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Medicaid is a federally-created state-implemented program that provides medical coverage to the neediest of populations. The interest in ensuring that those in need can access affordable care is an important factor in keeping our nation healthy. Medicaid is an incredible resource for our aging population. Those entering long-term care are faced with an inevitably exorbitant expense for their escalating level of care needs. For elders with limited resources, Medicaid provides a way to fund this care. Medicaid recipients in long-term care receive the care they require, and healthcare facilities receive compensation for the services they render. In addition to this general coverage, Congress also included retroactive benefits in Medicaid coverage under federal law. This ensures that those eligible for Medicaid coverage will be protected during the three months immediately before the application process. To be eligible for retroactive coverage, the applicant must have been otherwise eligible for Medicaid during that time period. Because the need for long-term care often arises unexpectedly, say, due to a fall or other catastrophic medical event, entrants are often faced with the necessity to swiftly access Medicaid coverage to fund their impending medical care costs. The medical expenses that can be accrued in the months prior to realizing the need for Medicaid assistance are a critical concern for applicants. Those needy enough to qualify for Medicaid benefit greatly from the availability of retroactive coverage. The need for long-term care is not always obvious. Many hope that recovery, not institutionalization, is on the horizon. Mounting expenses for medical care leading to the determination that long-term care is needed is a common concern. Many states provide retroactive Medicaid coverage to help with these costs in these sorts of situations. Unfortunately, some states sidestep this coverage. In this issue of ElderCounselor™, we will explore how some states are eliminating retroactive coverage, the consequences therefrom, and if other states will likely follow suit. A Way Out: 1115 Waivers The federal government recognizes that each states’ population is different. The needs of the citizens of New York may differ from the needs of those residing in Montana. To promote a Medicaid program that is suitable and useful for individual states, there is a process by which state governments can seek to deviate from the federally-mandated Medicaid rules. The purpose of the program is to not only allow states leeway in implementing the Medicaid program given their unique population but to also allow for the testing and development of different rules to see if the Medicaid program as a whole could benefit from the new rules. This process of deviation from the federal rules entails submitting a waiver to Centers for Medicare and Medicaid Services (CMS). For a waiver to be granted, it must increase recipient coverage, strengthen available provider networks, improve health outcomes for recipients, or increase the effectiveness of care via service delivery networks. If granted, waivers are approved for 5 years, typically. Additional extensions may be granted. So, even though Federal law requires retroactive coverage for Medicaid recipients, states may seek renunciation of the obligation by submitting a demonstration waiver to CMS. Successfully procuring a waiver allows the state to skirt the well-established retroactive coverage rule. Many states rationalize these waiver requests by showing a combination of several factors including a showing that the waiver promotes the use of Medicaid or commercial insurance, prior to medical need arising; a financial benefit to the state; a history of infrequent use; and the presence of other coverage or presumptive eligibility. Promoting Consistent Coverage and Access to Other Coverage Some states that have successfully obtained waivers focus on the importance of encouraging individuals to obtain and retain consistent health care coverage. An individual covered prior to a Medicaid application would, theoretically, not need the retroactive payments. A needy person eligible for Medicaid coverage should do so when they first become eligible – this eliminates a surprise bill for the states when retroactive coverage applies. Those not impoverished enough to qualify for Medicaid should prudently obtain other, commercial coverage. Proactively Accessing Medicaid: One could argue that continuous coverage via Medicaid saves the state money over the long term because these individuals have regular access to medical care, keeping them healthier longer. On the other hand, unlimited access to Medicaid-paid healthcare can incentivize an eagerness to seek out medical care for otherwise rudimentary conditions. A Medicaid-covered individual is far more likely to visit the ER for a bad cold than another individual with a $250 ER copay. Such use is certainly not cost saving for the states. Proactively Accessing Commercial Coverage: Keeping up on one’s health logically increases the likelihood of staying healthy. Thus, having consistent coverage promotes this objective. Unfortunately, though, the inability to qualify for Medicaid coverage due to being over-resourced does not mean that these individuals can afford commercial coverage – let alone the costly copays and deductibles associated with the plans. For many, paying out-of-pocket for commercial insurance impoverishes them, yet they still cannot qualify for Medicaid because, without the expense, they are not needy enough. Because many cannot afford commercial coverage but still do not qualify for Medicaid, they go without health insurance altogether. If a medical event happens that renders them unable to work, and then they may qualify for Medicaid without their income. For example, say a senior receives Social Security benefits and works part-time. With those two income sources combined, their income is over the limit, and they cannot qualify for Medicaid. If the senior suffers a fall and cannot work at their part-time job, their income falls below the limit, and they are otherwise eligible. Retroactive benefits would cover the cost of the medical event if it were determined that they lost their job and didn’t have that additional income at the time immediately following the fall. Without retroactive coverage, the person may qualify after the hefty bills from the medical event were accrued and leave them unable to pay the debt personally. To further the problem, commercial insurers do not cover long-term care. Many states’ waivers include those age 65 and older – the most obvious group of people likely to be forced into long-term care. An individual receiving long-term care services experiences no benefit from having commercial coverage. Without retroactive coverage for these long-term care costs, an individual scrambling to get the necessary documentation ready for an application for Medicaid benefits could be left with extensive medical debt incurred pre-application. Eliminating retroactive coverage leaves medical facilities providing pre-application care at a loss because those eligible for Medicaid do not have the resources to pay the incurred debt. Thus, the state may financially benefit, but at the expense of medical care institutions. Financial Benefit to the State States can easily argue that eliminating retroactive payments would benefit the state financially. Obviously, not paying for services rendered is money not spent. However, reimbursement for retroactive costs may not be the greatest source of expense to the states, and the lack thereof may harm both individuals and medical care facilities. Lack of Use An element of retroactive Medicaid coverage is based upon the presence of neediness during the months preceding application. In order to avail themselves of retroactive benefits, the applicant must have been Medicaid eligible during that retroactive period. If an applicant would not have been eligible based on their financial condition during the retroactive coverage period, then that backdated coverage would not be accessible. For example, if an individual with too many resources for Medicaid eligibility expends their wealth on expensive medical care until their level of need meets Medicaid requirements, the individual would not be eligible for the retroactive coverage until the exact point they were otherwise financially eligible. There could be a gap in responsibility during this time. These individuals have no way to pay for further pre-application expenses because paying for previous care led them to poverty. And if retroactive benefits are not available, the Medicaid applicant could have an even larger gap in