Living Trust Planning | Estate Planning Attorney

Tag: power of attorney

  • 3 Estate Planning Documents Your Parents Need Right Now

    3 Estate Planning Documents Your Parents Need Right Now

    Today we’re diving into a topic that’s absolutely crucial: estate planning for your parents. As they gracefully navigate their golden years, ensuring their peace of mind (and yours!) becomes a top priority. Whether they raised you the way you want, or showed you how you want to do it differently, as your parents age, one of the very best things you can do for your own best future, and that of your entire future lineage – your children, grandchildren, and beyond – is to take great care of the people you were born to or raised by.

    The questions you need to start asking now are: How will you help them if they become ill or injured? Who will take care of their bills and make sure their health needs are met? How do they want to be cared for, if and when they cannot care for themselves?

    The starting place is open conversation and a power trio of estate planning tools: the general power of attorney, the power of attorney for healthcare (including a living will), and the HIPAA waiver.

    Let’s break down why these tools are the unsung heroes of comprehensive estate planning for your parents, and how to bring them up so you can support your parents to get them created or updated, no matter how much or how little money they have in the bank.

    1. General Power of Attorney (POA)

    A general power of attorney (or POA)  grants a person you name (often a family member or trusted friend) the authority to manage your financial affairs if you become unable to do so yourself. From handling bills to making investment decisions, the general POA ensures that your financial matters are handled, whether you’re experiencing a temporary illness or a long-term inability to manage your money, such as in the case of memory problems.

    If your parents have assets that you must be able to access easily in the event of their incapacity, you may decide that a POA for accessing their accounts isn’t sufficient, as it can be difficult to get access to bank accounts even with a POA in place and will require court action. In that case, the best course of action is to ensure that their assets are titled in the name of a trust, with you or someone you trust as the named successor trustee, who can step in and handle financial matters for your parents, without any court involvement, when needed.

    2. Power of Attorney for Healthcare and Living Will

    It’s possible your parents already lean on you for guidance with their healthcare decisions, and it’s equally possible they don’t share details of their healthcare with you at all. No matter which side of the spectrum your parents stand on, the question of what will happen to their healthcare needs if they become seriously ill can feel overwhelming —  and trust me, it’s even more overwhelming during moments of medical crisis.

    Thankfully, a power of attorney for healthcare and living will allow your parents to explain their medical wishes to guide medical providers and family members on what treatments and life-saving measures they’d like to have, even in the toughest of times.

    The power of attorney for healthcare designates someone to make these medical decisions on behalf of your parents if they’re unable to do so. This trusted individual becomes the advocate, ensuring that healthcare choices align with your parents’ values and preferences.

    Meanwhile, the living will – also known as a declaration to physicians – outlines your parents’ wishes regarding life-sustaining treatments in the event they’re unable to communicate. From CPR to artificial hydration, this document provides clarity amidst uncertainty, giving both your parents and their loved ones peace of mind that the decisions being made around their care are what they themselves would want.

    3. HIPAA Waiver

    In the digital age, privacy is paramount – but what happens when privacy becomes a barrier to essential healthcare-related communication? Enter the HIPAA waiver, the ultimate tool for opening communication roadblocks in times of need.

    HIPAA (the Health Insurance Portability and Accountability Act) protects the privacy of individuals’ medical records. While this is crucial for safeguarding sensitive medical information, it can sometimes hinder the flow of communication between healthcare providers and family members, especially for the elderly and those incapacitated by an illness or injury.

    By signing a HIPAA waiver, your parents authorize specific individuals to access their medical information and speak directly to their medical providers, ensuring seamless communication and informed decision-making. This is essential in medical emergencies but is also extremely helpful if your parents need help hearing their doctor or understanding their medical advice.

    How to Bring Up Estate Planning With Your Parents

    The best way to bring up estate planning with your parents is to get your own planning handled first. Then let your parents know that in the process of handling your own planning, your lawyer raised the question of whether you were an agent under anyone else’s power of attorney, or named as a successor trustee in your parents’ trust, or if you’re going to be caring for aging parents at some point.

    If you’ve worked with a lawyer and they didn’t ask you those questions, give us a call and let’s review your plan and your parents’ planning to make sure that everything you’ll need is dialed in. This can all get quite messy very quickly, and now is the time to talk with your parents.

    Why the Urgency?

    You might be thinking, “Why the rush? Can’t we tackle this later?” Here’s the scoop: Life is unpredictable, and procrastination can be a costly gamble. Waiting until a crisis strikes to get these tools in place can lead to a whirlwind of legal and emotional chaos, leaving your parents’ wishes unfulfilled and their affairs in disarray.

    By proactively planning ahead, you’re not just checking items off a to-do list – you’re investing in your parents’ peace of mind and yours.

    Don’t wait for a storm to hit – schedule a 15-minute call today to learn how our unique Life & Legacy Planning process is designed with your family’s well-being in mind, offering personalized guidance and support every step of the way.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • 2 Conversations About Money and Death You Need to Have With Your Parents Right Now

    2 Conversations About Money and Death You Need to Have With Your Parents Right Now

    If you’ve given any thought about estate planning, you probably associate it with preparing for death. But did you know that there are critical reasons (and significant benefits) for planning while you’re still well and alive? That’s why I refer to my services as Life & Legacy Planning. When done right, planning for your assets and your death is something that should start right now through honest, open conversations with your family.

    It starts by talking with your parents, siblings, and children about what you want the future of your family to look like, how you’d like assets managed, and what type of care each family member would want in the event of a debilitating or terminal illness.

    You may have already started a conversation about estate planning with your family. But this week, I dive deeper into the conversations you need to have right now to truly understand your family’s financial picture and plan for the future in the best way.

    Conversation #1: What Exactly Do Your Parents Own?

