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Tag: DC Estate Planning

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The Mars Problem


Bigstock-Vintage-brass-telescope-on-ant-44347372[1]Humans have long dreamed of visiting the planet Mars. However, to do so would cause aging problems for astronauts.  However, we might be on the cusp of overcoming that by reversing the aging process itself.

One of the basic facts of human existence is that throughout our lives, our cells continuously divide.

Some cells die, but the division process ensures that new cells take the place of the dead ones. The division process is not perfect, however.

Each instance of cell division causes a small bit of deterioration in the cell and in the DNA of the cell. Over time, these bits of deterioration add up and the result is what we know as the aging process that we can see with our own eyes.

While not exactly constant, this deterioration from cell division occurs at a fixed enough rate that the maximum lifespan is the same for all humans. Scientists have been unable to change this rate of deterioration until now.

A way to reverse it might have been found, reported by the Daily Mail in "Would YOU choose to live forever? Age-reversing pill that NASA wants to give to astronauts on Mars will begin trials within six months."

If the report is true and trials bear out, then scientists have found a drug that can reverse the deterioration from cell division that causes aging.

This would have potential benefits for astronauts because space travel is extremely dangerous.

Astronauts are exposed to radiation that causes the cell deterioration to increase.

NASA is interested in this drug as a possible way to protect astronauts on a trip to Mars.

If this drug actually works, it has profound implications for more than just space travelers. It would cause great changes for all elderly people and for all estate planners.

Reference: Daily Mail (March 23, 2017) "Would YOU choose to live forever? Age-reversing pill that NASA wants to give to astronauts on Mars will begin trials within six months."

 

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When to Change Beneficiary Designations

Bigstock-Extended-Family-Relaxing-On-So-13907567[1]Who you name as the beneficiaries of your retirement accounts and your life insurance policies, is an important part of modern estate planning. Knowing when to change them is vital.

Estate planning today is not just about going to an estate attorney to have a will or a trust drawn up. It also includes making plans for your own end-of-life care and deciding who should get your retirement accounts and life insurance policies, if something happens to you.

The beneficiaries of your accounts will get the assets by operation of law, regardless of what the will says. If you have done everything correctly, then you have factored those accounts into your overall estate plan with the assistance of your estate planning attorney. Sometimes you need to review and change those designations. Profit Law Firm can help you understand how each asset will pass to the next generation and ensure that your overall goals are met with careful oversight of your beneficiary designations and careful will drafting.  Schedule a consultation today.

Recently, the Aiken Standard listed some appropriate times to do that in “On the Money: Don’t disinherit your loved ones,” including:

  • If you get divorced or remarried, then review your accounts to make sure you are not leaving things to an ex-spouse or that your new spouse is included.
  • If you get a new employer and roll over your old account, then make sure that the new account accurately reflects your wishes.
  • If the primary beneficiary on your accounts passes away, then you obviously need to make changes.
  • If the financial institutions you have the accounts with change ownership, review your beneficiary designations to make sure the new company has everything recorded properly.
  • If you have a new child or grandchild, consult your estate attorney about including them and whether they should be named as beneficiaries.
  • If a beneficiary becomes disabled, you should talk to an attorney about creating a special needs trust. Keeping them as a beneficiary could make them ineligible for some needed government benefits.

Reference: Aiken Standard (Dec. 10, 2016) “On the Money: Don’t disinherit your loved ones.”

 

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Convincing Parents to Create Estate Plan

Bigstock-Family-Portrait-At-Christmas-4881212[1]Many children with aging parents know that their parents should do estate planning, but convincing their parents of that can be difficult.

Many elderly people in the U.S. believe estate planning is something only the very wealthy need. If they only have a few major assets and modest back accounts, then they believe estate planning is unnecessary for them.

Many of their adult children know better, however.

The children know estate planning is an important responsibility for everyone regardless of wealth. While those children would like to talk their parents into estate planning they may find it difficult.  In the Washington Metropolitan area, estate planning is very important. Maryland estate planning is critical because Maryland has both a state estate tax and a state inheritance tax. The District of Columbia also has a state estate tax.

This topic was addressed by NJ 101.5 in “Talking to your parents about a will.”

If you find yourself having this problem with your aging parents, there are some steps you can take.

First, explain to your parents that without an estate plan their estates will have to go through probate and everything will be distributed according to state law and not your parents’ wishes. That means if they would like to leave something directly to their grandchildren, they will not be able to do so in most cases.   It also means that they might be subject to Maryland or D.C estate planning axes.

You can also talk to your parents about how costly and time-consuming probate can be and how it could be a burden on the family.

If all else fails and you can afford it, you might offer to pay for your parents to visit an estate planning attorney. They do not have to commit to anything before seeing the attorney, but the attorney can discuss the benefits of estate planning with your parents and give them some options. At Profit Law Firm, we also conduct two generation family planning sessions.  Contact us for a consultation with Maryland estate planning attorneys and DC estate planning attorneys.

Reference: NJ 101.5 (Nov. 1, 2016) “Talking to your parents about a will.”

 

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To Leave an Inheritance or Not

Bigstock-Family-Portrait-At-Christmas-4881212[1]Many people struggle with the question whether it is better to leave their children an inheritance or not. It is not an easy question to answer.

Recently, FOX Business reported on a survey that found some 23% of retired Americans would prefer to spend all of their money and not leave their children an inheritance in "Should You Leave Your Kids an Inheritance?"

They asked Dave Ramsey for his opinion on the subject. Ramsey suggested that if you have bad kids, then, leaving an inheritance for them just rewards their misbehavior. He went on to say that if you have good kids, then not leaving them an inheritance teaches them money is evil. However, that is not the entire story.

It is understandable why a parent would not want to leave an inheritance to a child who has an unhealthy lifestyle. No parent wants to give a child money that would just fuel a drug habit, for example.

With good estate planning, however, a parent can actually leave an inheritance that encourages the misbehaving child to straighten up and does not give the child funds for bad behavior.

Another possibility is to skip the child with bad habits or behaviors and instead give the inheritance to grandchildren or other relatives.

There are several options for estate planning around a misbehaving adult child.

Visit an estate planning attorney to learn more about them and how you can use them.

Reference: FOX Business (Oct. 12, 2016) "Should You Leave Your Kids an Inheritance?"