Klitzman Law Group, PLLC

Why Create a Pet Trust?

Media mogul Oprah Winfrey has a trust fund for her dogs, as revealed in 2007 by a source to an Australian women’s magazine. How much she left to her beloved animal companions is thought to be in the millions, according to a recent article from Pets Radar, “Oprah’s dogs will inherit a $30 million fortune—here’s why.” However, you don’t need to be a billionaire to want to care for your pets using a pet trust.

A pet trust is a legally binding contract used to specify money to care for a pet in case of incapacity or death of the human owner. The trust is funded to care for the animal’s life and should include specific instructions for how the pet will be cared for. An experienced estate planning attorney can create a pet trust to comply with your state’s laws.

When creating a pet trust, consider how much money will be needed to pay for the pet’s care, considering the type of pet, their age, life expectancy and whether they have or might have health issues in the future. If you own multiple pets, the pet trust must address all their needs.

The funds are used to cover veterinary bills, food, grooming, housing and compensation, if needed, for a caretaker. The trust will also need to include a contingency provision in case the primary caregiver becomes incapacitated or can’t care for the pets and someone else needs to step into the role.

The pet trust should also include plans for what happens when the pet dies. Do you want them to be cremated or buried, and what do you want to happen to any remaining funds in the trust? The people who love their pets enough to create a pet trust often decide to leave any remaining funds in the trust to a local animal shelter.

A common question in creating a pet trust is this: should the same person who is taking care of the pets also oversee the assets in the trust? The trustee oversees the assets and pays the caretaker. The problem is, if the caretaker doesn’t use the funds to care for the pet as you’ve outlined in the trust, who will monitor the money or the care of the pet? Many people prefer to have two different people involved, just in case.

Can you simply ask an adult child to take care of your beloved pet if you become sick or if you die before the pet? In theory, the answer is yes. However, your adult child or anyone you ask to care for your pet is under no legal obligation, unless you’ve created a pet trust and they’ve agreed to take on the role of either caretaker or trustee or both.

If you don’t have someone to care for your pet, check with your local animal shelter. No-kill shelters often have arrangements where a fee or donation is used to ensure lifetime pet care for a companion animal.

Your estate planning attorney will know how to create a pet trust to care for your furry companions, providing you with the peace of mind knowing they won’t end up in a shelter or living on the streets.

Reference: Pets Radar (April 4, 2025) “Oprah’s dogs will inherit a $30 million fortune—here’s why”

What Should Be Included in Your Estate Plan?

Estate planning attorneys often have clients who are more than 100 years old. However, those clients have usually made all their estate planning decisions while they were far younger, like in their 70s or 80s! A recent article, “Guidelines for estate planning, from a Golden Valley attorney,” from Sun Post, explains what your estate plan should include and why.

People should have their estate plans in place long before they turn 100, to provide peace of mind for themselves and for their heirs and executors, who will need to take over their affairs in case of incapacity or when they ultimately die.

Everyone should have a healthcare directive, sometimes called a Power of Attorney for Healthcare or Healthcare Proxy. This allows another person to have access to medical information and acts to express your wishes if you can’t communicate your wishes because of illness or an injury.

One person should be appointed to follow your healthcare and end-of-life instructions. Making your wishes clear in a legally binding document ensures that your loved ones know what you want and will help them make decisions for your care during a healthcare crisis.

You’ll also want a financial power of attorney in place so someone else can manage your financial life. Some people opt to make their bank accounts payable to a trust or retitle the bank as a “Transfer on Death” (TOD) account. This lets someone gain access to your finances. Let’s say you needed to be hospitalized for an extended period—having these documents in place will allow bills to be paid, your home maintained and avoid penalties for late or non-payment.

Many people today have trusts to prevent the estate from going through probate. When a will goes through probate, it becomes part of the public record. Probate takes time and can be costly. While probate in some jurisdictions isn’t as bad as in others, it can delay settling your estate by months or years.

Everyone who is over 18 needs to have a will. A will describes how your assets are to be distributed. If you have family heirlooms, for instance, your will can clarify who you want to receive a necklace or piece of art. The will instructs your executor, so they know exactly what you want to happen.

