How do you choose a life insurance policy? While purchasing life insurance may seem pretty straightforward, it’s actually quite complex, especially with so many different types available.In order to offer some clarity on the different types of policies out there, we’ve broken down the most popular kinds of life insurance here and discussed the pros and cons that come with each one.

Term Life Insurance

Term life insurance is the simplest—and typically least expensive—type of coverage. Term policies are purchased for a set period of time (the term), and if you die during that time, your beneficiary is paid the death benefit. Terms can vary widely—10, 15, 25, 30 years or longer—and if it’s a Level Term policy, the premium and death benefit remain the same throughout the duration. If you survive the term and want to retain coverage, you must re-qualify for a policy at your new age and health status.In addition to Level Term, other variations include “Annual Renewable Term,” in which the death benefit is unchanged throughout the term, but the insurance is renewed annually, often with an increase in premiums. With a “Decreasing Term” policy, the death benefits decrease each year until they reach zero, but the premium remains the same. Decreasing Term life insurance is often used to cover a mortgage, student loan, or other long-term debt, so the policy expires at the time the mortgage/debt is paid off.

Whole Life Insurance

Whole life, or permanent, insurance pays a death benefit whenever you die, no matter how long you live. With a whole life policy, both the death benefit and premium stay the same for your entire life span. However, depending on when you purchase coverage, the premium can vary widely depending on how much the policy’s death benefit is worth. So, for example, purchasing whole life in your senior years can be extremely expensive and possibly not even available at all. What’s more, your whole life policy premiums will be much higher than your term life insurance premiums because the insurance company knows the policy will pay out when you die, no matter how long you live.

Indeed, the premium for whole life policies can be among the most costly of all types of life insurance coverage, including similar types of “permanent” policies discussed below. This is simply the price paid for the guaranteed death benefit and a level premium.

Universal Life Insurance

Universal life is a variation on whole life—it covers you for your entire lifespan, but also contains a “cash-value” component. Rather than putting 100% of your premium toward your death benefit, part of your premium is put into a separate cash-value account that earns interest and is tax-deferred.The insurance company invests the cash-value funds in various investment vehicles of its choice, and provided the market performs well, you can access those extra funds for things like paying the policy’s premiums, paying off debt, or supplementing your later-in-life fixed income. Some insurance companies will even let you take tax-free loans against the policy’s cash value.

That said, the cash-value account is set at an interest rate that can adjust to reflect the market’s current rates, so if the interest rate of the cash value account decreases to the minimum rate, your premium would need to increase to offset the account’s reduced value.While universal life premiums are typically more costly than term policies, universal life also allows you to adjust the death benefit within certain guidelines. This added flexibility allows you to choose how much of one’s premium funds will go toward the death benefit and how much goes into the cash value, offering you the ability to adjust the death benefit as your financial circumstances change.

Variable Universal Life Insurance

Variable universal life insurance is quite similar to normal universal life except that variable policies allow you to choose how your cash-value funds are invested, rather than the insurance company. This offers you more control over the cash-value investment and potentially higher returns.

However, if the invested cash-value funds perform poorly or the market tanks, your policy could be at risk. Given a major drop in the cash-value account investments, you may have to pay increased premiums just to keep the policy in force. Moreover, the fees and expenses associated with the cash value investments for variable policies may be much higher than you would pay if you simply invested the funds on your own.

Because understanding life insurance can be confusing, it’s best to get the advice of a trusted advisor before you meet with an insurance agent, who might try to talk you into more coverage than you need in order to earn a larger commission. By sitting down with us as your Personal Family Lawyer®, we can work with you and your insurance advisors to offer truly unbiased advice about which policy type is best for your family and life circumstances. Contact us today, and we’ll walk you step-by-step through the different life insurance options and help you with your other legal, financial, and tax decisions to ensure your family is planned for and protected no matter what happens.

We can all learn a lot from celebrity estate planning mistakes. Discussing death can be awkward, and many people would prefer just to ignore estate planning all together. However, ignoring—or even putting off—such planning can be a huge mistake, as these celebrity stories will highlight.The next time one of your relatives tells you they don’t want to talk about estate planning, share these famous celebrities’ stories to get the conversation started. Such cautionary tales offer first-hand evidence of just how critical it is to engage in estate planning, even if it’s uncomfortable.

