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Financial advisors often have a clear path to starting the estate planning discussion when their clients have children, as many estate planning discussions center around clients’ objectives for passing their wealth, properties, and legacy to the next generation. Because of this traditional emphasis on the next generation, individuals and couples without children can easily arrive at the conclusion that they don’t need the same level of detail in their own plans or, worse yet, that they don’t need a plan at all. Nevertheless, there are several ways to help estate planning resonate with individuals and couples who aren’t parents. Reframe the planning conversation You can keep these clients engaged and help them find fulfillment by shifting your message away from discussions about bettering future generations and focusing instead on ways to plan for life, the future, and a legacy. Remind them that estate planning deals with a wide range of important issues like ensuring trusted people can make decisions if the client is unable to do so because of illness, incapacity, or death, and supporting meaningful causes they care about. Planning for flexibility and the future “what-ifs” of life is important for young, child-free clients. Working successfully with these clients involves helping them pinpoint their core motivations and goals regarding their wealth and legacy. Ask them to reflect on the following questions: Why are you saving and investing? What do you want to accomplish during your life? What legacy do you want to leave? What impact do you want to leave? Exploring these topics helps clients without children become engaged in estate and financial planning. Think upstream for younger clients Rather than directing their assets toward their descendants, some clients, especially young, single, and child-free clients, may be inclined toward transferring their wealth “upstream” to their parents or grandparents. Issues arise, however, when these plans are not optimized for the issues faced by older beneficiaries. Certain estate planning solutions can help them make a positive impact on their older loved ones’ lives in regards to Medicaid, asset protection concerns, and blended families. Clients who want to leave their wealth “upstream” must discuss their goals with an estate planner to ensure the plan will work as intended. An emphasis on philanthropy Charitable planning may be more prevalent for clients without children. This is especially true for older individuals who have built lifelong connections to a particular passion that they’d like to support. Talking to these clients in terms of their potential for creating a positive impact is a helpful strategy for all parties involved. In many cases, a comprehensive plan may be a better strategy than simply naming a favorite charity as a beneficiary on an investment account. One of the biggest risks these clients face is that they often assume that a simple plan is the best, but that assumption may, sadly, limit the opportunity they have to leave an impact. Avoiding intestacy Clients rarely want their assets ending up with a distant relative or being claimed by the state, and will appreciate developing a plan that’s meaningful to them. When an individual dies without leaving a will, this is referred to as “dying intestate.” This scenario brings with it a number of complications, as the state legislature has essentially written the client’s estate plan for them. For clients without children, this is often not the estate plan they would have selected. Different generations take different approaches to life, and your likelihood of working with more childless clients is increasing. The birthrate in the U.S. has been low for decades, but there were record low fertility rates in 2017 and 2018, as many millennial women and couples are choosing to delay or avoid parenthood. Helping these clients define clear, personal goals for financial and estate planning is an excellent way to add value to your financial planning services and engage with this growing demographic. Read More

Introduction Most Americans do not know, or refuse to accept, the facts surrounding their potential need for long-term care and the costs associated with it. This was reconfirmed recently in a telephone survey of 1,698 Americans over the age of 40, funded by the SCAN Foundation and conducted by the Associated Press (AP) – NORC Center for Public Affairs Research (“survey”).1 This survey highlights many of the misconceptions Americans have about long-term care, including: the potential that a loved one may need some sort of long-term care within the next five (5) years; lack of knowledge of the positive impact of “person-centered care” practices; lack of understanding of coverage of long-term care services by Medicare, Medicaid and private insurance; and an increase in lack of concern over failure to plan for the costs associated with long-term care. Who Will Need Long-Term Care According to the Genworth Cost of Care Survey of 2015 (“Genworth Survey”)2, seventy percent (70%) of Americans over the age of sixty-five (65) will eventually need some type of long-term care. In addition, by the year 2040, twenty-two percent (22%) of the population will be over the age of sixty-five (65), which is a ten percent (10%) increase from the year 2000. Yet, this survey showed an increasing number of people over the age of forty (40) refusing to believe they will ever need long-term care. Quality of Long-Term Care The survey defined person-centered care as “an approach to health care and supportive services that allows individuals to take control of their own care by specifying preferences and outlining goals that will improve their quality of life.” This approach