Klitzman Law Group, PLLC

New Broker Rule in Effect

A new rule designed to prevent financial abuse of the elderly requires additional information.

Finding new ways to prevent the financial abuse of the elderly is of increasing concern in the U.S. The aging population has led to more frequent incidents of abuse.  However, stopping the abuse as it is occurring has proven to be a challenge.

The abuse is often not detected until after it has occurred, and it is too late to do anything about it. Some abuse is never caught at all. This has led government agencies and elder law advocates to think about new ways to detect abuse.

FINRA, a self-regulatory agency for brokers, has just implemented a new rule it hopes will help with the problem as Consumer Reports discusses in "New Ways to Prevent Elder Financial Abuse."

Brokers are now required to ask all their customers for the contact information of a trusted person whom the broker can contact if financial abuse is suspected. If a broker suspects a client is being exploited, then a hold can be put on the account for 15 days. It can also be extended for another 10 days, if necessary.

Contact law enforcement and an elder law attorney for assistance, if you suspect that someone is being abused.

Reference: Consumer Reports (Feb. 2, 2018) "New Ways to Prevent Elder Financial Abuse."

Suggested Key Words: Elder Abuse, Elder Law

Recording Elder Abuse on Film

Proving that an elderly person has been abused or neglected can be difficult.  This is because the abuse happens when only the abused and the abused are in the room. Wisconsin thinks it has an idea that might help.

Most abuse of the elderly does not happen when there are any witnesses around. Caregivers tend to treat the elderly well when other people are present. This is especially true when those people are family members of an elderly person.

A few of those caregivers act much differently when they are alone with the elderly. They neglect and even physically abuse the people for whom they are supposed to be caring. When family members suspect this is happening, they often go to law enforcement.  However, proving the abuse can be difficult without witnesses.

The government of Wisconsin has a way to help law enforcement and family members prove that elder abuse or neglect is occurring, as WBAY reports in "Wisconsin allowing hidden cameras to capture elder abuse and neglect."

The state will distribute small digital cameras to local law enforcement agencies. If family members report that they suspect elder abuse, law enforcement will give them a camera they can hide in the elder person's home.

The cameras can be kept up to 30 days and will record everything that happens on a memory card. When the camera and the memory card are turned back in, the recordings can be watched to see if there has been any abuse. The program could become a model for other states in the future.

Reference: WBAY (Feb. 6, 2018) "Wisconsin allowing hidden cameras to capture elder abuse and neglect."

Suggested Key Words: Elder Issues, Elder Abuse

 

Legal Documents You Need

As you approach retirement age there are a few legal documents that you need to have to make sure that everything will be taken care of, should anything happen to you.

Anyone can pass away at any time, so it is always important to make plans about your estate no matter how old you are. Most people put off the planning. That leaves many people without any plans as they begin to get older. This can become a real problem.

The older you get, the more likely you will pass away soon. At some point, you must have some estate plans. What you need to get, does not have to be all that complicated.

Most people can get away with having a few simple documents prepared by an estate planning attorney as the Brooklyn Daily Eagle reports in "Five legal documents you need by 55."

These documents include:

• A general durable power of attorney is a document that will let you designate someone to take care of your financial matters, if you are unable to do so. The person you choose will be able to make sure your bills are paid and any business you have is handled appropriately.
• A health care power of attorney is also needed, so someone you designate can talk to doctors on your behalf, if you are incapacitated. This makes sure your health care is handled as you would want.
• A living will is another necessary document that lets you decide what will happen, if you are terminally ill. It leaves instructions for doctors about what methods to deploy or not to deploy to prolong your life.
• A will is also necessary, so you can make sure your assets are distributed as you want after you pass away.

Reference: Brooklyn Daily Eagle (Feb. 6, 2018) "Five legal documents you need by 55."

Suggested Key Words: Estate Planning, General Durable Power of Attorney, Health Care Power of Attorney, Living Will

 

When Minors are Your Heirs

If you think it is likely your heirs will be minors would when you pass away, it is best to do so differently than you would leave assets for adults.

If you have minor children, grandchildren or other relatives you want to include in your estate plan you should do so, because if you leave assets only to their parents, they might spend everything before the minors can inherit it.

You could also simply write provisions in your will, so the minors receive certain assets or a portion of your estate. However, that does not work in the same way leaving assets in a will to adults does.  The probate court will have to hold hearings and determine who the best adult is to be in charge of handling those assets on behalf of the minors, until they come of age.