The Marley Family Estate Planning Battle

You would think that with millions of dollars in assets—including royalties offering revenue for the indefinite future—at stake, more famous musicians would at least have a will in place. But sadly, you’d be wrong. Legendary stars like Bob Marley, Prince, and Jimi Hendrix failed to write down their wishes on paper at all.Not having an estate plan can be a nightmare for your surviving family. Indeed, Marley’s heirs are still battling one another in court three decades later. If you do nothing else before you die, at least be courteous enough to your loved one’s to document your wishes and keep them out of court and out of conflict.

Paul Walker Died Fast and Furious at Just 40

While Fast and Furious actor Paul Walker was just 40 when he died in a tragic car accident, he had enough forethought to implement some basic estate planning. His will left his $25 million estate to his teenage daughter in a trust and appointed his mother as her legal guardian until 18.

But isn’t 18 far too young for a child to receive an inheritance of any size? Walker would have been far better advised to leave his assets in an ongoing trust, with financial education built in to give his daughter her best shot at a life well lived, even without him in the picture.

Most inheritors, like lottery winners, are not properly educated about what to do after receiving an inheritance, so they often lose their inheritance within just a few years, even when it’s millions.

Indeed, none of us has any clue when we’ll die, only that it will happen, so no matter how young you are or how much money you have—and especially if you have any children—don’t put off estate planning for another day. You truly never know when it’ll be needed.

Heath Ledger Didn’t Update His Estate Planning

Even though actor Heath Ledger created a will shortly after becoming famous, he failed to update it for more than five years. The will left his entire fortune to his parents and sister, so when he died unexpectedly in 2008, his young daughter received nothing, as she hadn’t been added to the will. Fortunately, his parents made sure their granddaughter was provided for, but that might not always be the case.Creating an estate planning strategy is just the start—be sure to regularly update your documents, especially following births, deaths, divorces, new marriages, acquiring new assets, or retiring. Many estate plans fail because most lawyers don’t have built-in systems for updating your estate plans, but we do—mostly because we don’t want this to happen to your family.

Paul Newman Cut Out His Daughters Too

Though it’s a good idea to regularly update your estate plan, be sure your heirs know exactly what your intentions are when making such updates, or your family might experience significant  shock by not knowing why you did what you did. The final update to Paul Newman’s will, which was made just a few months before his death in 2008, left his daughters with no ownership or control of Newman’s Own Foundation, his legendary charity associated with the Newman’s Own food brand. Prior versions of Newman’s will— and indeed his own personal assurances to his family—indicated they’d have membership on the foundation’s board following his death. Instead, the final version of his will left control of the foundation to his business partner Robert Forrester. Some allege that during his final months, when Newman was mentally unstable, he was secretly persuaded to change his estate plan to leave control of the Newman’s Own brand and foundation to Forrester. Newman’s daughters are currently fighting Forrester in court over the rights they believe they’re entitled to receive.

While changes to your estate plan may seem perfectly clear to you, make sure your family is on the same page by clearly communicating your intentions. In fact, if you are making significant changes to your plan, and your children are adults, we often recommend a full family meeting to go over everything with all impacted parties, and we often facilitate such meetings for our clients.

Muhammad Ali Made His Wishes Clear

Boxing great Muhammad Ali wanted multi-day festivities to be held in his honor, including a large festival, an Islamic funeral, and a dazzling public memorial at the KFC headquarters in Louisville, KY. Given such elaborate plans, he worked with his lawyers for years, ensuring his wishes would be properly carried out.While you probably won’t need a multi-day festivity to celebrate your life, you may have wishes regarding how your life should be memorialized when you pass or how your care should be handled if you’re incapacitated. If you eat a special diet or want certain friends by your side while incapacitated, you have to make these wishes clearly known in writing or they very well might not happen. At the same time, you should spell out exactly how you want your remains cared for and what kind of memorial service, if any, you prefer.As your Personal Family Lawyer®, we can help ensure your final wishes are carried out exactly how you want. But more importantly, we’ll help protect your family and keep them out of conflict and out of court in the event of your death or incapacitation. With a Personal Family Lawyer® on your side, you’ll have access to the exact same estate planning strategies and protections that A-List celebrities use, so don’t wait another day—contact us now to get started!

