Posts Tagged ‘Estate Planning’

Back to School Emergency Cards

Sunday, August 14th, 2011

It’s time for a new school year and that means shopping for school clothes, meeting new teachers, and filling out emergency cards.

The emergency cards can be helpful in telling the school who is authorized to pick your kids up from school if you aren’t able to be there.  And it can help to make sure that your child is not sent home with a stranger pretending to be a relative, or anyone else that you do not want to be around your children.

What these emergency cards can’t do is authorize someone to temporarily take custody of your children if a serious accident happens to you during the school day (or any other time).  if something happens to you, the authorities can only leave your kids with their legal guardian.

So what happens if there isn’t a legal guardian?  The authorities will find someone in the foster care system to take care of your kids until ‘things can be worked out’.  That means that your kids will be with strangers during this emotional and difficult time.  Not with the neighbor who knows them or the parent of their friend from school.

Most parents know they should name a guardian for their kids in their Will, but a Will only becomes meaningful after your death, and even then it may take days or weeks to find the document and get it entered with the court.  What about in the meantime?  And what if you are injured and in a hospital instead of deceased?

In Virginia, you can draft something called a ‘standby guardianship’ which tells everyone who YOU want to have custody of your children if you are not able to take care of them yourself.

This important document should be drafted by every parent and reviewed on at least an annual basis to make sure that it contains your current wishes.  There may have been a change in your life, and there may have also been a change in the life of the neighbor or friend you had named before.  You should also make sure that your babysitter knows how to find a copy of this document, and a copy should be given to the school as well as the person named in your document.

We all have busy lives and we forget to do some things.  As you are filling out the emergency cards for school this year, take a minute and review your standby guardian designation to make sure it is still valid.  And if you don’t have a standby guardian for your minor children, now is the time to get this important document!

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.

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.

A Unique Graduation Present

Monday, May 30th, 2011

May and June are busy months if you have a senior in high school or college.  There are graduation parties, plans for the future and the hunt for the perfect graduation present.

You want something ‘different’, not the same old ‘cross pen’ or ‘briefcase’ or whatever.

Why not a Durable Power of Attorney? or an Advance Medical Directive?

Lots of graduates don’t think they need these and many don’t think they can afford to pay a lawyer to have these critical documents drafted for them.  Unfortunately, the truth is that these are vital documents that every adult should have in place before they are needed. And young adults are one of the groups that is most prone to accidents and might need to have these documents in the next few years.

Once a person reaches the age of 18, he or she is considered a legal adult.  This means that Mom and Dad can no longer make legal decisions for them.  Mom and Dad can no longer call the school to make arrangements for school work if the child is ill.  Mom and Dad can no longer take the child to the hospital and authorize treatment.  Mom and Dad can no longer call the insurance company and take over after a car accident.

That is, unless the child has named Mom and/or Dad as their agent under a Power of Attorney.

This year, why not give the graduate in your life something really different?  (and really useful!)

To Learn more about Kristina Beavers, Attorney at Law visit the website at www.BeaversLaw.com

Do you have a ‘special needs’ child?

Sunday, May 22nd, 2011

Most of us know that each child is special and unique, but in this case I’m talking about a child that has ‘special needs’.

These special needs can run the gamut from being mildly allergic to milk to being unable to care for themselves at all.

When the child is under the age of 18, the parent can make decisions for the child without question so long as they have not been removed as the legal guardian of the child.

But what happens when that child reaches the age of majority?  In most states, a person is presumed to be able to make their own decisions when they reach the age of 18.

If your child’s special need is to not drink milk, this is probably ok.  The child probably knows to stay away from foods that have negative consequences.  But what about a child that is not able to take care of his or her own self?

If the now-adult child is capable of understanding what it means, he or she can execute a power of attorney giving the parent (or someone else) the authority to act or make decisions on behalf of the child.  If the child is not capable of understanding what it means, the courts may need to step in to authorize someone to take actions on behalf of the child.  This person is usually called a ‘guardian’ or ‘conservator’.

As a parent, you also want to make sure that your young child is cared for in case something should happen to you.  While this is important for all parents, it is even more important for parents of special needs children who may not be able to successfully transition to the care of others in the case of an emergency.

There are also a number of financial and legal planning activities that the parents of a special needs child should know about in order to make the best decisions for the entire family.

If you have a special needs child, you probably already have a number of specialists working with you on your child’s medical and educational plans.  You should also consider having someone work with you on your child’s legal plan.

To Learn more about Kristina Beavers, Attorney at Law visit the website at www.BeaversLaw.com