Very often, as I am dictating my blog posts, I am with my wife. The other day she said to me, “I have a great title for another blog post.” Therefore, this is dedicated to my wife.
It is now a few months after tax season, and your “CPA/tax professional checkup” has passed. Possibly, your health and eye physicals have also been attended to. It may now be time to pursue a financial checkup to assure that all your estate planning documents are up-to-date and in order.
Even though your documents may have been valid at the time they were signed, it may be time to review them to determine whether they need to be revised due to changes in tax laws, a situation with your child, (financial or medical) or perhaps merely a need to adjust to an increase or decease of your assets, or a change of residence from one state to another.
Once an estate plan has been initiated and prepared, it is usually pretty easy to review or revise it. Many clients review their plans on a three-year or five-year schedule, only to determine that they are still in good order and do not need any further changes. Even fairly straightforward documents such as a health care proxy and power of attorney should be reviewed to assure that your health care proxy has been updated to provide for the HIPAA waiver language and that your power of attorney now includes the power to make gifts, including those to the agent under the power of attorney if that is your desired result.
Perhaps your spouse has passed away or become incapacitated and your documents need to be revised to provide for a contingent backup person. In addition, all your life insurance beneficiary designations, retirement plan benefits and designations and other jointly held assets should be reviewed to assure that the proper names are included or excluded as you desire.
A recent review of a client’s plan indicated that all of her children were named in equal shares, but one child had become estranged from the family. Therefore my client’s documents needed to be revised to specifically exclude that child, include no-contest language, and also remove him as a beneficiary from life insurance policies.
In any event, it is important to review your documents, all the details your plan, including names on accounts, beneficiary designations, and all other assets to assure that the plan is complete and updated.
By: Hyman G. Darling, Esquire
If you’re like most retired people, the single largest asset you have is your home. Since it may be paid for or possibly subject to a small home equity loan, there is significant equity there that could be used for living expenses, including luxuries such as vacations, a new car, or for necessities, such as a new roof, medical expenses, etc.
There are many plans and benefits available for Veterans who are honorably discharged. One of those benefits that is not so widely advertised is called Aid and Attendance (A&A). It may be used for either home care or assisted living when a person is unable to attend to his own affairs. The principal benefit is available to Veterans who are not disabled from their military service, and their spouses, in addition to other benefits.
Having a valid Health Care Proxy and Durable Power of Attorney is important for college-aged “kids.”