    Initiating the first conversation involves posing fundamental questions to your parents and the older members of your family: “What do we have? Where is it? How would I access it if you weren’t here to guide me?” 

    The potential risk to your family’s wealth is intricately tied to the costs incurred in the event of a passing. Beyond the visible expenses of funerals, burial or cremation, and end-of-life medical care, there exists a myriad of unseen costs. 

    Unclaimed assets, amounting to approximately $70 billion in various departments across the U.S., often slip through the cracks because family members don’t know where the assets are, how to get them, or that they even exist.

    Because of this, tracking and documenting assets, including crypto assets, before incapacity or death is essential to protecting your family’s wealth when someone dies or becomes incapacitated.

    It may be difficult to bring up this topic with your parents or other family members, but how you approach it with them will make all the difference. The secrecy of asset locations or the fear of appearing greedy may hinder an open discussion between family members, but this can be overcome by building trust between relatives and entire generations.

    For the junior generation, building trust involves understanding the root causes of distrust and stepping into a mature, caring perspective for the greater family good. Similarly, senior generations can nurture trust by taking ownership of past parenting shortcomings and demonstrating faith in the individuals their children have become – after all, if you raised your children with a sense of financial and personal responsibility, you should be able to trust them!

    Navigating these challenges may be daunting, but the rewards of building trust and initiating this crucial conversation are immeasurable. Use the conversation as an opportunity to record the locations and access permissions of family assets. If you aren’t sure how to do this, we can help you create a clear inventory of your assets so nothing is lost when death or illness strike.

    Conversation #2: What Are Their Wishes for Long-Term Care?

    The next conversation you need to have with your parents is about long-term care planning. This conversation extends beyond financial considerations and looks into the emotional intricacies of care, posing questions about who will provide care if your parents become incapacitated or disabled, how it will be administered, and the potential burdens on loved ones.

    While money can be a less vulnerable entry point to this conversation, the core involves the tender question of personal care. Addressing concerns such as, “Who will take care of me? How will I be cared for? Will I be a burden on my loved ones?” brings a level of vulnerability that goes beyond financial considerations.

    Neglecting this conversation can leave crucial decision-making up to the medical system, often resulting in undesirable outcomes and accumulating costs. By engaging in the long-term care conversation, clarity emerges on preferences, funding, and avenues for protection against unforeseen care costs.

    Let Us Guide The Conversation

    If initiating these conversations feels challenging or uncomfortable, we can help. We focus on building personal relationships with our clients and their families, and can help guide you and your family through difficult discussions and tough questions about your family’s assets and wishes.

    It starts with a Life & Legacy Planning Session, where we look at everything you own and everyone you love to identify gaps in your family’s security and make a plan that ensures everything will be cared for the way you want when you die or if you become incapacitated.

    To learn more, schedule a complimentary 15-minute discovery call with us.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

  • What Caregivers Need to Know About Estate Planning for a Loved One With Dementia – Part 1

    What Caregivers Need to Know About Estate Planning for a Loved One With Dementia – Part 1

    Caring for a loved one with dementia is a challenge that millions of families undertake each year. As a caregiver, understanding how a dementia diagnosis affects your loved one’s legal decision-making is crucial to ensuring their wishes are honored and that you’re providing them with the best possible care.

    In this blog, we’ll explore the importance of estate planning, even after a dementia diagnosis, as the best method to ensure the wishes and rights of your loved one are protected.

    Understanding Incapacity

    Dementia is a progressive condition that affects memory, cognition, and daily functioning. As dementia causes your loved one’s cognitive abilities to decline, there may come a time when they’re no longer able to make sound decisions about their finances, healthcare, and overall well-being. 

    When the effects of dementia make it difficult for a person to understand information and make sound decisions, that person is considered to be incapacitated, which means they can no longer legally make healthcare or financial decisions for themselves. This change in their memory and cognition can be emotionally overwhelming for both your loved one and your whole family, and without proper planning, can require court involvement.

    But there’s still some good news. Thoughtful estate planning can ensure that your loved one is cared for by the people they know and trust if they can no longer care for themselves, and even if your loved one has already been diagnosed with dementia, it’s still possible for them to create a legally-binding estate plan during the early stages of the disease.

    Estate Planning In The Early Stages of Dementia

    Every adult should create certain legal documents to protect their rights and wishes, and this is no different for a loved one with a dementia diagnosis. What is important to remember is that in order to create a legal document, you need to have mental capacity – meaning you need to be fully aware of what you’re doing and what the consequences of your choices will be.

    Thankfully, a person doesn’t need to constantly be in a state of capacity to create an estate plan. As long as your loved one has the mental capacity at the moment they sign their estate plan documents, the documents will be valid, even if they regress into a state of incapacity afterward.

    In the early stages of dementia, and ideally long before any health problems surface, your loved one should create (or review and update) the following estate planning documents:

    General Durable Power of Attorney

    A General Durable Power of Attorney (POA) is a legal tool that allows your loved one to appoint someone to make financial and legal decisions on their behalf. Their POA can write checks, pay bills, maintain their home, and manage their financial assets. 

    This document becomes especially significant as dementia progresses. Encourage your loved one to designate a trusted individual as their financial power of attorney while they’re still able to make such decisions. 

    A Revocable Living Trust

    A General Durable Power of Attorney is an important tool, but many financial institutions place constraints on the use of a POA or don’t acknowledge their authority at all. To make sure your loved one has complete protection of their financial wishes, encourage them to establish a revocable living trust and move their assets into the name of the trust. Creating a trust document alone isn’t sufficient. Assets must be retitled, and beneficiary designations updated to ensure all assets are covered by the trust, and that the named successor trustee can step in with ease, when necessary.

