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caregiver

Who Do You Trust?

By | 2019, Money Moxie, Newsletter | No Comments

We like to think of our families, particularly our children, as centered individuals who understand the value of maintaining important family relationships. If you don’t think your family fits into this blissful picture, don’t take it to heart. Family dynamics can be challenging, and relationships can be fragile. This is especially true when there are difficult circumstances.

It’s not uncommon to have family members struggling with drug dependency, divorce, mental health, poor spending habits, or lack of financial independence. The list is inexhaustible. Sometimes there are family members who cannot get along. However, rather than sidestepping these sensitive issues, they should be addressed.

These emotionally consuming issues can become roadblocks when it comes to designing your estate plan. So much so that many take the position, “I’m not going to worry about it. I’ll let my kids handle it when I’m gone.” Unfortunately, rather than bringing families together during times of crisis, this approach can have the opposite effect. It can pit one family member against another.

It is common for families to name one or two of their children to act as trustee or co-trustees and personal representatives. This works well in families where children get along, there are no special circumstances, and your estate is straightforward. In these situations, you may feel confident your children can handle your estate the way you intend.

In our visits with clients, we often hear that they don’t want to burden their children. However, making them trustees when there are difficult circumstances may do just that–create a burden. Luckily, the situation can be remedied by using an independent trustee when designing your family trust. Upon your death, as trustee, they handle all distributions from the trust and assist in the sale of assets when needed. Their responsibility is to handle your estate the way you want. They deal with your family in a kind and understanding way, but they are also diplomatic. They can make hard decisions, something that may be hard for a family member who wants to take care of others or could be easily manipulated.

Avoiding conflicts of interest is critical when it comes to finding an outside trustee. You want things handled your way, not the bank or brokerage firm’s way. When researching an outside trustee, we recommend finding one that is independent. This means he or she is not affiliated with a large company.

Let us help you maintain healthy family relationships. If you think you may need the service of an independent trustee, give us a call. We can share our research and advise you on a trustee that may work well with your family.

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An unexpectant caregiver

By | 2019, Money Matters, Newsletter | No Comments

As we welcome in the New Year, I want to give you some food for thought. New Year’s resolutions come and go – some fulfilled, some forgotten. What if you can do one thing in 2019 that will benefit you and those you love? Would you take the time to consider it?

I want to share the recent experience of a close family member of mine. This woman is kind, loving, and if it were in her power, would do anything for anyone – especially those in her family.

Unexpectedly, this woman found herself in the role of primary caregiver to her single sister. Her sister had been financially self-reliant and remarkably independent throughout her life. She was diligent in putting money aside from her earnings to help supplement her income during retirement. What she didn’t plan on were unforeseen medical events that left her completely dependent on the help and support of others.

After many months of cancer treatments, she experienced a stroke, which severely limited her mobility and slowed her speech, leaving her dependent on others for her care. Luckily, she had an older sister who stepped up and took over. Unfortunately, there were no legal documents granting anyone access to medical information, financial information, or allowing them to make decisions on her behalf.

As you can imagine, this created many difficult hurdles. Not only were there medical treatments that needed to be coordinated, there was also the issue of what insurance was available to cover the numerous hospital visits and the ensuing stays in rehab and care facilities. Add to that the dilemma of what money was available to pay for coinsurance, deductibles, and prescriptions. And what about her ongoing bills at home, how would they be paid? It was an unbelievable challenge. It took time, patience, and a great emotional toll.

This situation is not uncommon. We see it all too often. We believe that if we plan financially for the future, everything will be okay. In some cases that is true. What most of us tend to overlook is the emotional impact on those who would so willingly step up to take care of us should the need be presented. Instead of planning for the unforeseen, we unwittingly tie their hands and create unnecessary emotional stress on those we love. Waiting until next week, next month, or next year may be too late. Do it now! Make it a priority for the new year. Take the time to meet with your financial advisor and an estate planning attorney. Create the documents that will minimize the burden on those you love.

Estate planning documents generally include: Will, Trust, Medical Power-of-Attorney, Medical Directive, and Durable Power-of-Attorney. Depending on the complexity of your situation and what you are trying to accomplish, other documents may be needed. An attorney can advise you on the right documents for your personal situation.

Wishing you a healthy, happy, and prosperous New Year!

 

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