(Video) When is the best time to contact an attorney about long-term care?

If you already know what an elder law attorney does, then you may be wondering when it’s best to contact them for help.

Anytime there is a transition period or crisis situation, your lawyer can help lay the groundwork for care and help get more benefits to pay for that care. Having a lawyer can help you understand your options if your loved one must move from their home or needs more care in an assisted living or nursing home facility.

Examples of transition times when an elder law attorney can help:

  • If you or your loved one are in the hospital or a rehab facility and may be unable to return home.
  • If you or your loved one are in an assisted living facility but are needing a higher level of care, possibly a skilled nursing facility.
  • If your loved one is unable to stay at home without additional help from family or caregivers to help with Activities of Daily Living.

Learn more in this video from Attorney David Edwards:

If you or a loved one is experiencing a transition where paying for care is a challenge and concern, we urge you to call us at 217-726-9200 and speak with our Elder Care Advisor, Melissa Coulter. She loves helping families find solutions for this very stressful time of life. If you want to learn more about planning at every stage of the lifespan, feel free to attend an upcoming workshop, Aging With Confidence: 9 Keys to Wise Planning & Peace of Mind.

5 Big Risks of Adding Your Kids to Your Bank Account

The Truth About Adding Your Kids to Your Bank Account

Many parents think that “adding their children’s names to their bank account” is an easy way to be sure their kids can help if something unexpected happens, but it can cause some unintended consequences. Legally, what you are doing is naming a child as a joint owner of the account. This can have big legal implications that you might not intend. Despite friends or bankers telling you it’s a good idea, this sort of “coffee shop” legal advice can cause big problems down the road.

While naming your child(ren) as joint owner of your bank account could insure that bills and other obligations can be taken care of without you, it is best to understand what other problems you may be creating for yourself and your child by adding them to your bank account.

5 Risks of Simply Adding Your Child’s Name to Your Bank Account

There are many potential issues that could come up later if you add your child to your bank account now. Here are just a few to think about:

  1. If you die, the child on the account gets all the money in the account. This can be a real problem if there are several children in your family, but you only named one of them on the account. Even if you intended for all the children to share the money upon your death, legally the money belongs to the child whose name is on the account.
  2. If the child on your account gets sued or divorced, YOUR money in your bank account could be at risk.
  3. If your child becomes disabled (through a car accident or a stroke) after you are already disabled, then their spouse will gain control of the account and your money.
  4. If creditors come after your child, they could come after YOUR money in the “joint account.”
  5. If your child is on the account as a joint owner, then they have every legal right to come and take ALL the money from the account anytime they want. And there is not much you could do legally to stop them from doing so. You’re probably thinking, “My child would NEVER do that.” But money makes people do strange things. We see it nearly everyday.

2 Solutions That Can Prevent Future Problems

1. Power of Attorney

If you want a child to be able to pay your bills if you are sick, then name them a Power of Attorney instead of adding them as a joint owner of your bank account.

2. Payable Upon Death

If you want your money to go to your child or children at death, use a payable on death designation or give instructions in your will or trust.

Experienced Estate Planning and Elder Law Attorneys Can Help

Ultimately, you need to find solutions to accomplish your goals without creating unintended problems down the line. This is why it’s important to have the help and advice of an experienced estate planning and elder law attorney. Attorneys use legal tools like Powers of Attorney, trusts, wills and payable upon death designations to make sure things will go smoothly upon death or disability.

The most effective attorneys can help you solve problems without causing extra stress and unwittingly creating more problems down the road. Experienced estate planning and elder law attorneys should be able to anticipate the potential problems that your current actions may cause and prevent them through the use of legal solutions.

