Online Wills? When You Should and When You Shouldn’t

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With all the media about “digital wills” and “online estate planning” it could be tempting to think you can do your estate planning yourself, online. And, maybe you can. But, if you do, you need to know the potential pitfalls. Online estate planning could be a big trap for the unwary and end up leaving your family worse off than if you had done nothing at all.

First and foremost, before you do any of your own online estate planning, it’s critical to understand your family dynamics, the nature of your assets, and what the state of California would say should happen to your assets if something happens to you. You see, if you don’t do estate planning, the state does have a plan for your assets if you become incapacitated or when you die. You need to know what that plan is, so you know whether you want to change it.

But Don’t I Need a Will and Can’t I Just Do It Online?
Here’s the funny thing about estate planning: the one legal document that everyone thinks they need most actually does the least.

Every adult does need SOME estate planning. A will is always a good idea because it says who gets, and who oversees distributing, what you have. However, if the default law would have given your assets to the same people you would choose and authority to the person you would name anyway, then an online will would probably do nothing valuable for you at all.

Even a properly drafted will does not keep your family out of court (a will must always be adjudicated by a judge). And if drafted improperly, it could require the person you’ve named to handle things for you to get a bond, which is like an insurance policy. These are expensive and can be hard to get for an executor who has less than a stellar credit score. If your named executor cannot get a bond, it would then mean the court would appoint a court ordered executor, and that can be costly for your estate. This is just one of the examples of how having a will prepared online, can create more expense for the people you love. Unfortunately, all the online will preparation solutions I’ve reviewed don’t even mention this risk.

So, yes, you can do your own will online, but at what potential cost for the people you love?

The Problem with Online Wills
DIY online estate plans (and even many estate plans created by lawyers) usually include three or four basic documents: a will, a financial power of attorney, an advance health care directive, and possibly a trust.

But, honestly, completing these documents without counsel is simply not enough to guarantee your estate will be executed as simply, affordably, and effectively as you would wish.

For instance—are you sure there isn’t some missing consideration that could lead to turmoil as your family tries to figure it out? Did you know that most family fights don’t even happen over money, but over lack of clarity? Have you considered all your extended family, including stepchildren and ex-spouses? What will be done with all the personal, sentimental items you want to pass on to your children?

And there have been far too many scenarios where seniors, even those who had some estate planning done, get caught in the court system or even declared incompetent, and then have court-appointed guardians named, who then drain their accounts. In many cases, their assets are gutted before they can go to their kids. You don’t want that to happen to you or your family and a do-it-yourself will makes that outcome more likely, not less.

What about making sure your family knows what you have and where it is? An online will won’t tell them that. There’s nearly $10 billion being held in the California department of unclaimed property; much of it because someone died and their family lost track of their assets.

So how can you be sure you’ve got everything covered, legally?

With online wills and DIY estate planning docs, you wouldn’t even know what questions to ask to uncover the potential risks to the people you love, who deserve to receive what you’ve created in your life, without a big mess.

Think about this: do you know anyone who has lost family relationships because, after a loved one died, the family ended up in an irrevocable fight? Maybe this has even happened in your own family. I see it all the time and the consequences—both, financial and emotional—can be devastating.

And, it’s all unnecessary.

Yes, even if there are attorneys on staff at these online companies, they don’t get to know you and your family dynamics enough to spot the real issues that could arise. They are, instead, focused on a one-size-fits-all solution and easy answers to complex issues.

The Kind of Help Your Family Deserves
Many lawyers who specialize in estate planning often base their work on template documents. Even if they are well-intentioned, they’re working with an old, traditional system that places the focus solely on providing documents. But the documents are only as good as the understanding a lawyer has about your family dynamics, the nature of your assets, how the law will apply to your situation, and how the documents can be written as simply as possible to achieve your wishes. You need much more than just a set of four or five filled-out template documents to address all those complexities.

Your plan should include an inventory of your assets and guarantee they are all owned in a way that will keep your family out of court and conflict while ensuring everyone named in your plan has what they need and understands your choices. Most importantly, you should understand your plan and ensure that it passes along more than just your money.

Do it yourself estate planning is risky. While it may be better than nothing, it may also be worse. And it won’t be until after you are gone that your loved ones find out that answer.

