Fong Law Group

What’s so Bad About Having a Will Probated?

“One of the purposes of probate is to determine who receives the property of the decedent. If the account is jointly owned, we already know that the surviving joint owner owns the property at the time of death.”

The process of probating a will and why it matters, is reviewed by nwi.com in the article “Estate Planning: Do wills need to be probated?” When most people refer to probate, they typically mean that a court appoints or approves a personal representative and opens the estate. If that is what is being described, an estate plan can be established without opening a probate estate. Not all wills are probated.

Bear in mind that the only assets subject to probate, are those that are controlled by the will. Assets that the decedent owned in his or her name alone without beneficiary designations are probate assets. If the asset is owned in two people’s names or contains a beneficiary designation or is a POD—Payable on Death—or TOD—Transfer on Death—those assets are not probate assets.

One reason to probate an estate, is to determine who receives the property of the person who has passed. If the account is owned jointly in two people’s names, typically a husband and wife or parent and child, then the surviving joint owner becomes the full owner at the time of death. A bank or financial institution will probably want to see a death certificate to verify that the other person on the account has passed.

This is also true for a CD—Certificate of Deposit—if there are two names on it.  It also applies to any real estate that is held in two names. Ownership for these assets, properly titled in more than one name, are not a big deal, if the titles have been done properly.

Therefore, using joint ownership or naming beneficiaries for most or all of the assets, removes the need to probate much of the will. However, in some instances, some attorneys like to present the will for probate, but ask that a personal representative not be appointed, and no estate opened. This is called “spreading the will for record” and it preserves the will. Wills need to be presented for probate within the statutory deadline for your state. These timeframes can range from six months to within three years of the death of the decedent (your estate planning attorney will know your state’s laws on this matter). If this is not done, then the will may not be accepted by the court as valid.

By spreading the will, the will is preserved in the outside chance that an asset is uncovered in the future, even after the statutory timeframe has expired. When the beneficiaries of the will are not the same as family members found under intestate statutes, like a pour-over will, where the trust receives all the property under the will, it makes this strategy especially valuable. Spreading the will further ensures that the trust estate plan will be carried out. Trusts are rarely presented to the court for probate.

In some regions, probate is a quick and relatively painless process. Depending on the situation, there may be little gained by over-engineering the estate just to avoid probate. Speak with your estate planning attorney about probate and also determine how much of your estate will be probate assets.

Reference: nwi.com (Jan. 20, 2019) “Estate Planning: Do wills need to be probated?”

Empty Nest? Time to Focus on the Nest Egg

“Each child reduces the household wealth of Americans between the ages of 30 and 59 by about 3% or 4%, according to data from the Center for Retirement Research at Boston College.”

After decades devoted to rearing children, it happens: parents realize that they’ve neglected their own retirement savings. Once the nest empties out, says USA Today, it’s time to refocus on building up savings accounts. How do you do it? The answers are in the article “5 ways empty nesters can boost their savings and turbocharge their 401(k)s.”

Here’s a five-step plan for making this happen.

Up the savings side. Once you’re not spending cash on your kids for clothes, college funds, cars and car insurance, that cash can move into retirement savings. The maximum for a 401(k) in 2019 is $19,000, and if you are over age 50, you can add $6,000 as a “catch-up” contribution. For annual IRA contributions, the limit is $5,000 with a catch-up of $1,000. Increase your paycheck deductions to the percentage, that will get you to the IRS limits. Put savings first.

If there’s a match, don’t miss it. Lucky enough to work for a company that matches all or part of your retirement savings? Do whatever you can to take full advantage of that free money. The most common company match is 50 cents per dollar on 6% of pay, according to Vanguard Group, which says that 70% of 401(k) plans had this match in place in 2017. Let’s say you earn $75,000 and save 6% of your pay. The company would give you $2,250, which means you’d be boosting your savings to $6,750.

Max out savings. The more money that is saved, the faster the nest egg grows. A married couple that socks away a combined $50,000 in pretax dollars every year in their 401(k)s, can find themselves with an additional $250,000 in five years. That’s not counting company matches or any investment growth.

Catch-up as fast as you can. Over 50? The IRS promotes savings by allowing catch-up contributions. An additional $6,000 is allowed in a 401(k). Parents who were paying for summer sleep away camp or riding lessons, can move those dollars into their own retirement accounts.

Control spending. The natural inclination when cash flow loosens up, is to spend more. Many people decide to live it up during these years, feeling like they deserve to enjoy themselves after dedicating so many years to their children. There’s a balance that needs to be found between enjoying and over-spending. Most families increase their retirement savings when the children are gone, but not by enough. Ramping up spending, instead of saving, means years of missed opportunities to build your retirement accounts.

The best advice is to take the long view. Savings instead of putting a convertible in the garage or taking lavish vacations, when a more modest approach is equally enjoyable, could change the nature of your retirement.

