Enjoy our newsletter this month, which is filled with information on very important topics:  how to choose the right executor, how to provide for a special needs family member, and more info on the Roth 401(K)  we’re starting to hear more and more about.  

In addition, take this opportunity to sign up for one of our Estate Planning or Medicaid Seminars coming up in a few weeks!

Click here  to access our full September newsletter.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

As an elderly or terminally ill loved one nears the end of life, it sometimes becomes apparent that traditional medical interventions are no longer helpful.  In some cases, those traditional means can even harm the quality of life during those last days and weeks.

An option that can help the quality of life when traditional methods are no longer effective is Hospice, a family-centered philosophy of end-of-life care that takes the focus off of life-extending medical interventions and instead focuses on providing comfort and increased quality of life for patients in their final days of life.

Generally, once someone who is terminally ill has been diagnosed as having six months or less to live, he or she is eligible for Hospice care.  Hospice care can be given in a hospital, in a nursing home, or in the patient’s home.  As much as possible, the patient’s family is encouraged to participate in decision-making and in care-giving responsibilities.

The choice to participate in Hospice care is not a permanent one.  It is not unusual for a patient to receive Hospice care for a period of time, decide to transition back to traditional medical care,  and then still be able to return to Hospice if they choose.  This can be particularly true when a cancer patient’s health improves.

Along with including family members in patient care giving, Hospice also provides direct support for grieving family members.  While a patient is receiving care, and after a patient passes away, family members can join support groups or receive counseling to help them through the process of saying goodbye to their loved one.

It’s easy to find more information about Hospice through your local hospital, nursing home, or online.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

If your estate plan includes a Will, one of the things you’ll need to do is choose an Executor. Most people name their spouse or a child as Executor without ever stopping to think about what an Executor actually does.  The truth is that the role of Executor can be demanding and stressful, especially for a grieving family member.  Here are some qualities you’ll want your executor to have:

• Loyal: Your Executor will need to follow the instructions contained in your Will, and will need to defend your estate against false claims by creditors and, possibly, relatives.
• Fair: Your Executor will need to balance the interests of all beneficiaries.
• Honest and Trustworthy:  Your entire estate – all of your property – will be at your Executor’s disposal.  He or she will be responsible for managing it for the benefit of your beneficiaries, for paying all of your final bills and debts, and for distributing it in accordance with the terms of your Will and with state law.
• Organized:  Your executor will have mountains of paperwork to keep track of:  bank statements, tax forms, appraisal reports, bills, life insurance form…the list goes on and on.  He or she will need to be clear-minded and have the ability to stay on top of the estates financial affairs.
• Thick-Skinned: Many people don’t anticipate how contentious the probate process can be.  When it comes to money and possessions, family members can turn on each other at a moment’s notice. Add to this the potential for creditors’ claims and the fact that your executor is likely unfamiliar with the legal system, and his or her job can get very stressful very quickly.

It’s easy to underestimate what it takes to be a good Executor.  Before you make a choice, think through this list and make sure the person you select is up for the job.  Keep in mind that our offices can help your executor through the probate process in order to make things as easy on them as possible.  We welcome an opportuntity to talk to you – (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

When you have a child who is disabled and receives government assistance, your estate planning needs are especially sensitive.  You can’t leave a bequest outright to your child because the result would be that he or she would lose their government benefits, at least until their inheritance was used up.  This scenario would likely leave your child worse off than they were prior to receiving the inheritance.

 How?  Because, now, while you’re living, he or she likely relies on government assistance like SSI or Medicaid to cover bare-bones living expenses and medical care, while you provide all kinds of “extras” that enrich his or her life.  Things that range from special toiletries and favorite foods to special outings, educational programs and experiences, travels, and myriad other things that would be sorely missed if you were absent from the life of your child.

If you were to pass away and leave money to your disabled child in the form of an outright bequest, your child would lose his or her benefits and would have to use the inheritance they received from you to pay for living expenses and medical care.  Once the inheritance was used up, they would once again be eligible for government assistance.  At that point, though, you would no longer be there to provide all the “extras”, and the inheritance would be gone, so your child would be left with only the basic care afforded by Medicaid or SSI.  Not a very enriching life.

The good news is that with careful estate planning, your disabled child can continue to receive his or her government benefits and enjoy access to the special “extras” that you provide, even after you’re gone. 

This can be done with a properly established Special Needs Trust. This is a type of irrevocable trust that can only be used to provide supplemental care above and beyond what’s provided by Medicaid or SSI.  Even if you’re not necessarily wealthy, you may be able to use a life insurance policy to fund this type of trust.