responsibility while he or she gathered the necessary paperwork to submit a successful Medicaid application. These cases account for much of the lack of use argument. If the number of ineligible applicants is great enough, then states can argue that the program is of no realistic benefit and should be eliminated based on the scarcity of its use. Repercussions Medicaid coverage is critical for impoverished elders nearing the necessity for long-term care. Retroactive coverage protects those that are not anticipating the shift into long-term care and postpone their application for benefits. Once the need becomes clear, and individuals turn to Medicaid, retroactive protection assists applicants with the cost of care that led them to the conclusion that their needs are beyond management without the help of a long-term care environment. Elimination of this feature only creates increased hardship for those that do not prematurely seek out Medicaid. Several states have successfully argued for waiver of retroactive coverage. In some of those states, an individual that accesses Medicaid benefits early, and creates a financial burden for services they seek out over time, is in a better position than those that delay the request for help. Those that try to delay the request for medically-based financial help from the state are essentially penalized for their postponement. Those that purchase commercial healthcare plans are either led to poverty because of the expense, or they are of limited benefit – especially when the expenses are due to long-term care costs, which commercial plans avoid. Qualifying for long-term care Medicaid is also document-driven. It usually takes a lot of paperwork and information to have an application successfully submitted. Not only does the state require income and asset information for long-term care services to be covered, but also any information regarding transfers for the prior five years (three in California). Because of the vast array of information needed, it sometimes takes applicants and their counsel several weeks to gather and analyze the documentation. Having the retroactive period helps applicants by not demanding every item needed immediately. It gives applicants and their attorneys a bit more time to do a thorough and complete application. State of the Union Several states have 1115 waivers eliminating retroactive Medicaid coverage that effects seniors – Arizona, Florida, Iowa, Indiana, Massachusetts, Rhode Island, and Tennessee. In Delaware, Hawaii, and New Mexico, retroactive coverage has been eliminated, but institutionalized individuals are exempt. For Arkansas, Kentucky, and New Hampshire, the previously enacted elimination of retroactive benefits is currently held up in litigation. So, while the litigation is pending, the entire waiver – including the elimination of retroactive benefits – has been set aside. Maine’s rule is as follows: “If otherwise eligible, retroactive coverage will be granted if the Social Security number requirements are met during the application process. If the Social Security number requirements are not met, but at a later date the individual cooperates with these requirements, the retroactive coverage cannot be granted.” Where the Issue is Heading There has been a recent trend in using 1115 waivers to restrict access to Medicaid. In addition to the elimination of retroactive coverage, such waivers have been used to impose Medicaid work requirements or impose a time limit on coverage. Other 1115 restrictions include premiums or monthly cost contribution requirements, tobacco premium surcharges, and the authority to cap enrollment. The Trump Administration has made it clear that restrictions such as work requirements and the elimination of retroactive benefits fall in line with their policy. There is a limit to restricting Medicaid, however. CMS Administrator Seema Verma has rejected waivers aimed to put lifetime limits on Medicaid coverage. Needless to say, the direction of CMS in granting waivers directly relates to the direction of the current presidential administration. If a change in administration is forthcoming in the current years, the trend in Medicaid restrictions may cease or reverse. For now, states are free to submit waivers to eliminate retroactive coverage, and CMS has indicated through prior action that they would likely grant such waivers. Conclusion States may try to rationalize the elimination of retroactive coverage, but not all agree with their logic. Requiring individuals that are eligible for Medicaid to apply early only increases their medical costs over time – as those without coverage are not as likely to seek out care as those with free or low-cost access. Paying the three months’ worth of medical services leading up to an individual application for benefits is likely less than the cost of years of routine care over the long-term. Requiring individuals, living paycheck to paycheck, or on a fixed income, yet not needy enough for Medicaid, to purchase expensive commercial coverage is an excellent way to increase the likelihood of their impoverishment. Consequently, such a practice will result in the creation of a new group of Medicaid-eligible individuals. States requesting a waiver to eliminate retroactive Medicaid may be thinking shortsightedly. While these states may save in the short-term by avoiding payment for those few months of expenses, the long-term prognosis is likelier to create substantially more cost to the state. Delaying the request for help from the state should not be castigated, it should be promoted. Retroactive payments are a logical reward. “Thank you for trying to manage your healthcare needs for as long as you could. Let us ease the burden of the costs you could not pay for, now that you are eligible for assistance.” Not, “You should have covered your bases from the get-go. You are on your own for the medical debt you acquired.” Such a thought goes against the fundamental principles of the Medicaid program. Read More

As your estate planning attorneys, we are here to help you when your family member or loved one dies. If you are simply too overwhelmed to call us during the first couple of weeks after your loved one passes away, it is important to keep in mind that there are several practical and legal considerations that the person named as the executor of the estate or trustee of the trust should address in the initial weeks following the death, prior to the administration of the estate or trust. During this stressful and emotional period, it is easy to forget about certain tasks which may lead to problems if left undone, as well as important legal considerations you must heed. Here is a list of some important initial steps: Checklist of Initial Responsibilities Make burial arrangements. If some time is likely to pass before burial, for example, if there will be a delay prior to a special ceremony and burial in a veteran’s cemetery, make arrangements with your funeral home to store your loved one’s remains until the service. Obtain ten original certified death certificates. After someone passes away, their death should be registered with the local or state vital records office, which can then issue official death certificates. A state-licensed funeral director or coroner typically prepares and files the death certificate with the state. A death certificate is often required to claim life insurance benefits, close bank accounts, transfer titles, and take care of other matters connected to your loved one’s estate. Ascertain the immediate needs of beneficiaries and expenses that must soon be paid. Determine which of your loved one’s accounts contains cash that can be accessed for the beneficiaries’ needs and other expenses. The last thing you want is for an item to be repossessed or the electricity turned off due to non-payment. Arrange care for animals. If your loved one had pets or other animals, you should immediately arrange care for them. Your loved one’s will or trust may name the person your family member has chosen to care for them, but if there was no will or trust, you may need to arrange for someone to look after the animals until a caretaker can be determined. Inspect your loved one’s home to make sure it is secure. If your family member owned a home, walk around the home to make sure any points of entry are locked and that there are no maintenance issues that need to be addressed. Notify the police department that the home will be vacant so police can patrol the area more frequently. Change the locks. It is important to change the locks on the home to ensure that neighbors, service providers (maids, dog walkers, etc.), and even family members who had keys are no longer able to enter the home. This is important to ensure that