Estate Planning Blog

Legal Planning can Help Prevent Elder Abuse

In a recent case reported by FOX43, an 86-year-old father fell victim to elder abuse at the hands of his own son. According to the report, the son stole $153,168 from his father. This story is a painful reminder of how even trusted individuals can exploit the vulnerability of our elderly loved ones. Likewise, it reminds us to be vigilant of elder abuse to prevent these heartbreaking situations.

What Is Elder Abuse, and Why Is It a Growing Concern?

Elder abuse is a serious issue that affects many older adults. It includes physical, emotional, and financial harm, and the perpetrators are often trusted individuals. Many elderly people rely on others for their daily needs, making them vulnerable to abuse.

To make matters worse, elder abuse is becoming more common as the elderly population grows. The National Council on Aging (NCOA) states that one in ten Americans aged 60 and older has experienced some form of elder abuse.

How can Legal Planning Protect Elders with POAS?

Legal planning can help protect an elderly person’s wishes and their assets. Elder law attorneys can assist in creating essential documents like wills, trusts, and powers of attorney. These documents guide the management of an elderly person’s assets and who will make decisions on their behalf.

A power of attorney (POA) is especially important. It’s a legal document that allows someone to make decisions for another person. If an elderly individual cannot make decisions for themselves, a POA is vital. A trustworthy person holding power of attorney can prevent financial abuse and protect the elderly person’s needs.

What are the Warning Signs of Elder Abuse?

Recognizing the signs of elder abuse is crucial for prevention. Some common warning signs include:

• Unexplained injuries or bruises
• Sudden changes in financial situation
• Withdrawal from normal activities
• Poor hygiene or living conditions
• Fear or anxiety around certain individuals

What Steps can Be Taken to Prevent Elder Abuse?

• Regular Check-Ins: Regularly check in on your elderly loved ones. Frequent visits or phone calls can help you notice any changes in their behavior or living conditions.
• Educate Yourself: Learn about the signs of elder abuse and stay informed about how to protect your loved ones.
• Legal Safeguards: Work with an elder law attorney to create legal documents that protect the elderly person’s assets and outline their care preferences.

How can Elder Law Help Protect Seniors?

Elder law encompasses various legal issues affecting older adults. These include estate planning, healthcare, and guardianship. An elder law attorney can help create a comprehensive plan to protect the elderly individual and their assets. Some strategies include setting up trusts to manage assets, appointing guardians or conservators, and drafting advance healthcare directives.

Take your first step toward securing a comprehensive estate plan; schedule a consultation today.

Key Takeaways

• Elder Abuse Awareness: Stay alert to warning signs of elder abuse. Sudden financial changes, unexplained injuries, and strange behaviors are potential warning signs.
• Importance of Legal Planning: Elder law can protect your loved ones. Leverage legal tools like powers of attorney and trusts.
• Role of Estate Planning: Estate planning isn’t just for distributing assets after someone dies. Instead, it can protect them during their lifetime.
• Consult an Elder Law Attorney: Aging well can be a challenge. Professional legal advice can make it safer and easier.

References:  FOX43 (Oct. 22, 2018) “Son charged for stealing $153,168 from 86-year-old father, officials talk elder abuse warning signs | fox43.com”

NCOA (National Council on Aging) (Feb. 23, 2021) “Get the Facts on Elder Abuse”

Planning Your Own Funeral Eases the Burden for Your Loved Ones

Planning your own funeral may seem like a morbid task. However, it can significantly reduce the stress and financial burden on your loved ones after you pass away. Choice Mutual’s recent article “How To Plan Your Own Funeral: 10-Step Guide + Checklist” explains that by making decisions about your funeral arrangements in advance, you can ensure that your final wishes are respected and that your family is spared from making difficult decisions during a time of grief.

Why Should You Consider Planning Your Funeral Early?

After a death, family and loved ones are responsible for managing your estate and organizing a funeral while grieving. Planning your funeral early while drafting or as part of your estate plan is a thoughtful and responsible step that alleviates the emotional and financial strain on your loved ones.  If you’ve already created your estate plan, an experienced estate planning attorney can help you detail your funeral planning in a “Last Wishes” document or addendum to your estate planning documents. These documents provide crucial guidance that reflects your personal preferences and eases the decision-making process for loved ones.

