Posts Tagged ‘Trust’

Have You Checked Your Beneficiary Designation Lately?

Sunday, July 10th, 2011

I encourage my clients to review their estate planning documents on a regular basis, and an annual checkup seems like something that can be scheduled and easy to remember.

But what about things that aren’t part of the documents that I help to create? What about your individual IRA? or your life insurance policy? or your company retirement plan? or your investment portfolio?

These types of plans are contractual in nature and the contract is between you and the insurance carrier or the plan administrator, or….whomever.

It is also important to make sure that these beneficiaries are up to date. If the beneficiary is a minor child, do you have the person you want today as the trustee of these funds? Have the children now become adults and you want them to have access to the funds immediately? Have you created a trust and just never got around to changing the beneficiary of your insurance so that the funds will go into the trust to be distributed the way you wanted?

One of the biggest problems is selecting a beneficiary and just forgetting about it. What happens if that person has died before you? What happens if that person is no longer the one that you want to have access to the funds? Maybe they got married to someone you hate. Maybe they ran off to join a commune. Maybe receiving the funds will make them ineligible (for just a little while) for medicaid benefits they are receiving now? Maybe…. (fill in the blank).

I had a very personal example of this. My mother had a life insurance policy that she got when she was working. Her plan was that we could use her life insurance proceeds to pay for the funeral and then there would be a little left over for each of us (I’m the oldest of 7 children). We all knew she had the life insurance and we all knew what she wanted us to do with the proceeds, but what we didn’t know was that she hadn’t really named a beneficiary at all. I know she meant to have the beneficiary set to ‘all of my children equally’, but it never got recorded at the life insurance company. The funeral home would have taken an assignment of the insurance proceeds, but that assignment had to be signed by all of the named beneficiaries and there were no named beneficiaries!

That meant that we needed to get a certified copy of her divorce papers, and all 7 of us had to sign affidavits that we were indeed her children before we could get access to the funds. Of course we needed to have this done on the forms provided by the insurance company, which took time. And somebody had to pay the funeral home right away. So mom’s plan to use the insurance proceeds to pay for the funeral only ‘kinda’ worked. One of us had to pay the funeral home and then each of the other 6 had to reimburse the one that paid when they got their one-seventh of the proceeds.

I have a great family and it worked out fine, but I’ve heard lots of examples of where one child has been ‘stuck’ with the entire funeral bill and the others refused to reimburse the sibling that paid the funeral home itself.

Please, take a few minutes and double check your beneficiary designations on all of those ‘contractual’ assets.

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.

July is Sandwich Generation Month!

Monday, July 4th, 2011

When I hear the word ‘Sandwich’ I tend to think of Peanut-Butter and Jelly, which always brings a smile to my face.

But there is a new way of viewing ‘Sandwich’ that is not so much fun. That’s the role more of us are playing by being the caregivers of both our parents and our children.

In the grand scheme, this is not really anything new. Families used to always take care of the generations, often in a single home. Grandma and Grandpa shared the same home with their children and grandchildren providing wisdom and assistance as the new generation came along, and receiving the attention and care of those in the family as they slowed down in their elder years.

But things changed, especially here in the United States, and families tended to live in their own separate homes with Grandma and Grandpa often living across town or even across the country. Most of us today can’t imagine even sharing a room with a sister or brother, let alone imagine sharing a home with Grandma or Grandpa.

None of us would consider leaving a two-year old home alone. After all, the two-year old can’t really get food to eat or make sure they make it to the bathroom on time. And there are things in the home that could injure the child if they are not used correctly. The two-year old is also just learning about freedom and self-reliance and if the two-year old refuses to do what we tell them to do for their own good, we can pick them up and put them in their bedroom for a ‘time out’. The parents get to set the ground rules because a two-year old doesn’t know that it is even possible to stay up past 8:00.

It’s a different story with our aging parents. They DO know that they can stay up past 8:00, and they’ve done it for years! Why, they even taught US! And most of the time, they are too large to pick up and physically move to the bedroom for a ‘time out’ when they get cantankerous. Unfortunately, our aging parents might also be in the position of not being able to get food for themselves or eating correctly, or making it to the bathroom on time, or using things in the home that can cause injury if not used correctly.

Our parents are living longer and having more health issues, both physical and mental, then previous generations. I know there was nobody in my family that ever got cancer until my uncle was diagnosed a few years ago. But nobody in the family had ever lived to be 85 before either. On my dad’s side of the family, there wasn’t a history of dementia until the family members starting living into their 90’s.

Luckily, there are more and more services available to help us take care of our parents. These services can take away some of the stress involved in day-to-day chores such as making sure that our parents are eating correctly and being kept clean and safe. There was a time when babysitters and day-care centers for children were a new concept, even though today we see them as an established institution in our lifestyle. It appears that there will come a day when adult care givers and adult day-care centers will also become established in our lifestyle.

These services cost money. But unlike children who have no resources of their own, often our parents will have some resources available to them to help pay for the services needed for their care.

Also, as parents of minor children you have the legal authority to make decisions for your children. This is not so for your parents. It is important to have the correct documents in place so that you have the authority to make important and day-to-day decisions for your aging parents. These include Powers of Attorney and Medical Directives. You might also want to consider establishing a Trust so that your parent’s assets can be transferred with a minimum of hassle and used for their benefit.

What should you do? Read…there are a lot of resources available on the web. Talk to your parents…find out what they want while they are able to tell you. Talk to people you trust…your doctor, your pastor, your lawyer. Ask them to recommend services or service providers that they trust. Unfortunately there are some scams out there that sound good but don’t really offer the right services for your needs. And most of all, have patience. Remember that these are the people that spent their time raising you, dealing with you when you made mistakes and who helped mold you into who you are today. Be patient with them, knowing that they are also having difficulty dealing with this role reversal.

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.

Hampton Office !

Friday, May 20th, 2011

We have just opened a new satellite office to better serve our clients in the Hampton area.

Our Hampton office is in the Peninsula Town Center with an address of:

Kristina Beavers, Attorney at Law

4410 Claiborne Sq, Suite 334

Hampton, VA 23666

You can use the same phone number of 757-234-4650 to access us at either office (don’t you just love technology!)

To learn more about Kristina Beavers, Attorney at Law, check out our website at www.BeaversLaw.com

Special Day To-Do List

Monday, July 19th, 2010

My birthday is this month and I’ve always thought that birthdays should be special.

Since I like to-do lists, I also make a special to-do list for things I try to do on my birthday.

I try to take the day off from work. I try to have a special dinner. I try to spend the day with my favorite people.

and…I try to think of what might happen in the next year so I can plan for those things.

yes, this also includes things that I may not really want to have happen, like an accident or illness.

that’s why I also have reviewing my estate plan, and especially my Power of Attorney documents as part of my birthday to-do list.

A new year!

Friday, January 1st, 2010

Welcome to 2010!

I love the start of a New Year! It’s a time to reflect on the events of the past year and to make plans for what is coming up in the new year. It is also a time to make our resolutions.

One of my resolutions is to review my own estate plan to make sure that it still fits my needs.

There have been some changes to the makeup of our family during the past year, and the addition of another pet. I want to make sure that these changes will be handled correctly in my estate plan. And I want to revisit my General Durable Power of Attorney and Advance Medical Directive to see if they need to be changed.

An estate plan is not a ‘do it once and put it away’ type of thing. It should be reviewed regularly. Think of it as an annual checkup - only for you estate plan and not your health.

That’s why our January Special is a complete review of your current estate plan for only $100!

Call the office today to schedule your estate plan checkup! We can be reached at 757-234-4650.

I hope you all have a Wonderful New Year!