What are the Restrictions on Visiting the Elderly in a Care Facility?

Due to the recent pandemic, restrictions on visiting the elderly in a care facility are now in place. In Virginia started after the American Health Care Association, the largest national trade organization representing long-term care centers and the Centers for Disease Control and Prevention issued guidance recommending extreme measures to prevent a scenario that has played out in a Washington state nursing home, where the virus spread rapidly and took many lives.

The Richmond Times-Dispatch’s recent article entitled “Virginia nursing homes restrict visitors over coronavirus fears, families worry about separation” says, however, that some family members and advocates worry that — without loved ones allowed to visit — residents will be even more vulnerable to neglect in nursing homes that already struggle to give them basic care.

“What we have found is that experts believe that this is the most prudent step that we can take to protect the residents,” said Keith Hare, CEO of the Virginia Health Care Association, the state chapter of the AHCA. “We have to put the health and well-being of these residents first. … It really is unprecedented action.”  However, some family members who are told that they can drop off supplies for the residents at the nursing home, cannot stay for a visit. Some are worried that parents with Alzheimer’s who need help eating won’t be fed without their regular visitors because nursing homes are understaffed.

Nursing homes in the state say it was a hard decision to cease visitation, but it was necessary to prevent any exposure in the care facilities. They’re going to do whatever we can to keep it out, official say. While nursing homes around the country are doing the same thing and are restricting group gatherings within the centers, they are trying to make sure residents are being entertained with in-room activities, such as movies, card games, and puzzles. The focus at the facilities is on communication and keeping residents entertained.

Innovative Healthcare Management, a company that runs five nursing homes in Virginia with a total of 750 residents, said that it has been educating its staff and preparing for a potential outbreak, since first learning of the coronavirus outbreak in China. IHM recently began screening visitors for possible coronavirus infection before they entered the facilities. The company decided to restrict all nonessential visitors, except when a resident is believed to be dying.  Nursing homes are trying other ways for family members to connect with residents, like phone calls and video chats.

Contact an experienced estate planning attorney should you have an elder who requires preparation of estate planning documents.

Reference:  Richmond Times-Dispatch (March 15, 2020) “Virginia nursing homes restrict visitors over coronavirus fears, families worry about separation”

 

Common Will Mistakes to Avoid

Dying without a will (or “intestate”) means your estate assets will pass to your heirs according to the intestacy laws of the state. Under the state’s intestacy provisions, if your spouse is alive, and you had no children (with any person), your assets will pass to your spouse. In many states, if you had children your surviving spouse would get half of the assets of the estate and the other half would be divided equally among your children. If you didn’t have surviving spouse, your children would share equally in the estate.

The Aiken (SC) Standard’s recent article entitled “Avoiding mistakes with your will” says that a critical point to remember is that only your spouse must survive in order to be an heir. Typically, if one of your children had died, their children would get their share.

Every state has specific requirements for what constitutes a legal will. For example, in South Carolina, a will has these requirements

  • It must be in writing
  • The maker of the will (the testator) must be of sound mind
  • The maker of the will cannot be a minor
  • The will must be witnessed by two witnesses who were present when the testator signed the will and who also witnessed each other sign the document and
  • The will must be notarized.

The witnesses must not be beneficiaries of the will.

Because a will is so critical, you should employ the services of a qualified estate planning attorney. If you and your spouse already have a will prepared, it is important that these documents be reviewed periodically to make certain that your instructions are up to date and that your will recognizes any changes that have occurred in either federal or state law. People frequently forget about including certain assets in their wills, like special collections of memorabilia or other treasures.

Be sure that you designate an executor to serve in this capacity who is well-organized, calm and willing. You should typically name a person who’s younger than you and also name an alternate executor, in case your primary choice is unable to serve. If you have any minor children, you should name a guardian for those children. You can divide the duties of a guardian, by naming a different guardian to handle the children’s financial affairs and one who provides care for your children.