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

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Doing the Right Thing for the People You Love During the COVID-19 Pandemic

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Right now, huge numbers of people are coming face to face with their own mortality, and realizing they need to plan for the worst. This goes not just for those in the “senior” category, but for all of us, no matter our age. We are facing the reality of our mortality, and many of us are doing it courageously by taking this as an opportunity to learn what we need to do for the people we love.

Recently I heard a tragic story from a colleague whose client lost her fiancé to COVID-19. Because she wasn’t listed on her fiancé’s health directive and HIPAA waiver, she could not get anyone to update her on his condition once he entered the hospital.

Naturally, she didn’t give up trying, and eventually someone told her that he wasn’t in the ICU anymore. She was enormously relieved, but when she hadn’t heard anything else by the next day, she called again for news. Finally, after being transferred several times, she learned that the reason her fiancé wasn’t in the ICU was because he was in the morgue. He’d passed away the day before, and no one had told her. Heartbreaking.

Nobody expects something like this to happen, especially to people who are healthy and making plans for their own futures. But sometimes the worst does happen, and if it does, you want the people you love to be able to grieve properly, without leaving them with a mess of confusion on top of it all.

Now, think about your own situation. What will happen to your loved ones, and the assets you’ll leave behind, if you become sick or die?

Without a doubt, you’d want to ensure certain people in your life are informed if you have to go to the hospital and kept up to date on your condition while you are there. You’d also probably want to avoid them having to go through a drawn-out court process to handle your estate after your death or save them from the fate of not being able to access your assets if you are hospitalized. This article is all about you having the tools you need to make sure everything is in place to do the right thing for the people you love, just in case something happens to you.

Covering the Bases
First, you need to have a worst-case scenario conversation with your family. A lot of people try to avoid conversations about death, but the fact is, we will all die. It’s better to face that with those we love so that when the time comes, we will be as ready as we can be, and so will they.

Create an Asset Inventory
This is something you can get started on right now, by yourself, without the help of a lawyer. It is a great resource to leave for your loved ones so they know where to find everything that is important to you, and will be important to them, if something happens to you.

First, get out your calendar and schedule an appointment with yourself. Set aside an hour or so to put all your asset information in one place (we use a spreadsheet when we do this for clients): real estate, bank accounts, retirement accounts, life insurance, stocks, bonds, business interests, etc.

Update Your Health Care Directive
This is extremely important if you want your loved ones to avoid the tragic situation my colleague’s client found herself in. Do NOT delay reviewing and updating these documents.

Your Health Care Directive should have three parts:

  • A Living Will/ Medical Directive, which states how you want decisions to be made for you.
  • A Medical Power of Attorney, which states who should make these decisions if you can’t make them yourself.
  • A HIPAA Release that allows medical professionals to disclose information to your Medical Power of Attorney/Agent.

Name Legal Guardians for Your Kids
A very important thing for all parents of minor children to do is name legal guardians for your children. Think about what would happen to them right now if something were to happen to you, for both the long term and the immediate future. This is the single most important thing parents of minor children should do because it would have the greatest impact on – or leave the biggest hole for – our minor children if something happens to us.

Going Beyond Just the Basics
The goal in setting up an estate plan is, ultimately, to keep your loved ones out of court and out of conflict. To do that, you must make the right decisions during the planning process, retitle assets so they are protected by your plan, and ensure your plan stays up to date for the rest of your life.

Estate planning is all about merging your family dynamics, assets (both material and non-material), and the law into a cohesive plan which accomplishes all that you really want to do for the people you love.

If you are ready to face your mortality courageously and want to ensure your family is protected and provided for no matter what, don’t wait. Get the help of a professional (someone who’s providing virtual planning sessions) and get started now.

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

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How To Get Access to Your COVID Stimulus Money

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Coronavirus Aid, Relief, And Economic Security Act Badges: Pile of CARES Act Buttons With US Flag, 3d illustration

It’s the beginning of the month, and bills are coming due. If you are stressed out, it’s important that you know where and how to get access to financial relief. Please consider this not only for yourself, but for your adult children and elderly parents, too, even if you do not need it for yourself.

On March 27, President Trump signed a $2.2 trillion stimulus bill into law that will hopefully provide some relief for many, perhaps including you. The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) sends money directly to Americans, expands unemployment coverage, and funds loans and grants for small businesses. So, let’s look at how you can access these funds.

