Tempe Arizona Estate Planning

An Estate Plan is About People, Not Just Things

An Estate Plan is About People, Not Just Things

If the first thing parents learned about estate planning, was that it is a way to protect their children from being raised by their rebellious brother, chances are good that every parent would rush to have their estate plan done.

Most of us understand that an estate plan is to distribute assets after we die. However, anyone with children under age 18, need to know that their will is used to name who they want to raise their children if they should both die. A will is also used to name the person who will take care of the money left for the children. This should be taught in Parenting 101.

Wealth Advisor’s recent article, “What's missing from your estate plan?” advises that it’s not a good idea to have the same person perform both of these tasks. Separating the people who care for your kids from those with free access to the money left behind, is a better choice. If the parents’ estate plans do not include instructions concerning the children, those left behind can have drastically different opinions about where the children should live and how they should be cared for.

When families feel strongly about those issues, it also creates difficulties for the children. They’re not only mourning the loss of the parents, but now their loved ones may be at each other’s throats, in a legal attempt to gain custody that will drain resources and divide the family. However, there are some simple steps that can avoid this additional cost and emotional trauma.

Don’t leave a hole in your estate plan by omitting a document that addresses what happens to you, if you become incapacitated. A living will, also known as an advance directive, is an essential component of a complete estate plan. This document answers "end of life" questions, particularly whether a person should be kept alive by artificial means. Most of us don’t want our families making those difficult choices, so have your estate planning attorney draft an advance directive, so they won’t have to.

Another part of your estate plan that protects people, is a medical durable power of attorney.  If you don’t have one in place, and you are incapacitated, your family and medical providers have to guess what you want. Name a person to take on this role and have candid conversations about what you would want. This spares your loved ones from further stress during a difficult time, and lets you have more of a choice about your own care.

Parents of young children need to have an estate plan, as soon as they become parents. See an estate planning attorney, who will be able to make sure that you and your young family are prepared for the ups and downs of life.  Contact the Soto Law Firm today for a free consultation to get your planning started.

Reference: Wealth Advisor (August 27, 2018) “What's missing from your estate plan?”

Get These Documents in Order for Your College Student

Get These Documents in Order for Your College Student

By now, the dorms are filled, and a new winter semester is underway. However, you can still take care of these often-overlooked details for your college student.

If you were so busy focusing on the logistics of getting your student off to college, that you didn’t have time to get to the details below, now is the time to get it done. As listed in this article from nj.com, “Don't let your kid go to college without these 10 things,” these are important for your student and you to have in place.

1. Health Insurance Information. Most colleges offer some free health services to students. However, that might not be enough for most healthcare needs, especially for emergencies. Even if the student is on your plan, the coverage may not be enough, if the student goes to college in a different state. The possible need for out-of-network care could get very pricy. Ask your insurance company to calculate how the student’s bills would be covered. You should also take a look at any insurance offered by the school.
2. A Local Providers List. An out-of-state student can get an annual check-up when she’s home for the summer, but some medical needs may not conform to the times when they’re home. Before students get to campus, prepare a list of local care providers who take your insurance.
3. Durable Power of Attorney and Healthcare Power of Attorney. When your student was a minor child, as the parent, you had the right to receive information about his medical care, and you were authorized to make medical decisions on his behalf. Remember that, when your child reaches the age of majority, you lose those rights. That’s why it’s critical for your student to sign durable power of attorney and healthcare power of attorney documents. These two documents will authorize you to make financial and healthcare decisions for your student, and to get information about his care. Ask an estate planning attorney to create these documents for you.  It’s well worth the time and expense.
4. A Budget. Aside from how to pay tuition, students need to have a plan for other expenses, like textbooks, pizza, and toothpaste. Create an estimated budget with all possible expenses and examine discretionary costs.
5. A Money Back-Up Plan. You know that even with a great prepared budget, there may be times when your son calls home asking for money. A slick way to transfer funds to your student is to have a linked bank account. You can easily transfer money from your account to his.
6. A Credit Card. Credit cards in college take some discipline. Help your student find one credit card with a low available balance. She can use the card for a few regular expenses each month, which are accounted for in your budget. You should stress the importance of paying on time, every time. That will help to build a strong credit score. With a solid credit history, after graduation it will help her get an apartment or a car loan.
7. Renter's Insurance. Ask your homeowner’s insurance company about how and if your student’s possessions will be covered by your policy when she moves into a college dorm. Most policies will give coverage but be sure it’s not limited. If it’s not as comprehensive as you’d like, you should consider purchasing an additional renter’s policy, especially if the student is living in an apartment instead of a dorm.
8. An Emergency List. Create a shared online document that has all the student’s essential information, so you can both easily access it. It should include the student’s bank and credit card account numbers and how to contact the bank, if the cards are lost or stolen. You should also have college contact information, like a student ID number and account information for financial aid and student loans.
9. A Local Buddy. If your kid’s going to college far from home, see if you can find a friendly face for her near the college. It could be a Facebook friend from high school who lives near campus. Maybe your sister’s college roommate has a relative there. It’s reassuring to have another responsible adult as an emergency contact, particularly if the parents are many hours away from campus.  Introduce your student to this person, even if it’s only over email, and make sure they have each other’s numbers—just in case. Your student may even get a couple of free home-cooked dinners from it. You should also be sure that you have a phone number for your student's roommates or friends—just in case you urgently need to contact your student, but he is not answering your texts.
10. Absentee Ballot. When your student turns 18, she’s a prospective voter. Make sure your student applies for an absentee ballot and exercises her new right!

