Archive for August, 2012

How to Ensure Your End-of-Life Wishes Are Respected

Wednesday, August 29th, 2012

How do you want to die? Do you want lifesaving treatments to be administered even if all brain activity has ceased? Is your family aware of your wishes? And perhaps the more important question, is your doctor aware of your wishes?

Included in a complete estate plan is a living will (or Advance Health Care Directive) nominating a health care agent and stating your wishes for end of life decisions and treatment. This document is clear and comprehensive, yet many times health care professionals still have a difficult time withholding life-saving treatments, even if administering them goes expressly against a patient’s clear wishes to the contrary.

Sometimes, signing a living will is not enough. To be sure your wishes will be followed, you need to include your family and your doctor in your decision-making process, even to the extent that your agent and your doctor sign a statement to the effect that they have reviewed and agree to follow your wishes.

Don’t be one of the growing numbers of people whose wishes for end of life treatment are ignored. Bring your living will or health care directive to your next doctor’s appointment to review with your physician. And ask your Orange County trusts and estates lawyer about any state specific forms to bolster your estate planning documents and ensure that your wishes are recognized.

If you’d like to learn more about living wills, advance health care directives, Power of Attorney for Health Care designations or any other aspects of estate planning, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.


Planning for Estate Taxes in 2013 and Beyond

Wednesday, August 29th, 2012

What will happen to estate taxes in 2013? Right now, you may as well try to predict what the weather will be on Jan. 1 than count on new laws from a contentious Congress still debating the scenarios.

The estate and gift tax exemptions that were set by the 2010 Tax Act are the most advantageous in almost a century, but these are slated to disappear on Jan. 1, 2013:

Estate, gift and generation-skipping transfer (GST) tax exemptions of $5.12 million for single taxpayers ($10.24 million for married taxpayers filing jointly) with a 35 percent maximum tax rate.

Portability provision that allows for the transfer of the unused portion of a deceased spouse’s estate tax exemption to a surviving spouse.

If Congress does nothing, then the lifetime estate and gift tax exemptions will fall to $1 million with estate taxes reset to 55 percent.

If the Obama administration plan prevails, the lifetime estate tax exemption will fall to $3.5 million with estate taxes reset to 45 percent. The gift tax exemption would remain at the 2001 level of $1 million.

This continued environment of uncertainty is why a lifetime relationship with your Orange County estate planning lawyer is so important. The reality is no one can predict what the estate tax situation will be at the time of your passing. So a plan, prepared by our office, that keeps up with your life and the law is the way to go to ensure your family pays the least amount of estate taxes no matter what Congress does.

If you’d like to learn more about minimizing taxes through estate planning, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.


What Happens to a Person’s Debts When They Die?

Tuesday, August 21st, 2012

Mortgages, loans, credit cards, even medical bills…nearly every estate planning lawyer is asked about what happens to a person’s debt when they die. It doesn’t seem quite fair for your descendants to be saddled with your debt, but it also doesn’t seem fair for creditors not to get the money that is owed to them, either.

There are a couple of scenarios that may play out when someone dies with debt. Both require the effort of the Personal Representative (or executor) and are based on your estate.

First, if your estate in Orange County is solvent, then debts will be paid from that before heirs get their share. “Solvent” refers to the fact that the assets of the estate have added up to be worth as much as or more than the amount of debt owed. So, if the deceased’s estate is worth $50,000 and he or she has debts totaling $25,000, the estate would be solvent. After the debt is paid off, the remainder of the estate can be distributed to the heirs.

If, however, the estate doesn’t hold enough value to pay for outstanding debts, it is considered “insolvent.” In these cases, the Personal Representative will have to spend some time going through the debts, possibly with a Newport Beach attorney, to prioritize which debts get paid first, in full, partially, or not at all. There are state and federal laws that help to determine how this process works. For example, state and federal regulations may state that medical bills take priority over credit card debt.

