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Top 5 Reasons Why Having Just a Will in Ohio is Simply Not Enough

Written on November 4, 2011 by Thom Cooper in Estate Planning, Planning, Trust

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By Attorney Dan Vu

A Will does not avoid the unnecessary cost and hassle of probate.
Although commonly misunderstood, the basic fact is that a Will is not in effect until the Probate Court admits it. It does not allow your estate to avoid Probate Court. Instead, wills are instructions to a Probate Court.
A Will does not protect the inheritance you leave to your beneficiaries from a future creditor or divorce.
Yes, believe it or not, many states, including Ohio, allow the creation of Trusts that can protect the inheritance you leave behind.
A Will does not protect your assets from the catastrophic cost of long term care.
A nursing home stay can wipe out the inheritance you meant to leave to your beneficiaries. Yes, you can also protect assets from this cost using specially created Trusts.
A Will does not allow for someone to act on your behalf while you are alive but need help.
A Will appoints Executors who can administer your estate at death, but what if you need someone to act on your behalf while you are living but lack the mental or physical capacity to manage your affairs? A properly drafted Trust and Power of Attorney can avoid the cost, hassle, and restrictions of a court appointed guardian.
A Will does not take advantage of potential estate tax savings.
The Federal and Ohio Estate Tax (or Death Tax) laws are always changing. Of course the estate tax law today does not matter, it is the estate tax law at the date of your death that really matters. The history on this subject has shown us that Trusts can be constructed to deal with the changes in law and can take advantage of serious estate tax savings that would not otherwise be available.

Retirement Funds Remain Americans’ Biggest Financial Worry

Written on October 3, 2011 by Thom Cooper in Planning

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By Julian Guilfoyle

The Gallup Organization, famous for its’ polls measuring American’s views on one subject or another, released its latest poll in June measuring Americans’ worries regarding eight financial matters. Gallup has tracked these eight measurements since 2001 and not surprisingly, three concerns have consistently remained at the top. Those issues are:

not having enough money for retirement
not being able to pay medical costs for a serious illness/accident
not being able to maintain their respective standard of living

Elizabeth Mendes, the author of the report writes, “[worry] about not being able to maintain their [Americans] current standard of living is the highest on record”.

Perhaps due in large part to their concern over the viability of government programs, Americans between the ages of 30 and 49 were the most concerned when asked about funding their retirement. More than three quarters of respondents who fit this criteria were “Very/Moderately worried” when asked if they were worried about not having enough money for retirement. In addition, seven out of ten respondents between 50 and 65 shared similar concerns. This may also explain why Gallup also found “non-retirees increasingly likely to believe they will have to fund their own retirement”.

Read the complete article.

Figuring Equations That Retirement Calculators Don’t Calculate

Written on September 30, 2011 by Thom Cooper in Planning

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By Julian Guilfoyle

“The question isn’t at what age I want to retire, it’s at what income.”

-George Foreman

For those who would like to get a gauge of where they stand in retirement planning, free online calculators are available at the ready online. In an article titled “6 Things Retirement Calculators Get Wrong” author Mark Miller cites a recent study by the Society of Actuaries that concluded among other findings, “many popular calculators have serious flaws”. The report looked into online calculators created by institutions ranging from financial firms like Fidelity and MetLife to government agencies like the U.S. Department of Labor. While the article lists six areas where these calculators fall short, I found several especially troublesome.

Social Security Projections

John Turner, economist and co-author of the report has two fundamental issues with the way the calculators project social security benefits. He critiques, “They [the online tools] don’t ask you to consider a lot of important variables” and that the calculators “low-ball” the increases recipients receive for the annual cost-of-living adjustment (COLA).

My Thoughts

Depending where one is on the path to retirement, relying too heavily on social security, especially in its’ present form, is shortsighted at best. For baby boomers I’m not so sure low-balling future increases is a bad idea either, especially considering social security recipients have not received a COLA since January of 2009.

Life Expectancy

Kirk Kreikemeier, a financial advisor who served as an advisor for the study remarks, “The probability that one [spouse] will live beyond the average is pretty high”. In addition, when these sites automatically input life expectancy figures, variables such as race and genetics, which are crucial to measuring longevity, are ignored.

My Thoughts

While no one has a crystal ball to determine when the end will come, it’s obviously better to be safe than sorry. Perfect retirement planning that does not take into account the advances in medicine and increases in life expectancy will turn the potential of an inheritance into a shortfall of assets.

Spouses

The article states, “Few of the free calculators helped couples forecast retirement income for a surviving spouse”. The author continues, “When the calculators recommended annuities for retirement income (most didn’t), none suggested buying one with a survivor’s benefit.”