Reference: USA Today (Jan. 14, 2019) “5 ways empty nesters can boost their savings and turbocharge their 401(k)s”

Still Wondering Why You Need to Review an Estate Plan? 還在想為什麼你需要審查您的資產產計劃？ (中英對照）

“An estate plan is the guide to how you want your personal and financial affairs to be handled, in the event of your incapacity or death. As life changes, your guide changes with it.”

One of the most common mistakes in estate planning is thinking of the estate plan, as being completed and never needing to be reviewed. That is similar to taking your car for an oil change and then simply never returning for another oil change. The years go by, your life changes and you need an estate plan review.

The question posed by the New Hampshire Union Leader in the article “It’s important to periodically review your estate plan” is not if you need to have your estate plan reviewed, but when.

Most people get their original wills and other documents from their estate planning attorney, put them into their safe deposit box or a fire-safe file drawer and forget about them. There are no laws governing when these documents should be reviewed, so whether or when to review the estate is completely up to the individual. That often leads to unintended consequences that can cause the wrong person to inherit, fracture the family and leave heirs with a large tax liability.

A better idea: review the estate plan on a regular basis. For some people with complicated lives and assets, that means once a year. For others, every three or four years works. Some reviews are triggered by changes in life, including:

• Marriage or divorce
• Death
• Large changes in the size of the estate
• A significant increase in debt
• The death of an executor, guardian or trustee
• Birth or adoption of children or grandchildren
• Change in career, good or bad
• Retirement
• Health crisis
• Changes in tax laws
• Changes in relationships to beneficiaries and heirs
• Moving to another state or purchasing property in another state
• Receiving a sizable inheritance

What should you be thinking about, as you review your estate plan? Here are some suggestions:

Have there been any changes to your relationships with family members?

Are any family members facing challenges or does anyone have special needs?

Are there children from a previous marriage and what do their lives look like?

Are the people you named for various roles—power of attorney, executor, guardian and trustees—still the people you want making decisions and acting on your behalf?

Does your estate plan include a durable power of attorney for healthcare, a valid living will, or if you want this, a DNR (Do Not Resuscitate) order?

Has your estate plan addressed the possible need for Medicaid?

Do you know who your beneficiary designations are for your accounts and are your beneficiary designations still correct? Your beneficiaries will receive assets outside of the will and nothing you put in the will can change the distribution of those assets.

Have you aligned your assets with your estate plan? Do certain accounts pass directly to a spouse or an heir? Have you funded any trusts?

Finally, have changes in the tax laws changed your estate plan? Your estate planning attorney should look at your state, as well as federal tax liability.

Just as you can’t plant a garden once and expect it to grow and bloom forever, your estate plan needs to be reviewed, so that it can protect your interests as your life and your family’s life changes over time.

Reference: New Hampshire Union Leader (Jan. 12, 2019) “It’s important to periodically review your estate plan”

“資產計劃是您在喪失工作能力或去世時如何處理個人和財務事務的指南。隨著生活的變化，你的指引隨之改變。“

資產規劃中最常見的錯誤之一是認為資產計劃已經完成並不需要再審查。這就好像於您將汽車換油然後就不再換油了。隨著歲月流逝，你的生活起了變化，你是需要審查您的資產計劃。

New Hampshire Union Leader在“It’s important to periodically review your estate plan”一文中提出問題是您要何時去審查您的資產計劃。

大多數人從他們的資產規劃律師取得他們的遺囑和其他文件的原檔，將文件放入他們的保險箱或防火文件抽屜中接著便忘記了。沒有法律規定應何時審查這些文件，因此是否或何時審查完全取決於個人。這通常會引致意想不到的後果，導致錯誤的人繼承，破壞家庭並給繼承人帶來巨額稅務。

更好的意見是：定期審查資產計劃。對於一些生活和資產複雜的人來說，應每年審查一次。對於其他人，每三到四年審查一次。有些是因為生活起了變化而需要審查，包括：

• 婚姻或離婚
• 死亡
• 資產發生巨大變化
• 債務大幅增加
• 遺囑執行人，監護人或受託人去世
• 子女或孫兒的出生或收養
• 職業變化，無論好壞
• 退休
• 健康危機
• 稅法的變化
• 與受益人和繼承人的關係發生變化
• 搬到另一個州或在另一個州購買房產
• 繼承了可觀的遺產

