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Philadelphia PA Estate Planning Blog
Monday, April 4, 2011
I cannot count how many times I have heard people say, “I don’t care what happens when I’m gone… They can do what they want with my stuff, I won’t be here!”
I could likely convince over 90% of the people who say that to me, that they actually do care, but they’re frustrated over how to plan in a practical, sensible way that ensures their estate is left in good hands.
At our firm, we view estate planning as an insurance policy for your affairs. You need to ensure that your affairs are going to be handled smoothly in the event that you become sick, incapacitated or disabled. We don’t know when or if that will happen. Our hope is that it will not. But what if it does? Do you know who will care for you and manage your affairs? Who will make health care decisions for you? Some people will respond that their spouse will do these things. What if both of you are incapacitated at the same time? Then what?
Unfortunately, those that are most vulnerable (elderly, those that are incapacitated, etc.) are often taken advantage of the most. We see it all the time in the estate planning field. Our goal is to prevent this from happening to you.
You also need to ensure that your estate is handled properly upon your death. There are many things that could go wrong if you do not have a carefully written and thought out Will or Living Trust. Like any good or service, you get what you pay for. Sure, you can pick up a Will form in your local office supply store. Unfortunately, those forms are most often a disservice to people. It’s not about how “good” the form is, or the form at all… Can a two page form really make sense of every aspect of your family? Rather, it’s about knowing the right questions to ask, and taking lots of factors into account. Every family is unique and has issues that must be sorted out. It cannot all be put neatly onto a simple two page form.
That’s not to say your estate plan should be complicated. No, we should always have the goal to keep things as simple as possible, while taking into account the complexities of your own family. We think the true value of estate planning is the consultation you receive with a qualified attorney, who knows what questions to ask and what to consider based on what he or she is hearing. By having a professional tailor your estate plan to your needs, you are creating insurance for your affairs. The last thing you want upon your death is for your family to bicker, argue and be torn apart over something insignificant that you could have dealt with while you were still living.
Have you given your estate plan adequate thought? Need a review of your current plan? Contact our office today for a complimentary consultation at (215) 706-0200 or www.JawAtLaw.com. We are located in Willow Grove, PA in the Executive Mews Office Complex.
Monday, March 28, 2011
Without an estate plan, many things could go wrong. As always, what could go wrong depends on your situation. Here are ten quick issues that could arise if you do not have an estate plan:
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If you have kids but have not appointed a guardian, and something happens to you (and your spouse), someone will have to petition a court for guardianship, a burdensome process.
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You have no control over how your assets are divided if you don't have a will.
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If you become sick/incompetent, and an end-of-life health care decision needs to be made for you, your family may end up in court if there is disagreement and discord.
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The state will determine who your Executor will be. What if more than one person wants the role? What if no one wants the role? Either way, this could lead to major conflicts in the family.
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Particularly for a second marriage, if you don't have an updated and carefully drafted durable financial power of attorney, your spouse could cut out your children from the first marriage, particularly when it comes to retirement accounts.
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Your family could inadvertently pay more inheritance taxes.
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For those that are not married, but are either engaged or in a long term relationship and want that significant other to be in control of any decisions for incapacity, etc., you MUST have an estate plan with powers of attorney and wills.
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For any family, there is the possibility of a family conflict over your personal belongings if they aren't assigned to someone in your plan, or while you're still living.
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Without a plan, a trust is not established for minors, dependents, and special needs beneficiaries. Only a custodial account can be created under the UTMA, and the functionality and use of this account is severely limited.
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Lastly, a plan that is not updated might be just as bad, if not worse, if a lot has changed between now and the time you put the plan together.
If you need assistance with your estate plan, please contact our office today at (215) 706-0200.
Monday, March 21, 2011
Probate doesn't cost that much in Pennsylvania, but as an Executor, you still need to take the job seriously. There are legal and fiduciary responsibilities that an Executor must fulfill. HIring an attorney can ensure that the Executor carries out the role properly. Read more . . .
Monday, March 14, 2011
A Living Will is a document that clarifies your wishes for the very end of life. Specifically, the Living Will, also known as an Advanced Directive, tells your family, loved ones and medical professionals whether to continue life support even if all realistic options for any meaningful recovery have been exhausted.
An updated Living Will is crucial for everyone to have. Without it, you are inviting conflict, disharmony and a potentially great burden for your family. Also, without a clear Living Will, there is always a chance that a situation could develop into a case like Terry Schiavo, which lasted years because Ms. Schiavo had no Living Will.
