, please visit our website at www.totalcounselor.com

Reference: Pauls Valley Daily Democrat (March 1, 2017) “More on estate planning myths”

Tennessee Eyes New Law on Elder Abuse

“A group of lawmakers have teamed up to address what they said is a growing issue across the state – elderly abuse.”

Tennessee state lawmakers recently announced legislation that would address the abuse of elderly or vulnerable adults in the state.

Nashville News Channel 5’s report, “New Legislation Targets Elder Abuse,” explains that Senate Bills 1192, 1230 and 1267 would help protect against physical, mental and financial abuse. They also aim to increase penalties for people who commit such crimes.

The bills would add more criminal penalties for those found guilty of elderly abuse. They would also increase communication between government agencies to raise awareness of scams that target the elderly and ease restrictions on financial confidentiality laws, which permit family members to report problems.

The bills are from the Elderly and Vulnerable Adult Abuse Task Force.

The Tennessee Bankers Association noted that the new laws would also give financial institutions additional authority to act, if an employee thought that a customer was being taken advantage of financially.

“Bankers are often on the front lines. We see our customers being scammed and under current law, there isn’t really anything we can do,” said Tim Amos, Executive Vice President of the Tennessee Bankers Association. "To have a process to allow us to ask you to pause the transaction or wait until tomorrow or until you consult with family, is a pretty big step.”

The National Council on Aging reports that about 10% of Americans who are age 60 and older have experienced some type of elder abuse. The lawmakers in Tennessee found studies over the past 10 years showing that the reported cases of assault and financial exploitation of vulnerable adults has gone up by at least 20%.  It is estimated that as many as one in 23 cases of elder abuse go unreported.

The 2010 census found that the portion of the U.S. population over age 65 is 13.4% of the total. The fastest growing segment includes those who are age 85 and older.

The elder abuse protection bills in Tennessee are expected to be sent to committees in the coming weeks. Lawmakers say they are confident the bills will receive overwhelming bipartisan support.

For more information, please visit our website at www.totalcounselor.com

Reference: Nashville News Channel 5 (February 28, 2017) “New Legislation Targets Elder Abuse”

Rhinestone Cowboy's Wife Cautions to Plan for Alzheimer's

"Kim Campbell didn't initially see that her husband, music legend Glen Campbell, had Alzheimer's."

Kim first saw the signs, but chalked it up to the normal aging process. However, once she suspected that her husband had a serious problem—more than just senior moments—she needed to get a diagnosis. Glen Campbell, now 79, was diagnosed with Alzheimer's in 2011. He performed the final show of his farewell tour in late 2012.

"Getting the diagnosis helped me a lot," Kim Campbell said in a recent telephone interview with the Lexington Herald-Leader, in "Wife of Glen Campbell takes on role of Alzheimer's advocate, speaker." She was candid with the reporter, admitting, "Before the diagnosis, I would get frustrated with him, and irritated and annoyed."

Alzheimer's impacts about half of all people over the age of 85 and kills nearly 100,000 Americans each year. It's named for the German doctor Alois Alzheimer, who discovered the distinctive tangles and plaques of the disease in the brain of a female dementia patient in 1906.

Kim Campbell said the disease needs to be approached from a perspective of examining what the patient still can do versus what he or she can't. What can caregivers do to give them comfort and joy?

Glen Campbell now resides in a memory care unit. Kim Campbell said she tried one last time to have her husband at home — "I missed him so much, and I thought, I've just got to try it one more time. (But) I couldn't bathe him without a fight, or change his clothes. Glen's a big man, and he was not easy."

Kim Campbell said she speaks out about Alzheimer's disease to help families because Alzheimer's "is definitely the most feared disease. You lose control of your life. There are identity issues and autonomy issues."

Campbell also suggests that caregivers give themselves breaks and take care of themselves because the stress for caregivers is enormous.

She also emphasized that estate planning is very important and noted the need for advance health care directives.