在審查您的資產計劃時，您應該考慮什麼？以下是一些建議：

您與家人的關係是否有任何變化？

有沒有家人陷於困境之中或是有沒有人有特殊需求？

以前的婚姻中是否有子女，他們的生活如何？

您為各種角色命名的人 - 律師，遺囑執行人，監護人和受託人 - 仍然是您想要為您做出決定並代表您行事的人嗎？

您的資產計劃中是否包括醫療授權書，有效的遺囑，或者如果您需要，還包括DNR（不要急救指令）？

您的資產計劃中是否有提到醫療補助 (白卡) 的需求？

您知道您銀行帳戶的指定受益人是誰以及您的指定受益人是否仍然正確？您的受益人繼承這些遺囑之外的資產，而您遺囑中的內容並不會推翻這些資產的分配。

您是否將您的資產與資產計劃保持一致？某些帳戶是否直接傳給配偶或繼承人？你有把您的資產注入您的信託中嗎？

最後，稅法的變化是否改變了您的資產計劃？您的資產規劃律師應該查看您所在的州以及聯邦稅務。

正如你不能一下子建立了一個花園並期望它永遠成長和開花一樣，你的資產計劃需要進行審查，這樣可以保障你的利益，因為你的生活和家庭情況會隨著時間而變化。

參考：New Hampshire Union Leader (Jan. 12, 2019) “It’s important to periodically review your estate plan”

Estate Planning When a Family Member Is an Addict

“According to the Centers for Disease Control and Prevention, more than 42,000 people lost their lives due to opioid use in 2016, a fivefold increase from 1999.”

Opioid addiction has reached epidemic proportions, with drug overdoses now the leading cause of death for Americans under age 50. Families struggling with the emotional and financial damage, are the subject of the article “How to leave money to a family member with an addiction” from MarketWatch.

Even good children from loving families become addicted and are driven to steal and lie to get money to support their habits. Parents of children are wracked by guilt and anger. The stories of families spending hundreds of thousands of dollars in an effort to help their children are growing in number—as are the number of families who exhaust their retirement savings paying for rehabilitation and related services.

Trusted family advisors, including estate planning attorneys and financial advisors, find themselves working with families to protect the family finances and the well-being of their addicted family members. The fallout from addiction creates many secondary problems for families.

Estate planning for a family grappling with addiction addresses many different issues, not just inheritance. Guardianship of minor children and protecting the interests of family members are among the issues that estate planning addresses. A mindfully created estate plan can serve as a resource and a means of protecting a legacy.

Lump sum distributions or full bequests to an adult struggling with addiction can be deadly, if the person uses the funds to purchase large quantities of drugs. At the same time, writing someone out of the will completely and withdrawing all support, can be devastating to the addicted adult and the family.

Creating a trust can help to protect assets and ensure that there is some degree of accountability in how the distributions are made. Incentive trusts, where a certain behavior or accomplishment markers are determined, can be used to encourage behaviors.

This may mean that the addicted adult does not receive funds, until after passing a drug test, attending a certain number of treatment sessions or entering a residential rehabilitation program.

Incentive trusts are part of a special area of estate planning. Therefore, it is necessary to work with an attorney who has experience with trusts and with incentive trusts. Ideally, the attorney who helps your family, will be one who is also familiar with the impact of addiction on families.

Creating incentives for positive outcomes includes having consequences when the person fails to meet the terms of the trust.

In this situation, a trustee who is extremely trustworthy and not prone to being manipulated is necessary. They will need to make sure the person adheres to the requirements and while they may be given certain levels of discretion, this person will need to be strong-willed enough to withstand a strong-minded, potentially aggressive, addict.

This kind of trust may require the beneficiary to submit to specific terms and provide access to their health records, which itself requires a HIPAA waiver for the trustee.

Creating an estate plan with an incentive trust presents many challenges for the family and the trustee. It may well become a highly charged, emotional process. However, talking about these issues openly is part of preparing for the future. Concerns about what will happen to an addictive member of the family after the parents are gone, will hopefully create some peace of mind in a turbulent setting.

Reference: MarketWatch (Jan. 14, 2019) “How to leave money to a family member with an addiction”

Should a Professional Serve as a Trustee for Your Estate?

“Typically, criticisms of trustees center around fees, locality and beneficiaries’ perceived lack of access to funds and to the administrator.”

Officers at trust companies often hear comments that it hardly seems necessary to have a professional involved in administering an estate. After all, they ask, how difficult can it be? Serving as a trustee can actually be extremely complex, says Kiplinger in the article that explains it all: “Why You May Need a Pro Trustee: Trust Administration is Not Just Common Sense.” Here’s one of many examples of how much can go wrong.

Let’s call our client Linda. She wants to identify a successor trustee. Linda’s parents had identical estate plans with trusts that were set up for Linda and her two siblings Jack and Diane. Linda was the family’s responsible one, so she received her share in each estate outright and served as the trustee for the other separate trusts, two for Jack and, two for Diane, since the second of her parents died some 10 years ago. This is not unusual—parents will often give the responsible person in the family, the role of trustee, when their siblings are seen as less likely to perform the necessary tasks.