But a Living Will is not enough – it takes care of your very end of life decisions. What about the rest of your health care decisions that must be made if you’re not competent to make them yourself?
Today, we always create a Health Care Power of Attorney (in addition to the Durable Financial Power of Attorney). The Health Care Power of Attorney appoints someone to make all medical decisions for you, hire and fire doctors and other medical personnel, etc. In Pennsylvania, most attorneys include the Living Will within the Health Care Power of Attorney document.
If you are admitted to a hospital, the staff will want to know immediately if you have these documents. You can’t carry them with you everywhere, so we highly recommend you store these documents online with our LegalVault service, and carry around an emergency ID card that allows hospitals to access these documents at any time.
By having an updated Health Care Power of Attorney with a Living Will that hospitals can immediately access with your emergency ID card, you are making it much easier for your family and loved ones to make the right decisions for you.
If we can be of assistance in updating or creating these crucial documents, or if you are interested in LegalVault/Emergency ID Card, please give our office a call at (215) 706-0200.
Monday, March 7, 2011
Many of our clients have furry friends in their homes that offer unconditional love to their owners. For many, our dogs, cats and other animals are a special part of our family. In return, if you pass before your pets, or you get sick and can't care for them, you should really consider putting in place at least provisions in your will and power of attorney, if not a pet trust.
Here are a few specifics tips to consider when planning your estate with pets in mind:
- Talk with someone or an organization in advance if you want that person or organization to watch after your pet in the event that something happens to you. See what they will need in order to take this job on.
- Consider leaving a sum of money in your will for each pet, depending on your pet's age, medical condition and other needs. Coordinate with your estate planning attorney and financial advisor to ensure there is enough liquidity available for this.
- Make sure your power of attorney appoints your agent or someone else to care for your pets. Make sure that the power of attorney allows for at least reasonable compensation for the care of your pet, and also the ability for your agent to gift money for the care and maintenance of your pet.
- A pet trust may be useful if you wish for an account to be established that will provide for your pet over the rest of his or her life. Any unused funds would pass on to contingent beneficiaries or charities.
Have you thought about your pets in your estate plan? If not, please call our firm at 215-706-0200 to schedule a complimentary estate planning consultation.
Monday, February 28, 2011
Don't have an estate plan? No one can force you to engage in estate planning, but without a proper estate plan, you are putting yourself and loved ones at more risk than necessary. Here are some complications that can arise when you don’t have a plan. For our readers that have not engaged in estate planning or haven’t reviewed their plan for over 3 years, now is the time to get your affairs in order.
- Intestate Laws: Pennsylvania has an intestate law that dictates how your property and assets are divided upon death if you do not have a will or other estate planning tool such as a living trust. Dying without a will can be costly, both in potential higher taxes and family grief/conflict due to a lack of knowledge about your wishes.
- Dependents: If you have minors or care for dependents or pets, you want to ensure you appoint someone in writing to be in charge of your dependents, kids or pets. You also want to make sure you leave assets, preferably in trust, to care for your dependents. If you have kids and no estate plan and they inherit assets, a custodian account will be established. Once a child turns 18, however, they are free to do what they want with those assets. Typically, an 18 year old does not have the maturity to handle their own assets.
- Spendthrifts and Special Needs: If you have a spendthrift child, or a spouse or child with special needs, there are steps you must take to ensure assets don’t end up in the wrong hands (creditors, government, bankruptcy court, etc.).
- Family Battles: Don’t assume your family will just sort out your affairs without any conflicts or commotion. From our law firm’s vantage point, we often hear of cases that go to court that pit family member against family member. We also know that conflicts can largely be avoided by putting together a proper estate plan. It’s just not worth the risk, or your legacy.
- Incapacity or Disability: You must ensure you have a power of attorney for your finances and health care. That way, if something happens to you and you cannot make decisions for yourself, someone you trust can immediately carry on your important affairs. Without a power of attorney, sometimes a guardian will have to be appointed in court, and the guardian must continue to be supervised by the Orphan's Court. This means legal bills can pile up quickly and unnecessarily.
If you, a friend, a neighbor or relative need estate planning assistance, we welcome you to contact our firm at your convenience. You can use our convenient online contact form or call us at anytime at (215) 706-0200. We are pleased to offer a complimentary initial consultation.
