Estate Planning In Second Marriage Situations

        

            Estate planning is critical in second marriage situations. Meeting or knowing people who are on their second or third marriage isn’t exactly uncommon nowadays. Many of us also know that remarriages entail a lot of adjustments and sometimes complications, especially when there are kids involved. Simply put, blending of two families together can be pretty challenging.

            With all the challenges and concerns on the surface of every remarriage, estate planning is often forgotten or set aside by many couples. But with the merging of two families, concerns and challenges about financial, legal and estate planning multiply.

            The following are some of the issues you should take note of, as explained by Mark Eghrari, and elder law attorney in Long Island, in his article Second Marriage And Estate Planning: 5 Things You May Not Have Considered:

Income and assets that are combined in second marriages may be at risk, if one of you still has financial issues and entanglements with a former spouse. Creditors may come for you to hold you liable of an old debt, as they “are not always bound by divorce settlements,” Mark said. To avoid complications, you may opt to keep you and your spouse’s money separate.

*If you are considering creating a joint trust, you may want to read one of my old blogs: Should I Create a Joint Trust? (Should We Have One Trust or Two?)

You also should understand the status of your properties after remarrying. Mark explains that in a community property state, those you receive before the marriage remain yours, while those you acquire after become co-owned by you and your spouse. On the other hand, “ownership is controlled by titles, registrations, or ownership documents” in a common law state. To help you decide on matters regarding these properties and in connection with your estate plan, you should see professional advice from a lawyer.

A Trust will sufficiently protect assets in case one of the spouses marries again after the other’s death. Protection for the separate assets of spouse’s children may be set up, as preferred.

Complications may happen if a Trust isn’t set up with specific wishes regarding the inheritance of the children. Do the children of the first spouse need to wait for the second spouse to die before they get their inheritance? Does the new spouse get to decide who will inherit the joint assets? All these should be explicitly stated in the Trust, to avoid unintentionally disinheriting your children from your previous marriage.

Whether the surviving spouse be allowed to stay in the home or not is a concern for blended families. What resolves this is again, putting the home in a Trust. According to Mark, many couples do that “for the benefit of the surviving spouse.”

With the different new adjustments in every remarriage, always consider to revise your estate plan (if you already have one) or seek legal advice to set it up. Remember that it isn’t an easy process—you may experience pitfalls in setting up your estate plan in a second marriage—but it is necessary step that no couples of remarriages should overlook.

           

How To Name Legal Guardians For Kids

For parents, naming a legal guardian for your children can be the hardest estate planning decision to make. The guardian is the person that will raise your child(ren) if mom and dad both pass away or are incapacitated.

In her article “Choosing Legal Guardians for Your Children? A Mother’s Thoughts,” Maran Hanley says that many of the families she interviewed were having trouble selecting a guardian due to emotional reasons, including “guilt, fear, and the unknown.” 

Maran points out that naming a guardian is often a sticking point for parents. While some people are fortunate enough to have a good number of family members or friends to choose from, other people do not have that advantage.

According to her,

"One young family struggled selecting a guardian because neither parent had a sibling qualified for the responsibility of raising their children: one with serious medical struggles, and another with Autism Spectrum Disorder."

But guess what? That family still chose a legal guardian. They chose the kids’ maternal grandmother, “due to her familiarity with and love for the children,” as stated in the article.

Here we see the importance of deciding to select a legal guardian despite a setback. If you have a challenge of this kind also, you should not let that stop you from naming a guardian. This is because if you do not name a guardian for your child, the court will have to make a decision for you...and the judge does not know anything about who you may or may not have wanted to choose!

What about naming a guardian that has their own children? The article mentioned that some parents worry that the guardian may “prioritize a natural loyalty to their own kids” or take a different parenting style with your children (more strict or more lax). 

Yet as Maran said so herself,

And you, as a parent, have to make that choice.

Maran disclosed how her family went about their selection process for a guardian:

1. My husband and I came to a consensus about our most important family values.
2. We listed all possible candidates from the pool of family and friends.
3. We discussed each candidate relative to our family values and made the best decision we could with the information available and the beliefs we hold important.

She also shared other ideas that have helped other couples: spreadsheets, lists, discussions, surveys, understanding emotional block, and connecting with friends, among others. You can follow what Maran and her husband did, try these others things and find what works for you.

When you’ve tried everything and still have a very hard time deciding, let me tell you what I said a few years back on my blog “What To Do If You Can't Decide Who To Name As Guardians For Your Kids”:

If you don't decide, a Judge will.