    As part of creating a trust, your loved one will name the person they want to manage their assets when they’re no longer able to do so. This person is called the trustee or successor trustee. The trustee and power of attorney are often the same person, but not always. 

    Determination of who should serve in what role, and at what point your loved one should give up control over their financial assets, is part of what we counsel our clients to decide. If you have any uncertainty whatsoever, please call us to discuss. It’s far better to get the right tools in place, and the right people named, early than it is to wait until it’s too late. Once it’s too late, it’s really too late, and your family could be stuck with a court process as the only path.

    By having these two estate planning tools in place and the support of our proactive guidance, you can rest assured that the people your loved one knows and loves will be able to manage their assets for them as their dementia progresses. One of the best things we’ve experienced about part of this process it that the people who have taken care of all of this before they begin to experience dementia are able to relax into a phase of life that can often be full of anxiety because they know it’s been handled.

    Power of Attorney for Healthcare

    Similar to a General Durable POA, a Power of Attorney for Healthcare (HPOA) appoints someone to make medical decisions on behalf of your loved one when they’re unable to do so for themselves. Discussing and establishing a healthcare power of attorney early on allows your loved one to express their medical preferences and ensures their wishes are honored. 

    Their power of attorney for healthcare should also include a declaration to physicians, also called a living will, that outlines their desires regarding medical treatment, life support, and end-of-life care. Creating a declaration to physicians and discussing their wishes with you ensures that their preferences regarding life-sustaining treatment, resuscitation, and other medical interventions are documented and respected.

    The economic burden of caring for a loved one with Alzheimer’s or advanced dementia can be significant – between $2,500 to more than $10,000/month isn’t unusual. The time to discuss these costs, and what you or your loved one want is right now, before dementia or Alzheimer’s makes it impossible to have any choice.

    Plan As Early As Possible

    One of the most crucial steps in preparing for the challenges of dementia is to help your loved one complete their estate planning while they still have the capacity to do so. Waiting until the later stages of the disease can limit their options and increase stress for everyone involved. 

    By addressing legal matters early on, you can ensure that your loved one’s wishes are respected, and their affairs are managed in the way they intended, by the people they trust, without the need for court involvement. 

    If you have a loved one with more advanced dementia, check back here next week as we explore late-stage estate planning options and methods to avoid family and legal conflict over your loved one’s care. 

    To learn more, schedule a complimentary 15-minute call with our office.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Transition to Adulthood: What Happens Legally When My Child Turns 18?

    Transition to Adulthood: What Happens Legally When My Child Turns 18?

    Soon after the challenges of puberty and the excitement of high school, an even larger milestone looms: the 18thbirthday. It marks your child’s transition from childhood to adulthood, and with it new responsibilities and rights. From a legal standpoint, this milestone also brings significant changes that every parent should be aware of. 

    In the eyes of the law, an individual is considered a legal adult at the age of 18. This means that your child gains certain rights and privileges, including the ability to enter into contracts, vote, buy property, and make medical decisions for themselves. While this newfound independence is a crucial part of growing up, it can also pose challenges for parents, especially when adult children need their parents’ help or need someone to make decisions on their behalf.

    In this blog post, we’ll explore what happens legally when your child turns 18, what it means for your ability to make legal, financial, and healthcare decisions on their behalf, and what tools you’ll need for a smooth transition to adulthood.

    How The Law Changes Your Role As A Parent

    On the day your child turns 18, your ability to make legal, financial, and healthcare decisions for them essentially disappears in a blink. To give you a sense of how impactful this can be, if your now 18-year old or older child is hospitalized and unable to communicate their wishes, healthcare providers won’t even legally be able to share your child’s medical information with you. Similarly, financial institutions won’t permit you to access your child’s accounts or make financial decisions on their behalf without their consent – or unless you’re a co-owner of their accounts.

    This shift in decision-making authority can feel unsettling and can be particularly challenging if your child is still financially dependent on you, is in a medical emergency, or requires assistance in managing their affairs due to a disability. Thankfully, there are legal tools that can help parents and young adults navigate these new challenges.

    Have Their Back With Powers of Attorney

    A power of attorney is a legal tool that allows your child to designate the person they choose to make legal or healthcare decisions on their behalf. There are two common types of powers of attorney that can be valuable in this situation: a general durable power of attorney and a power of attorney for healthcare.  

    A general durable power of attorney allows your child to appoint someone to manage their financial affairs in the event they become incapacitated or if they just want help managing their finances. With this in place, you can continue to assist your child with financial matters, even after they turn 18.

    The important thing to remember however is that not every financial institution will honor a power of attorney, so while every adult should have this legal tool, it’s important to check with your specific institution and possibly set up your child’s accounts in a different way to ensure you have immediate access to them if needed. We’d be happy to discuss which options are best for you and your adult child.

    A power of attorney for healthcare grants someone the authority to make medical decisions on your child’s behalf if they’re unable to do so, such as medication and treatment options, nutritional needs, and life-support measures. This is crucial to ensure that your child receives the care they want, even if they cannot communicate their preferences.

    Only your child can put these measures in place, but encouraging them to create these legal documents is a proactive step in maintaining your ability to assist them when they need it most. 

    Stay Informed With a HIPAA Waiver

    The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that protects the privacy of individuals’ medical records. Once your child turns 18, their medical information is protected under HIPAA, and healthcare providers are prohibited from disclosing it to anyone without the patient’s explicit consent – parents and family members included.

    To maintain access to your child’s medical information, they must complete a HIPAA waiver. This document permits healthcare providers to share medical information with individuals specified in the waiver, such as parents or trusted family members. 

    Having a HIPAA waiver in place can be invaluable during medical emergencies when swift access to medical records is critical. It can also be a valuable tool for young adults who may simply appreciate a parent’s ability to speak to their doctors when they aren’t feeling well or are overwhelmed with the demands of work, college, or both.