Your will is also used to nominate a guardian for minor children. Parents should always have a will, so they can name the person they want to raise their children in case both parents die.

Not having an estate plan leads to all kinds of problems for families. For one thing, the distribution of assets, and who should be the guardian for children and executor of your estate, are all decided according to the state’s laws. You may not have wanted your first cousin to raise your children. However, the court will make the decision for you. It’s better to have a will.

If you already have a will but haven’t updated it in more than three years, it’s time to dust it off and have it reviewed by an experienced estate planning attorney. Changes in your life and tax laws could mean that your will isn’t going to work the way it once did.

A final note: ask your estate planning attorney about how to store your estate planning documents. If your documents are stored at a safe deposit box, they will be sealed upon death and won’t be accessed until a court order has been obtained. This can delay settling the estate and create complications for loved ones.

Reference: Sun Post (March 20, 2025) “Guidelines for estate planning, from a Golden Valley attorney”

How Estate Planning Can Transfer Ownership of the Family Home

Starting and finishing an estate plan will not only provide peace of mind but also save your heirs from the stress and expense of going through the probate process. This is especially true if your plan is to bequeath the family home to loved ones, says a recent article from Cleveland Jewish News, “Estate planning simplifies inheriting a home.”

If no estate planning is done, the amount of time and paperwork to pass the home to a family member can become overwhelming. Planned correctly, the transition is far more efficient and less costly.

There are a few different ways that this can be accomplished. An estate planning attorney will know the best way for your unique situation. For instance, if you own the home with a spouse, typically Jointly With Rights of Survivorship (JWROS), each owner has an undivided interest in the house. The surviving spouse will follow the rules in their jurisdiction. This usually requires filing a document with the county recorder’s office with an affidavit of survivor and death certificate, and the interest of the decedent will pass to the surviving tenant.

If two or more people own the home together but not JWROS, when one of the owners dies, their interest in the house will need to go through probate. This can get sticky, especially if their heirs have a different plan for their share of the house than the other person or persons who own the home. This is a common estate planning disaster, often leading to litigation.

Another way to protect the inheritance of a home is to have a Transfer-on-Death (TOD) designation affidavit. The owner can sign the document, and the house ownership will be transferred upon their death without going through probate. If you have a straightforward estate plan, ask your estate planning attorney if this option is permitted in your jurisdiction.

If you have a more complicated estate, significant wealth, minor children, or adult children with disabilities, it’s time to discuss trusts with your estate planning attorney.

If a trust is used, the deed for the home must be retitled so the trust owns the home. Upon the death of the original owner, the home is dealt with in accordance with the provisions of the trust.

These are just a few ways home ownership can be transferred to another person and remain outside of probate. Estate planning is a highly personal process, where many factors need to be taken into consideration before the best solution can be determined.

To find the best solution for your own situation, meet with an experienced estate planning attorney in your community. They’ll be able to prepare an estate plan to achieve your wishes for the future, protect your family and give you the peace of mind of knowing you’ve taken care of those you love.

Reference: Cleveland Jewish News (March 25, 2025) “Estate planning simplifies inheriting a home”

The Coming ‘Great Wealth Transfer’ and Estate Planning

As a huge number of baby boomers turn 65 from now through 2027, most people should be thinking about managing their money amid the so-called “great wealth transfer,” when as much as $72 trillion is expected to move from one generation to the next. A recent article from MarketWatch, “As a $72 trillion ‘great wealth transfer’ is set to begin, here are 4 estate-planning rules to follow,” offers some tips.

Every adult should have a last will and testament and a financial power of attorney, so someone can manage their financial affairs if they become incapacitated. You’ll also need a healthcare proxy to name a person who can make medical decisions on your behalf.

Update beneficiary designations on 401(k)s, investment accounts and any financial accounts naming a beneficiary. Whatever is on those documents supersedes trusts and wills. These should be reviewed every few years or after any major life events like marriage, divorce, the birth of new children or grandchildren, or the death of a beneficiary.

Secure your important documents and make sure your executor, trustee and a trusted family member know where they are. The executor should also have contact information for your estate planning attorney, CPA and financial advisor.