points to the consideration of coordinated care. Coordinated care involves communication among various medical providers to reduce overlap, misdiagnosis or other medical oversights. Because many people are avoiding thinking about their golden years, they are missing out on the benefits provided by this approach and the survey shows a lack of appreciation for the improved quality of life it can provide. According to the survey, over sixty-five percent (65%) of adults over the age of forty (40) have two or more doctors that they see on a regular basis. Twenty-nine percent (29%) of those report that their providers do not communicate well or at all. Further, the lack of understanding of the person-centered care approach is evident in that twenty-three percent (23%) of those individuals who don’t participate in it reported that it would not improve their quality of care. Cost of Long-Term Care The study showed a lack of understanding by many of coverage for long-term care by Medicare, Medicaid and private health insurance. The truth is that Medicare does not pay for ongoing long-term care (although it will pay for intermittent stays at nursing facilities). Yet, thirty-four percent (34%) surveyed thought Medicare would pay for long-term care while twenty-seven percent (27%) were unsure. Furthermore, Medicare doesn’t typically pay for care in the home. However, thirty-six percent (36%) of those surveyed thought it would and twenty-seven percent (27%) reported that they were unsure. As for private insurance, most health insurance plans will not cover long-term services like a nursing home or ongoing care provided at home by a licensed home health care aide. Yet, eighteen percent (18%) of Americans age 40 and older believe that their insurance will cover the costs of ongoing nursing home care. While, twenty-five percent (25%) believe their plan will pay for ongoing care at home. About 1 in 5 people surveyed were unsure of the coverage provided for these types of long-term care services. Medicaid is the largest payer of long-term care services.3 Medicaid is a federally and state funded needs-based benefit that will provide for various types of long-term care depending on the state’s regulations. In 2013, Medicaid paid for fifty-one percent (51%) of the national long-term care bill totaling $310 billion. However, fifty-one percent (51%) of Americans age 40 and older reported that they don’t expect to have to rely on Medicaid to help pay for their ongoing living assistance expenses as they age. The actual costs for long-term care are staggering. The Genworth Survey reported that, nationwide, the average bill for a nursing home is approximately $80,300 and for home health care, approximately $44,616 with a variety of options among and in between these levels of care. Planning for Long-Term Care Despite the availability of this information, most Americans are unprepared for the costs associated with long-term care. For example, the results of the survey showed that only one-third of adults were “very or extremely confident” in their ability to pay for long-term care. Fascinatingly, while many individuals reported being concerned over leaving family with debt or becoming a burden on loved ones, many do little to alleviate their concern in the way of planning. In fact, just over thirty percent (30%) of those over the age of sixty-five (65) reported being concerned with this. And, finally, two-thirds of Americans over the age of forty (40) reported doing no planning for long-term care. The survey results lead to the conclusion that many Americans are reluctant to face the possible loss of independence related to aging. Apparently, this plays a role in the unwillingness to plan for the possibility of needing assistance later in life. As an example, there was an interesting difference in the number of people surveyed who had planned, or talked to loved ones about, their funeral arrangements (nearly sixty-five percent (65%)), in those who had discussed care preferences with family (about forty-two percent (42%)) and in those who had saved money for long-term care (approximately thirty-three percent (33%)). Some things, including how we want to be memorialized are just easier to think about than how we may end up dependent on others. Conclusion Although not a popular topic among Americans over the age of forty, long-term care is an increasingly important one. We are in the business of providing options for people in planning for their potential long-term care needs. If you, a loved one or a client needs help figuring out their options, please think of us. We can help and we are always happy to hear from you. To comply with the U.S. Treasury regulations, we must inform you that (i) any U.S. federal tax advice contained in this newsletter was not intended or written to be used, and cannot be used, by any person for the purpose of avoiding U.S. federal tax penalties that may be imposed on such person and (ii) each taxpayer should seek advice from their tax advisor based on the taxpayer’s particular circumstances. 1 https://www.longtermcarepoll.org/wp-content/uploads/2017/11/AP-NORC-Long-term-Care-2016_Trend_Report.pdf 2 https://www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html 3 http://kff.org/medicaid/report/medicaid-and-long-term-services-and-supports-a-primer/ Read More