These days, second and even third marriages are fairly commonplace. And the estate planning issues that arise from multiple marriages can be highly complex and confusing. So, how do you navigate estate planning for a blended family? Merging two families into one presents unique legal and financial challenges that can cause significant conflict and distress unless effective estate planning has been put into place early on. Here are a few of the most common issues that blended families should keep in mind when it comes to estate planning.

Keeping Assets Separate

If you get remarried and have children from your previous marriage(s), you need to think about how you want to balance providing for your new spouse and ensuring the children from your previous marriage are taken care of in the event you become incapacitated or when you die. If you intend to keep your assets separate, so each spouse can pass an inheritance to his or her own children, you’ll need to create and maintain separate accounts. One account contains the assets you want to pass on to your children, and the other can be either a separate or joint account that contains the assets you want to share with your spouse. If you and your spouse commingle your income and assets, then the new spouse will have claim and control of those assets when you die, which can leave your kids with nothing. Moreover, joint accounts can be subject to claims from a former spouse and/or creditors, so unless you want your new spouse to share that risk, keep at least some assets separate.

And, if you’re keeping assets separate, be sure to talk with us about how to do that properly, as it can get tricky, particularly when you start sharing some assets and buying new assets together.

Inheritance Timing

If you have children for whom you want to leave an inheritance, you should think about how and when you want those assets passed on. For example, what if you die prematurely or your spouse is significantly younger than you? Do you want your kids to wait until the new spouse dies to claim their inheritance, or do you want them to receive it immediately following your death? Establishing a trust can protect assets for each spouse’s children and stipulate when the kids receive their inheritance. You may want to provide your children with some of their inheritance, such as proceeds from a life insurance policy, upon your death and then release the rest at some point in the future. Or if your kids are very young, you may decide to leave that decision up to your spouse or a third-party successor trustee.

Trustee Considerations

A common scenario for blended families is for one spouse to set up a living trust that names themselves as the trustee during his or her lifetime, with the surviving spouse named as successor trustee once they die. This is done to ensure the surviving spouse will be provided for for life and the children will receive the remaining assets once the new spouse passes.

But the new spouse and your children may have conflicting interests, especially if the spouse is older. For example, the new spouse may choose to invest the assets conservatively, ensuring he or she has enough money to live comfortably for a few more decades. However, the children—particularly if they are younger—might be better off having the assets placed into higher-risk investments, which can offer better returns in the long run, but leave less income for the surviving spouse.In this case, it’s best to name a neutral third-party as successor trustee, so both the children and surviving spouse’s interests can be balanced fairly.

That said, we do recommend leaving at least something to your children from a prior marriage immediately upon your death (in trust if your children are minors). By doing so, you can mitigate potential conflicts between your children and surviving spouse.

Incapacitation

Beyond finances, the issues of power of attorney and health-care directives must also be discussed. If one spouse becomes incapacitated, you must decide who you would want to make legal and medical decisions for you. If the children are young, it’s probably best to leave those decisions up to your surviving spouse. However, if your children are older, you may want them included in the discussion of how your health-care decisions will be made.

Comprehensive and effective estate planning is especially important for blended families. Indeed, it’s crucial that these families work with a professional who is trained in counseling blended families on how to properly protect their assets in a manner that’s best for both the spouses and any children involved.

As your Personal Family Lawyer®, we’re specifically trained to work with blended families, ensuring that you and your new spouse can effectively clarify and clearly document your wishes to avoid any confusion or conflict over how the assets and legal agency will be passed on in the event of one spouse’s death or disability. If you have a blended family, or are in the process of merging two families into one, contact us as your Personal Family Lawyer®, so we can discuss all of your options.

President Trump signed the new Tax Cuts and Jobs Act bill into law on December 22, 2017, and the law includes a number of historic changes to the federal tax code. However, the vast majority of the most dramatic changes are aimed at business taxation, not individual taxpayers. So, how will the new tax law effect your family?