Even your worst choice would be better than that, right?

So go on and make that choice.

Here’s another important thing other couples might overlook--Your role does not end on just choosing the legal guardian. You have to formalize your decision.

Your choice of guardian and other specific wishes regarding the care that your children would get after you are gone would be good as nothing when you don’t put it in legal writing. Talk to your lawyer and legally document that decision.

For even more, like why you should name short-term emergency guardians for children, click the link!

Golowin Legal works with many parents of young children. As part of the estate planning process, we ensure that parents have named emergency and permanent guardians for minor children. Call us today at (614) 453-5208 to schedule an meeting. Visit our website for more information on Estate Planning for Parents in Columbus, Ohio.

The Danger Of Do-It-Yourself Wills

The internet is a wonderful information sharing tool. The ability to easily research nearly any topic enabled me to fix my dishwasher and make other repairs that I would not have known how to do without the internet. Unfortunately, this access to information promotes people people falling into the trap of thinking it is simple to create vital estate planning documents themselves.

A great example of a document that seems simple to create is a Will. Recently I posted about the importance and urgency of getting a will, but a Do-It-Yourself Will (DIY) is not the way to go in all but the most simple situations. Even then, I urge you to think twice.

You might think you can never go wrong if you just strictly follow an online format or an example of a will from the internet, but many people have tried going this path and ended up risking their assets and dragging their family into a winding legal battle.

If you are thinking about what the dangers of DIY wills could be, here are a few real life examples. Author Deborah Jacobs called them “DIY horror stories” in her article The Case Against Do-It-Yourself Wills:

#1 Charles Kuralt, the CBS News correspondent and anchor

“Several weeks before he died in 1997, he penned a note to Patricia Elizabeth Shannon, his mistress for 29 years, promising to leave her 90 acres and a renovated schoolhouse near the Montana fishing retreat where they spent time together.

After Kuralt’s death, his family and Shannon spent six years in court fighting over whether this note was a valid amendment to the 1994 will that a lawyer had prepared, or simply a promise to revise the document–a promise that Kuralt never carried out. Without ruling on this issue, a Montana court awarded Shannon the $600,000 property but stuck Kuralt’s family with all the estate taxes.”

#2 Wealthy Texan

“A wealthy Texan who tried to save a few bucks wound up forfeiting his $3.5 million federal estate tax exemption. Using a form he copied from a library book, this guy cobbled together a will, leaving everything–a cool $7 million–to his wife. There was no estate tax due at that point because assets left to a citizen spouse (or to charity) generally aren’t subject to the tax. But anything left when she died, less her own exemption amount, could be taxable as part of her estate.

To fix the problem after the husband died, William Wollard, a lawyer with his own practice in McKinney, Texas, recommended the wife disclaim (or turn down) the entire $3.5 million exemption amount, allowing it to pass under state law, estate-tax free to the couple’s three adult sons. The assets she chose to disclaim were most of the ranch land the couple owned, and a large sum of cash.”

#3 Father Estranged From His Son

“Dad bought DIY will software from a big-box store and, following the prompts, listed his assets, but omitted some important ones: small numbers of shares of various phone company stocks that he had bought many years earlier. Those shares, which probably once seemed like tiddlywinks, had burgeoned in value because of mergers and stock splits and were worth more than $1.5 million, comprising most of Dad’s estate, by the time he died.

Unfortunately, the DIY will did not include what’s called a residuary clause–indicating how to distribute what is left after estate expenses, creditors and taxes have been paid and gifts of specific items or sums of money have been satisfied. So guess what happened? The stocks passed according to the law of intestacy, and the son, who the father wanted to disinherit, walked away with almost $400,000. To make matters worse, he had a substance abuse problem and blew through the money in less than a year."

I could go on with many more examples, but the point is that a DIY will is often a disaster waiting to happen. An online DIY will package or a library template cannot and will never be able to properly replace having an experienced legal expert to set up your will and other critical estate planning documents.

If the people in the stories above had only hired a lawyer, they could have had better estate planning that would have honored their wishes and made it easier to their family and loved ones.

Should having a DIY will ever cross your mind, remember that Timothy E. Kalamaros, a lawyer with his own practice in South Bend, Ind. Compared DIY wills to “pulling your own tooth with a pair of pliers instead of going to the dentist.” Yikes!

Golowin Legal, LLC helps create Wills and comprehensive Estate Plans in Columbus, Dublin, Upper Arlington, Hilliard and the central Ohio area. If you or a loved one needs assistance in setting up will or trust, call us at (614) 453 5208 today. Visit our website for more information on Wills and Estate Planning Documents.

