Powers of Attorney and Legal Age of Majority

December 5, 2022Filed Under: Estate Planning

It may be difficult to imagine that your child who once needed you for everything has suddenly become an adult when he reaches 18 (depending on the state). Now they are free to vote, marry, apply for a credit card, make medical and financial decisions, sign contracts, and live independently. No wonder the law describes this coming of age as “emancipation.”

Health Care Power of Attorney

But imagine your adult child is hurt in an accident and needs somebody to make critical medical decisions. You can’t be the one to act on their behalf without your child naming you as power of attorney, even if you’re still paying for their health insurance. If your child is so severely injured that a guardian is needed, you would not automatically be that person. Court proceedings that are expensive and time-consuming would be required first. If your child has a health care power of attorney naming you as their agent, it would avoid guardianship and give you the authority you need to instruct medical professionals on their behalf. You may also have your child sign HIPAA release forms to access medical records.

Financial Power of Attorney

In money matters, you will not be permitted access to your adult child’s bank accounts unless your child has made you their agent in a financial power of attorney. This document allows you to pay bills, file taxes, make investment decisions, collect debts, and manage property.

Accessing Educational Information

Even when you’re paying for your child’s education, schools will not release educational records if they haven’t received a signed Family Educational Rights and Privacy Act (FERPA) disclosure statement when your child reaches majority.

The Age of Majority

Becoming an adult is a significant life milestone. Different states have varying ages of majority. In general, your child’s 18th birthday would be a good time to explain about paying bills and getting a copy of their birth certificate and social security card. Other aspects of living independently include registering to vote, signing contracts to rent apartments, or making major purchases like a car. They’ll be prepared with the right information to carry out basic responsibilities.

Remember to explain powers of attorney in your child’s “coming of age” discussion, or take them to see your family’s estate planning attorney. These forms are vital during stressful situations involving accidents or illness when your adult child needs you. Make sure that when critical decisions need to be made, no one can tell you “no.” Powers of attorney could avoid delays in care, emotional heartache, and additional expenses.

We would be happy to help your child with the proper powers of attorney, as well as other planning needs that become more urgent as we grow older. If you’d like to discuss your particular situation, please don’t hesitate to reach out. Please contact our Cincinnati office by calling us at 513-771-2444 and schedule a consultation.

Partnering With Your Spouse or Partner to Plan Your Estate

November 2, 2022Filed Under: Estate Planning

An estate plan that is comprehensive requires careful thought and discussion with your spouse. Before meeting with an estate planning attorney, it is best to discuss your ideas to present a united goal. This conversation can be challenging if you and your loved one have different points of view about your future and the legacy you will leave behind. Suppose you have a blended family; how do you choose to provide for them? There is a lot to process with many emotional topics regarding your mortality, being fair to children, and more.

First, you must decide what elements in an estate plan are most important to you. Once you have a clear idea, you can readily communicate your needs and identify avenues of compromise. At the start of your discussion, state some clear objectives to promote a positive and productive conversation.

Children in Blended Families

Some couples will agree on family beneficiaries, although a blended family with stepchildren may find it challenging. Looking at the big picture first and then fleshing out details can help minimize any tension. There will be back and forth as you craft your ideas and negotiate priorities. Even if you don’t agree on everything, you can discuss why certain elements are crucial to you and openly discuss your point of view until you reach a compromise.

A Partners Rights of Survivorship

Rights of survivorship will not automatically go to an unmarried partner. Because of this, it is critical to create an estate plan specifically addressing how to provide for your loved one. Holding your home as joint tenants gives the surviving partner full ownership of the property. Some payable on death accounts and other designated beneficiary accounts like IRAs or 401(k)s will pass outside probate and be paid to them directly. However, in the absence of a will and other estate plans, the surviving partner often has no legal rights to automatic inheritance. It can be contested.

Setting the Stage for Your Talk

Choosing the right time and place for a serious conversation can lead to a positive discussion. The best circumstances for a talk are different for each couple. Be sure the environment isn’t full of unfinished chores or lots of activities that can sidetrack your estate planning intentions. If you meet resistance to future planning, talk about why you believe estate planning is important to protect yourselves and your family.