After your will is drafted, be certain you tell your family know where it’s kept and be sure that your will is in synch with other documents like your life insurance policies and other benefits that will pass directly to beneficiaries named in those documents.

It is important that you contact an experienced estate planning attorney to prepare your estate planning documents.

Reference: Aiken (SC) Standard )(March 22, 2020) “Avoiding mistakes with your will”

 

If Not Now, When? It is the Time for Estate Planning

What else could possibly go wrong? You might not want to ask that question, given recent events. A global pandemic, markets in what feels like free fall, schools closed for an extended period of time—these are just a few of the challenges facing our communities, our nation and our world. The time is now to do to be sure that everyone has their estate planning completed, advises Kiplinger in the article “Coronavirus Legal Advice: Get Your Business and Estate in Order Now.”

Business owners from large and small sized companies are contacting estate planning attorney’s offices to get their plans done. People who have delayed having their estate plans done or never finalized their plans are now getting their affairs in order. What would happen if multiple family members got sick, and a family business was left unprotected?

Because the virus is recognized as being especially dangerous for people who are over age 60 or have underlying medical issues, which includes many business owners and CEOs, the question of “What if I get it?” needs to be addressed. Not having a succession plan or an estate plan, could lead to havoc for the company and the family.

Establishing a Power of Attorney is a key part of the estate plan, in case key decision makers are incapacitated, or if the head of the household can’t take care of paying bills, taxes or taking care of family or business matters. For that, you need a Durable Power of Attorney.

Another document needed now, more than ever: is an Advance Health Care Directive. This explains how you want medical decisions to be made if you are too sick to make these decisions on your own behalf. It tells your health care team and family members what kind of care you want, what kind of care you don’t want and who should make these decisions for you.

This is especially important for people who are living together without the legal protection that being married provides. While some states may recognize registered domestic partners, in other states, medical personnel will not permit someone who is not legally married to another person to be involved in their health care decisions.

Personal information that lives only online is also at risk. Most bills today don’t arrive in the mail, but in your email inbox. What happens if the person who pays the bill is in a hospital, on a ventilator? Just as you make sure that your spouse or children know where your estate plan documents are, they also need to know who your estate planning attorney is, where your insurance policies, financial records and legal documents are and your contact list of key friends and family members.

Right now, estate planning attorneys are talking with clients about a “Plan C”—a plan for what would happen if heirs, beneficiaries and contingent beneficiaries are wiped out. They are adding language that states which beneficiaries or charities should receive their assets, if all of the people named in the estate plan have died. This is to maintain control over the distribution of assets, even in a worst-case scenario, rather than having assets pass via the rules of intestate succession. Without a Plan C, an entire estate could go to a distant relative, regardless of whether you wanted that to happen.

Reference: Kiplinger (March 16, 2020) “Coronavirus Legal Advice: Get Your Business and Estate in Order Now.”

 

Preparing for an Emergency Includes Power of Attorney

Unexpected events can happen at any time and preparing for an emergency includes a power of attorney. Without a backup plan, finances are vulnerable. The importance of having an estate plan and organized legal and financial documents on a scale of one to ten is fifteen, advises the article “Are you prepared to hand over your finances to someone in an emergency?” from USA Today. Maybe it doesn’t matter so much if your phone bill is a month late but miss a life insurance premium payment and your policy may lapse. If you’re over 70, chances are slim to none that you’ll be able to purchase a new one.

When estate plans and finances are organized to the point that you can easily hand them over to a trusted spouse, adult child or other responsible person, you gain the peace of mind of knowing you and your family are prepared for anything. Someone can take care of you and your family, in case the unexpected happens.

A financial power of attorney (POA) gives another person the legal authority to take financial actions on your behalf. The person you give this responsibility to, should be someone you trust and who will put your best interests ahead of their own. An estate planning attorney will be able to create a power of attorney that can be very specific about the powers that are granted.  You may want your POA to be able to pay bills, and manage your investment accounts, for instance, but you may not want them to make changes to trusts. A personalized power of attorney document can give you that level of control.

