Tiger King: Joe Exotic's former zoo handed to rival Carole Baskin ...

 

Anyone who has seen the hit Netflix documentary Tiger King: Murder, Mayhem, and Madness can attest that it’s one of the most outlandish stories to come out in a year full of outlandish stories. And while Tiger King’s sordid tale of big cats, murder-for-hire, polygamy, and a missing millionaire may seem too outrageous to have any relevance to your own life, the series actually sheds light on a number of critical estate planning issues that are pertinent for practically everyone.

Over seven episodes, Tiger King provides several shocking, real-life examples of how estate planning can go horribly wrong if it’s undertaken without trusted legal guidance. In this article, we’ll discuss some of the worst planning mistakes made by key people in the documentary, while offering lessons for how such disasters could have been avoided with proper planning.

The Feud

While the documentary’s dark, twisted plot is far too complicated to fully summarize, it focuses primarily on the bitter rivalry between Joe Exotic and Carole Baskin, who are both owners and breeders of big cats. Joe, the self-professed “Tiger King,” whose real name is Joseph Maldonado-Passage, runs a roadside zoo in Oklahoma filled with more than a hundred tigers, lions, and other assorted animals.

Carole is the owner of Big Cat Rescue, a Florida-based sanctuary for big cats rescued from captivity. As an avid animal rights activist, Carole goes on a public crusade against Joe, seeking to have his zoo shut down, claiming that he exploits, abuses, and kills the animals under his care.

The feud between Joe and Carole goes on for decades, and eventually peaks after Carole wins a million-dollar trademark infringement lawsuit against Joe and Joe is ultimately convicted of hiring a hitman to kill Carole and sentenced to 22 years in federal prison.

Although the clash between Joe and Carole takes center stage and exposes key estate planning concerns related to business ownership and asset protection (which we’ll have to cover in a separate article) the most egregious planning errors are made by Carol’s late husband Don Lewis.

Missing millionaire

Don, a fellow big-cat enthusiast who helped Baskin start Big Cat Rescue, mysteriously disappeared in 1997 and hasn’t been seen since. After having him declared legally dead in 2002, Carole produced a copy of Don’s will that left her nearly his entire estate—estimated to be worth $6 million—while leaving his daughters from a previous marriage with just 10% of his assets.

Carole was not only listed as Don’s executor in the will she presented, but she also produced a document in which Don granted her power of attorney. However, the planning documents Carole produced were deemed suspicious by multiple people who were close to Don for a number of reasons.

Don’s daughters and his first wife claim that Don and Carole were having serious marital problems before he disappeared, and that Don was planning to divorce Carole. As evidence of this, we learn that Don sought a restraining order against Carole just two months before he vanished, in which he alleges Carole threatened to kill him. A judge denied the restraining order, saying there was “no immediate threat of violence.”

Don’s daughters also claim that around the time the restraining order was filed, their father created a will that left the vast majority of his estate to them, and he did so in order to minimize any claims Carole might have to his property should he pass away. Additionally, Don’s administrative assistant, Anne McQueen, said that before he disappeared, Don gave her an envelope containing his new will and a power of attorney document, in which he named Anne as his executor and power of attorney agent, not Carole.

Anne said Don told her to take the envelope to the police if anything should happen to him. According to Anne, the envelope with Don’s planning documents was kept in a lock box in Don’s office, but she claims Carole broke into the office and took the documents 10 days after he disappeared. Anne believes Carole forged the will and power of attorney she ultimately presented to the court.

Carole vehemently denied all of these claims. She further alleged that Don sought to disinherit his children in his will, and it was only at Carole’s suggestion that Don left them anything at all.

Although law enforcement investigated Don’s disappearance from Tampa to Costa Rica, Hillsborough County Sheriff Chad Chronister said the investigation failed to uncover any physical evidence, only a conflicting series of stories and dead ends. In light of this, Don’s estate passed through probate in 2002, and his assets were distributed according to the terms of the will Carole presented, leaving Carole with the bulk of his $6-million estate, and leaving Don’s daughters with just a small fraction of his assets.

