New Retirement Study Identifies That Half of Retirees Expect to Work Part-Time

A new study conducted by the TransAmerica Study for Retirement Studies identified that up to two-thirds of baby boomers intend to work beyond age 65. Some individuals have no plans to retire at all and at least half of the survey respondents expected to have at least some form of employment during that time. baby boomers retirement

Some of the most common reasons for delaying retirement or deciding to work after their retirement age include employer health benefits and the need for additional income. Significant members of individuals share that they simply enjoyed what they did or wanted to stay involved in their vocation.

One of the most important steps to take for anyone who intends to work after retirement is to focus on staying healthy. Many older individuals can be negatively impacted by a serious health care event but planning ahead for the future and having your legal documents in line gives you peace of mind that someone is able to step in and make decisions on your behalf even if you were to become unable to do so. Setting up a consultation with an experienced estate planning attorney is another step that you can take to gain confidence about your future plans and distribute any additional assets you may have as a result of continuing to work past your retirement age.

Monitoring projected retirement income needs can give you a good perspective on what you’ll need to support yourself as well as what you will be able to leave behind as a legacy for your beneficiaries. It is also important to have a backup plan in the event that you suddenly need to retire earlier for health or additional reasons. Contact an experienced estate planning attorney today to learn more.

Nearly 70% of Americans Will Need Long Term Care at Some Point

There is a good chance that you’ll need help at some point in the future with everyday tasks like eating, dressing and bathing. You may also need medical care over an extended period of time. long term care planning for the elderly

A 2005 study indicated that 69% of those individuals aged 65 and beyond will need long term care at some point in the future. However, many people are not prepared with how to plan for it and how to safeguard against the potential decimation of their own retirement and savings as a result of a long-term care event.

Many people assume that Medicare will help pay for any long-term care expenses. But the truth is that Medicare does not cover most long-term care expenses because these are not classified as medical treatment. While Medicare will pay for the first 100 days of care in a nursing home, and Medicaid will cover some of the costs of long-term expenses, the Medicaid program is intended for low-income individuals and will not begin until your income is below the state threshold. Retirees with a lot of assets or with high income may never qualify for Medicaid without an advanced planning strategy, so long-term care insurance can be a huge assistance.

While premiums can be very high, signing up for a policy now while you are young and healthy is strongly recommended as this gives you the best chance to get a lower premium. Long term care insurance can give you peace of mind that your assets will be protected and that you have a safety net should something happen to you. In addition, it is strongly recommended that you consult with an elder law attorney about your future planning options for government benefits ad your own retirement.

High Net Worth Families Now More Comfortable Sharing Concerns About Their Money

According to a new study conducted by Wilmington Trust, high net worth families are more comfortable talking about their money and how it will be distributed among beneficiaries than past generations did. The current generation holding the wealth is more comfortable sharing the financial details with their grandchildren and children who will eventually inherit those same funds. That older generation, however, did not receive much details about the family wealth from their parents. Have you shared information about your future plans with your loved ones? If you have not taken this step, you may want to reconsider whether or not someone, such as your attorney or your future executor, knows your intentions and where to find the relevant documents. share your estate plans with family

According to the study, only 33% of wealth holders got similar information from their benefactors although 48% of them shared total financial information with the heirs. 57 families with at least $20 million in assets were included in the study. Of those included, 72% had at least $50 million in assets.

According to the results of that study, 30% of the wealth holders who were not comfortable sharing information said that was because they feared that would demotivate the beneficiaries. However, two-thirds of those inheritors planned to continue working and would not alter their lifestyle. Sharing information about the family wealth and how it will be passed on to somebody else can be an indication of a desire or even an obligation to protect a family’s wealth in future generations.

 

Are You Exposing Your Retirement Funds to Long Term Care Cost Devastation?

Do you have enough set aside to afford up to $8000 a month in long term care? Chances are that at some point during your older years, you will need access to it. Advancements in medical technology mean that baby boomers who are just approaching retirement age may expect to live another 30 years or longer.

