John Lane Law

Here’s How to Get Your Affairs in Order - John M. Lane Law, PLLC

“Organizing your key information and getting your personal and financial affairs in order is a great gift to your loved ones.”

It’s a great idea to get your personal and financial affairs in order, so your children will know where things are, both physically and financially, in the event you or your spouse become ill or pass away suddenly.

The Daily Record’s recent article, “How to organize your affairs if you are a senior citizen,” says the first step is to collect your important personal, financial, and legal information so you can arrange it in a way that will benefit you now and your family in the future.  The next step is to create sets of important information and instructions concerning how you want certain things handled when you pass away or if you become incapacitated.

Here are some of the personal, legal, and financial items to consider:

Personal Information

• Make a list of contact information for close friends, clergy, doctors, and advisers such as your estate planning lawyer, accountant, and insurance agent.
• Make a list of medications that you and your spouse take and any allergies and illnesses.
• Include birth certificates, Social Security cards, marriage licenses, military discharge papers and other important papers.
• List the locations that are locked or password protected, like safe deposit boxes, safe combinations, and security alarms.
• List the companies or people who provide services such as: phone, cable, electricity, etc.
• Write down specific instructions for the care of pets.
• Detail your wishes for organ and tissue donation, along with funeral instructions. If you have a pre-paid contract for the services of a funeral home, include a copy of the agreement.

Legal Documents

• Include all of your estate planning documents, such as your will and any trusts.
• A copy of your financial power of attorney that names a trusted agent to handle money matters, if you’re incapacitated.
• A copy of your advance health care directives, including a living will and medical power of attorney, which detail your wishes for end-of-life medical treatment or when you are unable to communicate health decisions for yourself.

Financial Records

• Create a list of your accounts, brokerage and mutual fund accounts, and other financial assets.
• Make a list of loans, leases, or debts, like a mortgage, car loan, student loan, medical bills or credit card balances. Add to this list, all credit and charge cards with the card numbers and contact information.
• Note any retirement plans, pensions, or health benefits from your current or former employer with the contact information for the benefits administrator or HR Department.
• List insurance policies: life, long-term care, home, auto, Medicare, Medigap and prescription drug insurance policies with policy numbers and pertinent phone numbers.
• List real estate, vehicles, and other properties you own, rent or lease and include the deeds, titles and loan or lease agreements.
• Detail the location of your tax records and your tax preparer’s contact information.

Now that you have all of this, keep it organized in a fireproof box or a home safe, and review this information and keep it up-to-date. And don’t forget to let your family know where to find it.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: The Norman (OK) Daily Record (January 2, 2017) “How to organize your affairs if you are a senior citizen”

Get the Basic Estate Planning Docs Signed - John M. Lane Law, PLLC

“Legal Documents Everyone Should Have”

Harrisburg Magazine’s recent article, “Protect Yourself,” recalls the case 25 years ago of a young woman named Terri Schiavo, who had a heart attack in Florida. She was resuscitated but suffered massive brain damage and was left in a persistent vegetative state. This created a lengthy legal battle with her husband—who wanted her feeding tube removed—against the wishes of Terri’s parents—who wanted her kept alive. After seven years and 14 appeals, Schiavo's feeding tube was disconnected, and she died in 2005.

A big issue in this fight was that those closest to her testified she never would’ve wanted to be kept alive in a vegetative state, but Schiavo hadn’t signed a living will. Therefore, if you fail to have the legal documents necessary to express those intentions, no one will know what they are. Without leaving your written wishes, you take important decisions out of the hands of your family. It is very important to have these documents for your own peace of mind, as well as that of your family.

End-of-life directives are just one of the legal documents that are needed to protect us. Wills and powers of attorney (financial and medical) are crucial for sound estate planning. A financial power of attorney, allows another individual, like a spouse or trusted friend, to take care of your financial affairs in the event that you become incapacitated, which is particularly useful as you get older.

A medical power of attorney is like a living will, but it details more than deathbed concerns. It also allows your trusted agent to be given your private medical information and to decide health care issues for you if you’re incapacitated.

Wills are extremely important, especially for those with children. They let you name a guardian for your children, if you and your partner pass away. This step will prevent the courts from deciding who should care for your children or a dispute by relatives over guardianship. In some states, a will is not required, but another legal document specified by state law will suffice.

Even unmarried people without any kids should have a will. If not, state intestacy laws will dictate how your property will pass to your heirs. If you die without a will, the state will distribute your assets to your next of kin. This could be someone you don’t really like or whom you’ve never met.

Everyone has heirs. Even if you think you don’t have anyone, there’s likely a cousin out there somewhere, and the intestacy statute will try to find the next of kin. If you have a properly prepared will, you can leave funds to charity, and make sure that the funds go where you want them to go—instead of to some distant relative with whom you have absolutely no relationship.