While there’s more to the story surrounding Don’s planning documents and Carole’s suspicious actions, let’s look at the planning mistakes Don made and how they could have been easily prevented.

The Big Lesson: Always work with an experienced estate planning lawyer when creating or updating your planning documents, especially if you have a blended family. If Don’s children and assistant are correct and Don created a will that left his daughters the bulk of his estate and disinherited Carole, it appears he did so without the assistance of an attorney. This was his first big mistake.

There are numerous do-it-yourself (DIY) estate planning websites that allow you to create various planning documents within a matter of minutes for relatively little expense. Yet, as we can see here, when you use DIY estate planning instead of the services of a trusted advisor guiding you and your family, the documents can easily disappear or be changed without anyone who can testify to what you really wanted. In the end—and when it’s too late—taking the DIY route can cost your family far more than not creating any plan at all.

Even if you think your particular planning situation is simple, that turns out to almost never be the case. There are a number of complications inherent to DIY estate plans that can cause them to be ruled invalid by a court, while also creating unnecessary conflict and expense for the very people you are trying to protect with your plan.

And while it’s always a good idea to have a lawyer help you create your planning documents; this is exponentially true when you have a blended family like Don’s. If you are in a second (or more) marriage, with children from a prior marriage, there’s an inherent risk of dispute because your children and spouse often have conflicting interests, particularly if there’s substantial wealth at stake. The risk for conflict is significantly increased if you are seeking to disinherit or favor one part of your family over another, as Don was claimed to have done with Carole.

Finally, as we saw with Don, if your loved ones can’t find your planning documents—whether because they were misplaced or stolen—it’s as if they never existed in the first place. Yet, if Don had enlisted the support of an experienced planning professional, his documents would have likely been safeguarded from being lost, stolen, or destroyed.

 

 

Prenup: Romance killer or wealth protector? - The Globe and Mail

 

 

Last week, I discussed some of the pros and cons of using prenuptial agreementshttps://www.calilaw.com/prenuptial-agreement-pros-and-cons/ . Here, we’ll look at different estate planning vehicles that could provide similar—or even better—protection than prenups.

 

Revocable living trust created by you: By setting up a revocable living trust and funding it with your separate assets before getting married, those assets would likely be considered non-marital property and not subject to division by the court upon divorce—as long as you never commingle any of those assets with your spouse after your marriage. To ensure your separate property assets stay separate, it’s vital that you create and fund the trust with your assets before the marriage and never add any assets acquired or created during the marriage.

 

If you commingle assets acquired during the marriage in a trust containing your separate non-marital assets, a court could declare all of those assets as marital property subject to claim as part of a divorce settlement. To this end, a revocable trust only protects your separate assets from divorce if they remain separate from marital property throughout the whole length of your marriage.

 

You can also use a revocable living trust to provide for your surviving spouse and children from a previous marriage in the event of your death or incapacity. Unlike a will, assets held by a trust are not subject to the court process known as probate, so those assets would be immediately available to your spouse and kids, sparing your family the time, expense, and potential conflict of probate.

 

Note that since a revocable trust is “revocable” by definition, there is no asset protection for assets in your revocable trust, meaning that a revocable living trust will not protect your assets from creditors during your lifetime. If you want to achieve protection from both a future divorce and future creditors, you may want to consider one of the irrevocable trusts below.

Irrevocable trust created by your family: You can protect your assets from divorce by having your parents (or another loved one) establish an irrevocable trust for you before your marriage. Then, the Investment Trustee of the irrevocable trust (who could be you) could purchase all of your existing assets in an arms-length transaction and manage those assets inside of the trust, where they are totally protected from a future divorce and any future creditors.

Note that this strategy does require special provisions to ensure you cannot make distributions to yourself from the trust without the approval of an “independent trustee.” This trustee could be a best friend or a professional trustee, but cannot be anyone related or subordinate to you.

Your parents or grandparents could also leave any future inheritance you are to receive to this irrevocable trust, ensuring that your inheritance would also be protected. If this irrevocable trust is properly established and the terms are well-drafted, all assets the trust owns—and any assets left to you in the future—will be fully protected from a future divorce, future creditors, and even from estate taxes and probate upon your death. Yes, I like these trusts a lot.