In situations where the estate is insolvent here in Orange County, the heirs will not be entitled to the assets, even if there was a will or trust in place. On the other hand, they do not have to take on the responsibility of paying for the debt, which is at least a relief. Still, it can certainly be a disappointment to discover that the home or other assets your kids expected to inherit will have to be sold off to pay for debts instead. In some states adult children may be expected to pay outstanding nursing home costs.

According to USA Today, more and more baby boomers and seniors are living in debt. There are several potential reasons for this, from medical and funeral expenses to unrealistic expectations about what is “deserved” at that point in life. Unfortunately, the final outcome often ends up costing your heirs some or all of their inheritance.

In order to ensure that your estate is solvent—or better yet, to leave no debt behind for your Personal Representative and heirs to deal with—it’s a great idea to work with your Orange County wills and estates attorney to set payoff goals and keep yourself and your estate on track. To get started with this process, simply call our Newport Beach law firm at (949) 260-1400 and ask to schedule a complimentary consultation with the mention of this article.


Finding the Right Special Needs Attorney in Orange County

Monday, August 20th, 2012

There are a lot of considerations that need to be made when it comes to Orange County special needs planning, and you want to be sure you have an attorney who is well-versed in your options.  All parents want to protect their children, and those with kids who have special needs sometimes find that they must take extra steps to make this happen.  An Orange County special needs lawyer can help make this a reality.

There are a number of qualified special needs lawyers in Orange County, but you are likely looking for someone who seems to truly understand your specific situation.  These days, a search for any sort of professional usually starts on the Internet.  You can use your favorite search engine to find qualified special needs planning lawyers in the Orange County area.  Another important resource is other families.  It’s likely that you know of other families in similar circumstances, and their recommendations often mean more than a pretty web site or a great per-hour fee.

Once you have a list of candidates, it makes sense to do a little pre-interview.  By asking each professional the same questions, you will have an apples-to-apples comparison when it comes time to make your choice.

Consider asking the following questions:

  • How many years’ experience do you have in Special Needs Planning?
  • What led you to this kind of work?
  • What is your overall educational and professional background?
  • How would you describe a Special Needs Trust and what it means for my family?
  • What are your typical fees?  Do you bill hourly or will I have the benefit of flat fees?
  • Do you recommend any specific products, and if so, are you affiliated with those companies?
  • Can you provide references of other families similar to mine who have used your Special Needs Planning services?

You’ll likely have other questions that are important to you.  For example, are there specific considerations that come into play when it comes to your child’s particular disability?  Are there other family members or caregivers that need to be involved in the planning process?  What government and other resources are available, and how does your special needs planning affect eligibility?

Of course, the overall goal is to find someone knowledgeable who can guide you as you put your plan together.  In the end, you should feel confident that you have created a plan that will protect and care for your special child when you are no longer able to do so yourself.

If you’re ready to talk with an experienced special needs attorney who can help you create a plan that protects your child and his or her future needs, please call our Newport Beach special needs attorneys at (949) 260-1400 and ask to schedule a Family Wealth Planning Session with the mention of this article.


Orange County Elder Lawyer Perspective: Legal Concerns for Caregivers

Monday, August 20th, 2012

Elder lawyers in Orange County work not just with our older clients, but also with their caregivers.  In many cases, this means their adult children who have or will be given power of attorney, not to mention those who just step up to help when something is needed.  There are some legal issues that seem to arise caused by people who see the elderly as targets or victims, and often it is the caregiver who is left to pick up the pieces.  A good Orange County elder lawyer may be able to help you prepare for, and hopefully avoid these pitfalls.

Unscrupulous Siblings

Unfortunately, caregivers may find themselves in the uncomfortable position of confronting a sibling who is taking advantage of the elderly parent.  It seems that the less responsible of a person’s children can sometimes find ways to “freeload” off of the parent, requesting money, gifts, and special favors that the parent cannot necessarily afford.

While it’s no fun, it may be necessary to step in and put a stop to this behavior.  This is much easier if the caregiver has a financial power of attorney in place.  Even then, it can be difficult to convince the parent that he or she needs to stop funding the sibling’s bad behavior.