    Support Their Journey Into Adulthood Through Open Communication

    Transitioning to adulthood is a significant step for both parents and children. While legal documents such as powers of attorney and a HIPAA waiver are essential, it’s equally important to have open and honest conversations with your child about their wishes and the responsibilities that come with adulthood.

    Discuss their healthcare preferences, financial decisions, and their expectations from you as a parent. Encourage them to consider creating these legal documents not only for your peace of mind but also for their own protection.

    We invite you to reach out to our firm at any time, but if you have a teen who is approaching adulthood, reach out to us right away to ensure your child has the legal support and protection they need no matter what adulthood brings. 

    If you aren’t sure how to talk with your adult child about these legal tools, we can help you start the conversation from a place of love, compassion, and collaboration.

    Schedule a complimentary call today to get started.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Flu Season Fundamentals: How to Keep Seniors Safe This Fall

    Flu Season Fundamentals: How to Keep Seniors Safe This Fall

    The fall season is a beautiful time of year, but it also marks the beginning of flu season, which can pose a serious threat to your elderly loved ones. Fortunately, there are several steps you can take to ensure their well-being during the colder days ahead, including making sure you’re able to step in and help them with their medical and financial needs.

    Keep reading to find out how.

    1 | Create a Power of Attorney For Healthcare

    A power of attorney (POA) for healthcare (sometimes called a medical power of attorney) is a legal document that authorizes someone you trust to make medical decisions for you if you’re unable to do so yourself. If your senior loved one still needs to get a POA for healthcare in place, now is the time to create one. 

    If they do have a POA for healthcare, but it’s been a while since they created it, it’s time to review it to ensure it accurately reflects their current medical wishes and appoints a trusted individual as their agent for making healthcare decisions on their behalf. 

    Having a POA for healthcare in place for your senior can provide peace of mind knowing that you or another trusted person can immediately step in and care for them during times of illness or incapacity, such as a severe case of the flu or pneumonia. A POA for healthcare can also be used if you need to make a medical decision for your loved one during surgery or if they develop long-term memory problems. 

    Important: ensure that the POA for healthcare for your senior loved one (or yourself) includes “living will” provisions either included in the POA or in a separate document, stating not just WHO should make decisions for you or your loved one, but how you would want those decisions to be made.

    2 | Sign a HIPAA Waiver

    Health Insurance Portability and Accountability Act (HIPAA) regulations are in place to protect an individual’s medical information. However, during flu season, it’s important to have the ability to communicate with your senior’s doctors to stay informed about their health.

    A signed HIPAA waiver allows healthcare providers to share medical information with the individuals they’ve authorized to receive it. This can be crucial for keeping family members and caregivers in the loop about your senior loved one’s health status and treatment plans. 

    Whether your senior is feeling too ill to call their provider or needs help understanding their doctor’s instructions, a HIPAA waiver allows you to speak directly to your loved one’s provider to make caring for them as quick and easy as possible.

    3 | Schedule a Check-Up

    Before flu season is in full swing, it’s wise to schedule a comprehensive check-up for your senior loved ones with their healthcare provider. A check-up allows for a thorough assessment of their health, identification of any potential risks, and ensures that chronic conditions are being properly managed.

    This proactive approach can help catch and manage new health issues early on and prevent complications down the line. Plus, having a check-up now will hopefully let your senior avoid the need to visit a crowded clinic waiting room during peak flu season because a health issue wasn’t detected sooner. 

    Don’t forget to bring a copy of your senior’s power of attorney for healthcare and their HIPAA waiver to their provider’s office so they can scan it into their patient file to have it on hand and ready if needed.

    4 | Create a General Durable Power of Attorney

    To avoid exposure to the flu, colds, and rainy weather fall brings, many seniors appreciate the ability to stay closer to home. You can help keep them safe and make sure their daily needs are taken care of using a general durable power of attorney.  

    This legal tool lets your senior appoint people they trust to take care of non-medical decisions and tasks, like going to the bank, paying bills, or making purchases.

    Consider setting up or updating a general durable power of attorney to grant this authority when needed. This legal tool ensures that someone is empowered to manage financial and other non-medical matters on behalf of your senior loved ones during flu season or any other time they might need assistance.

    Just note that not all banks and financial institutions honor a general durable power of attorney, so contact your bank to verify if they do and then contact us right away to set up your loved one’s affairs in a way to ensure you can instantly step in to help with their banking needs regardless of their general durable power of attorney.

    Proactively Keeping Your Loved Ones Safe and Healthy

    Caring for your seniors’ well-being goes beyond routine medical check-ups and yearly physicals. When flu season rolls around, it’s important to take a proactive approach to ensure your senior loved ones can count on you for support in managing their needs. By doing so, you’ll help them access the best possible care that aligns with their wishes.

    By following these fundamental steps you’ll help ensure your loved ones stay safe, healthy, and cared for during the fall season and the new year ahead. 

    To make sure your senior has the legal tools they need to stay safe and healthy this year, schedule a complimentary 15-minute call with my office. We’ll be happy to share how we support our clients from a place of service and how we can make sure your entire family is well cared for now and in the future.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Special Needs Planning in 5 Steps – Part 1

    Special Needs Planning in 5 Steps – Part 1

    If you have a child with special needs, you know they’ll need extra planning to make sure they’re well cared for in the future. But special needs planning can easily end up on the back-burner when you’re juggling multiple therapy appointments, IEP meetings, and the many other challenges that can happen when supporting a child with special needs. You may also find that your biggest roadblock to completing special needs planning is your own fear of disability and death.