 

Irrevocable trust created by you: It’s also possible for you to establish an irrevocable trust for yourself and gift your assets into the trust to keep them safe from divorce. However, this strategy is not as airtight as having a parent or grandparents establish the trust for you.

When you gift assets to an irrevocable trust, there’s a risk that a spouse or future creditor can claim fraudulent conveyance, depending on how soon you gift those assets after creating the trust. That said, if you are looking for asset protection and an alternative to a prenuptial agreement, and do not have a parent or grandparent available, a self-settled irrevocable trust can be a great second-best alternative.

Start your marriage off right
If you are getting ready to tie the knot and would like to ensure that assets you bring into the marriage don’t end up being lost in a future divorce settlement or are protected for your kids from a prior marriage, it is important to take action now. Once you are married, many planning options are off the table.

 

And regardless of your concerns about divorce, you definitely need to create or update your estate plan to protect and provide for your soon-to-be-spouse and any children you have in the event of your death or incapacity.

 

 

The Pros and Cons of Prenups | Tim W. Smith, Attorney at Law

If you’re counting down the days to your wedding, divorce is probably the last thing you and your fiancé want to be thinking about, and yet you might be rightfully concerned about what would happen to your assets in the event of a divorce—or your death. You may also be worried that suggesting a prenuptial agreement could hurt your future spouse’s feelings by making him or her think you don’t trust them, thereby creating friction before the marriage even begins.

I do recommend talking with your future spouse about your assets, what would happen in the event of your death, and also making plans in advance so you can feel confident that any children from a prior marriage (or an expected inheritance) are well-planned for no matter what happens. But introducing the topic of a prenup during that conversation is a hugely personal decision. To help you make the best decision for you I have put together a list of prenup pros and cons.

Prenup Pros

Sets clear financial expectations: For many couples, not openly discussing money and the partnership’s financial expectations can lead to big problems down the road. In fact, money problems are one of the leading reasons that marriages end, right up there with infidelity. A well-counseled prenuptial agreement could be an opportunity to start your marriage with complete transparency and clearly establish the financial and property rights of each spouse should a divorce occur or in the event of the death of either spouse. 

Helps protect your separate assets: If you have any tangible or intangible assets you are bringing into the marriage that you don’t want to risk losing, a prenuptial agreement can help shield that property from divorce proceedings or from a future “elective share” of a spouse upon your death. This can be vital if you have significant assets like a business, real estate, intellectual property, vehicles, or family heirlooms. And, if you know you’ll want to ensure your assets go to children from a prior marriage, a prenuptial agreement can protect those assets for your children.

Helps prevent a lengthy, contentious, and expensive divorce: Divorce is never fun and can often be both emotionally and financially painful, but putting a prenuptial agreement in place could make it less so. Clearly establishing the financial and property rights of each spouse when the relationship is at its most loving—and putting those parameters in a legally-binding document—can greatly reduce the chances of you two duking it out in court later if your marriage doesn’t work out. A long, expensive court battle is the last thing you need when dealing with the painful emotions and often-hefty legal fees associated with a divorce.

Helps prevent disputes over debt: Not everyone is equal in their ability to manage their money. As I mentioned earlier, disagreements over finances are a frequent reason marriages fail. Therefore, it could be a good idea to use a prenup to identify who is responsible for taking care of specific debts and liabilities. You don’t want to be stuck paying for your ex-spouse’s credit card debt when you had nothing to do with racking it up.

Prenup Cons

It’s not exactly a romantic gesture: People often perceive creating a prenuptial agreement stems from an expectation the marriage will fail or that it indicates a lack of trust. Such concerns should be respected and addressed as tactfully as possible. But the reality is marriage involves lots of issues that aren’t romantic, and dealing with such delicate matters up front could bring the two of you closer (or expose hidden red flags), regardless of whether an agreement is actually created or not. Whatever you do, however, don’t wait to have the discussion until right before the ceremony. It’s not only extremely rude, but it could lead a court to invalidate an agreement put in place at the last minute as being created with undue pressure.