These four trusts were close in value, with about $440,000 in each. They were identical in other ways: the trustee had the power to pay from income and principal each year for the beneficiary’s health, maintenance and support, but there was no requirement to distribute anything. Linda had done a great job, in keeping with her reputation. For 10 years, she recorded every transaction. Because she knew her siblings resented her serving as trustee, she never paid herself a fee.

Linda was tired, and she wanted to let someone else be in charge of the trusts.

When the trusts were presented to an institutional trust officer, it was clear why the trusts had never been merged. Linda’s mom had executed an amendment to the estate plan, after Linda’s dad died that ensured that when these siblings passed (that would be Jack and Diane), the trusts would pass to their descendants. Linda’s mom executed this amendment, so that when Jack and Diane passed away, the trust from the mother would be divided among her surviving children. This meant that Linda would get another share, and Jack and Diane’s children would get less benefit from that trust.

Linda’s mom thought she was doing a good thing. However, her decision put Linda in a bad position. She became an “interested” trustee, with the power to make decisions that would eventually put more funds into her pockets or diminish her share. Of course, that would only happen if she outlived her siblings.

Linda had been diligent and responsible, insuring that the trusts had the exact same asset allocation and investments, paying out income from the trust and when one called asking for money, giving both the same additional amount from the mother’s trust and the father’s trust, even though any distributions made from the mother’s trust make her less likely to receive a larger share in the future. She also made the same distribution for the other sibling, to keep things even.

However, Linda’s actions, while seemingly very prudent and fair, could be interpreted as a breach of trust that leaves her open to a lawsuit judgment against her.

Her sister Diane had few or no other income sources. Each year, she spent every penny she got, just to get by. Diane requested additional distributions every year. When Diane dies, Jack will receive an additional share of Diane’s trusts, if he survives her.

Jack had plenty of income and assets. If Diane survived him, she’d receive a share of one of his trusts. But wait—Jack’s been receiving funds from the trust that was to have benefited his spouse and dependents, not Diane. Therefore, while Linda’s been trying to keep everything fair, she has actually been undermining the trusts that may pass to Jack’s descendants, by distributing funds Jack didn’t even need. Linda could have made distributions from her mother’s trusts to increase the chances that Jack’s and Diane’s descendants would receive a greater share at their parent’s death.

Linda didn’t see the larger picture, and as a result has made 10 years of decisions that could create a serious financial problem for herself, if one of her siblings is litigious.

This is one example of how even the best of intentions and integrity have the potential to create a trust nightmare. An estate planning attorney would have seen the vulnerabilities in this distribution plan and advised the trustee how to best deal with the administration of the trusts to protect themselves and the other heirs.

Reference: Kiplinger (Jan. 14, 2019) “Why You May Need a Pro Trustee: Trust Administration is Not Just Common Sense”

Without a Plan, Your Estate Could be at Risk 沒有計劃，您的資產可能會面臨風險 (中英對照)

“Although the Tax Cuts and Jobs Act of 2017 eliminated the risk of estate tax liability exposure for 99% of the estates, your estate is still at risk.”

The unknown events of life include financial perils. They don’t disappear just because you try to ignore them. There are more threats to your financial future and personal health than an estate tax, says Newsmax Finance in its article “Your Estate is at Risk.” There is also legal liability, which is a commonplace event in our increasingly litigious society.

For many people, the first experience with litigation is a divorce. Even in the best of circumstances, it’s a difficult situation. In a bad situation, it’s a nightmare for all concerned. What would happen if you became disabled? It’s more likely that someone will become disabled during the course of their life than that they will die prematurely.

Do you have a health care power of attorney, so someone you trust is empowered to make decisions on your behalf if you became disabled? What about a durable power of attorney so a person you trust, who also has some financial savvy, can take over for you if you can’t do things, like pay bills or manage your business?

If you don’t have these documents in place, a court-appointed person will be assigned as your guardian. That is not something you want to happen.

If you’ve created a private business, you also need to plan for succession. Too many business owners let their businesses die along with them, leaving families, employees and clients stranded. Transitioning a business for succession or to be managed in your absence takes planning.

All of these issues can be dealt with in an estate plan, which you should have created for you by an estate planning attorney. The attorney should be someone you trust, who has experience helping people with the same challenges as your situation, whether that’s a blended family or a privately held family business.

Estate planning attorneys know how to use certain methods to help individuals and families make the most of their assets, limit their tax liabilities and plan for the future. There are many different tools available, from different types of trusts to the basics, like a will, power of attorney, and health care power of attorney, to make sure you and your family have the correct protection in place.

Going through the estate planning process is a useful experience, since it gives you and your spouse a chance to review your life’s accomplishments from a long-term perspective, prepare for events like retirement or funding a child or grandchild’s college education and taking care of this important element of adulthood.