Who gets direct stimulus money and how much do they get?
All eligible adults who have a Social Security Number, filed tax returns in 2018 and/or 2019 will automatically get a $1,200 direct stimulus deposit from the government within a particular income bracket. This is true whether you have been laid off, are currently employed, or are currently self-employed or an independent contractor.

To get the full amount:

  • A single adult must have an adjusted gross income of $75,000 or less.
  • Married couples with no children must earn $150,000 or less for a combined total stimulus of $2,400.
  • Every qualifying child 16 or under adds $500 to a family’s direct stimulus.
  • If you have filed as head of household, have dependents, and earned $112,500 when you last filed, you will get the full payment.

This payment is not considered income—it’s essentially free money from the government. Therefore, it will not be taxed. It also is not a loan, so if you are eligible, you will not be charged interest or expected to pay it back. As of right now, the stimulus is a one-time payment.

Are there exceptions?
Payment decreases and eventually stops for single people earning $99,000 or more or married people who have no children and earn $198,000 annually. Additionally, a family with two children will no longer be eligible for payments if their income is over $218,000.

If you are an adult claimed on your parent’s tax return, you do not get the $1,200.

What do I need to do to get my stimulus money?
For most people, no action is necessary. If the IRS has your bank account information already, it will transfer the money to you via direct deposit. If, however, you need to update your bank account information, the IRS has posted on their website that they are in the process of building an online portal where you can do so.

An important note: if you have not filed a tax return in the past couple of years, or you don’t usually need to file one, you should file a “simple tax return” showing whatever income you did have, so you can qualify for these benefits.

 You can continue to check for updates on how to make sure you get your payment by regularly checking for updates on their Coronavirus Tax Relief page.  https://www.irs.gov/coronavirus

When will that money come through?
Treasury secretary Steven Mnuchin says that he expects most people will get their payments by Friday, April 17th, though other sources say that it could take up to 4–8 weeks.

Loans (and Grant Money) for Independent Contractors
If you have a business, are an independent contractor or are self-employed, you can apply for loans, and get a $10,000 grant from the government via the CARES Act.

These are Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. Please note that there are still elements of these loans that are not fully understood, and we are giving our best legal interpretation based on information from the Small Business Administration and the US Chamber of Commerce.

VERY IMPORTANT: If you apply for EIDL right now, you can claim a $10,000 advance that does not need to be repaid. It’s essentially a grant that can be used to keep your business alive. You can apply for it right here: https://covid19relief.sba.gov/ Do it, now. This is applicable if you are an independent contractor, or a self-employed business owner. Basically, if you file a separate tax return for your business or a Schedule C on your personal tax return, you SHOULD qualify. But please see note above that we don’t really know how all of this will be implemented. What we do believe is that you should get your application in for the EIDL grant money.

The PPP applications will be made through your bank, so contact your banker, if you believe you will need the PPP loan, which will be forgiven if used for payroll specifically in the weeks after receiving the loan funds.

You should have the following information on hand to fill out either of the two loan applications:

  • IRS Form 4506T—Tax Information Authorization—completed and signed by each principal or owner,
  • Recent federal income tax returns,
  • SBA Form 413—Personal Financial Statement,
  • SBA Form 2202—Schedule of Liabilities listing all fixed debts,
  • Any profit and loss statements, recent tax returns, and balance sheets.

Here’s a bit more information about both loan programs.

Economic Injury Disaster Loans (Above and Beyond the $10,000 Grant)
Every state has been declared a disaster area due to COVID-19, and therefore your business may be eligible for an SBA economic injury disaster loan (EIDL). This is a low-interest loan that has terms that can last as long as 30 years, and can provide you with capital loans of up to $2 million and an advance of up to $10,000.

Economic Injury Disaster Loans (EIDL) can be used to cover:

  • Paid sick leave to employees unable to work due to the direct effects of COVID-19,
  • Rent or mortgage payments,
  • Maintaining payroll (to help prevent layoffs and pay cuts),
  • Increased costs due to supply chain disruption,
  • Payment obligations that could not be met due to revenue loss.

