Incapacity planning is an estate planning need that is often overlooked.  Many people assume that they will never have a medical emergency, so they decide not to plan ahead.  Take a look at the following information, to better understand incapacity planning.  If you have any questions, or if you’d like to discuss your planning options, contact an experienced and qualified estate planning attorney.

Staying in Control with Incapacity Planning

Incapacity planning makes it possible for you to have control over your affairs, even when you’re unable to communicate your needs or make decisions. With a written and legally valid plan in place, you can authorize others to offer assistance, so that there is no court interference, which is a total loss of control.

Execute Powers of Attorney

You may choose to create a financial power of attorney and medical power of attorney, known in California as an Advance Health Care Directive.  These documents allow you to appoint agents who will be responsible for assisting you, during any period of incapacity.  This is not a place to cut corners.  Avoid the temptation to download a boilerplate power of attorney you may find on the Internet.  Many of these documents are inad

• Financial Power of Attorney:  This means that your finances will remain order, so that your bills are paid because your agent has access to your money and the authority to act on your behalf.
• Medical Power of Attorney (Advance Health Care Directive):  Your medical (or health care) power of attorney authorizes a trusted helper to assist you, by making important medical decisions regarding your care.

Avoid Conservatorship

Without the right plan in place, you will have no control; and, neither does your family!  That’s right; your own family won’t be able to help you!  They will have to go to court to have you deemed incapacitated and have a conservator appointed.  It may not be whom you would want; it may even be a stranger.

If you don’t have up-to-date powers of attorney in place, consult with an experienced and qualified estate planning attorney.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

People often overlook important estate planning considerations. After taking an inventory of all your assets and readying them for distribution to your loved ones,  it would be easy to overlook something that is not normally thought of as an asset, the family pet.

This is one of the reasons why it is a good idea to engage the services of an experienced and qualified estate planning attorney.  You only have one estate to plan, but an experienced estate planning lawyer prepares many estate plans for their clients.  With the professional guidance from a highly qualified estate planning attorney, you can be certain that all aspects will be considered.

People generally expect to outlive their pets and this is one of the reasons that pets are sometimes left out of estate plans. However, you never know what the future holds and it is important to make sure that your pets will be properly looked after should you predecease them.

Pet planning essenatially involves two components:  identifying a willing and able caretaker, and providing the financial resources that the caretaker will need to care for the pet. An estate planning attorney can help you make arrangements, and this endeavor could include the creation of a pet trust or a possible direct bequest to the potential future caretaker.

Our office is well-versed in pet planning, and we invite you to contact us to schedule an estate planning consultation.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

Release of the income caps for the conversion of traditional IRA assets to Roth IRA assets has lead to a scurry of conversions.  The catch is that if you took a tax deduction for your contributions to the IRA, you must now pay taxes on any monies you now transfer into a Roth IRA.

The Roth is very popular and, generally, potentially a great deal because Roth IRA assets grow tax free and are distributed tax free.  In addition, if you don’t need the money, you can keep the assets in the Roth for your entire lifetime.  There are no lifetime required mandatory distributions.

Assets in a traditional IRA grow tax deferred, but are taxed upon distribution out of the IRA.  Because the government wants to get the tax dollars, traditional IRAs have required minimum distributions starting April 1^st after the year the participant (i.e. you) turns 70 1/2.

So, for many a Roth may seem like a good ideae but for the taxes due on conversion.  Because of the tax issue, conversion needs closer examination.

• For those who were above the income limits and didn’t take an income tax deduction for IRA contributions, there is no tax due on conversion.
• For those who need to offset business losses and mortgage or student loan deductions, a Roth conversion (or partial conversion) works.
• For individuals who think they will be in a higher tax bracket in the future, the conversion may be worth the price of admission.
• For individuals who think that, in general, income taxes will increase in the future, the conversion may make sense.

Be sure to consult with an experience and  qualified estate planning attorney or financial or tax advisor who is well versed in IRAs to discuss and analyze potential conversions from a traditional IRA to a Roth IRA.  And, while you’re at it, take a close look at your IRA and Roth IRA beneficiary designations to make sure they meet your current estate planning goals.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

Many people choose to put off estate planning because they feel it is not a necessity until a later time in life.  The truth is, everyone needs to have an estate plan in place.  This will help to prepare for the unexpected.  Below are 5 of the benefits of having an estate plan.  To commence your planning, schedule a meeting with an experienced and qualified estate planning attorney today.