Another concern in this area is that a sibling or siblings can also falsely accuse the caregiver of misconduct.  It could be that the sibling simply doesn’t understand the day-to-day responsibilities of taking care of the parents, or they may be jealous of the caregiver’s relationship with the parent.  Greed can also come into play, with the sibling wanting as much money as possible to be left in the parent’s estate for him or her to inherit.

Scam Artists

While unscrupulous siblings are certainly disheartening, the prevalence of strangers willing to take advantage of elderly people is absolutely infuriating.  From those who want to sell bogus or unnecessary insurance policies to those who will flat-out rob a person of their identity, caregivers need to be vigilant to keep their vulnerable loved ones protected.  Your Orange County elder lawyer can keep you apprised of common scams that are going around the area and will offer useful advice for how to keep these con artists out of your family’s accounts.

Lovers

A different group of people that are willing to take advantage of elderly folks are those who will insinuate themselves into the parent’s life as a boyfriend or girlfriend.  In some cases, these individuals may be considerably younger—what are commonly referred to as “gold diggers.” These people flatter the elderly person, providing him or her with attention and what appears to be love.  Instead, the “lover” is really interested in bleeding the elderly person’s bank account.  He or she may even be angling to be named in the will.

Working with an Orange County elder lawyer may afford some options for protection against someone who is obviously using your parent for financial gain.  To learn what documents you can put in place to ensure your loved one’s finances stay protected and managed by someone the senior trusts, simply give our office a call at (949) 260-1400 and ask to schedule a Family Wealth Planning Session.


Could You Be Responsible for Your Parents’ Long-Term Care Bill?

Friday, August 17th, 2012

Currently, 29 states have what is known as filial support laws, which means that children of destitute parents could be on the hook for unpaid long-term care bills.

Historically, usage of these laws has been uncommon, but with cutbacks to federally funded programs like Medicaid, some long-term care facilities are pursuing the children of indigent patients for payment.  At the least, these facilities are leveraging the law to pressure children to disclose their parents’ assets or assets that they may have transferred to their children.

In a recent Pennsylvania case, an appellate court ruled that a nursing home could recover unpaid expenses from a patient’s son, finding that the son had the means to pay.  This could prove to be an enticing development for nursing homes in other states with filial support laws.

Elder law experts in Orange County agree that the best defense is careful estate planning in advance of the time when parents may need financial help, considering strategies like long-term care insurance to fill any anticipated gaps.

If you’d like to learn more about planning for long-term care or have other estate planning questions, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.


Reality Check / Reframing – How do You Want Your Loved Ones to Live During Your Final Illness?

Friday, August 17th, 2012

Surveys show that most people have not named an agent to make health care decisions if they are unable to speak for themselves, nor have they directed in advance their wishes for their healthcare. The usual reasons given are that people do not want to confront their mortality and, for those being treated for a serious condition, feel that addressing it means they have given up fighting to live.

A recent study, however, indicates other reasons – people do not see the need because they mistakenly believe they will die quickly or they are uncertain about the course of their final illness. Dr. Katriina Hopper, who was intrigued by many patients and relatives of patients saying, “I didn’t think it would be like this” as the patient’s condition worsened and the end drew near, designed a study to find out what people expected.

Patient Expectations Study Sheds Light on Lack of Urgency for End-of-Life Planning

Dr. Hopper posed the following question to 185 patients who had advanced cancer, heart failure or lung disease and qualified for hospice (meaning they likely had six months or less to live):

Which of the following best describes what you think the course of your final illness will be?

A.will die suddenly
B. will die within a day or two of a serious complication
C. will die after prolonged illness
D. I don’t know.

Dr. Hopper’s survey also asked whether the patients were depressed, in pain, or had taken care of a sick person for a long time. These factors did not influence participants’ expectations – patients who were depressed or in pain were just as likely to answer “I don’t know” as those who weren’t. Surprisingly, even those who had taken care of a sick person for a long time were no more likely to think they would die after a prolonged illness as those who hadn’t been a caregiver.