Half of Adult Americans Don't Have A Will

A recent survey of Caring.com reveals that 58% of adults in the U.S. do not have a will or living trust. This percentage shows how adults neglect the importance of estate planning.

If you are part of this population, read on.           

I understand that it is easy to put off end-of-life planning not only for the young, but also for most people who refuse to think about their mortality. However, this kind of thinking prevents you from making decisions that will save your loved ones from additional stress during a time of great grief.

Have you considered setting up a will but never really acted on it?

Caring.com's survey conducted by Princeton Survey Research Associates International found out that 47% out of 1,003 adults do not have estate planning documents because they “haven’t gotten around to it.”

Procrastination is a common hindrance to any kind of planning, but once you know the burden and stress that a lack of will or living trust will give to your loved ones, you might reconsider.

I have previously written a blog post "Steps To Take When A Loved One Dies", a long list of to-do’s that will definitely exhaust bereaved family members. You wouldn’t want your loved ones to go through this arduous process while on a grieving period. If you need a bit of a push to start your estate planning, think of your loved ones. Do it for them.

 

Are you hesitant because of the value of your assets? 

Jody Giles, author of “Missing Pieces Plan: Providing You and Your Loved Ones Peace of Mind” says, “Even if you don’t have the wealth of Steve Jobs or Prince, what you do have means something to somebody. Regardless of the amount of ‘wealth’ you are passing on, let it be handed over based on your wishes, not your state’s laws.”

 

Still thinking about it? Here are two more reasons why you should seriously consider starting your estate planning NOW:

If you are a parent, you have to ensure that your child will be given the best care even after you are gone by nominating a guardian for your children. Giles stresses that a will has a critical role for the minor children and all parents need a will, “If for no other reason than the sole purpose of naming guardians.” This isn’t usually a topic that you or your partner would comfortably discuss, but it is imperative. You would want to leave your children under the care of people you trust, and not someone appointed by a judge. 

You need to have a health care power of attorney. Why? Because when there’s medical emergency and you are not able to decide for yourself, you want someone that you trust make the decisions for you. When a child reaches 18 years of age, parents are no longer legally empowered to make medical decisions for their children. In medical emergencies, you may even find it difficult to get updates on your child's condition without an advance health care directive and HIPAA Release.

Ready to take the first step but still have questions? Here are some answers to the questions commonly asked by clients and friends:

 

            Isn’t estate planning too complicated and costly?

 

It depends. The extent and complexity of your financial situation and your personal goals and wishes directly affect the process of estate planning. Simple estate planning usually doesn't cost much, but expect higher expenses when there’s a need to sort out some issues. According to Ashley Case, an Arizona-based tax and estate-planning attorney, “For individuals with modest wealth and straightforward wishes, a simple estate plan can be prepared quickly and inexpensively. Some factors that tend to complicate an estate plan include multiple marriages, children from different relationships, certain business assets, a higher net-worth, and complex wishes regarding distributions.”

 

            Should I get a will or a living trust?

 

            Mark Gilfix, an elderlaw attorney with Gilfix and La Poll Associates, LLP, suggests that you should choose living trust over a will. He discussed in a Caring.com video, Estate Planning: What You Need, the main factors to consider in choosing between a will and a living trust.  

However, Giflix emphasized that having a will is much better than nothing.

 

            How will I start with my estate planning?

 

      Another video of Mark Giflix briefly enumerates these steps to follow:

 

      He mentioned that the first step is to choose a trusted agent (usually chosen from parents, siblings, children and trusted friends). Then the next step would be determining your personal plan for your assets and where you want them to go when you are gone. Lastly, he highlighted the need to work with an expert upfront.  

With this guide, you can be more confident in taking the first few steps in implementing your estate plan. Remember that a help of an expert in this field can save you time and give you peace of mind that your documents have been prepared correctly. This way, you will avoid any possible problems and additional expenses in the future.

 

Russell C. Golowin is an Elder Law and Estate Planning Attorney for families in the Columbus, Ohio area.  If you need assistance with wills, trusts and other estate planning documents, call (614) 453-5208 today. Visit his website for more information on estate planning in Columbus, Ohio.

Beneficiary Designations - A Big Deal

The linked article from WealthManagement.com asks "What is the Big Deal About Beneficiary Designations?"

Whether you've never done any estate planning or you already have a will or trust, naming beneficiaries or updating your old beneficiary designations is absolutely critical!

Don't understand why it's important?

