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Wills. The long-term consequences of not having a will are huge. Your assets will go to probate, which can leave your family with huge expenses that will eat away at your wealth. Many folks don’t have a will—even though they know they should. It should come as no surprise that many baby boomers are stuck dealing with an estate without a will. This has encouraged many baby boomers to invest their time in making sure that their own children are better prepared. An outdated will can also cause major issues for a family. If you have been divorced or recently widowed and remarried, it is crucial to reflect those changes in your will. Think it would go over well if your estate is left to your ex? Funerals. If funds are tied up in probate or otherwise inaccessible for funeral planning, it can create considerable stress and a financial burden. In theory, an entire inherited estate can be used to pay for the funeral, but you should have liquid assets available for the funeral. More baby boomers are opting to pre-pay for their funerals or to set up an account designated to use for funeral expenses. US News says that about 23% of people over 50 have prepaid for at least some of the funeral or burial expenses for themselves or someone else. Healthcare Costs. Unexpected healthcare costs can put a major dent in a retirement plan. Baby boomers need to have early conversations to determine if their parents have included health care costs in their retirement planning. And they shouldn’t neglect health care costs in their own retirement plans. People often fail to add these expenses into their long-term retirement planning. You should know your health care costs and account for them into your long-term strategy. In order to plan for health care expenses, you should consider the following: Current healthcare expenses Details and coverage of each plan Plan providers Insurance details Prescription costs Doctor fees Current budgets and budget adjustments required for the future If there are health concerns now, be sure you plan for them long-term. Baby boomers are learning the hard way that it’s important to plan for the worst and hope for the best. Trying to find health information in a crisis is stressful. Having family planning meetings and going over all of the possibilities will help when the time comes to deal with these issues. If you have experienced the loss of a parent, you already know first-hand the importance of strong estate planning and the benefits to surviving family members. Learn from poorly planned estates and implement better planning for yourself and those you love. Reference: A Place for Mom (March 25, 2016) “Poor Estate Planning Lessons Inherited by Baby Boomers” #AssetProtection #ProbateAttorney #ProbateCourt #Inheritance #Funerals #Wills #HoustonEstatePlanningLawyer #TaxPlanning #HoustonTrustsandEstates

Estate planning. Everyone needs some basic estate planning, especially those starting families. Before your first child is born, draft a will that establishes guardianship for your children if both parents die. Set up a meeting with an estate-planning attorney to help you with this. Budgeting for unpaid maternity leave. Unlike most of the rest of the world, American employers may not always offer paid maternity leave. Companies must give women 12 weeks off for the birth of a child, but aren’t required to pay them during this time. Research your employer’s policy, and if you won’t receive paid leave, you should save more for the loss of income. Life insurance. This is a payout to your family or other beneficiaries if you die and replaces your income. If you’re starting a family, at least one parent most likely will need to have life insurance. To decide, ask yourself: What happens to my family financially if I die? What money or services would they need to replace? Disability insurance. This policy replaces part of your income if you can’t work due to an illness or injury. If your family is dependent on your income, you should have coverage. Employers frequently offer disability insurance as a benefit, but if yours doesn’t, consider a private policy. If you have a disability policy through work, it may not be enough coverage. Find out the details, and if that is the case, consider purchasing a second policy privately. Asset protection. An umbrella liability insurance policy is a great asset-protection tool. It provides personal liability protection over and above the limits of your automobile insurance or homeowners insurance policies. If your auto policy only covers you for $500,000, an umbrella policy would cover damages above that to your policy limits. Dependent care benefits. Many employers offer dependent care flexible spending accounts, and with a new family, you should definitely fund an account. You can defer up to $2,500 per year of your pretax salary ($5,000 per year if you’re married and file a joint tax return) toward qualified child care expenses like day care or a nanny. These accounts are “use it or lose it,” so spend every dollar you put in each year. Using an account can impact your ability to claim the dependent care tax credit, but it may be better for high-earning filers to fund the FSA. Education planning. This may be down on the list, but the earlier you start saving for your child’s education, the easier it is to save enough. Consider an education savings account, such as a 529 plan, early on and contribute regularly. These pointers aren’t by any means the only ones you should consider if you’re starting a family, but they are important and many times overlooked. Try to get these issues resolved before the baby arrives. You’ll be in solid financial shape and you can concentrate on other demands and the joys of being a new parent. Reference: nasdaq.com (March 16, 2016) “Having a Child? 7 Important Financial Considerations” #AssetProtection #Guardianship #529EducationalSavingsPlan #DisabilityInsurance #Wills #HoustonEstatePlanningLawyer #LifeInsurance