This can be inefficient and, unless you have left special instructions in the will, the person appointed by the court might not be the same person you would have appointed. There is a better way to leave assets to minors as the Times Herald-Record discussed in "Proper legal planning for minor beneficiaries."

The better option is to create a trust and to fund the trust with the assets you would like to leave for the minors. You can appoint a trustee of your own choosing to administer the assets for the benefit of the minors. You also can leave instructions about how and when the assets are to be distributed for the children. That does not have to be the moment they reach the age of majority.

If you would like to leave part of your estate to minors, then talk to an estate planning attorney about creating a trust to do so.

Reference: Times Herald-Record (Feb. 1, 2018) "Proper legal planning for minor beneficiaries."

Suggested Key Words: Estate Planning, Wills, Trusts

Disability Planning

The number of Americans who suffer from Alzheimer's disease is expected to double in upcoming decades. It is important to make plans for what should happen, if you are one of the victims.

Alzheimer's is a scary disease to contemplate. Those who suffer from it slowly lose their cognitive abilities. They no longer recognize their loved ones and are increasingly unable to take care of even their most basic affairs.

Unfortunately, experts do not think a cure for this disease is likely in the near future.  They expect that the number of people who suffer from it in American will double by the year 2060.

That is a scary proposition for many and it is something everyone should make plans for as the Times Herald-Record discusses in "Disability planning is vital in case of cognitive impairment."

Fortunately, planning for Alzheimer's disease is not very difficult.

An estate planning attorney or elder law attorney can assist you in getting your legal paperwork in order. You will need a health care power of attorney, so someone of your choosing can make your medical decisions for you. You will need a general durable power of attorney, so someone of your choosing can handle your day to day financial affairs. You will also need a living will so that doctors will know what to do and not to do, when you are terminally ill with no chance of recovery.

There is no reason to delay getting these documents. They are easy to get. Everyone should have them, just in case something happens.

Reference: Times Herald-Record (Jan. 18, 2018) "Disability planning is vital in case of cognitive impairment."

Suggested Key Words: Living Will, Health Care Power of Attorney, General Durable Power of Attorney

Why Estate Fights Start

Fights over estates can start for many different reasons. One of the most common reasons they happen, can be summed up in one word: stepmothers.

Stepmothers do not have a good reputation in popular culture. Going all the way back to fairy tales, we find stepmothers have often been seen as the source of much pain for their stepchildren.

The popular stories of Cinderella and Snow White both feature evil stepmothers who are the source of misery for the main characters. Not all stepmothers are evil, but enough of them are viewed as such by their stepchildren that the myth has taken hold.

It is such a common occurrence that it is one of the leading causes of fights over an estate as Forbes discusses in "Stepmothers: The Cause Of So Many Estate Fights."

The real problem is not really stepmothers. When family members do not get along for other reasons, they often find themselves at odds over the estate of a deceased loved one. It just so happens that one of the primary familial relationships gone awry is that of stepmothers and their stepchildren.

What this means is that people who have entered a new marriage with children from a previous relationship, need to understand the family dynamic and how it could have an impact on the administration of their estates. They need to create estate plans that take the potential for these fights into account.

Reference: Forbes (Jan. 23, 2018) "Stepmothers: The Cause Of So Many Estate Fights."

Suggested Key Words: Estate Planning

Talking to an Attorney About the New Tax Law

Now is a good time to take advantage of the new tax law and review your estate plan. There are some questions that you should ask your attorney before making any new plans.

Whenever there are significant changes made to tax laws, it is important to review your estate plan to make sure you still have a plan that best benefits you under the law. Even minor changes to tax laws can have an impact on estate plans.

The tax changes recently signed into law are no exception.

Now is the time to go to an estate planning attorney and make sure your estate plan is still optimal for you and your family. There are a few things you will want to discuss with your attorney.

Recently, Forbes offered some suggestions of things to talk to your attorney about in "5 Questions to Ask Your Estate Planner After the New Tax Law," including:

• You need to know if the new law effects your estate plan at all. The estate tax exemption limit has been doubled and you will want to know what that means for your estate.
• If you are married, you will want to discuss what the new law means for spousal “portability” and how that could impact you and your spouse.
• Many states tie their state estate tax exemption to the federal exemption and you will want to discuss whether yours is one of them.
• Have the attorney review your plan to make sure it is still optimal for what you want to do, given the new laws.
• Before leaving the attorney's office, ask the attorney when you should come back and review your plan again. Estate plans should always be periodically reviewed with an expert, in case there are other changes to the law that need to be addressed.

