Tag: estate planning

Welcoming Love, But Not Marriage at an Older Age

Posted by Galeet Levy on

In this newsletter we discuss older couples who have lost a spouse and are now faced with the dilemma of getting remarried or just living with their new partner. Many of our clients are getting older and may have lost a spouse. After finding companionship with a new person, they face the question of whether to remarry. Several factors affect those choices and we want to discuss them to bring them to light.

Over the past decade a pattern has emerged. Americans are beginning to retreat from marriage. While people of all ages are living together unmarried, the growth is fastest among the older segment. In 2010, 2.8 million people age 50 and over cohabitated, up from 1.2 million in 2000, according to the US Census Bureau. There are many reasons why this number has more than doubled in 10 years.

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10 Signs That Your Aging Loved One Needs Help part 2

Posted by Galeet Levy on

What if a loved one was in need of help as they aged?  Do you think you would be able to recognize the signs?  Here are 5 signs to look for that could mean your elderly relative needs help at home.

  1. Lack of Hygiene and Cleanliness

 A sign to look for with seniors who may need help is repeatedly wearing the same clothes.  This goes beyond wearing a favorite sweatshirt.  The clothes may be stained or worn out from constant wear.  It could be that doing laundry or bathing have become increasingly difficult and a physical challenge.  If a family member has already fallen in the bath or shower, they could have a fear of it happening again.  Paying attention to these habits could help prevent something worse from happening.

  1. Signs of Burned Food, Pots and Pans or Stove Tops

 Signs of burned food or burned kitchen items could mean your loved one is forgetting things.  They forget something was cooking or forgot to turn off the stove after cooking.  These signs of short-term memory loss should not be ignored.  The potential of a fire puts the loved one, as well as their surroundings, at greater risk for harm.

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10 Signs That Your Aging Loved One Needs Help part 1

Posted by Galeet Levy on

What if a loved one was in need of help as they aged?  Do you think you would be able to recognize the signs?  Here are 5 signs to look for that could mean your elderly relative needs help at home.

  1. Recent Falls

 Did you know that 1 in 3 adults age 65 or older falls each year.  Of those who fall, 20% to 30% suffer moderate to severe injuries that make it hard for them to live independently.  Staying active and exercising can help minimize the risk of falls.  Recent falls can be a sign of deteriorating health, which would be a sign that your elderly loved one needs assistance.

  1. Forgetting Medication and Appointments

The more medication an older adult takes, the more likely they are to forget a dose, or over medicate.   In 2000 the average number of prescriptions an elderly adult took was 28.5. In  2010 the average number of prescriptions per elderly person grew to 38.5, an increase of 10 prescriptions.   Whether your loved one uses a pill box to keep track of medication, it is important to pay attention to pills that are still in the box or that haven’t been touched for days.  The consequences of forgetting these meds include disease progression or complications, increased physicians’ visits or even hospitalization.

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Bequeathing a Home Part 2

Posted by Galeet Levy on

I have two children, both are grown with children of their own.  Neither of them owns a home.  I would like to keep my house in the family for everyone to use.  Its not a large home so having two families live here would be rather difficult. But they could share it.  I have a trust that splits everything between my two kids.  I have included a hand-written note that I had notarized that states my wishes that they keep the house and not sell or mortgage it.  Is this a good idea, please advise?

 

It is very important to think long and hard about this.  Is this going to cause fighting and rifts in the family?   As you stated it would be hard for two families to share the home, even a large home for that matter.  You could be setting up battles over who gets to live there, and how much they spend for maintenance and repairs of the home. It is difficult for married couples to agree on owning a property, it is even harder to get siblings to agree.  This may not go over as well as you hope. Even the best intentions can go awry.
Lets look at the other side.  Lets say they sell your home, it could provide both families with a nice down payment for them to buy their own homes.  Then they can pick a home that works for them. Then each child can determine what they want to spend and how much maintenance they want to do. Another option is one family could get a mortgage to buy out the other and live in the house.  There is also the option to mortgage the house to provide two down payments, and then rent out the house.
Also, just to note, your notarized handwritten note won’t prevent your children from selling the house. Once you pass they can essentially do what they want with the house.  But it may cause some guilt and fighting among them about honoring your wishes.
Give our office a call if you have questions regarding your estate plan, we are here to help 818.887.9401.