To continue learning more on the topic, download our free report, 12 Reasons Not to Give Your Property or Your Money to Your Kids Right Now. We also offer a free monthly workshop for the community — Aging With Confidence: 9 Keys to Wise Planning & Peace of Mind. You can find upcoming dates for those workshops here or give us a call at 217-726-9200 to save yourself a spot.

give your house to your kids

(Video) Beware of What Happens When You Give Your House to Your Kids

When faced with the shocking costs of long-term care or a nursing home, many people have to scramble to figure out a way to pay the enormous fees. Realistically, the $6000+ a month it costs for a nursing home in Central Illinois is a big financial burden for most people. Many are left with Medicaid as the only possible way to get the care they need as they age. In fact, it is estimated that 70% of nursing home residents rely on Medicaid to pay their nursing home bill.

Without planning, the most common way to qualify for Medicaid is to “spend down” most of your assets.

So, in order to try and protect assets (like the family home), some people consider transferring their house or other assets to their kids. This can work for Medicaid, if done at least 5 years ahead of when care is needed, but there are risks involved.

The unintended consequences from this approach can create big problems. Learn more about the risks by downloading our guide, “12 Reasons Not to Give Your Property or Your Money to Your Kids Right Now,” or watch the following video where Attorney David Edwards explains a little more about the risks involved in giving money or property away to your children.

Cinderella and estate planning

7 Important Things Cinderella’s Father Could Have Done Better

The secret to avoiding disaster in the Magic Kingdom — plan ahead.

So much of parenting is about planning and anticipating problems BEFORE they happen. And trips to Disney World are no exception. We know from experience that our kids get worn out if they days are too long. So, now we purposely build in days to quit early and have some down time back at the pool. On our most recent trip, I was reminded once again of how disastrous bad estate plans can be when minors are involved. Cinderella’s father made her life even more difficult by not anticipating what would happen if he died. Keep reading to find out what he could have done differently.

7 Important Things Cinderella’s Father Could Have Done Better

You’re probably familiar with the age-old story — Cinderella’s mother dies when she’s a young child, leaving just her and her father. Sadly, while Cinderella is still a minor, her father dies after remarrying a woman with two children of her own. His estate is left to his widow. (A regular occurrence in the real world.) And we all know what happens next: the wicked stepmother takes control of the estate of the benefit of herself and her own daughters. Treated as a servant in her own home, Cinderella is reduced to befriending rodents and birds.

Unfortunately, attorneys see these sorts of real life disasters everyday. The parents of modern day Cinderella’s aren’t bad people. They just failed to properly plan. They certainly didn’t wish for bad things to happen to their children. But that’s what happens when you don’t plan for things that are common to the human experience. (Like death.)

Here are 7 estate planning actions Cinderella’s father could have taken to better protect her once his wife died:

  1. Name guardians who share his values. See our Child Raising Priorities Checklist to help you decide what’s most important to you.
  2. Leave instructions for the guardian about how he wants her raised. This could include schooling preferences, where he wants her to live, religious upbringing, etc.
  3. Don’t think of planning as “all or nothing.” All of the father’s assets didn’t have to go only to the second wife OR only to his child. He should have considered dividing the assets between the spouse and Cinderella.
  4. Name an “outside” helper. Even in the best of circumstances, putting a stepparent in control of the stepchild’s money (or vice versa) can lead to frustration or awkwardness. A professional trustee (such as a bank, CPA or attorney) could have better balanced the interests of both Cinderella and her stepmother.
  5. Prioritize key needs for Cinderella such as future educations costs, wedding expenses, a down payment for a home, etc. Setting aside priority funds in a trust will make sure they are not spent on other things.
  6. Pass on a non-financial legacy. Cinderella’s father could have done a better job in transmitting his values, traditions, stories, faith and experiences, and this should have been especially important because Cinderella was so young when her mother died. By passing on a non-financial legacy, he could have insured that her mother’s things — photos, jewelry and other important “belongings” or memories were passed to Cinderella and not the stepmother. Read about 10 Non-financial Planning Issues You Should Consider here.

The type of planning that best protects minors when the unthinkable happens requires attorneys to act as counselors for the client. This also often involves collaboration with other professional advisors. By working as a team, these professionals who deal with real life Cinderella stories everyday can develop solutions for issues such as a creditor protection, remarriage protection, guardianship and special needs.