Thursday, February 24, 2011
The Federal Government’s Medicare program, which most seniors over 65 enroll in, is a good Health Insurance plan, except for one very small fact. Along with various co-pays and deductibles that you need to pay along the way, Medicare only pays for 80% of your Medical bills. If you quickly do the math, and consider a possible serious medical issue or two popping up in the near and distant future, the 20% of medical bills that you are responsible for can add up to thousands of dollars!
To cover the gaps in Medicare coverage, you have two options. You can buy a Medicare Advantage plan or buy Medicare Supplemental Insurance otherwise known as “MediGap”.
The following is an introduction to Medicare Supplement (MediGap) insurance.
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DEFINITION: Medicare Supplement Insurance, also known as Medigap, is private Insurance that pays for the “gaps” in coverage that “Original” Medicare Parts A & B do not cover. It is not Medicare Advantage (which is typically a HMO type of Medicare Coverage).
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COVERAGE: Medicare Supplements cover 100% of the gaps for medical procedures and hospital costs that Medicare approves and will pay for (except the gaps). If Medicare doesn’t approve of a particular (unconventional) treatment or procedure, Medicare Supplements won’t pay as well.
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ELIGIBILITY: To purchase Medicare Supplements, one must have Medicare Parts A & B
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PLANS: There are several Medicare Supplement Plans to choose from. The features of the different Plans are standardized by the Federal Government. Companies selling Medicare Supplements cannot deviate from the standard features. Plan “F” from one company is EXACTLY the same as Plan “F” from another company.
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PRICE: Even though companies are selling the same exact plans, they can charge different prices. The Plan “F” price from one company can be different than the Plan ”F” price from another company. There is no pricing standardization. Please make it a point to shop around for the best price!
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PRE-EXISTING CONDITIONS: Pre-existing conditions do not matter and will NOT have an effect on pricing or your eligibility when buying a Medicare Supplement Plan if:
a) You are new to Medicare and you sign up within the 7-month Initial Enrollment window;
b) You were involuntarily terminated from another Medicare Plan due to the company ending their Medicare programs, etc.;
c) You are coming off a Gov’t plan or a Group Plan from an employer.
Aside from these three exceptions, pre-existing conditions could factor into your pricing and/or eligibility
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DOCTORS & HOSPITALS: With Medicare Supplements there are NO RESTRICTIONS to what Doctors and Hospitals you choose. There are NO NETWORKS and NO REFFERALS needed for specialists, tests or procedures. You may receive medical care in any state, with NO geographical limitation
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CO-PAYS: With Medicare Supplements, there are NEVER ANY CO-PAYS, or OUT-OF-POCKET COSTS when receiving medical care (except for $20 per Dr. visit in the new Plan ‘N’)
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CLAIMS: There is coordination between Medicare, Medicare Supplement Insurers and Health Care providers so you will never receive a bill, or have to submit bills. You will only receive a “Summary of Benefits” so you can see what was paid for and by whom
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INTERNET & TELEPHONE: Your Medicare coverage is much too important to buy on the Internet, over the Telephone or from TV Commercials. You need someone to come to your home, and get to know you and your situation so they can provide you with the most appropriate options and recommendations. Look to work with an Insurance Professional who specializes in Medicare and who will always be available for questions and guidance… as this will provide you the best value, along with the peace of mind that you deserve!
Thanks to our guest blogger, Howard Peck, who we regularly work with and who is a Pennsylvania licensed Insurance Broker specializing in Medicare Advantage, Medigap, Part ‘D’ Drug Plans and Long Term Care Insurance. Howard represents numerous Top ‘A’ Rated Insurance Companies that allows him to offer the best plans based on his client’s needs and budget. Please contact us if you’d like to arrange for a consultation with Howard.
Monday, February 21, 2011
Should you worry about whether your estate will need to go through probate or not in Pennsylvania? For the majority of Pennsylvania residents, probate is not a concern for them or a burden on their family. However, there are times when probate should be avoided. A good estate planning attorney will analyze your situation and determine the appropriate planning strategies.
In general, probate is the process of your executor formally registering your will, hence the office that they go to is named the “Register of Wills.”
Pennsylvania is ahead of the curve in having streamlined the probate process years ago. Other states, notably California and Florida, still require court supervision, thus ratcheting up the costs of probate in those states. In Pennsylvania, the probate fees are reasonable. Yes, an attorney should still be retained by the Executor to ensure the process is handled absolutely correctly. But the cost of probate generally speaking is still far less than it would be in several other states.
Therefore, Pennsylvania is not a “living trust” state where the majority of residents have a revocable living trust rather than a will. Instead, many PA residents use will-based estate plans. That doesn’t mean a living trust never makes sense for PA residents. Sometimes, people who believe they need a “simple will” actually need much more strategic and careful planning. The best advice is to arrange for a consultation with a qualified estate planning attorney.