What are the First Steps in Pre-Planning Your Funeral?

Choosing a Funeral Home

One of the first decisions in pre-planning is selecting a funeral home. This choice is crucial as it can significantly affect the logistics and cost of your funeral services. Consider the reputation, services offered and pricing of different funeral homes. You can select a funeral home, create a plan and even prepay for it. Be sure to share existing funeral plans or prepayments with your estate lawyer.

Deciding Between Burial and Cremation

Do you prefer a burial or cremation? Each option comes with different considerations, such as the type of ceremony, the handling of remains and the associated costs. If choosing burial, consider the kind of burial—traditional, in a vault, or a natural burial. If cremation is your choice, decide whether you want it done before or after the funeral service and what should happen to your ashes.

How Do You Want to Be Remembered?

Selecting the Type of Funeral or Memorial Service

Your funeral or memorial service can reflect your personality and values. Decide whether you want a traditional funeral, a celebration of life, or a simple memorial service. Each type of service offers different atmospheres and can be tailored to how you wish to be remembered.

Planning the Ceremony Details

Think about the location, the attendees and the flow of the ceremony. Would you prefer a religious, secular, or culturally specific service? Details like flowers, music, and readings should also be considered, as these can make the service personal and meaningful.

How Can You Ease the Funeral Logistics for Your Family?

Creating a Last Wishes Document as Part of Your Estate Plan

Creating a Last Wishes document of your funeral plans and sharing it with your family is essential. This document should detail all your decisions—from the type of service to the specifics of your burial or cremation preferences. It is also wise to discuss these plans with your loved ones to ensure that they understand your wishes and the reasons behind them.

Financial Planning for Funeral Expenses

Consider how you will finance your funeral. Options include savings, life insurance, prepaid burial plans, or relying on your estate. Your estate planning attorney can guide you in choosing the right prepaid funeral plan based on your financial situation.

What are the Benefits of Planning Your Funeral in Advance?

Planning your funeral in advance can significantly ease the emotional and financial burden on your loved ones. By making critical decisions about your funeral arrangements, such as the type of service and financing options, you ensure that your wishes are honored and relieve your family of added stress. Consulting with a qualified estate planning attorney can provide clarity and direction, ensuring that you make informed decisions integrated with your estate plan.

Key Takeaways

• Early Planning: Start funeral arrangements early when drafting your estate plan to reduce future stress for your loved ones.
• Funeral Home Selection: Choose a funeral home carefully, considering services, reputation and pricing to avoid future complications.
• Burial vs. Cremation: Decide whether you prefer burial or cremation, and detail your specific wishes for handling these.
• Planning the Service: Tailor your funeral or memorial service to reflect your personality and values, making the event meaningful for attendees.
• Documenting Last Wishes: Record all funeral plans, include them with your estate plan and share them with your family to ensure that your final wishes are honored.
• Financial Planning: Explore financing options like insurance, savings, or prepaid plans to manage funeral costs effectively and prevent financial strain on your family.

Reference: Choice Mutual (April 2, 2024) “How To Plan Your Own Funeral: 10-Step Guide + Checklist”

Harnessing Technology in Aging Care: Long-Term Care Planning Strategies

Technological advancements increasingly influence the aging care field to enhance efficiency, improve quality of care and adopt value-based care models. This transition towards technology-driven solutions in aging services not only promises improved operational outcomes but also sets the stage for more personalized, efficient care strategies. Based on LeadingAge’s article, “Top 5 Tech Trends in Aging Services for 2024,” our article outlines significant trends in aging care technology for 2024 and how they impact elder law strategies.

What Significant Technology Is Trending in Aging Care?

Automation in Health Care Workforce Management

One of the forefront issues in aging services is workforce management. Integrating technologies such as robotic process automation (RPA) and generative AI (artificial intelligence) is revolutionizing this domain. By automating repetitive tasks, these technologies free up staff to engage in more meaningful work, thereby improving job satisfaction and overall care quality. For instance, initiatives like the digital transformation at United Methodist Communities (UMC) have significantly improved staff engagement and operational efficiency through adopting automation.