• Give you and your family peace of mind. With a plan in place, you and your family members will be able to focus on life rather than worrying about the future.  It is best to start your estate planning sooner rather than later.
• Provide for your family members after you die. If you are financially responsible for your family and die unexpectedly, your family will have to find a way to survive.  With an estate plan in place, you can make sure that you provide financial support to your loved ones in their time of need.
• Choose who will be given your assets after you die. If you die without an estate plan in place, your assets may not be distributed based on your wishes.  With planning, you are able to choose who will receive your assets.
• Make important medical (and financial) decisions. If you were to become seriously disabled or ill, your will benefit greatly by having a plan in place.  This will allow you to outline your medical wishes as well as appoint someone who will help to make important financial and medical decisions if you are ever unable to.
• Allow your family members to grieve. By incorporating funeral arrangements into your estate plan, your family will not have to make overwhelming decisions after your death.  This will also help to minimize family disagreements about your funeral and service wishes.  Instead, your family will be able to celebrate your life and provide love and care to each other during their time of loss.

These are just 5 of the many benefits of estate planning.  Take the time to meet with an experienced and qualified estate planning attorney to assess your personal situation.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

A power of attorney, or POA, is a legal document that has been around in varying forms for centuries. The concept, or purpose, behind a power of attorney is the ability to give another person the legal authority to act on your behalf. The extent and the duration of the authority depends on the type of POA that you execute. Although POAs are widely used by people of all ages, they are particularly popular with the elderly. Unfortunately, they are also widely used by people who want to take advantage of the elderly. If someone has suggested that you execute a power of attorney, be sure that you understand what you are signing first. Consulting with an experienced and qualified estate planning attorney is the best bet; however, there are some basics that can help you in the meantime.

• State laws govern the formation and interpretation of a POA. Although there are similarities, make sure that you understand the laws in your specific state before signing anything.
• Do not confuse a POA with a healthcare power of attorney, living will or advance health care directive. The name may vary from one state to another, but these documents are intended to give someone the power to make healthcare related decisions in the event of your incapacity only. They are very specialized documents that typically follow a state approved form which includes specific language. They are also frequently registered with the state.
• Traditional POAs come in two general forms — durable and non-durable. A non-durable POA will terminate upon your incapacity. A durable POA survives your incapacity.
• All POAs terminate upon your death.
• You may rescind a POA at any time.
• You may make a POA as specific as you wish. For example, you could execute a POA that only gives someone the authority to complete the sale of your car.
• You can also make a POA very broad. You can give someone the authority to transact any legal business on your behalf, for instance. Be very careful when you grant a broad POA as you are essentially giving the person access to most of your estate assets and financial affairs.

Powers of attorney are very useful and powerful documents that can be used to the advantage of the person creating the POA.  Unfortunately, it can also be misused if it gets into the hands of the wrong persons.  When considering the creation of a POA, one should avoid the boilerplate forms which can be found on the internet and some self-help books.  Like other estate planning documents, they should be carefully drafted and executed.  The best way to assure you get a power of attorney drafted to meet your needs and goals is to work closely with an experienced and qualified estate pl

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

Creating a comprehensive estate plan is one of the most important things you will do during your lifetime. When done properly, your estate plan will ensure that your loved ones are well provided for in the event of your untimely death as well as distribute your assets pursuant to your wishes. If not executed properly, it can wreak havoc with your finances and fail to provide the protection for your loved ones that it was intended to do. Given the importance of your estate plan, the first step in creating one should be to retain the assistance of an experienced and qualified estate planning attorney. Ultimately, only you can decide which estate planning attorney to hire; however, there are a number of things that you may wish to take into consideration when making your decision.

Naturally, the amount of experience an attorney has should play a role in your decision. Estate planning is often  complicated, particularly if you have an extensive estate. Be sure to ask potential attorneys how long they have been practicing law when you sit down and speak to them. Length of time practicing, however, is not the only important factor. The focus of the attorney’s practice is of equal importance. Because estate planning is a specialized area of the law, you should look for an attorney who focuses his or her practice on estate planning and related fields such as elder law and estate administration. Just as you would not want a dermatologist to treat you for cancer, you do not want a criminal law, divorce, or personal injury attorney to assist you in planning your estate.

Finally, look for an attorney who shares your vision for your estate plan. The more complex your estate plan is, the more time you will be spending with your estate planning attorney. Make sure that the attorney you retain understands what your goals are and is willing, and able, to make them happen.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

If you have an elderly loved one who is living on a fixed income, and also has regular monthly medical expenses, those expenses may be adding up quickly. If your loved one is lucky enough to have private healthcare coverage, then he or she is better off than many elderly Americans. Unfortunately, many of America’s elderly struggle with both the rising cost of healthcare and the increased need for medical services as a result of the natural aging process. Two government programs–Medicaid (called Medi-Cal in California) and Medicare– are potentially available to help with those costs.

Although there are a number of differences between the Medicaid (Medi-Cal) and Medicare programs, understanding the more important differences will help you get a better idea if either program might be able to assist your loved one.