no one prematurely removes any property from the home, even if they are well-intentioned. Remove valuables from the home and store them in a secure place. Jewelry, cash, works of art, furs, and other especially valuable property should be kept in a safe place until the estate or trust is administered and the items are transferred to the proper beneficiary. Check on the insurance coverage for these items. Secure vehicles. Any cars your family member owned should be locked. No one should drive the car, and the odometer should be checked to determine the mileage at the time your loved one passed away. If the car is parked on the street or in a driveway, you should notify the police to keep a closer eye on it. Insurance on the car should be maintained. Arrange for the home and yard to be maintained. Continue lawn care and general home maintenance to ensure that the house does not become an eyesore and a target for thieves. Discontinue services that are no longer needed, and hire any new personnel required by a beneficiary or dependent. If your deceased loved one had domestic help, security guards, or assistants that are no longer needed, stop the services after checking any contracts or written agreements. If a beneficiary or dependent now needs the help of an assistant or maid, hire the necessary workers to ensure they receive the proper care. Leave the heat or air conditioning on. To prevent any problems that may arise as a result of very high or very low temperatures, it is important to continue to heat and cool the home. In addition, if the home is vacant during cold winter months, a faucet should be turned on to prevent pipes from freezing and bursting. If required, alert local officials of the vacant home. In some jurisdictions, a higher tax rate is applied to vacant homes, so in those places it is important to notify the city if the home is vacant and part of an estate administration. Contact agencies to cancel benefits. If your family member was receiving Social Security, veterans, or other benefits, notify the relevant agency of the death. Do not cash any benefits checks that arrive after death, and if any benefits are received covering a period after death, they should be returned. Depending on the timing of your family member’s death, the government agency may automatically withdraw the last electronic payment. Cancel subscriptions and monthly service agreements. If your loved one was receiving a newspaper, magazine, or other regular subscription or monthly service, it is important to cancel them, and if applicable, request a refund. Cancel credit cards and charge accounts. Notify all of your loved one’s credit card companies of the death and close the accounts as soon as possible. It is also important to notify all three major credit bureaus of the death to avoid identity theft. Locate insurance policies. Find all your loved one’s insurance policies. Call the homeowner’s insurance company to confirm that there is coverage for fire, flood, and/or other needed items as part of the homeowner’s insurance policy. In addition, locate your family member’s life insurance policies, which may have been issued by alumni associations, travel clubs, credit card companies, trade associations, etc. Gather personal records. Locate all bank statements, checkbooks, canceled checks, and at least the past three years of income tax returns. Determine if anyone owed money to your loved one. While gathering the needed personal records, check to see if there are any documents reflecting debts owed to the deceased individual. Contact those individuals to collect the amounts owed. Legal Considerations to Keep in Mind Once your loved one has passed away, anyone authorized by a power of attorney to act on his or her behalf is no longer valid. Therefore, if a family member was in charge of paying the deceased person’s bills as an agent under a financial power of attorney, that person should stop paying those bills after the individual has died. The executor of the will or trustee of the trust is now the proper person to handle those matters. If your family member made arrangements for his or her funeral in advance utilizing a document such as a Remembrance and Services Memorandum, the deceased person’s written instructions may be legally binding under state law, and thus, the survivors may be obligated to comply with them. It is also possible that your family member pre-purchased their funeral arrangements through a local funeral home. If any of your loved one’s property or money was not part of his or her trust at the time of death or was not made a part of the trust at the time of death automatically, that money or property must be handled through the probate process. That is, the money or property cannot be distributed to anyone, including the trust, without involvement by the probate court. If there is any possibility that you or any other family member may want to disclaim any money or property you will inherit, it is important not to take any action that would be considered an acceptance of the inheritance. For example, if you are one of the beneficiaries of your loved one’s life insurance, but decide that you would like for your share to go to the next beneficiary in line, do not complete any paperwork or accept checks involving the life insurance policy. Do not prematurely distribute any of your loved one’s property or funds. The executor of the will or trustee of a trust are the only individuals allowed to distribute your loved one’s money or property and must pay all debts and taxes before transferring any funds or property to the beneficiaries. Call Us As Soon As Possible Although you can take care of many of these initial concerns on your own, the administration of your loved one’s estate or trust can be quite complex. Even small mistakes could end up being a major headache. It is important to contact an experienced estate planning attorney to help you with probate or trust settlement and/or administration, as well as any other legal matters that may arise during this difficult and emotional time. Our goal is to provide you with peace of mind by guiding you through the administration and settlement of your family member’s trust or estate, so please call us as soon as you can. Read More

In 2008, Congress recognized the need for the public to understand the importance and benefits of estate planning by passing House Resolution 1499, which designated the third week of October as National Estate Planning Awareness Week. Nevertheless, according to a 2019 survey carried out by Caring.com, 57% of adults in the United States have not prepared any estate planning documents such as a will or trust despite the fact that 76% viewed them as important. Many of the respondents said this was due to procrastination, but many others mistakenly believed that it was not necessary because they did not have many assets. Estate Planning Awareness Week is a great reminder of the need to explain what estate planning is to your clients and why it is crucial for them not to delay putting an estate plan in place, regardless of the size of their estate. What Is Estate Planning? Estate planning is an important part of your clients’ financial planning, as the creation of an estate plan enables the growth, protection, and transfer of their wealth in accordance with their identified goals. It involves much more than simply designating who they would like to receive their property when they die. An estate plan will help provide financial stability for your clients’ surviving spouse, preserve and protect their assets, minimize tax liability and other costs, support their designated charities, and name trusted individuals to make decisions on their behalf in the event they become incapacitated. As your clients’ trusted financial advisor, you can help them become aware of their need to create or update their estate plan to achieve their goals. A good estate plan typically consists of multiple components that are tailored to meet your clients’ individual goals and needs. Ask your clients if they have in place some of the most commonly used estate planning tools, which include: Last Will and Testament. It is essential for your clients to have a will: If they do not, their property will be distributed according to state law rather than in a way they have chosen. Although the results are occasionally the same as they would have wanted, they more often are not. Most people would rather not have this decision made for them, as it can sometimes lead to very undesirable and unintended results. In a will, your clients can name an executor–also called a personal representative–who will help carry out their wishes as specified in their will and designate a guardian for minor children or other