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Beneficiary Designations: When was the last time you checked yours?

March 29, 2019/in Asset Preservation, Estate Planning/by KT Williams

Beneficiary designations are an important part of your estate plan. They direct where certain assets or benefits are to be paid at your death. Usually, beneficiary designations allow the asset to pass directly to your beneficiary without delay. This often results in savings of time and money to your beneficiaries.

Life Insurance and Retirement Accounts
The most common assets with beneficiary designations are our retirement accounts and life insurance policies. When we establish our retirement accounts, we are given beneficiary designation forms to complete. On the forms, we identify who we want to receive the assets at our death. In addition to the primary beneficiary, we can name contingent, or successor, beneficiaries. As our lives change, the beneficiary we initially chose may need changing as well. For instance, if we establish the account before we are married, we might name a sibling or a parent as the beneficiary. After we marry, we might prefer that our beneficiary be our spouse. Later, children might enter the picture. If we have children, naming them as contingent beneficiaries might seem like the right thing to do.

However, it is easy to forget our beneficiary designations when we are caught up in everyday life. Months and years may pass without giving any thought to what will happen to those accounts when we pass. Let this be your reminder. And, when you check them, check in with your financial advisor or insurance professional to make sure that you are on track with the goals you’ve set.

Banking and Investment Accounts
In addition to the life insurance and retirement accounts, your banking accounts and investment accounts may also have beneficiary designations assigned to them. This is accomplished through a pay-on-death (POD) designation. For example, when a person who owns a bank or investment account adds a POD designation, the POD beneficiary will receive the account upon the death of the owner. As with other automatic transfers that occur at death, this type of automatic transfer bypasses Probate and the Estate Administration process.

Annual Review of Beneficiary Designations
At least once a year, you should review your beneficiary designations and POD designations. You want to be certain that the beneficiaries you identified remain who you want to receive the asset. As our life changes and our families change, grow and mature, the designation that made sense in the past may not make sense today.

Additional Consideration: Asset Protection
Occasionally, the beneficiary designation should change for reasons other than changes in marriage and children. Perhaps, you want to protect your assets from the cost of nursing home care. Perhaps, you want to protect your assets from falling into the wrong hands, such as the hands of an in-law or a child’s ex-spouse. Perhaps you want your assets to benefit someone without jeopardizing their other benefits, such as SSI, Medicaid, or other government programs. In those instances, a Trust can take care of the beneficiary and protect the assets you are passing to them. Care should be taken to ensure that the beneficiary designation is completed correctly so that it achieves your goal.

Let us help you make sure the beneficiary designations are correct and make the most sense for your family and your goals. If your goals include protecting your assets from nursing home costs of a beneficiary, from in-laws or ex-spouses, and from creditors, special guidance is necessary.

https://ktwilliamslaw.com/wp-content/uploads/2019/03/beneficiary-designation-photo.jpg 533 800 KT Williams https://ktwilliamslaw.com/wp-content/uploads/2015/12/williams-law-logo-rgb-640px.png KT Williams2019-03-29 14:50:462019-03-29 14:51:30Beneficiary Designations: When was the last time you checked yours?

National Healthcare Decisions Day

March 28, 2019/in Estate Planning/by KT Williams

April 16th is National Healthcare Decisions Day, a day set aside to recognize the importance of advance health care planning for you and your loved ones.  None of us should underestimate how much peace we can give those around us by simply making our wishes known.  Stay tuned for more information and related events.

https://ktwilliamslaw.com/wp-content/uploads/2019/03/NHDDBlog.png 334 600 KT Williams https://ktwilliamslaw.com/wp-content/uploads/2015/12/williams-law-logo-rgb-640px.png KT Williams2019-03-28 11:11:422019-03-28 11:12:12National Healthcare Decisions Day

“Equal” Distributions May Not Be “Fair” Distributions

March 22, 2019/in Estate Planning/by KT Williams

Clients often ask what is “fair” as they consider what to pass to their children or other beneficiaries. Typically, their thought is that an equal distribution is a fair distribution. But that may not be the case. Equal is easy. Fair can be a challenge. Our perspective often affects what we view as fair.

Parent’s Perspective of Fair
Most parents love their children equally. Usually there is not one thing a parent would do for one child that the parent wouldn’t also do for another. When a child has a need, the parent instinctively wants to help. It does not matter which child has the need.