    One way through these fears is to take the process one step at a time and view it as a plan that benefits your entire family today, not just as a plan for what happens when you’re no longer around (though a good plan will do that too!). 

    To get started, let’s break special needs planning down into five steps:

    1 | Learn How Special Needs Planning Can Benefit Your Family

    Special needs planning means creating a plan for continuous, consistent support for individuals with special needs so they can live their best lives while maintaining a tailored balance of autonomy and protection. To achieve these goals, most families need the support of public benefits in addition to the private resources of the family.

    Public benefits like Supplemental Security Income (SSI) and Medi-Cal contribute essential support for individuals who meet Social Security Administration criteria for being “disabled.” While public benefits are meager in some respects – few can survive solely on an SSI maximum benefit of $941 per month, for example – Medi-Cal coverage can provide robust support beyond ordinary health insurance. This can include job exploration and coaching, community integration and day service programs, and even residential care.

    However, an individual with a disability must meet certain low-income requirements to qualify for these programs, and any change in the person’s income may result in the loss or disruption of these benefits.

    The foundational fact of special needs planning is this: Gifts or inheritances given directly to individuals with disabilities disrupt the most essential public benefits like SSI, Medi-Cal, and Housing and Urban Development (HUD) subsidies. 

    Even paying rent for an adult disabled individual or allowing them to live with you rent-free can decrease SSI benefits unless handled properly. Thankfully, special needs planning tools like special needs trusts (also called “supplemental needs trusts” or “SNTs”) and ABLE accounts make it possible for families and individuals with disabilities to maximize these public benefits to enhance their quality of life while preserving family assets.

    If this sounds overwhelming, don’t worry. We can help you create a special needs plan that balances the support your child needs with the needs of your entire family through our heart-centered, counseling-based approach to planning. 

    2 | Identify The Best Level of Support for Your Child

    We will help you envision your child with special needs living their best life, first with your support, and then when it’s no longer possible for you to care for them due to death or disability.  What support do they need now and what support do you imagine they’ll need in the future to have the best possible life?

    With a clear vision, we can help you to map out the best plan, ensuring that plan is properly funded, and that you’ve properly incentivized the people you want caring for your child to do so.

    As your child approaches 18 years of age, this step will also involve exploring whether a conservatorship or a supported decision-making process will best serve your child. In general, in a conservatorship, a court removes certain rights and responsibilities of the individual and transfers them to a conservator, who then is responsible to the court for exercising those duties and powers in the best interests of the individual with special needs.

    By contrast, in supported decision-making, individuals with special needs choose and appoint agents to serve under powers of attorney for healthcare and finances. The choice between these options will depend on the individual’s capacity under state law and on their vulnerability to exploitation.

    Parents of children with special needs will also need to identify other family members, friends, and agencies who can provide support alongside themselves. Even if a parent meets all the needs of an individual with special needs alone, this can result in an abrupt transition to a new caregiver when that parent has an accident or medical event, or when that parent dies. 

    Most individuals with special needs struggle with such abrupt changes, and we believe these individuals are better served by a broader care team that will one day create a more gradual transition in caregivers.

    Helping You Start Your Special Needs Planning Journey

    Whether you recently received a diagnosis that your child has special needs, or you’ve been caring for an individual with special needs for a long time, the idea of formally creating a special needs plan can feel overwhelming. But no matter what stage your family is in, it’s never too late or too early to start special needs planning.

    We understand that at times seeking a proper diagnosis, therapy, and educational support must take priority for your loved one with special needs. To some extent, we must secure the present before we look to secure the future. But at the same time, the financial and social results of delaying your special needs planning can have profound consequences. That’s why the future of your loved one with special needs can best be secured through planning sooner rather than later.

    When you’re ready to take the first step toward special needs planning or revisit planning you’ve already done that may not feel complete, give us a call. We’d be honored to help your family build and implement a plan that will serve your loved one with special needs and your entire family for years to come.

    And don’t forget to check back later this month for part two of this series.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

  • From ‘I Do’ to ‘What If’: Estate Planning Must-Do’s for Newlyweds – Part 1

    From ‘I Do’ to ‘What If’: Estate Planning Must-Do’s for Newlyweds – Part 1

    Wedding season is winding down, and if you’re a newlywed or are planning to tie the knot soon, it’s time to make your first legal move as a married couple – creating an estate plan. With all the joy and happiness a new marriage brings, planning for your potential incapacity and future death may feel out of place, but creating your estate plan as part of your post-nuptial to-do list is the greatest gift you can give your new spouse.

    A lot changes once your marriage is official, but how you and your spouse want your finances to be managed or how you would want medical decisions to be made for each other aren’t automatically documented when you say “I do.”  

    If you become incapacitated for any reason before your estate plan is complete, your spouse wouldn’t have the legal authority to make medical decisions for you even though you’re married. Your loved one would also have no access to your bank accounts, and in the event of your death, could even be put into a position of losing the home and possessions that you owned together.

    Instead, your choices for yourself, each other, and your life together need to be properly documented to ensure your wishes are respected and honored no matter what the future holds.

    Here are 6 essential estate planning tools you need to put in place right now. 

    01 | Updated Beneficiary Designations

    One of the easiest estate planning tasks that newlyweds often overlook is updating their beneficiary designations. Some of your most valuable assets, such as life insurance policies, 401(k)s, and IRAs, don’t transfer via a will or trust. Instead, they have beneficiary designations that allow you to name the person (or persons) you’d like to inherit the asset upon your death.

    While every couple should consider creating and using a trust to transfer retirement (only with the guidance of a lawyer, as this can be complex) or life insurance distributions, you shouldn’t wait until your trust is created or your estate plan is complete to update your beneficiary designations. Until your estate plan is finished, if you would want your spouse to receive your retirement account benefits or life insurance at your death, you need to proactively name your spouse as your primary beneficiary, and then name at least one contingent, or alternate, beneficiary in case your spouse dies with or before you. 