It might not be necessary: What a prenuptial agreement can cover depends on what kind of assets you have and where you live. Given this, existing divorce laws might already split your assets up in a way you think is fair. For example, in community-property states, the court will divide the property you and your spouse acquired during the marriage in an equal 50/50 split, while each spouse gets to keep his or her separate property.

It can’t resolve issues of child custody, support, or visitation: It’s important to note that prenups can’t address certain issues related to children and divorce. For example, though prenups can help ensure your children from a prior marriage are able to inherit assets you want to leave them, these agreements cannot be used to address child support, custody, or visitation rights. Those issues must be resolved by the court, so a prenup would be useless if that’s all you’re hoping to achieve.

It may require two lawyers to be valid: Prenuptial agreements may be invalidated if both parties are not represented by independent legal counsel. And depending on the lawyers you each work with, lawyers who are not well-experienced with counseling, care, and conflict resolution can inadvertently escalate or intensify conflicts, rather than supporting you and your future spouse to get on the same page.

Alternative options

If you plan ahead, certain estate planning vehicles can be used to protect your assets from divorce settlements and ensure that assets pass to your children from a prior marriage in the event of a divorce. There are different types of trusts, for instance, that can be set up to allow you to protect assets for yourself in the event of a divorce, and for your children in the event of your incapacity or death.

In fact, such planning vehicles may prove much more effective at protecting your assets and providing you with more control over how your assets are distributed than a prenup. Next week I’ll cover the various ways to use estate planning vehicles to proactively protect your assets as an alternative to having multiple attorneys draft  a prenup or risk losing assets to a new spouse in the event of divorce or death.

Dedicated to empowering your family, building your wealth and defining your legacy,

 

 

 

 

Five Wishes Archives - Minority Nurse

Last week I discussed the vital importance of having updated advance directives in place considering COVID-19. Here, we’ll look at several provisions you might want to consider adding to your directives to address potential contingencies related to the pandemic.

  1. Permission to undergo experimental medical treatments: Since there is currently no proven vaccine or other effective treatment for COVID-19, you may consider adding provisions to your directives authorizing your agent to consent to—or withhold consent for—any experimental treatments or procedures that may be developed. Seeing that it could be years before an effective vaccine or cure will be available on a widespread basis, such a provision could be particularly important if you contract the virus while such treatments are still in the trial phase.
  2. Express your wishes about intubation and ventilators: In severe COVID-19 cases, patients often require intubation, which involves putting you into a medically induced coma and inserting a tube into your windpipe, allowing oxygen to be pumped directly to your lungs using a ventilator. However, some directives specifically prohibit intubation, since such measures are often a last resort and used primarily for life-support purposes. Indeed, some people’s greatest fear is being hooked up to a machine just to keep them alive.

    That said, some coronavirus patients have successfully recovered after being on a ventilator, so you might not want a blanket prohibition of intubation in all cases. But you’ll also need to weigh the fact that even if you survive after being placed on a ventilator, you’re likely to require months, or even years, of rehabilitation and may never regain the full quality of life you previously enjoyed. And if you’re elderly or have an underlying condition, the prognosis for full recovery is especially slim.

    For these reasons, you should carefully review your directives’ provisions regarding intubation and ventilators to be certain your documents accurately reflect your wishes. There is no right or wrong answer here, so it’s critical your loved ones and medical professionals know what you would want.

    To help you make more informed decisions, read What You Should Know Before You Need a Ventilator, a doctor’s perspective about intubation’s potential health consequences for COVID-19 patients. Additionally, you can find a more comprehensive discussion of coronavirus treatment decisions at the non-profit Compassion & Choices resource page, COVID-19: Understanding Your Options.

  3. Consider a liability shield for doctors and hospitals: Due to fear of getting sued, some doctors and medical facilities are hesitant to honor living wills during the pandemic. To deal with this, you might want to consider including language in your directives that “indemnifies” medical providers, facilities, and your agent from any liability incurred because of following your directions. People and institutions will be much more likely to fully honor your wishes if they understand they likely won’t get hit with a lawsuit for doing so.