So, from the parent’s perspective, they are willing and available to help their children equally. However, as is often the case, one child may have “needs” far greater than another. Perhaps, the child just needs more attention. Or maybe they need more money to help get them through tough times. Regardless of the need, this needier child tends to receive more time, attention and resources of the parents than the child who does not express similar needs. Over time, the difference between what was provided to one child compared to the other adds up. Yet from the parent’s perspective, because they love their children equally and are willing to provide for the children equally, the parent believes that they have acted equally toward their children. And they consider it equal because they believe they would have done the same for any of their children.

It’s obvious the parents didn’t provide equally in reality, though the willingness of their hearts would tell a different story of fairness. Many factors can play into a parent’s greater generosity towards a child. Perhaps, the child’s pattern of bad decisions has led them into greater debt, poorer living conditions, or their own family challenges. Parents step in to help in times of need. And if another child doesn’t have a need or doesn’t express a need, the parent focuses on the one with the need.

Child’s Perspective of Fair
It is difficult to objectively and honestly compare ourselves to others. Our opinions are tainted by our own emotions and desires. This can be particularly true when dealing with family. When one child of a family tends to be far more “needy” than another, over time, the less demanding child may tend to feel left out, unloved, or unable to ask for help because the parents seem to be overwhelmed helping the other. While the child who hasn’t sought or received the extra time, attention, and resources may feel left out, the other sibling may not have the slightest inkling that their parents have not been treating the children equally. The “needy” child may have a difficult time looking beyond anything other than having their own needs met. And they would not concern themselves with the extraordinary time, attention, and resources that were provided to them. Because our own opinions and emotions skew our view of reality, the needy child may not be able to see the difference in service provided by the parents and may simply conclude that the parents must be providing equal service and care to their siblings. From that child’s perspective, their parent’s care and treatment among the children is not only equal, but also fair. Of course, the children who have not demanded as much of the parents may not share that view.

Who’s Perspective Matters: The Parent’s or the Child’s?
Both perspectives matter, but the parent’s perspective takes priority. It is their Will and Trust that is being crafted. And it is the result of their hard work, sacrifice, and saving that is being passed down to their kids. Nevertheless, it is common for parents to worry how their children will respond to what they leave behind. Parents wonder what message they are sending to their children based on what they leave. On the one hand, parents often believe that leaving an equal share to the children will represent that they love the children equally. However, as we recognized above, a parent’s equal love for their children does not automatically result in equal time, attention, or resources being poured out to the children. So shouldn’t the Will and Trust also reflect a careful consideration of fairness?
A parent can love their children equally and never run out of the love they feel. However, parent’s time, attention, and resources are limited. What is given to one, is not available to another. Recognizing this fact during the estate planning process often leads parents to consider more deeply how they want to pass their assets and how we craft their Will and Trust.

Equal is Easy. Fair May Not Be.
It is easy for parents to say they want to leave assets equally to their children. That is especially true when parents consider the distribution as a reflection of their love. When we distribute equally, we don’t have to wonder and wrestle with what is fair. However, fair may not be equal. One child’s needs may be larger than another. Perhaps, this justifies a greater distribution to that child. On the other hand, if far more time, attention, and resources have been provided to one child compared to another, perhaps, a fair distribution is one that favors the child who has not demanded and taken as much of the parent’s time, attention, and resources over the years. Obviously, this is not easy. But we can help.

How to Decide What is Fair
Deciding what is “fair” can be a challenge. We wrestle with that idea daily. Each person’s situation and each family’s situation is unique. Many considerations and concerns are at play. We guide our clients through the process in developing their Will and Trust. We help them determine what is best and fair in their situation. What one family decided may not be right for another family. What one person decided may not be right for someone else. We help families work through these questions. Family harmony and an expression of love from parents to their children is what we help parents accomplish through their Will and Trust. Contact us if you would like to explore this for you and your family.

https://ktwilliamslaw.com/wp-content/uploads/2019/03/Fair.jpg 533 800 KT Williams https://ktwilliamslaw.com/wp-content/uploads/2015/12/williams-law-logo-rgb-640px.png KT Williams2019-03-22 15:27:002019-03-22 15:27:44“Equal” Distributions May Not Be “Fair” Distributions

Should you share your estate plans with your family?

March 15, 2019/in Estate Planning/by KT Williams

Your estate plan is your private business, and sharing it is solely up to you. You may share it with anyone. Many people share their Wills and Trusts with family, and some even include their family in the estate planning process. But, if you share it, don’t be surprised if the response you get is more than a simple . . . “Do what you want. It’s yours. We just want you to be happy.” Although some of your family may say this, you will probably get some “helpful” advice, too. Their advice usually includes an opinion about how you should do something different. While this feedback and advice is often innocent, it is also usually not what is best for you and for your entire family. If you think your family might give unwanted advice or pressure you about the plans you’ve made, consider keeping your plans to yourself. You know what you did in your estate plan and why you did it. You don’t have to justify your actions or motivations. You should feel confident in them and trust yourself and your estate planning attorney who helped guide you.

