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Recent Blog Posts
Estate Planning Wishes: Have You Had "The Talk" with Your Parents?
Families may find it uncomfortable discussing estate planning wishes with their loved ones. No one likes to consider the day when his or her parents will no longer be around. However, not discussing one's estate planning can have serious consequences. It is an all-too-common scenario when a person passes away—or becomes seriously incapacitated—without ever making important legal decisions.
If your elderly parents have not addressed these decisions, it is important to sit down with them and make plans to consult with an estate planning attorney to ensure their wishes are carried out. This is not always easy since parents often feel that these matters are private ones, even with their own children. They may also not want to make these plans because it reminds them of their own mortality. Yet keeping these factors in mind when approaching parents can help make the conversation easier.
Estate Planning and Prenuptial Agreements
When people hear the words prenuptial agreement, they usually think of beginnings—the beginning of a new life together. Estate planning usually brings to mind then end—the end of life. However, these two phrases should really go hand-in-hand, especially when there is a family business involved.
It can be devastating to parents who have worked hard all of their lives to build up the family business to leave to their adult child, only to see half—or more—of that business lost to a child's spouse in a messy divorce.
A prenuptial agreement can be one of the strongest legal documents in estate planning for protecting a family business if a marriage ends in divorce. A prenuptial agreement is essentially a binding contract between spouses which clearly spells out how a marital estate will be divided in the event of divorce. An agreement can also detail what will happen to an estate in the event of a spouse's death.
Little Things Can Cause the Biggest Headaches in Estate Planning
Couples who have been married for a long time often fall into a routine regarding how the marital responsibilities are divided. This routine may also apply to financial responsibilities. One spouse may handle all of the investment responsibilities and the other may handle the household financial responsibilities such as monthly bill paying and checkbook balancing. Quite often, however, when one spouse dies unexpectedly and there is no written documentation and record-keeping, it can turn into a nightmare for the surviving spouse.
When a spouse passes, and he or she handled all investments, the surviving spouse may suddenly find him or herself unsure of what or where those investments, as well as other bank accounts, are located. He or she may also have issues gaining access to those accounts.
Illinois Estate Planning: Reasons Not to Procrastinate
Many of us are familiar with the Benjamin Franklin quote, "In this world nothing can be said to be certain, except death and taxes." Yet those two topics—death and taxes—are not ones people generally like to think about. This could be why more than half of us do not have even the most basic of estate planning documents in place. In fact, according to financial planners, there may be several reasons why people put off and delay planning for what truly is the inevitable.
Not Enough Time
Many people say they do not have the time for estate planning, claiming they are just too busy. However, legal advisors and financial planners stress that this is one area that should be a priority and everyone needs to make the time. It is important to figure out who should receive what items of your estate in order to avoid possible fighting among family members when you are gone.
Keeping Living Wills Current
A living will is a document decided before death that prescribes the medical attention you choose in the event that you are unable to do so yourself. According to the Illinois General Assembly, the Living Will Act was passed to ensure that every state resident had the fundamental right to control the decisions related to his or her own medical care. This means that these decisions are not left to chance or to family in the event that sickness or other incapacitating factor makes the person unable to decide for himself.
Proponents of living wills say that these are matters of patient rights—physicians are not able to withhold or withdraw death-delaying procedures if a patient has signed a living will. For a living will to be valid, it needs to be signed by the patient (before he or she experienced the debilitating conditions) in the presence of a witness. The death-delaying procedures can include, but are not limited to:
Tips for Planning a Well-Deserved Retirement
Data derived from the U.S. Census Bureau and recently reported by the Population Reference Bureau, as of mid-2014, shows that the baby boomer generation stands at 76.4 million strong.
For those born between 1946 through 1961, many are now reaching traditional retirement age and although hesitant to fully retire are still expected to have a significant effect on Social Security, Medicare and Medicaid as retirement is being redefined.
The American Association of Retired People (AARP) estimates that 79 percent of all baby boomers plan on incorporating some form of employment into their retirement plans. At the golden age of 65, many boomers are simply deciding to continue working full-time while others are opting to work part-time or change career objectives. For those choosing traditional retirement, opportunities for volunteering or participating in community service are popular.
Health Care Wishes: The Importance of Putting it in Writing
As much as we may not like to think about it, each birthday means we are getting older, and one day we will no longer be with our loved ones. But before that day comes, illness or injury may prevent us from expressing our health care wishes to our families, specifically in regards to what we want or do not want when it comes to medical treatment. Hence, it is important to take care of these issues before the need actually arises.
The following are suggested steps to take when it comes to planning for your future. A qualified estate planning attorney can help guide you through each step.
- Should you become incapacitated, make sure you have advance directives in place so your family and medical providers know what your wishes are for medical treatment. A living will outlines exactly what medical care you wish to be taken and which care you would refuse. Medical treatments that you may want to address in your living will include antibiotics and other antiviral medications; comfort care; dialysis; mechanical ventilation; resuscitation; and tube feeding.
Do-it-Yourself Estate Planning Can be an Expensive Mistake
Illinois residents work hard so they can enjoy the fruits of their labor once they retire and so they are able to provide for their families after they have passed. They want to ensure that even when they are no longer here, their loved ones have the financial assets to improve their quality of life. However, several costly estate planning mistakes can be made, and they can seriously impact an estate plan.
One of the most common estate planning errors is the belief that it can be done without the assistance of a qualified estate planning attorney. There are a multitude of online companies that offer estate planning forms for people to download and prepare themselves. However, the problem with these "do-it-yourself" documents is that there are specific laws, in each state, that govern estate planning. Therefore, if a person is not cognizant of the details of these laws, the simple "do-it-yourself" will or trust can end up being very costly—more costly than what an attorney would have charged to do it correctly to begin with. This is especially true when drawing up trusts, which many people utilize in order to help alleviate the tax implications that can sometimes come along with inheriting money.
Mapping Out Your Financial Future
Estate planning and retirement planning tend to go hand in hand. Having a solid financial plan in place for your retirement also enables you to form certain elements of your estate plan, such as special needs trusts and living wills.
Financial advisors note key milestones that every person should be aware of when it comes to retirement planning. At each milestone, it is suggested that you take stock in what you have in place regarding your retirement funds and analyze any steps you need to take to remain on target.
Estate Planning Milestones
50 years old: When you reach this milestone, you are allowed to make what is referred to as "catch-up contributions" to both your individual retirement account as well as to your 401(k) account. Last year, the catch-up contribution for retirement accounts was $1,000, and for 401(k)s it was $5,500.
The Revocable Trust: A Popular Alternative to the Traditional Will
The American Association of Retired People, or AARP, has been instrumental in serving as an informative advocate for those near retirement age since 1958. The brainchild of retired high school principal, Dr. Ethel Percy Andrus, AARP was organized to promote a productive aging philosophy by keeping those broaching retirement abreast of emerging trends and practices. In fact, an AARP bulletin recently discussed the growing trend of choosing a revocable trust over a will.
To determine whether a trust or a will is in one's best interest, the first step is to speak with both an experienced estate planning attorney and trusted financial advisor. However, before consulting with either professional, AARP offers the following information as to why establishing a revocable trust may work for you.
