Rowley Law

5 Critical Mistakes To Avoid For Your Estate Planning

I don’t think it can be said enough that estate planning is one of the most important things you can do in your life. By taking time and putting a plan in place, you protect your loved ones form countless pains. It is a final gift that you can give your loved ones to help them after your gone.  Surprisingly one of the first people most families will talk to about planning is their financial advisor and not an attorney. Most often, after speaking with their financial advisor’s people come to the Attorney office with  an idea of what they want. Which is ok, anything that gets you started on the right path is a good thing. But, with it how critical estate planning is, it is important to avoid making mistakes with your plan. A recent article from U.S. News & World Report, “Estate Planning Mistakes Advisors Make” looks at five things your financial advisor might forget to go over with you when talking about getting your planning done.

1. The Client Procrastinates. What you talk about needing or wanting three month or three years ago might not be the same now. This is particularly true when it come to assets values and types, which are important pieces of information for an attorney to have when crafting your plan. So do delay, talk to an attorney as soon as possible.
2. Review of Existing Documents. Your financial advisor might not know if you have planning in place already, and is probably not aware of how that planning affect what you do next. Make sure to speak with an attorney about any prior planning you have done, and give them the prior planning to review.
3. Assuming Equal and Fair are the Same Thing. A lot of people think the equal mean fair, but the words are not synonymous with each other. Make sure to talk with your attorney about the individual situation of your family to decide what is fair for you.
4. Assets Have Not Been Professionally Appraised. As said above value and type of assets are important pieces of information for an attorney to have when they are creating a plan for you. They can help to determine how the assets pass, and how your whole plan is structured. So getting a correct value for major assets like a business is critical.
5. Key Players Are Not Still Viable. Planning needs to be updated regularly for many reason, including changes in the people you name in your planning. People change and life happens, so the people you chose years or even months ago may not be a good fit any longer.

Reference: Pinkerston, Julie. (2021). US News & World. Report. 5 Estate Planning Mistakes Advisors Make. https://money.usnews.com/financial-advisors/articles/estate-planning-mistakes-advisors-make.

Plan to Avoid Guardianship

Guardianship is the process by which the courts grant a person control over another. Each state has its own laws, rules, and regulations covering how guardianship is attained through the court. No matter what state you are in, getting guardianship is a time-consuming and expensive process. A recent article from the News-Enterprise, "Planning can avoid guardianship," looks at what you can do to avoid guardianship.

The primary way to avoid needing guardianship is by having a valid power of attorney in place. A power of attorney is a planning tool in which you, the person who makes it, grants someone, generally referred to as the agent, the power to decide for you.  They can be used for medical and financial decisions depending on the type you have. Power of Attorney is an important planning tool for everyone to have in place to avoid the need for court. There are many types of power of attorney, and speaking to an experienced estate planner can help you determine what type of power of attorney is right for you.

Another option for avoiding guardianship is a revocable trust. While we usually think of revocable trusts as a probate avoidance tool, when funded, a trust can give your trustee control of the assets in it. Again, this can help to avoid guardianship, particularly over significant assets like real estate.

Guardianship proceedings are costly and time-consuming and should be your family's last resort. Protect your loved one from this by proactively getting your planning in place. 

Reference: Griffin, C. (2021). The News-Enterprise. Planning can avoid guardianship. https://www.thenewsenterprise.com/features/seniors/planning-can-avoid-guardianship/article_e1a994d4-57aa-5bc2-831b-1d3d195f64d1.html

8 Vital Reasons to Update Your Planning

So you have a trust, will, and some powers of attorney. Congratulations, you should give yourself a well-deserved pat on the back for completing some that almost half of people never do. But just because you finished your planning does mean it is done. A recent article from The Record-Courier, “Revising an estate plan crucial to making sure end wishes are carried out,” takes a look at why it is crucial to keep your plan up to date and when you may need an update.

Having your planning reviewed and updated makes sure that your wishes are carried out. Without updates to your planning, the planning may end up not accounting for all your assets or even directing investments to places or people that no longer exist. According to the article, eight main categories could warrant an update to your planning.