If you choose to share your plans, there is nothing wrong with that. Many people include their family members in the planning process. But don’t share your plans then change the plans without telling your family the plan changed. Your family’s expectations will be built upon the plans that you shared. Unmet expectations and surprises are a ripe breeding ground for anger, contempt, suspicion, and dysfunction. I’ve seen several instances where an undisclosed change of a Will or a Trust caused hurt feelings, anger, distrust, and even fights. So, if you decide to share your plans with your family, update your family if you make any changes. One of my estate planning goals is to craft estate plans that promote family harmony.

If you want to learn more about estate planning that looks out for you and helps maintain your family harmony, please use our contact form or call us at 270-212-3669.

https://ktwilliamslaw.com/wp-content/uploads/2019/03/2019-3-15-FB-Post-Picture.jpg 533 800 KT Williams https://ktwilliamslaw.com/wp-content/uploads/2015/12/williams-law-logo-rgb-640px.png KT Williams2019-03-15 15:03:412019-03-15 16:01:25Should you share your estate plans with your family?

Did you know?

March 15, 2019/in Estate Planning/by KT Williams

Many Americans are “aging in place” which means they aren’t moving to assisted living or similar support communities as they age. It takes extensive adjustment to manage daily activities as our physical abilities change, especially in our homes.

Unfortunately, a substantial number of these seniors don’t get adequate assistance. The problem is that Medicare doesn’t pay for most of this non-medical assistance. As a result, many seniors go without needed assistance even when they are enrolled in other programs such as Medicaid. Nearly 60 percent with seriously compromised mobility reported staying inside their homes or apartments instead of getting out. Many others said they often remained in bed or didn’t change clothes because of their physical challenges.

As we age, most of us will require help at one point or another. This is another reminder to plan ahead so that we can make sure we and our loved ones get the help we need.

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Will Physicians soon be prescribing a “Smart Watch” to aging Americans?

March 15, 2019/in Uncategorized/by KT Williams

Seniors may soon have a Smart Watch strapped to their wrist – all in an effort to keep themselves healthier. For example, Apple has taken aim at the health market with its new Series 4 Apple Watch. It includes alerts to let you know if your heart is falling to dangerously low levels. The Watch is also equipped with technology to run an ECG. This is claimed to be a doctor-level benefit that may save wearers or their insurers hundreds of dollars by allowing the wearer to avoid an office or hospital visit. And the new Apple Watch can detect falls and offers the ability to call for outside help automatically. Falls are one of the most common causes of injuries among the elderly. Other manufacturers may have watches with similar or even more advanced features. Consumers should weigh their options when shopping.

A Smart Watch may be able to provide health benefits to its wearers. The extent of the benefits remains unclear. But, time will tell.

https://ktwilliamslaw.com/wp-content/uploads/2019/03/rawpixel-1360295-unsplash-002.jpg 555 800 KT Williams https://ktwilliamslaw.com/wp-content/uploads/2015/12/williams-law-logo-rgb-640px.png KT Williams2019-03-15 09:36:282019-03-15 09:47:08Will Physicians soon be prescribing a “Smart Watch” to aging Americans?

How can you help organizations that are important to you?

March 13, 2019/in Estate Planning/by KT Williams

Many of us support organizations that make our community and the lives in it better.  We support them with our time and our resources.  Your support doesn’t have to end at your death.  We can ensure the prolonged benefit provided by these organizations by making careful and deliberate estate planning decisions.  Rest assured that your impact can be felt long after you’re gone, and lives will continue to be enriched as a result of your kindness and generosity.  Even a little bit helps. Great organizations make a little bit go a long way.  If an organization and its mission is important to you, decide today to support it.  Then, contact your estate planning attorney, your financial advisor, and the organization and let them know your decision.  That way, the right steps can be taken.  Call me for help or if you have questions.

https://ktwilliamslaw.com/wp-content/uploads/2019/03/Helping-Organizations-Pic-2.jpg 447 559 KT Williams https://ktwilliamslaw.com/wp-content/uploads/2015/12/williams-law-logo-rgb-640px.png KT Williams2019-03-13 16:56:182019-03-14 15:14:28How can you help organizations that are important to you?

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