An estate plan is not really about YOUR DEATH. It’s about your CHILDREN’S LIFE if you’re not there to protect them anymore. You do everything you can to protect them right now — bike helmets, the best car seats, safe cars, healthy food, etc. but what if the unthinkable happens? Will all your protection go away if you go away? Preparation now avoids extra heartbreak and tragedy later. Read a real life story about lack of planning and the death of a young mother here.

Oftentimes, this is the single hardest activity a parent will engage in. We give guidance in person when clients go through this process with us. As always, feel free to give us a call at 217-726-9200 if you have any questions!

What You Need to Know About Nursing Care and Aging

So, what do nursing homes have to do with estate planning? When most people think about estate planning, they almost exclusively think of a Last Will & Testament, but a Will only works AFTER you pass away. A Will sets out what will happen, who’s in charge, and where your assets will go AFTER your death. Around the office, we refer to this as “death planning” because the plan you make goes into effect after you’re gone.

Because people are living longer, a new aspect of estate planning has emerged over the last decade. And this new type of planning is just as important as the traditional “death planning.” We call this form of planning, “Life Care Planning,” because it addresses the type of care you may need toward the end of your life.

It is difficult to face, but statistics tell us that 70% of people who reach the age of 70 will need some sort of long-term care (like a nursing home). The need for long-term care happens because of stroke, dementia or any number of health problems. When serious health issues crop up, you and your family will come face to face with the following questions:

  • How do we pay for good care?
  • How do we keep peace in the family during this extremely stressful time?
  • How do we protect our loved one’s life savings if the average cost of a nursing home in Central Illinois is $78,000/year?
  • How can we take maximum advantage of the help available to pay for good care?

The Basics of Needing Assistance as You Age

When it comes to needing assistance as you age, there are basically three choices:

  1. Stay at home with help. Many prefer to stay in their own home and hire someone to help with light housekeeping, meal preparation, bathing assistance or the activities of daily living (ADLs). However, in-home medical help can quickly become too expensive for most families.
  2. Move to an assisted living facility. At an assisted living facility, you have your own living space, meals provided in a common dining area, and social activities. In addition, they can help with care needs such as bathing and medication. In order to be in assisted living, one generally needs to be mobile (able to get to the dining room, get in and out of bed, etc.).
  3. Enter nursing home care. Most of us would like to avoid this option, but it is often a reality as medical complications from aging begin to stack up. In addition to meals and social activities, nursing homes provide around-the-clock-care, administer medications, offer rehabilitation (in the form of Physical Therapy or Occupational Therapy), etc.

Our Elder Care Advisors are a great resource for families during this stressful time of life. We also offer a free 1.5 hour workshop titled, Aging With Confidence: 9 Keys to Wise Planning & Peace of Mind. At this workshop, you’ll learn about effective planning during the five stages of life, as well as clear next steps to guide your planning and create an aging roadmap. Check on upcoming dates for this free workshop. Call 217-726-9200 to RSVP.

why you need long-term care planning

Why You Need Long-term Care Planning

Finding good care as you age has always been stressful. And thanks to the rising costs of long-term care in the U.S., the last decade of life is now more stressful than ever. Long-term care planning (or Life Care Planning) can help make sure you get good care, help find ways to pay for the care and decrease stress so you can enjoy time with your loved ones.

Attorney David Edwards shares some of his thoughts on why you need long-term care planning.

If you or someone you know could benefit from long-term care planning, we encourage you to attend one of our upcoming workshops entitled, “Aging With Confidence: 9 Keys to Wise Planning & Peace of Mind.” See the upcoming dates here. At this 1.5 hour workshop you’ll learn why planning must include both estate planning (death planning) and LIFE planning, the five life stages to plan for, and which stage you or your loved one are in, plus clear next steps to guide you and create an aging roadmap. Call 217-726-9200 to RSVP.

david edwards estate plan

Secrets: 5 Things Your Adult Children Need to Know About Your Estate Plan

Parenting often involves keeping secrets, especially when the kids are little — remember all the secrecy surrounding Christmas or birthdays?