For more information on estate planning, please visit our website here

Reference: Lexington (KY) Herald Leader (February 24, 2016) "Wife of Glen Campbell takes on role of Alzheimer's advocate, speaker"

Planning for the Future of Your Farm Business

"A lot of factors go into crafting an estate plan for your farming operation."

The High Plains/Midwest Ag Journal's article, "Planning for the future of your farm operation," includes some helpful tips on creating an estate and succession plan for your operation.

A business plan can be an important tool in estate and succession planning. This is a roadmap for the farm business, and it gives your business direction, helps you make decisions, and can assist in the future.

Make sure that you have the terminology correct. "Estate planning" deals with the disposition of your assets during your lifetime or after your death, while a succession plan is the transitioning of your farm to the next generation or others to ensure the continuation of the business.

If you don't make a plan for the disposal of your assets, the courts in the state where you live will. And that might not be what you want. You need to create an estate and succession plan for your farm so that you are the one who makes those critical decisions about the distribution of your assets and to guide the continuation of the business.

First, find an experienced estate and succession planning attorney. Remember that not all attorneys are well-versed in estate planning, so find a person who specializes in this complex area. Here are some ideas to produce an effective estate and succession plan that is tailored to your operation.

1. Get ready to share. Your estate planning attorney will need to know all of the details of your operation, your investments, and your retirement planning. Be open so that your estate planning attorney can create the best plan to benefit you, your family, and your assets.
2. Get ready to open up and talk. Communication is a critical part of the process—one that's often downplayed or overlooked.
3. Get ready to involve the people who are a part of your operation. Make sure to include everyone who's involved in the operation of the farm business. This includes your spouse, your siblings, and/or heirs. They need to be consulted regarding whether they want to continue the farm business, their interest in particular family items, and any other wishes or concerns.

For more information on financial planning, please visit our website here

Reference: High Plains/Midwest Ag Journal (February 29, 2016) "Planning for the future of your farm operation"

Having a Tough Talk with Your Parents

"It can be very difficult to bring up death, especially with a loved one you don't want to imagine losing."

Opening the door to this difficult discussion may give your parents some peace of mind, as they'll know they were able to help you understand their wishes and spare you the stress of having to make those tough decisions on your own. They'll also take comfort knowing their wishes will be followed.

You will be very appreciative after they pass away for the opportunity you had to ask them the questions that will help you to understand their estate and their wishes.

The Huffington Post's recent article, "What Your Aging Parent Isn't Telling You - I Want to Discuss End-of-Life Issues," offers three tips to help you decide whether it's the right time to discuss end-of-life issues with your parent:

1. Spot the clues. Mentioning that your parent wants to pay for his or her funeral in advance may mean he or she wants to talk about end-of-life issues. Your parent may take great comfort in having you fully aware of his or her plans. So if your parent is casually mentioning these subjects, ask if he or she wants to set a time to go over his or her will, discuss his or her thoughts on medical care and talk about other estate planning matters.
2. Pick a good time to talk. This dialog can be difficult. You should have enough time to cover everything your parent wants to cover. Remember, the most important thing is to have this discussion as soon as you can, as illness and accidents strike without warning. Understanding your parents' wishes while they are around will be easier than relying on paperwork or risking the possibility they may be too ill to convey their wishes.
3. They're your parents' wishes, not yours. Most of us will have our own preferences when it comes to these topics, but it's important to remember that your parents' wishes might be different than yours. If your parents are well enough mentally and physically to make sound decisions, then you'll need to accept and respect those plans.

Talking about funerals and wills can be uncomfortable, but the downside of not having these conversations is much worse.

For more information on estate planning, please visit our website here

Reference: Huffington Post (February 29, 2016) "What Your Aging Parent Isn't Telling You - I Want to Discuss End-of-Life Issues"

Easy Ways to Prepare for a Spouse’s Death

“We don’t like to talk about our own mortality, let alone that of someone we love—but those difficult conversations are essential for your family’s future security.”