Whereas the application used to take hours, it now only takes about 10 minutes to fill out. A couple of important notes, however:

  • SBA loan reps have said that they are focusing on processing applications filed after March 30th, so if you have a confirmation number starting with 2000, you should probably reapply.
  • Be sure to check the box toward the end of the application if you want to be considered for an advance up to $10,000 (as I mentioned at the top of the article, this amount does not need to be repaid and so is essentially a grant!).

You can apply for disaster loan assistance here: https://covid19relief.sba.gov/

Coronavirus Emergency Paycheck Protection Loan
The CARES Act’s $350 billion allocation to small businesses is specifically called the Paycheck Protection Program (PPP). It specifically incentivizes borrowers who maintain their payrolls, i.e., don’t lay off their employees. This program will fully forgive loans where at least 75% of the forgiven amount is used to pay employees for the eight weeks following the loan. If you lay off employees or cut salaries and wages, your loan forgiveness will also be reduced.

PPP loans can be used to cover:

  • Payroll costs,
  • Group health care benefits during periods of paid, sick, medical, or family leave, and insurance premiums;
  • Interest on a mortgage obligation,
  • Rent, under lease agreements in force before February 15, 2020,
  • Utilities, for which service began before February 15, 2020,
  • Interest on any debt incurred before February 15, 2020.

Small businesses with less than 500 employees (including sole proprietorships, independent contractors, and those who are self employed) are eligible. You can apply through SBA 7(a) lenders, federally insured credit unions, or participating Farm Credit Systems (ie your bank). Other lenders might be on the scene soon as well, but a lot of them are currently being reviewed for approval to the program.

Full details are available here: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp

You can also see find a Paycheck Protection Application here, and be prepared when applications open on April 3rd to apply through your local bank: https://www.sba.gov/sites/default/files/2020-03/Borrower%20Paycheck%20Protection%20Program%20Application_0.pdf.

What if I am not eligible or need more money?
If you don’t qualify for stimulus money, all is not lost. There are several other ways that the CARES Act has made it easier for you to get a short term financial boost.

  1. Unemployment
    The CARES Act has also legally expanded unemployment benefits, expanding them for 13 more weeks and adding an additional $600 per week. Some self-employed, freelance, and independent contractors may be eligible, too. These benefits vary from state to state, and you can find how to apply at the Unemployment Benefits Finder site: https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemployment-benefits.aspx?newsearch=true. Be sure to have your Social Security number, the Social Security numbers for dependents you are claiming, and your driver’s license or state ID handy while you apply.
  2. Private Loans
    If you’re in good standing with your bank, you may be able to get a “bridge loan” extended to you in order to cover your bills. Several major banks have set aside money specifically for the purpose of supplying these loans to customers that they deem eligible for them.
  3. Retirement Account
    If you don’t have another rainy-day savings account, the CARES Act waives the 10% penalty tax that you would normally get for withdrawing money early. The criteria is pretty open-ended, and applies to people who experience financial hardship because of COVID-19 in some way.

If you are experiencing fear about affording to pay your bills, remember that you do have options for accessing savings, loans, and stimulus money. Stay up to date on the above resources, and if you need any help navigating your way through this uncertain period, we are here to help.

Bel well and stay safe.

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The Most Important Legal Actions to Take Right Now

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As you already know, the COVID-19 pandemic means there’s no more “business as usual”. So don’t just hope you can survive until things return to normal. Strategize, now, on how you can take what control is in your sphere of influence. Once you have attended to your (and your parents’) immediate needs, it will be time to consider more long-term plans.

In this time of stress and chaos, your parents may be resistant to talking about estate planning. It may feel too pessimistic to plan for the worst amid a scary situation. However, that’s exactly why it’s important right now to do so. Plus, since hopefully you are staying inside, you may have the time to dedicate to getting these tasks taken care of.

Here are actions you can, and should, take to ensure you and your family are fully protected legally.

Update Your Health Care Documents

Above all, you first need to ensure that both you and your parents have your health care documents in order. This will be an invaluable reference point for those who are assisting you, whether they be friends, family, or medical professionals.

There are three important and distinct documents you should have in place: Your advanced directive, HIPAA waiver, and living will. They are separate documents but all work together. Think of them like the legs of a stool. If just one is missing or defective, the stool will fall – with you in it!

Your advanced directive identifies and gives legal authority to whom you would like to make your medical decisions if you are unable to do so yourself. Many people think spouses automatically have this legal authority and therefore don’t need this type of document for each other. That is a mistaken belief which can cost married couples substantial time, money, and anguish when a medical emergency arises.