If you are 65 years old today, there is at least a 70% chance that you will need some kind of long term care over the course of your life as shared by the U.S. Department of Health and Human Services. However, without proper planning put in place and considerations over your individual health care and retirement needs, you could be exposing all of your retirement assets to be quickly eaten up with just one long term care event.

Genworth’s Cost of Care Survey identified that a private room at a nursing home has a median cost of just under $8000 per month. An in-home aide cost just less than $4000 per month and those costs are continuing to rise.
Medicaid and Medicare may not fully cover all of the expenses associated with a long-term care event, exposing you to serious problems and worrying that you’ll have to decimate all of your retirement savings. If you have particular assets set aside, you may wish to hand these off to future generations after you pass away, but they could be quickly eaten up if you do not have protection tools in place such as Medicaid considerations with advanced planning or a long-term care insurance policy. Do not hesitate to consult with an experienced Mississippi estate planning lawyer to learn more about how to protect yourself now and in the future.

Include Planning for Higher Education in Your Estate Planning Goals

The assets you have in mind for your loved ones may include your thoughts on how they will be used, too. That’s why some people choose to use tools such as trusts to maintain some level of control over how the assets are used. Were you hoping to leave behind some assets for your loved ones to help with educational costs?estate planning for college 

Higher education is only becoming more expensive. Recent data points showed that it is outpacing inflation by an average of at least 4%. Within the last five years, tuition has increased by at least 9% in most cases and many families are struggling with how they will be able to plan for college.

While there are traditional opportunities such as a 529 savings plan, it is also important to consider that you may wish to include planning ahead for higher education in your estate planning. Leaving behind a specific type of account or using a life insurance policy to assist a loved one with paying for college are just a few of the ways you can assist a beneficiary with accomplishing his or her goals comprehensively.

Do not hesitate to reach out to an experienced estate planning lawyer, if you have questions about the different ways that you can incorporate assets that will be gifted on to others that they can use for the purposes of higher education. If something were to happen to you, your loved ones would be able to tap into those financial resources to accomplish their educational goals.

Why You Need to Have a Conversation with Your Elderly Parents About the Difference Between a Will and Beneficiary Designations

Unfortunately, some adult children find out too late that their loved ones did not take all the necessary steps as it relates to estate planning. This can compromise the integrity of what the decedent wanted to pass along particularly if the will was updated but the beneficiary designations on bank accounts, retirement accounts or life insurance policies were not. will and beneficiary designations

The companies that have those beneficiary designations are responsible for adhering to the last filed materials by the decedent, meaning that even if the will stipulates that someone is to receive half or all of the overall estate, those beneficiary designations are cleared separately. This means that if a person did not update their life insurance policy and a spouse they had divorced from is still listed as the beneficiary, that individual would still be entitled legally to receive any and all benefits under that life insurance policy to which they were previously entitled.

It is extremely important to ensure that your loved ones update their documents on both ends as it relates to estate planning tools like wills as well as beneficiary designation forms including those with life insurance policies. Consulting with an experienced estate planning lawyer can help you accomplish this goal. It is essential that your parents understand that these are two separate things and they both should be updated if they intend to update their estate plan purposes overall.

 

Liquid vs. Illiquid Assets to Leave Your Loved Ones

Estate planning is about more than deciding that you want to leave things behind to your loved ones- it’s also about deciding what you’ll be leaving behind and how it makes the most sense for your family members and friends. What they are able to do with those assets could have a big impact on their future. leaving behind assets to your loved ones

Taking an inventory of all of your assets while you are still alive allows you to determine the best strategies for your estate planning overall. You might decide that some of these assets should be gifted to individuals while you are still alive or placed inside a trust for the purposes of asset protection or estate planning.

Consider liquidity as well when you determine what assets you would like to leave behind to your family members. A liquid asset is any asset that can easily be converted to cash with little impact on the price of that asset. if your estate is mostly made up of hard assets, your heirs may be forced to sell these for a discounted price in order to raise the funds necessary to pay for the estate tax.