Review your overall estate plan every three to five years. If your estate plan was created when your  children were minors and now they’re adults, it’s time to revisit your estate plan.

A will alone might work for a simple estate. However, if you have complicated finances or significant wealth, you should talk with your estate planning attorney about a Revocable Living Trust. Putting assets into trusts allows assets to pass to beneficiaries without going through probate, which is often expensive and time-consuming. Once the trust is established, you’ll need to fund it by retitling assets, so they are taken out of your estate and owned by the trust.

Wills, trusts and estate planning documents should be reviewed and updated on three occasions: every three to five years if your life doesn’t change much, every time there is a major event in your life, commonly called a “trigger” event and whenever there is a large change to tax laws.

The estate planning community is now preparing for the possible end of the Tax Cuts and Jobs Act of 2017, which raised the federal estate and gift tax exemptions to historically high levels. Unless the rule is extended, on January 1, 2026, these limits will return to previous amounts, with estates around $7 million subject to federal estate taxes. If your wealth is near the $7 million mark and you haven’t met with your estate planning attorney to prepare for this potential change, now is the time to make an appointment.

Once your estate plan is up to date, it’s a good idea to have conversations with family members, the people you’ve named as executors, power of attorneys and beneficiaries. If you have a plan but haven’t shared it with children or heirs, it could lead to family fights, even leading to litigation.

Your estate planning attorney will help create an estate plan to meet your needs and protect your loved ones. It’s a task to tackle sooner, rather than later.

Reference: MarketWatch (April 3, 2025) “As a $72 trillion ‘great wealth transfer’ is set to begin, here are 4 estate-planning rules to follow”

Create a Succession Plan to Keep Family and Business Together

Murdoch created a succession plan. However, he made some critical errors, landing him and his children in a public court battle and dooming family relationships. The planning issues resulted from a lack of clarity, power struggles over his media empire and family disputes, says a recent article from MSN, “Learn From Rupert Murdoch’s Errors—Create a Succession Plan Today to Protect Your Company’s Legacy.”

The trouble started when Murdoch appointed his son Lachlan as his primary heir. The other three children objected and sued their father. Murdoch wasn’t even dead, and the succession battle had begun. The company’s reputation and stability felt an impact, to say nothing of the family relationships.

A structured succession plan could have prevented this and much of what followed. With a succession plan, businesses of any size will have a road map for the future and avoid significant internal conflicts.

A recent survey from a major accounting firm in 2021 showed that only 30% of family-owned businesses have created and communicated a robust succession plan. If you own a business and don’t have a succession plan, everything you’ve worked for over the years could fall apart. Here are four lessons from the Murdoch debacle to consider.

Don’t wait to create a succession plan. Some estate planning attorneys say business owners should start preparing their plan about ten years before they expect to retire. The process of documenting the entire business, from how inventory is managed, transportation conducted, sales relationships and all the processes needed to create a proper plan takes time. Developing leadership and preparing for the human resources aspect of a transaction is equally time and labor-intensive.

Be completely open and honest with family members, key employees and other stakeholders. You’ll want everyone to know what to expect, understand what drove certain decisions and be on board with your vision for the future. Transparency does more than manage expectations, it reduces the potential for conflicts. If there are going to be problems with your succession plan, doing it in a timely manner, years in advance, will give you and your company time to address them.

Be able to separate your personal and professional lives. If your plan is to sell or gift your business to family members, there will be many benefits, including gift tax exemptions and income-splitting. However, there will also be challenges.

Plan for the unexpected. Business owners know things never go exactly as planned. Be ready to pivot with a succession plan, including multiple courses in case of change.

A good succession plan identifies key roles for those stepping into leadership positions. Those roles need to be defined clearly and communicated. Honestly assess the skills of the family members you intend to put into positions. Listen to trusted advisors who may have a less emotional response to decisions about family members.

Build a strong team of advisors. Your team will include an estate planning attorney, CPA, financial advisor and possibly a forensic CPA to evaluate the company’s value, processes and assets. If your retirement finances are linked to the transfer or sale of your business, there will be estate planning strategies to embrace to be sure there’s a happy ending for all concerned.