#1: Set your goals: Write down your goals and objectives. This will make them real, and you’ll have a better chance of achieving them. These goals can be short or long term or both; and they can be big or small. But make them important to you. Draft your goals and include a timeframe, costs, and what you intend to pay for them. #2: Stop procrastinating: When it comes to deciding on your retirement, remember time is money! “Thinking about it” is nice, but it could be a lost opportunity. Talk with an experienced estate planning attorney for accurate and comprehensive information, and so that you understand the circumstances and possible outcomes. #3: Diversify your nest egg: Don’t put all your eggs in one basket! Diversify your investments across asset classes, terms, and risk. Investing only in the stock market can be both lucrative and risky. Putting all your money in a CD or money market is safe, but is not going to give you the financial outcome you require. #4: Understand good debt and bad debt: Not all debt is bad. Debt that provides you with a tax deduction, such as a mortgage, is a better kind of debt. However, credit card debt is bad debt because the interest isn’t tax deductible and those interest rates could be super high. #5: Understand life’s risk: Stuff happens in life, and not all of it is good, like a fire, disability, getting sued or dying. You really have three options: (1) avoid risk, which is sometimes possible; (2) transfer the risk to an insurance company; or (3) accept the risk, and the bad outcomes that may come with it. #6: Have proper planning documents for you and your estate: Make sure that you’re covered when you die or if you become incapacitated. Will your designees, beneficiaries, and heirs know what you want them to do or have? Who’s going to make your health-related decisions on your behalf? A living will or advance directive can be executed before they’re needed. If you own property, a living trust may help ensure that your assets are properly distributed when you pass. An estate-planning attorney can help you with all of these issues. #7 Understand where you need help and how to get it. Talk with professionals to understand the areas where you may need help. Reference: Forbes (March 15, 2016) “7 Ways to Have the Most Successful Retirement” #AssetProtection #HoustonEstatePlanningLawyer #LivingTrust #HoustonTrustsandEstates #RetirementPlanning

When Catherine Falk asked to see her ailing father, her stepmother slammed the door in her face, and when Kerri Kasem wanted to take her dying father to a hospital, her stepmother threw raw hamburger at her. These battles made news because the women’s fathers were well-known public figures—Peter Falk and Casey Kasem. Both died in the midst of family legal wrangling over the visitation rights of relatives, says The LA Times in “These children of celebrity dads are taking their stepmoms to court.” “It cost me $400,000 to see my father,” Kerri Kasem recalled as she traveled to New Mexico to testify before the Legislature. Her Kasem Cares Foundation is supporting legislation that would make it easier for friends and relatives to visit ailing elders. The same day, Catherine Falk went to Utah to promote a similar visitation bill supported by the Catherine Falk Organization. These two have become a powerful combo for reforming visitation laws, lobbying for change in more than 30 states. The bills focus on visitation rights and seek to provide intervention for seniors being physically or financially abused. The ultimate goal is a uniform federal law, however the bills are different in each state. Falk’s legislation defines the legal standards for conservators, including a duty to inform relatives of a subject’s illness or death, and permits “reasonable visitation” access. Any issues would be settled in a streamlined court process to determine if the visit would be harmful to the senior. When Falk died at the age of 83, Catherine and her sister learned of his death from the media and were never informed when he was buried. Her stepmother testified that she had taken proper care of her husband as his appointed caregiver. Kasem, the longtime “American Top 40” host, was removed from an LA-area hospital by his second wife Jean Kasem. Disconnected from a feeding tube and barely able to walk or speak, Casey was taken to Las Vegas, then to Washington State, where he died from complications of dementia. Jean then reportedly flew Casey’s body to Canada and then Norway, where he was buried at the conclusion of an eight-month, 8,000-mile odyssey. Then came a drawn-out legal challenge where the Los Angeles district attorney’s office investigated Jean Kasem for neglect and elder abuse. However, it concluded there was insufficient evidence to support criminal charges. The DA’s Office said that Jean Kasem had made “continuous efforts to ensure that Mr. Kasem was medically supervised,” and that relocating him to Washington was an effort to protect his privacy. Reference: LA Times (March 16, 2016) “These children of celebrity dads are taking their stepmoms to court” #ClearLakeEstatePlanning #Dementia #ElderAbuse #ElderLaw