You might want to read Egelhoff v. Egelhoff, 532.U.S. 141 (2001) and then ask the children of Mr. David A. Eggelhoff. 

After their father divorced Donna Rae Egelhoff (their stepmother), he forgot to update the beneficiary designations on his Boeing retirement funds. Consequently, instead of his children inheriting his retirement funds when he died unexpectedly...his ex-wife did. 

In fact, the unanimous opinion of the high court was that federal law governing ERISA retirement plans preempted the contrary state law "disinheriting" ex-spouses. 

When people think about estate planning, many overlook the importance of updating beneficiary information on assets like 401(k)s, IRA and life insurance policies.  This can lead to serious unintended consequences, to include litigation!

Failing to set or update beneficiary designations on financial accounts (to match the instructions in the will or trust document) ranks among one of the most common mistakes in estate planning.  Don't let an Egelhoff-like disaster happen to your loved ones!

Need help with your beneficiary designations? Call Golowin Legal.

Russell C. Golowin helps clients create wills, trusts and other estate planning documents in the central Ohio area. Visit his website for more information on estate planning in Columbus, Ohio.

Facebook User's Death Can Cause Estate Planning Problems

What happens to a Facebook account when the user dies? I previously wrote about how protecting your "virtual assets" is an important piece of estate planning, and this issue is proving to be important as Facebook is bearing the brunt of some complaints from unhappy or frustrated family members of deceased users.

Steve Eder of the Wall Street Journal writes in "Deaths Pose Test for Facebook":

As people's online personas become an increasingly important part of their lives, families and friends are encountering confusion and frustration in trying to manage the Facebook, Twitter and email accounts of their deceased loved ones.

How To Discuss Money With Mom & Dad

Do your mom & dad have enough money to last through retirement? Many children are worried that due to market losses over the past few years, their parents may not have enough to live comfortably through their "golden years".  Does this mean that son's & daughters will need to pitch in to keep them afloat? How do you have the "money talk" with mom & dad?

Steps To Take When A Loved One Dies

My clients know that if they lose a family member or friend, they can simply call me for help as a Probate and Trust Administration Attorney. Unfortunately, many folks don't even have a will in place, so their family members don't have any written guidance to refer to, and may not even know an attorney that will help them with their questions.

Recently, Portland Oregon Estate Planning Attorney Candice Aiston compiled this helpful list of things to do (edited slightly for Ohio estate planning purposes), which I hope you find helpful,though I don't pretend that it is a complete list.

1. Notify doctor, coroner, and/or police officer (depends on whether death occurs at home or hospital).
2. Contact family and friends. Hopefully, the deceased has compiled a list of people to notify in his or her estate plan.
3. Funeral arrangements. If they're not prepaid, they can be paid from the estate of the deceased. This is also something that the deceased may have expressed wishes about in his or her estate plan. Determine whether the deceased will have military or police officer honors.
4. Prepare obituary. Again, the deceased should have helped you with this in his or her estate plan.
5. Contact an Estate Planning Attorney as soon as possible. If there is a Will, it may need to be filed with the Probate Court by a certain date, and the Federal Estate Tax return is due 9 months after the date of death. You may have a state estate tax return as well; the existence and rules vary state to state. You also only have 9 months to decide on the use of disclaimers to save on estate taxes. Without a Will in place, probate may need to be opened depending on the size of the estate. If there is a Trust in place, there will probably be a lot of paperwork that needs to be completed, and this is best handled by an attorney. Also, many states require that estates notify creditors publicly, and the estate must remain open during the statutory time period, so it's a good idea to contact an attorney early on so that the clock can begin.
6. Use a team of advisors (attorney, CPA, financial advisor). There will be many legal, financial, and tax issues that come up and it's best to have the advice of professionals in those fields.
7. Locate estate planning documents and asset information. Hopefully, the deceased has communicated his or her plan with you prior to death, and hopefully, the documents aren't in a super secret safety deposit box. Having an attorney to turn to at this point is invaluable.
8. Arrange care for surviving family and pets. Guardians for minor children must petition the court to have guardianship approved.
9. Obtain the death certificate. It's best to get several copies, because many of the institutions you'll be dealing with will need a copy.
10. Secure real and personal property and make an inventory of all personal property.
11. DO NOT immediately accept benefits (retirement, annuities, investments). Contact your Estate Planning Attorney and inquire about the use of disclaimers. There may be tax savings in doing so.
12. Create inventory of assets (real property, valuable personal property, bank accounts, stocks, retirement accounts, life insurance, etc.). If the deceased has done thorough planning, a spreadsheet of these assets should be with his or her estate planning materials.
13. Contact IRS for new Tax ID number for estate or trust.
14. Compile list of creditors.
15. Notification for benefits and insurance. Provide employee benefits, insurance, Social Security, and Medicare offices with: Decedent's name, Social Security number, date of death, whether death was due to illness or accident, your name and address.
16. Other notification: Veterans Pension or Survivor benefits, club and credit memberships, disability insurers, utility companies, homeowners, landlord, anyone providing home maintenance.
17. If the decedent was a business owner,there are obviously additional items to consider. One is whether the decedent had a Buy-Sell Agreement or other type of business succession plan.