Considering all of these complex issues is much easier when you identify a New Jersey estate planning attorney who has extensive experience in this field. Do not hesitate to reach out to an experienced New Jersey estate planning lawyer to talk more about the assets you intend to leave behind and the most appropriate strategies for doing so.

 

 

Asset Protection Planning: Thinking Ahead When You Get Married

Divorce is not inevitable but many people find the process of thinking about their future finances and ending their marriage as extremely difficult when they are just planning the wedding itself. However, a strategic wealth plan can be an important component of asset protection planning. asset protection planning goals

Divorce is a risk that every marriage faces. It is strongly advised that every individual thinking about getting married consider asset protection for their own sake as well as for the future of their children and future generations. The best financial protection that an individual who has any significant wealth entering into a marriage can provide is to put together an asset protection trust or classify a dynasty trust.

Other multi-generational wealth planning tools can also be advantageous. This protection can help remove the wealth from the hands of future creditors, future ex-spouses, inappropriate beneficiaries or lawsuit decisions. This can also help individuals to avoid starting a marriage without having the uncomfortable conversation about prenuptial agreements.

Asset protection planning is an important topic that parents should always consider, as well as any couple that intends to protect their assets from unintended consequences. There are several different types of assets that you can protect in the process of asset protection planning including:

  •       Real estate
  •       Financial gifts
  •       Inheritances

Having the assets protected inside a domestic asset protection trust or an irrevocable trust is strongly recommended.   

                                                                                      

How to Effectively Approach Your Digital Accounts Before You Pass Away

There’s plenty of discussion about the benefits of traditional estate planning but you may also need to consider how your digital accounts are included as well. Most people underestimate the number of digital accounts that they truly have. Choosing to inventory these and listing all of the appropriate passwords and username information can make it easier to identify what you want to happen to them after you pass away. 

There’s a good chance that you’ll have different plans for different accounts. For example, you may wish to memorialize your Facebook account but have other accounts closed entirely. If you do not follow the terms of service listed on each individual website, however, your digital executor may face challenges trying to carry out your wishes. Bear in mind that each website might have its own rules requiring your executor to show proof that the action they intend to take is in line with what you wanted to occur.

Getting the proper documentation well in advance by consulting with an estate planning attorney can help you with this. You can also help avoid some of these challenges by backing up your files. Downloading all of the digital assets to an external hard drive, for example, will make it much easier for an executor to access after you pass away. Make sure that every time you add a social media or other digital account that you add this information to your records. Make sure you note accounts that you have set to auto delete after a certain period of inactivity. This will make things much easier when you approach the estate planning process.

Planning Ahead if You Intend to Give Assets to Your Children Differently in Your Estate

Although the most popular way to approach your estate plan is to leave all assets equally to all your children. However, there are many situations where parents might apply logical reasoning to determine that unequal inheritances are a better approach. For example, if you have a child with special needs, he or she may benefit from a special needs trust to manage their disability-related concerns. 

An older child may make more money than the others leaving the younger children with a greater need for inheritance, or there are situations in which you may wish to completely disinherit an estranged child. Unequal inheritances, however, can lead to numerous problems including ending sibling relationships, will contests, and hurt feelings. if you intend to avoid fighting over children among the different inheritance amounts, it is essential to use trusts instead of wills.

If you pass away with assets in your name alone and only have a will, those assets will go through a probate proceeding. Family conflict with the use of wills is common because children have to receive legal notice with a copy of the will.

Each child may show up in probate court with their own individual lawyer and contest the will. The associated expense and the frustration of litigation can drag on for years. When you use a trust instead of a will, you decrease the chances of family conflict associated with the inheritance. Trusts effectively avoid probate because you transfer assets into the trust while you’re still alive and the trust determines what happens to those assets when you pass away and the children will not necessarily receive legal notice. Consult with an experienced Mississippi estate planning attorney if you would like to discuss this in further detail.