Understanding these technological advancements is crucial from an elder law perspective. Elder law attorneys can advise clients on how these technologies might affect seniors’ long-term care options, particularly regarding staffing and quality of care in various settings. As elder care professionals, our team also strives to stay informed about how such technological integrations affect compliance and privacy, protecting clients’ rights and preferences.

How Is Aging Care Technology having an Impact on Long-Term Care Planning?

An elder care lawyer strives to ensure that seniors’ long-term care plans are comprehensive and forward-looking, especially in terms of integrating technology. As care facilities increasingly adopt technological tools to support value-based care, it becomes essential to craft care plans that anticipate the use of these technologies and address the legal implications they may bring. For example, an elder law attorney can help seniors and their families understand how their personal data will be managed in technology-enhanced care settings and create safeguards to protect their personal information.

The Role of Generative AI in Personalizing Elder Care

The advent of generative AI in aging services is set to transform how personalized care is administered. Many care providers are now leveraging AI for tasks ranging from creating personalized patient care plans to automating routine administrative duties. This technological shift suggests a future where AI significantly supports decision-making and presents an opportunity for elder law attorneys to ensure that seniors’ long-term care plans are designed to help so seniors receive care that is not only personalized and efficient but also aligns with their values and legal rights. This includes advising on how technology can enhance the quality of care without compromising the dignity and autonomy of the elderly.

As an elder law office, our team can help clients consider the impact of these technologies in their healthcare directives and long-term care planning. We aim to help clients create long-term care plans that remain relevant and adaptive to technological advancements. As you consider your long-term care plan and how healthcare technological advances might impact your goals, schedule a consultation with our team.

Key Takeaways:

• Consider How to Integrate Technology into Long-Term Care Planning: Clients should be informed about how automation and AI can influence care settings, potentially improving the quality and efficiency of the care they might receive.
• Prepare for AI-Enhanced Care: Understanding and planning for AI-driven care can help clients take full advantage of emerging technologies, ensuring that their care remains top-notch as technology evolves.
• Legal Guidance on Data Protection: Elder law attorneys are crucial in ensuring that seniors’ long-term care plans address the management and security of personal data as care facilities increasingly utilize technology.

Reference: LeadingAge (Jan. 5, 2024) “Top 5 Tech Trends in Aging Services for 2024”

How to Plan for Beneficiaries with Disabilities

When creating an estate plan, it’s important to consider all of the possibilities—including disability, says a recent article, “Beneficiaries with disabilities will impact plans,” from The News-Enterprise. A well-prepared estate plan can protect all heirs.

Disability planning typically includes two types of protections: first, to protect the disabled individual’s inheritance from the loss of government benefits. This includes Medicaid, SSI, food stamps, Section 8 housing and other means-tested assistance programs.

Good planning protects continuity of care. Most disabled individuals who qualify for government benefits live in supportive housing communities and/or are helped by caregivers. Losing access to these support systems could become overwhelming to a disabled person.

If the inherited assets are used in place of these programs because of poor planning, upon their depletion, the disabled individual would have to start the process of applying for government assistance all over again. The possibility of being assigned to the same programs and receiving the exact same support is unlikely. A long wait time for services could also become problematic.

Second, an estate plan that considers a disabled individual must protect them from vulnerabilities and exploitation. Financial scams and outright thefts are not limited to the able-bodied. A disabled person known to have access to an inheritance becomes a target for scammers. The estate plan needs to ensure a responsible and savvy individual serving as the trustee is looking out for their best interests.

Testamentary documents are most helpful in estate planning for people with disabilities. The most common mistakes made are completely disinheriting the beneficiary or putting funds under the control of a caregiver. Disinheritance is common, as most people don’t understand there are ways to prevent the loss of services while keeping inherited assets available for the individual.

Giving funds to a caregiver is almost always a recipe for disaster. The caregiver may not follow the directions or become a victim of scammers, leaving the disabled heir without the benefit of their inheritance.