    If you have minor children at home, remember to never name a minor child as a beneficiary of your life insurance or retirement accounts, even as a contingent beneficiary. If a minor is listed as the beneficiary, the assets would be distributed to a court-appointed custodian, who will be in charge of managing the funds until the child reaches the age of eighteen, at which point the funds would be distributed to them outright, to do with what they want. Instead, you can set up a trust and name the trust to receive your life insurance or retirement account benefits.

    If you have children or you plan to have children in the future, you should set up a trust to receive those assets instead so they can be properly managed for your child’s well-being while keeping the funds safe from any future overspending, debt, or legal trouble your child may have. Creating a trust to hold and distribute assets to your children is even more important if your marriage creates a blended family, as it will ensure your children inherit from you in the way you want and avoid conflict between step-siblings.

    If you aren’t sure how to update your beneficiary designations in the best way, contact my office today at (650) 600-1735 for a Family Wealth Planning Session. During the session, I’ll look at exactly what you own and guide you on exactly how your beneficiary designations should be filled out now and after your other estate planning tools like a will or trust are created. 

    02 | A Durable Financial Power of Attorney

    Estate planning isn’t just about planning for what happens when you die. It’s equally about planning for your life and the unexpected events life throws your way like a serious illness or accident that may leave you incapacitated. 

    If you become incapacitated and haven’t added your spouse as an owner on your bank accounts or legally granted them permission to manage your financial and legal interests, they may have to petition the court to be appointed as your guardian or conservator to handle these affairs for you. This is surprising to many newlyweds and long-time married couples who assume their spouse has automatic access to all of their assets at any time. Sadly, this isn’t the case, and without giving written permission to your spouse through a durable financial power of attorney, that authority could be given to someone else by the court, even a stranger or a family member you would never want to have control over your financial life. 

    A durable financial power of attorney would grant your spouse the immediate authority to manage your financial, legal, and business affairs in the event of your incapacity, and give them a broad range of powers to handle things like paying your bills and taxes, collecting government benefits for your care, selling your home or car, and managing your banking and investing.

    Creating a durable financial power of attorney is especially important if you don’t live in one of the community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In every other state, the law doesn’t assume your spouse has any ownership of property in your name alone, which means your spouse could be forced to move out of your shared home or give up your shared property with little notice and little legal recourse.

    03 | A Power of Attorney for Health Care and Living Will

    Where a durable financial power of attorney gives your spouse the authority to manage your financial and legal matters, a power of attorney for health care lets them make medical decisions for you if you can’t communicate them for yourself. 

    For example, a power of attorney for health care would let your spouse make decisions about your medical treatment if you’re in a serious car accident or hospitalized with a debilitating illness. If you don’t name your spouse as your power of attorney for health care and you do become incapacitated, your spouse would have to petition the court to become your legal guardian before they can make any major medical decisions on your behalf. 

    Even though your spouse is generally the court’s first choice for your legal guardian, relatives may also petition the court to be appointed as your guardian, which can create severe conflict and financial strain in your family. Creating a power of attorney for health care that names your spouse as your decision-maker far in advance will spare your spouse the time, money, and stress involved with a court guardianship process.

    Within or attached to your power of attorney for health care should be your living will. A living will explains to medical providers and to your decision-maker how you would want your medical care handled, particularly at the end of life. Because a power of attorney for health care and a living will go hand-in-hand, they’re often combined into a single document. 

    In your living will, you can explain your wishes for life support, whether you would want hydration and nutrition supplied intravenously, and even what kind of food you want and who can visit you in the hospital. It’s always a relief to your spouse to have instructions and wishes written out by you in advance that they can lean on, rather than having the added stress and trauma of trying to guess what your wishes would be in these situations.

    Through Sickness and Health, We Can Help

    Between moving in together, establishing a new routine, and combining your finances, estate planning can seem like a low priority for newlyweds. But in reality, estate planning shortly after getting married is one of the smartest decisions you can make for your marriage. Creating your plan shortly after your wedding is also the most convenient time to plan since you will inevitably be going to the bank and contacting your financial institutions to update your new marital status. 

    To make sure your new spouse has immediate access to your assets and that you can always care for them in the way they would want, give me a call at (650) 600-1735. It would be my honor to help you and your spouse plan for your new life and your future through my unique, heart-centered process. 

    If talking about finances and death shortly after your wedding feels heavy, don’t worry. I’ll guide the discussion in a way that feels casual, natural, and helps facilitate open communication between you and your new spouse.

    Read Part Two!

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Vacation Ready: Essential Legal Preparations for a Worry-Free Getaway

    Vacation Ready: Essential Legal Preparations for a Worry-Free Getaway

    Vacations are a time to relax, unwind, and create beautiful memories with your loved ones. But before you set off on your adventure, it’s essential to ensure that your legal affairs are in order so you can fully relax during your travels. 

    Can’t imagine doing one more thing before you take some much-needed time away? 

    Don’t worry! I’m here to guide you through these important tasks so you can enjoy your vacation worry-free. Plus, these steps only take a little time to complete and can provide you with peace of mind knowing that you have made proper arrangements if the unexpected happens to you or your family while you’re away.

    Let’s dive in! (No pool puns intended!)

    1.     Create Powers of Attorney

    Whether you’re traveling overseas or just a few hours away, it’s crucial to have powers of attorney in place for both health care and financial matters before you leave. 

    A healthcare power of attorney designates someone you trust to make medical decisions on your behalf if you become incapacitated during your vacation. While no one plans to become incapacitated, a slip on the diving board, an injury while boating, or a parasite caught from local cuisine can happen.