You certainly know about the basic estate plan documents, such as a will, durable power of attorney, health care power of attorney, living will, and revocable living trust. While all of these documents are important, there is more one can do to prepare for the emotional consequences of a spouse’s death. The Idaho Statesman article, “How to prepare for loss of a spouse,” suggests some simple steps to take now that can save you some heartache in the future. This is even more crucial when grief and confusion can daze the surviving spouse and lead to financial issues.

Talk with Your Spouse. Keep your spouse up-to-date and share your passwords and other critical information, as well as where to locate them. Speak with your estate planning attorney, so if only one of you handles finances, the other will be prepared. Along the same lines, be open and transparent and be sure to title your accounts properly so you know which assets will be passed directly to your spouse (like your home that lists both of you on the title) and those assets that’ll be transferred via beneficiary designation. You should also review your beneficiary designations for IRA accounts and other retirement plans.

Bank Accounts. You should open bank accounts jointly so that you don’t keep a spouse from accessing funds to pay bills and final expenses. The same thing applies to credit card accounts and utility bills, because the card company or utility typically won’t even talk to you, if you’re not named on the account.

Social Security. It’s a hard to claim these benefits when your spouse has just passed, but making the right choice can make a big difference in the benefits you receive over your lifetime. It’s the same deal with a pension plan with a survivor-benefit option.

Budgets. Both spouses should get to know the household budget and your monthly operating expenses.

Preparing in advance for your spouse can make a big difference in how you take on the stress at that time.

For more information on estate planning, please visit our website here

Reference: Idaho Statesman (November 29, 2016) “How to prepare for loss of a spouse”

Let’s Keep an Easy New Year’s Resolution

“This is the year that you should keep your financial resolutions.”

We all take some time at the end of the year to reflect. As you consider 2016, you can certainly agree that the year had plenty of memorable moments, such as the presidential election, market volatility, as well as a long list of tragic world events.

The US News’ article, “A Simple Resolution for the New Year,” says with 2017 already looking to be a year full of unknowns, you should take a break and think about changes for next year in a New Year's resolution. But this time, you should have a plan to actually stick to.

We all like the idea of making a New Year's resolution…it’s based on our desire to improve. Good intentions go a long way, but we’ve all fought through the jammed gym in January, only to hear crickets while you exercise in March. Instead of biting off more than you can chew—so to speak—find one thing and make that your focus for all of 2017.

While a recent survey found that 40% of respondents put exercise and diet at the top of their resolution lists for 2017, right behind at 37%, was getting a better handle on money and saving more. Regardless of your age, here are simple and obtainable financial resolutions to think about for every generation.

Millennials: Try living on a cash basis for one month. This can be a real eye-opening experience and make you more aware of new debt. In addition, you can see the true cost of living expenses, which can help you to use better budgeting habits.

Generation X: Protect your family and yourself. Many of these folks are now parents and are also focusing on careers. They’re reaching their maximum earning potential. A great resolution for Gen Xers is to purchase life insurance and/or disability insurance, in the event something were to happen to you or your spouse. You should also be sure that your 401(k) is being maxed out to leverage the full employer match. Look into developing a financial plan and examine tax planning to maximize savings.

Baby Boomers: Review your estate plans. Make sure that your estate plan is up-to-date and, at the same time, review all beneficiaries on life insurance policies, IRAs and other plans.

You should also plan for many years ahead, since Americans are living longer. It means a longer retirement for boomers, maybe 20 years or more. Be sure your budget is on track and that investments are keeping pace with cost of living increases.

You can certainly think of numerous other potential financial resolutions that can be made for the New Year. But whatever generational group you’re in, a simple resolution to save even a small amount can make a big difference.

For more information on estate planning, please visit our website here

Reference: US News (December 20, 2016) “A Simple Resolution for the New Year”

Remember These Remarriage Reminders

“Worried about estate taxes affecting your clients? If they've been married more than once, then forget the taxman.”

The unforeseen legal consequences incurred by a second or even third marriage can snarl careful estate planning and leave heirs disenfranchised and bitter, warns On Wall Street in recent article entitled “Estate planning mishaps: How even the family bible is at stake.”