My Thoughts

The failure to include preparations for the surviving spouse can have severe repercussions on several fronts. If the spouse is not left with adequate income, they will need to access assets earlier than planned. If these assets are converted into income streams, potential for growth may be sacrificed as well.

Retirement is a cause of concern for many Americans and rightly so. At arguably their most vulnerable stage in life, when many are living off fixed incomes, key missteps in planning can be financially devastating. Get your legal and financial houses in order and enjoy the ride into the sunset.

Family Photos

Written on September 12, 2011 by Thom Cooper in Photography, Planning

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By Attorney Mitch Adel

A few weeks ago I read an article about how families regretted not asking their now-deceased relatives more about their family history. The article went on to name ways for families to document their legacies by taking pictures and creating videos or scrapbooks, so even after the family member passes the family and friends can share memories through the documented materials.

Myself, I have never been much of a photographer. If I took pictures, it would be of landmarks or landscapes of places I visited that I would want to forever remember. The goal was to one day frame them and hang them on the wall (which I never did). Following a trip, I would show the pictures to my family, in particular my father, who would get so aggravated that there were no people in my pictures. I never really understood his frustration, until now.

This past weekend I attended a close friend’s wedding. At the rehearsal dinner, the guests were shown a slide show of pictures of the bride and groom’s life prior to meeting one another and since. To me the most touching moments occurred when pictures were shown of the groom’s family, including pictures of his father, a man I considered an uncle and probably the reason I became a lawyer, who unfortunately passed away a few years ago, at the young age of 61 of lung cancer. As it was very difficult for me to hold back the tears, I imagine more than half the attendees felt the same way. With every picture more laughter, more memories and more tears. I was deeply moved by the show and thankful that Uncle Murray’s family took so many pictures while he was alive.

As an Elder Law Attorney in Ohio, many of the blogs I have written in the past concern Medicaid or nursing home planning, estate recovery, veterans benefits or estate planning, today my message is more personal, I urge each of you to take more pictures, include people, document your life with your loved ones, as you never know when that is all you will have.

The Housing Bust and Senior Health Care

Written on August 29, 2011 by Thom Cooper in Estate Planning, Nursing Home Planning, Planning

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By Attorney Nathan Simpson

As fallout from the housing bust continues, many seniors are beginning to feel the impact.

With rising medical costs, an increasing number of seniors are finding themselves unable to come up with the financial resources to pay for long-term care. In better financial times, many people saw their homes as a sound investment that would eventually be sold in order to raise money later in life. With the decline of the real estate market, many of these seniors who otherwise would have sold their home are finding it difficult or impossible to do so. This has left them unable to secure much needed resources to pay for vital services such as In-Home Care, Assisted Living, or Nursing Homes.

However, by working with an Elder Law Attorney, it may be possible to secure the resources you or a loved one need to pay for their medical needs, without selling the family home. Additionally, there may be ways to protect the family home and save it for the enjoyment of your children and grandchildren.

If you are interested in receiving needed medical services and protecting your family’s assets, please call the Elder Law Attorneys at Cooper, Adel & Associates.

Burdens on Family Caregivers

Written on July 28, 2011 by Thom Cooper in Health, Planning

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By Attorney Nathan Simpson

In 2009, over 60 million Americans provided care to an adult who is limited in their daily activities. These caregivers assisted relatives or friends often for little to no pay. On average, family caregivers spent 18.4 hours a week caring for their loved one, doing tasks such as paying bills, cooking meals, and providing transportation. This unpaid work can cause a significant hardship on the caregiver. According to an AARP study, 27 percent of caregivers report a moderate to high degree of financial strain as a result of providing care.

If you or a loved one is providing unpaid care to a relative, speak with an Elder Law attorney like the attorneys from Cooper, Adel, and Associates. There may be programs and resources, such as Veterans Benefits and Medicaid, that can help ease the financial burdens of being a family caregiver.

Source

One More Reason.. That you need to take time to develop a plan to protect your assets

Written on July 21, 2011 by Thom Cooper in Planning

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By Roy Whited

From the Ohio Department of Insurance website …

NOTE: This is the first in a series of upcoming columns by Lt. Gov. Mary Taylor focused on the negative consequences and costly impact to Ohioans of President Obama’s Patient Protection and Affordable Care Act. The President’s Healthcare Plan is Bad fro Ohio and our State Insurance Market.