About 25 percent thought they would die suddenly, or within a day or two of a serious complication, and about 40 percent responded “I don’t know”. All in all, about two-thirds thought they would die quickly or were uncertain.

This sheds some light on why so few people do their planning – they do not feel the need. If you think you will die suddenly or relatively quickly, or you are uncertain, you are not compelled to document your healthcare wishes and name the person you would want making decisions for you. It does not seem urgent.

Reality Check and Reframing: Your Final Care for Your Loved Ones

The reality check is that very few people die suddenly or in their sleep. It is more likely that one will die after a prolonged illness. So, there is a real need for this planning in most people’s lives.

By naming your healthcare agent (and alternates) and by specifying any treatments you do or do not want, you not only preserve your wishes, you also prevent your loved ones from arguing over who you would have wanted to make decisions and what decisions you would have wanted.

By developing a “care philosophy”, you help your agent and loved ones make decisions and make peace with those decisions. Is it helpful for your loved ones to see every last effort made? Or, would it be better for them if you were in a hospice setting or had a Do Not Resuscitate Order? Do you want your agent to be mostly concerned with your comfort and minimizing pain? Do you have a certain event that you are looking forward to and want to live until it happens? You could document your “care philosophy” in a letter or simply discuss it with your loved ones.

If you’d like to learn more about Healthcare Agent designations, Advanced Directives and other aspects of estate planning in Orange County, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.


Avoid These 10 Common Estate Planning Mistakes

Friday, August 17th, 2012

As an estate planning lawyer in Orange County, I see many of the same estate planning mistakes made time and again by people who either fail to plan properly or who use “do-it-yourself” estate planning websites or forms in an effort to save money.

Without professional guidance, this can cause more problems for your heirs and end up depleting estate assets by far more than what you could potentially “save” by doing it yourself online.

A qualified estate planning attorney or Personal Family Lawyer® can help you avoid these 10 common estate planning mistakes:

1.  Failure to leave any written documentation of your assets, including a list of your online accounts and passwords

2.  Failure to let family members know where to find important estate planning documents

3.  Failure to name a guardian for minor children or choosing a guardian who lives far away without planning for temporary, local guardianship (solved with a comprehensive Kids Protection Plan®)

4.  Failure to name recipients for your personal possessions

5.  Failure to designate beneficiaries for retirement and other financial accounts

6.  Failure to name secondary beneficiaries

7.  Failure to name alternative trustees or executors

8.  Failure to properly fund or title assets to any trusts you have established

9.  Failure to update your estate plan as life circumstances change

10.  Failure to create an estate plan of any kind and instead leaving it to the court system to decide how your assets will be distributed

If you’d like to learn more about how to avoid common estate planning mistakes that could cost your heirs dearly, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article


Newport Beach Wills and Estates Lawyer Answers, “What Happens to a Person’s Debts When They Die?”

Friday, August 10th, 2012

Mortgages, loans, credit cards, even medical bills…nearly every wills and estates lawyer in Newport Beach is asked about what happens to a person’s debt when they die.  It doesn’t seem quite fair for your descendants to be saddled with your debt, but it also doesn’t seem fair for creditors not to get the money that is owed to them, either.

There are a couple of scenarios that may play out when someone dies with debt.  Both require the effort of the Personal Representative (or executor) and are based on your estate.

First, if your estate in Orange County is solvent, then debts will be paid from that before heirs get their share.  “Solvent” refers to the fact that the assets of the estate have added up to be worth as much as or more than the amount of debt owed.  So, if the deceased’s estate is worth $50,000 and he or she has debts totaling $25,000, the estate would be solvent.  After the debt is paid off, the remainder of the estate can be distributed to the heirs.

If, however, the estate doesn’t hold enough value to pay for outstanding debts, it is considered “insolvent.”  In these cases, the Personal Representative will have to spend some time going through the debts, possibly with a Newport Beach attorney, to prioritize which debts get paid first, in full, partially, or not at all.  There are state and federal laws that help to determine how this process works.  For example, state and federal regulations may state that medical bills take priority over credit card debt.