dependents. Trust. A trust may also be appropriate for clients who seek privacy and wish to avoid probate. Many people find a revocable living trust to be beneficial, as they can retain control of their assets prior to their death, but those assets can pass immediately to their named beneficiaries without probate after their death. Trusts are often superior tools for incapacity planning. Some types of trusts also provide tax advantages or asset protection. Powers of attorney. A financial power of attorney will allow your client to designate an individual to make financial and property decisions on their behalf. Financial powers attorney enable a trusted individual to file taxes, pay bills, apply for government benefits, and much more. Financial powers of attorney can be customized to meet your clients unique situation and goals. Similarly, a medical power of attorney enables your client to designate a person they trust to make medical decisions for them when they are incapacitated or otherwise unable to communicate. Advance directives. Also known as a living will, an advanced directive is a legal document used to provide instructions for your clients’ family, doctor, or other healthcare provider if they unable to communicate the information themselves, including, for example, whether or not they wish to remain on life support if they are in a persistent vegetative state or terminal condition. Beneficiary designations. Some property, including trust assets, can pass to your client’s beneficiaries without having to be mentioned in their will or go through the probate process. This includes funds held in IRAs and 401(k)s, and life insurance. For some types of accounts, such as 401(k)s, a spouse is the primary beneficiary by law unless the spouse signs a waiver. Nevertheless, it is essential for your clients to name a primary beneficiary, as well as a contingent beneficiary, to receive the funds upon their death for these accounts or policies. Otherwise, the funds held in these accounts, or the death benefit in the case of a life insurance policy, may be distributed according to state law or pursuant to the terms of the retirement plan rather than according to your clients’ wishes. How to Broach the Subject Estate planning is often a difficult topic to bring up with clients, as it brings the unpleasant topics of aging and death to the forefront of their minds. However, creating or updating an estate plan can also provide significant peace of mind for your clients by ensuring their life savings are protected, plans are in place in the event they become ill, and their property is passed down according to their wishes. One way to begin the conversation is to talk first about whether their beneficiary designations accurately reflect their wishes, and whether the primary beneficiaries of their accounts or policies could actually handle a lump sum payment or windfall upon their death. You might discover that their goals and wishes are not as straight forward and that they need estate planning to ensure their assets are transferred to whom they want and in the way they wish. They might have specific ideas on how to provide for the care of any children, grandchildren, or pets. Your clients may also have concerns about how their finances, property, or business interests would be managed in the event they become incapacitated. Let’s Work Together Educating your clients about the need for a comprehensive estate plan will demonstrate that you care not only about their present financial planning, but also the protection of their legacy, their personal wellbeing, and the welfare of their children or grandchildren. As your clients’ financial advisor, you are closely attuned to their financial needs and goals, both for themselves and for their families, and you keep abreast of changes in their life circumstances, i.e. divorces, marriages, children reaching adulthood. As a team, we can work together to make sure that your clients have an up-to-date estate plan that provides financial security for themselves and their families and makes arrangements for their care should they become incapacitated. Contact us today to discuss how we can collaborate for the benefit of your clients. Read More

It is easy to succumb to the dark clutches of depression at any stage of life. Life is full of surprises and twists, and not all of them have a positive effect on the psyche. However, once a senior is in the grasp of depression, it is often difficult to find release. More than 6.5 million Americans aged 65 and up are affected by depression. In this article, we will explore what depression is, what some causes are of depression in seniors, and some recent scientific research that has given insight on how seniors can take action to deter depression. What is depression? Depression is most often characterized by being sad. But depression can be so much more than that. In fact, for many seniors with depression, sadness is not their main symptom. More prominent symptoms may include trouble sleeping, feeling irritable or tired, being confused, or having attention problems. Because of this, depression can sometimes look like Alzheimer’s disease or other health conditions. Some medications can also exacerbate the effects and length of depression. Depression in seniors is more likely to lead to other health problems, including a heart attack. Likewise, depression can keep a senior from rehabilitating at an optimal pace. Depression can also increase the risk of suicide. The suicide rate for seniors aged 80 to 84 is nearly twice that of the overall population. Fortunately, some preventative measures can be taken to deter or prevent such gloomy depths in our later years. What Causes Depression in Seniors? An adverse health event may sometimes be a catalyst for symptoms of depression. Nearly a quarter of seniors who experience a stroke will develop clinical depression. Seniors who have suffered vision loss are at an increased risk of reporting depressive symptoms. When a senior’s body doesn’t let them function like they used to, daily life can be disrupted and the dread of continued health problems can loom in the back of their minds. An elder might be fearful of having to enter a nursing home or otherwise rely on others for care. And of course, reflecting on the end of life can sometimes be tumultuous and frightening. A widow/widower is also at a higher risk of depression, especially during the first year after the death of their spouse. Bereavement in folks over age 50 more than tripled the probability of depression. Losing a loved one can, understandably, be a devastating event in a senior’s life. Medical issues, such as brain chemistry and medication side-effects, can also cause depression in seniors. Restricted blood flow may cause blood vessels to harden and cause issues with brain function. Seniors should take their health seriously and have regular visits with medical professionals and care managers. Of course, depression is a medical condition and should be evaluated by qualified medical professionals if an elder is experiencing depressive symptoms. Besides medical intervention, let’s take a look at some other tools that seniors can arm themselves with. How Seniors Can Take Steps to Deter Depression Finding a Purpose in Life Most people want to feel that our existence is worth something – that our presence adds something to the world. As people age, their children grow up and begin their own lives, friends and loved ones pass away, their physical bodies slow down, and many are left seeking out new goals and ways to spend their remaining time. Despite this, there are some coping skills to help deal with the depression of aging. Depression has been shown to lead to a cognitive decline and may increase the risk for dementia. Establishing a purpose in life has a mitigating effect on depression and cognitive decline. A recent study used many factors – such as age, race, number of living siblings, and whether the participants had a significant other – to compare the rates at which the participants suffered from mental deterioration. The results were encouraging. Finding a purpose in life is shown to prevent, or at least slow, the progression of Alzheimer’s disease and other forms of cognitive degeneration. Since depression is often formed due to an adverse medical diagnosis, like Alzheimer’s disease, having a purpose in life may also curtail the resulting depressive symptoms as well. These results are not surprising considering the positive effects on mood and drive when one has goals and tasks to accomplish. How can a senior cultivate a purpose in life? Sometimes, this will involve caring for a loved one. Maybe the senior can get more involved with grandchildren, other seniors who need care, or