A HIPAA waiver is important because even though your advanced directive gives authority to someone of your choosing to make medical decisions for you, privacy laws will prevent your doctor from sharing your medical information with that person. I see a lot of advanced directives which include a HIPAA section, but this is not legally sound and often fails. For starters, the privacy laws mandate the HIPAA waiver be written in a certain font style and size. Trust me on this. You want your HIPAA waiver to be a standalone document.

Your living will is different from your last will and testament. While a last will deals with the decisions to be made after death, a living will pertains to decisions which are to be made while you are still alive. This is where you will provide guidance on when you would want to be placed on life support, removed from life support, whether you want to donate your organs, etc.

Even if you have already created your medical directives, I urge you to take out any existing documents now and review them. Have your circumstances changed? Do you have additions to make? Encourage your parents to do the same thing, and to communicate with you about what their documents say. If you are unsure whether your health care documents are in ship-shape, call us, and we’ll be happy to review them for you.

Ensure Your Estate Plan is Up to Date and In Order

Your healthcare documents are an important start, but you should also review (or create) powers of attorney, a last will, and perhaps even a living trust. Remember that it’s never an inappropriate time to plan. Getting this in order will provide you and your loved ones peace of mind. And we’re here to support you, virtually now, as well. We can take care of you, and your family, fully online. Call us, we’re here.

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

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How to Talk To Your Parents and Get Them To Stay Home

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I’m dealing with working from home, managing my business and my team remotely, operating in shifts with my wife to take care of my children during the day, homeschool them, all while keeping a nervous eye on our stockpile of toilet paper. But perhaps my biggest challenge is feeling like my parents and in-laws are taking COVID-19 as seriously as I wish they would.

As of March 25th, the number of confirmed cases of COVID-19 across the United States was 54,453 cases across the United States with 737 confirmed deaths from the virus. And these numbers are still rising exponentially. 

When we first became aware of the novel coronavirus, there were several TV pundits and other authority figures saying that the virus was just another version of the flu. But in other parts of the world, we’ve seen COVID-19 overwhelm healthcare systems in a way the flu virus just hasn’t.

It seems, though, that many people of the older generation may still not be taking this seriously. And hey, they are the most battle tested of all of us. They’ve seen it all and survived it all and aren’t generally the types to give in to panic and stress. 

That said, they are also among the most vulnerable to the effects of COVID-19. And even with the stay at home order in place, I still feel like my parents are taking too many unnecessary risks. Here’s how I’m trying to express my concerns to them:

  1. Listening to them and determining the worries they have.
    I want to know what they have heard, what they are frustrated about, and what they are skeptical about. Everyone is frustrated with lines at the grocery store, toilet paper hoarding, and the hysteria of the crowds around them. I’m sure my parents do not want to feel like they are one of “those people.” I know I don’t. So I’m just trying to assure them that taking some precautions, especially staying home, is completely reasonable and can be done in a non-panicked way. I’m also trying to support them to make alternative arrangements during this time so they don’t have to go out.
  2. Emphasizing the risk in practical terms.
    I’m sharing articles and news with them that state the facts, soberly, like this one. My parents are bright and already have a good understanding about how viruses spread in general and they already know the basics of how important it is for them to wash their hands. But I want to ensure that is at the top of mind for them every day right now.
  3. Showing them I’m taking it seriously.
    I’m not getting together with my parents unless absolutely necessary, and when I do, I’m wearing a mask and keeping my distance as much as possible. I also shared the video created by Max Brooks, son of legendary comedian Mel Brooks, with them. Max created a PSA to convince younger people to be cognizant of how they might spread the virus to people who are the most vulnerable to it. It presents the situation in a succinct, somewhat lighthearted way. 

If you’re experiencing something similar with your loved ones, I’d love to hear your thoughts. Together, we can get through this. Let’s make sure our parents come through this with us.

Be well and stay safe.

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

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Are You Clear About How Your Parents Estate Plan Will Impact You?

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Do your parents have an estate plan? Is it up to date? No matter how rich or poor you or your parents are, especially in the wake of the COVID-19 pandemic, you need to be asking these and several other questions. When your parents become incapacitated or die, their affairs will become your responsibility, and it will be impossible to ask them to clarify anything. So, if you do not know whether they have estate planning in place to help you best support them, read on.  