1. Whether it is a new child, grandchild, or even niece or nephew, a new person in your life can mean changes to your planning. Therefore, it is essential to have your planning reviewed to ensure that this new person is included in the way you want.
2. Losing someone is hard. It affects your life in many ways, and it also affects your planning. After a loved ones’ passing, your planning should be updated to reflect the change and keep the distribution process as clean and straightforward as possible.
3. Health Changes. If you, someone who will inherit or someone you have named to be in charge, become ill or disabled, your planning should be updated to reflect this. You may even need special provisions added to your planning to protect that person.
4. Asset Changes. As your assets increase, decrease or change type, your planning needs to be updated to reflect these changes. Asset levels and types have a significant effect on how proper planning is designed and how it functions.
5. Business Changes. If you have a business and restructure or make any other changes to its operation, such as stock trading and other modifications, your planning should be updated to reflect these changes to ensure that your business can continue even when you are gone.
6. People Changes. Not to be cliché, but people change. The person you chose to manage your finances three years ago may not be the best now. AS the people in your life grow, mature, and change, you should update your planning to reflect this.
7. Marriage Changes. Whether you’re tying the knot or severing it, changes to your marital status need to be reflected in your planning.
8. Time changes many things, including laws. It is crucial to have your planning reviewed at least every few years to ensure the rules and regulations used to create it still apply. Changes to the law can significantly affect your planning.

No matter the reason for the change, speaking to an experienced estate planning attorney will help make sure that your planning works for you.

Reference: Anonymous. (2021) The Record-Courier. Revising an estate plan crucial to making sure end wishes are carried out. https://www.recordcourier.com/news/2021/sep/19/revising-estate-plan-crucial-making-sure-end-wishe/

Plan for the Golden Years

Many people have an idealized view in mind for how they would like to spend their golden years, and a good number of those people will even plan to make sure they can spend their time traveling or sitting on a boat in the middle of the lack. However, few people will make a plan to handle the more unpleasant side of aging, and far too many people leave those decisions until it is too late. A recent article from Clarksville Now, “Talk to older parents about legal issues now, before problems arise,” looks at why it is essential to speak with your parents to make sure they have a plan in place and how to start that conversation.

While it can be unpleasant, it is crucial to ask your parents about what will happen if they become ill or pass away. Do they have their essential information stored safely and in a way someone can access them if necessary? Do they have a trust or will to make sure their belongs go where they want them to?

Setting up an appointment with an experienced attorney can help get this conversation started. Make sure to look for an attorney who handles elder law and not just estate planning. While the two are similar, elder law looks at what happens after passing and when incapacitated and focuses on maintaining the quality of while.

Reference: Holden, T. (2021). Clarksville Now. Talk to older parents about legal issues now, before problems arise. https://clarksvillenow.com/local/talk-to-older-parents-about-legal-issues-now-before-problems-arise-commentary/

Protect Your Family With a Plan

Benjamin Franklin once said “In this world, nothing is certain except death and taxes”,, yet many Americans have not planned for what happens when they pass. But planning for this, even if it is unpleasant to think about, allows you to protect your family. A recent article, “P
rotect your legacy, protect your family — It's never too early to start estate planning” from the Financial Post, looks a few situations that cause families to suffer when they face them.

According to the article, not having a will, only having a partial estate plan, nPorteot naming a guardian, executor and trustee, and not having a business succession plan in place, can cause family dysfunction. Not only that but failing to do any of the above can make your loss even harder on your family and result in them having to go to court on top of having to process their loss.

Even if you have all this in place, there is one more thing the article looks at that cause issues, not communicating your wished to your family. Parents often think that their child will just blindly follow their wishes. But even siblings, and other family members if you don’t have children, who receive equal distributions can fight over who got what.  People don’t always see equal as fair. It is important to talk to your loved ones about what you decide to help avoid fights and arguments after your gone.