Back when my daughter was 4 years old my wife and I kept a big secret from her. For her 5th birthday we surprised her with a trip to Disney World in conjunction with an estate planning conference! (She was excited about the first, while I was pretty excited about the second.) It was hard to keep the secret at times, but it sure was a fun surprise when we pulled it off.

Estate Plan Secrets

Secrets can be fun. But where estate planning is concerned, they most definitely are not. Sometimes it’s hard to know what our kids may or may not know about our plan. Walt Disney’s daughter was once asked by kids at her school what it was like to be his daughter: She came home that night indignant, telling her dad, “You never told me you were Walt Disney!” Sometimes things that seem obvious to us might not be so obvious to our kids.

5 Things Your Kids Need to Know About Your Estate Plan

What do your kids know or not know about your estate plan? Here’s a quick checklist to consider:

  1. Burial — Do your kids know whether you want to be cremated or buried? If you want to be buried, where do you want to be buried? Have you already purchased a cemetery lot?
  2. Who to Call — Do your kids know who your attorney is or how to get a hold of him/her? Can he help tie up loose ends or was he only used to fill out forms and make them official during planning?
  3. Assets — Do your kids and/or family know what your assets are? If you suddenly have a stroke or heart attack can they easily find that information?
  4. End of Life — Are they clear about your wishes for ending treatment and “pulling the plug?” Do they know how you feel about organ donation?
  5. Your Plan — Do they know where to find your will, trust and/or powers of attorney? (And if they’re in your safe deposit box or home lock box, can they get in? Do they have the key or the combination?) Will your kids be surprised by your plan? (How you divided assets or whether you gave to charity…) Unfulfilled expectations can mean conflict between your kids or lifelong heartache for a child who misreads a plan as being a symbol of how the parent felt about them.

5 Tips to Make Sure There are No Secrets About Your Estate Plan

  1. Talk. Have conversations with your kids about aging, death and what will happen. There are good conversation starter resources at EngageWithGrace and The Conversation Project. You can also read our post on the subject HERE. The holidays, when families gather together, are a good time to get these conversations started.
  2. Find an experienced attorney. Work with an attorney who keeps your plan up to date through a membership program or a maintenance plan. That way, even if you don’t want to share all of your financial information with your kids now, the attorney will have it to provide them with later. Read about our program HERE.
  3. Don’t assume. Recognizing if your kids will know what to do or how to do it once you are gone can be really hard. Tell them what you expect now. Things like which advisor to rely on or “take care of your little sister” can go a long way.
  4. No surprises. Give your kids the overview of your plan, so they know what to expect. News such as, “I’m going to leave your brother the farm,” is better with an explanation from you now. Your attorney can help with this, providing as much or as little detail as you want.
  5. Don’t just fill out a form. Include purpose statements in your will or trust. Tell why you did what you did, or explain that “it is my intent” that the plan work a certain way.

Estate planning works much more smoothly when there are no secrets or surprises. Save your family a lot of money and heartache by doing a little work now. Read about how to avoid an estate battle after you’re gone HERE.

5 Estate Issues You and Your Family Should Plan For

“An ounce of prevention is worth a pound of cure.”

When it comes to estate planning, this quote from Benjamin Franklin could not be more true. Oftentimes, people don’t think of estate planning, or the issues related to it, until it is too late. As a firm who deals only with estate planning issues, we have seen our fair share of terrible problems that could have been prevented by planning ahead and creating an effective estate plan. Dave says it all the time, “Bad estate plans break up good families.”

Taking advantage of David’s unique perspective, in this post we’ll explore the most common problems he encounters every day — problems that could be avoided by just planning ahead. Here are 5 key issues you should consider as you create an effective estate plan:

“Assets? What assets?”

You might be surprised at how often those left behind have no idea about life insurance, stocks, bank accounts, etc. Discovering these “hidden” assets takes time, money, patience and a lot of detective work. And despite any dreams you once had of being Joe Friday, the last thing you want to do while mourning the loss of a loved one is play detective.