One answer is a third-party trust. This is created by one person—the grantor—for the benefit of another person—the beneficiary. It is funded with assets that never belonged to the beneficiary, so any funds in the trust aren’t subject to a payback provision to the state when the beneficiary dies. Third-party trusts are an excellent tool for estate planning and can also pass funds along to contingent beneficiaries when the original beneficiary passes.

An experienced estate planning attorney will know the nuances of planning for disabled individuals. Your estate plan deserves to be created by a professional to protect those you love.

Reference: The News-Enterprise (April 27, 2024) “Beneficiaries with disabilities will impact plans”

What Happens When Blended Families Ignore Estate Planning?

The idea of a “Brady Bunch” family, where two adults with children from prior marriages blend their families, is filled with good intentions. With time and patience, a real family can be created if all parties are willing participants. That is until one of the parents dies and the will is revealed, according to the article “The Brady Bunch Breaks Down: Estate Fights Tear Stepfamilies Apart” from The Wall Street Journal.

The typical estate plan for couples and their families is for the surviving spouse to inherit all the assets when the first parent dies. In a blended family, non-biological children are often disinherited. The spouse has no legal obligation to give anything to the biological children, and, making matters worse, the stepsiblings will inherit the deceased stepparent’s assets.

All of the work to blend the families can be undone. The stories are heartbreaking: children changing locks and kicking out their stepmother before the funeral, adult children learning they’ve inherited nothing, while the stepmother receives a lifetime of assets.

Good planning with an experienced estate planning attorney can prevent these and other ugly scenarios.

Establishing a joint trust to give children equal shares after the second parent dies sounds like a good idea. However, if the stepparent moves the assets into a new trust and names their own biological children as the beneficiaries, the first parent’s children are disinherited.

Creating separate trusts can work. However, they need to be iron-clad. Other options are distributing assets while the parent is living or leaving a specific amount (either a dollar amount or a percentage) in the will directly to the named children. Some families keep biological children in the estate plan and fund a separate trust for the spouse and stepchildren.

A prenuptial agreement is a good tool for blended families. However, it should be in addition to, not instead of, an estate plan.

In some states, the default rule is for the surviving spouse to keep half the community property and have no right in the deceased’s separate property. Most states also allow a surviving spouse to claim an elective share, typically a third or half of the estate.

Another problem that blended families must address is planning for illness and incapacity. The spouse usually makes medical decisions and funeral arrangements. However, stepchildren may have different ideas than their stepparents. Both parents should have their wishes expressed in documents, including a Power of Attorney, Healthcare Power of Attorney, Living Will and whatever documents are required by state and federal laws.

Consider naming an executor or trustee who is neither a biological child nor a relative. Having someone who is impartial and trustworthy could relieve pressure on the children.

An estate planning attorney can clarify the possible issues arising for stepfamilies regarding asset distribution, asset protection, medical directives and planning for incapacity.

Reference: The Wall Street Journal (June 1, 2024) “The Brady Bunch Breaks Down: Estate Fights Tear Stepfamilies Apart”

Supreme Court Considers Case on Estate Insurance Tax Treatment

The U.S. Supreme Court could soon rule on a case that would significantly impact succession plans for closely held businesses and put those plans at risk for higher taxes, as reported in a recent article from Bloomberg Tax, “High Court Signals Doubt Over Estate Insurance Tax Treatment.”

Thomas Connelly and his brother created a buy-sell agreement for their family business, Crown C Supply Co. In the agreement, whichever brother survived the other had the option to buy the other’s stock or required Crown to redeem the stock, using proceeds from the company’s life insurance policies for both brothers. Michael passed away, and his brother followed the terms of the agreement.

The IRS’s position is that Michael’s redeemed stock is worth more than reported, since the company’s value increased when it received the insurance proceeds. According to the IRS, Michael’s redeemed 77% equity interest was valued at $5.3 million. The estate had reported a value of $2.3 million less, since it did not include the value of the insurance proceeds.

Thomas claims the company’s net worth did not increase because the insurance proceeds were offset by the agreement to redeem his brother’s shares.