Reference: Forbes (January 9, 2018) "5 Questions to Ask Your Estate Planner After the New Tax Law."

Suggested Key Words: Estate Planning, Estate Tax

Charities Nervous about New Tax Law

The new tax law has important changes for charitable deductions that have many charities worried donations will decrease.

When Congress first began talking about changing the tax laws, charities were particularly concerned about the changes made to deductions. The primary worry was that any increase in the standard tax deduction would result in fewer people donating to charity and then itemizing those deductions to get a tax break.

The new law did pass with an increase in the standard deduction. At the same time, it also limits the deductions that can be taken for state and local taxes leading to fewer itemized deductions.

Lowering tax rates for individuals, also limits the value of donating to charity for tax deductions.

As a result of these three changes, Forbes reports that 21 million people will no longer take charitable deductions on their taxes in "21 Million Taxpayers Will Stop Taking Charitable Deductions Under the New Tax Law."

The tax law also doubles the estate tax exemption which could limit the number of charitable bequests that are made.  However, just because people are no longer taking charitable deductions on their taxes, does not mean they will stop giving to charity.

Many donations are made for reasons that have little to do with tax planning and much more to do with generosity.  

If you would still like to leave money in your estate plan for charity, do not let the new laws stop you. Talk to an estate planning attorney about getting an estate plan that reflects your generosity.

Reference: Forbes (Jan. 11, 2018) "21 Million Taxpayers Will Stop Taking Charitable Deductions Under the New Tax Law."

Suggested Key Words: Estate Planning, Estate Tax

Coffin Swap

A funeral home in Australia is accused of swapping a deceased person out of an expensive coffin after the service and placing the remains in a much cheaper one.

An Australian family claims it paid for a deceased relative to receive a fancy coffin worth $1,700. After the coffin was displayed at the funeral service, the coffin and the remains inside were then to be transferred to a crematorium. However, the funeral home delayed transporting the coffin by an hour.

When it finally arrived, someone went down to check and noticed that the expensive coffin had been replaced by a cheap wooden box worth $70. Peering inside the box led to the discovery that the deceased's body had been placed in it along with letters written by her grandchild.

Upon being confronted by the family, the funeral director did not deny the swap. He claimed it was a common practice that was done to protect the more expensive coffin from the cold, as delays at the crematorium meant the remains would need to be frozen for some time.

The family is suing the funeral home as Fox News reports in "Funeral Home swapped $1,700 coffin with $70 one family claims."

This is just the latest scandal in a string of scandals in the funeral home industry in the U.S. and throughout the world. The industry has been found to be cutting corners at the expense of the decedents and their families.

It is important that people shop around and make sure they are using a reputable funeral home. It is also important to pay attention to what the funeral home says and what it does.

If you are hesitant to sign a contract with a funeral home company, seek the advice of an elder law attorney.

Reference: Fox News (Jan. 12, 2018) "Funeral Home swapped $1,700 coffin with $70 one family claims."

Suggested Key Words: Elder Law, Elder Issues

 

Dealing with Scams

Scams conducted against the elderly are far too frequent and difficult to prevent. However, there are some steps you can take if you or an elderly loved one has been scammed.

Along with the growth of America's elderly population, has come a less welcome population growth.

The number of scammers.

This unwelcome “population” has increased, as unscrupulous people seek to make easy money by duping the elderly.

There are many types of scams that target the elderly, ranging from large ones meant to make millions to very small scams meant to cheat an elderly person out of a few hundred dollars.

The smaller ones can be very difficult to prevent because they often consist of someone calling the elderly and pretending to be someone else, such as a charity or a debt collector.

These callers lie and sweet talk their way into getting the elderly victim's bank or credit card information.

If you know someone who has been a victim of such a scam recently, there are some things that you can do as My San Antonio discusses in "How to handle a scam against elderly parent."

The first thing that needs to be done is to contact the financial institution and make sure it is aware of the scam.

The institution can even block the transaction, if it is not too late.

The local police should be called as well to make sure the crime is reported.

It is also a good idea to contact an elder law attorney to ask for legal advice, if needed to get any money back.

When the elderly are scammed, it is not always possible to get their money back.  However, by making a few phones calls, you can make it more likely.

Reference: My San Antonio (Jan. 12, 2018) "How to handle a scam against elderly parent."

Suggested Key Words: Elder Law, Elder Issues