a charity that they are interested in. Helping others can nurture a feeling of purpose in seniors. If the senior knows that someone is counting on them or that others value the senior, this may help deter depression and cognitive decline by igniting a purpose in their life. Other activities might include regularly scheduled visits to elementary schools to tell stories or read to the children, volunteering at an animal shelter, writing a memoir, mapping out family lineage, or generally finding something new to explore. Finding something or someone in life that brings joy and purpose to a senior is a major step towards their future well-being. Engaging in Interpersonal-individual Activities It is no surprise that staying active, enjoying hobbies, and growing friendships have a beneficial effect on mental health. Interestingly, some activities have much more benefit than others. A study on senior health shows that elders that spend time with specific family members or friends enjoy a greater level of protection from late-life depression. Those taking part in solitary or general social group activities did not realize as significant results. The study, published by The American Journal of Geriatric Psychiatry, explored a small test group of 48 older adults. Those seniors did not have a cognitive impairment but did have major depression. Each person received nine sessions of engage psychotherapy. Engage therapy is one that uses meaningful and rewarding activities at its core. Seniors engaged in either solitary activities, social group activities (such as church or senior center activities), or interpersonal-individual activities (connecting with a specific friend or family member) experienced an improvement in their depression. Meaning, those that connected with a specific person that they cared about decreased their depressive symptoms. These results are a reminder for seniors to keep in touch with those that bring them happiness. Encourage seniors to reach out to beloved family members and vice versa. A caregiver for a senior might try and reconnect the senior to loved ones who may have lost touch over the years. Maybe the caregiver can best facilitate the engagement, through aiding with transportation, communication, and scheduling. The study suggests that bonding with others has protective benefits for the minds of seniors. Perhaps the mixer or social event that a senior chooses to attend will not have significant benefits in the long-term, but the potential friendships developed there will. Staying Physically Active In a third study, published by the American Journal of Physiology-Cell Physiology, researchers studied the effects of staying physically active on the minds of seniors. There has been a plethora of prior research on the connection of exercise and mental health in young adults, but limited scientific data on the senior population. Specifically, it was unknown whether muscle deterioration, which invariably accompanies aging, would prohibit seniors from achieving analogous results to that of younger study subjects when analyzing the effects of exercise on mental health. The study analyzed a group of male seniors who followed a specific exercise program for 12 weeks. The patients engaged in high-intensity interval training, in conjunction with strength training sessions. The results were positive. David Allison, the lead author on the study, said “Even individuals who are already metabolically healthy — with good weight, good blood pressure, and blood sugar levels — need to prioritize regular physical activity to maintain or improve upon their mental health. We have shown such benefits are still achievable in old age and further emphasize the importance of maintaining an active lifestyle.” While not all seniors can engage in high-intensity interval training, many seniors can start somewhere. Encourage a senior to offer dog walking services to a friend who may be ill, or to park at the far end of the parking lot at the grocery store. A senior with more physical abilities might take part in the National Seniors Games. Competitions include bowling, horseshoes, power walking, shuffleboard, softball, and more. While the 2019 games have recently passed, now is the time to start training for next year! A recent study published by the International Journal of Behavioral Nutrition and Physical Activity found yoga to improve strength, balance, flexibility, and mental well-being. While there are a plethora of yoga variations, many seniors of all abilities have taken up chair yoga. This type of yoga has been modified so that certain yoga poses can be done while seated, making yoga more accessible for those with mobility issues. Yoga has been scientifically associated with decreasing stress hormones, alleviating anxiety, and possibly reducing inflammation. An improvement in heart health is also a benefit. It has been illustrated that test patients over age 40 who had practiced yoga for five years had lower blood pressure and pulse rate than those that didn’t practice yoga. Resolving Regrets When a senior looks back on their life, what regrets do they have? How are these thoughts impacting their current emotional well-being? Having past situations where one would have preferred to act differently, or otherwise, have a different outcome to the situation, is completely normal. However, living in these pangs of guilt or remorse can be detrimental to an elder’s health. In a study of 213 lower-income older adults, regrets about career, education, and marriage were common. However, more intense regrets originated from finances, family conflict, and the problems of their children. The study found that having regrets was a significant predictor of depression in seniors. How can a senior work towards revolving regret? Maybe the senior can obtain closure by writing a letter to someone involved in the remorseful situation. The senior may find peace by explaining that they are sorry and wished things would have worked out differently. If a senior has lost contact with a family member, it might be possible to rekindle that relationship in a healthy way. A journal may help a senior deal with past regrets by highlighting things that the senior is thriving at in the present and how their life is interesting and full. Contemplating current feelings and events can be a reminder to live in the present. Alternatively, the senior can make a list of things that they learned about from that regretful situation and how they have used the experience to learn and grow. Realizing that everyone makes mistakes, but it is how you respond to those mistakes and alter future decisions, is what is important. The senior may benefit from therapy with a qualified professional, to see how their regret is impacting their life and work towards resolving those feelings. The therapist may help them answer questions like “How are past regrets effecting your actions and current relationships?”, “Have you changed for the better due to that regretful situation?”, or “Is there anything you can do now that will improve the situation or your feelings about the situation?” Try the Mediterranean Diet A recent study that was presented to and discussed by the American Psychiatric Association indicates that adherence to a Mediterranean diet may reduce the risk of late-life depression. The Mediterranean diet plan has been touted in America since the 1960s and has been linked to improved physical health and associated with longer life. Heart health is a big benefit of the Mediterranean diet. However, the research on the mental health benefits of the plan is fairly new. Researchers in Greece conducted a study on participants in day-care centers for seniors. Of the participants, 64% reported medium adherence to the diet, and 34% displayed a high adherence to the diet. Although cause and effect could not be unequivocally proved, the research team ascertained that a diet low in poultry and alcohol and high in vegetables decreased the probability of developing symptoms of depression in those seniors. The authors of the study concluded, “Adherence to a Mediterranean diet may protect against the development of depressive symptoms in older age.” What is the Mediterranean diet? It consists of fruits and vegetables, legumes, fish, whole grains, beans, herbs, nuts, and of course, olive oil. Moderate amounts of dairy and eggs are allowed. Red meat, salt, butter, and sweets are a rare allowance. And an occasional glass of red wine can be enjoyed. We’ve all hear the adage, “You are what you eat.” The Mediterranean diet may have not only physical health benefits but mental health benefits as well. If the Mediterranean diet isn’t right for the senior, then make sure whatever diet they follow is a nourishing one, in line with their healthy lifestyle. In Summary Everyone wants to be happy. No reasonable person desires to succumb to sadness and depression, especially at a time when one should be celebrating their life and enjoying the years they have left. While seeking professional medical advice would be a recommended first step should a senior start experiencing signs of depression, there are some things that a senior can do to deter depression possibly. This includes finding a purpose in life, connecting with specific friends or family members who bring them joy, staying physically active, and resolving their regrets. The Mediterranean diet might even do the trick! Mental and physical health are intertwined, and helping our beloved seniors stay happy and healthy benefits us all. Read More