    Similarly, a financial power of attorney empowers a trusted individual to manage your financial affairs for you. With a financial power of attorney, you can give someone the authority to manage your investments or pay your bills away while you’re gone, or just have it as a safety net in case you become incapacitated or can’t be reached while traveling. 

    By having these documents prepared ahead of time, you can ensure that no matter what hiccups you run into on your travels, your wishes for your health will be respected and your financial affairs will be handled according to your instructions, even when you’re away.

    2.    Nominate Permanent Legal Guardians for Your Kids

    As a parent, naming a permanent guardian for your children is one of the most important decisions you can make. While it’s a difficult topic to consider, designating a permanent legal guardian ensures that your children will be cared for by someone you trust if the unexpected happens while you’re on vacation. 

    It’s a good idea to take a little time to choose someone who shares your values, loves your children, and is willing to take on the responsibility of raising them. However, anyone you trust to raise your kids is a better choice than leaving the decision up to a judge who doesn’t know you or your family. 

    By documenting your chosen guardian, you make sure your children will be cared for by someone who loves them and knows them if the unthinkable happens to you, and you can always update your choice at any time in the future as your children and their relationships change over time.

    3.    Designate Short-Term Guardians for Your Kids

    In addition to naming a permanent guardian, it’s equally crucial to designate short-term legal guardians for your children. Short-term guardians step in when the permanent guardian lives far away, or in case of a short-term, immediate emergency. 

    You can give multiple people the authority to be your child’s short-term guardian, including relatives, neighbors, or nannies. When planning a vacation, it’s a good idea to name any adults who your child will be staying with while traveling with you or staying home.  

    For example, if your child is spending the week at their grandparents’ house, you should name their grandparents as short-term guardians and give them medical power of attorney for your minor child. If your child is traveling with you, naming any adult travel companions as short-term guardians and giving them medical powers of attorney is a wise choice in case a guardian or medical POA is needed for your child while on your trip.

    Discuss this arrangement with the individuals you’ve chosen and make sure they’re aware of their roles and responsibilities. By establishing short-term guardians and medical POAs, you can ensure that your children are well-cared for in the event of an emergency.

    4.    Tell the People You Trust About Your Plans

    Last but not least, make sure that the people you trust know about your travel plans and the preparations you’ve made, including where you’ll be staying and how to get in contact with you. 

    Let them know about any legal documents you’ve put in place, and how to access them if needed. Share this information with your chosen guardians, family members, and close friends. By keeping everyone in the loop, you can ensure that your wishes are known and your loved ones can act swiftly and effectively in case of an emergency. 

    You should also provide your loved ones with my contact information in case they need copies of your powers of attorney or kids’ guardianship documents or need them delivered digitally.

    Estate Planning for The Life (And Vacation) You Deserve

    As you pack your bags and prepare for your vacation, don’t overlook the importance of handling your legal affairs. Taking the time to create powers of attorney, permanent and short-term legal guardians for your children, and communicating your plans to trusted individuals can provide you with peace of mind and save your family incredible stress if there’s an emergency while you’re away.

    To ensure that these documents are prepared correctly and in accordance with your state’s laws, I encourage you to contact me at (650) 600-1735. I start by guiding all of my clients through a unique process I call the Family Wealth Planning Session. During the session, I get to know you and your family on a personal level and review exactly what you own and who you love to make sure everything and everyone is protected and cared for in the best way possible when you pass away or if you become incapacitated. 

    If we find that things wouldn’t go the way you wanted if something happened to you, I can help you create a custom estate plan that leaves no rock unturned.

    Don’t let the joy of vacation be overshadowed by the “what if’s.” Contact me today at (650) 600-1735 for a free 15-minute call to learn more. 

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Obtaining a Power of Attorney for Elderly Parents

    Obtaining a Power of Attorney for Elderly Parents

    Making important decisions for aging parents can be a challenging task, but power of attorney (POA) can provide peace of mind and clarity in times of need. POA enables individuals to make crucial decisions on behalf of their parents, such as managing their finances or making medical decisions, when they’re unable to do so themselves due to age or illness.

    While it may be difficult to approach this topic with your parents, having these discussions early on can help ensure that you follow their wishes if their health changes over time. Starting the conversation with empathy and understanding can make all the difference.

    In this article, we’ll explore how to obtain power of attorney for elderly parents and provide helpful tips on how to approach these discussions with warmth and care. After all, our ultimate goal is to ensure that your aging parents receive the best possible care and support.

    What’s a POA? 

    According to the American Bar Association, POAs are legal documents, which vary between states, that provide a person, or several individuals, with the power to perform actions on behalf of someone else. The individual with a POA is an agent, whereas the principal refers to the person who is having their affairs managed by other individuals. Agents can only perform actions outlined within the POA document. Moreover, if someone agrees to a POA, they can still make their own decisions, providing they can still do so coherently. This means the agent cannot make exclusive decisions on behalf of the principal.

    POA Types

    Below is more information regarding the different POA types:

    • General: For this POA, the agent can manage the principal’s affairs for a specific period, and the principal may revoke this at any point. These automatically finish if the principal becomes incapacitated and are common when an individual can still see to their affairs but prefers that someone else does this for them.
    • Durable: These POAs continue after the principal becomes incapacitated and are more common when someone cannot manage their affairs. They can conclude in many ways, including once the principal dies or if the agent completes the conditions within the POA document.
    • Springing: The terms in this POA don’t take effect unless the principal becomes incapacitated. For this POA, the principal remains in control of their affairs until they lose capacity.
    • Medical: These POAs allow agents to make the principal’s medical decisions. They last until the principal is competent and might also expire after a certain period mentioned in the document.
    • Limited: These limit the agent’s ability to make decisions regarding certain tasks as outlined in the POA document, such as paying bills or selling a house. Limited POAs are usually temporary and end when the principal loses capacity.