Reference: Leathem, J. (2021). Financial Post. Protect your legacy, protect your family — It's never too early to start estate planning. https://financialpost.com/personal-finance/family-finance/protect-your-legacy-protect-your-family-its-never-too-early-to-start-estate-planning

5 Reason You Need a Power of Attorney

Picture this. Your married and your spouse is on a work trip oversees. Your internet at home stops working and you call the cable company. The investigate and find out the issue is with the wiring. You ask them when the issue will be fixed and they tell you they just need authorization to do the work, nut you can’t give it, because the account is in your spouse’s name and you’re not authorized. This is situation that is more common than most people think. Being married does not give you the legal ability to make decision for you spouse, at least it doesn’t in the United States. Making calls and decisions like this is just one reason why you need a power of attorney. A Recent article form the Sunday Post, “Why do I need Power of Attorney?” outlines five reason that everyone needs to have a power of attorney in place.

1. Your next of kin is powerless without Power of Attorney. Just like being married doesn’t give you the power to make your spouse decision, neither does being someone’s mother, father, grandparent, sibling or any other familial relation. Once you are legally an adult, the only one who can make your decision is you. The only way someone else can get this power is through a guardianship or power of attorney.
2. It allows your wishes to be carried out. A power of attorney allows you to name the person you want to make your decision. This means you can chose someone who will follow your wishes and make the decisions you would have wanted made.
3. Your welfare, wellbeing and finances can be taken care of. As long as you have the correct types of powers of attorney in place, the people you choose can make your financial, medical and even mental health decisions for you. So even if you can’t take care of yourself, you’ll be ok.
4. There are different types of Power of Attorney – you can choose which is best for you. There are powers of attorney that deal with health, finances and even your mental health. There are also powers of attorney that are for limited matters, one that start and stop of specific dates and more. Speaking with an experienced attorney is a great way to determine what types of power of attorney would be most helpful for you.
5. Legal documents can be signed on your behalf – even if you are abroad. As long as the power of attorney you have in place allows it, your agent, the person you chose to be in charge, can sign legal documents for you. This can be very helpful for someone who travels.

Powers of Attorney can be helpful for many reasons. Whether your 18 or 80 a power of attorney is for you.

Reference: Stevenson, D. (2021). The Sunday Post. Why do I need Power of Attorney?. https://www.sundaypost.com/fp/sponsored-why-do-i-need-power-of-attorney/.

A New Option To Help Keep You In Your Home

Aging is difficult. Even if you mental state does not deteriorate, things like moving objects, mowing the yard and even taking a walk often do. For years there have been two options available for people as they age to make sure they can get the help they need, move to a facility or get home care from a family member or professional. But Pennsylvania is leading the way with a new third option. A recent article from the Pittsburgh Post Gazette, “Elder Law Guys: Share your home?” looks at the new program.

The recently created Pennsylvania Department of Aging SHARE Program, which stands for Shared Housing and Resource Exchange, is an affordable housing program. It brings together homeowners who need some help around the house with people who are willing to provide some help in exchange for a shared place to live.

Like an old fashion bater, the homeowner “rents” a room to the another person in exchange for help around the home. Pennsylvania has an established application system to identify appropriate matches and protect both parties. The Share program after meeting with the person in need of help will conduct reference and background checks, identify potential home share matches, introduce the homeowners and home seekers, coordinate the written home-sharing agreement, oversee trial living periods, provide ongoing support during the term of the agreement and connect the participants to other community resources.

This new option will provide a way for many people to stay in theirs homes when they do not have the finances to pay for in home care or have a family member who is able to help.

Reference: Gray, J. Petrich, F. (2021). The Pittsburgh Post Gazette. Elder Law Guys: Share your home?. https://www.post-gazette.com/news/social-services/2021/08/23/Elder-Law-Guys-Share-your-home-caregiver-affordable-housing-Pennsylvania-Department-of-Aging-SHARE-Program/stories/202108220057A Neww 

3 Essential Steps to Get Started On Your Estate Plan

You are not the only person putting of getting an estate plan. Many American’s do. In fact, a 2020 survey done by Caring.com found that only 47.9% of adults 55 years or older have any type of planning documents. But you should not keep putting it off. While no one wants to think about being ill or passing, if the pandemic has taught us anything it is that life is not a guarantee and it is best to be prepared.

