It can be difficult to plan for the unthinkable, but if you have minor children, not only is choosing a guardian a “must-do,” it can also afford you peace of mind. You may find choosing a guardian to be challenging, but it does not need to be overwhelming. In a recent blog post, we went over some aspects to consider when choosing a guardian and we’ve also compiled them into an infographic for you.
Top Ten Estate Planning Mistakes You Can Make During Covid-19: And How You Can Avoid Them – Part 1
We’ve been talking a lot recently about the mistakes we see in estate planning because now, more than ever, we are finding that people feel uncertain, and they want to know their loved ones are secure. Despite the best of intentions, sometimes estate plans just don’t work because they were not set up or maintained properly (or you never had one to begin with). While we all want to feel good about our planning, we also want to make sure it is not a false sense of security. The next few blogs will address the mistakes we often see, and how you can make sure that you don’t fall prey to them!
Mistake #1: Procrastination
One of the biggest and most common mistakes that we see in estate planning is procrastination. For many, creating an estate plan (or updating the one they did 15 years ago) is something they are always meaning to get to but never actually do. The biggest mistake you can make is not having an estate plan, because the probate court has one for you. And for those who do have a plan, their biggest mistake may be not having looked at it in years. Changes in the law, changes in what you own, family changes, job changes, changing your residence, and changing your wishes can all keep an old plan from being effective if it is not updated. In our experience, most estate plans fail because they do not reflect what you want to have happen now.
The solution to this mistake is simple: create an estate plan or update your existing estate plan. Even if you are not quite sure who you want involved or the exact details you want to be included in your plan, someone who specializes in estate or elder law planning will be able to help you with that. Additionally, if you work with a firm that has an ongoing care program, you can always update your plan if you change your mind or if your situation changes. [Read more…]
What to Consider When Choosing a Guardian for Your Children
It can be difficult to plan for the unthinkable, but if you have minor children, not only is choosing a guardian a “must-do,” it can also afford you peace of mind. You may find choosing a guardian to be challenging, but it does not need to be overwhelming. Sit down and consider the people you would be comfortable with raising your children. Once you have a shortlist, ask yourself the following questions about each potential guardian:
- Where does the person live? It is unrealistic to expect a guardian who lives a significant distance from you—and has their own life—to suddenly move into your home with your children. It is more likely the children will move into the guardian’s home, so think about whether the proposed guardian has a home large enough to accommodate your children—and if you are okay with your children being raised there. You may also want to consider how a move could affect your children, particularly if it takes them away from their current school or it puts them a significant distance from their friends.
- Do you know what the person’s religious, political, and moral beliefs are—and are you comfortable having your children’s views shaped by those beliefs? Obviously, you will never find a guardian who holds 100 percent of your personal beliefs, but you want to try for at least similar beliefs.
- Does the person have his or her own children? If so, are you comfortable with their views on child discipline, education, sports, etc.? If the person does not have children, have they spent time with yours?
- How old is the person? While an older guardian is likely in a better financial position and may have more time to spend with your children, he or she could also have little understanding of today’s kids, and current trends. On the flip side, younger guardians may be heavily involved in getting their career off the ground, having little time for children.
- Not only is age a factor, health is a factor as well. While you could never anticipate all eventualities, it is probably not a good idea to choose a guardian who currently has health issues.
- Is the person married? If so, you have to be equally comfortable with his or her spouse and have to determine how stable the marriage appears to be. If the person is single, are you confident in his or her ability to choose a partner you would approve of to help raise your children?
- Is the person financially stable? If not, will you be able to leave enough money to cover expenses for your children? Like it or not, the financial situation of a potential guardian can have a significant impact on your children.
- Perhaps most importantly, is the person you are considering willing to be guardian to your children? It is essential that you have an honest conversation with the proposed guardian to ensure he or she really understands what being a guardian entails and is willing to take on the responsibility.
The things that matter the most to you in regard to your children are as different and unique as you and your family. While you certainly want to name a guardian that will love and care for your children in much the same way as you would, you also want a guardian who is responsible. It is important that you always choose an alternate guardian just in case your first choice is unable or unwilling to step in. Finally, consider splitting the tasks of caring for your children by asking one person or team to handle finances and the inheritance of the children (be the trustees on the trust you leave for your children) while another serves as guardian and does the actual parenting.
Finally, do not let intimidation over choosing the perfect guardian keep you from choosing one at all or doing any estate planning. Remember, any guardian you choose is better than not having a guardian at all (and the state choosing for you). And if you are part of our ongoing client care program, you can always change your mind and update your guardians without us billing you for it.