Pandemic planning

The tragic reality of the pandemic is that far too many Americans are at risk of becoming seriously ill and even dying from COVID-19. In light of this dire situation, it’s vital that you and your loved ones take all possible precautions to not only mitigate your chances of catching the virus, but also having the best possible chance of surviving if you should become infected.

In the event you become hospitalized with COVID-19, having updated advance directives in place can make the medical decision-making process for both your healthcare providers and family much safer and easier, while helping ensure your treatment is carried out based on your personal wishes and values. Given the overloaded state of our healthcare system right now, facilitating your medical care in this way could ultimately save your life.

Whether you have yet to create these documents or need yours updated, don’t wait. These documents only work if you have them in place before you become incapacitated.

Dedicated to empowering your family, building your wealth and defining your legacy,

Q&A: Using a trust protector: Preservation | Family Wealth ...

Many people come to us curious (or confused) about trusts and taxes. So, today’s article is going to sort it out and clarify things for you.

 

There are two types of trusts, and each have different tax consequences.

 

Revocable trusts, which are the far more commonly used trusts, have no tax consequences whatsoever. A revocable trust has your social security number as it’s tax identifier, and is not a separate entity from you for tax purposes. It is a separate entity from you for purposes of probate, meaning if you become incapacitated or die your Trustee can take over without a court order, keeping your family out of court. But, until your death, it’s treated as invisible from a tax perspective. At the time of your death, if your revocable trust provides for the creation of irrevocable trusts, then the tax implications will shift.

 

When you have an irrevocable trust, either created during life, at death through a revocable living trust, or through a will that creates a trust, that trust has its own EIN, or employer identification number (also called a TIN or taxpayer identification number). Generally, it pays income taxes on income earned by the trust, as if it’s a separate tax paying entity.

Trust income is taxed at the highest tax bracket applicable to individuals as soon as there is over $12,950 of income, so in some cases a trust will be drafted to provide that the tax consequences pass through to the beneficiary and are taxed at his or her rates. We will often do this when creating a Lifetime Asset Protection Trust for a beneficiary, so that the trust can provide the benefits of credit protection from lawsuits, divorce, or even bankruptcy, but not have the negative tax consequence of the highest tax rates on very little income.

 

Of course, if you have a trust, and you want us to review it for the income tax consequences to your loved ones after your death, please contact us.

 

Now, let’s talk about estate taxes. Currently, if you die with assets over $11.58M, then your estate will be subject to estate tax on all amounts over that $11.58M at the rate of 40%. That’s right, 40% of your taxable state will go to the government. You can mitigate these taxes, or even eliminate them by using various planning methods, most of which are fairly complex, but well worth it if you can save your family that 40% in taxes.

 

If you are trying to figure out whether an irrevocable trust, or a revocable trust or even a Lifetime Asset Protection Trust is best for you and your beneficiaries, you’ll need to weigh that decision by looking at your financial assets, personal situation, and family goals so you can make the right choice for yourself and the people you love. If you’d like help with that analysis, please give us a call.

 

 

 

 

 

 

 

 

DIY Marketing for the Solo Entrepreneur | My Business Coach

 

There’s nothing like a major change in the economic climate to make you rethink your day job. “Business as usual” currently means a large element of uncertainty about what the future holds for your working life. Whether you’ve lost your job, had your hours cut, or have seen these things happen to people you know, your feeling of security has likely taken a hit. And, maybe that can be a good thing – something that calls you to action.

 

Last week [ https://www.calilaw.com/using-passive-income-to-escape-the-rat-race/], I talked about how now is the perfect time for you to look at  all the resources available to you, and to consider what you can do to serve the world with under-utilized gifts, skills, and talents. By doing this, you have the potential to take full control over your income, and your family’s long-term security.

 

You also may have noticed a growing trend that existed even before the coronavirus pandemic hit—more and more people are opting out of the traditional 9 to 5 and becoming “solopreneurs,” either by becoming a freelancer or starting a business.

 

As a freelancer, you would draw on the talents you’ve used as an employee, or even other skills you’ve developed outside the scope of your day job, to help support other people’s businesses. And, once you see it going well, you may decide to start a business of your own.