In situations where the estate is insolvent here in Orange County, the heirs will not be entitled to the assets, even if there was a will or trust in place.  On the other hand, they do not have to take on the responsibility of paying for the debt, which is at least a relief.  Still, it can certainly be a disappointment to discover that the home or other assets your kids expected to inherit will have to be sold off to pay for debts instead.  In some states adult children may be expected to pay outstanding nursing home costs.

According to USA Today, more and more baby boomers and seniors are living in debt.  There are several potential reasons for this, from medical and funeral expenses to unrealistic expectations about what is “deserved” at that point in life.  Unfortunately, the final outcome often ends up costing your heirs some or all of their inheritance.

In order to ensure that your estate is solvent—or better yet, to leave no debt behind for your Personal Representative and heirs to deal with—it’s a great idea to work with your Orange County wills and estates attorney to set payoff goals and keep yourself and your estate on track. To get started with this process, simply call our Newport Beach law firm at (949) 260-1400 and ask to schedule a complimentary consultation with the mention of this article.


Orange County Estate Planning for Generation X

Friday, August 10th, 2012

When you think of Generation X, what comes to mind?  Many of us in Orange County fondly remember things like flannel shirts, grunge music, and movies like Reality Bites. Our vision of the generation that followed the Baby Boomers is firmly frozen in time.  But, Generation X is all grown up now, many with their own kids graduating from high school.

The members of this generation are no longer the angst-ridden youth trying to figure out where they fit in this world.  Instead, they are adults with real jobs, real retirement plans, life insurance and health problems.  Along with all these things, they are people who need to do their estate planning.  Lawyers in Orange County are working with more and more members of Generation X, but many still don’t seem to realize that estate planning applies to them.

Maybe they don’t feel that they’re old enough, or they believe they don’t have enough assets to need to put together a will or other legal documents.  The truth is, though, that these assumptions are false.

Preparing for the “Just In Case”

First of all, the best time to work with an Orange County estate planning attorney is when you are younger and healthy.  By doing so, you will already have the right documents in place should you suddenly become ill or injured.  Without a medical power of attorney, for example, the courts will decide who makes your medical decisions for you if you can’t.  Or, without a proper will or trust, the courts in Orange County will also decide who becomes the guardian of your children.  This alone should be enough to send Gen Xers running to their estate planning lawyers!

Just because you don’t have a lot of assets doesn’t mean that you shouldn’t take steps to protect what you have.  Again, if you die without a will in place, the courts will be making all of your decisions for you.  You may have always intended for your best friend to have that silver and turquoise necklace you bought together on spring break in 1992, but if you haven’t specified that in a will, then it will probably end up in a relative’s possession.

Planning for Your Financial Future

Finally, a will attorney in Orange County can help advise you on what steps you should be taking to prepare for retirement and beyond.  He or she can help direct you toward the best option for retirement accounts, what type of life insurance policy meets your needs, and how to ensure that your estate owes the least amount of taxes when you do die, therefore leaving more for your family and other heirs.

If you are ready to get started with this process of learning how to get your affairs in order and best protect your assets, your wishes and the people you love, give our Orange County lawyers a call at (949) 260-1400 and ask to schedule a complimentary planning session with the mention of this article.

 


Southern California Probate Attorney / Estate Planning Lawyer / Wills & Living Trusts Law Firm
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The estate planning law firm of Morgan Law Group, apc serves all cities in Orange County, including: Aliso Viejo, Anaheim, Balboa Island, Brea, Buena Park, Capistrano Beach, Corona Del Mar, Costa Mesa, Coto de Caza, Cypress, Dana Point, as well as estate planning in Foothill Ravnch, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, and estate planning and probate in Los Angeles, Mission Viejo, Newport Beach, and estate planning and probate law firm information in Orange, OC, Placentia, Rancho San Margarita, San Clemente, Santa Ana, Seal Beach, Tustin, Villa Park, Westminster, and Yorba Linda.