An assistant to the Solicitor General asked the Court to distinguish between an obligation to outside creditors and the value to an equity interest holder. Redemption gives one shareholder cash in exchange for their assets, while the other is to maintain control of the company.

To date, at least three Circuit Courts have addressed the issue of whether life insurance proceeds used for a stock exemption increase the company’s value. Unfortunately, they don’t all agree. In legal circles, the expression is “Courts are split.”

For business owners with buy-sell agreements incorporating insurance policies, this decision could have significant ramifications for their estate plan. What had been a relatively straightforward estate planning tool may not be allowed after the Supreme Court releases its decision.

Should the Court rule against the estate, there are several alternative planning options. An experienced estate planning attorney can guide privately held businesses in structuring and funding their buy-sell agreements.

Reference: Bloomberg Tax (March 27, 2024) “High Court Signals Doubt Over Estate Insurance Tax Treatment”

Essential Legal Documents for Graduating Seniors

As new legal adults transition from high school to college or the workforce, they must understand the significance of having essential legal documents in place. These documents can protect their interests and ensure their wishes are respected, especially in unexpected situations.

Why Do Young Adults Need Legal Documents?

Many young adults think estate planning is only for older people, but it’s crucial for everyone. Once young adults turn 18, they are legal adults, and parents or guardians no longer have authority over their health or financial accounts or information. Accidents and illnesses can happen at any age, and having the right documents can make a big difference.

There are five essential legal documents that every young adult should have:

• Healthcare Proxy: This document allows a trusted person to make medical decisions on your behalf if you can’t communicate your wishes. Choosing a reliable and nearby person is important for making quick decisions if needed.
• HIPAA Authorization: This gives certain people access to your medical records. Without it, your loved ones might not be able to get the information they need to help you in a medical emergency.
• Durable Financial Power of Attorney: This lets someone manage your finances if you cannot do so yourself. It can help ensure your bills are paid, and your finances are handled properly if you’re incapacitated.
• Living Will: This outlines your medical treatment and end-of-life care preferences. It helps your family know your wishes regarding life support and other critical decisions.
• Preneed Guardian Designation: This appoints someone to care for you or your dependents if you cannot do so. For young parents, it ensures that their children are cared for without waiting for court appointments.

A Story of Preparedness

Consider the story shared by the Financial Planning Association about a young adult who was in a car accident. Despite being healthy and active, the accident left them unable to make decisions.

However, they had a healthcare proxy and a durable financial power of attorney. This enabled their family to step in and make medical and financial decisions on their behalf. Good estate planning can make hard times a little more manageable, even for young and healthy people.

What Happens without These Documents?

Without these essential documents, your family might face delays in managing your affairs. Courts could appoint someone to make decisions for you. While this may work out, there’s no guarantee a court-appointed agent’s views would align with your wishes. Being unprepared can make difficult times even more stressful and challenging.

How can Young Adults Get Started?

Creating these documents is easier than you might think. Here are some steps to get started:

• Talk to Your Parents or Guardians: Discuss your plans and get their input on who your healthcare proxy or financial power of attorney should be.
• Consult an Attorney: Seek advice from an estate planning attorney who can draft these documents to ensure they meet legal requirements and accurately reflect your wishes.
• Store Documents Safely: Keep your documents in a safe place, and make sure that your designated proxies know where to find them.
• Review Regularly: Life changes might require updates to your documents. Events such as moving to a new state, getting married, or having a child should prompt you to revisit your documents.

Lay the Foundations of a Bright Future

If you’re a young adult or a parent of one, now is the time to start thinking about these important legal documents. Our law firm focuses on estate planning and can help you create a comprehensive plan suited to your wishes. Contact us today to request a consultation and get started.

Key Takeaways

• Young People Need Estate Planning: Having your documents in order can make hard situations easier.
• Key Estate Documents for Young People: HIPAA Authorization, a durable financial power of attorney, and preneed guardian designation are invaluable.
• The Importance of a Will: Young parents need wills to provide for their children’s future in case the worst happens.

Reference: Financial Planning Association (Oct. 2023) “Essential Estate Planning for Young Adults”