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Month: September 2016

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Social Security Is Not Going Anywhere

Many people hear dire predictions about the future viability of Social Security and assume that the program will end before they can take any benefits. If this results in a failure to educate themselves about the program, it is a big mistake.

People have been predicting the end of Social Security from almost the very moment it was started. President Franklin D. Roosevelt was keenly aware that future generations might seek to end the program and for that reason he insisted that measures be put in place to make it politically difficult for any future politicians to scrap Social Security.

That is why, for example, benefits are not subject to means testing. Even the super wealthy can draw benefits. The idea was to make people view benefits as a right and not as just charity for the poor.

Despite that it is still common for people to believe that Social Security will be gone before they are eligible to draw benefits.

However, as the Albuquerque Journal points out in “Social Security likely here to stay, so get educated” the program is not going away anytime soon.

In fact, both Hillary Clinton and Donald Trump have pledged not to cut benefits or increase the retirement age as part of their Presidential campaigns.

What this means is that, despite warnings about the future of the program and the Social Security trust fund running out of money, you should plan as if the program will be around when you are ready to draw benefits. It is important to educate yourself about how benefits work and when you should start receiving them.

Learn your options and plan accordingly.

Reference: Albuquerque Journal (Sept. 6, 2016) “Social Security likely here to stay, so get educated”

 

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The Role of an Estate Planning Attorney

Bigstock-Financial-consultant-presents--14508974[1]There are several options for creating an estate plan on your own. That might lead you to wonder what role an estate planning attorney can play and whether you should hire one.

If you can do something by yourself without taking too much time to do it, you are probably hesitant to hire someone to do the job for you. For example, why bother to hire a handyman to fix a squeaky door when fixing it yourself takes no more than a few minutes and some lubricant?

With many downloadable estate planning forms available today, many people are starting to have the same thoughts about estate planning and wonder why they should hire an estate planning attorney when they can do it themselves.

As the Herald Times Reporter in “Estate planning attorneys are like a QB” suggests, estate planning attorneys still have a vital role to play.

Just like the quarterback of a football team, an estate planning attorney plays a key role in coordinating the plans and executing them. The attorney is the one with the expertise and ability to make sure everything goes according to plan. A Maryland estate planning attorney knows the details of Maryland Law and a DC estate planning attorney knows the details of DC law. You tell the estate planning attorney how you want things to go and the attorney creates a plan that does what you want and follows the law.  If you are a resident of DC or Maryland, then Profit Law Firm can help you make a game plan for your estate.

The attorney can even call an audible just like a quarterback. If there are potential problems with what you want to do, then the attorney can advise you and help you come up with a different plan.

You can play football without a quarterback, but it is unadvisable. You can also create an estate plan without an attorney. That too is not advisable.

Reference: Green Bay Press-Gazette (Aug. 13, 2016) “Estate planning attorneys are like a QB”

Suggested Key Words: Estate Planning Attorney

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A Trust Is Worth It


Bigstock-Vintage-brass-telescope-on-ant-44347372[1]Setting up a trust can be time-consuming and there is no doubt that even the simplest trust takes some work to create. However, taking the time and making the effort is worth it.

A common question people have when they start to think about estate planning is whether it is worth the effort to create a trust. Just drafting a will is a lot simpler in most cases for the person doing the plan. Creating the trust requires funding the trust, which means that you have to transfer your assets into the trust.

If you just get a will, then you do not have to bother with any of that. However, if you are going to go to the effort of getting an estate plan, then you might as well make the effort of getting the best estate plan you can.

Taking the time to create a trust is almost always worth it as the Green Bay Press-Gazette explains in “Setting up a trust is worth the work.”

The two biggest advantages to a trust are that the trust makes it easier for you to control how your assets are used and distributed after you pass away. Moreover, a trust is much easier for your heirs to deal with after you pass away versus going through probate to sort out a will.

There are other advantages as well, such as keeping the details of your estate unavailable to the general public.

Even though a trust does take more effort to create than a will, the truth is that most of that effort can and should be done by an estate planning attorney. The attorney can make sure everything is set up properly and can normally assist in transferring assets into the trust.  If you want to see how a trust might benefit you and your heirs contact Profit Law Firm.

In the end, getting a trust does not have to be that much more work for you.

Reference: Green Bay Press-Gazette (Aug. 29, 2016) “Setting up a trust is worth the work”

 

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Estate Plans That Work

Bigstock-Senior-Couple-8161132[1]Estate plans that are perfect on paper can later become completely unworkable. To avoid that and have a good estate plan, you need to take a few simple steps after you get an estate plan.

When you walk out of an estate planning attorney’s office with a newly executed estate plan in your hands, do not make the mistake of thinking that your estate planning is complete. You have taken an important step toward having an estate plan your family can use after you pass away.