With Identity Theft of Deceased becoming a common problem, Ms. Aiston also provides some tips to avoid identity theft.

1. Request the deceased's credit reports from the three credit bureaus.
2. Request that the credit bureaus suppress the deceased's credit file.
3. Send a copy of the death certificate to all creditors.
4. Immediately notify Social Security of the deceased's death.
5. Cancel all of the deceased's ID cards.
6. Safeguard documents that have the deceased's Social Security number.
7. Avoid giving too many details in the death announcement (like mother's maiden name, etc.).

As you can see, the amount of work to be done when someone you love passes away can quickly become overwhelming - especially during a time of severe grief.  To help ease the burden of those you love, get a will or trust estate plan done.

Make sure that all relevant documents are in one conveniently accessed location.  I use a will or trust portfolio (binder) that has tabs for all the legal documents, life insurance policies, retirement plans, memorial instructions, etc.  Don't make your family members dig through boxes in the basement to try to construct your financial picture.  Give them the gift of having your estate plan completed and your affairs organized.

To get started on the most important planning you'll ever do for your family, call Golowin Legal at (614) 453-5208 to get started.

Should Estate Planning Be Put Off During A Recession?

CNBC's In The Money discussed how estate planning has fallen to the end of the list for some people in these financial times and why that's a mistake. Alexis Martin Neely answers calls about 1) How to make sure your child is taken care of and whether it is worth it, 2) Whether you should add a child to a mortgage, 3) How a trust can keep your family finances private, and 4) The importance of reviewing beneficiary designations of life insurance and retirement plans.

Securing the American Dream for the generation that follows

Ways To Help Your Aging Relative With Their Finances

Sometimes aging loved ones need a little help managing their money. Many times they don't need everything handled for them, but a little guidance or a review is helpful.

In my prior post, Help Your Aging Relatives With Their Finances, some of the warning signs of financial meltdown were discussed, along with the need to bring up the issue early. Here are some tips on how to help without taking over completely.

• Set up direct deposits for Social Security, Pensions
• Set up automatic billpay for recurring expenses
• Minimize the number of accounts ***Do your parents have 15 CD's at 15 different banks? Do they have 5 different brokerage accounts? In my opinion, these accounts should be consolidated with a qualified, trusted advisor in the first place...but even if not, the number can be pared down to make it easier to keep track of what's happening with the money***
• Set up regular meetings to review
• Arrange for duplicate bank and bill statements to be sent to you so you can track income and spending

Do NOT add your name as joint owner on your parent's bank accounts or brokerage accounts to help them manage the money. Many times, mom may name the in-town child as the joint owner because the other three children live across the country and have a more difficult time going into the bank. This causes large problems at death, when the entire value of the account passed to the joint owner in-town child, and leaves out the other children or loved ones entirely.

Instead, consider the use of a Revocable Living Trust with the in-town child named as co-trustee. That way, the in-town child can deal with the bank, but the money will pass in the intended fashion (perhaps equally to all four children). Another alternative, a little more risky, is to give the in-town child power of attorney to deal with the finances. Either one, however, is better than adding a joint owner to the account.

Help Your Aging Relatives With Their Finances

Keeping an eyes on your elderly relatives may provide signs that they could use your help with handling their finances. Don't wait to get involved!

Eileen AJ Connelly of the AP writes:

[a]t first, you might notice a pile of unopened mail. Your normally fastidious mother might be getting sloppy with her checkbook. Your elderly uncle might be behind on his electricity bill. The signs are often subtle, but they might indicate that aging relatives are no longer able to handle their finances.

Once you have noticed a possible problem, now is the time to have a conversation where you offer help. Don't wait, as that will risk compounding any problems that already exist. The longer the topic goes unspoken, the greater the chance that once the problem is critical, that your offer of assistance will be met with resistance or denial. However, don't avoid the topic because you think there will be trouble...sometimes the elder may simply assume you're too busy and they don't want to bother you with their troubles.