This issue isn’t pleasant, but preparing for disability and death with legal documents provides undeniable protection, as well as peace of mind for you and your family.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Harrisburg Magazine (December 2016) “Protect Yourself”

Do Some Simple Planning with College-Bound Children to Sleep Better at Night - John M. Lane Law, PLLC

“It’s the big day. You’ve taught your child everything he knows from how to tie a knot to how to knot a tie.”

Your kid’s now an adult, ready to head to college and start a new adventure. But businessinsavannah.com’s article, “College-bound children need critical financial, health documents,” asks, “What if you find out that one of those adventures results in a stay in the hospital?”

Legally, you’re not allowed to help him. Why not?

Many state privacy laws don’t let parents make healthcare or financial decisions for their adult children. It doesn’t matter if you’re paying their college tuition and health insurance, your hands are legally tied. To solve this issue, you can have legal documents prepared that will allow you to continue in your guardianship role.

Two important documents are an advance directive for healthcare and a durable power of attorney to assign you or another trusted adult as your child’s representative. Without these, your child could be incapacitated and alone in a hospital or financially stranded somewhere. You could be required to petition a judge to let you help your child.

Two other forms that can help with your child’s care are a Health Insurance Portability and Accountability Act (HIPAA) form and an In Case of Emergency (ICE) card. The pre-signed HIPAA form lets you immediately access your child’s medical records, and an ICE card that can fit in a wallet will have all of his or her approved emergency contacts, health insurance info and known allergies.

You’ll sleep better knowing that in case of an emergency, you’ll be able to help your kid.  Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: businessinsavannah.com (July 22, 2016) “College-bound children need critical financial, health documents”

Think of an Estate Plan as Added Protection for Your Family

"Without a plan, a challenging time for your loved ones will become even more complicated and difficult."

Estate planning is the way to determine what happens to you and your property when you can no longer make decisions due to incapacity or death. Without this, you stand to make a tough process even tougher for your loved ones. If you don't have a plan, it can delay your medical care if you become incapacitated and make it more difficult to pass your wealth to your heirs when you die.

Make sure to state your wishes in the proper estate-planning documents. To complete these, consult with an estate planning attorney and keep the originals in a safe deposit box with a copy at home or on your computer. 

Nerd Wallet's article, "10 Keys to Proper Estate Planning," reminds us of the four key legal documents you should have in place, plus an additional one you might want to consider.

An advance health care directive indicates your healthcare choices and is used only when you are unable to communicate your wishes. Ask your estate planning attorney about the one specific to your state.

A power of attorney for finances lets you designate an individual to manage your financial affairs in the event you become incapacitated. If you fail to complete this form and you need help, a judge may appoint someone for you.

A HIPAA release form lets those named in your advance health care directive and your power of attorney access your healthcare information to work on insurance issues if you are unable to yourself.

A will allows your assets to be transferred as you've designated upon your death.

A living trust is another way to transfer property upon your death, which can be more confidential, faster, and more flexible than probate. With a living trust, your wishes may be less likely to be contested than with a probated will. A trust is an option, but it depends on your assets and your state laws. But if you have a trust, you still need to have a will.

Not having an estate plan can be time-consuming, stressful, and costly for your heirs. Your estate will have to go through the probate process. There's also a good chance that your property won't be distributed as you wanted. Take action to create a carefully considered estate plan to help make sure your wishes are met and to make it easier on your family.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Nerd Wallet (March 11, 2016) "10 Keys to Proper Estate Planning"

How to Plan to Help an Incapacitated Loved One

"What should or shall we do about the circumstances of an elderly relative or seemingly incapacitated relative?"

The article, "Legal Issues for Concerned Family and Friends of a Possibly Incapacitated Individual," advises that functional capacity is contextual. The challenges an individual faces in daily living and how well they are being addressed is sometimes hard to pin down. The legal terminology is frequently vague and inconsistent. Terms such as "incompetent," "unsound mind," and "incapacity" are used interchangeably.

State statutes typically define an "incapacitated person" as someone who, because of a physical or mental condition, is substantially unable to provide food, clothing, or shelter for himself or herself, to care for the individual's own physical health or to manage the individual's own financial affairs.

The courts will often require expert testimony and reports as to the individual's physical or mental state before rendering a judgment. Many states use a required standardized "Certificate of Medical Examination" form to be submitted to a court, which has the specific statutory definition of incapacity. It will often have boxes for the physician to check and a space for his or her comments.