If you don’t plan your estate, a judge will distribute your assets by applying the state’s intestate succession laws, which may not be the same as your distribution wishes. In addition, your estate plan should name a guardian and financial manager for minor children, state the care you want to receive if you become disabled, make business transfer arrangements, and specify how life insurance will be used for your family if you die unexpectedly—or disability insurance if you become disabled. All of this should be accomplished while minimizing taxes, court costs, and legal fees. An estate plan should also have provisions for passing your values to your heirs, like your religious beliefs and philosophies on the importance of education and a work ethic. First, create a last will and testament and a living will. A last will and testament says how your assets are to be distributed to your heirs when you die. A living will states how life-sustaining medical treatment decisions should be made in the event that you become incapacitated and unable to communicate them yourself. Also, a durable power of attorney designates an individual to control your financial affairs in the event you become incapacitated. A revocable living trust is another important estate planning document because it may allow your estate to avoid probate, which can be a potentially expensive and time-consuming process. A trust will prevent the court from controlling your assets and allow for privacy of your estate. Plus, you can change the trust whenever you want. Another benefit of estate planning is that it forces you to organize your financial records and files. You’ll locate all your important documents, titles, deeds and policies and get them set in one secure place (like a fireproof safe). If you haven’t done any estate planning yet, begin the process slowly and concentrate on your last will and testament and living will first, then work on the other documents in your plan over the next year as your time and budget allow. Have an estate planning attorney draft these estate planning documents for you. Reference: kob.com (March 6, 2016) “Estate Planning for the Rest of Us” #AssetProtection #ProbateAttorney #HoustonWills #Probate #PowerofAttorney #HoustonEstatePlanningLawyer #HoustonRevocableLivingTrust

Take a look at Kiplinger’s “12 Ways to Go Broke in Retirement” and learn how to avoid them. Relying on a single source of income. Multiple income streams are better than one, particularly in retirement. Social Security is the primary source of income for 61% of retirees, according to the Transamerica Center for Retirement Studies. Social Security will only be able to pay 77% of promised retirement benefits beginning in 2035. A pension or inheritance likely won’t be enough to support you through retirement either. But when you put them together, along with your 401(k)s and IRAs, then you have a more stable and diversified financial base upon which to rely in your retirement. You get sick. As you age, your health is bound to deteriorate, and getting the right type of care is expensive. Make sure you’re doing all you can to cut healthcare costs in retirement by considering supplemental medigap and Medicare Advantage plans. Review your options every year. In addition, long-term care increases the bill further. Consider getting long-term care insurance to help cover those costs, and use these ideas to make it affordable. You tap the wrong retirement accounts. This mistake probably won’t leave you flat broke, but it can cost you. The most tax-efficient way is to draw down the principal from your maturing bonds and certificates of deposit first, as they are no longer bearing interest. If you’re 70½ or older, take your required minimum distributions (RMD) from your IRAs and 401(k)s. There’s a big IRS penalty for failing to take RMDs. Then, sell from your taxable accounts, on which you only have to pay the capital gains tax. Finally, withdraw from your tax-deferred and Roth accounts, in that order. You don’t think about taxes. Where you live impacts what you pay in taxes significantly. That’s one reason why people flock to Florida and Arizona after they retire. In addition to warm weather and sunshine, those states offer some of the country’s most tax-friendly environments for retirees. Taxes alone shouldn’t dictate where you live in retirement, but they do enter into the equation. You are underinsured. Insurance isn’t the best place to cut costs. Adequate health coverage is critical to preventing a devastating illness or injury from depleting your nest egg. Medicare is very complex, and it’s more expensive than people realize, so it should be part of the budgeting process. Also, you need to consider other forms of insurance because your chances of having accidents both at home and on the road increase as you age. Reference: Kiplinger (March 2016) “12 Ways to Go Broke in Retirement” #PayingforaNursingHome #HoustonAssetProtection #SocialSecurity #HoustonLongTermCarePlanning #PlanningfortheFuture #Medicare #RequiredMinimumDistributionRMD #RetirementPlanning