Sometimes is is easier to enlist the assistance of one of the elder's professional resources: their lawyer, CPA, financial advisor, or doctor. Connelly writes:

Once the conversation is started, be sure to discuss a budget, income, assets and insurance policies. It also can be a good time to make sure that a will is in place, and discuss whether a health-care power of attorney is appropriate.

While I agree that this is an excellent time to discuss whether your parents have an appropriate estate plan in place (at a minimum: Will, General Durable Power of Attorney, Health Care Power of Attorney, Living Will, Organ Donor Registration, HIPAA Release), I strongly disagree that this is the time to "discuss whether a health-care power of attorney is appropriate".

A health care power of attorney is always appropriate from the moment one turns 18 years old. There is no reason to wait and risk having the court be involved in order to appoint the one in charge of making medical decisions on your behalf should you be incapacitated. All adults should have a health care power of attorney!

Should the financial problems be a result of limited, fixed income, investigate state or federal programs that might help with some of the monthly bills. Your local Area on Aging is a good place to start.

Warning Signals:

Signs to watch for if you suspect an elderly relative might be having trouble handling finances:

• Unopened mail
• Late or unpaid bills; collections actions
• Confusion or lack of interest about what bills have been paid
• Bounced checks
• Disorganized personal paperwork
• Uncashed checks or unclaimed property reverting to the state
• A large number of magazine subscriptions
• Unusual or increasing direct mail or shopping-channel purchases

Read the entire article, Aging Relatives May Need Help With Finances.

Family Financial Freedom Notebook

The following article is written by America's Personal Family Lawyer, Alexis Martin Neely.

Lots of people are wondering, what do I do know that the economy appears to be melting down?

First and foremost, don’t panic. You are not going to end up standing in line for the soup kitchen. Not if you’re reading this right now.

What you are going to do is get more aware of your family finances, learn to live within your means and generally gain awareness you didn’t have before.

Then, you’re going to look back on this “financial crisis” as the best thing that ever happened to us.

One of the most important things you can do is to establish a family freedom notebook. This is a notebook that you use to keep track of everything related to the financial well-being of your family.

At a minimum, here’s what you put in it:

1. Monthly bank statements for every bank account you have, including any custodial accounts in your kids’ names (keep 12 months worth of statements in the notebook and then scan and archive older statements).

2. Monthly brokerage account statements for every brokerage account you have, including college savings accounts, like 529s (keep 12 months worth of statements in the notebook and then scan and archive older statements).

3. Monthly retirement account statements for each of your retirement accounts (keep 12 months worth of statements in the notebook and then scan and archive older statements).

4. Monthly insurance policy statements for each of your insurance policies ((keep 12 months worth of statements in the notebook and then scan and archive older statements).

5. Copies of your insurance policies (keep these forever).

6. Documents related to any other assets owned, such as the pink slip for your car or lease papers if you are leasing your car.

7. Monthly mortgage statements (keep 12 months worth of statements in the notebook and then scan and archive older statements).

8. Monthly credit card statements (keep 12 months worth of statements in the notebook and then scan and archive older statements). Also, in this section, keep a list of all of your credit card numbers, along with their security codes and the 800# on the back of the card. This list will be a lifesaver if you lose your wallet.

9. Any other loan statements or statements evidencing liabilities you may have, such as student loans, personal loans from parents or car loans.

10. Family Profit and Loss Statement: This is a monthly updated ledger of all income that comes into your family and all expenses that go out.

11. Family Balance Sheet: Updated monthly, this will list out the current values as of month’s end for each of your accounts, including liabilities.

12. Estate Planning Section: Your whole estate plan would be too big to keep in your Family Freedom notebook, but you can keep a CD or jump drive with your estate planning documents on it and any documents related to the transfer of assets into your Living Trust. Plus, keep your long-term guardian nominations and your Kids Protection Plan, medical powers of attorney for your kids, and your own health care directives and powers of attorney in this section as they will need to be accessed immediately if anything happens to you.

13. Other personal legal documents: if you own property with anyone else, have entered into any business arrangements, or have personal legal agreements, keep those in this section.

14. Pay stubs: keep a year’s worth of the part of your pay stub that shows how much you got paid, how much went to taxes and how many hours you worked. I can’t tell you how many non-breadwinner spouses have told me they don’t know how much money the breadwinner spouse makes. Bad idea. Make sure you know and have the records.