Estate planning is complex and continually evolving. Often, affluent families are “early adopters” of the newest and best estate planning strategies. Luckily, by working with us, you can benefit from the same estate planning strategies that affluent families do. Here are a few techniques we should discuss soon. 1. Maintain an up-to-date, trust-centered plan The foundation of your estate plan must achieve your goals and needs. Wealthy people tend to utilize estate plans with all assets funded into or aligned with trusts. Not only should your estate plan be trust-centered, but it should also be continually updated as your life, family circumstances, and the law grow and change. Make sure your current estate plan always reflects your goals—a tried-and-true secret of the affluent. 2. Create special trusts for special assets Wealthy people take advantage of the legal and tax opportunities presented by unique assets or investments. Many types of assets, such as IRAs, life insurance, business ownership, and more, require specialized planning to work properly in your estate plan. If you’ve saved for retirement, you know the value of an IRA, a 401(k) or another retirement plan. You are probably also familiar with the beneficiary designations for these plans. But you may not be familiar with a specialized trust, called a standalone retirement trust or IRA trust. This trust lays out exact instructions about where the money in your IRA will go after you’re gone. If you’ve seen substantial accumulation in your IRA, you may not want its entirety to be disbursed to a beneficiary all at once. You’ve worked a lifetime to save, and the IRA trust empowers you to protect what you’re leaving behind. In a similar fashion, life insurance trusts give you more control over your life insurance benefits, allowing you to direct what occurs to your life insurance policy in more detail than is possible with a plain beneficiary form. It can be risky to name your minor children as the beneficiaries of your policy. If your children are not yet adults, the insurance company often requires a court-appointed guardian to receive the funds, a potentially costly and lengthy process. Many people may decide to leave the policy benefits directly to the children’s caretaker to avoid this guardianship issue. But, leaving the policy benefits to your children’s caretaker outright doesn’t ensure that the money is used for the benefit of your children. A life insurance trust can protect what you’re leaving behind and ensure it is used for the benefit of your beneficiaries. Unlike a plain beneficiary designation, a trust also lets you designate specific uses for your money by your beneficiaries, such as educational funding. The wealthy don’t leave these things to chance and instead use proactive trust-centered planning to achieve their goals and protect their families. 3. Build a collaborative professional team Wealthy people rarely plan and work with professionals in isolation. They know they can get better outcomes by meshing their legal, tax, and financial plans together. Rather than silo their strategies with various advisors, they ensure their team is optimizing their results through a collaborative approach. As you build out your team, seek out professionals who are enthusiastic about working with one another across disciplines. The more visibility they have into one another’s strategies, the better they’ll be able to provide you with the best possible benefits. Call us today. We can discuss the best ways to put these and other estate planning approaches of the wealthy into action for you. Read More

If you have a loved one with a disability, you are aware of the unique financial issues that go along with planning for the well-being of someone with special needs. On one hand, many people with special needs or a disability are unable to become self-supporting. They have expenses for medical treatment, adaptive devices, and therapy, among many others. Family members may be inclined to put aside extra savings to provide for these lifelong needs. On the other hand, many disabled individuals need and rely on financial assistance from the government, and qualifying for benefits typically means that beneficiaries cannot own more than a very modest amount of assets. A STABLE account may be able to help resolve these concerns. What is a STABLE account, and how exactly does it work? What is a STABLE Account? Congress enacted the Achieving a Better Life Experience (ABLE) Act in 2014. The ABLE Act authorizes a state to establish and maintain “a qualified ABLE program,” defined in Section 529A of the Internal Revenue Code (IRC). Ohio passed corresponding legislation in December of 2014, with an effective date of June 1, 2016, authorizing Ohio residents to establish a STABLE account. A STABLE account is an investment account with the flexibility of a savings or checking account. An individual (or an authorized legal representative on his or her behalf) can withdraw and spend money as needed, but he or she can also save and grow money for long-term qualified expenses, including education, housing, transportation, employment support, health and wellness and other miscellaneous personal expenses. The key feature of the STABLE account is that the money in the account does not affect government benefit eligibility. Who is Eligible for a STABLE Account? Those individuals who meet the following 3 requirements are eligible to establish a STABLE account in Ohio: The individual developed his or her disability before the age of 26; The disability must have existed or is expected to exist for at least a year; and Must meet 1 of the following criteria: Be entitled to SSI or SSDI; Have a condition included in the SSA’s List of Compassionate Allowances Conditions; or Be able to self-certify, with written diagnosis from physician, that the individual is blind or has an impairment that results in “marked and severe functional limitations” (examples of qualifying conditions can be found in SSA’s disability Blue Book – Part A for adults; Part B for children). As Ohio’s STABLE plan is a national plan, there is no requirement that the individual be a resident of Ohio. How does a STABLE Account Work? As mentioned