For generations, the children in your family have learned to swim by jumping off of the dock of your family’s vacation home. It’s a rite of passage for each grandchild to learn how to bait a hook from grandpa while fireflies flicker in the summer heat. The legacy of a vacation home is the pinnacle of the American Dream. Many people work their entire lives to afford a home in their dream destination. While you dream of passing down this home (and the memories) for generations to come, have you thought of how to protect this family legacy? Leaving the family vacation home directly to your children may be the simplest way for transferring ownership, however, when multiple children are involved, they would all need to agree with how the property is managed and maintained in the future. These decisions are proven to be challenging not only for your children
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A dementia diagnosis is a traumatic time for any family. Dementia happens slowly and progressively over time. In the early stages, some symptoms are often thought of as just signs of aging. Beginning signs can be as simple as losing car keys, forgetting where the car is parked, or even forgetting to turn off the oven. Unfortunately, dementia is incurable and progresses over time. It is important to have difficult conversations sooner than later. There are a few things you can do to protect your loved one during this challenging time. Gather Financial Documents There are several advantages to having all financial documents in one place during an early diagnosis of dementia. Dementia patients usually have difficulty remembering where they put things. It is important to not only put all financial documents in one place, but to also make copies and have them kept with a trusted member of
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For parents of adult children who suffer from mental illness or addiction to drugs or alcohol, the planning challenges combined with the strong emotions involved can seem overwhelming. The last thing you want to do is provide your loved one with assets that enable addiction or, in the case of mental illness, violate limitations on the number of assets a person can have and still qualify for government benefits. A major problem faced by parents of troubled adult children is admitting that their son or daughter is not simply “going through a phase” and will “come around” over time. Another is trying to picture the child’s future. When children suffer from addiction or a mental illness such as schizophrenia, it is very difficult to make any type of prediction about what they will need financially or the type and level of care that will be required down the road. Periods
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A number of our clients have expressed concern about protecting the inheritances of their children. Sometimes, they worry about the security of a child’s job and what will happen if he or she loses that job in a tough economy, cannot pay bills, and loses the inheritance to creditors. Other times, they worry about the influence sons or daughters-in-law have over their children, and what would happen if their child got divorced. Some parents wonder if their children are mature enough to handle an inheritance and if they can make sound, long-term decisions on their own. Fortunately, there are a number of ways for you to leave an inheritance to your children and protect that inheritance against threats such as these and more. In addition to their ability to avoid probate and minimize taxes, trusts are some of the most effective tools to protect your children’s inheritances. Here are a
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Irrevocable Living Trusts, when properly designed and implemented, can provide an almost unsurpassed level of asset protection from the high cost of long-term care. And, like Revocable Living Trusts, they spare your family the delays, frustration and expenses of the probate process. Other reasons to utilize an Irrevocable Living Trust include: Tax minimization Avoiding the risks of placing assets in the name of your children Protecting assets against predators, creditors and lawsuits While many different types of Irrevocable Living Trusts are available, in essence all of them re-title your assets. Assets placed in an Irrevocable Living Trust can include a business, cash, investments, life insurance policies, and more. Why is an Irrevocable Living Trust better than a Revocable Living Trust at protecting assets against the cost of long-term care? Under current Medicaid laws, assets in a Revocable Living Trust are not fully protected. Why? Assets in a Revocable Living Trust
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Our clients often express concern about protecting the inheritances of their children. Sometimes, parents worry about the security of a child’s job and what will happen if he or she loses that job, cannot pay bills, and subsequently loses the inheritance to creditors. Other times, parents worry about the influence a child’s spouse has over their child’s money management decisions. A child embroiled in a “bad marriage” frequently leads to parental concerns over an inheritance being diminished or lost through divorce. Finally, parents often wonder whether their children are mature enough to handle an inheritance on their own. Fortunately, there are a number of ways for you to leave an inheritance to your children and protect that inheritance against threats such as these and more. Certain types of trusts, for example, have the power to accomplish this goal, with the added benefit of avoiding probate. Here are a few examples.
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Maybe it’s the son-in-law you’ve never really liked, let alone trusted, who wields undue influence over your daughter. Or the ex-spouse who continues to make trouble seven years after your divorce. Or the son whose irresponsibility and self-destructive behavior forced you to disinherit him. If you have reason to believe that an estranged family member might challenge your will, trust, powers of attorney or other planning documents, you may want to consider obtaining a letter of competency. Why? Many such challenges are based upon claims of incompetency—that is, the legal documents are invalid because their creator was of unsound mind. A letter of competency will help dispel notions that your documents were created while you lacked the mental capacity to make sound financial and legal decisions. A letter of competency is typically written by a primary care physician who is familiar with any changes in a patient’s baseline mental and
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