    Why and When to Consider a POA For Your Aging Parents

    Here are the common reasons why individuals may consider getting a POA:

    • Finance issues: POAs enable individuals to continue paying their parents’ bills and manage their finances when their parents struggle to fulfill these obligations.
    • Serious illness: Having a POA for an elderly parent can be helpful as it allows them to focus on getting better and reduces the stresses associated with managing their affairs.
    • Memory issues: Individuals commonly obtain a POA to manage their parents’ affairs if they develop dementia. It’s helpful to note that it’s necessary to obtain the POA before the parent loses their capacity.
    • Surgery: When an elderly parent is undergoing surgery, it might be a good idea to obtain a POA so individuals can make decisions on their parents’ behalf and manage their affairs until they’ve fully recovered.
    • Frequent travel: Some elderly parents like to travel frequently, so POAs can be useful here for ensuring their affairs remain in order while they’re away.

    How Do I Choose a POA For My Parents?

    When considering a POA for your aging parents, there are several things to keep in mind. The most crucial factor is trust – you must choose someone you can rely on to make decisions in your parents’ best interests and follow their wishes.

    While family members are often chosen for this role, it’s important to consider whether they’re the best fit. If you think an objective outsider may be better suited to the task, such as a lawyer, accountant, or financial institution, this is also an option, although it may come with additional costs.

    Before agreeing to be a POA for your parents, it’s essential to have a thorough discussion with them to understand their needs and preferences. Different types of POAs have different levels of responsibility, and it’s important to clarify what your parents expect from you. If your parents need help with medical decisions, for example, this will require more involvement than if they only need assistance with financial decisions.

    Finally, it’s essential to understand the financial implications of becoming a POA. You’ll need to keep your finances separate from your parents’ and be prepared to justify any decisions you make to avoid legal issues.

    Choosing a POA for your aging parents is a significant decision, and it’s essential to approach it with care and sensitivity. By having open and honest discussions and seeking objective advice, you can ensure that your parents receive the best possible care and support.

    Contact Us To Learn More About Obtaining A Power Of Attorney For Your Elderly Parents

    If you have elderly parents, it’s understandable that discussing power of attorney (POA) may be a sensitive topic. However, starting these discussions as early as possible can bring peace of mind and clarity in the future.

    When approaching these conversations, it’s important to consider your parents’ health and well-being. Let them know that you’re there to support them and that you will only use the POA powers if it’s absolutely necessary. It’s a promise that can help reassure your parents that you have their best interests at heart.

    Additionally, it may be helpful to seek the guidance of an experienced estate planning attorney. They can provide objective advice and alleviate any concerns that your parents may have. We understand that this is a difficult process, but we’re here to help. Please feel free to contact us today to learn more about how we can assist you and your family.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Your Rights as the Parent of a Young Adult – What You Need to Know When a Medical Crisis Hits

    Your Rights as the Parent of a Young Adult – What You Need to Know When a Medical Crisis Hits

    As a parent, you’re quite accustomed to managing your children’s legal and medical affairs, as circumstances require. If your child requires urgent medical attention while away from you, a simple phone call authorizing care can do the trick. But what happens when those “children” turn 18, now adults in the eyes of the law, and need urgent medical attention far from home?

    The simple fact is that the day your child turns 18, he or she becomes an adult and has the legal rights of an adult. This means that you lose your prior held rights to make medical and financial decisions for your child unless your child executes legal documents giving you those rights back. Without the proper legal documents, accessing medical information and even being informed about your adult child’s medical condition can be difficult and in some cases, impossible.

    When sending kids off to college, it’s crucial to consider the legal implications of an accident or medical emergency on your ability to stay informed and participate in important decision-making for your young adult child. Medical professionals are responsible for following the Privacy Rule of the Health Insurance Portability and Accountability Act (HIPAA), which ensures medical privacy protection for all adults. Once your child turns 18, they are (from a legal perspective) no more attached to you than a stranger, making communication about medical issues is tricky if your child is incapacitated and not able to grant permission on their own.

    In most states, these three legal documents can make all the difference when a medical crisis strikes and your young adult child is far from home. When utilized together, they can ensure a parent or trusted adult be kept in the loop about care and treatment when a child over the age of 18 experiences a medical event while they’re away at college, traveling, or living far from home. As with most legal documents, the law varies from state to state, so be sure to seek out the counsel with us to determine which forms suit your situation best.

    HIPAA

    Essentially like a permission slip, this authorization allows your adult child to specify who is allowed access to their personal medical information. Specific information can be specifically withheld, such as drug use, sexual activity, and mental health issues so that additional privacy can be protected if desired.

    Medical Power Of Attorney

    Designates an agent to make medical decisions for the young adult. This could be you, as the parent, or another trusted adult. Each state has different laws governing medical power of attorney, requiring different forms. Be sure to check with us to be sure you’re following the laws of your state and the state where your child resides.

    Durable Financial Power Of Attorney

    Allows the parent or another trusted adult to take care of personal business if the adult child cannot do so. This form would allow the parent to take care of such important tasks such as signing tax returns, paying bills, and accessing bank accounts for the incapacitated adult child. A durable power of attorney is powerful and gives broad access to sensitive financial and legal decision-making and should only be given to a trusted relative or friend.

    The milestones come quickly once children graduate high school and enter the big, wide world away from home. As your family navigates these significant rites of passage, consult us to determine the steps necessary to ensure excellent communication and peace of mind when a medical emergency arises. Consider including your young adult children in the process. We’re here to help your family establish the legal and medical protections needed to live your desired lives. Contact us today to schedule your Family Wealth Planning Session for your family and get the right documents in place for your kids.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

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