A recent article from Kiplinger entitled “The Essentials You Need for an Estate Plan” takes a look at the three things you need to do get started on preparing your estate plan.

1. Write a Will And Update Your Beneficiaries. A basic will and beneficiary designations are your first steps to directing your assets to the people you want to inherit them. However you should know that a will does not help you avoid probate.
2. Make Sure You Have A Living Will. A living will is one type of medical directive, another is a Power of Attorney for healthcare. Even if you are young it is important to have a medical directive of some type. Neither your parents or spouse will be able to make medical decision for you without the proper planning in place.
3. Decide If You Need a Trust. Getting a trust is a great way to ensure you avoid probate. A properly funded and created trust will help make things easier and less expensive for your beneficiaries. It is also a private document. A will gets filed in the county where you passed away after your death. A trust on the other hand does not normally get filed with the courts.

Putting off getting an estate plan is easy, but the easiest choice is not always the right one. Speak with an estate planning attorney and get started today to give your loved ones peace of mind.

Reference: Rodeck, D. (2021). Kiplinger. “The Essentials You Need for an Estate Plan”. https://www.kiplinger.com/retirement/estate-planning/602643/the-essentials-you-need-for-an-estate-plan

Which is Best For You, Irrevocable or Revocable

No one's life is precisely the same as another person's. This adage is true for trust as well. There are many different types of trusts, all created for different purposes. This plethora of options can make understanding trusts complicated and confusing, especially if you and a friend or family member have similarly named trusts created for completely different reasons. A recent article for the Long Island Press, "Irrevocable or Revocable: Which Trust Is Right For You?" looks at the two major categories of trust and the benefits to be had from them.

Revocable trusts are the type of trust that can be useful to all most anyone. When funded properly, they help you avoid probate when you pass and direct your assets to the people you want to inherit them. In addition, they can be used for tax planning, marital planning, and many other planning concerns. They are also, as implied by the name, revocable. This means that at any time, you can change the terms of the trust or get rid of the trust if you no longer want it.

Irrevocable trusts, on the other hand, are, as the name implies, irrevocable. While some can be modified under certain situations, not all can.  Changing the terms or purpose of an irrevocable trust is difficult at best and impossible at worst. So it is best to be sure of what you want before making and fund one. However, an irrevocable trust can offer many forms of asset protection, including Medicaid Asset Protection.

Speaking with an experienced estate planning attorney about your goals and financial situation can help you determine what is best for you. But remember, Irrevocable vs. Revocable is only the first step in figuring out what type of trust will work for you. Many other components of trusts need to be considered to find what will work best for you.  

Reference: Cona, J. (2021). Cona Elder Law. The Long Island Press. Irrevocable or Revocable: Which Trust Is Right For You?. https://www.longislandpress.com/2021/08/06/irrevocable-or-revocable-which-trust-is-right-for-you/

Britney Spears, Guardianships and Power of Attorney

Britney Spears the woman, the icon, the legend. One of the most well known pop stars of our generation, Britney has dominated the stage for years. She has also been under guardianship for years. A recent article from Elder Law Answers “Britney Spears Case Puts Renewed Focus on Guardianships and Less Restrictive Alternatives” looks at options that could have saved Britney from the restrictions she has suffered under for years.

A guardianship or conservatorship is a legal relationship where a person , the guardian, is given the legal ability to make decision for another person, the ward. The ward loses all legal rights to make their own decisions under guardianship. In Britney’s case, she can decide what she can buy, which contract to take or even if she wants to have a baby.

Proper planning can be used to avoid this situation. A Power of attorney for property or healthcare can be prepared to name some to make or help make decision for you. They stop the court from needing to become involved and allow for the a trusted and chosen individual to step in when needed.

Britney has a long way to go to end her conservator ship that could have been made easier by basic estate planning. Speak with an experienced attorney to find out what you can do to avoid ending up in the same situation.

Reference: Elder Law Answers. (2021). Britney Spears Case Puts Renewed Focus on Guardianships and Less Restrictive Alternatives.  https://www.elderlawanswers.com/britney-spears-is-giving-the-country-a-crash-course-on-guardianship-18399