Your Questions About Debt After Death Answered Have you ever wondered what would happen to your debts if you passed away before paying them off? Will your loved ones be obligated to pay your debts or will they simply disappear? Every person’s debt landscape is different, and the best approach is to create a tailor-made estate planning strategy to make sure your debt doesn’t come back to haunt your family after you’re gone. Common questions about debt after death Many individuals don’t have a clear picture of what happens to debt when they die, so you’re not alone if you’re confused. Even if your estate plan includes a power of attorney, lifetime trusts for your beneficiaries, and other robust planning tools, not taking into account your debt when designing your plan can cause your plans to unravel. Here are some common questions about debt: Does my debt disappear after I die? Will it need to be paid by my family? When might someone be liable for the debt? What can be done to protect my family against it? Different types of debt lead to different consequences Most people have a number of different types of debt, which complicates the anxiety of post-death debt even further. But if we examine the different types of debt, it becomes easier to detect what types of financial actions are needed to protect your family from trouble later on. Planning Tip: In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), assets and debts acquired during marriage are owned between spouses. Keep that in mind with each of the following types of debt. Student loans: If there is enough money in your estate to pay off your student loans, your student loan collectors can make a claim against your estate. It’s important to note that not all student loan companies collect on debt after death. Federal loans are generally discharged upon death, so you won’t have to worry about those. But, any co-signers on your loans will still be held responsible for your student debt. For private student loans, you’ll need to look at the terms in the promissory note since some loans are discharged on death while others aren’t. Credit cards: Much like student loans, credit card companies can make a claim against the estate. In addition, outstanding credit card debt is not transferred to family members with the exception of community property states or if you jointly held the credit card, say with a sibling or a spouse. Mortgages: Mortgage debt is a type of debt most likely to fall upon your family members after your death. Whether the property is jointly-owned, inherited by a beneficiary through a transfer on death deed, or inherited through a trust, the surviving party will very likely need to continue to make payments. This obligation remains because mortgages are secured debt, unlike most credit cards or student loans. Although the personal obligation to pay a mortgage debt may expire upon your death, the security interest in the property can only be extinguished by repayment of the debt. Car loans: A number of things can happen this situation. Either the outstanding balance is covered by what’s left in the estate, the car is repossessed by the lender, or the beneficiary who inherits the car essentially becomes responsible for the debt. Similar to mortgages, the personal obligation may expire upon your death, but the security interest in the car can only be extinguished by repayment of the debt. Personal loans: When it comes to personal loans, it can be difficult to determine the debt’s efficacy once the debtor passes away. It depends upon whether or not the loan was secured and what sorts of legal written documents were put in place at the time of the loan. In most cases, the lender will look to the debtor’s estate for repayment. It is always a good idea to bring a copy of all of the loan paperwork to us so we can examine its terms and help you develop an action plan. Tax debt: Tax debt owed to the IRS or a state department of revenue can be very complex. The outcome here can vary greatly depending on what type of tax debt you have, whether the government has filed a tax lien, and whether any statutes of limitation have passed. If you owe tax debt, you are not alone, but always let us know so we can incorporate it into your planning. Child support and alimony: Much like the other forms of debt listed here, back child support debt does not cease to exist after the paying individual’s death. A payee former spouse can generally file a claim against the estate for any back-child support. In some cases, your divorce decree may require you to purchase a life insurance policy. It’s a great idea to let us know about this arrangement so we can factor it into your overall estate plan. What do you do when planning? Each person’s debt is different, so your best bet to avoiding your debt falling on your loved ones is to work with us to develop a tailored strategy to deal with your unique set of circumstances. There are many tools available to help manage the risk that debt presents to your family. Don’t hesitate to reach out with any questions on this or any other estate planning topic. We are always here to help. Read More

Farming has been the cornerstone of our country for hundreds of years. Although the percentage of the population engaged in farming has decreased dramatically since our country’s founding, there are still two million farms operating over 900 million acres of land in the United States[1], 98% of which are family farms[2], with six million people living in households attached to a farm. As a farmer or farm owner, you may have a stronger emotional attachment to your business than other business owners. This is probably because the farm has been in your family for generations and is also the location of the family home. To ensure that this legacy and business is protected for future generations, it is crucial that you do the proper planning. Understand Everyone’s Goals The key to a smooth transition, regardless of when it happens, is to understand everyone’s goals. Because the family farm is such a large and complex asset, it is necessary for everyone to be prepared for this transition (whether it occurs at your retirement or death). Your Goals It is important that you take the opportunity to sit down and evaluate your own goals for the future and your goals for your family and the business. Because the farm may be a substantial or sole source of income, deciding to retire and hand over control may be financially (and emotionally) difficult. It signals a new chapter in your life, and you may be wondering how you are going to financially support this new chapter without the income from the farm. A well-thought-out transition plan can enable you to transition out of the business in the way you want. Especially if the farm has been in your family for generations, it is probably important to you that the farm continues to be operated by future generations. To accomplish this goal, there are several issues you should consider: What if not all of my children want to participate in the farming operations? What if someone in the next generation already has or could have creditor or judgment issues? How do I protect the farm and provide for my family? With the proper planning, we can help you address these concerns and achieve your ultimate goals. Family’s Goals The concerns of family members that are in line to receive the ownership and control of the family farm are likely to differ from yours. By wanting to continue the farming operation, it is clear that they value the legacy of the farm and the history it represents to the family, but they may have different needs. With a highly valued asset, such as a farm, the next generation will want to receive it in a way that minimizes or eliminates transfer taxes. The last thing your family wants is to have to sell the farm to pay the estate tax bill upon your death. As they take on a larger role on the farm, the next generation may want to have more decision-making