Your student may want to wave away your concerns about these details, but if an emergency occurs you and your child will be better prepared. Yes, they will be home for spring break, but a lot can happen between now and then.

Reference: nj.com (August 13, 2018) “Don't let your kid go to college without these 10 things”

An Estate Plan is About People, Not Just Things

An Estate Plan is About People, Not Just Things

If the first thing parents learned about estate planning, was that it is a way to protect their children from being raised by their rebellious brother, chances are good that every parent would rush to have their estate plan done.

Most of us understand that an estate plan is to distribute assets after we die. However, anyone with children under age 18, need to know that their will is used to name who they want to raise their children if they should both die. A will is also used to name the person who will take care of the money left for the children. This should be taught in Parenting 101.

Wealth Advisor’s recent article, “What's missing from your estate plan?” advises that it’s not a good idea to have the same person perform both of these tasks. Separating the people who care for your kids from those with free access to the money left behind, is a better choice. If the parents’ estate plans do not include instructions concerning the children, those left behind can have drastically different opinions about where the children should live and how they should be cared for.

When families feel strongly about those issues, it also creates difficulties for the children. They’re not only mourning the loss of the parents, but now their loved ones may be at each other’s throats, in a legal attempt to gain custody that will drain resources and divide the family. However, there are some simple steps that can avoid this additional cost and emotional trauma.

Leaving assets in trust to your children allows you to name someone to be in charge of those assets while they are young, and invest them on their behalf until they come of age and can learn to manage their share.  This method also allows you to name one person, who has the right financial skill to be in charge of the money, and you can name a totally different person to be the guardian for your children and care for their daily needs.  These two individuals can then counsel together as to what the best decisions are for discretionary distributions for your children while they are minors.

Don’t leave a hole in your estate plan by omitting a document that addresses what happens to you, if you become incapacitated. A living will, also known as an advance directive, is an essential component of a complete estate plan. This document answers "end of life" questions, particularly whether a person should be kept alive by artificial means. Most of us don’t want our families making those difficult choices, so have your estate planning attorney draft an advance directive, so they won’t have to.

Another part of your estate plan that protects people, is a medical durable power of attorney.  If you don’t have one in place, and you are incapacitated, your family and medical providers have to guess as to your wishes in certain situation. Name a person to take on this role and have candid conversations about what you would want. This spares your loved ones from further stress during a difficult time, and lets you have more of a choice about your own care.

Parents of young children need to have an estate plan, as soon as they become parents. Contact the Soto Law Firm today to speak with an estate planning attorney, who will be able to make sure that you and your young family are prepared for the ups and downs of life.

Reference: Wealth Advisor (August 27, 2018) “What's missing from your estate plan?”

Can You Protect Your Family from the Impact of a Sudden Death?

Family finances can take a huge hit from the unexpected death of the main breadwinner. Advance planning, even when death seems like a remote possibility, can help.

Several national conversations were launched when two bold-name celebrities— Kate Spade and Anthony Bourdain—took their lives. One was about suicide, the other about what happens to families in the face of an unexpected death, from a financial and estate planning perspective.