Consider your routine for taking care of household finances. Most of us do these tasks on autopilot. We don’t think about how it would be if someone else had to take over, but we should. Take a pad of paper and make notes about every task you complete in a given month: what bills do you pay monthly, which are paid quarterly and what comes due only once or twice a year? By making a detailed record of the tasks, you’ll save your spouse or family member a great deal of time and angst.

Is your paperwork organized so that someone else will be able to find things? Most people create their own systems, but they are not always understandable to anyone else. Create a folder or a file that holds all of your important documents, like insurance policies and investment accounts, legal documents and deeds.

If you pay bills online, naming someone else on the account so they have access is ideal. If not, then try consolidating the bills you can. Many banks allow users to set up bill payment through one account.

Keep legal documents and records up to date. If you haven’t reviewed your estate planning documents in more than three years, now is the time to speak with your estate planning attorney to ensure that your estate plan still reflects your wishes. Call your estate planning attorney to discuss your next steps.

Reference: USA Today (March 20, 2020) “Are you prepared to hand over your finances to someone in an emergency?”

 

How Risky Is the Coronavirus for Seniors?

MarketWatch’s recent article entitled “America’s growing elderly population is at risk — here’s what we can learn from Italy” says that we need to keep as many people at home to avoid spreading the disease, especially considering not everyone shows signs of the coronavirus but could still be carriers, and protect all citizens, especially the most vulnerable, including the elderly and those with heart and lung diseases.

“What you’re now hearing repeatedly, is that people over 60 and people who have chronic conditions are most at risk of coronavirus,” said Paul Irving, chairman of the Milken Institute Center for the Future of Aging. “That does create serious concerns for older Americans.”

The United States has more than 4,000 confirmed cases of the coronavirus, and 69 deaths.

Italy is to date the hardest hit country in Europe and has the second highest number of confirmed cases and deaths from the coronavirus. China started spreading the infectious disease in December. Italy experienced its highest number of cases within a 24-hour period last weekend — an increase of 3,590 cases and 398 deaths, officials said.

The State of Washington has had the most deaths in the U.S.—many of which were linked to an outbreak at a nursing home in Kirkland in February. There were 26 patients at the Life Care Center of Kirkland who have died between February 19 and March 13, the center said. More than 50% of its residents had been moved to hospitals. New York City, which just shut the nation’s largest public school system for a month, has had five cases as of Sunday night, including two people in their 50s, two people in their late 70s and one woman in her 80s.

The average age of those who passed away in Italy was 81, and many suffered from pre-existing health issues, the BBC said. In China, the death rate among those 80 and older was about 15%, according to a Chinese CCDC report last updated in the middle of February, when there were approximately 72,000 confirmed cases. Those between 70 and 79 years old had a death rate of 8%. By comparison, those in their 20s and 30s each had a death rate of 0.2%, according to Worldometers, which aggregated global reports related to coronavirus.

“There’s also a risk to the broader population, but we really need to focus on protecting our elders,” Irving said. “The older a disease-sufferer, the higher the risk.”

Although just 14.50% of the United States’ population is 65 and older, that number is anticipated to increase in the next decade. Since the start of 2011, about 10,000 people have turned 65 years old each day, and they will continue to do so until 2030, according to nonprofit think tank Pew Research Center. At that point, roughly 18% of the country will be 65 or older.

Government responses to the coronavirus include closing large gatherings of people. like sporting events, universities, and restaurants, which may be important in slowing down the spread of the virus. The CDC recommends all Americans, especially older people, to stay indoors, stock up on necessary food and medications, and reduce contact with others. The CDC also strongly urges everyone to wash their hands with soap and water for 20 seconds, avoid touching their faces and use hand sanitizer with at least 60% alcohol when soap is not available. If you have any questions or questions give your estate planning attorney a call.