Funding Your Trust

Posted by Galeet Levy on

In order for a Revocable Trust to work correctly it must be funded, that is, your assets must be put in the name of your trust.   The Trust can only govern what it owns.   By funding your Trust, the Trust governs those assets. We tell our clients the importance of funding their Trust all the time.   Since there are different types of assets, there are different ways to fund them into your trust. Bank accounts, for example, are funded differently than life insurance. The rights to royalties or money owed to you are funded in a different manner. Here are three ways to fund assets into your trust.

Change of Title/Ownership

Changing title or ownership applies to assets such as bank accounts and real property. These assets are funded into your Trust by changing the owner of the asset from your individual name to the name of the Trust.

Here is an example:

Current name on ABC Bank Checking Account: John A. Smith

New Title on ABC Bank Checking Account: John A. Smith as Trustee of the John A. Smith Revocable Trust dated April 1, 2010.

Important Fact: The date of your Trust is part of the name.

Assignment of Ownership Rights

These are things such as monies owed to you.   If you loan money to someone and have not been paid back yet, you can assign the debt to your Trust. The same goes for royalties, copyrights and patents. Even oil and mineral rights are assigned to Trusts.

These are done through “Assignments of Interest” and require specific language. Contact your Estate Planning attorney if you need one, and they can draft one depending on your asset. Different assets require different language.

Change of Beneficiary

Many people have assets that are beneficiary driven. Meaning that you can’t change the title, but you can change the beneficiary. These are assets such as IRAs, 401Ks and Life insurance policies.

If you would like to fund these assets into your trust so the money is divided equally, or is used in the manner in which you chose, it is best to name your Trust as the beneficiary.

It may be best to contact your attorney or Financial advisor to help you change the beneficiary on these accounts/assets. For many of these you can contact the financial institution that has these assets and ask them for a Change of Beneficiary form and update your beneficiary that way.

 

At Hornstein Law we know the value and importance of funding your Trust and we are always available to discuss funding. Give our office a call, at 818.887.9401, with any questions. We cannot stress the importance of this enough.

 

 

 

Cleaning Up Your Estate Plan

Posted by Galeet Levy on

We write our estate plans to stand the test of time. We include clauses that cover digital life, pets and even heirs and beneficiaries that haven’t been born yet. If you never looked at your estate plan again, you would still be protected.

But it never hurts to look at it again and update it.

First let’s review what an estate plan is. An estate plan is a group of different legal documents that work together to protect you in case anything should happen.  There is a Power of Attorney if you become incapacitated, and a Healthcare Directive, for your end-of-life decision, plus much more.

The whole plan works together. If one piece is out of date, you should review the whole plan and update any part that may be out-of-date or no longer reflect your wishes.

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Caring for an Ill or Elderly Parent

Posted by Galeet Levy on

 This month we are going to cover the subject of caring for our elderly parents.   Whether your elderly parent suffers from illness or if they are just getting older and need assistance, these steps will help you organize and care for them. This newsletter will cover what documents you will need and what types of assistance may be necessary. Communicating with your loved one is the first thing you need to do and our previous newsletter covered that topic.

As we age sometimes illness and disability can come without warning. Alzheimer’s and dementia are mental illnesses that many elder adults suffer from and the onset can be sudden and rapid. These illnesses require a special type of assistance.

An elderly loved one may suffer from a fall or accident that disables them physically. This type of disability will require a different type of assistance for your loved one. It is important to know the variety of options available depending on your situation.

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Musicians Who Died Without a Will

Posted by Galeet Levy on

We have all heard the recent news that legendary artist Prince has passed away and he didn’t leave a Will. There has been much speculation about the battle between siblings over his estate and music royalties.

We wanted to talk about five musicians who passed away without Wills, like Prince, and what ended up happening in their battles.

Did you know Bob Marley and Tupac Shakur died without Wills? Bob Marley died after an 8-month battle with cancer, and he left no Will and nine children. Not to mention an estimated $30 million and royalties to all his music, and that was in 1981. Even with months to plan he did not make any attempt to set up an estate plan. As recently as 2012 there had been a lawsuit involving royalties of his music. And there may continue to be lawsuits in the future.

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Your Estate Plan – Why You Should Plan

Posted by Galeet Levy on
  1. To ensure appropriate people step in to handle their financial and health-care-related decisions upon their incapacity and death. It will help avoid court intervention such as guardianship or probate proceedings.

Most people include these documents: a will, power of attorney for financial matters, power of attorney for health care matters, a living will and revocable living trust.

These documents will ensure the appropriate people are there to handle your financial and health needs.

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