above, the account works like a combination of an investment account and a savings/checking account. It takes a minimum $50 contribution to open the account, but subsequent contributions can be as little as $1. The maintenance cost for the account is $30/year for Ohio residents and $42/year for non-residents. The money will be invested under 1 or more of the 5 available investment options, which allocations are made when setting up the account: Growth – aims to provide capital appreciation and some current income Moderate Growth – aims to provide capital appreciation and low / moderate level of current income Conservative – aims to provide current income and low / moderate capital appreciation Income – aims to provide current income and some capital appreciation BankSafe – aims to protect the capital investment (100% into FDIC insured account) Because the account is an investment account, there is an asset-based fee of between 0.19% and 0.33% for Ohio residents, depending on the chosen investment options. Fees for non-residents range from 0.45% to 0.59%. Anyone can contribute to an individual’s STABLE account, up to $15,000 per year. Contributions to a STABLE account are eligible for a tax deduction up to $4,000 annually, with unlimited carry-forward or excess annual contributions. If the individual is employed, he or she can contribute an additional $12,140. The maximum lifetime limit is $468,000; however, a balance above $100,000 would affect the individual’s SSI entitlement. All requests for a withdrawal are accomplished through an online account. Funds are given to the individual or his or her authorized legal representative though electronic transfer or by check. The electronic option allows the individual to load the funds onto a STABLE debit card or into a personal bank account. Companion STABLE cards can be issued to a parent or authorized legal representative. There is no limit on the number of withdrawal requests, and there are no fees for withdrawing money. As mentioned above, money in a STABLE account must only be used to pay for Qualified Disability Expenses. An expense is “qualified” if: the expense is incurred at a time when the individual was eligible; the expense relates to the disability of the eligible individual; and the expense helps the individual maintain or improve his or her health, independence, or quality of life. Important Considerations Any earnings on a STABLE account are not taxed so long as they are spent on qualified expenses. Because the IRS audits the spending on STABLE accounts, good record-keeping is very important. Failure to demonstrate that STABLE monies were used for qualified expenses may result in having to pay regular income tax plus a 10% penalty, and the non-qualified expenses could be counted against the individual in assessing Medicaid or SSI eligibility. Additionally, for SSI recipients, any money withdrawn for housing or rent should be spent immediately so as not to affect eligibility. Lastly, STABLE accounts are subject to the subrogation rights held by the Department of Medicaid. This means that to the extent that the individual received Medicaid benefits, the state is entitled to reimbursement of those amounts from the STABLE account upon the individual’s death. Because of the state’s rights against a STABLE account, when family members wish to contribute significant sums of money to a disabled individual, a tandem third-party discretionary trust for the individual is often an appropriate planning tool, as the monies in the trust are not recoverable by the state and instead stay in the family. If you have a disability or have a loved one with a disability, a STABLE account can be an excellent way to provide for needs without jeopardizing eligibility for government benefits. If you have questions about STABLE accounts and how they work by themselves or in combination with a trust, or if you would like more information, we invite you to contact our law office. 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If your doctor clients lose their assets, they’re no longer under your management and there’s nothing to fund new products. As you know, the practice of medicine is a profession fraught with the risk of liability. It’s not just medical malpractice claims either – employment-related issues (wrongful termination, sexual harassment, and discrimination), careless business partners and employees, and contractual obligations (personal guarantees, leases, business agreements, etc.) add to the risk assumed by a physician in private practice. Couple these practice-related liabilities with personal liabilities (divorce, vehicular accidents, rental real estate), and it’s clear that your physician clients need to protect themselves from more than just professional negligence claims. In this article you will learn: Types of insurance physicians need in place; State exemptions that protect certain types of assets from the claims of creditors; and The role of business entities in liability planning for physicians. Tip #1 – Insurance is the First Line of Defense Against Liability Liability insurance is the first shield physicians should use to protect themselves. Liability insurance provides a source of funds to pay legal fees as well as settlements or judgments. Types of insurance physicians should have in place include (as applicable): Homeowner’s insurance Property and casualty insurance Excess liability insurance (“umbrella” insurance) Automobile and other vehicle (motorcycle, boat, airplane) insurance General business insurance Professional liability insurance Directors and officers insurance Planning Tip: Physicians cannot rely on insurance as their sole means of liability protection since the cost of a comprehensive policy may be prohibitive, and each type