That said, there are several fairly significant changes to personal income tax laws, which we’ve highlighted below. But keep in mind, unlike the new business tax laws, which are permanent, nearly everything listed here for personal taxes sunsets after 2025 and will revert to the 2017 code in 2026 unless Congress extends the changes.

Given this, it’s important that you contact your Personal Family Lawyer® as soon as possible to take advantage of any new tax-saving strategies before these new provisions sunset.

Higher Standard Deduction

The standard deduction increases to $24,000 for joint filers, $12,000 for single taxpayers, and $18,000 for heads of households, all adjusted for inflation. The law also eliminates nearly all personal exemptions, however, so those with dependents won’t see quite as much savings.

Note that if you’re a 1099 wage earner, regardless of how much you earn, you pay approximately 15% of your earnings toward payroll taxes, which would otherwise be covered by your employer and taken out of your paycheck. So even though the standard deduction has increased, if you’re a 1099/ independent contractor, you may still face a big tax bill if you’re not structured properly. Contact us if you need help with this.

Changes To Mortgage Interest Deduction

For existing mortgages the limit on deducting interest on up to $1 million of mortgage interest stays the same. Deductible mortgage interest for new mortgages taken on after December 15, 2017, however, is now capped at $750,000. Additionally, homeowners may no longer claim a deduction for existing and new interest on home equity loans.

Increased Child Tax Credit

The child tax credit increases up to $2,000 per child, and the first $1,400 is refundable, meaning the credit could reduce your tax liability to zero, and you would still receive a tax refund. The cut off for the tax credit increases to $400,000 for married couples filing jointly.

Expanded Estate Tax Exemption

The estate tax exemption increases to $11.2 million for individuals and $22.4 million for couples, indexed for inflation. The rate for those estates still subject to taxation remains at 40%. However, don’t let this increase lead you to believe you don’t need to handle your estate planning if your estate is less than $11 million. Estate planning is what keeps your family out of court and out of conflict; it’s not just about taxes. Very few people will be impacted by the estate tax, but everyone’s family is at risk for court and conflict.

Eliminated State and Local Income Tax Deductions

State and local income tax deductions are repealed. This means that you will pay your state and local income taxes from after-tax income. However, you’ll be able to deduct up to $10,000 for state and local property taxes paid.

Changes to Medical Expense Deduction

Under the new law, taxpayers can deduct any medical expenses that exceed 7.5% of their adjusted gross income in 2017 and 2018. But this new deduction level sunsets on Jan. 1, 2019, when it will revert back to the previous level of 10%.

Whether the Tax Cuts and Jobs act results in tax cuts for your family or an increased tax bill is greatly dependent on how you’ve structured your financial affairs. Given this, if you’ve not yet had an Estate Plan Strategy Session with us as your Personal Family Lawyer®, now is the time to do it. After your Estate Plan Strategy Session, we’d be happy to meet with you and your CPA to strategize how to achieve the most tax savings for your family in the years to come.

Can same-gender couples use Estate Planning for parental rights? In 2015, when the Supreme Court ruled that same-gender couples had the right to marry, the LGBTQ community celebrated a huge victory. With the issue of marriage settled, it looked as if same-gender couples were finally going to have equal standing with heterosexual couples in the eyes of the law.

But while same-gender couples now have nearly all of the same matrimonial rights as heterosexual couples, there is one key right that’s still up in the air—the automatic right to be legal parents. Known as “marital presumption,” this right deems that when a married man and woman have a child, they’re both automatically considered legal parents of the child.

While parental rights are automatically bestowed upon the biological parent of a child in a same-gender couple, the non-biological spouse/parent still faces a host of legal complications and challenges. Because the Supreme Court has yet to rule on the specific issue of the parental rights of non-biological spouses/parents in a same-gender marriage, there is a tangled, often-contradictory, web of state laws governing such rights.

If you’re a same-gender couple, for example, some states and courts may not consider you a legal parent based solely on your marriage. And even in places where there are some protections under the law, same-gender couples can still experience discrimination and difficulty gaining all the same legal rights as married heterosexual couples. Indeed, it’s a real possibility that you could have total legal rights as a non-biological parent in one state, but drive across the border to a neighboring state and be a complete stranger to your child in the eyes of the law.