CNBC’s article, “Sudden deaths like those of Kate Spade and Anthony Bourdain can devastate family finances,” explains that a number of the leading causes of death in the US are events that happen without warning. These are things like heart disease, accidents, stroke, and suicide, which are among the leading causes of death across the country, according to data from the Centers for Disease Control and Prevention.

An unexpected death has a tremendous impact on a family—mentally, emotionally and physically. In addition, it can also affect family finances, depending on the amount of planning the deceased had in place. Think about the following items following the unexpected death of someone you know:

1. Get organized. You should secure all of the deceased’s financial and legal documents, along with his or her keys, wallet, and phone. Next, find the will, if there is one. If an executor or personal representative is named, make sure he or she takes on their responsibility to lead going forward. If you are the personal representative of the estate, you should change locks on their residence, cancel or rearrange home deliveries, coordinate the care of any pets, have their mail forwarded to the authorized person, and arrange for the care or disposal of perishable food items.  There are many other issues that you will need to discuss with an experienced attorney to help you complete your fiduciary duties as the personal representative of the estate.
2. Look to your own mental and financial health. It’s critical to get the support and help that you need, as you grieve. The death of a loved once can take time to properly process and understand how it will affect your future life.
3. Delay major financial decisions for at least a year. Some folks want to make big life changes right away, but experts say to wait. You're grieving and may not be thinking clearly. You may make a decision that you will regret later. If you do need to make a significant financial decision, talk with an attorney first.

Everyone should create their own estate plan, no only to help your loved ones or persona representative avoid the headaches of probate, but also to achieve peace of mind know that can come from having an estate plan in writing.  Work with an attorney to draft the basic estate planning documents, like a will, power of attorney, and health care power of attorney.  Many estate administration problems and headaches can be avoided through the implementation of a living trust.

When you work with an experienced estate planning attorney to draw up these documents, be sure to communicate both the name of your attorney who drafted the documents and your wishes to your loved ones.

To make sure that your plan continues to stay up to date, review estate planning documents on a regular basis—your estate planning attorney will be able to tell you if you need any minor adjustments, or if larger revisions are necessary. Changes in the law often necessitate a review. The same goes for any major life event, like marriage, separation, divorce, birth, death, adoption, etc.   Contact the Soto Law Firm today to schedule a free consultation with an attorney to discuss how an estate plan can help you and your family achieve the peace of mind you seek.

Reference: CNBC (June 8, 2018) “Sudden deaths like those of Kate Spade and Anthony Bourdain can devastate family finances”

Why Do I Need a Living Will?

Unless you want your spouse or your children to make a lot of very difficult decisions during a difficult time, you should have a living will in place.

A living will provides instructions about how you want to be cared for at the end of your life. It allows you to convey your wishes regarding life support and comfort care decisions during a time when you may be unable to do so. It also spares loved ones from having to guess at what you wanted.

The (St. George UT) Spectrum’s recent article, “How to Make a Living Will,” explains that to adequately detail your wishes concerning your end-of-life medical treatment, you should have two legal documents: a living will that tells your physicians what kind of care you want to receive, if you become incapacitated; and a health care power of attorney. The health care power of attorney designates health care agent(s) you authorize to make medical decisions on your behalf, if you become incapacitated. These documents are only used if you are unable to make medical decisions yourself.  These documents can be changed and updated if you choose to name different health care agents or if you wish to communicated different instructions to your agents.  It’s recommended that you have these documents prepared by an attorney who focuses their practice on estate planning.

Some individuals may also choose to sign a Do-Not-Resuscitate Order (DNR) as part of their health care documents.  Individuals who choose this course do so because an advanced directive doesn’t protect you from unwanted emergency care, like CPR.  Doctors and hospitals in all states accept a DNR.  To create a DNR, ask your physician to complete a form that’s accepted in your state and sign it.  Make sure to tell friends and family where it is located, if the time comes that it is needed.

To be certain that your final wishes are followed, make sure that you have a conversation with your physician, family members, and healthcare team, so they all are informed of your expectations.

You should provide copies of your advanced directives and health care documents to all those involved, to help prevent stress and arguments when the time comes.