“Attorney? What attorney?”

Oftentimes those left behind have no idea if an attorney is needed, or if an attorney has already been consulted. Does looking in the phone book and calling the first attorney whose ad catches your fancy seem like the best way to handle your loved one’s estate after they’re gone? Many of our clients’ families meet us before they need us, ensuring that a trusting relationship is already in place and decreasing stress and anxiety when the time comes to execute the estate.

“Equal? What’s equal?”

Many people plan on just having their children split things equally upon their death. It seems like a beautifully simple and fair way to handle things, but when emotions run high and money or cherished possessions are at stake, things seldom go down the way you would expect. We often see conflicts between family members who have different ideas about how to handle things — conflict that could have been avoided with more in-depth preparation. We’ve also seen that seemingly good ideals like “equal” puts some adult kids at a disadvantage.

“Taxes? What taxes?”

Did you know your lack of planning could cost your family money? Without proper planning, they could end up paying extra income tax on IRAs or annuities (or pay them earlier than necessary). We see this quite often. To avoid this, you should get specific advice regarding your tax deferred accounts, both now and after death.

“Issues? What issues?”

There are a lot of unique circumstances that arise when dealing with minors or even young adult children. Are your kids prepared to responsibly handle what you’re leaving them? Have you distributed the wealth in such a way that the younger children will have adequate care for the proper amount of time? As experienced estate planning attorneys, we see the ramifications of families not being fully prepared all the time. We hate seeing this and don’t want any family to have to go through it. Our firm is experienced in thinking through every issue your family needs to consider when creating an effective plan.

So what do you imagine for your family after you’re gone? Do you imagine them having no idea what or where your assets are? Do you imagine them knowing exactly who to call or struggling to figure out who your attorney is? Do you imagine great stress and distress in the middle of their grief as they scramble to figure out what needs to be done? Surely not. Planning ahead is not being morbid or pessimistic. It is protecting and caring for those you love. (Get our free checklist, What to Do When a Loved One Dies, here.)

Find out more about effective planning across the lifespan by attending our free workshop, Aging With Confidence: 9 Keys to Wise Planning and Peace of Mind. Call us at 217-726-9200 to RSVP today. (Get the dates here.)

3 Things That Can Ruin Your Estate Plan

Don’t be caught with an out of date will. Keep the 3 L’s of estate planning in mind.

You’ve finally finished creating your will with your attorney – congratulations! It’s a big undertaking. You’re probably thinking it’s time to stash it in a safe place and forget about it. As long as your attorney has a copy, you’re okay right?

Wrong.

It’s important to update your will at least every three to five years (sometimes more often as laws or circumstances change). Taking the time to update your will can ensure that your legacy gets passed on according to your wishes and can also eliminate family disputes upon death. If you’re not sure whether your will needs to be updated, it’s best to follow the 3 L’s of estate planning. Many of the changes any estate plan faces can be summed up by examining the following 3 things: life, law and learning.

Life

What has changed in your family, your health, your job status or your finances since your last will was created? Have you purchased property or a business? Have you sold a business or property? Have you purchased a new car, boat or art? A lot can happen in 3 to 5 years, especially as we age. A great example would be if a divorce or remarriage happens within the family. This can impact family members emotionally and can restructure family organization. A timely update to your will can help you avoid family conflict and lengthy court time for your family after you have passed away. Life changes warrant an updated will. (When it comes to life changes, don’t forget your beneficiary designations on things like life insurance!)

Law

What legal or tax changes have occurred in federal or state law since your will was drafted? Have your federal tax laws changed? Have your inheritance or death tax laws changed? These are all questions to consider as your will ages. Changes in federal or state law can directly impact your will. Changes in the law warrant an updated will.

Learning

What have you learned since your last will about your family and how they handle money? Perhaps you’ve learned that your beneficiaries mishandle their own money and tend to overspend. Or maybe they’ve gotten a big promotion at work and seem too busy to allot time to executing your will. What legal strategies do estate planning attorneys have now that may not have been available or common when you did your last will? Learning new things can warrant needing to update your will or trust.