Reference: MSN (March 28, 2025) “Learn From Rupert Murdoch’s Errors—Create a Succession Plan Today to Protect Your Company’s Legacy”

Estate Planning for Single Dads

Estate planning is essential for all parents. However, for single fathers, the stakes are even higher. Without a co-parent to step in, ensuring that guardianship, financial stability and legal protections are in place is critical. A well-structured estate plan provides peace of mind by securing an inheritance, appointing a guardian and safeguarding financial assets to protect children in the event of unexpected circumstances.

Choosing a Guardian for Minor Children

For single dads, one of the most important estate planning decisions is naming a guardian for their children. If a father passes away or becomes incapacitated without legal documentation, the court will decide who assumes parental responsibilities. This process can be lengthy, stressful and may not reflect the father’s wishes.

Selecting a guardian requires considering factors such as financial stability, parenting values and the individual’s willingness to take on the responsibility. It is also wise to name an alternate guardian in case the first choice is unable to serve. Once a guardian is chosen, the decision should be legally documented in a will to ensure clarity and prevent disputes.

Creating a Financial Safety Net

Single fathers often bear full financial responsibility for their children, making it crucial to ensure that funds are available for their long-term needs. A life insurance policy is a key tool that provides financial security in the event of an untimely death. The policy’s payout can cover living expenses, education and healthcare costs, easing the financial burden on guardians or surviving family members.

A trust can also help manage assets for children until they reach adulthood. Unlike a simple will, a trust allows the father to specify how and when funds should be distributed. This prevents young beneficiaries from receiving a large sum of money before they are mature enough to handle it responsibly. Naming a trustee ensures that assets are managed according to the father’s instructions and used solely for the benefit of the children.

Establishing Power of Attorney and Healthcare Directives

Incapacity is often overlooked in estate planning. However, single fathers must prepare for situations where they cannot make medical or financial decisions. A power of attorney (POA) designates a trusted person to handle financial affairs if the father becomes unable to do so. This prevents accounts from being frozen and ensures that bills, mortgages and other obligations continue to be paid.

A healthcare proxy, also known as an advance directive, outlines medical treatment preferences in the event of a serious illness or accident. This document ensures that medical decisions align with an individual's personal values and wishes, thereby avoiding confusion and unnecessary disputes among family members.

Planning for a Child’s Inheritance

Inheritance planning is another critical aspect of estate planning for single fathers. If no legal documentation is in place, assets may be subject to probate, a court-supervised process that can delay inheritance and incur unnecessary costs. A will clearly specifies how assets should be distributed and who should manage the estate.

For fathers with minor children, a custodial account or trust provides additional control over how funds are used. This ensures that money is allocated toward education, housing and daily expenses rather than being mismanaged. By structuring the inheritance properly, fathers can preserve wealth for their children’s future, while minimizing legal complications.

Updating Beneficiary Designations

Many assets, such as retirement accounts, life insurance policies and investment accounts, allow account holders to designate beneficiaries. Single fathers should review these designations regularly to ensure that the correct individuals are listed. Failure to update these documents after major life events, such as a divorce, can result in assets unintentionally passing to an ex-spouse instead of children or other intended heirs.

Beneficiary designations take precedence over wills, making them one of the most important aspects of estate planning. Keeping them up to date ensures that assets pass directly to the designated recipients without going through probate.

Key Takeaways

• Guardianship decisions must be legally documented: Naming a guardian in a will ensures that children are cared for by a trusted individual.
• Financial planning protects a child’s future: Life insurance, trusts and designated accounts provide financial security for children.
• Power of attorney and healthcare directives prevent complications: Designating a trusted person to handle finances and medical decisions ensures continuity in the event of incapacity.
• Proper inheritance planning avoids probate delays: Wills and trusts help transfer assets efficiently while preserving wealth.
• Beneficiary designations should be reviewed regularly: Keeping retirement and insurance documents up to date ensures that assets are distributed to the intended individuals.

Reference: Fidelity (July 12, 2024) "Single parents estate planning"

What to Do After Spouse Dies

The death of a spouse brings not only grief but also significant financial and legal responsibilities. Many surviving spouses are unprepared for the number of tasks required to settle an estate, update legal documents and secure their financial future. While it may feel overwhelming, addressing these issues promptly helps prevent unnecessary complications and ensures that assets and benefits are properly managed and protected.

