The post Estate planning can help ensure you do not outlive your assets appeared first on Law Offices of Berge & Berge LLP.
]]>And, while life expectancy has reduced slightly in the past two years, people in the United States can expect to live into their upper seventies or even longer. You may worry that you will outlive your retirement assets and then what?
Fortunately, through responsible spending and estate planning, you can ensure you will be able to support yourself financially for the rest of your living years.
You can take steps during your retirement to stave off the possibility that you will outlive your retirement assets.
You can plan on taking out only 4% of your retirement assets the first year of your retirement, and then adjusting how much you take out of your retirement in the following year to mirror the rate of inflation.
You can also work with a financial advisor during your retirement. They can help you determine how much you can spend each year without depleting your assets during your lifetime.
Still, is there a way you can proactively avoid outliving your retirement assets? Sometimes you can achieve this through estate planning.
An estate plan can protect the assets in your retirement accounts. For example, assets placed in an irrevocable trust can no longer be touched by you. This way, you can ensure you will have assets to pass on to your heirs.
Also, many people develop debilitating mental health issues as they age. You could develop dementia or Alzheimer’s, which negatively affects your ability to make appropriate decisions or even be in touch with reality.
You can designate a person in your estate plan to serve as financial power of attorney. This person manages your financial affairs if you are no longer able to make rational decisions or make decisions that are in your best interests. This way, if you develop a mental disorder, your financial power of attorney can manage your retirement funds to ensure they will last the rest of your lifetime.
A comprehensive estate plan can help ensure you will have enough money to last the rest of your life. Also, you can take steps during your retirement to spread these assets out over time. This can help alleviate your worry that you will outlive your assets.
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]]>The post When to create a special needs trust appeared first on Law Offices of Berge & Berge LLP.
]]>The same goes for parents of children with special needs. An estate plan could serve a child, ensuring that they are cared for now and in the future.
If you are a parent with a special needs child, you know planning is crucial. Because your child relies on your support for care, you are likely concerned about what might occur if you fall ill or pass away. Creating a special needs trust can address those concerns.
At its most basic level, a special needs trust is designed to provide income for a person who has special needs. Beyond that, it can be adapted to many specific needs. One common goal for a special needs trust is to maintain the beneficiary’s eligibility for government benefits while making sure they have a dependable source of income.
When an individual qualifies for government benefit programs such as Medicaid, VA benefits or Supplemental Security Income benefits, receiving funds could impact their eligibility and amount received. But, if these funds are set up properly in a trust, they will not exceed the thresholds for eligibility for the benefits programs.
Parents always want what is best for their children and ensuring that they receive necessary care and benefits now and well future is vital.
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]]>The post Estate planning considerations before you travel appeared first on Law Offices of Berge & Berge LLP.
]]>One thing you may not think about before you travel is your estate plan. If you do not have an estate plan set up, creating one before you leave is a good idea. Even if you have an estate plan already established, you should review and update it before you go.
Although no one likes thinking about their own death, if something happens to you while you are on vacation or traveling, your family and loved ones back home in California may be wondering what they should do.
Review your will and any other estate planning documents and make any necessary updates. Consider if there have been any major changes within your family, such as births, marriages or deaths that would require any beneficiary updates.
In addition to your will, review any incapacity documents you may have drafted. These may include a living will or a health care power of attorney.
You may want to do this with the help of an estate planning attorney. It is best to do several weeks before your trip, so there is time to get any necessary changes made and reviewed.
You may have appointed someone to be a guardian for your minor children or a conservator for any adult children in your estate planning documents. You should also review these and verify that these are the people you still want to serve in these roles if something were to happen to you.
Locate all important documents and put them in a safe place before you leave for your trip. Tell a trusted family member where they are. This will prevent your family from having to search for the documents, which will be even more difficult to do if they are grieving.
By taking these simple steps, you can save your family stress and confusion. You can travel with the confidence of knowing your affairs are in order if something happens.
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]]>The post Survey: a vast number of people still do not have an estate plan appeared first on Law Offices of Berge & Berge LLP.