If it has been some time since you last thought about your will, it’s probably time to consider an update. Life happens, laws change, and the most effective estate plans continue to evolve over time. If you have questions or concerns about your existing will, please feel free to call us at 217-726-9200 or email us at info@edwardsgroupllc.com with your questions. We will be more than happy to help you. If you’d like to learn more about our Dynasty Program, which helps Edwards Group clients make sure their plans are up to date and evolve over time, click here.

The St. Louis Rams & Beneficiary Designations

When the rules are in writing, you have to follow them. Unless you’re the NFL. 

I am a St. Louis Rams fan. Loyal from the time they arrived in St. Louis after failing to get a new stadium in Los Angeles. Like all Rams fans, I was really upset when they left St. Louis, even after witnessing a decade of historically bad football.

For those unfamiliar with the situation, the lease the Rams had allowed them to relocate to Los Angeles this past January. The Governor of Missouri appointed a task force to try and negotiate a new, long-term stadium deal to keep the Rams in St. Louis. The task force ultimately came up with an actionable proposal on a new riverfront stadium for the Rams.

But after the proposal was submitted, the NFL’s assigned committee recommended that teams in San Diego and Oakland (two cities that essentially had no stadium proposals) be allowed to move to L.A., instead of the Rams. Throughout the task force’s work, it appears the Rams’ ownership was uncooperative. They did not meet with the task force, talk to the media, or talk to the fans. All of this was in apparent disregard of the NFL’s relocation guidelines requiring good-faith negotiations and attempts to maximize fan support in their current home community.

In spite of all this, the league allowed the Rams to relocate to L.A.

It seems laughable to suggest that the NFL relocation guidelines were followed. An owner who refuses to take part in negotiations is not negotiating in good faith, and an owner who refuses to talk to fans or the media for four years after his intention to move has become public, is not operating in a manner that would maximize fan support.

As the Rams made the number one pick in the NFL draft this year, the fans in Los Angeles got to cheer on their new quarterback. I thought to myself: based on the NFL’s own guidelines, he should have been St. Louis’ new quarterback. I didn’t like seeing something end up in the wrong place because it seems unfair. 

Estate Planning Involves Written Rules That Have to be Followed

Unfortunately, we see unfair things all the time in our firm. In the estate-planning world, unlike the club of pro football owners, we can make written rules and trust that they will be followed. Unfortunately, too often people don’t pay close attention to the rules that are put in place through their own plans and beneficiary designations.

For example, in 1996, a man named Warren Hillman named his wife as beneficiary on his federal employee’s life insurance policy. They later divorced, and Mr. Hillman remarried four years later, but he never updated his beneficiary designation. When he died, his widow sought to claim the payout, but she was denied because she wasn’t the beneficiary. The dispute over that policy made it all the way to the U.S. Supreme Court. In 2013 the court ultimately granted the death benefits to the ex-wife because she was the listed beneficiary. (Read about more court cases involving problems with beneficiary designations on life insurance policies here.)

It’s pretty easy to picture an ex-wife enjoying money that a widow thought was rightfully hers; the same way I picture the fans in L.A. enjoying the sun and the Rams. Every day, we help clients coordinate their beneficiary designations with their estate plan to make sure everything ends up in the place you desire. After you’re gone, the best way to make sure your family knows your wishes is to leave them in writing. 

Be Sure to Update Your Beneficiary Designations in Writing

Your things (and your family) are far more important than a football team. Therefore, it is vitally important that you make sure your beneficiary designations are up to date and your estate plan is current.

Life is constantly changing, and when it does, your plan needs to be updated to reflect those changes. At Edwards Group, we have a special program that helps make sure your plan stays up to date. Read more about our Dynasty Program here.

If it’s been a while since you’ve updated your plan, give us a call at 217-726-9200 or plan to attend one of our upcoming workshops.