Given the murky nature of state laws, most legal experts advise same-gender couples that the best way to ensure you have full rights as a non-biological parent in every state is to obtain a second-parent adoption. The Supreme Court has ruled that the adoptive parental rights granted in one state must be respected in all states.

However, it can be extremely difficult for married same-gender couples even to adopt. In fact, seven states currently permit employees of state-licensed adoption agencies to refuse to grant an adoption if doing so violates their religious beliefs. In other states, however, the state law specifically forbids such discrimination.

What’s more, second-parent adoptions are often costly, averaging about $4,000 nationally. They can also be extremely time-consuming and laborious, requiring the non-biological parent to jump through a range of legal hoops, including physicals, blood work, fingerprinting, along with additional state and FBI background checks.

Some states even mandate home visits from social workers to see if a “suitable environment” exists for the child. All of this can be a major inconvenience at the very least and downright demeaning in other cases.

That said, many people are not aware that same-gender couples can achieve nearly the same parental rights that are granted through a second-parent adoption by using a combination of estate planning and family law protections. Moreover, gaining such rights in this manner will involve far less—if any—background screening and/or additional legal obstacles.

As your Personal Family Lawyer®, we offer a number of unique legal services to provide a non-biological, same-gender parent with as many parental rights as possible, without a full adoption. Starting with our proprietary Kids Protection Plan®, couples can name the non-biological parent as a legal guardian of the child, both for the short-term and the long-term, while confidentially excluding anyone the biological parent thinks may challenge their wishes.

That way, if the biological parent becomes incapacitated or dies, his or her wishes are clearly known and stated, so the court can do what the parent would’ve wanted and keep the child in the non-biological parent’s care. Beyond that, there are several other legal protections—living trusts, power of attorney, and health care directives—that a Personal Family Lawyer® can grant to offer the non-biological parent additional rights. Finally, we also create what are known as “co-parenting agreements,” legally binding arrangements that stipulate exactly how the child will be raised, what responsibility each partner has toward the child, and what kind of rights would exist if the couple splits or goes through a divorce.If you’re in a same-gender marriage, or even involved in a committed partnership with someone of your own gender, and you want that person to stay in relationship with your kids (or yourself) should you become incapacitated, or you want that person financially provided for if you die, contact us as your Personal Family Lawyer® to see what kind of protections we can help you put in place.

Since estate planning involves thinking about death, many people put it off until their senior years or simply ignore it all together until it becomes too late. This kind of unwillingness to face reality can create major hardship, expense, and mess for the loved ones and assets you leave behind. So how do you avoid making estate planning mistakes?

While not having any estate plan is the biggest blunder you can make, even those who do create a plan can run into trouble if they don’t understand exactly how estate plans function.

Here are some of the most common mistakes people make with estate planning:

Not Creating a Will

While wills aren’t the ultimate estate planning tool, they’re one of the bare minimum requirements. A will lets you designate who’ll receive your property upon your death, and it also allows you to name specific guardians for your minor children. Without a will, your property will be distributed based on your state’s intestate laws (which are probably not in alignment with your wishes), and a judge will choose a guardian for your children under 18. Oh, and then your kids will get whatever you own outright, with no guidance, direction, or intention, as long as they’re over 18.

Not Updating Beneficiary Designations

Oftentimes, people forget to change their beneficiary designations to match their estate planning desires. Check with your life insurance company and retirement-account holders to find out who would receive those assets in the event of your death.

If you have a trust, you’ll likely want the trust to the beneficiary. This does not happen automatically upon creating a trust. You actually have to make the change. See the section below for more on funding your trust.

And you never want to name a minor as a beneficiary of your life insurance or retirement accounts, even as the secondary beneficiary. If they were to inherit these assets, the assets become subject to control of the court until he or she turns 18.

Not Funding Your Trust

Many people assume that simply listing assets in a trust is enough to ensure they’ll be distributed properly. But this isn’t true. Some assets—real estate, bank accounts, securities, brokerage accounts—must be “funded” to the trust in order for them to be actually transferred without having to go through court. Funding involves changing the name on the title of the property or account to list the trust as the owner.

