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A Cautionary Tale of DIY Estate Planning

Written on May 1, 2013 by Cooper, Adel & Associates in Planning, Probate

By Attorney Ted Brown

I recently came across another example of self-help estate planning gone drastically wrong. In this case, Mom was in her 80′s and owned a family farm and a life-savings of conservative investments. She wanted her estate to be divided equally among her four children but wanted to make sure her two sons, who were farmers, got the farm.

So, to keep things simple, she deeded the farm to her two sons, and created a “simple” will leaving everything else (the cash investments) to her two daughters. She used a national legal self-help service to get templates of the necessary documents and was satisfied she had done everything she needed to do while avoiding the costly fees of an estate planning attorney.

However, when Mom passed away things were not nearly as simple as she had hoped. The will that she had prepared was not valid because it did not comply with the complexities of Ohio law. Therefore, her plan to divide the investments among her daughters failed. Not only did her assets have to go through the hassle and expense of probate, but since there was no valid will, her assets were divided according to state law.

This gave the investments equally among all four children. Since she had already given the farm to her sons, they ended up with a larger share and were under no obligation to even things out as mom had intended. However, it turned out that they would need the extra cash to cover the large capital gains tax burden that was created when mom gifted the farm to them while she was alive.

I see cases like this all too often. Estate planning is one of the most important decisions you will make and it is always best to consult a professional who specializes in that area. The legal fee paid to ensure that your estate is in order, up to date with state law and tailored to the specifics of your family will be far less than the fee associated with sorting out a flawed do-it-yourself strategy. Estate planning is like anything else: you get what you pay for.

Elder Law Tips & News

Written on April 30, 2013 by Cooper, Adel & Associates in Elder Law Tips & News

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Have you looked at your Social Security account lately? Set up a “My Social Security” account on-line with the Social Security Administrationto see benefits you would receive if you start to draw benefits at age 62, 67 or 70. But, there’s more if you already receive benefits. You can use My Social Security to obtain benefit verification letters, to change your address or to change your direct deposit information.

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

Elder Law Tips & News

Written on April 29, 2013 by Cooper, Adel & Associates in Elder Law Tips & News

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If you are thinking about getting married again later in life, you have a lot of issues to consider. Think about this one: if your new spouse becomes ill and spends time in a nursing home, you will be responsible for the bill – even if you have a prenuptial agreement (at least in Ohio)! If possible, consider seeing your elder law attorney before you tie the knot.

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

Can I maintain separate assets in a joint living trust?

Written on April 28, 2013 by Cooper, Adel & Associates in Estate Planning, Q&A, Trust

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Answer: Yes. Our joint trust provides that assets may be held by either spouse individually as their separate trust property, or as joint trust property. It is your choice when you set up your trust.

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

Is it difficult to change my living trust, and when would I want to make a change to my living trust?

Written on April 27, 2013 by Cooper, Adel & Associates in Estate Planning, Q&A, Trust

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Answer: No. It is simple to change or amend your living trust. Typically there are two types of changes that you might want to make to your living trust. The first type of change would involve making a minor change to your plan, such as a specific gift, change of beneficiary, or a change of successor trustee. Our office provides sample amendment forms as a part of your trust documents to assist you in making such amendments. You can also make minor changes by crossing out and changing any item and then having both Settlors (i.e. creators) initial and date the same. The second type of change involves more complex amendments where your trust would need to be amended as a result of serious health changes, family problems, dramatic change of assets, or to keep current with any changes in laws. This type of amendment should typically be made only after seeking professional advice. In the event of complex changes required, you should contact our office and we will be happy to review your trust and assist you in making any necessary changes.

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

Thinking Long Term: Planning key to navigating new long-term care insurance costs

Written on April 26, 2013 by Cooper, Adel & Associates in In The News

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By Mitch Adel

Long-term care insurance is one option to help pay for the costs associated with caring for individuals who need help with the activities of daily living such as bathing, eating and using the bathroom. Most long-term care insurance policies today pay for care at home, in assisted living or in a nursing home. Planning to cover this type of care is a critically important piece of the estate planning puzzle for many families and individuals due to the rising costs for care. Unfortunately, costs are increasing substantially for insurance companies as well, leaving seniors with a shifting landscape as they attempt to obtain long-term care insurance for themselves.