Immediate Steps to Take

In the first few days following a spouse’s passing, several critical steps must be completed. Obtaining multiple copies of the death certificate is essential, as financial institutions, insurance companies and government agencies will require official documentation. A funeral home or county records office typically provides these certificates.

If your spouse had a will or trust, locating these documents should be a priority. The executor or trustee will need to begin the process of distributing assets and handling the estate. If no will exists, the estate will be administered according to the state's intestacy laws, which determine how assets are distributed.

Contacting the Social Security Administration is also necessary. If your spouse was receiving Social Security benefits, those payments will stop. You may be eligible for survivor benefits, which can provide financial support. If your spouse had life insurance, now is the time to file a claim to receive the policy’s payout.

Managing Finances and Estate Settlement

One of the most challenging aspects of losing a spouse is adjusting to financial changes. Start by notifying banks, credit card companies and investment firms to update account ownership and remove your spouse’s name. If accounts are held jointly, they may be transferred automatically. However, individual accounts may need to go through probate before funds can be accessed.

Mortgage lenders, utility companies and insurance providers should also be informed. If your spouse had outstanding debts, it is important to determine whether you are legally responsible for them. Some debts may be covered by life insurance or paid off using estate assets.

If your spouse had a trust, their assets may pass directly to beneficiaries without the need for probate. However, if they only had a will or no estate plan, probate court proceedings will be required. A probate attorney can guide you through the process, ensuring that debts are paid, and assets are distributed correctly.

Updating Legal and Financial Documents

A spouse’s death often requires updating legal documents to reflect your new situation. Suppose your spouse was listed as a beneficiary on retirement accounts, life insurance policies, or payable-on-death bank accounts. In that case, you may need to update these designations to ensure that your assets are distributed to the intended individuals.

Estate planning documents, such as your will, trust, or power of attorney, should also be reviewed. If your spouse was named as your agent, executor, or trustee, you will need to appoint a new person to handle these responsibilities. Failing to update these documents could lead to confusion or disputes in the future.

Property ownership should also be reviewed. If you and your spouse owned a home together, you may need to update the deed to reflect sole ownership. Some states allow property to transfer automatically, while others require filing new paperwork with the county.

Planning for the Future

Beyond handling immediate legal and financial matters, it is important to consider long-term financial planning. Adjusting to a single income may necessitate adjustments in budgeting, investment strategies, or retirement planning. If your spouse had pension benefits, annuities, or employer-sponsored retirement plans, determine whether you are eligible for continued payments or survivor benefits.

Your spouse’s passing may also impact taxes. Filing a final tax return for your spouse is required, and additional estate or inheritance taxes may be due, depending on the estate's value. Consulting with a financial advisor or estate attorney can help you navigate these complexities and make informed decisions about managing assets moving forward.

Reach Out for Legal Guidance

The loss of a spouse is life changing. However, taking the right steps can help ease the burden. Seeking legal and financial guidance ensures that assets are handled correctly and that your financial future remains secure. Get in touch today to schedule a consultation and find the assistance you need.

Key Takeaways

• Gather essential documents immediately: Death certificates, wills and trust documents are needed to settle financial and legal matters.
• Notify financial institutions and government agencies: Social Security, banks and insurance providers must be informed to update accounts and process benefits.
• Review estate planning and beneficiary designations: Updating wills, trusts and account beneficiaries prevents complications in the future.
• Manage property ownership and debts carefully: Contact mortgage lenders, creditors and utility companies to settle outstanding obligations.
• Plan for financial stability: Adjusting to a single income requires reviewing budgets, investments and tax considerations.

Reference: Principal Financial Group (Dec. 19, 2023) "What to do when your spouse dies: a financial checklist"

Maximizing Gifting Strategies Through Paying for Higher Education or Healthcare Expenses

For individuals looking to pass down wealth efficiently, paying for a loved one’s tuition or medical expenses can be a smart gifting strategy. The IRS allows individuals to make these payments directly to educational institutions or healthcare providers without triggering gift taxes. This approach benefits the recipient while ensuring that wealth is transferred in a tax-advantaged way. Understanding how to structure these gifts properly can help families preserve assets and provide meaningful financial support.