There are some unforeseen ramifications of remarriage. Question come up like, Who gets the personal belongings of a deceased parent? How do you prove title to personal property?

There’s no title to a family heirloom like a grandpa's pipe collection. A parent can say that specific items should go to a particular child, but its proving that they actually belonged to the parent rather than a new spouse is what’s difficult.

Situations like that prompt the rule of thumb: When a parent dies, first change the locks.

The death of a parent and the new spouse may not clear up issues for potential heirs. For example, the husband's death is followed three days later by the death of his new wife. Her children by a previous marriage may say all the property is there’s because the “surviving” wife inherited the property.

Folks should think about prenuptial agreements, which can be particularly useful for those with existing children and remarrying later in life. It’s not just for Brangelina. And if you are divorced and get remarried, verify the beneficiary listed on the accounts. Otherwise, the former spouse could end up inheriting the assets!

Be aware of how state laws can impact inheritances. There are some states that allow the surviving spouse to continue living in their deceased spouse's home. If the deceased had children by a prior marriage, they could be cooling their heels for some time before they receive their inheritance. This can create a dicey situation when most of the deceased client's wealth is tied up in the home.

Likewise, when folks move from one state to another, especially when it’s a second or third marriage, they should talk with a qualified estate planning attorney to understand what rights that spouse has attained because of the move. There could be surprises. For example, in Oklahoma the surviving spouse has a right to the family bible.

For more information on Taxes and Estate Tax please visit our website here

Reference: On Wall Street (Sept. 14, 2016) “Estate planning mishaps: How even the family bible is at stake”

Things to Think About When You Move to a Different State

“Whether your company has decided to move its headquarters or operations to a new state or asked you to move to a different office location, you likely have a myriad of questions running through your mind.”

There will be questions about houses and neighborhoods, schools, the cost of living, churches and synagogues, pediatricians, and more. There are also several financial questions to address as well.

Kiplinger’s recent article, “5 Financial Matters to Consider When Moving to a New State,” provides some tips to help make the financial transition as smooth as possible and avoid the unexpected.

Income Tax. Consider the state’s income tax structure. If you’re moving to a state with a higher income tax rate, if you have some advance notice, you may want to recognize some income before you move. Examples include income from capital gains in your portfolio or exercise of stock options. Some states have recapture rules you’ll need to know. If you’re moving to a state with a higher tax rate, your take-home paycheck may be lower than you anticipated. Do the calculations prior to signing your relocation and cost of living adjustment package. You may want to think about asking for a higher salary to keep up with your projected after-tax living expenses. Also, there are property and sales taxes which are usually higher in states that don't have an income tax.

Estate Plan. Update your will, as estate tax and probate laws will vary from state to state. If you own out-of-state property, like your former residence, that you want to keep or rent out, speak with an estate planning attorney about creating a revocable trust or a limited liability company to avoid taxes. Likewise, check your financial and healthcare powers of attorney—these are based on state statutes that are different in each state.

Cost of Living. A big factor in a relocation package from the company is quantifying how much more housing and recreation may cost. If you have children, be sure to look at the school system and whether you want your children enrolled in private school. Tuition can be a big budget item for any family, and if you've never had to pay it in the past, you’ll need to plan ahead. Education expenses may influence where you live in the new city or town, as well as the amount of house you buy and the mortgage payment. These cash flow issues need to be in sync with your lifestyle expenses to avoid throwing a wrench in your long-term financial plans.

Investments. Your investment strategy may also need a review. Some states exempt a portion of your capital gains from income tax, and dividends aren’t taxed in Nevada (a no income tax state).

Moving to a new state can be an exciting experience, but be sure it’s a sound financial move, too. While you are at it, if your current estate planning attorney is not admitted to practice law in your new state, be sure to ask for a referral to a qualified estate planning attorney in your new state.

For more information on Estate Planning please visit our website here

Reference: Kiplinger (October 2016) “5 Financial Matters to Consider When Moving to a New State”