 

There are unlimited possibilities, and the way we live and work in today’s world means there’s never been a better time to get started. Here’s why.

 

We Have the Technology

For a solopreneur, working from home is the norm, and software companies are only helping that trend along. New tech tools exist that make it easier than ever for people to use their own computers for what would normally be done in an office environment. A lot of these tools have free options, and you can scale up your technology according to how much your business is growing.

 

Plus, as we become more connected digitally, it’s quicker and easier to coordinate teams online. That means you can coordinate with your clients and contractors to have meetings, share documents, and pay and get paid more easily.

 

 

 

Be True to Yourself

There is absolutely nothing wrong with being an employee if your role meets your needs personally, professionally, and financially. And many people feel more comfortable as part of a team rather than as the leader of the team.

 

But for others, working for themselves means they have the freedom to choose who to work with and what values they choose to uphold. Which role fits you the best?

 

Live the Life You Want

Another reason to be your own boss is to increase your flexibility. When you manage your own schedule, you don’t need someone else’s permission to go pick up your kids from school, workout in the middle of the day, or work on a project in the evening rather than the middle of the afternoon.

 

In the same way that more technical tools are emerging to meet the new economy, so are new modes of health care. Medical, dental, and other individualized and family plans just for gig workers are becoming common. Whereas it used to be very expensive and difficult for independent contractors to get affordable insurance, the barriers are starting to lower.

 

Scale Your Income

On one hand, the idea of not having a steady paycheck could be nerve-wracking. But on the other, it could open doors to greater wealth and full control, when you’ve made the transition from employee to freelancer or even business owner, wisely. When you work for yourself, you are no longer limited to earning the amount of money that your company says you should. You can raise your rates as your value increases in the marketplace. You can work more hours, or less. You can charge fees that make sense to you and that your best clients will be happy to pay.

 

A steady job is not necessarily a sure thing. If you’re in a place of transition with your life and career, it could be the right time to take the leap and begin working for yourself, and then even becoming the boss you always wish you had.

 

Dedicated to empowering your family, building your wealth and defining your legacy,

 

 

With the risks still posed by COVID-19, we all need to face the possibility that we could get sick, even if we take great care of ourselves through good nutrition, sleep, and exercise. And even if you don’t need to be hospitalized, if you do experience symptoms and test positive, you might have to stay quarantined for enough time that you’d lose income. These risks highlight the need for everyone, regardless of their age or current state of health, to have some form of disability insurance coverage.

You might think you don’t need disability insurance, especially if you’re young and in good health. Hopefully, you’re right. Unfortunately, though, becoming disabled can happen to anyone at any time. This isn’t specific to coronavirus either; it has always been true.

The sad fact is that, according to the US government’s statistics, one in four 20-year-olds become disabled before reaching retirement age. That makes it even more important that you consider how to protect yourself with insurance.

And this is especially important: you must get the actual insurance before something happens. If you’re already sick, you can’t buy disability insurance to make up for lost income.

So now is the time to prepare. Here’s some information to get you started.

What Qualifies You for Benefits (And What Doesn’t)
Let’s get clear on one thing that applies to the coronavirus pandemic: only medical quarantine qualifies you for disability benefits. That means only medical self-quarantine related to COVID-19, which is verified by a doctor, will qualify you. Socially quarantining to decrease your chance of contracting the virus in the first place won’t qualify you for your disability insurance benefits. Disability insurance also won’t cover you if you lose income or health insurance because your employer has closed or laid you off.

Also, disability insurance is not the same as health insurance. Though your failed health is the reason you’d get access to your disability insurance in the first place, disability insurance will not cover your medical bills. Disability benefits are basically to help you pay housing and food costs. But in a time when you’re dealing with disability, it’s good to have those bills covered while you are focused on healing and self-care.

There are two different types of disability insurance and knowing the difference will help you save a lot of time.