There are very specific rules that have to be followed in forming a Special Needs Trust, so it is essential that you have an attorney with experience and training in this area of estate planning law help you.  Our office is ready to help you establish a customized plan to provide for your special needs child.  Please call us for an appointment – (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

If you have an elderly parent who lives out-of-state, it can be difficult to keep tabs on his or her health, and the decision to transition your mom or dad into long-term care can be especially heartbreaking.  With our increasingly mobile society, though, you’re far from alone.  More and more of us can’t live near our elderly parents, and a new group of professionals have emerged to help families care for their elderly relatives.

They’re called Geriatric Care Managers (GCM’s), and they provide a range of services, from assessing an elderly person’s need for nursing home care, to finding ways for your elderly parent to remain at home for as long as possible. He or she can also provide screening for long-term care service providers, and can act as a liaison between out-of-town family members and caregivers.

Generally, a Geriatric Care Manager is a person with a background in nursing, social work, psychology, or gerontology.  He or she should have a particular interest issues associated with elder care and aging. 

Because this is a relatively new field, it is largely unregulated, so it’s important that you check the references of any Geriatric Care Manager before hiring him or her.  It’s also important to get a written contract specifying the GCM’s terms of service, emergency contact policy, and fee schedule. You should also see if he or she is certified by an organization such as the National Association of Professional Geriatric Care Managers. 

To find out more about Geriatric Care Managers, you can contact your parent’s doctor, a local assisted living facility, or the National Association of Professional Geriatric Care Managers.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

What would happen if you were in a serious accident and were suddenly in need of life-saving medical care but you couldn’t make decisions for yourself or communicate with your doctors?  What if you had a stroke and were in a coma; who would make medical decisions for you?

A lot of people think that if they have a Durable Financial Power of Attorney, then the attorney-in-fact named in that document could step in and make medical decisions in the event of their incapacity.  Unfortunately, a Durable Financial Power of Attorney only gives your attorney-in-fact the authority to manage your financial and legal affairs; it’s useless in medical situations.

The good news is that your estate planning attorney can help you put a Durable Healthcare Power of Attorney in place.  With a Durable Healthcare Power of Attorney, you appoint an agent to communicate with your medical professionals and to make medically-related decisions on your behalf if you’re incapacitated and can’t speak for yourself. You can also use this document to let your agent know what kinds of treatments you do and don’t want, so that he or she has guidance in making decisions for you.

Without a Durable Healthcare Power of Attorney, it’s likely that your family would need to go to court to have someone legally appointed to make decisions on your behalf if you were rendered unable to make your own healthcare decisions.  This can be a financial and emotional nightmare for your family, and it can result in the appointment of someone you might not necessarily want making life-altering decisions for you.

Incapacity planning is an essential part of your estate plan and a piece that The Law Offices of Cheryl David is ready to provide.  If you haven’t made provisions for what would happen in the event of a medical emergency, you should call us immediately to set up a consultation (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

You’re probably familiar with the traditional 401(k) plan.  If you work for a corporation or other private employer, you likely have one.  A 401(k) plan is an employer-sponsored retirement savings plan that qualifies for tax benefits.  Traditional 401(k)’s have been around for some time, but a more recent addition to the retirement planning landscape is the Roth 401(k).  The main difference between these two accounts has to do with when you pay taxes on your savings:

Traditional 401(k)

A traditional 401(k) is a tax-deferred retirement savings plan.  This means that when contributions are deducted from your paycheck and put into your 401(k), they’re also subtracted from your taxable income.  You don’t pay tax on the money that goes into your 401(k) until much later, when you withdraw it.  What’s the advantage to you?  For many people, income during the working years is considerably higher than it is during the retirement years.  So, once you’re retired, you drop into a lower tax bracket.  By waiting to pay taxes on your 401(k) funds until you withdraw the money during retirement, you likely will pay less in income tax on the money.

Roth 401(k)

Income taxation for a Roth 401(k) is exactly the opposite.  With a Roth, your contributions are still made through payroll deduction, but those contributions are taxed as regular income in year they go into your 401(k).  When you retire, you withdraw the money you contributed, as well as the interest earned on your contributions, tax-free.  This makes a Roth 401(k) an attractive option for people who anticipate being in a higher tax bracket once they retire.  It’s also a good option for those who plan to use the account for long-term investing, because their retirement savings is allowed to grow, tax-free, over many years.

Both types of 401(k) plans carry with them restrictions concerning rollovers and withdrawals, as well as other limits. As with any investment decision, the choice between a Roth 401(k) and a Traditional 401(k) is specific to your situation.  It’s best to seek the advice of a qualified financial planner before making any investment decision. 
Did you know we have a Certified Financial Planner on staff?  Meet Linus Whitlock and call (336) 547-9999 to schedule an appointment.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

With Americans living longer than ever, and with the cost of assisted living and nursing home care on the rise, the question of how to pay for long-term care weighs on many peoples’ minds.  Most of us are not wealthy enough to pay the entire bill out of pocket, but qualifying for Medicaid may not be an option for some seniors.  If you’re in this situation, a long-term care insurance policy might be a solution.