15. Social Security Statement: You know that green and white letter you get in the mail each year that says how much you’ve paid into social security and how much you can expect to get, keep it here. I can’t promise you’ll actually get this as our system may not have the money to fund it, but you can at least keep the record that shows you paid into the system.

Obviously, this notebook contains very sensitive information, so consider keeping it in a small fireproof safe in your house. Just make sure the safe is not one that can be lifted up and carried away by a thief. Make sure it’s the kind that anchors into the ground or the wall.

Please note: this is not a household notebook or a Family Emergency notebook. That’s a whole different animal and something that SHOULD be kept accessible to other family members, babysitters and household helpers.

SOURCE: Family Wealth Planning Institute

Long Term Care's Impact On The Family

"Families are not necessarily drawn together in a time of crisis. Very often, they are blown apart." says Nancy Dykeman, an educator of long term care planners.

Nancy illustrates this problem with an example:

Imagine a young family. The father is working toward a career promotion; he coaches his kids' soccer teams. His wife works part time. They have two children. The mom's parents are retired, healthy and live in Arizona, playing golf and loving life. Then the unthinkable happens - the young mom suffers a stroke. Months of rehabilitation and care at home follow. Grandma and Grandpa travel back and forth from Arizona, often staying for long periods to help, even though their retirement dream is slipping away.

Dad must continue working to support his family, but his employer is tired of the time he spends on the phone and his coming in late or leaving early. A promotion is off the table.

What about the kids? Their mom, confidante and best friend is hurting and no longer fun. All of her energy goes into trying to recover. Kids' roles change too. They must help prepare meals, keep things picked up, and support their dad and grandparents.

Who knew this young wife and mother would need long-term care? Would the impact be different had it been one of the grandparents? Whenever anyone of any age needs long term care, it's a family issue.

Dykeman says that Long-term care insurance (LTCI) would have been a priceless gift for this family because it "protects the family, allowing them to think and work together without the stress and sacrifice of constant crisis mode." It also allows each family member to keep their normal role, rather than that of a caregiver.

Make sure you have a plan - it's critical for all adults, of any age. Whether it includes long term care insurance, annuities, or Medicaid planning and asset protection, consult with a professional to ensure you and your family are taken care of.

Do Your College Age Children Have Healthcare Directives? DO YOU?

We should all protect our families and our assets with legal documents like wills and trusts, but what are our essential needs and what can we do on our own to save on legal fees? Family financial and legal expert, Alexis Martin Neely, is the author of "Wear Clean Underwear: A Fast, Fun, Friendly and Essential Guide to Legal Planning," and shared some valuable advice in an appearance this week on View From the Bay on KGO in San Francisco.

Alexis is the founder of the estate planning law firm of Martin Neely & Associates in Southern California, as well as the Family Wealth Planning Institute, a nationwide cadre of Personal Family Lawyers guiding parents to make the best legal decisions throughout life and being there for loved ones afterward.

She says everyone over 18 needs an Advance Health Care Directive & Durable Power of Attorney. If you have assets, you should also have a Will & a Living Trust. If you have minor children, you should also have a Kids Protection Plan.

She raised a great point that many parents don't think about - go watch the show to find out the important legal documents that all young adults need to have in place.

During the segment Alexis shares what legal documents you must have in place for you, and your kids! At the end, listen as she explains, what you should look for and the questions you should ask when searching for the perfect attorney to handle your family planning for a lifetime.

If you have college age kids, this is a VERY TIMELY and IMPORTANT topic. Make sure BOTH you and your adult kids have these important documents in place to avoid problems in the event they are injured or incapacitated.

Before you send them back to school, make sure these documents are in place!

If you have prepared these documents in the past, be sure to have them reviewed for compliance with HIPAA laws! Our office can help you with those needs, as well as the Kids Protection Plan, Wills and Living Trusts. If we can help you with these things, please contact us at 614.487.8887 x3 or through the Golowin Legal Website.

Two Legal Documents Every Adult Needs No Matter The Size of Your Bank Account

As of your 18th birthday, you became an adult in the eyes of the law.

Even though your kids may still act like teenagers (or you may feel like one), in the eyes of the government, turning 18 means you need to have legal documents in place in case of an accident.

Every adult should have in place an Advance Health Care Directive and a Financial Durable Power of Attorney. Estate planning is not just for rich people. These legal documents are important for everyone who loves their family.

If you don’t have these legal documents in place and something scary happens, it will make life a whole lot more difficult for the people you love.

An Advance Health Care Directive (also known as a Health Care Power of Attorney and Living Will) does two things: first, it names the person you want making health care decisions for you if you cannot make them for yourself and second, it lets that person know how you want them to be made.