Short-Term Disability Insurance
Short-term disability insurance normally lasts around 3–6 months, sometimes up to a year or two. It covers about 60–70% of whatever your salary is. The premiums you pay are often higher than long term coverage, ranging from 1–3% of your annual income. So for someone making $50k a year, it would range between $60 to $125 every month. The percentage depends on what kind of health risks the insurance company determines you have. If you smoke, for instance, the premium will probably be higher, just like with many health insurance policies. If you have a risky job, such as dealing with heavy machinery, premiums will likely be higher as well. A major upside, though, is that payouts usually happen within two weeks, which can be a huge relief in an emergency.

Financial expert Dave Ramsey points out that, because of the higher premiums and shorter span of coverage time, you might want to consider building up a solid emergency fund with 3–6 months of expenses instead. You can consider that personal short-term disability coverage that you don’t have to pay premiums on. But if you’re living paycheck-to-paycheck and can’t foresee saving that much (like 80% of American workers, according to CNBC), and your employer doesn’t offer short-term disability insurance, it is something you may want to consider buying yourself.

Long-Term Disability Insurance
This is the type of insurance that is most important to get, no matter what. This is the type that will last through a long recovery or treatment period. Look for a “non-cancellable insurance policy”, which will keep the insurance company from being able to cancel your policy if you have any health changes.

Long-term disability insurance may pay you benefits for a few years or until your disability ends. Most policies cover 40–60% of your salary, but ones that pay up to 70% do exist, and you should try to find one. These policies also cost 1–3% of your yearly income, but they tend to be on the lower side than short-term. A major difference between the two forms of insurance is that it can take up to 6 months to see a payout. This means that it’s not the best option for covering costs if you have to go into medical quarantine for COVID-19.

We recommend that, even if you decide to pass on short-term disability in favor of emergency fund savings (or if your employee already covers it), you should definitely consider a long-term policy to protect your earnings. Remember, though, it will only pay a percentage of the income you’d be taking in otherwise. Make sure you also have health insurance and as much savings as you can get to protect yourself as well.

Dedicated to empowering your family, building your wealth and defining your legacy,

The pandemic is causing us to consider a lot of things that we may not have before, even if maybe we should have.

It brings to mind something a colleague of mine shared recently. One weekend last year, she left her small children with a babysitter and headed out to enjoy dinner at a restaurant with her husband. But as she sat there, a thought crept into her head and wouldn’t leave.

What would happen to her kids, she thought, if she and her husband got into a car accident on the way home?

And even though my colleague is a lawyer herself, and she had a will at home naming guardians for her kids, she didn’t have a definite and clear answer that provided the comfort she wanted. Her will was in a vault, and her named legal guardians lived on the other side of the country.  It was that thought that spurred her to take action.

Chances of COVID-19 Infection in the Family
If you are young and healthy, it might be hard to imagine that you won’t be there to care for your kids. But if the COVID-19 pandemic is showing us anything, it’s that even a healthy person can contract a serious illness that leaves them incapacitated and unable to care for their children.

If there is more than one adult in the house, that may alleviate some of your worry. While naming legal guardians for your kids usually feels especially urgent for a single parent, parents with partners aren’t off the hook. You should take precautions too, especially since there are high infection rates among people who live in the same household.

A professor at the University of Florida has found a more than 19% chance that someone else in the household of a person infected with COVID-19 will also contract the disease. Researchers estimate the average incubation time is about four days and could be infectious for up to two weeks. That means it’s not outside the realm of possibility that you and your partner could both contract the illness, possibly at the same time.

An Easy Way to Find Guardians for Your Children
Even if you never contract COVID-19, you are of course still human, and vulnerable to accidents and other dangers that could separate you from your kids—either temporarily or permanently.

If you haven’t already done so, there’s no better time to decide who would care for your children in the immediate term if something happens to you, even on a short-term basis. 

And, if you are having a difficult time deciding who to name as legal guardians for your children, we can even help you make the right decisions.

Officially answering the question of who will care for your kids if you can’t—even for a short time—is one of the best things you can do right now. It is a real, concrete way you can protect your kids during this scary time.

If you need help with the process, please do give us a call and we’ll be glad to walk you through it.