of policy has numerous exceptions to coverage. Instead, insurance should be used as one layer of a multi-layer strategy designed to place a barrier between the physician’s business and personal assets and the claims of a plaintiff. In addition, physicians should work with an insurance professional who can explain the purpose of each type of coverage, make recommendations for liability limits and deductibles, and shop around for the best coverage on an annual basis. Tip #2 – State Exemptions Protect a Variety of Personal Assets from Lawsuits Each state has a set of laws and/or constitutional provisions that partially or completely exempt certain types of assets owned by residents from the claims of creditors. While these laws vary widely from state to state, in general, the following types of assets may be protected from judgments entered against physicians under applicable state law: Primary residence (referred to as “homestead” protection in some states) Qualified retirement plans (401(k)s, profit sharing plans, money purchase plans, IRAs) Life insurance (cash value) Annuities Property co-owned with a spouse as “tenants by the entirety” (only available to married couples; and may only apply to real estate, not personal property, in some states) Wages Prepaid college plans Section 529 plans Disability insurance payments Social Security benefits Planning Tip: Physicians need to consult with an experienced asset protection attorney in their state of residence to determine which state exemptions are available and how much protection they provide. It is also important to understand the pros and cons of each type of exemption. For example, while tenants by the entirety co-ownership between the physician and their spouse may make sense in the short term, in the long run, if the couple divorces or if the non-physician spouse dies first, it will become completely useless. As with liability insurance, exemption planning is best used as one layer of an overall asset protection strategy. Tip #3 – Business Entities Protect Business and Personal Assets from Lawsuits Business entities include partnerships, limited liability companies, and corporations. Physicians who own their own practice need to mitigate the risks and liabilities associated with owning a business (just like any other business owner) through the use of one or more business entities. Physicians should work closely with a business planning attorney to determine the right structure for their practice by not only taking into consideration asset protection, but also income taxes, estate planning, retirement funding, and business succession goals. Business entities can also be an effective tool for protecting a physician’s personal assets from lawsuits. In many states, in addition to the protections offered by incorporating, assets held within a limited partnership or a limited liability company are protected from the personal creditors of an owner. Further, the personal creditors of an owner cannot step into the owner’s shoes and take over the business. Instead, the creditor is limited to a “charging order” which only gives the creditor the rights of an assignee. In general, this limits the creditor to receiving distributions from the entity if and when they are made. An added benefit of using a limited partnership or limited liability company to protect a physician’s personal assets is the leverage that can be created for gifting and wealth transfer planning through the use of valuation discounts. With a properly structured limited liability entity, assets held within the entity will be entitled to a discounted valuation for tax purposes because of the lack of control, the lack of marketability of the interests in the entity, and the inability of owners to simply to walk away from the business and take their ownership interests with them. Discounts on the value of the entity’s underlying assets can range from 20% to over 50%. Valuation discounts allow the physician to gift entity interests for cents on the dollar and at a reduced use of the lifetime gift tax exemption. Planning with discounts is a sophisticated strategy that’s not right for everyone, but we are here to discuss it with you for the right clients. Planning Tip: Creating a business entity that protects a physician’s assets from lawsuits involves much more than just filling out some forms with the state division of corporations and paying an annual fee. Business formalities must be observed and documented, otherwise a creditor can attack the entity through “veil piercing” or “constructive trust” or “alter ego” arguments, which could result in personal liability for the business’s actions or debts. In addition, state laws governing business entities vary widely and are constantly changing due to legislative action and court decisions. Therefore, it is important for physicians to work with an estate planning attorney who assists with documenting business formalities and stays on top of changes in applicable laws. Finally, as with liability insurance and state exemptions, business entities should be used in conjunction with other asset protection strategies. Final Advice for Helping Physicians Protect Their Assets Physicians are constant targets for lawsuits both professionally and personally, because they are perceived to have “deep pockets.” You can add value to your relationships with your physician clients by helping them identify ways to protect and preserve their business and personal assets. We are experienced with helping physicians create effective, multi-layered asset protection plans. Please call us with questions about this type of planning and to arrange for liability protection consultations for your physician clients. We look forward to collaborating with you to protect both your clients and your book of business. Read More