authority and even partial ownership. By planning ahead, we can help structure a transition that allows for a smooth transfer of control. Make a Plan and Keep It Up to Date Estate Plan Just like a productive farming operation, a well-prepared estate plan needs to utilize the right tools, such as a will, trust, and powers of attorney, to carry out your objectives. A properly executed trust and financial power of attorney will help protect you and the business should you become incapacitated or otherwise unable to manage the farm. As with any business, when the key person becomes incapacitated, things can go off the rails if there is no one ready to step up and take charge. These documents appoint a person, ahead of time, to make decisions on your behalf, instead of waiting until you become incapacitated and making your family go to court to appoint someone. Upon your death, a trust helps to ensure that what is passed to your surviving spouse or beneficiaries is protected from future creditors or judgments. It also allows the assets to be distributed according to the terms of the trust without interference by the probate court. Not only does this create a smoother and quicker transition in ownership, but it also maintains family privacy and reduces expenses. IMPORTANT: You need to make sure that you work with an experienced estate planning attorney to ensure that any trust that is created and funded with farming assets is structured in a way that does not disqualify or reduce any governmental farming subsidies you could be receiving. If you already have an estate plan in place, then it is a good idea to review your documents on a regular basis. In life, there are many personal and legal changes (births, deaths, marriages, divorces, illnesses, bankruptcies, lawsuits, etc.) that can occur. Having outdated documents can sometimes be worse than not having any documents at all. WARNING: It may be tempting to title assets jointly with a family member or to execute a transfer-on-death deed to facilitate an “easy” estate plan. While these solutions will transfer the property to the survivor without much involvement by anyone else, these types of ownership are full of disastrous possibilities that could undo everything you have worked hard to build by subjecting the farm to the claims of the creditors of all the other owners, as well as yours. Business Planning Estate planning is just one prong in ensuring the survival of the family farm. It is important to make sure that the farming structure and operation is set up to accomplish the family’s objectives as well. The first step is to evaluate the current business structure being used for the family farm. Most farming businesses, regardless of size, are held as sole proprietorships.[3] It is likely you own the farming land and equipment in your own name (or jointly with a spouse) and possibly have mortgages or loans on these assets in your own name as well. Sole proprietorships are attractive because they do not require any filings, except for registering a trade name if you want to operate the business under a name other than your own. There are also no annual filing requirements or fees owed for this type of business structure. While a sole proprietorship is incredibly easy to form, since it happens by default, it also opens you up for unlimited liability since you and the family farm are considered to be the same legal entity. This means that your personal creditors could look to farm assets to recover judgments against you. It also makes transitioning the farming operation a lot more difficult should you become incapacitated or die. Alternatively, a limited liability company (LLC) or a family limited partnership (FLP) can be formed to protect assets, reduce tax liability, and provide for an orderly transfer of control and ownership with minimal conflict between family members. Using these business entities, a management and decision-making structure can be established that will not only facilitate the current success of the farming business but also allow all the affected family members to feel assured that plans for the farm’s future operation will be implemented. A properly implemented decision-making structure can also provide continuity in operation should you become incapacitated and unable to participate in the farming activities. Tools such as a buy-sell agreement, management agreement, or employment agreements can be used to help facilitate this smooth transition. It is important to note that with either of these business structures, the proper business formalities must be followed, such as annual filings and payment of the required fees to the secretary of state, to maintain the liability shield around the family farm. Liquidity Needs More than likely, the family farm is the largest asset you have. This can pose a challenge when funds are needed for your long-term care, providing an inheritance to a non-farming heir, and/or covering any state or federal tax liability that may be assessed on your death. Your financial advisor, insurance specialist, and banker can assist you with securing lines of credit and the proper amount of disability insurance, long-term care insurance, and life insurance. While no one wants to have the conversation about possibly ending up in a nursing home or dying, the financial consequences of these events to a farming family can be more severe than they are for most families. Failing to plan ahead may require your family to sell the farm in order to pay for the medical bills, trust or estate administration expenses, or other debts when you become ill or pass away. By working with a trusted advisor team, you can protect your family and your business through all stages of life. We’re Here to Help We understand the importance of the continuation of your family farm and legacy for future generations. We are here to assist you with a coordinated plan and guidance to ensure that this legacy will be a lasting one. Give us a call today so we can discuss the right plan for you and your family. [1] “Farm Income and Financial Forecasts for 2019,” U.S. Department of Agriculture, webinar transcript, slide 2 accessed August 14, 2019, https://www.ers.usda.gov/media/10186/farm-income-webinar-march-2019-transcript.pdf. [2] “America’s Diverse Family Farms,” U.S. Department of Agriculture, (December 2018), p. 3, accessed August 12, 2019, https://www.ers.usda.gov/webdocs/publications/90985/eib-203.pdf?v=9520.4. [3] 89 percent. “America’s Diverse Family Farms,” supra note 1, at 18. Read More

Just like other important life tasks, your estate plan deserves your time and attention. It’s important that you work with us to review your estate plan at least once a year. Think of this as your estate plan’s annual physical exam, and remember—prevention is the best cure. An annual exam isn’t necessarily the only time we see a doctor. Similarly, an annual planning meeting isn’t the only time you need to consider your estate plan. The occurrence of special life events may mean it is time to pick up the phone and call us. If you experience any of these significant life events, get in touch with us, and we’ll make sure you are up to date. Marriage Have you recently gotten married? Congratulations! Marriage means new ways of sharing and managing finances and assets. As a result, this is an important time to revisit your estate plan. With this life change, you’ll need to contact us to make any changes to your beneficiary designations, update your will/trust, and update your powers of attorney. This is especially important if this is a second marriage and/or there are children from a previous relationship involved. Proper estate planning is the only way to ensure that you are protecting your loved ones the way you want. New Job A new job presents an exciting new set of challenges and opportunities to explore. It also brings very real financial changes. You may be receiving new benefits that require new beneficiary designations on your estate plan. When you are filling out these new forms, it is important that the beneficiaries are named appropriately so your estate plan will work as designed. In addition, you’ll need to make sure your estate plan reflects the change to your financial status, whether that’s a pay increase or a pay cut. Loss of a Job Similarly, leaving employment brings big changes to your financial situation and to your estate plan. It’s important to update your plan to reflect the loss of employer-provided benefits such as life insurance, as well as the change in financial status. Retirement Welcome to your golden years! Retirement brings lifestyle changes, more time for loved ones, and important financial developments. Your estate planner can help you change your plan to reflect that