The Best-Case Scenario

In a best-case scenario, your parents have an updated estate plan, and they’ve walked you through it. They have provided an inventory of their assets that’s easy for you to find listing out everything they own and how it’s titled. Ideally, the plan also includes directions on how to handle their non-monetary assets, and a video, audio recording or written stories that pass on their values, insights and experience. On top of all that, it’s best if they’ve introduced you to the lawyer who set it all up, so you know who to turn to when the time comes.

Less-Than-Ideal Scenarios

If that’s not the case, you could have some holes to fill. If they’ve not done any planning at all, now is the time to encourage them to get it done and support them in any way you can. If they already have a completed plan, it’s likely that it has been sitting on their shelf or in a drawer for years, not updated, with no inventory of their assets and no way to capture and pass on their intangible assets. Even worse, their lawyer could have been using outdated systems that are no longer recognized, which can lead to trouble down the road.

It’s also possible that if they’ve never updated their estate plan, it no longer tracks with their current assets, and may even require complex actions that are no longer necessary upon their death. Worst of all, you may have no idea what your parents own or how to find their assets, and at their incapacity or death you’ll be left with a mess, even though your parents had good intentions and thought their planning was handled.

The Worst-Case Scenario

In a worst-case scenario (which we see more frequently than we’d like), your parents may have worked with someone who exerted undue influence over their decisions. This person may have led them to write something into their plan that they either didn’t really want to or wouldn’t otherwise have chosen if they understood all their options.  

Either way, it’s critical for you to know who your parents have worked with to create their estate plan, and how and why they made the choices they did. If you aren’t in the know, now is the time to find out. 

If your parents are already discussing these matters but have not yet included you, you can ask them to schedule a family meeting with their existing attorney. On your parents’ request, that attorney should look forward to walking you through your parents’ planning, the choices they made, and how you will be impacted in the event of their incapacity or death.

You want to develop a relationship with their estate planning attorney now. This advisor can be one of the most important supporters of you and your parents during your time of need. It’s a relationship you will want to establish before you need it, so you won’t be scrambling during a time of crisis.

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

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CORONAVIRUS: Impact to Your Wealth, Health and Happiness

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While it’s still hard to tell how the Coronavirus will impact us in the long term, it’s become a subject that’s impossible to ignore. While some are advocating we prepare to be quarantined, potentially for months, others are saying the virus is nothing more than a common cold. The World Health Organization takes a more middle-of-the-road approach, advising we take precautions without becoming alarmed.

My approach, as always, is to empower you to make informed decisions for you and your family. Here are some resources to stay up to date on the virus  so you can make decisions based in fact as you work to keep yourself and your loved ones healthy.

For your reference, here’s a link where you can track infection and death rates over time. As you can see, the numbers are increasing daily. Most of the people who die from coronavirus are over the age of 60, and people who have chronic illnesses like heart disease and diabetes have a 5–10% higher chance of dying from it.

As of March 11, 2020, approximately 125,000 people had been infected with the Coronavirus, and nearly 4,600 have died. It’s being reported that symptoms are similar to a bad respiratory cold, with fever and cough. Taking precautions now to up your intake of immunity-boosting supplements, the same way you might if there was a cold circulating in your community, might help.

Safety Tips:

  • Wash your hands, more than you usually do, and consider wiping down surfaces – don’t forget your phone – with sanitizer wipes.
  • Have emergency food, water, and medical supplies prepared (always a good idea).
  • Practice breathing through your nose instead of your mouth. Nose hairs offer natural protection from airborne viruses. This is especially important for those living in urban areas.
  • Consider avoiding crowded places like airplanes, churches, theaters, etc.
  • Make sure you are drinking plenty of water.
  • If you smoke, it’s an especially good time to quit to protect your lungs.

In the event you or a loved one do get sick and need to go to the hospital, it’s important to prepare a list of your needs. Include your preferred hospital, your primary care doctor and any specialists, food allergies and preferences, and supplements and medications you take. Also indicate any procedures you desire or don’t desire. Additionally, you should name the person or people authorized to make healthcare and financial decisions for you if you cannot make them for yourself. We can help you prepare these documents in our office, either to take precautions against coronavirus or for any other reason. Please get in touch if you need help with any of this.