Unfortunately, most lawyers have been trained to create a trust, but not make sure assets are actually transferred into the trust. Crazy, right?!? But we see it all the time. And of course, when you acquire new assets after your trust is created, you must make sure those assets are also titled into your trust. However, most lawyers are not trained to make sure this happens either.

Part of being a Personal Family Lawyer® law firm means we make sure your assets are inventoried, titled properly, and the inventory is maintained throughout your lifetime, so your assets aren’t lost and do not get stuck in court upon your incapacity or death.

Not Reviewing Documents

Estate plans are not a “one-and-done” deal. As time passes, your life circumstances change, the laws change, and your assets change. Given this, you must update your plan to reflect these changes—that is, if you want it to actually work for your loved ones, keeping them out of court and out of conflict.We recommend reviewing your plan annually to make sure its terms are up to date. And be sure to immediately update your estate plan following major life events like divorce, births, deaths, and inheritances. We’ve got built-in processes to make sure this happens—ask us about them.

Moreover, an annual life review can be a beautiful ritual that puts you at ease knowing you’ve got everything handled and updated each year.

Not Leaving an Inventory Of Assets

Even if you’ve properly “funded” your assets into your trust, your estate plan won’t be worth much if heirs can’t find your assets. Indeed, there’s more than $58 billion dollars worth of lost assets in the U.S. coffers right now. Can you believe that? And it happens because someone dies or becomes incapacitated but their assets cannot be found.

That’s why we create a detailed inventory of assets, indicating exactly where to find each asset, such as your cemetery plot deed, bank and credit statements, mortgages, securities documents, and safe deposit box/keys. And don’t forget digital assets like social media accounts and cryptocurrency, along with their passwords and security keys. We cover all of this in our plans.

Beyond these common errors, there are many additional pitfalls that can impact your estate planning. As your Personal Family Lawyer®, we’ll guide you through the process, helping you to not only avoid mistakes, but also implement strategies to ensure your true Family Wealth and legacy will continue to grow long after you’re gone. Schedule Online

What to Expect From (and How to Prepare For) an Initial Estate Planning Meeting With Your Personal Family Lawyer

Whether you’ve met with an estate planning attorney before or it’s your first time, it’s important to understand how working with a Personal Family Lawyer® is different than meeting with a traditional lawyer.

This article will explain what’s involved with such a consultation, and it may even inspire you to meet with us to get your estate planning started or updated. If you do decide to meet with us, I’ll share instructions on how you can do that, plus include a free offer at the end of this article to give you extra motivation to check us out.

Given our unique approach, an initial consultation with our office is quite different than an initial consultation with a typical estate planning attorney. A typical “initial consultation” would be a meet-and-greet-type of meeting in which the lawyer tells you the documents you need to put in place and quotes you a fee to provide those documents. In such a meeting, however, it will likely be difficult for you to know exactly what you need for your unique family situation and how to make the right decision, outside of simply considering whether the cost of these documents fits within your budget or not. Unfortunately, deciding what you need based solely on the cost of documents will likely lead you to make choices that won’t actually serve and protect your family and assets.

In contrast, our initial meeting with you is a two-hour working session, called an Estate Plan Strategy Session. Prior to the Estate Plan Strategy Session, we’ll send you a personalized package of materials that will guide you in locating and listing each of your assets.

What we consistently see is that surprisingly, many people do not have a clear awareness of what they own or where to find their assets. This is the reason there are more than $58 Billion (yes, Billion with a “B”) of lost and unclaimed assets held by state and federal agencies. Oftentimes people become incapacitated or die, and their family simply overlooks these assets.

We know you haven’t devoted years of your precious time and energy to build your family wealth only for your heirs to lose track of it when something happens to you. That’s one reason the Estate Plan Strategy Session is so beneficial. Whether you decide to create a full plan or just redesign the one you have, at the very least your family will know what you have and how to locate it should anything happen to you.