Reference: Newsmax Finance (Jan. 14, 2019) “Your Estate is at Risk”

“儘管2017年的減稅和就業法消除了99％的徵收遺產稅責任的風險，但您的資產仍處於風險之中。”

未知的事包括財務危機。它們不會因你試圖忽略而消失。 Newsmax Finance在其文章“Your Estate is at Risk.”表示，您將來的財政和個人健康比遺產稅的威脅更大。還有法律責任，這在我們訴訟日益增加的社會中是一件很普遍的事。

對很多人來說，第一次訴訟經歷就是離婚。即使在最好的情況下，這仍是一個困擾。在糟糕的情況下，這對所有有關的人來說都是一場噩夢。如果你成為殘疾人士會怎麼樣？更有可能的是，有些人在他們一生中會變成殘疾，而不是他們過早去世。

您是否擁有醫療授權書，如果您成為殘疾人士，您信任的人是否有權代表您做出決定？您是否擁有一份財務授權書讓您信任的人可以在您失去能力做某些事情，比如支付賬單或管理您的財務時為您處理？

如果您沒有這些文件，法庭可指定某人為您的監護人。這是你不想要發生的事情。

如果您已成立了私人業務，您還需要計劃繼任問題。太多企業擁有人讓他們的企業跟他們同去，使家庭，員工和客人陷入困境。透過規劃繼任在您缺席的情況下業務仍得以營運。

所有這些問題都可以在資產計劃中處理，您應該找資產規劃律師為您成立資產計劃。律師應該是您信任的人，而富有經驗幫助跟您情況相似的人，無論是混合家庭還是家族企業。

資產規劃律師知道使用哪些方案去幫助個人及家庭如何充分利用其資產，減輕稅務負擔並規劃將來。有許多不同的文件可供選擇，從不同類型的信託到基本的如遺囑，財務授權書和醫療授權書，以確保您和您的家人得到適當的保障。

規劃資產這過程是有用的體驗，因為通過規劃資產可讓您和您的配偶有機會對您們的生活從長計議，為退休或資助子女或孫兒的大學教育等事情做好準備。這是作為成年人需要做的重要事情。

參考:Newsmax Finance (Jan. 14, 2019) “Your Estate is at Risk”

Yes, You Have to Pay Taxes on Retirement Account Withdrawals—and On Time

“I had never worked with a financial advisor, so I didn’t really understand that there would be a specific age that would come along, regardless of whether or not I was working, and bang, I would have to withdraw this money, whether or not I needed it,” he says.

Once you celebrate your 70^th birthday, you may start seeing a lot of notices in the mail from financial institutions about taking withdrawals from IRAs and other kinds of retirement accounts. Those letters are going to arrive, even if you are still working and have no plans to retire, says Money, in an article titled “Don’t Miss This Key Tax Deadline.”

The problem is, the IRS doesn’t care whether you are working or want to start taking withdrawals. It also does not care if you want that money to keep growing tax free. The agreement you made back when you started putting money into those accounts, was that you could contribute pre-tax dollars and deferred paying income tax on that money and any earnings. However, once you turn 70½, Uncle Sam wants his share.

Starting the year that you turn 70½, Required Minimum Distributions or RMDs begin, and you must pay ordinary income taxes on it. The penalty is expensive: you’ll have to pay the IRS half of what you should have withdrawn, so you don’t want to miss this deadline.

A recent survey from Nationwide showed that only 13% of people who are 65 and still working, were able to identify when they will need to start taking RMDs. The RMD is a percentage of your total assets, based on your age and life expectancy. Let’s look at these two general examples: say you are 70½ this year, and you have $200,000 in assets–your RMD is $7,300. If you are 76 and have the same asset value, then you owe the IRS $9,100. Your tax liability for RMDs should be calculated with the help of your estate planning attorney and your accountant.

How you take these distributions could have a big impact on your tax bill. For many people, the RMD bumps them into a higher tax bracket, when they are combined with other retirement income sources. Another question to address is: how will the distribution impact your Social Security benefit?

By the time you start getting those notices in the mail, you should have an idea of what your retirement income will be and how to make the RMDs work within your budget. What is the biggest problem that people run into? They don’t know about these required distributions, or their tax liability, and are suddenly faced with a penalty on top of a tax bill. It’s not a happy surprise.

Roth accounts offer considerable flexibility, since the money you withdraw is post-tax. They are not subject to RMD rules, while the owner is living. RMD rules for Roth 401(k) accounts do apply.

The only way to completely avoid RMD taxes, is to donate the RMD to a qualifying non-profit institution. This is a way to avoid taking the RMD, if you don’t need the income. You will avoid paying any taxes on it. There is a $100,000 annual limit on this generous strategy.