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

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5 Tips to Get Legally and Financially Prepared for a Local Coronavirus Outbreak or Quarantine

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I’ve always believed “the buck stops here” regarding protecting and providing for my family, no matter what. They are my responsibility, period. One of the ways that feeling manifests itself in me is that I’ve always had a stockpile of supplies, food, and water to last my family for months if normal services and goods aren’t available for whatever reason. My wife’s continually given me a hard time about the corner of the garage dedicated toward that endeavor until this weekend when she abruptly asked, “do we have enough food and water to get us through a quarantine if that happens?” I smiled, smugly, and responded, “we’re good; we’ll be okay.”

But while much of the focus has been on how to prevent catching the Coronavirus, or what to stock up on to survive if the pandemic wallops the U.S. like it has elsewhere, little has been mentioned on how to best legally and financially prepare for such a scenario. We know from what’s happening abroad that national economies as well as individual families are taking big financial hits in lost wages, not to mention the medical nightmare many people find themselves in. While panic and overreaction do more harm than good, I’m a big believer that you should always have your eyes wide open and ensure your family is prepared for these kinds of possibilities.

Here are five important tips to help you best prepare for the legal and financial aspects of a local Coronavirus epidemic or quarantine:

  1. Make Sure Your Medical Power of Attorney Is Accessible. Completing your medical power of attorney where you formalized your wishes for your medical care was a great first step, but make sure it would be accessible if/when it’s needed. Make sure the person you appointed to make your medical decisions if you are seriously ill or incapacitated knows where you keep the document. Also, file a copy with your primary care physician so it’s available through that avenue well before it’s needed, thus avoiding delays or confusion. If you have minor children, make sure they have a medical power of attorney as well, something we include with every Child Protection Plan.
  • Nominate Temporary Guardians for Minor Children. Most estate plans will include a provision in a parent’s will nominating permanent guardians to raise their children if the parent passes away. However, few law firms offer a Nomination of Temporary Guardian form as well. Temporary guardians (AKA first responders) are 3-4 designated family members or friends who live within 20 minutes and have legal permission to care for your children in an emergency scenario (thus significantly limiting the chances that the State would have to step in). If you have not named temporary guardians for your children, you should contact your estate planning attorney right away.
  • Make Sure You Have Enough Life Insurance. In my role as an estate planner, it surprises me how many families are either uninsured or considerably underinsured. Having a lone life insurance policy through your employer is rarely enough to cover what your family would need if you were to pass away during your working years. Plus, sometimes there are limiting provisions in those work policies requiring the death be caused by an “accident” as opposed to an illness such as the Coronavirus. You need to know how much life insurance you have and the exact death scenarios your policy covers. If you are not 100% certain that your existing insurance policies would cover your family’s needs, you should arrange for your existing life insurance policies to be reviewed by a trusted life insurance professional. Ask me for a referral if you don’t already have a trusted advisor in your corner.
  • Have an Emergency Fund. A Coronavirus quarantine is likely to last 2-3 week, which is a significant amount of time to lose out on a paycheck or have your business shut down. Beyond that, a mass quarantine would certainly affect our overall economy, causing residual effects to your finances over time. Most people do not have more than $1,000 in emergency funds, according to financial expert Suze Orman. She recommends that families save at least eight-months’ worth of living expenses in non-retirement/accessible financial accounts to be sufficiently prepared for any unexpected life event. For business owners, you also need to have enough financial reserves for your business as well.
  • Make Sure Your Trust is Funded. Setting up an estate plan is a great first step to protecting your loved ones in an emergency, illness, or death, as it ensures that your loved ones would be financially, emotionally, and physically taken care of. However, too many people fail to properly transfer their assets to their trust. Your estate planning attorney should help you make sure that your bank accounts, brokerage accounts, business interests, life insurance policies, real properties, retirement accounts, and your other financial assets are all properly connected to your trust. Without completing this very important step, those assets left outside your trust are subject to probate proceedings.

While individually, none of us can control a Coronavirus epidemic or quarantine from happening here, we can certainly make sure our families are legally and financially prepared. Call your trusted advisor or start by scheduling a complimentary planning session with a member of our team if you are not yet prepared, or to have your existing estate plan reviewed to ensure it has you as prepared as you should be.