On October 5, 2018, President Trump signed the Federal Aviation Administration Reauthorization Act of 2018. This bill (H.R. 302), which reauthorized the Federal Aviation Administration (FAA) and other programs through 2023, also contains several important provisions to improve travel for people with disabilities. According to the Census Bureau, about one in five Americans has some kind of disability, and one in ten has a severe disability. The U.S. Department of Transportation reports that there were 764 million flyers in the 12-month period ending in July 2018. One can safely assume that millions of these passengers are disabled. In this article, we will look at who was behind this law, problems those with a disability face when flying, and what new measures are in the law. Who Was Behind This Law? H.R. 302 includes several provisions similar to those in the Air Carrier Access Amendments Act that was introduced by Representative Jim Langevin (D-RI) earlier this year and by Senator Tammy Baldwin (D-Wisconsin) in 2017. Representative Langevin, who co-chairs the Bipartisan Disabilities Caucus, is a quadriplegic and has encountered problems in his own flying experiences. The Paralyzed Veterans of America (PVA) and The National Multiple Sclerosis Society worked with Representative Langevin and Senator Baldwin, and have been advocates for changes that will benefit the broader disability community. According to PVA, the top complaint they receive from members is related to problems with air travel. Members of PVA supported increased civil penalties for wheelchair damage or bodily harm and a study on the feasibility of in-cabin wheelchair restraint systems. Paralyzed Veterans of America is the only Congressionally-chartered Veterans service organization dedicated solely for the benefit and representation of Veterans with spinal cord injury or disease. For more than 70 years, the organization has helped disabled Veterans with the benefits, medical services, jobs, research and rehabilitation they need to get on the road to recovery and regain their freedom and independence. The PVA ensures they receive the benefits they have earned through service to our nation; monitors their care in VA spinal cord injury units, and funds research and education in the search for a cure and improved care for individuals with paralysis. Multiple Sclerosis (MS) affects more than 2.3 million people worldwide. It is an unpredictable, often disabling disease of the central nervous system that disrupts the flow of information within the brain, and between the brain and body. Symptoms range from numbness and tingling to blindness and paralysis. Most people with MS are diagnosed between the ages of 20 and 50, with at least two to three times more women than men being diagnosed with the disease. Senator Baldwin has stated, “In order to keep America’s promise of full equality for all, we must break down barriers that individuals with disabilities and our Veterans face when they travel. Equal access to air travel ensures our Veterans are able to participate in our economy and enjoy their travel opportunities.” Obstacles Disabled Flyers Encounter Air travelers with disabilities are more likely to encounter delays, missed flights and even suffer personal injury. Most restrooms on planes were not designed to accommodate the disabled, especially if they require assistance. As a result, many resort to avoiding liquids or wear adult diapers when flying. Specialized equipment is often damaged. Shaun Castle, the Deputy Executive Director of PVA and a service-disabled U.S. Army Veteran, has had his wheelchair bent, cracked and even lost in separate incidents. “These are more than minor inconveniences,” he said. “If my wheelchair is damaged, it may mean I am stranded until I can get it repaired.” Bari Talente, Executive Vice President of Advocacy for the National Multiple Sclerosis Society, has had similar experiences. “Almost every year when nearly 300 MS activists travel to Washington, DC to meet with Congress, members of our group share how they’ve watched in fear as their mobility equipment was loaded on a plane and how they’ve had to assess damage to it on arrival. In many cases, this equipment is personalized to meet an individual’s needs and when it’s damaged, that also damages one’s ability to get around and someone’s overall health.” Of the new law, MS activist Scott Bartholomew of Ohio said: “This opens up a whole world of travel to me. I live with multiple sclerosis and depend on mobility devices, but the fear of damaging my mobility device has been the biggest deterrent to me when choosing whether to travel by air.” What’s in the Law? Advisory Committee: The law establishes an Advisory Committee to determine the air travel needs of passengers with disabilities. The Committee, which will assess and address barriers in the air travel experience, will be comprised of people with disabilities, national disability organizations, aviation industry employees, wheelchair manufacturers and national Veterans’ organizations representing disabled Veterans. The Advisory Committee is also charged with reviewing current Department of Transportation (DOT) regulations related to airport accessibility best practices and a review of practices for ticketing, pre-flight assignments and stowing of assistive devices for disabled passengers. Airline Passengers with Disabilities Bill of Rights: The DOT will create a document that will describe, in plain language, the basic protections and responsibilities of covered air carriers, their employees and contractors, and people with disabilities. At a minimum, the Airline Passengers with Disabilities Bill of Rights must address the rights of passengers with disabilities