A recent article by Jane Gross in the New York Times outlined some of the most significant developments in. long term care insurance. Gross points out that rising costs have prompted some national insurers to conclude that the current long-term care insurance model is unsustainable and many have chosen to stop writing new policies altogether. Those that still offer long-term care products are working to “raise premiums, tighten eligibility requirements and reduce key benefits.”

Perhaps most significant development of all is that insurers are raising rates for women. Beginning in April, many insurers are hiking rates as much as 40% above the equivalent costs for men. With $2 out of every $3 paid out by these policies going to women, and considering that seven out of ten nursing home residents are female, insurance companies are making a strategic shift in their pricing strategies.

What does this mean for you and your family? In addition to the higher premiums and leaner benefits, insurers are already demanding stricter and more comprehensive underwriting policies and procedures, including more invasive medical tests, such as blood tests, and a stricter review of your medical history. While phone interviews were sufficient in the past, in-person meetings and interviews are now becoming standard procedure.

These changes make it even more critical to review your plan with your team of legal and financial advisors and ensure that assets are protected from potential long-term care costs. Many people are unaware that Medicare covers virtually no long-term care expenses, leaving the uninsured vulnerable to the stratospheric costs of care at home or in a facility. But with the landscape shifting beneath your feet, the time is now to explore your options and get prepared.

From a cost-benefit standpoint, purchasing long-term insurance still makes sense for those who are healthy now and those who can afford to pay the premiums.There is a real incentive to act sooner rather than later because the price of long-term care insurance goes up dramatically as you age. As a matter of fact, waiting can cost you thousands of dollars more… or worse, you may not be able to qualify if your health changes.

If you already own a long-term care policy, you may be in a good place, but understand that many seniors, particularly women, will almost certainly need to find alternatives as their premiums for long-term care insurance will likely increase. Further, if you have a health conditions such as diabetes, mobility problems or Parkinson’s, it can mean that you are unable to purchase long-term care insurance at any price.

What is a good course of action that you should consider right now? Work with an elder law attorney who can make you aware of options to plan and pay for care at home or in a facility.These may include planning in advance to qualify for public benefits and/or veteran’s benefits in addition to potentially purchasing long-term care insurance.

When it comes to your health and wellbeing, it pays—literally— to think long term.

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

Travel Ideas For Active Seniors

Written on April 26, 2013 by Cooper, Adel & Associates in Aging

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by Janet Fickle

Seniors who have gotten to the day that a daily job is a thing of the past now have time to travel.

Traveling for seniors can be a great way to relax and enjoy leisure time. People who have a generous nest egg can travel to many far away places. Those who have limited funds can find ways to travel to less expensive places closer to home.

Theme parks provide many activities for older travelers. Although, with theme parks there is a lot of walking, many provide wheelchairs or scooters. Theme parks are great family vacation destinations.

Beach resorts can be a perfect trip for seniors to enjoy the upmost in relaxation. For those who have passports, the choices are endless. For those who choose to stay closer to home, there are many choices on both coasts.

My favorite is cruising. Cruising is preferred by the 50-plus set because of the convenience of an all inclusive package and transportation all in one. Cruises offer many activities geared to the silver sneaker set. Meals, entertainment, sight-seeing are all self-contained on the cruise ship. With many different price options and time frames, it can be affordable to many seniors.

Another form of travel would be guided tours backed by reputable companies. Train or bus travel with many attractions visited along the way.

RV traveling is another favorite way many seniors see the country. RV’s can be rented so it isn’t necessary to buy one. You can set your own pace. Beaches to national parks have hook-up areas and amenities.

Day trips are wonderful for those of us with limited funds. Take along friends to share the expenses and you have any number of choices to visit great places within two or three hours of your home.

Motorcycles are another form of travel. Many seniors love riding their cycles on cross country trips.

With more free time and fewer restrictions that great travel adventure is just around the corner.