How Family Estate Planning Law Group Can Help
Whether you need help choosing a guardian for your children or need assistance with other estate planning concerns, we at Family Estate Planning Law Group are here for you. We want to help you address your family’s unique concerns in all areas related to estate planning in today’s world. We understand that children grow, situations change, and you should have an estate plan that grows and changes with you and your family. We do this through our ongoing client care program, as well as our Family Care Meeting™, which encourages our clients to include trusted advisors and family members in the planning process. Together, We Plan for Life® Explore our blog, and schedule your complimentary consultation today.
Caring about the New CARES Act (Part 2): Provisions for Individuals and Families
This is Part 2 of our Caring about the New CARES Act series. You can read Part 1, an Overview, here.
While we know everyone is aware of the stimulus checks that the government has promised, there are other provisions under the CARES Act that may help individuals and families who are struggling and nervous during this time. We wanted to outline some of the provisions in the CARES Act including who can benefit from them.
Caring about the New CARES Act (Part 1): An Overview of the Coronavirus Aid, Relief and Economic Security Act
While everyone has been working diligently to social distance and keep themselves healthy, the government has been busy preparing legislation to get us through this difficult time. Our next few blog posts will highlight and discuss some of the key points in this act to help you and your families through this difficult time.
On March 27, 2020, the government passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) which is a $2 trillion stimulus bill designed to help individuals, families, and businesses during the COVID-19 crisis. While the bill itself is over 800 pages, we wanted to give an overview of provisions that may apply to our clients and families, giving special attention to some of the financial provisions and programs for individuals and small businesses. We recently came across a great summary of some of the CARES Act benefits by Leon LaBrecque on Forbes.com. We encourage you to check out that article (here).
Preparing for the Unexpected in Life
According to the Oxford dictionary, a plan is “a detailed proposal for doing or achieving something” or “an intention or decision about what one is going to do.” When everything is going well and we’re sailing along with no worries, planning can feel unnecessarily burdensome or like a waste of time which could be better spent enjoying life. In the midst of busy and full lives, it can be hard to slow down enough to think strategically about the future.
Here at Family Estate Planning Law Group, we believe in planning. It’s in our name, and it’s in our DNA. We can learn a lot, and we can know a lot, but we will never know the future or be able to predict what is coming next. As we all know and have experienced, life has a way of throwing unexpected things at us. Just when we think we have a concrete five-year plan, something changes; when we feel like we are in a certain spot, something shifts. That’s where a plan comes in. It is “an intention or decision about what one is going to do.” It means taking the time to be intentional about how we will deal with the unexpected, so when it happens, we know what we’re going to do.
What to Consider Before Moving Your Aging Parents into Your Home
Partially because of the large number of Baby Boomers advancing through retirement and their senior years, there has been a marked rise in multigenerational households. From the 1980s to the mid-2010s, the number of homes that have more than one adult generation living together under one roof has risen from 12 percent to 20 percent.
Moving your older parents in with you can provide a lot of benefits for both you and them, from not having to shell out for living space at a nursing home or senior facility to being close by in case of any health issues or emergencies. But it can also bring back plenty of the stress that might be familiar from when you were a teenager living under their roof.
There are a lot of aspects to consider/work out before you bring your parents to live with you in your home, ranging from financial concerns to safety issues.
Wide-ranging financial implications
Moving your parents in doesn’t mean you have to charge them rent necessarily, but there will certainly be some gray financial areas to be ironed out. Do you have adult siblings? Perhaps there’s some merit to having them pitch in on the cost of supporting your parents since you’ll be housing them under your roof.
Or maybe your parents will insist on paying their ways, such as any medical care or even offering you payment for their room and board. While that is generous, it’s important to consider how this living situation and any costs they’re shouldering can affect aspects of their estate plan or yours.
For example, are they eligible for Medicaid or trying to qualify for it in the near future? Keep in mind the income and asset thresholds, as well as the potential for monetary gifts to affect eligibility. As uncomfortable or unnecessary as it may seem, entering into a written rental agreement with your parents will ensure that any money they contribute toward their living and well-being under your roof isn’t seen as an uncompensated transfer which could prevent Medicaid eligibility.
Furthermore, how does their living situation affect your estate plan and theirs? Is the house an asset in your name or theirs? What happens if you both spend money on improving it? Will other beneficiaries of their estate plan be upset if your parents spend money on you or your house and change the balance of inheritable assets?