to be treated with dignity and respect, receive timely assistance when requested, travel with assistive devices, receive seating accommodations, receive announcements in an accessible format and file complaints. The document will be displayed on airlines’ websites and be provided to any passengers who request disability-related assistance. Increased penalties for harm to disabled passengers: The DOT may increase the maximum penalty an airline may be required to pay for bodily harm or damage to a passenger’s wheelchair or other mobility aid by 300 percent of what is currently provided for under the law. (Each act of harm or injury constitutes a separate offense.) This means airlines will face up to three times the maximum penalty of $32,140 for each incident of bodily injury or damage to a passenger’s wheelchair or other mobility aid, in addition to the current requirement that airlines reimburse the passenger for the full purchase price for each damaged mobility aid. Improved TSA screenings: Within six months, revisions must be made to the Transportation Security Agency (TSA) officer training requirements to improve TSA screenings in collaboration with disability and Veterans’ organizations. TSA will also be responsible for recording and identifying frequent complaints and accommodations requested, which will be used to determine best practices and recommend training. Transparency for disabled passengers: Within 60 days, the DOT must enforce a 2016 rule that requires airlines to report data for mishandled baggage and wheelchairs. Airlines are required to report the number of enplaned bags and the number of mishandled bags. If enforced, the rule will require separate statistics for mishandled wheelchairs and scooters that are transported in aircraft cargo compartments. Airline lavatories: The law requires a report on the availability of lavatories on commercial aircraft, which must include the ability of disabled passengers to access them. In-cabin wheelchair restraint systems: The law also requires a study on the feasibility of in-cabin wheelchair restraint systems and subsequent accommodations, something the PVA has specifically lobbied for. What to Watch While proud of the new law, Representative Langevin admits there is still considerable progress to be made before full equality is achieved for flyers with disabilities. Interestingly, the law does not contain a deadline for the finalization or implementation of the Bill of Rights. However, with both the PVA and MS communities involved, we can be assured that many eyes will be monitoring the progress and implementation of the requirements mandated under this law. Sources https://www.nationalmssociety.org/About-the-Society/News/Society-Applauds-New-FAA-Law-Making-Travel-More-Ac https://abilitymagazine.com/federal-aviation-administration-reauthorization-act-2018/ https://langevin.house.gov/press-release/faa-reauthorization-passes-langevin-provisions-protecting-passengers-disabilities https://www.govtrack.us/congress/bills/115/hr4/text https://specialneedsanswers.com/new-law-mandates-creation-of-a-bill-of-rights-for-air-travelers-with-disabilities-16922 http://www.advocacymonitor.com/an-update-from-the-transportation-subcommittee-disability-provisions-included-in-faa-reauthorization/ https://www.lexology.com/library/detail.aspx?g=2fdd4977-9b3a-41d5-8068-b9658217d156 To comply with the U.S. Treasury regulations, we must inform you that (i) any U.S. federal tax advice contained in this newsletter was not intended or written to be used, and cannot be used, by any person for the purpose of avoiding U.S. federal tax penalties that may be imposed on such person and (ii) each taxpayer should seek advice from their tax advisor based on the taxpayer’s particular circumstances. 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As the new year begins and you look back on 2018, what changes need to be reflected in your estate plan? Have you gotten married or divorced in the past year? Perhaps you’ve welcomed a new child or grandchild, or experienced a change in your health. So much can change in a year, and it’s important not to let too much time pass before those changes are reflected in your plan. Just like you need to stay in regular contact with financial advisors, primary health care providers, and accountants, your estate plan will serve you best when it’s kept up to date with the changes that shape your life. Keeping your estate plan current with each new significant development in your life is much more efficient than having to do a comprehensive overhaul later on. The beginning of the year is the perfect time to take stock of any changes regarding the individuals listed in your estate planning, like fiduciaries or beneficiaries, in case adjustments are required. Your Checklist Many people find that estate planning — whether it’s embarking on creating a new plan or updating an existing one — can feel overwhelming. A checklist cuts through the mental clutter and allows you to focus on the most important decisions so you can protect yourself and your family. Use this handy checklist to prioritize your time. Has your family welcomed any new children or grandchildren? Has anyone named as a fiduciary (successor trustee, agent, or health care agent) in your plan passed away? Have you gotten married? Did the year involve a divorce for you or any of your fiduciaries or beneficiaries? Have you changed your preference about who is listed as a trustee? Have you changed your preference about who is listed as an agent? Have you changed your preference about who is listed as a health care proxy? Do you want to change who’s appointed as your children’s guardian? Is there a pet caretaker you would like added or removed? Have you had a significant increase or decrease in your net worth? Have you changed jobs or purchased a business? Did you move to a new home? Did you sign your will or trust before 2013? If the answer to any of these questions is “yes,” your estate plan requires our attention soon. As we begin 2019, start your year off on the right foot by taking a few moments to see what projects you should prioritize. Give us a call so we can discuss. Read More