However, before you plan your next adventure, you should plan for your financial future. Call Cooper, Adel and Associates at 1-800-798-5297 to schedule a free consultation at one of our four offices in Ohio. Get your estate planning and your finances in order to insure that your family will be taken care of in the future.

Sources: 4-1-2013 Mt. Vernon News- senior Lifestyles- Brandpoint.

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

It’s Your Funeral: The costs and consequences of funeral-related expenses and tips to protect your family at your death

Written on April 25, 2013 by Cooper, Adel & Associates in Aging, Asset Protection, In The News

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By Mitch Adel

One of the tragic complications that often arise when a loved one passes away is that families can be faced with a wide range of surprisingly costly short-term expenses at a time when they are least equipped (emotionally or financially) to handle them. The average cost of a funeral has increased to nearly $9,000 in today’s market, and it is quite common for the price tag to exceed $10,000.

The need for immediate cash to cover these unwelcome but necessary funeral-related expenses is prompting many families and individuals to consider pre-planning and pre-paying for funerals or purchasing pre-need insurance policies. While these options are increasingly popular, seniors should review their options within the context of a comprehensive estate plan. Of course, it is prudent to discuss these options with family members. Should you plan now or can you wait until you are “older”? Think about this: if you become incompetent or die unexpectedly, you will not be able to make your wishes known to those you love.

Plan ahead

Funeral planning should be part of a comprehensive estate plan. Elder law attorneys are experienced at counseling clients on such

matters and can help you clearly define how you want to carry out your last wishes. Your attorney may suggest that you write down your wishes in a legal document called a testamentum mortis that clearly states, for instance, whether you will be buried or cremat- ed, whether you want flowers or would prefer contributions to a charity, whether you want calling hours or a small, private service. If your family, like many, is reluctant to discuss your funeral plan, it can make it more difficult for them at your death.The written plan makes sure that your family knows what is important to you. It is your preferences in writing.

Once you’ve established your preferred funeral arrangements, it’s time to look at how to pay for your funeral options. You will need to evaluate how much you are willing to spend to fulfill your wishes. From there, your estate planning team can recommend solutions that work well with your overall plan. This may include writing a burial contract, creating a dedicated savings account or designating part of an existing trust to cover anticipated costs. Beyond these initial steps, there are a multitude of choices available, including funeral insurance that is typically offered by an insurance company and prepayment options offered by funeral homes, but not all are created equal. Funeral insurance plans typically allow your family the flexibility to determine which funeral home makes sense at the time of your death, rather than locking you in to a specific home.

Do your homework

Your estate planning team should do the basic research for you so that you have a range of options, but there are still important questions to ask before settling on a particular path or product.

If a pre-paid funeral plan is recommended, make sure you understand the risks. While these plans are increasingly popular, on occasion they can lead to an unfortunate surprise if a funeral home is mismanaged, goes out of business, consolidates with a national brand or enters into bankruptcy.While the vast majority of funeral

home operators are professional and trustworthy, your options can be limited in these cases. You should also consider what happens if you move out of state for warmer weather or to live with a child.What happens to the money you invested with a specific funeral home?

If funeral insurance is recommended, you should make sure you understand what happens at your death. What decisions will your family still have to make? How will your family get the money to the funeral home they choose? Are there any delays or other complica- tions they must face?

The bottom line is that planning to help your family deal with funeral expenses is a critical piece of a comprehensive estate plan. Protectingyourfamilyinaresponsiblewayfromcostlyfuneral-related expenses involves working closely with a qualified team of estate and

financial experts.Your team should understand your financial circum- stances and priorities so that they can advise you as to the pros and cons of the available plans.

However the finances are handled, make as many decisions as possible up-front to ease the burden on your family.

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

Elder Law Tips & News

Written on April 24, 2013 by Cooper, Adel & Associates in Elder Law Tips & News

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According to Kiplinger, saving tax-deferred can boot your nest egg. A traditional IRA is one way to build your savings, but there are a lot of rules. For instance, there is an annual cap on what you can contribute ($5,500 in 2013), but if you are 50 or older, you can contribute an additional $1,000. If you try to contribute more, the IRS may charge a 6% excessive-contribution penalty!