Another strategy if you don’t need the proceeds from the RMD: use the money to open a 529 college fund for a child or grandchild and fund that account. You’ll still have to pay taxes on the RMD, but the college savings account will grow tax free.

The more you can control your RMDs, which means advance planning, the better. This is something that should be integrated with your entire estate plan, which has (or should have) a tax planning component.

Reference: Money (January/February 2019) “Don’t Miss This Key Tax Deadline”

Second Time Around Money Tips

“Constant negotiating about who pays what bill or how household costs will be split, is enough to stress any couple. Instead, find a systematic way to cover regular costs.”

Whether your second spouse is the complete opposite of the first or a new and improved version of the original, second marriage finances are usually different than the first. Keeping things separate may be more comfortable at the start, but AARP Magazine wonders if that is still the right way to go after a decade in the article “4 Money Tips for Second Marriages.”

Did you have a prenup before your second marriage? It’s not a big deal. You can also do a post-nuptial agreement. You can have either one one drawn up and put in a drawer. Chances are you came to the marriage with different incomes, assets and children. Talk about what is fair and come up with a document that works for both of you.

Do you have a system for paying ongoing household costs? One solution is a household account to which both partners contribute, with both contributing a certain amount, depending on income and asset levels. Some couples have a joint credit card, just like first-time marrieds, so every time you use the card, you’re not negotiating all over again about who is paying for what.

You might need help with managing your finances. If one of you is going to retire in the near future, how will that impact your finances? Can the person who is retiring first, wait to tap retirement savings before claiming their Social Security benefits? You need a strategy that will work for both spouses, and it must take into account your ages, retirement dates, assets and any health issues.

Different investment portfolios may be needed, if you have different investment comfort levels. Women are traditionally more conservative than men. Talk about your comfort levels with stock purchases and other kinds of investments. If you came to the marriage with a significant portfolio and a financial advisor, did you stay with your advisor or switch to your spouse’s? After 10 years, are you ready to combine accounts? Or, if for estate planning purposes, does it make sense to keep them separate?

If your second marriage has made it past the 10-year mark, when was the last time you reviewed your estate plan and your designated beneficiaries? We hope you updated your wills and reviewed all  your accounts with named beneficiaries shortly after you were married, but if not, now would be the time to do this important task. You don’t want anyone’s ex receiving a large IRA or the proceeds from a life insurance policy.

This may be the time to consider your attitudes towards “mine and “ours.” For some people, the 10-year mark gives them the security that their marriage is a keeper and they begin to let go of some of the separated assets. For others, there’s no need to blend assets or accounts and it’s not a reflection of their feelings about the marriage, but just what they are comfortable with.

Reference: AARP Magazine (January 2019) “4 Money Tips for Second Marriages”

Here’s Why You Need an Estate Plan in 2019 為何您在這年需要一個資產計劃 (中英對照)

“Besides new exercise regimes and attempts at savings accounts, from a legal perspective, the new year is the perfect impetus for tackling life’s perennial to-do list.”

The New Year sees young adult clients calling estate planning attorney’s offices. They are ready to get their estate plans done because this year they are going to take care of their adult responsibilities. That’s from the article “Estate Planning Resolutions for 2019: How To Be A Grown-Up in The New Year” in Above The Law. It’s a good thing, especially for parents with small children. Here’s a look at what every adult should address in the New Year:

Last Will and Testament: Talk with a local attorney about distributing your assets and the guardianship of your young children. If you’re over age 18, you need a will. If you die without one, the laws in your state will determine what happens to your assets, and a judge, who has never met you or your children, will decide who gets custody. Having a last will and testament prevents a lot of problems, including costs, for those you love.

Power of Attorney. This is the document used to name a trusted person to make financial decisions if something should happen and you are unable to act on your own behalf. It could include the ability to handle your banking, file taxes and even buy and sell real estate.

Health Care Proxy. Having a health care agent named through this document gives another person the power to make decisions about your care. Make sure the person you name knows your wishes. Do you want to be kept alive at all costs, or do you want to be unplugged? Having these conversations is not pleasant, but important.

Life Insurance. Here’s when you know you’ve really become an adult. If you pass away, your family will have the proceeds to pay bills, including making mortgage payments. Make sure you have the correct insurance in place and make sure it’s enough.

Beneficiary Designations. Ask your employer for copies of your beneficiary designations for retirement accounts. If you have any other accounts with beneficiary designations, like investment accounts and life insurance policies, review the documents. Make sure a person and a secondary or successor person has been named. These designated people will receive the assets. Whatever you put in your will about these documents will not matter.

Long-Term Care and Disability Insurance. You may have these policies in place through your employer, but are they enough? Review the policies to make sure there’s enough coverage, and if there is not, consider purchasing private policies to supplement the employment benefits package.