Dedicated to empowering your family, building your wealth and defining your legacy,

If you’re a parent, you may feel even more guilty than usual.  If so, you are not alone. Currently, the burden is on you to both carry on with your work and manage your child’s full-time care and education. Two full-time jobs that you’re trying to do by yourself, likely without teachers or care providers to help you.

If you are like most parents, you were probably struggling with guilt even before the virus. You may not always make it to every award ceremony or recital, and you might not have as much time to play with your kids or help them with their homework as you’d like. Those feelings of guilt may now be compounded by all the additional responsibilities you’ve taken on in a short space of time.

Take a deep breath and let yourself off the hook. I’m sure you are doing the best you can, and your kids see it, and know it too, even when they are being ungrateful pains in the rear.

Keep reading for a few ideas about how to shift the guilt.

Name Legal Guardians
Let’s start with one thing that is fully within your control, can help to alleviate feelings that you are not doing enough, and that you can get handled easily — name legal guardians for your kids, so only the people you choose will take care of them if anything happens to you.

Legally documenting your choices for who you want to take care of your kids if you can’t is a great first step to getting legal planning in place for the people you love. (Yes, I said “choices” because you want to name at least two alternates after your first choice.) And doing so can provide you with a lot of relief, if you have not yet taken care of this for your kids.

Quality Time Doing…Nothing
While you’re probably already spending a significant amount of time with your kids, you may be too tired or overwhelmed to plan big activities, or the things you used to do for “quality time” may not be available.

So, what’s a parent to do?

Nothing.

Yes, you read that right, nothing.

If you can take 15 minutes or so out of your day and do nothing with your child, it could be the best 15 minutes you spend with them, and with yourself, all day.

It’s truly one of the best gifts you can give to your kids, and the best part is you don’t have to do anything. Mostly, our kids really just want to know we are there, and will give them our full attention, without screens, even if they aren’t paying attention to us.

Talk About It
If you’re on an emotional roller-coaster right now, your kids are probably having some similar struggles. This is an opportunity to connect with them, and a good time to show them a little vulnerability of your own. Remember how important sharing words of love and comfort can be, both to them and to you.

If you have been feeling alone and need support, you can also reach outside of your family for help. Sometimes venting to your friends is enough, and chances are they’ll be able to relate! But if you are not getting the support you need, there are professionals who will communicate via phone and even text message. You can always reach out to us for a referral but you can also find local therapists and phone, video, and online therapists through Psychology Today’s directory.

The point is, you are NOT alone, and you don’t have to feel alone. There are resources available and if we can be of support to you in any way, please don’t hesitate to get in touch.

Dedicated to empowering your family, building your wealth and defining your legacy,

Wills, trusts, health care directives, powers of attorney, and legal guardian nominations are on many of our hearts and minds as COVID-19 compels us to face our own fragility and mortality.

It’s not as if we didn’t already know we are all mortal, but within our current reality, that mortality becomes all the more real. And one way to feel some control over what’s happening out there is to make sure we all have our legal affairs in order at home. That way, if something does happen to us, our families aren’t left with a big legal mess to clean up while they are grieving.

If you are trying to get your financial house in order right now, you may be just getting some basic documents in place. You may even be doing it yourself.

If that’s the case, it’s very important for you to know that the cost of a failed plan can be very high for the people you love. Plus, if your documents are not properly signed, they will not work—period. End of story. And if your documents don’t work, your family could be stuck in court or conflict, which is probably the exact thing you want to avoid by handling your estate planning now.

There are many ways plans fail, but one of the worst ways we see is when someone starts a plan and doesn’t get it signed properly. You do not want this to happen to your family, trust me. If you care enough about estate planning, you will want to make sure your plan will work when your family needs it.

That means you need to make sure your legal documents are actually signed and signed in the right way. Some legal documents require two witnesses, and some require notarization; however, in today’s social-distancing reality, these signatures could be difficult to come by. Some states have allowed remote notarization, California for some reason, has not.

While we understand you likely have a desire to get documents in place now, we also believe there is going to be a significant increase in conflict and litigation because of DIY estate planning documents for the future. Don’t let that happen to the people you love.

Dedicated to empowering your family, building your wealth and defining your legacy,