Likewise, a recent study by True Link Financial estimated the problem costs more than $36 billion every year. But these statistics may be low because elder financial abuse crime frequently goes unreported. Victims can be too embarrassed to admit they’ve been swindled, or they just don’t know how to get help. To help protect an older loved one from elder financial abuse, become familiar with the more common types of scams: Telemarketing often involves the elder making a purchase over the phone or making a donation to a charity; Medicare and health insurance fraud happens when a con artist poses as a Medicare or health insurance representative and asks for personal or payment information for a fraudulent invoice; and Internet fraud is where legitimate-looking emails ask for money or personal information. Here are a few other important ways to guard against potential elder financial scams. Don’t answer calls from numbers you don’t recognize to help avoid spoofing and telemarketers. If a call appears legitimate and appealing, the senior should ask if the organization is licensed, as each state has licensing requirements for the sale of financial products and insurance. Although many legit salespeople offer to meet clients in their home, all strangers should first be fully vetted. If someone who reaches out to you agrees to a meeting, bring along a trusted adviser. If the solicitor balks, end it right there. If you think you’ve been targeted for some sort of scam, take quick action. Contact the police, the bank, the brokerage company, or other financial officials. Many times they can intervene before a thief can access the money, or they can at least limit the damage. Reference: Deseret News (March 8, 2016) “How to prevent your elders from being targeted by a financial scam” #AssetProtection #ElderAbuse

But wlbz2.com’s article, “Getting remarried? Get a financial plan first,” says that many folks do little planning, and that ends up increasing the conflict and chaos that often occurs down the road when “death do us part.” Most don’t get that marriage automatically gives significant rights to the new spouse. They’ve never heard of spousal elective shares or homestead rights, and have not thought of the effect of their remarriage on their estate when they die. For example, in some states, the rights that a spouse automatically gains upon marriage may include: The right to be the guardian for the other spouse; The right to be the personal representative of a deceased spouse; A right to an “elective share” percentage of the other spouse’s estate; A right to the ownership or use of the house; A right to personal property of the deceased spouse, including heirlooms; An automatic right to be a beneficiary of the deceased spouse’s ERISA accounts; and A right to be supported under state filial support laws. The simple fact is people just don’t like dealing with these issues, whether it’s their first marriage or their fifth time around. But if you plan on getting remarried, or already have, here are some of the things to keep in mind: Consult an expert. State laws vary, and people thinking of a remarriage should meet with a qualified estate planning attorney to understand what their rights are and how to handle those rights and powers. Get a prenuptial. Folks getting remarried should think about getting a prenuptial agreement, especially if they have a home or business they want to pass to their descendants from an earlier relationship or if each spouse wants to retain the right to pass on their personal investments and property to their respective descendants. Once married, if a new spouse dies without a prenuptial agreement, the surviving spouse will get to inherit what state law allows (a spousal right of election). Even if the deceased spouse leaves assets to children from a prior marriage, it won’t fly without a waiver of the spousal right of election—a document which is frequently signed in conjunction with a prenuptial agreement. Get your fair share. There are two ways in which a surviving spouse can get an intestate share of a deceased spouse’s estate. First, if a married person dies without a will, then the surviving spouse is entitled to a share of the estate—generally limited to the intestate estate; and if the decedent leaves no descendants, then the surviving spouse will usually get 100% of the intestate estate. Where you live matters: in some states, the surviving spouse gets a minimum dollar amount or minimum percentage of the intestate estate, even if there are surviving descendants or surviving parents. Second, in most states, if the decedent’s will existed before a marriage and was not made in contemplation of the marriage, the new spouse is entitled to an intestate share of the estate. Reference: wlbz2.com (March 10, 2016) “Getting remarried? Get a financial plan first” #AssetProtection #ProbateAttorney #ElectiveShare #Probate #ProbateCourt #PrenuptialAgreement #Inheritance #ClearLakeEstatePlanning