After you have created your estate plan, there is more that still needs to be done as the Reading Eagle recently explained in “Office Space: 4 steps to a perfect estate plan.”

To make sure that your estate plan will work you still need to:

  • Make sure the people who have important roles in your estate plan are aware of those roles. For example, if you have a general durable power of attorney, then you need to let the designated person know about it so he or she understands what to do should anything happen to you.
  • Let your family in on your plans so they know what is going on and who needs to do what. You do not necessarily need to tell them everything, but they should at least know where to look when the appropriate time comes.
  • Do not keep old financial documents you no longer need for any reason. You do not want your family to waste time trying to track down old accounts that no longer exist after you pass away.
  • Make sure to periodically review your estate plan and keep it up to date with any changes in your circumstances or the circumstances of your heirs and beneficiaries.

Reference: Reading Eagle (Aug. 30, 3016) “Office Space: 4 steps to a perfect estate plan”

 

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What You Need to Know About Estate Planning

Business_meeting[1]Estate planning can be a complicated topic to learn. However, most people only need to know the basics and where to find a good attorney.

If you are trying to research estate planning online, you will be forgiven if you get a headache. There are many articles written on the subject, but they often have confusing terminology and long lists of various legal documents most of the public have never heard of. This turns many people off of an important subject that they need to consider.

On the other hand, most people need to know only enough of the basics of estate planning so they know enough to hire a good estate planning attorney.

Recently, Realtor.com published a list of those basics in “7 Things Your Estate Planner Wants You to Know Before You Die,” including:

  • You are going to die someday so you need to think about it and think about what will happen to your property when you do.
  • If you die without an estate plan, sorting out your estate will be far more complicated for your family than it needs to be. This is true even if you do not have many assets.
  • One of the first steps to estate planning is simply to take an inventory of your important assets.
  • Naming a qualified executor to oversee your estate is one of the best things you can do to make sure everything goes well for your family.
  • If you own a home, the property tax issues can be complex after you pass away. It is important that you have the advice of a local estate planning attorney.
  • After you get an estate plan, you need to review it periodically to make sure everything is still up to date.
  • Should you ever need long term care in a nursing home, you may not need to sell your home to pay for it. However, long-term care planning is complex, so consult with a qualified elder law attorney.

Reference: Realtor.com (Aug. 28, 2016) “7 Things Your Estate Planner Wants You to Know Before You Die”

 

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Trust Basics

Bigstock-Financial-consultant-presents--14508974[2]When looking for estate planning advice people often see suggestions that they should create a trust. That is only helpful if they know what a trust is.

The Internet is full of estate planning advice most of which tends to suggest that people should get a trust. The benefits of doing so are often explained in detail.

Nevertheless, before people can get to the point where they can adequately assess the benefits of a trust for their own circumstances, they first need to know what a trust actually is.

That is not explained as often.

While it might seem obvious to some people, other people do not really know what a trust is. Recently, the Motley Fool discussed some of the basics in “What Is a Trust Fund?”

A classic trust is very simple. Person A (the grantor) creates a legal entity and gives it assets that are managed by Person B (the trustee) for the benefit of Person C (the beneficiary). Those are the three basic elements of every trust.

They can be complicated. For example, a trust can have multiple Persons A, B or C. In some types of trusts a single individual can play more than one role. Despite those complications, the basic structure of the trust does not change.

While there are many different types of trusts, including family, revocable, irrevocable, and many more, they all follow the same pattern. Trusts are a way to pass assets on to beneficiaries in a way through which those assets are independently managed by a trustee.

If you would like to learn more about trusts and whether one is right for you, contact an estate planning attorney.

Reference: Motley Fool (Aug. 28, 2016) “What Is a Trust Fund?”

 

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Do You Really Need to Sell Your House to Afford a Nursing Home? Not With An Estate Plan

Bigstock-Senior-Couple-8161132[1]All too often when one spouse in a marriage needs nursing home care, the couple assumes that the only way they can pay for that care is to sell their home. That might not be the case.

Overall, Americans do a poor job of planning for their estates and making plans should they need long-term care in a nursing home. This is because so many Americans do not ever make any plans at all.

Of those that do, many choose to make their own plans and that is a mistake. Those who seek out professional planners normally have good plans.

For the many who have no plans or who have bad plans, they often receive a rude awakening when their spouse needs care in a nursing home. Many of these Americans do not think they have any other option but to sell the family home so the government will pay for the care under Medicaid.

However, that is not always the only option.

This issue was taken up recently by the Boston Globe in “Seniors have more options than selling their home.”