Understanding the Gift Tax Exclusion

The IRS imposes limits on the amount individuals can give to others without incurring a gift tax. In 2025, the annual gift tax exclusion allows individuals to give up to $19,000 per recipient ($38,000 for married couples splitting gifts) without filing a gift tax return. However, payments made directly to educational or medical institutions are not subject to these limits, meaning that larger sums can be transferred without affecting the giver’s lifetime gift exemption.

This rule enables families to offer substantial financial support to children, grandchildren, or other loved ones, while minimizing unnecessary tax liabilities. To qualify, payments must be made directly to the institution, not reimbursed to the recipient.

Covering Higher Education Expenses

Education costs continue to rise, making tuition payments a viable way to support family members while reducing the estate size. The gift tax exemption applies to tuition paid for primary, secondary, or higher education institutions, provided the payment is made directly to the school.

Eligible expenses include tuition fees but do not cover books, room and board, or other living expenses. To provide additional financial assistance, individuals can use the annual gift tax exclusion to help cover non-tuition costs or contribute to a 529 college savings plan.

Funding Medical Care for Loved Ones

Medical expenses can be a financial burden, particularly for aging relatives or those with chronic health conditions. Paying for a loved one’s medical bills, surgeries, prescription medications, or long-term care costs can be a valuable way to assist, while minimizing estate tax exposure.

To qualify for the gift tax exclusion, payments must be made directly to a licensed medical provider or insurance company. Eligible expenses include hospital bills, doctor visits, nursing home care and health insurance premiums. Covering these costs can be particularly beneficial for families who want to ensure elderly parents or grandchildren receive necessary medical care without placing a financial strain on them.

Estate Planning Benefits of Direct Gifting

For individuals concerned about reducing estate taxes, strategic gifting can be a crucial tool. Every dollar removed from an estate through gifting reduces the taxable estate value, which is particularly beneficial for individuals whose assets exceed the federal estate tax exemption.

Gifting strategies also help avoid probate complications, ensuring that funds reach intended beneficiaries immediately rather than being tied up in legal proceedings. Regular gifting can help distribute wealth over time, rather than through a lump sum inheritance, which may be more beneficial for younger recipients who are still developing their financial management skills.

Structuring Gifts to Maximize Tax Efficiency

To take full advantage of the tax benefits of direct payments for education or medical expenses, individuals should:

• Ensure that all payments are made directly to the educational or healthcare provider, rather than to the recipient.
• Consider supplementing tuition or medical payments with additional tax-free gifts under the annual gift tax exclusion.
• Keep documentation of all payments for tax records to verify eligibility for the exclusion.
• Consult with an estate planning attorney to coordinate gifting strategies with long-term financial goals.

By incorporating gifting into an overall estate plan, individuals can provide meaningful support to family members while preserving their wealth in a tax-efficient manner.

Key Takeaways

• Direct payments for tuition or medical expenses are exempt from gift tax limits: These payments do not count toward the annual gift tax exclusion, allowing larger sums to be gifted tax-free.
• Education gifting applies only to tuition: Payments for books, housing and other expenses are not covered but can be supplemented with additional gifts.
• Medical expense payments must be made directly to providers: Covered expenses include hospital bills, surgeries, prescriptions and long-term care.
• Strategic gifting reduces taxable estate value: This approach can help minimize estate tax liabilities, while benefiting family members.
• Proper planning ensures compliance and maximizes benefits: Consulting an estate planning attorney can help structure gifts effectively within an overall financial plan.

References: SmartAsset (January 2, 2025) “Gift Tax, Explained: 2024 and 2025 Exemptions and Rates” and Elder Law Answers (October 6th, 2023) "How to Avoid the Gift Tax by Paying for Education or Healthcare"

An Elder Law Attorney Can Help Navigate Social Security Benefits

Social Security is a vital source of income for millions of retirees. However, the system’s complexity often leaves people uncertain about how to maximize their benefits. From determining the best time to claim benefits to understanding taxation and spousal eligibility, making incorrect choices can result in a reduced lifetime income and unexpected financial burdens.