Also during your Estate Plan Strategy Session, we’ll guide you through a complete understanding of what would happen to everyone you love and everything you own should something happen to you—whether it’s under your current plan or the plan the state has for you if you don’t have an estate plan yet. From there, you can decide if that plan is how you want things handled or if you’d want a different outcome, in which case we can design a plan to ensure things go exactly the way you want in your absence.

Finally, if you do decide to create a plan or redesign an existing one, you can select the type of plan you want based on the different packages we’ve created, which allow you to literally choose your fee based on what’s most important to you, what’s not important to you, and with a clear understanding of the impact of your choices.

The Estate Plan Strategy Session is a true educational opportunity for you to ensure you’re doing the right thing by your loved ones. This investment of your time now will save your family countless hours of heartache and work down the road, while also keeping them out of conflict and out of court.

Unfortunately, death is unavoidable. But you can make it far easier on the people you love by the choices you make now. And facing the reality of this fact today allows you to make choices that will let you enjoy your life even more. Indeed, our clients report a huge level of relief after meeting with us, and they frequently say they wished they’d done it sooner.

We’d love to meet with you for a Estate Plan Strategy Session. Normally, we charge $750 for these working sessions, but if you’re one of the first five families to schedule this month, you commit to doing the homework ahead of time, and you secure your Session with a credit card (which won’t be charged as long as you do your part), we’ll waive that Planning Session fee.

Simply give us a call to get scheduled. Or if you have a relative or friend who’d benefit by getting their affairs in order, pass along this article and tell them to call us. It’s our mission to keep the families in our community out of court and out of conflict, and it all starts with a Estate Plan Strategy Session. Because, really, your family IS worth it.

Some of the most disturbing crimes against the elderly involve financial exploitation. While physical abuse is often easy to spot, financial abuse can be more difficult to detect, as victims often have no idea they’re being swindled until their money suddenly vanishes. So, what are the 4 warning signs of elderly financial abuse?

Most victims are more than 70 or 80 years old, and involve crimes like fraud, embezzlement, identity theft, along with welfare and insurance scams. If you’re caring for an elderly loved one, be on the lookout for the following red flags of financial abuse:

1. Unusual Financial Transactions or Spending

The most obvious sign an elderly family member is being exploited is if there are sudden changes to their spending, banking, and/or financial practices. At the same time, the person may start behaving secretively, confused, or otherwise atypical about money matters. A few of the most frequent actions include:

• Someone who is normally meticulous about their finances suddenly starts seeing unpaid bills, non-sufficient funds warnings, and/or unexplained credit card charges.
• The elderly person starts opening, closing, or changing banking and investment accounts, especially without regard to penalties or fees.
• Someone with consistent spending patterns starts showing a sharp increase in spending and/or investing.
• The person’s account sees a suspicious increase in ATM use, withdrawals, and/or checks made out to unfamiliar recipients.

2. The Appearance Of A “New” Person In Their Life

Because they’re often alone and isolated, seniors are particularly susceptible to being “befriended” by strangers who take advantage of their loneliness to exploit them. And it may not be a stranger—relatives who haven’t been around for years can suddenly start spending lots of time with the person.

This situation is particularly dangerous when the new acquaintance, caregiver, or relative spends time in the person’s home, where they have easy access to the person’s accounts, financial statements, and personal documents.

One sign that something is amiss is if the senior acts unusual when it comes to the new caregiver or friend. They may seem nervous when that person is around, stop participating in their usual social events, or be reluctant to speak about the person with you. This is a red flag the new person may be trying to isolate or control them.

3. Unneeded Goods, Services, or Subscriptions

Outside of loneliness, the elderly are often physically unable to handle household chores and maintenance like they used to. Given this, they’ll likely need service providers to take care of the work for them. But every new person they surround themselves with is a potential swindler.

Watch for unscrupulous door-to-door salesmen and home repair contractors, who stop by offering unsolicited products or services, especially related to home remediation issues. And they don’t have to physically present to perpetrate fraud—there are countless telemarketing and email scams that target unsuspecting seniors in order to make a quick buck or steal their identity.

One fairly common scam involves inviting the older person to a free lunch or dinner in exchange for listening to a “seminar” about a financial product or service. The elderly often feel obligated to “buy something” after getting what they thought was a free meal.