Before selling their homes to pay for nursing home care, seniors are advised to seek out the services of an elder law attorney. The attorney can assess the situation to determine what other options, if any, are available.  At Profit Law firm, during crisis planning, we will review the options to see if a trust, deed transfer or another option works.

The even better option is to plan ahead.

Get a professionally crafted estate plan that includes the possibility of long-term care in a nursing home. Doing so will make it far less likely that having a spouse go into a nursing home will necessitate selling the family home.  Call us for a consultation today.

Reference: Boston Globe (Aug. 20, 2016) “Seniors have more options than selling their home.”

 

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Using Social Media to Abuse the Elderly

MP900202201[1]A federal agency is cracking down on a disturbing new form of elder abuse: nursing home workers using social media to share degrading pictures and videos of nursing home patients.

Now that most people have smart phones, most people also have cameras with them at all times. Many people like to use those cameras to take embarrassing photos of others in public and post those pictures on social media accounts. It is a common enough practice that entire websites are dedicated to collecting the photographs for other people to laugh at.

When the picture was taken in public there is normally very little that can be done about it. However, it does not just happen in public. It also happens in nursing homes and the pictures are taken by nursing home employees.

That is elder abuse as WTSP reports in “Feds crack down on degrading nursing home patient pics.”

This abuse happens often enough that the Centers for Medicare and Medicaid Services has decided that action is needed. It has warned state agencies to check that nursing homes in their states have a policy on employee cell phone use that prohibits employees from taking demeaning or degrading pictures of patients in their facilities.

While a policy in and of itself cannot stop all instances of elder abuse, this is a good and necessary step.

Nursing home residents and their families should not be abused by those they entrust with their care. If you (or a loved one) is ever the victim of elder abuse in a nursing home, please call an elder law attorney for assistance and report the nursing home to the appropriate agency in your state. Profit Law Firm can help victims of elder abuse in Maryland or DC.

Reference: WTSP (Aug. 23, 2016) “Feds crack down on degrading nursing home patient pics.”

Suggested Key Words: Elder Law, Elder Abuse

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Mistakes Lead to False Reports of Death

Happy-old-couple[1]Every year the Social Security Administration accidentally lists thousands of people as deceased. That’s actually an improvement for the agency.

The Social Security Administration pays benefits to millions of Americans until they pass away. The agency has an interest in knowing when people pass away so it can stop paying those benefits.

When a person passes away his or her name, birth date and Social Security number are also listed in a public file known as the Master Death List. That list is used by banks, doctors’ offices, credit agencies, health insurers and many more to know when their customers have passed away and to prevent fraudsters from using a deceased person’s information in identity theft schemes.

The problem is that the Social Security Administration makes mistakes regularly as NPR reports in “Social Security Data Errors Can Turn People Into The Living Dead.”

Every month approximately 500 living people are falsely declared dead by the agency. That is actually down from a few years ago when it was about 1,000 people a month.

There is no malicious intent in the agency’s actions. The false information is almost always the result of human error and someone accidentally entering the wrong information into the system.

A total of 500 a month is also not a huge number relative to the millions of people tracked by Social Security, but it is a big headache for those who are wrongly reported to be deceased.

If at some point the Social Security Administration wrongly reports your death, do not hesitate to see an elder law attorney for help sorting everything out. You will not be the first person the government has wrongfully declared dead.

Reference: NPR (Aug. 10, 2016) “Social Security Data Errors Can Turn People Into The Living Dead.”

 

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Proposed Budget Cuts Threaten Access to Social Security

Bigstock-Elder-Couple-With-Bills-3557267[1]That the Social Security trust fund will eventually run out of its surplus is not the only potential threat to the program according to officials. There is another threat that is much more immediate.

Everyone should be aware by now that the Social Security trust fund will eventually run out of money. However, that is not expected to happen until 2034, which gives lawmakers ample time to work out a solution.

Of more pressing concern is the amount of money the Social Security Administration has to conduct day-to-day operations. The agency is dependent on the annual budget approved by Congress and the President.

As the Washington Post reports, in “Closed Social Security offices, furloughed staff under GOP cuts, agency warns,” it is possible the agency will not receive the funds it needs in next year’s budget.

President Obama is proposing a budget for the agency that is $700 million more than House Republicans propose and $500 million more than Senate Republicans propose. The Social Security Administration believes the Republican proposals could jeopardize operations to such an extent that offices would have to close for two weeks and employees would need to be furloughed. People who receive Social Security benefits might have to wait longer for those benefits as well.

Of course, the agency’s objections could be political. What this shows is that it is not always the issues that get big headlines that could potentially jeopardize Social Security. There are other potential issues elder law advocates and seniors need to be aware of.

Reference: Washington Post (Aug. 9, 2016) “Closed Social Security offices, furloughed staff under GOP cuts, agency warns