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

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What Happens to Your Pets When You Die?

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If you have pets, I’m sure you love them, but you may not have not provided any written or, better yet, legally documented instructions about what should happen to them if you become incapacitated or when you die. If you have, read this article with an eye to ensuring you’ve checked all the right boxes. If you haven’t, read on because it’s time to act, and this knowledge will make it easier for you to do things right.

Let’s start by looking at what happens if you become incapacitated or when you die if you’ve done nothing to ensure the well-being and care of your pets. It may be that if you do nothing, one or more of your friends and family will step forward to take care of your pets. But, will the person who steps forward be the person you would choose? And, will they take care of your pets the way you want?

If you do care, you need to take action rather than just leaving the well-being and care of your pets to chance. If you don’t designate at least one person, and ideally one person plus backups to care for your pets, and provide instructions to the people you’ve named, and perhaps also money to support the care of your pets, your pets could become a burden to your friends and family, or even end up at the humane society.

Steps to Plan for Your Pet’s Care in Your Estate Plan
So, step one in all circumstances is to legally name the people you would want to care for your pets in the event you cannot.

Step two is to give the people you’ve named specific instructions about how you want your pets to be cared for if you cannot do it including type and amounts of food, any medications needed, exercise plan, and any other special things you know about your pets that any caretaker should know.

Finally, step three is to consider whether you need to provide financial resources to care for your pets.

If your pet has any special needs, or if you want to provide funding for training, regular exercise, or a certain kind of food or care, it’s up to you to provide the financial resources to the people you’ve named to take care of your pets. All of this can be included as part of your comprehensive estate plan.

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

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Money Talk: How Much Will You Share with Your Kids (and When)?

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In many families, money matters are not typical dinner table discussion, but I think it should be. This is especially true when it comes to affluent parents. And, I hope this changes because one of the most important things you can do is talk to your kids (and your parents) about money.

According to the Spectrem Millionaire Corner, a market research group, only 17% of affluent parents said they would disclose their income or net worth to their kids by the time they turned 18. A nearly equal amount, 18% said they would never disclose these numbers to their kids. 32% of the parents surveyed by Spectrem said “it’s none of their business” when asked why they would not talk to their kids about money.

But, that’s faulty thinking. The amount of money generated by your family, and what will happen to it when you or your parents become incapacitated or die is definitely “family” business. In fact, whether your parents talk with you about it now, or you figure it all out after they die, your parent’s money has a huge impact on you.

If your parents are not talking to you about money, it could be because they are afraid that if you know how much money there is, it will make you lazy, unmotivated, or change the course of your life decisions in a negative manner. And, maybe you have the same fears of talking about money with your own kids.

But the truth is that whether you know exactly what’s there or not, you have a general sense of your family’s financial situation and it’s already impacted your decisions in a myriad of ways. And the best way for your family’s money to impact your decisions in a positive manner is to have open conversation about it.

If you are a child of well-off parents who are not talking to you about money, consider that your job is to learn to communicate with your parents in a way that will have them trust you, and the decisions you will make if you know just how much there is.

When money has come up in the past, have you behaved immaturely? Have your actions or words caused your parents not to trust you? If so, you can change that now. And consider the possibility that your parents would love to see evidence of your maturity in this arena.

If you are a parent yourself, one of the most important wishes you have for your children is probably that they learn to handle money well. And as a parent myself, I know you want to influence them in the most positive way possible when it comes to money (and everything else, for that matter).

Consider how you would want your children to approach you to have the money conversation, and how you can do exactly that with your parents?

We all must learn about our family’s money eventually. And if that doesn’t happen until after our parents die, it can be a much bigger burden to deal with, and we can lose tremendous opportunities for passing on more than just money.

As an prosperous parent, or the child of prosperous parents, getting into conversations about money now is a huge opportunity to pass on values, insights, stories and experiences that will be lost if you wait until incapacity or death to start facing that topic.

I believe it’s one of the most valuable, ongoing conversations I’m having with my children – and parents. And it’s one of my favorite things to help my clients get going in their own families.

Don’t underestimate the power of these conversations. Talking to your kids (or your parents) about money is one of life’s real opportunities for your family to come together and use your whole family wealth to create more connection from one generation to the next.

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

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