you’ve stopped earning income and have entered the phase where you will be beginning to use your retirement account. Also, with this new-found freedom, you may find yourself traveling more, making documents such as a Financial Power of Attorney and Health Care Power of Attorney more crucial. Moved If you have moved across state lines, you’ll need to consult with a local estate planning attorney to make sure that the provisions in your estate planning document are still applicable in your new state. A new home is a new asset, and it is important that this asset is titled appropriately to carry out your overall estate plan. Divorce Divorce is, of course, a difficult time. But it is critical to look out for your financial health and future if it occurs. You should make any needed updates to the beneficiaries on your estate plan and ensure your beneficiary designations on any life insurance or retirement accounts are changed so that your ex-spouse does not end up with your assets upon your passing. Death There is so much to take care of after the loss of a loved one. Take some time, but don’t forget that your estate plan will need to be updated to reflect the change that has taken place. You may need to remove the deceased loved one as a beneficiary from any will, trust, life insurance policy, or retirement account and determine what will now happen to that share. It is also important to verify that your deceased loved one was not appointed as a fiduciary, or if so, to make the necessary adjustments to your documents. Received Inheritance The death of a loved one not only brings a loss but may result in an inheritance. An inheritance can mean property, money, real estate, and more. An increase in assets may necessitate a change in your estate planning strategy. Also, depending on the form of the inheritance you’ve received, there may be additional asset management or asset protection concerns that your estate planner will need to address with you. Birth or Adoption Welcoming a new child to the family is an unforgettable time. You may feel inspired to look toward the future, and you should! This is a great time to plan to provide for your new family member’s future. Due to the new arrival’s young age, it is important to consider how you would like to provide for the child and who is going to be in charge of handling the assets while he or she is a minor. We’d Be Honored to Help Whatever life brings you we are here to help you weather the storms and celebrate the milestones. We’d be honored to help you ensure your estate plan is up to date to reflect these life changes. Give us a call today! Read More

You’re not a carbon copy of your neighbor. Likewise, your estate plan shouldn’t be a carbon copy of theirs. A qualified estate planning team’s approach to counseling will be tailored to your specific needs. As your team works together to produce, tailor, or edit your estate plan, one key tool to consider is the niche trust. What is a trust? Usually when we speak about a trust, we mean an “express trust.” An express trust is a three-way relationship between the grantor, the beneficiary or beneficiaries, and the third party, or trustee. The grantor has assets he or she wishes to distribute in a specified way to the beneficiary, and the trustee holds those assets on behalf of the beneficiary. Your assets, financial needs, and wishes are particular to you, so your attorney’s use of trusts needs to be a nuanced strategy. Enter the niche trust. These trusts are designed for very special situations and fulfill certain particular needs. Your attorney can help you decide which of them may be right for you. Health and Education Exclusions Trust (HEET) This trust is tailored to help you avoid paying gift tax on tuition and medical care expenses for individuals two or more generations younger than you (grandchildren, great-grandchildren, etc.). Tuition payments made from a HEET Trust directly to an educational institution on behalf of one of these beneficiaries are not subject to gift tax. Similarly, payments made directly to a medical care provider that are not reimbursed by the donee’s insurance are not subject to gift tax. However, in order to qualify for these benefits, at least one beneficiary of the trust must be a charitable organization. These payments, if made on behalf of a “skipped person” from a non-Generation Skipping Transfer Tax (GSTT)-exempt trust are not considered GSTT transfers. This is a great option if you have already used your GST exemption. Pet Trust This trust can either stand alone or be part of a revocable living trust. Pet trusts are used to provide for the care of pets after you pass or during any period of incapacity, and to appoint someone to care for them. A pet trust also nominates someone to handle disbursement of funds to cover pet care. Gun Trust A gun trust is used to pass firearms to heirs in compliance with state and federal regulations and outside of probate. Due to the regulations and penalties for violating state and federal firearms regulations, it is crucial that you work with a qualified estate planning attorney when planning for the distribution of firearms. Incentive Trust With an incentive trust, assets are held for the benefit of a beneficiary who must meet certain requirements before a distribution will be made. These trusts are put in place by you, the grantor, and certain requirements defined by you must be met prior to the distribution of any of the principal or income. For example, you could stipulate the funds be distributed: Only when the beneficiary has graduated from college. Only if a beneficiary abstains from illegal drug use While being able to put stipulations on a beneficiary’s inheritance may sound appealing, it is important to note that conditions for the disbursement of assets cannot be illegal or against public policy. Gifting Trust Using either the annual gift tax exclusion or lifetime gift tax exemption, a gifting trust holds and invests property for the benefit of family members. This can be a great strategy for transferring family wealth to someone in a lower income bracket. If you want to use the annual gift tax exclusion to shelter gifts to the trust for gift tax purposes, you will need to include a Crummey power. A Crummey power is a technique that allows a person (beneficiary of the trust) to receive a gift that would not usually be eligible for gift tax exclusions, and makes that gift eligible. To accomplish this, after each annual gift is made, the beneficiary will be given the opportunity to withdraw the amount. However, in most cases, the beneficiary will leave the money so as to ensure you will keep making the annual gifts according to the original plan. Because gifts can be made annually, you can stop at any time. Supplemental Needs Trust (3rd Party) In a supplemental needs trust, assets are set aside for the benefit of a beneficiary whose disabilities may allow that person to receive public assistance for medical and other care expenses. In order to guarantee your beneficiary will not lose government benefits or fail to qualify for those for which they would otherwise be eligible, it is important to consult with an experienced estate planning attorney. Standalone Retirement Trust This trust is designed to receive “qualified retirement accounts” like IRAs and 401(k)s. Standalone retirement trusts can be set up as either revocable or irrevocable, and provide additional protections for the inherited retirement account. While the future of the lifetime “stretch” for non-spouse beneficiaries is still in question, this type of trust is still a great alternative to allowing a beneficiary to immediately cash out an inherited retirement account. This can be an important consideration when planning for retirement if you anticipate having a large sum remaining upon your death. Qualified Personal Residence Trust (QPRT) With a QPRT, a personal residence is the main asset of the trust. You keep the right to live in the home for a specified number of years, and after that term ends, the home is transferred to your named beneficiaries. This means if you survive the term of the trust, you must move out or begin paying rent to the trust in order to remain living there. This type of trust can reduce the burden of gift tax that will be incurred when the residence is transferred to the named beneficiary. We Are Here to Help All of these trusts are tools in building a comprehensive, personalized estate plan that will make your estate’s future a bright one. Estate planning must be a collaboration, taking into account your wants and needs and drawing on the expertise of planners and attorneys. Don’t hesitate to reach out today to work with us. Together, we can make your estate plan dreams a reality. Read More