Talk with your parents and grandparents about their estate plans. Almost everyone goes through this period of role reversal, when the child takes the lead and becomes the responsible party. Do they have an estate plan, and where are the documents located? If they have done no planning, including planning for Medicaid, now would be a good time.

Burial Plans. This may sound grim, but if you can let your loved ones know what you want in the way of a funeral, burial, memorial service, etc., you are eliminating considerable stress for them. You might want to purchase a small life insurance policy, just to pay for the cost of your burial. For your parents and grandparents, find out what their wishes are, and if they have made any plans or purchases.

Inventory Possessions. What do you own? That includes financial accounts, jewelry, artwork, real estate, retirement accounts and may include boats, collectible cars or other assets. If there are any questions about the title or ownership of your property, resolve to address it while you are living and not leave it behind for your heirs. If you’ve got any unfinished business, such as a pending divorce or lawsuit, this would be a good year to wrap it up.

The overall goal of these tasks is to take care of your personal business. Therefore, should something happen to you, your heirs are not left to clean up the mess. Talk with an estate planning attorney about having a will, power of attorney and health care proxy created. They can help with the other items as well.

Reference: Above The Law (Jan. 8, 2019) “Estate Planning Resolutions for 2019: How To Be A Grown-Up in The New Year”

“除了新的制度和儲蓄賬戶，從法律角度來看，新的一年是解決常年待辦事項清單的最佳時機。”

新年時看到年輕的成年客戶打電話給資產策劃律師說他們已準備好完成他們的資產計劃，因為今年他們將為作為成年人而負上責任。這是來自“Estate Planning Resolutions for 2019: How To Be A Grown-Up in The New Year” 的文章。這是一件好事，特別是對於有子女的父母。以下是每個成年人在新的一年應該解決的問題：

遺囑：與當地律師討論如何分配資產和子女監護權的問題。如果你超過18歲，你便需要遺囑。如果你在沒有遺囑的情況下去世，那你所在州的法律將決定你的資產如何處置，而從未見過你或你的子女的法官將決定誰得到監護權。擁有遺囑可以為你所愛的人避免許多問題，包括費用。

財務授權書。這是用於命名您信任的人在您發生事情時並且您無法處理時為您做出財務決定。它可能包括處理您的銀行賬戶，提交稅收甚至購買和出售房子的權力。

醫療授權書。通過此文件命名您的醫療代理人去決定您的醫療護理。確保您所指定的人清楚知道您的意願。你想不惜一切代價生存下去，還是想要拔管？這種對話並不愉快，但很重要。

人壽保險。這就是你知道自己真的變成成年人的時候。如果您去世，您的家人將獲得賠償以支付賬單，包括支付貸款。確保你有正確的保險，並確保它是足夠的。

指定受益人。向您的雇主拿您的退休賬戶的指定受益人的副本。如果您有任何其他賬戶有指定受益人，如投資賬戶和人壽保險，請查看文件。確保已經有指定受益人和繼任受益人。這些指定人將獲得資產。儘管您把這些文件寫在遺囑上亦沒關係。

長期護理和殘疾保險。您的雇主可能提供這方面的保險，但這些保險是否足夠？檢查保單以確保有足夠的覆蓋範圍，如果不夠，請考慮購買私人保險以補助雇主提供的保險。

與您的父母和祖父母討論他們的資產計劃。當子女帶頭並成為負責任的一方時，幾乎每個人都經歷了這個角色轉換期。他們是否已有資產計劃，文件在哪裡？如果他們沒有做任何計劃，包括醫療補助計劃，現在是一個好時機。

葬禮安排。這可能聽起來很嚴肅，但如果你可以讓你的親人知道你想要您的葬禮，埋葬，追悼會等等如何安排，你就會為他們省卻不少煩惱。您可能想購買一份小額人壽保單，只是為了支付您的埋葬費用。對於您的父母和祖父母，了解他們的意願，以及他們是否有任何計劃或購買。

庫存擁有權。你擁有什麼？這包括金融賬戶，珠寶，藝術品，房地產，退休賬戶，可能包括船隻，收藏汽車或其他資產。如果您對您的財產擁有權或所有權有任何疑問，請在生時解決，不要將留給您的繼承人。如果您有任何未完成的事情，例如待批的離婚或訴訟，這將是很好的一年來作總結。

這些任務的總體目標是管理好您的個人事務。因此，如果發生了什麼事情，你的繼承人不用為您清理。與資產規劃律師討論成立遺囑，財務授權書和醫療授權書。他們也可以幫您解決其他問題。

參考: “Estate Planning Resolutions for 2019: How To Be A Grown-Up in The New Year”

Who Will Pay for Your Nursing Home Care? 您的養老護理費由誰來支付? (中英對照)

“Health insurance coverage will often pay for the first few days or months at the nursing home, but that eventually stops.”