Make sure that another adult relative is present before signing any contracts, and always consult with us if you’re unfamiliar with a new investment or financial opportunity.

4. Changes to Wills, Trusts, Titles, Power of Attorney, etc.

The worst cases of financial abuse of the elderly can even involve the person making changes to wills, trusts, and other estate planning documents. Other potentially harmful changes can involve deeds, refinanced mortgages, property titles, and/or adding someone to a joint account.

Pay especially close attention if the older person seeks to grant power of attorney to someone out of the ordinary, as this can open the door for massive theft of assets and potentially fatal changes in a senior’s caregiving services.

One major advantage to establishing a relationship with a lawyer during your early years is so we can get to know you while you’re young, healthy, and clear, and then monitor if anything goes awry in your later years.

One reason financial scams are so hard to detect is that the elderly—like all of us—are embarrassed to admit they’ve been swindled, or they may not want to get a new “friend” or relative in trouble by telling others about their suspicions.

However, anyone can fall prey to financial fraud, so it’s important the elderly know that you’ve hired us as your Personal Family Lawyer® to provide trusted advice and guidance for all financial and legal matters. We can help secure your family’s most valuable assets with robust legal protections to prevent fraud and scams of all kinds. Call us today to schedule a Estate Plan Strategy Session to make the most empowered and informed decisions for yourself and the family members you love. Or, schedule online.

Suze Orman Says This is The Age You Should Retire–Not a Month or Year Before (and Here’s What She Misses)

If you’re middle aged or older, it’s likely that one of your most pressing concerns is not having enough money for retirement. And there’s good reason. According to the National Institute on Retirement Security, a full third of Americans between 55 and 65 have nothing saved for retirement.

And even if you’ve diligently saved, it’s difficult to predict if your savings will be enough. Today, many people are living into their late-80s, 90s, and even 100s. Because most Baby Boomers have lived comparatively healthier lives and had access to better healthcare than their parents, you may live even longer.

In light of these facts, a recent article in Money by renowned financial guru Suze Orman declares that the new retirement age for the majority of us is now 70.

While most plan to retire in their 60s, Orman believes this simply isn’t realistic anymore, not only because of increased lifespan, but also due to rising healthcare costs and the increased need to care for aging parents for longer periods.

Today’s eligibility age for full Social Security benefits is between 65 and 67. Of course, you can retire as early as 62 and receive partial benefits, but Orman says that claiming such partial benefits is “one of the biggest mistakes you’ll ever make.”

By waiting until 70, your annual benefit will be 76% higher, which will be hugely beneficial in the long run. Orman notes that for married couples it might be okay for the spouse earning less to retire at age 67, but the higher earner must wait until 70. The only exception is if one of you has a medical condition that prevents you from working or makes it unlikely you’ll live into your late-80s or 90s.

But delaying retirement doesn’t necessarily mean working full-time until 70. You might be able to work part-time or receive a reduction in your current job responsibilities. Orman says to start talking with employers about the possibility of part-time work or reduced duties at least two years before your planned downshift.

You also might consider switching jobs to something that requires less time and energy. Start looking now for educational and training opportunities to prepare for such a new position. Another option (and one Orman misses) is to launch a freelance gig, or “side hustle,” which is probably your best bet for a secure retirement anyway.

Instead of thinking about retirement as a time to retire from life and work, start thinking about it as the time you can finally do what you’ve always wanted to do. Create a service offering around the passion project you didn’t think you could indulge during your working years.

Dreaming into—and even taking steps toward this side hustle—now is the place to start, no matter how close or far you are from retirement.

Your life experiences were given to you so you can give them back. Begin to consider who needs to hear what you’ve learned throughout your life, especially during the hard times, as that’s likely to be the source of your side hustle.

While this all may initially add to your retirement anxiety, rather than reducing it, you don’t have to go it alone. With us as your Personal Family Lawyer®, we’ll be in your corner the whole way, offering guidance and support, while helping with any legal, insurance, financial, and tax issues that might arise. Schedule an Estate Plan Strategy Session today to see where your retirement planning currently stands.