]]>Regardless, a significant number of people are still avoiding creating an estate plan. This goes beyond a will and includes other important documents like an advance health care directive and, for some, a trust. Those who are unsure of its value should think about the potential problems that can arise without one and have professional guidance determining the best options.
A financial services firm conducted a survey of slightly more than 2,000 people to assess how many have an estate plan. It found that only one in three American adults have crafted an estate plan. One in five of those who do have one have failed to update it in the last five years. When breaking it down based on gender, nearly three out of four women and almost six out of ten men do not have these important documents.
Advance health care directives—which will name an agent for a person if they are incapacitated and unable to make decisions on their own—are also lacking. One out of three have one and 30% even know what it is and does.
Thirty-seven percent stated that they have not created an estate plan because they do not believe their financial situation warrants it. Another obstacle is putting it off to a later date. That can include just procrastinating, not being sure how to go about it, not believing it is necessary, thinking it is too costly and fear about discussing the prospect of no longer being here.
As part of their research, it was also discovered that people who have consulted with professionals who specialize in estate planning are more likely to at least have a basic will that will cover them and their family members. They also can look at their finances on an individual basis and create a document that is specifically tailored toward their needs.
For example, if they own a business, have great wealth or are simply worried about what will happen if they cannot make decisions on their own, the document can address all eventualities. When deciding how to proceed, it is wise to call experienced people who can give advice on moving forward.
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]]>The post Defining guardianships and conservatorships in California appeared first on Law Offices of Berge & Berge LLP.
]]>Since the early 1980s, the state defines guardianship as a legal relationship of an adult who is responsible for a child under age 18. Provided the child has no parent, the guardian applies to become the child’s guardian until they reach 18. Once made guardian, the adult is able to maintain the care and safety of the youth, in a role similar to that of a parent. You can make a guardianship designation in your estate planning documents, along with backup guardians, just in case.
Conservatorships are legal relationships that bind a conservator (parent or caregiver) to provide for the basic needs of the conservatee (another adult requiring care). These apply to situations in which a conservatee is older than 18, but still requires assistance. This assistance is often due to disability or illness.
Conservatees may be adults, spouses or other family members who require care. The courts want proof that the conservatee cannot meet their basic health and safety needs on their own, before granting the power to the conservator to manage the adult child’s finances and wellbeing. Courts also review conservatorships to ensure the conservatee’s affairs are managed properly.
If you find yourself in need of advice on how best to proceed with your unique circumstances, a family law attorney who understands that you need a custom solution can help. They can explain how the California requirements for establishing and maintaining guardianships and conservatorships apply in your case. They can discuss your options and let you focus on providing care for your loved ones.
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]]>The post Avoiding mistakes in the estate planning process appeared first on Law Offices of Berge & Berge LLP.
]]>Although estate planning can be beneficial for anyone in California or throughout the country, the fact is that when mistakes are made in the estate planning process you may make things worse, not better. A recent news article covered a few examples of mistakes to avoid in the estate planning process.
For starters, the article mentioned that you should not overlook the importance of communicating your estate plan details to those who will be directly impacted. Your chosen executor of the estate, for example, should know about and agree to that assignment, ideally. And, those who will be inheriting from you should probably be informed about what to expect as well, so that no one gets an unwelcome surprise.
The article also mentioned that it would be a mistake to make an estate plan and then never review it for potential updates. Changes happen in life and, when they do, your estate plan needs to be updated. You may need to change or update beneficiary information, for example, among many other possibilities. Getting an estate plan in place is crucial, but so is getting it right.
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]]>The post Why to consider legal assistance in creating your estate plan appeared first on Law Offices of Berge & Berge LLP.
]]>Despite that, a lot of San Jose-area residents turn to self-help guides and do-it-yourself resources that they find online to create their own estate planning documents. Although it seems like taking this route might save you some money, the fact is that creating an estate plan on your own can be dangerous, and it may even end up costing you more time, money, and headache than seeking out legal assistance from the get-go.
An attorney who is experienced in estate planning can help you navigate this process in a lot of different ways. Here are some of the biggest benefits of seeking assistance from a legal advocate:
There’s a lot at risk when you engage in estate planning. And making a mistake or cutting corners can lead to an outcome that you never intended. That’s why it’s imperative that you ensure that your estate plan is created in a legally valid, holistic fashion. If you’d like to learn more about what that would entail, we encourage you to reach out to a legal professional who is adept in this area of the law.