According to the Southeast Missourian’s article “Get it together: Organizing your estate now will ease the burden on loved ones later,” organization is critical in estate planning, especially for an executor of an estate. To simplify the organization process, some use software that aggregates all of their financial data, including digital copies of their estate documents, giving them access to all of the financial and estate plan data in one secure location. This makes things much easier for the estate administrator or executor, especially for children or executors who live out of state. Those who choose to store their own documents need to make certain that their spouse, other family members or friends can easily find important papers. It’s a huge favor to them to organize these by creating a filing system. One way of organizing services is to develop a filing system that is easily readable. Use a standard, sensible method. Place the tabs on the folders on the left side because your eyes normally start reading on the left. If all the tabs are on the left, you can read the tabs more easily than if some are on the left, some in the middle, and some on the right. Compile documents into categories of those updated periodically and those stored permanently. Make a section of files that are yearly files, which you’ll clean out at the end of the year, as well as “forever” files. These are life insurance policies, homeowner policies, birth certificates, marriage license, immunization records, wills, and other estate planning documentation. You can also use color coding. For instance, you can use red folders for medical information, blue folders for your utilities files, and green for your investments. An adult child is frequently asked to sort out estate matters after the death of a family member. Many families have one or two children who will oversee the distribution and settling of an estate. It’s important that these kids be involved in the estate planning discussions to understand how the estate is set up and where important information can be found if needed. Some folks even have a dress rehearsal with those involved to rehearse the various steps necessary to settle the estate if mom and dad are no longer living. It’s a terrific way for folks and their kids to see how important it is to remain diligent about estate planning, and it also creates some peace of mind for everyone involved. Reference: Southeast Missourian (March 7, 2016) “Get it together: Organizing your estate now will ease the burden on loved ones later” #HoustonEstatePlanning #Inheritance #Probate

CNN Money’s article, “The retirement crisis facing Hispanics,” reports that part of the reason for this is that many Hispanics—especially those in low-wage jobs—don’t have access to retirement plans. For example, immigrant Hispanic workers are frequently more likely to be undocumented and working off the books or working in low-wage jobs that don’t have retirement accounts. Low rates of participation contribute to low rates of retirement savings. Hispanics may work for small businesses and in low-wage, non-union jobs that don’t offer many retirement savings options. As a result, many Hispanics rely on Social Security as their sole financial support in retirement. This puts many workers in a precarious situation. Since Hispanics are more likely to live longer, they’re also more apt to work longer into their old age. Some Hispanic workers will work longer, and they’re going to rely on their families—and they’re going to be poorer. When they do have access to employer retirement plans, Hispanic workers generally don’t contribute as much to those plans because they can’t afford it. They’re also less likely to buy life insurance and more likely to borrow against their 401(k)s. Data shows that they’re also more likely to rely on family for financial support. While that provides a certain amount of security and stability, it can also be burdensome for younger family members. That’s why millennial Hispanics need to focus on saving. They also need to think about estate planning, buying insurance, and keeping a close eye on their credit. This can help prevent a financial emergency from becoming a financial crisis. Reference: CNN Money (March 2, 2016) “The retirement crisis facing Hispanics” #AssetProtection #IRA #401k #HoustonEstatePlanning #Hispanics #Insurance