If yours is a tech-savvy family, you may want to consider the use of an online service that stores your advance directive and health care documents, so that anyone with access to the account can obtain the right document instantly when needed. Either, be certain that everyone has log in information, or make sure that you carry a  wallet card informing health care providers and first responders of the existence of these documents and how to gain access to them.

Contact the Soto Law Firm today to discuss your options and how the creation and implementation of this planning can provide you with the peace of mind you desire.

Reference: The (St. George UT) Spectrum (June 11, 2018) “How to Make a Living Will”

The Value of an Estate Plan Created by an Estate Planning Attorney

There are certain tasks that require the specialized knowledge of a professional. An experienced elder law or estate planning attorney will protect your family and is well worth the investment.

Estate planning and elder law attorneys often receive phone calls from people whose parents decided to write their own wills or downloaded a will that doesn’t comply with state laws. The family is then faced with the expensive and stressful process of dealing with the probate estate. That’s why nj.com’s article, “Why an estate planning attorney is worth the money,” takes a strong stand in favor of working with an estate planning attorney.

With properly prepared estate planning documents, you will benefit yourself, your family, and beneficiaries, both emotionally and financially. At a minimum you should have the following documents: (i) health care power of attorney, (ii) living will, (iii) financial power of attorney, and (iv) a last will and testament.

A health care power of attorney allows named health care agents to make heath care decisions on your behalf when you become incapacitated or are unable to make your own health care decisions.  A living will, also known as advance health care directive, gives written direction to your health care agents regarding the life support and comfort care decisions you would like made on your behalf at the end of your life.

A financial power of attorney, also known as a general durable power of attorney, designates an agent to take care of your financial affairs during your lifetime.  If you become incapacitated without a power of attorney, it’s likely that a costly and time-consuming conservatorship proceeding will be required to appoint a conservator to handle your financial and personal affairs. A conservatorship proceeding can be expensive.  Not only is the conservator represented by an attorney, but a court may also appoint an independent attorney for the alleged incapacitated person. Furthermore, two doctors are also required to examine the alleged incapacitated person and prepare affidavits for the court. All these people need to be paid.

A last will and testament is the instrument that names a personal representative, who will be appointed by the court, and directs the distribution of your assets to your desired beneficiaries.  If you pass away and have a will, it’s more likely that your assets will be disposed of in the way you want and administered by the person you selected, instead of by the intestacy laws.  Without a will, a state’s intestacy laws state who the lawful beneficiaries of your estate will be regardless of whether or not you wish those people to inherit your assets.

At the Soto Law Firm, we help clients avoid the costs and headaches associated with intestate probate proceedings and  conservatorship proceedings, which would cost  far more than the fees charged by experienced estate planning. The anxiety and stress created by do-it-yourself estate plans can’t be measured in dollars alone.  A little bit more money spent with an experienced estate planning attorney now can save you thousands of dollars down the road and make like so much easier for those loved ones taking care of you or administrating the distribution of your assets.  Contact us today for a free consultation to learn more about how we can help you.

Reference: nj.com (June 3, 2018) “Why an estate planning attorney is worth the money”

DJ Casey Kasem’s Daughter Shares Her Family’s Legacy and Battle for Elder Abuse Laws

A radio personality in her own right, Kerri Kasem and her siblings were kept away from their famous father at the end of his life. That experience led them to fight for change, and to create a law that has been adopted in twelve states.

After Kerri Kasem and her siblings were prevented from visiting her father, while he was sick and dying by her stepmother, they launched an initiative to prevent any other family from having that experience. She recently spoke at the Seventh Annual Training of the Greater Augusta Coalition Against Adult Abuse, held in the Waynesboro, VA area. The News Virginian reported in its story, “Kasem speaks against elder abuse,” that Kasem presented “Isolated: How Casey Kasem’s Family fought, changed the law, and survived.”

Like her father, Kerri Kasem is an American radio personality. She hosted Sixx Sense and The Side Show Countdown with Nikki Sixx.

Kasem relayed her family’s story of the fight to see her ailing father. She explained about early warning signs of abuse and prevention. She also provided tips on how law enforcement and Adult Protective Services should approach these cases, for the victim’s rights to be protected.

“I learned very quickly there are no laws in the U.S. protecting adult children,” she said. “There needs to be stronger laws in this country protecting our elderly.”