Reference: MarketWatch (March 16, 2020) “America’s growing elderly population is at risk — here’s what we can learn from Italy”

Are You One of the Many Headed toward Financial Disaster?

You may be saving for retirement, paying down debt or simply budgeting for your everyday expenses. Whatever your goal is, it’s critical to have a plan in place. Some planning now can go a long way in making sure your finances are as healthy as possible. Without any type of plan, you’re just blindly throwing your money around and hoping for the best.

Motley Fool’s recent article entitled “A Whopping Number of Older Adults May Be Headed Toward a Financial Disaster” says that millions of older adults are making a critical mistake as they plan for the future. If they don’t make any changes soon, it could be extremely expensive.

More than one-third (34%) of baby boomers admit that they haven’t conducted any financial planning whatsoever in the last two years, according to the National Association of Personal Financial Advisors. Therefore, they haven’t planned for retirement, managed a budget, set any goals, reviewed their investments, considered their insurance needs, or done any tax or estate planning. It’s not just baby boomers who aren’t planning. Almost a quarter (24%) of Gen Xers also say they haven’t done any financial planning over the past two years. The generations most likely to have thought about the future are the millennial generation and Gen Z — only 16% and 15%, respectively, said that they haven’t done any recent financial planning.

While all of us should be thinking about our future plans, it’s even more essential for older Americans to focus on their finances. If you’re close to retirement age and haven’t reviewed your investments or thought about your retirement plan recently, you’ll have a hard time knowing if you’re on track. The longer you wait to know if you’re off track, the more difficult it’ll be to make changes and to catch up.

Baby boomers should have plans in place, in case the worst happens. Review your insurance and make an estate plan to be certain that your family is protected if something happens to you. Look at your plans regularly to make sure everything is up to date.

The first part of creating a financial plan is to set goals, like preparing for retirement, paying down your debt, or creating an emergency fund. Next, examine your money situation to find extra cash to put toward those goals. Begin monitoring your spending to get a good idea of just where your money is going every month. It’s a lot harder to stay on a budget and save more, if you don’t know how much you’re spending. Once you get into the habit of tracking your spending, it’ll be easier to discover parts of your budget to cut back. You can start reallocating that money toward your financial goals.

You should also remember that you’ll need to review your plan regularly to make adjustments when needed. This is especially vital when saving for retirement, because there many factors to consider as you’re saving. At least once a year, check that your retirement savings goal is still accurate, and decide whether your current savings are on track to reach that goal. Take a look at your investments to see if your asset allocation is still aligned with your risk tolerance.

Reference: Motley Fool (Feb. 8, 2020) “A Whopping Number of Older Adults May Be Headed Toward a Financial Disaster”

What are the Main Estate Planning Blunders to Avoid?

There are a few important mistakes that can make an estate plan defective—most of these can be easily avoided by reviewing your estate plan periodically and keeping it up to date.

Investopedia’s article from a few years ago entitled “5 Ways to Mess Up Estate Planning” lists these common blunders:

Not Updating Your Beneficiaries. Big events like a marriage, divorce, birth, adoption and death can all have an effect on who will receive your assets. Be certain that those you want to inherit your property are clearly detailed as such on the proper forms. Whenever you have a life change, update your estate plan, as well as all your financial, retirement accounts and insurance policies.

Forgetting Important Legal Documents. Your will may be just fine, but it won’t exempt your assets from the probate process in most states, if the dollar value of your estate exceeds a certain amount. Some assets are inherently exempt from probate by law, like life insurance, retirement plans and annuities and any financial account that has a transfer on death (TOD) beneficiary listed. You should also make sure that you nominate the guardians of minor children in your will, in the event that something should happen to you and/or your spouse or partner.