At our firm, we offer a complimentary 60-minute consultation for estate planning matters. If you wish to have your plan reviewed, or need a plan crafted for your family, we invite you to call our office at (215) 706-0200.
Monday, February 14, 2011
Do you have children or grandchildren and you're worried about saving enough for their college tuition? Of course, you're not alone... this economy has not made it any easier on us to save for our children's future. Yet, it is essential that we engage in this type of planning. The less debt your child or grandchild has out of college, the better.
Pennsylvania has two 529 programs. One in particular is called the Guarantee savings program. Unlike other states that are cutting these programs, Pennsylvania's is growing. However, you must be careful in investing in a guarantee program, because it may not be as guaranteed as you think.
529's may be the answer for some families that want to plan for college, but they are not a one-size fits all solution. For a recent look at the state of 529's, check out this article from the weekend's Wall Street Journal titled "Prepaid College-Savings Plans Take Another Hit."
We regularly help young couples and also grandparents wishing to save for their child or grandchild's education. If we can be of assistance, please do not hesitate to call us at (215) 706-0200.
Monday, February 7, 2011
The most substantial asset in someone’s portfolio is often their IRA. An IRA (Individual Retirement Arrangement) is a tax-deferment or savings device. Whatever is left over is then passed on to the beneficiaries you designated on a form attached to the IRA.
Here’s a typical scenario… Mom wants to leave her $300,000 IRA to her child, who is 25 years old. Mom dies and child receives the IRA, since the child is the designated beneficiary. In this scenario, the child now has the option to let the IRA continue to grow tax-deferred (or tax-free if it’s a Roth IRA). By doing this, the child allows the account to grow substantially, because the younger you are, the smaller the required distributions. However, the child could cash the IRA out at this point, and spend all of the funds on foolish things.
Establishing an IRA trust is the best way to allow the IRA investments to grow substantially, control the distribution of your beneficiary so he or she can’t withdraw all of it at once, and also protect the asset from the beneficiary’s creditors, predators, divorcing spouses, etc. Also, if two or more beneficiaries are dividing the one IRA, an IRA trust can be set up so that each beneficiary uses his or her own life expectancy. A 3 year old grand-child will have to withdraw a lot less on an annual basis than a 25 year old child.
A will or even a standard living trust does not protect one’s IRA from any of the above. A stand-alone retirement trust, or IRA Inheritance Trust, is necessary. It must be designed carefully to comply with the IRS rules.
If you are interested in learning more about the Retirement Asset Protection Trust, please contact my office today at (215) 706-0200.
Tuesday, February 1, 2011
Estate planning is something that most of us don't think about on a regular basis... It's easy for days, months and years to go by without ever doing any planning at all.
Whether you've worked with us before, or are considering working with our firm, we hope that you will encourage your friends, relatives and neighbors to engage in basic estate planning if they haven't already. Remind them that they at least need an updated will, financial power of attorney and health care power of attorney/living will/advanced directive. Our firm always offers a complementary consultation for estate planning cases.
If we can be of assistance at any time, do not hesitate to call our office at 215-706-0200 or email at info@jawatlaw.com.
A few things that set us apart from other firms:
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We take more time to educate you about your options than other firms
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We keep up with you on a regular basis to ensure your plan is up to date
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We offer a plan to keep you organized so that your plan is actually useful
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We have access to a one-stop shop for estate, retirement, tax and long term care planning
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We produce highly customized estate plans
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Our first appointment is complementary
We hope you'll encourage a friend, neighbor, or relative who needs basic estate planning to visit with us soon.
The Law Offices of Jeremy A. Wechsler assist clients with Estate Planning matters in Willow Grove, PA as well as Abington, Hatboro, Dresher, Horsham, Bryn Athyn, Huntingdon Valley, Fort Washington, Jenkintown, Glenside, Oreland, Warminister, Wyncote, Ambler, Elkins Park, Flourtown, Philadelphia, Warrington, Cheltenham, Gwynedd Valley, Jamison, Feasterville Trevose, Richboro, North Wales, Blue Bell, Lafayette Hill, King of Prussia, Collegeville, Oaks, Phoenixville, Oxford Valley, Langhorne, Penndel, Bristol, Fairless Hills, Bensalem, Plymouth Meeting, Furlong, Philadelphia County, Bucks County and Montgomery County.
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