It’s hard for everyone in the family, when a beloved parent or grandparent must enter a nursing home, because they can no longer live on their own. Often the result of a physical or mental decline, the difficultly is compounded by worries about how to pay for the care, reports The Ledger in the article “The Law: Are you eligible for Medicaid nursing home coverage?”

Once health insurance coverage ends, the cost of care becomes enormous, with the monthly cost for a private-pay resident at nursing homes often exceeding $10,000 a month. What usually happens? Residents can’t afford the care and only have two options: qualify for Medicaid Nursing Home coverage, or sell every asset they can, impoverish the spouse, and ask adult children or other family members for help. Most people contact an elder law attorney and explore becoming eligible for Medicaid Nursing Home coverage.

Let’s use the state of Florida for an example of how to qualify for this coverage. A person must pass a three-part test that examines their assets, income and health, at the time the application is filed.

Income. As of Jan. 1, 2019, you could have a maximum of $2,313 per month in income (before deductions) to be eligible for Medicaid Nursing Home coverage. If your income was above that number, then legal planning is necessary to create a qualified income trust. Timing is extremely important, because if the trust is not set up correctly or in a timely fashion, you will not qualify for Medicaid.

There is a common mistake made about a spouse’s income being too high. It’s happily not true: a spouse’s income can be unlimited, and it does not impact a Medicaid applicant’s eligibility for benefits.

Assets. As of Jan. 1, 2019, you may have a maximum of $2,000 of countable assets and be eligible for Medicaid Nursing Home coverage. If the assets are above that threshold, there are a number of acceptable legal options to help the individual become eligible. There are two types of asset classes to consider when applying for Medicaid Nursing Home coverage: countable and non-countable.

Some non-countable assets are as follows: In Florida, homestead property up to $585,000 in value, one automobile, a prepaid burial contract and term life insurance without a cash value. Countable assets include bank accounts, investment accounts, life insurance with cash value, CDs and annuities.

As of Jan. 1, 2019, a spouse may have a maximum of $126,420 of countable assets, without having an impact on their spouses’ Medicaid eligibility.

An elder law attorney should be consulted to help the family understand the income and asset tests and create a strategy to help the individual qualify, if they anticipate needing Medicaid Nursing Home coverage. It’s best to do this well in advance, if possible.

Reference: The Ledger (Jan. 9, 2019) “The Law: Are you eligible for Medicaid nursing home coverage?”

“健康保險通常可支付在療養院幾天或幾個月的費用，但最終會終止。”

當心愛的父母或祖父母必須住進養老院時，這對家中的每個人來說都很困難，因為他們不能再照顧自己了。 Ledger在文章“The Law: Are you eligible for Medicaid nursing home coverage?”中說，這是身心倒退的結果，困難是擔憂如何支付醫療費。

一旦健康保險覆蓋範圍沒了，護理費用就會變得很大，養老院的私人住戶每月的費用通常超過每月一萬美元。一般會發生什麼問題？就是居民負擔不起，而選擇只有兩種：合資格獲得療養院補助的保險，或賣掉他們的所有資產，使配偶破產，並向成年子女或其他家人求助。大多數人會聯繫老人法律師並查看他們是否獲得療養院補助的資格。

讓我們用佛羅里達州的一個例子來說明如何獲得此資格。在提交申請時，必須通過三部分測試，包括檢查他們的資產，收入和健康狀況。

收入。自2019年1月1日起，您每月最多只可有2,313美元的收入（扣除前）才有資格獲得療養院補助。如果您的收入高於這數字，則需要合法的的規劃去成立一個合資格的收入信託。時間安排非常重要，因為如果沒有正確或及時地建立信託，您將無法獲得療養院補助。

常犯的一個錯誤是配偶的收入過高。可幸的是，這不是真的：配偶的收入可以是無限的，並且它不會影響療養院補助申請人的福利資格。

資產。自2019年1月1日起，您可擁有最多二千美元的資產便有資格獲得醫療補助。如果資產高於此值，則有許多合理合法的途徑可幫助獲得資格。申請療養院補助時，有兩種類型的資產類別需要考慮：不可豁免和可豁免的。

一些可豁免的資產如下：在佛羅里達州，可擁有房產價值高達585,000美元，一輛汽車，預付葬禮合同和沒有現金值的定期人壽保險。不可豁免資產包括銀行賬戶，投資賬戶，有現金值人壽保險，定期存款和年金。

截至2019年1月1日，配偶最多可獲得126,420美元的豁免資產，而不影響其配偶的療養院補助資格。

如果他們需要療養院補助保險，應諮詢老人法律師以幫助家人了解收入和資產測試並製定策略以取得資格。如果可能的話，最好提前做好。

參考: The Ledger (Jan. 9, 2019) “The Law: Are you eligible for Medicaid nursing home coverage?”