Both programs are federally funded; however, Medicaid (Medi-Cal) is administered by the states which means that there may be slightly different eligibility criteria and benefits among the states. Medicare requires a monthly participation payment for some of its coverage. Medicaid (Medi-Cal) does not require the payment of any premiums or participation fees, but co-payments may be required for specific services.

Medicaid (Medi-Cal) is income and asset based whereas anyone over the age of 65 (and some disabled individuals under 65) may participate in Medicare. Medicaid (Medi-Cal) covers more services than the Medicare program, but getting approved is more difficult due to the strict income and asset eligibility guidelines. If your loved one has income or assets that you are concerned may prevent approval for the Medicaid program, there may be alternatives. Talk to your estate planning attorney about ways to structure his or her estate that will fit into the income and asset guidelines.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

The Federal Social Security Administration is responsible for providing Social Security retirement and disability benefits to qualified applicants. For this blog discussion, we’ll cover Social Security retirement benefits.

Almost all of us have a right to claim Social Security retirement benefits once we reach retirement age. For those born in 1929 or later years, you can claim Social Security retirement benefits if you’ve earned a sufficient number of work credits. Usually, you must have earned at least 10 years to qualify. The Social Security Administration determines our benefits based on our work history and age of retirement. Typically, you can begin collecting Social Security retirements at age 62, but the longer you delay retirement, the greater your chances of receiving a higher monthly benefit amount. You can also receive partial benefits while you continue working after age 62.

The Social Security Administration also provides benefits to some dependents and spouses based on an applicant’s earnings and history. Each year you can delay your benefits, you may increase your monthly Social Security benefits by almost 8 percent. You can contact the Social Security Administration and ask them for a statement of earnings to calculate your monthly benefits and plan accordingly. If you are eligible for survivorship benefits, you’ll need to make sure you contact the administration to report your spouse or other family member’s date of death. However, other agencies or funeral homes may have reported it for you.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

Grief and loss are things we must deal with as human beings many times throughout our lives. Mourning the loss of a loved one or pet is a universal human experience. The loss of a relationship caused by breakup or divorce, the loss of a family member or friend or the loss of a beloved pet causes all of us to go through the mourning process of dealing with grief and loss.

In the late 1960s, Elsabeth Kubler-Ross published the seminal book, “On Death and Dying,” which outlined the five stages of grief most of us will experience when dealing with the loss of a loved one. Kubler-Ross found that most people experienced all five stages, although not in the same order, after losing a loved one. In fact, most experts on grief and loss agree with her findings. These stages also universally apply to those experiencing the news of a terminal illness. According to Elsabeth Kubler-Ross, the five universal stages or phases of grief are:

1. Denial
2. Anger
3. Bargaining
4. Depression
5. Acceptance

Finding help from professional grief counselors, survivors support grouos or support from family and friends can help you heal from your wounds caused by the loss of a loved one or the news of a terminal illness. You can find a plethora of information at your library or on the Internet to guide you during your times of immense sorrow. You’re not alone.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

No way!  Married people need estate plans.  Some folks think that because they own assets jointly with a spouse, they don’t need an estate plan.  In fact, joint ownership is called a “poor man’s estate plan.”   In reality, it should just be called a “poor estate plan.”

Joint tenancy ownership is riddled with perils.  Likely, the most serious peril is the unintentional disinheritance of your children.  Sadly, it happens too often because of joint ownership.

This is what can happen when you own assets in joint tenancy with your spouse:

Tom and Tina are married and have three children.  All of their assets are owned in joint tenancy (or will be distributed by beneficiary designation to the surviving spouse which will have the identical effect.)

Tom goes surfing off the California coast and is eaten by a shark.

Tina inherits everything owned in joint tenancy by operation of law (or beneficiary designation.)

After an appropriate period of mourning, Tina marries Phil.  Because she is used to owning everything jointly, she puts all of her assets (and Tom’s assets) in joint tenancy with Phil.

On their first year anniversary trip to Hawaii, Tina falls off a cliff and is killed.  Phil inherits everything he owned jointly with Tina (regardless of what Tina’s will provides because a will doesn’t control joint tenancy property.)

In his despair, Phil dies of a broken heart six months later.

Who inherits all of Phil’s money (much of which used to Tom and Tina’s money)?

Phil’s children get it all.

What do Tom and Tina’s three children inherit?  Nothing.

You can avoid disinheriting your children:

Use trust planning to avoid unintentionally disinheriting your children.  With a trust, assets won’t go directly to your spouse, outright, such as with jointly owned property.  Instead assets will go into a trust for the benefit of your spouse and your children.

When your spouse dies, your children will inherit.  This is why married couples need an estate plan.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.