This is important because if you are in the hospital and cannot communicate, you need someone to make decisions for you and you want them to make those decisions as you would want them made, without question.

If you don’t have this document in place, it could create a huge rift among your family as the people you love fight about what you would have wanted.

The important thing in this document is that the whoever you name is also given authority under the new (within the past three years) Health Insurance Portability and Accountability Act (aka HIPAA).

If your health care agent (the person named in your Advance Health Care Directive) is not designated as your agent under HIPAA, they will not be able to look at your medical records, which makes it mighty hard for them to make health care decisions for you.

By the way, if you have college age kids going off to college, you’ll want to get this in place for your kid. Otherwise, when you call the school nurse to discuss your child’s illness, you may find no one can or will talk with you because they would violate HIPAA if they did.

We get frantic calls in our office at least once or twice each fall from parents looking for legal documents for their college-age kid for just this reason.

The second legal document you absolutely need to have in place as an adult is a Durable Power of Attorney. This document names someone to make financial and legal decisions for you if you can’t make them for yourself.

Beware of the one-page standard durable power of attorney you find on the internet where you just check off a list of applicable powers. I’ve seen family members try to use those to access their loved ones assets and then not be able to because the form was too generic.

It’s important for your kids going off to college to have this in place too because if they are in an accident you are going to need to take over paying the bills and get access to bank accounts and make legal decisions. But, you will have to go through a long and expensive court process if there’s not a signed Durable Power of Attorney in place.

It’s the same for you too. If you are in an accident, and you don’t have a Durable Power of Attorney in place,it will be difficult for your family to deal with things on your behalf.

So, regardless of the amount of money you have in the bank, get your Advance Health Care Directive (or living will) and your Durable Power of Attorney in place at the bare minimum. Oh, and of course, if you have kids under 18 at home, get your comprehensive Kids Protection Plan in place too.

None of this has to do with money. It has to do with making life as easy as possible for the people you love. Contact Golowin Legal today to protect your loved ones.

SOURCE FOR POST: Family Wealth Matters by Alexis Martin Neely

Your Parents, FDIC and Keeping Your Money Safe

Timely discussion on how to protect your money held within financial institutions. Can you shield more than $100,000 via FDIC protection? Absolutely!

Don't fail to take advantage of these valuable planning techniques!

A Grave Issue of Parenting – Writing Wills and Choosing Guardians

The following article, which appeared in the Orange County Register, features an interview with fellow Personal Family Lawyer Darlynn Morgan of The Morgan Law Group in Newport Beach, California.

Tips for making sure your children are cared for in the event of your death.

"Mommy, what happens after you die?"

It's a question most kids ask at some point – and we may quickly paint a picture of fluffy clouds, golden roads, rainbows and go about our day.

It's a question parents rarely want to truly consider. But ask yourself – what would happen to your kids if you died? Who would take care of them?

"A will may not be enough," says attorney Darlynn Morgan of The Morgan Law Group in Newport Beach. Morgan, a personal family lawyer, offers estate planning tips and advice to parenting and moms' groups, with a particular focus on children.

Here are her tips for ensuring your children's future in the event of your death:

•If both parents can't agree on a suitable guardian for the children, don't give up. Find a mediator who can help you to come to a mutual agreement for the benefit of the kids.

•When you name a couple to act as guardians, be sure to indicate what should happen if the couple broke up or one of the partners in the couple died. You want to ensure your children don't end up in the care of someone you wouldn't really want.

Name several alternate guardians if your first choice can not serve.

•It isn't necessary to take into account the financial resources of potential guardians when deciding who should raise your children. Your guardians are the people who will be in charge of your kids' emotional, spiritual and physical well-being, not necessarily their money.

It's your responsibility to leave enough money behind to take care of your kids either through savings or life insurance, and someone to manage that money if the guardians are not good money managers.

It's also a good idea to provide someone to manage your children's money so a lump sum doesn't go to your children at age 18 – without adult supervision.

•Be sure to name short-term guardians as well as long-term guardians. Short-term guardians will offer immediate care of your kids if you were in an accident. Otherwise, your kids could be taken out of your home and into the arms of strangers (child protective services) until the authorities figure out what to do.

•Be sure to specially name anyone you want excluded as guardians – those who might challenge your decisions or who you would never want raising your kids. (A grandparent or aunt or uncle, for example, who may fight the guardians for custody).

For a list of Morgan's upcoming speaking events, visit Morgan Law Group.

SOURCE: Orange County Register in an article written by CYNTHIA RUPE