Take some general notes and stay open to your partner’s or spouse’s perspective. Avoid being judgemental. If the meeting begins to focus on how you disagree, take a break and give yourself some time to reflect on those issues and revisit the topics when frustration levels are lower. Your estate planning attorney, who understands the best way to structure your estate and is a neutral third party, may be able to help resolve some sticking points later. Continue to focus on the areas where you can agree.

Responsible Estate Planning Takes Time

You will need to craft a will, power of attorney, living will, and healthcare proxy. Some couples will require trusts and insurance policies as part of their estate plan. Your estate plan will cover asset preservation, management, and distribution after you die. It will identify those individuals who will act on your behalf to close your estate properly. If you become incapacitated, your properties, financial obligations, and medical wishes will be clear.

If you already have an estate plan in place, don’t forget the importance of reviewing your documents every couple of years or when family circumstances change surrounding births, deaths, marriage, and divorce. If there are substantial financial changes, it is also wise to review how you plan to address these ups and downs.

While it can be uncomfortable for some couples to broach estate planning, it is a crucial step toward securing your future together and your family’s legacy after you are gone. Approach conversations with a positive attitude and problem-solving spirit. Let your estate planning attorney review and guide your process to create an estate plan well-suited to your life and wishes.

We hope you found this article helpful. If you’d like to discuss your particular situation, please contact our Cincinnati office by calling us at 513-771-2444 with any questions.

The Combination of Estate Planning and Elder Law Equals Life Care Planning

October 3, 2022Filed Under: Elder Law, Estate Planning

Elder law and estate planning are often used interchangeably, but there are significant differences between them. While some overlap exists between the two, learning and implementing strategies from both law practice types is crucial to prepare for successful aging and preserve a family legacy.

Estate planning lets families:

Name guardians for minor children
Manage and protect valuable assets
Distribute property according to specific instructions after you die
Minimize potential estate taxes
Simplify or avoid probate
Distribute property to beneficiaries
Create a business succession plan

Younger people tend to focus on asset protection in their earlier years. They are building their legacy.

Elder law primarily deals with later stages in life and an aging individual’s needs while they are still alive, like:

Retirement goals
Paying for long-term care
Protecting the family if they become incapacitated due to an accident, severe illness, or reduced cognitive function
Accessing proper health care without depleting a senior’s resources
Protecting the legal rights of aging adults
Address the needs of persons with disabilities and war veterans, including their spouses, children, and caretakers

Seniors worry about protecting their legacy from medical costs, fraud, or abuse. They want to keep the family home for a spouse or the next generation.

What is Estate Planning?

Estate planning is for adults of all ages. An estate plan determines what will happen to assets upon death. An estate planning attorney can use wills and trusts to ensure your wishes are followed. If there are minor children, a will identifies a guardian to guide and protect them through life until they become adults. Naming a guardian for minors is a crucial aspect of a will.

Estate planning lawyers can structure assets and property to help an estate avoid probate. Various revocable and irrevocable trusts can save money on estate taxes, leaving more to beneficiaries. The probate process is slow, can be very costly, and is a public process, so it makes sense to keep as much of your estate out of probate as possible.

Several assets can pass to heirs without being addressed in a will or a trust through beneficiary designations. Insurance plans, IRAs, and 401(k)s are all examples of beneficiary designation account types. Reviewing your designations is crucial for major life changes, particularly death or divorce. Update your beneficiaries. If they have changed or are deceased, a court will decide the fate of your funds.

If you have a small business, estate planning is also relevant to the business’s future success. A succession plan helps a future business owner or family member to run the business upon your retirement, incapacitation, or death. An estate planning attorney can help structure inheritance using life insurance policies to balance inheritable assets if one adult child is particularly interested in running the business and others are not.

What is Elder Law?

Focused on later stages of life, elder law anticipates future medical needs, including long-term care, to ensure a senior can live a long, healthy, financially secure life. The goal is to develop a plan to pay for future care that meets their comfort level while preserving as many assets as possible. An elder law attorney knows how to help you qualify for Medicaid or other government benefits while keeping a portion of your assets. In addition, they may support you through Medicaid hearings and appeals.

Elder law attorneys can help protect individuals from elder exploitation or abuse as they become older and caring for themselves becomes difficult. Designating a durable power of attorney (DPOA) for property and financial affairs and another for health and well-being permits representatives to oversee and protect seniors when they are no longer able. DPOAs are documents used in estate planning. Without a power of attorney, elder law and estate planning can assist with guardianship and conservatorship.