Kasem fought to see her father and eventually created the Kasem Cares Visitation Legislation. The bill “provides an open path for family members to ask the court to rule on visitation, without incurring the enormous expense and time that comes with a challenge to guardianship or conservatorship,” the website explains. The bill became law in twelve states.

The organization is advocating for changes in the laws in Alabama, Arkansas, California, Illinois, Iowa, Louisiana, Maryland, Nebraska, Texas, Wisconsin and Virginia.

During her fight, many people contacted her in letters saying they were going through the same ordeal. She hopes the legislation and the Kasem Cares Foundation will help other people.

“I knew there were so many families going through this,” she said. “I couldn’t let them go through that. I knew I had to do something. That’s why I created Kasem Cares.”

The Kasem Cares Foundation addresses the experiences of families who need protection from elder abuse, regardless of their financial status. It focuses on the needs of adult family members to try to protect ailing relatives, whose lives are being controlled by someone who restricts their access to a vulnerable adult.

At the Soto Law Firm we help couples and families plan for times of incapacity by allowing them to name those individuals they trust to make the right decisions on their behalf.  Especially in situations of blended families and step-parents, it is vital to speak with an estate planning attorney who can help you put in place the proper documentation that can accomplish your family’s goals.  Contact the Soto Law Firm today for a free consultation to discuss your options.

Reference: The News Virginian (May 13, 2018) “Kasem speaks against elder abuse”

Estate Planning Mistakes You Can Fix Before They Get Expensive

Not having an estate plan in place, makes seniors vulnerable to financial elder abuse.

Are you among the 60% of Americans 60 years old and older who don’t have estate planning documents in place, or the 40% who understand how important it is to protect themselves and their families? If you’re in former group, the time to address these matters is now.

CNBC’s recent article, “These costly estate planning mistakes can be fixed,” says that, when it comes to planning for your estate, the odds are you haven't made all the provisions you should.

A new Wells Fargo survey found that four in ten senior Americans don’t have the important documents that will address financial and health matters, if they’re incapacitated or dying. Those gaps in financial planning have the potential to leave the elderly vulnerable to elder financial abuse. While 20% of Americans age 65 and up are victims of financial abuse, only one in ten think it can happen to them. Consider these actions you can take now to reduce your financial vulnerability.

Store your documents in an accessible place. Your estate plan and other important documents should be stored in a secure but accessible location. There are programs that allow you to create and store your plans online.  As a result, everything is in one place and accessible to family out-of-state.

Break down your to-do list into small items. Make a list of the items of your estate plan that need your attention and work your way down the list. The four key documents everyone should have in place are a will, a power of attorney for financial matters, an advance health care directive, and a power of attorney for health care.  Those with more substantial assets may also wish to have a trust in place to avoid the complication, cost,  and privacy issues associated with probate.

Update your plans regularly. One in six older Americans surveyed by Wells Fargo said their documents are out of date. Many, even the elderly, postpone these tasks because of a lack of urgency. Create a deadline for yourself and your family, for when you want to accomplish these tasks. Follow up when you receive prompts from your estate planning attorney and software (like Outlook) that says your plans need updating.

Talk about your wishes with your loved ones. About 72% of those surveyed by Wells Fargo indicated they believe their finances are a private matter. However, failing to discuss your money will make things harder for your family if you should suddenly—or even gradually, from dementia—be unable to manage your own financial affairs or make decisions.

The simple truth is, putting an estate plan in place, having a will or trust and updating both on a regular basis, will give you a surprising sense of peace. You’ll be more prepared, and your family will be better protected.  Contact the Soto Law Firm today for a free consultation to find out how easy it is to obtain this peace of mind for you and your loved ones.

Reference: CNBC (May 10, 2018) “These costly estate planning mistakes can be fixed”

Your golden years might be three decades long, so planning your retirement and income has to match up with a longer and more active lifestyle.

Today’s retirement could last two or three decades, as people stay healthier and live longer, according to a recent article from WTOP, “Are you ready for 8,000 days or more in retirement?”

Along with this good news come the issues and questions surrounding the transitions before and during retirement. As you near retirement, you may be pondering how you want to spend your days and if you’ll have the savings to live the life you want. Hopefully, if you have been planning, you have a good sense of your cash flow and assets available for retirement.