Lousy Recordkeeping. There are few things that your family will like less than having to spend a huge amount of time and effort finding, organizing and hunting down all of your assets and belongings without any directions from you on where to look. Create a detailed letter of instruction that tells your executor or executrix where everything is found, along with the names and contact information of everyone with whom they’ll have to work, like your banker, broker, insurance agent, financial planner, etc.. You should also list all of the financial websites you use with your login info, so that your accounts can be conveniently accessed.

Bad Communication. Telling your loved ones that you’ll do one thing with your money or possessions and then failing to make provisions in your plan for that to happen is a sure way to create hard feelings, broken relationships and perhaps litigation. It’s a good idea to compose a letter of explanation that sets out your intentions or tells them why you changed your mind about something. This could help in providing closure or peace of mind (despite the fact that it has no legal authority).

No Estate Plan. While this is about the most obvious mistake in the list, it’s also one of the most common. There are many tales of famous people who lost virtually all of their estates to court fees and legal costs, because they failed to plan.

These are just a few of the common estate planning errors that commonly happen. Make sure they don’t happen to you: talk to a qualified estate planning attorney.

Reference: Investopedia (Sep. 30, 2018) “5 Ways to Mess Up Estate Planning”

Hey Dad, Can I Get an Advance on My Inheritance?

Most parents want to divide their estate equally among their heirs, but sometimes things just don’t work out that way. That’s especially the case when one child needs more help than another. Therefore, what parents will often do is count the distributions they make during their lifetime as advances against the child’s future inheritance. This doesn’t always go smoothly, says the article “Lifetime advances of inheritances” from Lake County News.

Equalizing distributions to some children to offset any substantial distributions made to offset the total distribution can lead to trouble, if certain legal requirements are not addressed. In California, the Probate Code is very specific. There are three different approaches in which lifetime distributions are counted as advances of inheritances at death:

  1. The instrument provides for deduction of the lifetime gift from the at-death transfer
  2. The transferor declares in a contemporaneous writing that the gift is in satisfaction of the at-death transfer or that its value is to be deducted from the value of the at-death transfer and
  3. The transferee acknowledges in writing that the gift is in satisfaction of the at-death transfer or that its value is to be deducted from the value at the at-death transfer.

In the first example, the decedent’s will, or trust expressly says that lifetime distributions are to be counted against the future inheritance. This may state a specific dollar amount or may refer to a ledger that tracks ongoing lifetime gifting. The ledger approach is often used when a child is dependent upon a parent for ongoing support, paying off school loans or paying a mortgage.

The second example, which involves a written record of the gift, was the subject of a recent appellate court decision. The deceased father kept track of all monetary gifts to his children. The father’s bookkeeper maintained a spreadsheet and was told by the father that the list was important, so that the payments would be deducted from inheritances. At the father’s death, the son had received more than $450,000 more than the daughter. The son contested the daughter’s request for equalizing the inheritance based on the ledger. The appellate court stated that the ledger met the requirements to serve as a contemporaneous written record. The court also found that the permanent ledger was property authenticated and entered into evidence, based on the daughter’s testimony that she found the ledger among her father’s papers and that it was written in her father’s handwriting.

In the third scenario, where there was a written acknowledgment by the person receiving the “advance” that the money was in satisfaction of the at-death transfer, the court found that the requirement was satisfied and the son had acknowledged that the assets given to him were advances on his inheritance.

A better scenario, and one that would have prevented some, if not all, of the litigation described above, would be to have estate planning documents that clearly state whether any disproportionate lifetime gifting to beneficiaries is to be offset with equalizing payments to the other beneficiaries at death. Your estate planning attorney will be able to create the best plan if your heirs need financial support, following the laws of your state.

Reference: Lake County News (March 14, 2020) “Lifetime advances of inheritances”

Coronavirus News Should Make You Think about Estate Planning

The global Coronavirus (COVID-19) outbreak has many of us thinking about what could happen, if the disease spreads more fully across the general population. We all need to plan for what could possibly happen. To protect yourself and your family, it’s smart to be certain that you have the following these documents prepared and updated, says Motley Fool’s recent article entitled “The Coronavirus Should Have You Thinking About These 4 Things.”

