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Recent Blog Posts
The Importance of Family Discussions in Estate Planning
Although people do not like to think about their own mortality, the realities of life is that it will end one day. And that is why making plans to ensure that our wishes are met and our families are taken care of is so important.
A study that was conducted by Fidelity Investments revealed that many adult children and their parents avoid having family discussions about estate planning. Topics such as retirement finances, elderly care and will and inheritance issues are issues that should be discussed, but quite often, are not. In fact, according to the study, four out of 10 families have not had those conversations at all.
Begin Illinois Retirement and Estate Planning Now for the Future
Statistics show we are living longer than previous generations. The average life expectancy for an American is 78.7 years, and that number increases each year. One major reason for this increase is the vast improvement in diagnosis and treatment of cardiovascular disease.
A longer life allows for the opportunity to enjoy retirement after working for 40 to 50 years. Therefore, if sound financial retirement planning decisions are made, the saved funds will allow for an enjoyable retirement as well as sufficient care should one become medically incapacitated due to illness or injury.
Financial advisors note several common mistakes that many people make, but are easily avoidable, when investing for their retirement. One of the most common mistakes is not paying attention to unadvertised fees. For example, if a person pays a 1 percent fee over the 40 years he or she is working and saving, this percentage can add up to tens of thousands of dollars that will not be in his or her Illinois retirement fund.
Estate Planning for Parents with Special Needs Children
Estate planning can be confusing with all the rules and laws to consider. But if you are a parent of a special needs child, estate planning can be even more complicated because of the worry over who will look out for your special needs adult child when you are gone. Also, the cost of care for a special needs child can be astronomical. For example, a study done by the University of Pennsylvania and the Children's Hospital of Philadelphia concluded that the lifetime cost for a person with autism that involves an intellectual disability is $2.4 million.
Planning for Death to Ensure Your Wishes Are Preserved, Part One
The conversation of planning for death, incapacitation, and mental or psychological deterioration is difficult. Even when instructions are left, the truth remains that too often the actual intention of these documents are subverted. This unfortunate situation lends itself to an incredible amount of conflict among loved ones, with many of whom are too emotional to be rational.
Many of these issues arise not only after death, but also during chronic illnesses, after unexpected accidents, and any time one is not in a state to make a competent decision. Thus, it is necessary to place the utmost time and consideration into designating the person, or persons, whose duty it will be to ensure your wishes are legally preserved.
Estate Planning Errors: Common Mistakes to Avoid
Life is not always within our realm of control, and this is a fact that is often hard to swallow. However, it is an incredibly important concept to understand when partaking in daily responsibilities and activities, as everything carries a risk. And for this reason, it is critical to address the "what if's" before they arise by hiring a professional to draft a cohesive estate plan.
Several common mistakes can be made during estate planning, and these can be harmful both before and after death. In fact, these mistakes can have broad implications on family and loved ones. Consider the following list of frequently seen estate planning errors:
Majority of Baby Boomers Ignore Estate Planning Needs
Sixty-four percent of baby boomers do not have a living will, health care proxy, or other advance directives that deal with end-of-life issues. These results were discovered via a survey conducted by the Associated Press (AP), in conjunction with LifeGoesStrong.com.
A health care proxy or health care power of attorney "allows an individual to select a person he or she trusts to make decisions about medical care." Advance directives are critical documents to have in place because they clearly state a person's medical choices. Both are essential to have in the event an illness or accident makes it impossible for an individual to articulate his or her wishes.
Gender and Estate Planning: Are You Really Prepared?
For many, the idea of estate planning is difficult to even conceive. This is understandable, as the subject of death, in general, makes many uncomfortable. However, it is essential to consult an attorney to have a plan in place should the worst happen - especially if you are a woman in Illinois.
The World Health Organization's latest statistics show that even on a global level women generally outlive men by four years. In the state of Illinois, this figure is amplified to a higher degree - with women living six years longer than men. This makes having a cohesive plan in place for your estate all the more important.
Seniors Consider Medicaid Trust for Future
Senior citizens who own property and assets often have difficulties qualifying for certain government programs. Healthcare, especially long-term healthcare, for seniors is critical. However, many private insurance companies are too expensive.
In order for a person to be eligible for Medicaid nursing home benefits, he or she cannot have more than $14,400 in countable resources. There are some resources a senior may own that are exempt under certain circumstances, including retirement funds and his or her home.
Is a Revocable Living Trust Right for You?
When it comes to estate planning, an increasing number of people are having revocable living trusts prepared by their attorneys.
A revocable living trust goes into effect while the person is still alive, as opposed to a will, which does not go into effect until the person dies. It is referred to as revocable because a person can change or cancel the trust any time they want and for any reason they want, as long as they are mentally competent. The trust only becomes irrevocable when the person dies.
The individuals who are involved in a living trust include the person who created it, the person or people who the creator appointed as trustees, and the beneficiaries of the trust.
Public Policy Changes May Have Negative Impact on Retirement Plans
If you are approaching the age of retirement, or are currently planning your finances for your golden years, you probably have been following a set plan. However, a recent article indicates a few proposed changes in the current public policy that are on the table for the 2015 fiscal year budget. And these changes could have a serious impact on retirement plans.
IRA Distributions
Currently, there are no required minimum distributions rules for ROTH IRAs. The pending change would reverse that by implementing required distributions after the owner is 70 ½ years of age. This can cause people to take out more money than they actually need instead of investing it. This has a trickle-down effect that includes higher taxation as well as a higher amount of Social Security being taxed.
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