What is Life Care Planning?

As an estate grows in value and minor children become adults, it is important to revisit and amend your estate planning documents. Review them regularly as your life evolves, particularly after marriages, births, divorces, deaths, and substantial changes in finances. You may find yourself straddling the needs of children and aging parents. Estate planning shifts as estate planning attorneys consult with you on elder law matters.

Life care planning protects your assets, health, and legacy at every stage of life and addresses common concerns to avoid potential problems. Proactive planning is the key to living your best life, from raising a family to fears of declining health.

We hope you found this article helpful. If you’d like to discuss your particular situation, please don’t hesitate to reach out. Please contact our Cincinnati office by calling us at 513-771-2444 with any questions.

An Overview of the Trustee’s Role

August 29, 2022Filed Under: Estate Planning

Your estate planning journey may still be in the planning stages or you may have just begun to consider where to start. You may be wondering how your assets should be dispersed and who should be responsible for it. A trust can be a great tool in your estate planning tool kit. A properly created trust can give you and your family more options and privacy than a will.

Unlike a will, a trust will help keep your estate from going through an expensive, time-consuming, and public probate process. If you set up a trust, you still create a will, but it becomes a pour-over will, which moves (pours) your assets into your trust. You can choose from different types of trusts, depending on how and when you want your assets dispersed.

Types of Trusts

There are many types of trusts, but they all establish a financial arrangement between three parties: the trustor(s), the trustee(s), and the beneficiary(ies). The person creating the trust is known as the trustor, grantor, or trustmaker. Trusts can be created by more than one person. The trustor chooses one or more persons or entities to serve as the trustee. The trust is for the benefit of one or more beneficiaries, which can be people or entities, such as charities. For some trusts, the trustor, trustee, and beneficiary are the same person.

The Role of a Trustee

The role of a trustee can vary widely, depending on the nature of the trust, wishes of the trustor, and needs of the beneficiaries. Generally speaking, a trustee manages the trust and the assets it holds and disperses income or principal from the trust in accordance with the terms of the trust. A trustor may grant the trustee broad latitude in distributing assets to the beneficiaries or may impose strict guidelines. For example, a trustee may be allowed to make funds available for the general wellbeing and happiness of the beneficiaries or may only be able to disperse funds for educational purposes.

If the trustor has a beneficiary who has special needs and is receiving benefits from Medicaid, Medicare, or another government program, then the trustee needs to make sure they are dispersing assets without disqualifying the beneficiary from the government program. Some trusts have a special or supplemental needs provision in them, and some are wholly for the person with special needs.

In addition to dispersing the funds of a trust, the trustee also pays any taxes that are owed, records expenses and income, and oversees the physical assets owned by the trust, such as real estate. The trustee may be required to report taxes, expenses, and income to the beneficiaries on a scheduled basis. All these duties will be dictated by the language in the trust.

Choosing a Trustee

In most cases, the trustee of a trust can also be a beneficiary of the trust. One notable example of when a beneficiary cannot be the trustee of their trust is with a special needs trust. For the beneficiary of a special needs trust to qualify for government assistance, they cannot have any control over the assets of their trust or how they are managed and dispersed.

When considering who will be the trustee of your trust, choose a person you can rely on to follow the instructions you lay out in the trust. This person can be a reliable family member or friend, or an entity, such as a bank or trust company. For some trusts, such as a living trust, you can be the initial trustee and select someone else to be the trustee if you become incapacitated or when you die.

More than One Trustee

More than one person can serve as trustee at a time. This can be a good option for when beneficiaries are young. For example, a trustor can allow a young beneficiary to serve as a co-trustee of their trust along with an older trustee until a certain age when the beneficiary can serve as sole trustee.

Choosing the trustee of a trust is an important decision. When you are making this decision, consider the purpose of the trust now and in the future. Consider who will be able to best manage the trust’s assets and the beneficiaries’ needs. An experienced estate planning attorney can help you create the trust, or trusts, that will best suit your needs and select the right trustees.

This article offers a summary of aspects of estate planning law. It is not legal advice, and it does not create an attorney-client relationship. For legal advice, you should contact an attorney. We hope you found this article helpful. If you have questions or would like to discuss your personal situation, please don’t hesitate to contact us at 513-771-2444.