  1. A will or revocable trust. Be sure that your assets will pass to those who you want to receive them after your death. This is critical during crisis times. You don’t want to make things any harder than they need to be. Create an estate plan to avoid potentially expensive and time-consuming processes like probate, which will have greater importance, if your family is confined to their homes in a quarantine situation.

A simple will can cover what happens to your assets at death. This typically works well, especially for modest estates. State laws differ on how complicated a probate process would be with a basic will. Some people opt to use a fully funded revocable trust that doesn’t require probate. For either a will or a revocable trust, make sure that it’s up to date and reflects your current preferences and family circumstances.

  1. Updated beneficiary designations. If you have an IRA, 401(k) account, or life insurance policy, those you name as beneficiaries of that account will receive the proceeds, despite a totally different from arrangement in your will or trust. Many of us also don’t designate any beneficiary for these accounts, which means added complications in the event of death.
  2. Healthcare power of attorney. When we’re in the midst of this Coronavirus, it’s even more urgent that you’ll be able to get the healthcare you need, if you’re hit with this illness. A durable power of attorney for healthcare will give the individuals you choose the ability to make whatever medical decisions you specify on your behalf. An estate planning attorney can help you draft documents that match your specific wishes.
  3. Financial power of attorney. You can designate an agent to help take care of your finances, if you become incapacitated or otherwise unable to handle your financial affairs. A general durable power of attorney for financial matters is another document that lets you delegate responsibility and authority to make financial transactions to the person you name.

Estate planning may not be the highlight of your week, but the Coronavirus outbreak has more people thinking about what they need to do. Make sure your family will have what they need even if something happens to you.

Reference: Motley Fool (March 8, 2020) “The Coronavirus Should Have You Thinking About These 4 Things”

What Did Kobe Bryant Do for Estate Planning?

Many people were shocked to learn about the death of NBA superstar Kobe Bryant. As one of the wealthiest athletes in the world, his estate is expected to be the subject of increasing interest for his family and others.

The retired Los Angeles Lakers star was killed along with eight other people, including his 13-year-old daughter, Gianna, in a helicopter crash in Calabasas, California last month. Bryant was only 41 years old and seemed ready for a successful career after professional basketball in business. The news devastated his fans and the world at large, but it was heartbreaking for his widow Vanessa Bryant and their three surviving young children.

Newsone’s recent article entitled “Did Kobe Bryant Have A Will? NBA Legend’s Death Highlights Estate Planning In Life” reports that Kobe Bryant died with a net worth of about $600 million. This was in large part to being the second-highest-paid NBA player of all time with career earnings of $323 million just from his 20 years’ worth of league contracts alone, according to Forbes.

You might think that the uber-wealthy need not concern themselves with estate planning. That’s what lawyers are for right? However, that’s actually not the case in many notable instances — especially with members of the black community.

Poor estate planning is fairly common for black people. One scholar says that the failure of African Americans to prepare wills, is likely linked to distrust of government, a belief that their children will ultimately inherit their property and reticence to create division within the family.

One estate planning lawyer told Black Enterprise that “Black Americans are 50% less likely to have a living will, in place in comparison to other groups.”

It is not just African Americans with this problem: a Gallup poll found that most people in the U.S. don’t have a will. AARP estimated that six in 10 adults in America don’t have one.

In many cases, the lack of having a will and testament in place can create family battles, like over the estates of Prince and Aretha.

Hopefully, Bryant was prepared and had a will in place to make sure he controlled his finances in death, as he did in life.

Reference: Newsone (Jan. 30, 2020) “Did Kobe Bryant Have A Will? NBA Legend’s Death Highlights Estate Planning In Life”