An elder law attorney can help individuals and families navigate Social Security rules, ensuring that retirees receive the benefits they are entitled to, while coordinating them with other financial and estate planning strategies.

Determining Eligibility and Maximizing Benefits

Social Security eligibility is determined by a person's work history, earnings and age at the time of filing. Individuals can begin claiming benefits as early as age 62. However, doing so results in permanently reduced monthly payments. On the other hand, delaying benefits past full retirement age (typically 66 or 67) results in a higher monthly payout.

An elder law attorney can analyze an individual’s financial situation to determine the optimal time to claim benefits. For married couples, strategies such as spousal benefits and survivor benefits can be used to increase total household income. Understanding how to structure claims for a higher-earning spouse versus a lower-earning spouse can have a significant impact on long-term financial security.

Social Security and Tax Implications

Many retirees are surprised to learn that a portion of their Social Security benefits may be subject to federal income tax, depending on their overall income. Up to 85% of benefits can be taxed if an individual’s combined income exceeds certain thresholds. This includes wages, pensions, withdrawals from retirement accounts and investment income.

An elder law attorney can help develop tax-efficient strategies, such as adjusting withdrawal schedules from 401(k) or IRA accounts to minimize taxable income. Proper planning can ensure that retirees keep more of their Social Security income, while staying in a lower tax bracket.

Social Security Benefits for Spouses, Widows and Divorced Individuals

Social Security rules provide benefits not just for workers but also for their spouses, widows and even former spouses. Spousal benefits enable a lower-earning spouse to receive up to 50% of the higher-earning spouse’s benefit, providing a significant financial advantage.

Widows and widowers can claim survivor benefits, allowing them to receive their deceased spouse’s full benefit if it is higher than their own. Divorced individuals may also qualify for benefits based on an ex-spouse’s earnings, provided they were married for at least 10 years and remain unmarried at the time of filing.

Because these rules can be complicated, an elder law attorney helps individuals determine which benefits they qualify for and how to maximize their payout. Choosing the wrong claiming strategy can result in thousands of dollars in lost benefits throughout retirement.

Appealing Denied Social Security Benefits

Not all Social Security claims are approved on the first attempt. If benefits are denied due to missing paperwork, incomplete applications, or eligibility disputes, an elder law attorney can assist with the appeal process.

The Social Security Administration offers multiple levels of appeal, including reconsideration, administrative hearings and federal court review. Without legal guidance, many applicants struggle to present the necessary medical or financial evidence to reverse a denial. An elder law attorney understands how to structure appeals effectively, ensuring that eligible individuals receive the benefits to which they are entitled.

Coordinating Social Security with Other Retirement Income

For most retirees, Social Security is just one part of a broader financial picture. An elder law attorney helps integrate Social Security benefits with pension distributions, investment income and estate planning strategies to ensure long-term financial stability.

Proper planning can help retirees:

• Avoid excessive taxes on Social Security income
• Ensure that benefits continue for a surviving spouse or dependent
• Structure distributions from retirement accounts in a way that preserves government benefits

By taking a comprehensive approach, an elder law attorney ensures that Social Security benefits work in tandem with other financial assets to provide a secure and sustainable retirement.

Key Takeaways

• Social Security claiming decisions impact lifetime income: An elder law attorney helps determine the optimal time to file for benefits.
• Spousal and survivor benefits can provide additional income: Understanding eligibility rules ensures that married, widowed and divorced individuals receive their full entitlement.
• Taxes can reduce Social Security payouts: Strategic financial planning minimizes tax liabilities on benefits.
• Legal assistance is critical for appealing denied claims: An attorney can guide individuals through the appeals process to secure rightful benefits.
• Social Security should be coordinated with other retirement income sources: Proper planning ensures financial stability in retirement.

References: Super Lawyers (May 7, 2024) “How Do You Become Eligible for Social Security Benefits?", Social Security Administration (December 2024) "Your Right to Representation“ and AARP (January 17, 2023) "7 Things to Know About Social Security and Taxes"

Removing a Trustee Due to Incapacity

A trustee is responsible for managing and distributing assets according to the terms of a trust. However, when a trustee becomes mentally or physically incapacitated, they may no longer be able to fulfill their legal and fiduciary responsibilities. In such cases, the beneficiaries or co-trustees may need to take steps to remove the incapacitated trustee and appoint a capable replacement.