10 Things You Must Know About Traditional IRAs

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

What to Say In Your Goodbye Letter to Your Loved Ones

Written on April 23, 2013 by Cooper, Adel & Associates in In The News

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It’s important to leave a will, but many people are finding it’s just as important to leave a letter to their loved ones. It, like anything else, has an art to it. Here’s how to craft your letter to leave a legacy that will be a good final reflection of you.

A will covers legal bases, but most likely there are practical questions that are not addressed in the will, which isn’t meant to be a document to share final thoughts you may want to leave for family or friends. For example, a will includes broad guide- lines about who you want to receive your personal property,

“I leave my personal property to my children to divide among themselves as they mutually agree,” explains Barry Taylor, a certified financial planner with Integral Financial Solutions. However, he says if they don’t agree you may cause unintended conflict among your children. In a letter though, you can be specific not only about who gets what but why, if you wish. It’s intensely personal.

A letter of final instruction is a non-legally binding document that provides guidance to your family about your after-death wishes that are normally not part of a legal document, explains Mitch Adel, senior partner with the elder law firm of Cooper, Adel and Associates. Some have called the letter the “missing link” in estate planning. “Your letter can be a valuable part of the communication process with those you leave behind, letting them know vital information and clarifying your inten- tions at what can be a difficult and stressful time,” says Adel.

Increasingly, people are using such tools. “There is definitely an increase with this kind of letter because the Baby Boom- ers are getting older,” says David Harris, CEO of Assets in Order, and creator of the Legacy Lockbox, an online service, (www.assetsinorder.com).

The big question though, is what to say, and what not to say?

No detail is too small. “Think of it as a guide – a roadmap to help your family through a tough process,” says Adel. The let- ter can include names and addresses of friends who should be contacted, your wishes about funeral arrangements, bank and computer passwords and PIN numbers and even the loca- tion of other important documents such as insurance policies and deeds, including relevant financial information can help alleviate any unnecessary worries for your survivors from the get-go, says Adel.

Know that there is no right or wrong answer to what’s appro- priate or not, much depends on you and your relationships. The trend is typically to have a hand written letter. It may be left with the attorney for an old-fashioned formal reading of the will ceremony, other times the letter may be left with the individual’s important documents in their home, explains George Cassar, a shareholder specializing in estate law with the firm of Maddin, Hauser, Wartell, Roth & Heller.

You want to be sure however, that the letter ends up in the right hands. Adel says, “Giving a copy to your attorney and your estate planning team means that your wishes won’t get lost in the shuffle. The last thing you want is for your family to have to guess at your intentions.”

He’s seen clients prefer to leave separate letters of notes to each individual recipient while some will leave one general letter. Include whatever is meaningful to you – whether it’s outlin- ing instructions to keep family keepsakes safe, or stating how important that person has been to you, says Harris.

As part of the Legacy Lockbox there is a “My Wishes” section, which allows members to write notes and include instructions for their loved ones to receive email after the account holder

passes. The notes can contain anything from a heartfelt letter of goodbye to straightforward pet directives for continued pet care. Only the specified individual gets the information. Under the “Digital Assets” section, the account holder can also upload a video for loved ones to view after they’re gone.

What you don’t want to do, says Cassar, “Is trying to have the final word. The letter would not be a good place to air grievances or remind recipients how bad they treated you. A simple I love you message with a memorable goodbye would be the most appropriate.”

Some new trends include leaving a video of the individual or the family where the individual themselves is recording a video message or even an audio message. “I am aware of at least one company that has taken it a step further and is providing QR codes that can be engraved on an individual’s headstone or tombstone so that visitors to their grave can scan the QR code and be taken to a link that provides either an audio message or video for a website,” says Cassar.

Do review your letter periodically and keep it in a safe place that is easily accessible says Julie Cook, a certified financial advisor with Savant Capital Management.

While a letter serves a purpose, it does not replace a com- prehensive plan, says Adel. “It’s not a substitute for good planning.” It is though, a good way to say goodbye.

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.