A complete financial plan addresses cash flow sources and a realistic living budget, as well as Social Security, Medicare, long term care, insurance, taxes and estate planning. It’s critical to envisioning your future retirement. Many professionals believe it’s important to incorporate both quantitative and qualitative planning to allow for a fulfilling retirement and a life well-lived.

At the MIT Age Lab, instead of looking at retirement as an end, they consider a new retirement story that lasts on average for 8,000 days. The MIT Age Lab divides a person’s life into four equal parts of 8,000 days. Each segment lasts approximately 22 years: Learning (birth through college); Growing (start of professional career, relationship/marriage, start young family from your 20s to mid-40s); Maturing (prime career years, bigger homes, raising older children from mid-40s to mid-60s); and Exploring (retirement beginning mid-60s).

In its studies, MIT found that most people only had a vague idea of what they would do in retirement.  It is remarkable that many see retirement as a single state. MIT found that without a clear vision, many retirees are unprepared for what comes next. While you may know exactly what you plan to do on Day 1 of retirement, do any of us really have a clear vision of Day 4,000? Initially in retirement, most have resources, good health and time for leisure activities, travel and social connections, along with the desire to pursue new interests.

Individuals and couples also begin addressing crucial “tactical” decisions that include where to live, how you will get around and with whom you will spend your time. That includes planning where and with whom to retire, as well as how much it will cost.

Meet regularly with your attorney to be certain your long-term plan is intact, can accommodate any changes and is in harmony with your estate plan.

Remember that retirement planning is not just about saving as much money as possible and figuring out the best way to manage the money through the stages of retirement. Planning for a loss of independence, including not being able to get around as easily or needing full time health care are also parts of retirement and aging that need to be addressed.  This is where strategic planning, such as having a Financial Power of Attorney, successor Trustee for your Trust, or and Health Care Agent can make the more difficult parts of your retirement much easier to handle.  Contact the Soto Law Firm today to discuss what options are available to ensure smooth sailing in your golden years.

Reference: WTOP (May 9, 2018) “Are you ready for 8,000 days or more in retirement?”

What is the Purpose of a Conservatorship?

What is the Purpose of a Conservatorship

Conservatorships are granted by a court to a guardian or a caregiver, when a person can no longer care for themselves or an estate is in chaos. It is usually the end result of a bad situation.

Establishing a conservatorship is a complex and time-consuming process, best done by an experienced attorney. This usually occurs when no advance planning has been done, including setting up a trust, creating powers of attorney, or healthcare directives.

The San Diego Union-Tribune’s recent article asks, “What is conservatorship and how do I get it? According to the article, the San Diego Superior Court website conservatorship page has an overview of the types of conservatorships available. It also contains downloadable forms, links, FAQs, and an outline of steps required to set up a conservatorship. Something similar to this service may be found on the Arizona Courts website.

Seeking conservatorship is pretty much the point of last resort. A conservatorship of an estate can be avoided, if a person prepares in advance by creating a trust or arranges for appropriate powers of attorney with family members. These can be used without court intervention.

 However, setting up a conservatorship may be unavoidable, if a parent or other loved one—even a person who’s signed an advanced care directive and appointed an agent for power of attorney—becomes uncooperative, refuses to accept help, won’t go to a doctor, doesn’t eat properly, fails to maintain appropriate personal hygiene, or has become the victim of a scam artist.

Getting a conservatorship can be difficult, especially if the individual requiring assistance refuses and challenges the action in court. In that instance, they may hire an attorney of their own, or receive a court-appointed lawyer, to fight this.

When a conservatorship of a person or estate is granted, it is not the end of work for a conservator. In both situations, the court will follow up with investigator visits to make sure the conservatee or the estate are being cared for or managed properly. In the case of a conservatorship of an estate, there must be an accounting of all assets.

If it is at all possible, speak with an experienced estate planning attorney and put a plan in motion before the situation becomes urgent. It may be possible to avoid problems in the future, including the need to establish a conservatorship. Giving adult children or close relatives powers of attorney, naming an agent, creating an advance health care directive and funding a trust may help avoid lengthy and expensive legal actions.  Contact the Soto Law Firm today to discuss these issues with an attorney in a free consultation.

Reference: San Diego Union-Tribune (April 25, 2018) “What is conservatorship and how do I get it?