Removing a trustee due to incapacity is a sensitive legal matter. It requires careful planning and adherence to the terms of the trust. Understanding the process and potential challenges can help protect the trust and ensure that assets continue to be appropriately managed.

Identifying Signs of Trustee Incapacity

A trustee’s incapacity is typically related to cognitive decline, physical illness, or other conditions that prevent them from effectively managing the trust. Common signs that a trustee may no longer be fit to serve include:

• Forgetting important financial obligations or failing to distribute assets as required
• Making poor financial decisions that jeopardize the value of the trust
• Neglecting record-keeping responsibilities, leading to missing or inaccurate financial reports
• Becoming unresponsive to beneficiaries or failing to communicate about trust matters
• Receiving medical diagnoses, such as dementia or severe physical impairments, that prevent them from fulfilling their duties

Incapacity can be gradual or sudden, so it is crucial to monitor the trustee’s ability to manage the trust effectively and act when necessary.

Reviewing the Trust Document for Removal Provisions

Most well-drafted trusts include guidelines for removing a trustee in the event of incapacity. These provisions often specify:

• Who has the authority to remove a trustee (e.g., beneficiaries, co-trustees, or a trust protector)
• What evidence is required to prove incapacity, such as a physician’s certification or court determination
• The process for appointing a successor trustee to take over management responsibilities

If the trust document clearly outlines removal procedures, the process can be relatively straightforward. However, if the document does not specify incapacity procedures, court intervention may be required.

Seeking Medical and Legal Evidence of Incapacity

In cases where a trustee’s incapacity is disputed, gathering medical and legal evidence is necessary. This often includes:

• Medical documentation from a licensed physician stating that the trustee is no longer capable of making financial decisions
• Statements from beneficiaries or co-trustees detailing instances of mismanagement or neglect
• Court petitions, if necessary, to legally establish the trustee’s incapacity and authorize their removal

Having clear documentation can prevent unnecessary legal disputes and ensure a smooth transition of trustee responsibilities.

Initiating the Removal Process

If the trust document provides a process for removal, the first step is to follow the outlined procedures. This may involve notifying the incapacitated trustee, obtaining required medical opinions and formally naming a successor trustee.

If no removal process is specified in the trust, the beneficiaries or co-trustees may need to file a petition in probate court to request judicial intervention. The court will review medical evidence, evaluate the trustee’s condition, and determine whether removal is in the best interest of the trust and its beneficiaries.

Appointing a Successor Trustee

After the incapacitated trustee is removed, a new trustee must be appointed to manage the trust. The trust document typically designates a successor trustee. However, if no successor is named, the beneficiaries or the court may need to appoint one.

Choosing a responsible and qualified individual or corporate trustee ensures that the trust remains properly managed and continues to serve its intended purpose.

Preventing Future Issues with Trustee Incapacity

To avoid future complications, it is essential to include clear incapacity provisions in a trust. These provisions should outline who has the authority to remove a trustee, what documentation is required and the process for appointing a successor.

Families can also consider appointing co-trustees or a trust protector who can step in if the primary trustee becomes incapacitated. Taking these steps ensures that the trust remains in capable hands and that assets are protected for beneficiaries.

Key Takeaways

• Incapacity can severely impact trust management: A trustee who can no longer fulfill their duties may mismanage funds or neglect important responsibilities.
• Trust documents often outline removal procedures: Many trusts include specific guidelines on how to remove an incapacitated trustee and appoint a successor.
• Medical evidence is essential in disputed cases: A physician’s certification and legal documentation help confirm a trustee’s incapacity.
• Court intervention may be required: If the trust lacks removal provisions, beneficiaries may need to petition the court for the removal of the trustee.
• Proper estate planning prevents future issues: Including incapacity clauses and naming a successor trustee in advance ensures a smoother transition.

Reference: ACTEC Foundation (January 2024) "Practical Considerations in Dealing with Incapacity"