Similar to health insurance, long-term care insurance allows you to buy coverage in advance for the nursing home, assisted living, or even in-home care you anticipate needing as you age.  Here are the basic considerations:

1. What type of policy do you need?  There are two basic types of long-term care insurance policies:  comprehensive and non-comprehensive.  Comprehensive policies cover all types of long-term care.  Non-comprehensive policies are much more limited. For instance, you can choose a nursing-home only policy, or a home-health only policy.
2. How much daily coverage will you need?  This is the “benefit amount”, and it will vary depending on the type of facility you plan on entering, as well as the other means you have of paying for your care.
3. How long do you want to receive benefits? This is the “benefit period”.
4. How long can you wait before using your long-term care policy?  The period of time between purchasing your policy and the start of your benefits is called the “elimination period”.  Generally, the longer the elimination period, the more you can save on your policy premium.

As a rule, the younger you are when you buy long-term care insurance, the lower your premiums will be, so it pays to plan ahead. It’s a good idea to shop around and seek advice from an experienced professional before deciding the amount and type of coverage that’s right for you.  In addition to providing your Estate Planning needs, The Law Offices of Cheryl David can also help you plan for your Medicaid and Long-Term Care needs.  Call us to schedule your appointment:  (336)  547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

You’ve put a lot of effort into making sure all the I’s are dotted and the T’s are crossed in your estate planning documents and, naturally, you want to make sure you keep them in a place where they’ll be safe and secure.  You also want your documents to be accessible to your executor or trustee in case they need them.  So, where’s the best place?

Many people choose to keep their estate planning documents in a safe deposit box at the bank.  While this will definitely keep your documents safe from theft and fire, they may not be as accessible as they need to be.  If you’re the only one who has authority to use the box, then once you die or become disabled, your executor or trustee will need to go through the process of obtaining a court order before he or she can get into the box to access your estate planning documents.  In addition, this process may also involve the bank requiring an inventory of the box’s contents before they turn it over to this executor or trustee.  These scenarios apply even if he or she has access to the key.  If you choose to keep your documents in a safety deposit box, it’s a good idea to allow someone – a spouse or your executor or trustee – to have joint access to that box.  Planning ahead now protects your privacy as well as prevents a cumbersome process for your executor or trustee. 

Aside from a safety deposit box, what are your options?  Well, some people keep their estate planning documents in a fireproof safe in their home.  Others choose to keep them with their other important paperwork in a locked file cabinet or on a specific shelf.  If possible, you should try to protect your documents from theft, from fire, and also from flooding.

It’s especially important to remember that certain of your estate planning documents, such as your Will, are originals, and must be especially safeguarded.  Also, as mentioned before, accessibility is a very important factor when it comes to your estate planning documents.  While you may not want everyone in the family to know where they are, you at least want your executor and/or trustee to be able to locate them.  If your estate planning documents can’t be found, then the law treats you as if you died without any estate plan at all, and all your hard work will have been for nothing.

As with any step in the Estate Planning process, the ease in which the plan is executed as well as the accuracy in carrying out your wishes relies on a solid Estate Plan, which certainly includes storing documents in a safe but accessible place.  Whether you have questions regarding the best storage option for you or concerns about other facets of the Estate Planning process, our team has the knowledge and experience necessary to help you ensure your exact wishes are carried out.  Call for an appointment today:  (336) 404-9773.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

When you establish a Revocable Living Trust, one of the fiduciaries you’ll select is a disability trustee.  This is the person who will step in and take control of your trust in the event that you become mentally disabled to the point that you can’t handle your own financial affairs anymore.  Having a disability trustee allows your family to avoid going to court to have a guardian or conservator appointed to manage your affairs on your behalf.

Your disability trustee will take control of all the money and property you’ve funded into your trust and manage it on your behalf, according to the instructions you’ve provided in your trust agreement.  He or she will ensure that your medical care is paid for and will make sure that the expenses of your day-to-day needs are met, whether you’re living at home or you’ve entered an assisted living facility or a nursing home.  This includes paying any non-family caregivers, as well as paying your bills and managing your investments.

Given the broad powers and heavy responsibilities your disability trustee is likely to shoulder, it’s important that you choose someone who’s responsible, financially savvy, and trustworthy.  It’s also essential that you check with the person you intend to appoint to make sure they’re willing to do the job.  Many people opt for a close family member or friend, but you can also choose a professional trustee like a Trust Company or the Trust department of a bank.  No matter who you select, you’ll want to name an alternate disability trustee in case your first choice is unable to serve when the time comes.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.