By Mary Taylor

Ohio Lt. Gov. and Insurance Director

The Patient Protection and Affordable Care Act would be a great title if it actually protected patients or made healthcare more affordable. The trouble is President Obama’s health insurance plan does neither. How do I know? In the six months since Gov. John R. Kasich appointed me the Director of the Department of Insurance and advocate for Ohio insurance consumers, I’ve spent the bulk of my time defending Ohioans from- of all places- the federal government. I’ve quickly learned that the President’s job-killing healthcare plan is bad for consumers, bad for Ohio and bad for our state insurance market. And there is no way to avoid the looming higher healthcare insurance premiums- for everyone! That’s more money coming out of your pocket to pay for an already broken healthcare system.

Again, this is one more reason that you need to take time to develop a plan to protect your assets. For more information visit insurance.ohio.gov and you can read the article in it’s entirety. If you are worried about losing your money and your home to the cost of the nursing home, assisted living or home health care call our office and schedule a free consultation. You can learn first hand how and what can be done to protect your life’s savings. Call today 800-798-5297.

Estate Planning in Good Times and Bad

Written on July 20, 2011 by Thom Cooper in Aging, Estate Planning, Planning

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By Robin Crouch

With growing numbers of baby boomers entering retirement age and thousands of US soldiers returning home, there is a mounting need for long-term planning for heath and continuing care benefits.

Our clients depend on us to help them ease their tax burdens, preserve their assets and safeguard their futures. The cost of long-term care can consume a person’s assets if an effective estate plan is not in place.

Keeping up with critical developments in elder law and providing real solutions to the unique problems veterans face can be difficult. Through continuing education and experience, our Attorneys and staff offer the newest and most effective life plan procedures and strategies for qualifying clients for benefits while preserving their wealth.

“The consequences of today are determined by the actions of the past. To change your future, alter your decisions today.”~ Anonymous

Don’t be disappointed five years from now by the things you didn’t do today, call Cooper, Adel & Associates to map out a guide to your Life Plan.

Hoping Retirement Doesn’t Become a Joke

Written on July 14, 2011 by Thom Cooper in Aging, Asset Protection, Estate Planning, Planning

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By Julian Guilfoyle

“A man is known by the company that keeps him on after retirement age.” Anon

Soon-to-be retirees have a plight worth empathizing. The last ten years has brought them two devastating recessions, the first was marked by a national tragedy, the latter a housing crisis that threatened their front door itself. All too often they heard, “ It’s a recession when your neighbor loses his job; it’s a depression when you lose yours”. Translated for today it must be, it’s a “bubble” when your neighbor loses their home, it’s a crisis when you lose yours.

I believe the housing crisis has further reaching implications that have yet to be seen. For instance, imagine a soon-to-be-retiree who before the crisis invested a portion of their retirement to pay off their mortgage. I know why they chose that route; it had always been a sound strategy to invest in your principal residence. The thought was, at any point if one wished to downsize in retirement, they could, then reap the rewards of their homes’ gain in value. At the very least, they thought, when we pass on we will have left an inheritance for our children. Little could anyone realize that a few short years later their homes would be worth less than the mortgage they paid off. It doesn’t end there. As the crisis squeezed the value of their homes, the shock it caused to the market sent their IRA or other retirement vehicle back into the red. Little do they realize that if either they or their spouse require public benefits because of a health care event as they age, all of their sacrifice could be lost to Ohio’s estate recovery program.

As the baby boomers retire, at a rate of ten thousand per day for the next nineteen years no less, it’s no secret that across our nation purses are tightening. Retirees have watched their parents enjoy the stability of provided by Medicare and Social Security. Now like the rest of us, they wonder if they will be able to depend on those entitlements as well. The rules of the game have been changing too much as of late making it more difficult to make sound decisions.

Between long-term care, protecting and preserving their income and assets, and avoiding over-taxation, soon-to-be-retirees have much to think about. Call us for a free consultation to discuss your situation: In a DIY world, don’t stay a soon-to-be uninformed retiree, get your ducks in a row and become an informed retiree.

Remember to Take Care of Yourself…

Written on July 12, 2011 by Thom Cooper in Health, Planning

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By Attorney Mitch Adel

So many times we as Attorneys blog about the need to seek “Expert Help” when dealing with emotional and difficult issues that surround long term care for family members, but as the article from USA Weekend magazine points out, in addition to preparing for your loved one, please make sure that you are looking out for yourself.

In today’s world with the advancements in medicine and ever changing laws, it is extremely important to do your homework when it comes to preparing for long term care. To achieve this goal you should make sure that your family’s planning includes seeking advice for the best care available and most accommodating facilities, and you should always speak with qualified elder law and financial personnel.

Let me stress that in addition to your research and planning efforts, don’t forget to take care of yourself. Failing to take of your needs can lead to burn out, and in extreme cases, your own health problems. This is as much a problem for the spouse of an ill elder as it is for their children. Rely on your friends, family and professionals, for your mental and health stability, I hope you will not go about this solo.