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]]>The post Key factors in naming the right person to be a guardian appeared first on Law Offices of Berge & Berge LLP.
]]>The guardian has specific duties. They will be legally responsible for the child; it can impact them and their family; there is a financial component to consider; and there may be disputes with the child’s family.
Being a guardian is comparable to taking over as a parent. While it can be a positive, the guardian is also responsible for negative behaviors the ward might exhibit. For example, if a teenage ward commits vandalism, the guardian is accountable for that, repayments that might be required and intervening to prevent the child from continuing with illegal activities.
The guardian must also watch over the child’s finances, maintain records and provide information to the court. Financially, some concerns should be considered beforehand. The child could receive an inheritance or insurance payments after a parent has died. They might get properties of enormous value.
The guardian must be prepared to oversee the child’s financial situation and contribute their own money as needed. In some cases, the guardian is not a family member when there are family members still alive. This can cause discord. The guardian must be prepared to handle these potential obstacles. Guardians decide on the child’s living arrangements, education, medical and dental care, mental health and interact with investigators from the state regarding the child.
A guardianship is an enormous task. While it can be rewarding, it can still be rife with challenges that must be addressed. When naming a guardian or serving as a guardian, it is imperative to have a full awareness of everything it entails. Some might not want to be a guardian. Others might be poorly suited. For every factor, professional assistance with guardianships in California can be crucial to achieving the stated goals.
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]]>The post Can you name a non-resident as your personal representative? appeared first on Law Offices of Berge & Berge LLP.
]]>California does allow nonresident personal representative. An individual is considered a nonresident personal representative if they do not live in California at the time you execute your will and name them, or if they move out of the state at a later date. For our purposes here, we’re concerned with the former scenario.
So long as your appointee meets the other necessary criteria – they must be a U.S. citizen, be at least 18 years of age and have no felony convictions – California law permits them to serve in that capacity. But there is one aspect of nonresident personal representatives you may want to consider.
Most courts will require a nonresident personal representative to obtain a surety bond. Because personal representatives are in a unique position to control your estate when the time comes, the court may compel the bond to ensure they live up to their fiduciary duties and properly look after the estate.
Sometimes, a testator may want the court to waive such a bond, and they’ll include language in their will indicating the court should do so. However, even if this provision is present, the court is under no obligation to follow it – requiring a surety bond is entirely within the court’s discretion.
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]]>The post What is incapacity planning? appeared first on Law Offices of Berge & Berge LLP.
]]>The term incapacity means that you are unable to make your own decisions. This could be because you are unconscious, like in a comma. Though, it could also mean that you are not mentally fit to make your own decisions anymore. This could occur during a psychotic break, after a traumatic brain injury or with old age (i.e., dementia, Alzheimer’s, etc.).
Without an incapacity plan as part of your estate plan, you could awaken from a coma without your home, or your spouse may not even be able to pay the utility bills or the mortgage. For cryptocurrency and NFT investors, your crypto-wallets could be lost forever. It may come as a surprise, but many accounts will not give access to anyone other than the account owner, even utility bills. And, some crypto-wallets have no way of accessing them without your San Jose, California, credentials.
In addition, your spouse or a family member would be forced to guess your preferred medical options. How long do you want to be kept on life support? If you are forced into hospice, do you want to go? How do you want your remains handled? How will your funeral be paid? These are all important questions that may need to be answered, should you become incapacitated.
As part of your San Jose, California, estate and incapacity plan, you should include a list of all of your online accounts and wallets. In addition, you should include how to access those accounts, including third-party verification applications, phones that are needed, USBs, crypto-wallet (software and hardware), usernames and passwords.
For accounts that can be accessed with a username and password, make sure your incapacity plan includes that information and what will need to be done if you are incapacitated. This is important for access both after death and in the event of incapacitation.
Then, through one or a couple of powers of attorney, designate who is empowered to carry out your wishes. Do not forget to include the person empowered to make medical decisions on your behalf, along with your wishes.
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