As WMUR9.com explains in “Money Matters: NH health surrogacy laws,” this person is known as a surrogate decision-maker. He or she has the same authority as an agent named in a durable power of attorney for health care. The degrees of family relationship that determine how a surrogate is chosen are in the following priority order: Spouse, civil union partner, or common law spouse (if no divorce proceeding, separation agreement or restraining order); An adult son or daughter of the patient; A parent of the patient; An adult sibling of the patient; An adult grandchild of the patient; A grandparent of the patient; An adult aunt, uncle, niece, or nephew of the patient; A close friend to the patient; An agent with financial power of attorney or a conservator; or The guardian of the patient’s estate. If there’s more than one surrogate candidate at the same priority level, it becomes their combined responsibility to make a reasonable effort to come to a decision on their loved one’s care. The start of a guardian proceeding places the surrogate’s authority on hold until the outcome of that hearing. Once named, a surrogate may act up to 90 days. This ability terminates if: The patient regains health; A guardian is appointed; or The patient is near death. A patient may always reject the surrogate, and even though there are default provisions in place, healthcare providers must still undertake “reasonable inquiries” as to whether the patient has an existing guardian or authorized agent under DPOAHC. If they don’t find any, they may identify a surrogate. At that point, the provider names the surrogate and that person is recorded in the patient’s medical records. The physician may revoke the surrogacy if the surrogate is unwilling or can’t act. If a person does decide to prepare a DPOAHC, then the selections need to be reviewed regularly. This is an important document to have, so discuss its ramifications with an estate planning attorney and ask about other estate planning documents such as wills, durable powers of attorney for finances, and perhaps a trust. Reference: WMUR9.com (March 3, 2016) “Money Matters: NH health surrogacy laws” #AssetProtection #Guardianship #ProbateCourt #LeagueCityWills #Inheritance #ClearLakeEstatePlanningLawyer #PowerofAttorney #Trusts #ElderLaw

More than 4,000 cases involved financial exploitation, and there were 3,661 reports involving vulnerable adults being physically abused. Arizona had more than 9,400 cases of neglect, including self-neglect cases. The 2015 caseload of Arizona Adult Protective Services is at an all-time high. According to its Annual Report, APS reports have increased by 79% in the last five years. The report also said they’ve closed 13,394 cases after investigations. The increase in cases in the last year can be attributed to more awareness and education of the problem with more people reporting cases to APS. According to the National Center on Elder Abuse, only one in 14 cases are reported. Financial abuse is becoming more prevalent, not just within the Copper State, but nationwide. The 2008 recession caused a new kind of vulnerability for the elderly. Resources were already scarce prior to the drop in the economy, and those who were already struggling to make ends meet faced even more difficulties. People who seek to exploit older adults are capitalizing on their desperation and their vulnerability. Today they’re also capitalizing on the fact that the number of older adults has increased, which provides even more opportunities. Nationally, financial abuse and exploitation lead to seniors losing about $2.9 billion yearly. It’s not uncommon to see perpetrators without malintent who are reported, as some caregivers become overwhelmed and overworked. This can lead to vulnerable situations. APS reported last year that 30% of alleged perpetrators were family members. Arizona has no unique sentencing laws for vulnerable adult abuse cases; these cases have the same potential felonies as any other crime in Arizona. In Arizona, between 4,600 and 6,900 seniors will experience some type of abuse every year, according to the Arizona Elder Abuse Coalition. Reference: Cronkite News (March 2, 2016) “Abuse of Arizona’s elderly increases as aging population grows” #AssetProtection #ElderLaw #HoustonElderAbuse