Estate planning should always take into account not only the wealth to be transferred from one generation to another, but the unique issues of each family for whom a plan is being created. Unfortunately, those issues may increasingly include the dilemma of planning for the well-being of a loved one who is struggling with some form of addiction. You want to make sure your loved ones have the means to provide for their needs, but you don’t want to give them the means to destroy themselves. Let’s talk about the complexities of estate planning when your beneficiary is an addict. If you’ve watched the evening news in the last few years, you’ve heard the words “opioid epidemic.” Where once it seemed that drug addiction was something that happened to “other families” or in “bad neighborhoods,” it seems most people now, in all walks of life, know someone who has fallen prey to opioid addiction. Many who have studied the phenomenon point to the over-prescription of opioid pain medicine such as OxyContin in the last couple of decades. A patient might see the doctor for an injury, receive a prescription for pain management, and become addicted. When refills of the medicine were no longer available, they might turn to more readily available, and less expensive street drugs: heroin. Heroin is an extraordinarily difficult drug to quit. Users can become addicted after just one use, and withdrawal is agonizing. Continued use, professionals observe, is not to keep getting high, but simply to survive and avoid the pain of withdrawal. Of course, if you are the loved one of an addict, you probably know all this already. Your concern is how to make sure your family member has food, shelter, and treatment for their addiction, but not money for drugs. Addicts are notoriously creative in their efforts to get a fix; you need to be equally creative in your estate planning in order to protect them. Protecting an Addict With Trusts and Guardianship First things first: if you have a loved one with an addiction, you must have an estate plan. Otherwise, they will receive any assets to which they would be entitled upon your death in a lump sum. The inheritance will almost surely go to feed their addiction. This could easily result in an overdose, and if not, will almost surely lead to the addict burning through their inheritance in a short time and becoming destitute. Simply having a last will and testament is not enough to protect your addicted beneficiary. With a will, they would still receive their distribution as a lump sum, and would have complete control over it. A much better option is to put money in a trust for them. Even this may not be enough. While a trustee can control the timing and amount of distributions, he or she may not be able to protect the addict from using the distributions for heroin or other drugs. Therefore, it may be necessary to ensure that the addicted beneficiary has a guardian or conservator to handle their financial matters. Some legal professionals endorse making distributions from a trust contingent upon the beneficiary agreeing, in writing, that a guardian is necessary. Guardians represent the interest of those who are legally incompetent. A court may or may not find an addict legally incompetent, or may terminate the guardianship if the protected person, or ward, seems to be doing well. Some legal professionals, therefore, endorse making distributions from a trust contingent upon the beneficiary agreeing, in writing, that a guardian is necessary. In this way, the trustee manages the flow of distributions, and the guardian ensures they are used in a way that benefits the addict. Perhaps even more important, a guardian can manage any assets or funds that the addict has acquired outside of his or her inheritance. Choosing a Trustee for an Addicted Beneficiary Making a trust is one thing; choosing a trustee is another. Family trusts are often managed by a family member, but this may not be the best option in the case of an addict. Let’s say your older child is responsible and well able to serve as your trustee under ordinary circumstances. In a situation where the beneficiary of the trust is your addicted younger child, serving as a trustee places your older child in an untenable position. If he or she withholds distributions, the younger child will likely be resentful, and may even become angry and threatening. In any case, serious harm to their sibling relationship will be done by the power differential. If the older sibling were to give in to the demands of the addicted younger sibling, and the younger sibling relapsed or overdosed when they got their hands on the money, the elder sibling would be wracked with guilt. For these reasons, you may wish to consider working with a professional fiduciary who is not a relative. It may be challenging to find someone who is willing to work under these circumstances, but it can be done. An experienced estate planning attorney can help. While you may feel embarrassed to discuss these concerns with your estate planning attorney, rest assured that he or she has likely dealt with many families struggling with this issue. Addiction is a problem that affects not just individuals and families, but all of us. If you have concerns about planning for a loved one with addiction, we invite you to contact our law office for a clear-eyed, but compassionate, consultation. Read More