These are all things to talk over in full, both as a family and with your estate planning professional. At Family Estate Planning Law Group, we offer Family Care MeetingsTM as part of our ongoing client care program to help facilitate these kind of conversations. Bring everyone in to talk it out with our team and voice their concerns or questions— together, with you, we’ll fill in the blanks about maintaining the estate plan while being able to meet you and your parents’ needs after they move in with you.
But, also, safety first
While there are a lot of financial ins and outs to examine in this situation, don’t lose sight of why you’re doing this—to give your parents a safe and comfortable living situation with family in their old age. Those mentions of improving or remodeling your home above aren’t just about beautifying the place with the generosity of your parents, it’s also about making necessary improvements to make the home safer for them.
Aging in place has become a more common topic among home builders and remodelers in light of the rise in multigenerational living. Making a home senior-friendly will involve some alterations to prevent slips, trips, falls and other accidents.
You may know enough to install a grip bar for your showers or toilet, maybe add a ramp to your front door, or even install a stair chair. But getting a whole-home inspection will identify elements that may not be immediately apparent, such as loose rugs and slippery areas of hardwood floor or tile, poor lighting for someone with diminished eyesight that can cause bumps and trips, air quality concerns, difficult doorknobs or steps, and much more. Take the time to adapt your home for caring for your parents so that they can be comfortable, happy, and healthy living with you.
Having your parents move in with you can be a very selfless and loving act, but so too can helping them move into senior housing; it ultimately depends on dynamics and finances. Regardless of which direction you choose, at Family Estate Planning Law Group, we can help you navigate how to proceed with either decision. We are experienced in planning for mom and dad and in multigenerational estate plans. Our ongoing client care program enables us to help you navigate the implications of the decisions at no extra cost.
Schedule your complimentary consultation today to learn how we can help you plan your estate and decide the best next steps for you and your aging parents.
To learn more about this and other estate planning topics, visit our website, explore our blog, and schedule your complimentary consultation today!
Grab Your Hero Cape
For too long the media has controlled the narrative of estate planning. I remember watching the daytime soap opera The Young and the Restless, and every time a character died there would be a dramatic will reading in a dark wood-paneled room, or every time Victor was offended by his children or he and Nicki broke up or got back together again, someone would be written into our out of his will. Let’s not forget the trust funds lorded over the kids’ heads either. In reality, estate planning is not just a tool for the rich to try and manipulate their family. To use the popular phrase of the times, that’s “fake news”.
Most estate planning attorneys view themselves as the ultimate authority on estate planning, but what they fail to see is that clients are our ultimate authority because without their input and their leadership we can’t help them truly protect their families. Every family is unique, and every client has their own wishes goals and preferences.
Estate Planning Documents Every College Student Needs
Entering college is the start of an exciting chapter in a young person’s life. It may seem inappropriate or even a little morbid to be thinking about estate planning at that time, but there are documents that are important for a college student to have in place, even if the more traditional elements of estate planning, like assigning asset distribution, aren’t as relevant.
The key here is that once your child becomes 18 years old, they’re a legal adult in the eyes of the government. That means if the unthinkable should happen and your son or daughter should become incapacitated, there is no legal guarantee that you, as a parent, can step in to guide financial and medical decisions unless you have certain planning documents.
A New Savings Approach to Supporting Your Child’s Future
Norms are changing. Every new generation brings about change, and Generation Z and the younger Millennials are reshaping the road traveled once high school is completed. Instead of taking the traditional path that older Millennials largely took, of going to college after secondary school and incurring high student debt, these young adults are taking more varied approaches to building debt-free and successful futures. Since the paradigm is changing, you need to be more flexible in how you save for college and the future for your children. A recent article from Kiplinger, “How to Stay Flexible in Saving for Your Child’s Future,” gives advice on how to be more adaptable in today’s changing college and career world.
A recent TD Ameritrade survey, as cited in the Kiplinger article, found that 1 in 5 young Americans ages 15-21 (Gen Z) and 22-28 (Millennials), may opt out of college. We’ve mentioned this in previous blogs, but one of the underlying reasons for this is that student debt is a major roadblock to life milestones and financial freedom. As the Kiplinger article points out, the TD Ameritrade survey found, “47% [of young Millennials] delayed buying a home because of what they owe, 40% delayed saving for retirement, and 31% delayed moving out of their parents’ home” (Kiplinger).