A progressive and gradual onset of dementia may be hard for both the individual and family members to recognize and appropriately address. As such, there are a variety of tasks that have significant personal and legal implications. Consider if the person can consistently and appropriately undertake the following tasks, although this isn't a complete list and they aren't listed in any particular order:

• Administer her or his own medications;
• Engage in daily activities like personal hygiene, bathing and dressing;
• Attend to shopping, food preparation, self-feeding and housekeeping;
• Safely drive a motor vehicle;
• Manage their finances and pay household expenses;
• Make appropriate decisions concerning marriage or intimate relationships;
• Keep his or her home clean;
• Collect and respond to mail or other communications;
• Recognize and avoid common scams and frauds; and
• Understand the need for and consent to medical and dental treatment.

There may be assistive devices, accommodations and part-time caregivers that might be less restrictive alternatives than legal guardianship and institutional living. Legally, an individual is presumed to be sane and have legal capacity. As a result, the family may have a hard time stepping in when an individual is stubbornly insistent on keeping the status quo in spite of signs that some changes are needed.

Make sure, well in advance, that you and your loved ones have created durable powers of attorney so that a trusted person may act when one becomes incapacitated. Similarly, a medical power of attorney and healthcare directives to physicians and medical staffs are extremely helpful. Finally, create an up-to-date will and talk to your estate planning and elder law attorney about appropriate estate planning.

These very basic steps can eliminate many burdens from your family and friends.  Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Huffington Post (December 22, 2015) "Legal Issues for Concerned Family and Friends of a Possibly Incapacitated Individual"

Start the New Year Off Right

"With so many regulatory changes affecting retirement, Social Security and estate planning, you should update your estate plan for the New Year."

Maybe not the whole day, but you should spend some time getting started with these important issues. Here are some key elements from The Business Investor's Daily's article "5 Changes to Make to Your Financial Plan Now."

Make gifts to family. Plan to give gifts of cash or tangible property of up to $14,000 per person because there's no limit on how many gifts you can make, and there is no gift or estate tax. Couples can combine their gift giving to $28,000 per person. This is an easy way to reduce a potentially taxable estate. Establish a long-term strategy and give annual gifts to your beneficiaries.

Give to charity. You can also make a donation to a charity, and if you tend to make significant charitable donations, consider establishing a family foundation. To avoid capital gains tax, you should consider donating appreciated assets like stocks. A donor-advised fund is another way to receive a charitable deduction today, avoid capital gains tax and retain the authority to determine its future use.

Check your beneficiaries. This applies not just to your personal estate plan but also to the benefits you have from your employment, like life insurance and retirement assets.

Set up a meeting to address your health care proxies, powers of attorney, and an updated will. Now's the time to schedule a meeting with your estate planning attorney to create or update these documents.

Set up life insurance. You should update or buy life insurance.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Business Investor's Daily (December 18, 2015) "5 Changes to Make to Your Financial Plan Now"

No Time Like NOW to get Papers in order for Dementia Patient

"Get the documents in place before tragedy hits and emotions are sky high."

Money's recent article, "5 Essential Documents for Protecting a Loved One with Dementia," says that a person with dementia needs someone—either a relative or a trusted friend—who can make important financial and medical decisions in his or her stead. It's critical to assign this job while the person with dementia is still mentally able to make sound decisions and have the legal capacity to be involved in making the choice.

If you delay with the paperwork, your family member's dementia may progress to the point where he or she cannot legally turn over power. At that point, your only option is to petition for guardianship and ask a judge to declare the person incapacitated. That can take about two months and may be expensive. It can get even worse if your loved one—or another family member—contests the application.

Laws vary by state, and mistakes can be costly. You should draft these documents with the help of an experienced elder care attorney. Here are the key documents that are recommended:

Durable Power of Attorney. This gives you the authority to make financial decisions for your loved one, like writing checks to pay his or her bills, handling tax returns, and selling a home. A "durable" power remains in place if the person for whom you are making decisions becomes incapacitated and can't make decisions for himself or herself, as opposed to a regular power of attorney, which terminates if the person who issued it becomes incapacitated. Avoid some headaches and visit the institution with the family member granting you power of attorney to complete any proprietary forms in advance. If your loved one spends a significant amount of time in another state, you should also have a power of attorney drafted by your estate planning attorney according to that state's laws.

Health Care Proxy. This is really a power of attorney for medical decisions, allowing you to make choices about treatments, doctors, and other health-related matters.

Living Will. This is also called an advance directive for health care. It lets your loved one specify the medical treatment that he or she wants—or doesn't want—near the end of life.

Updated Will. A will gives instructions as to what happens to any of your assets after you pass away. Your will needs to be reviewed periodically to reflect changes in your life.

Living Trust. You might also consider this if your loved one with dementia has substantial assets. A living trust makes it easier for another to manage the assets, e.g., homes and investment accounts. The trustee must adhere to the specific instructions of the person who created the trust. It is also useful in states with onerous probate procedures because a living trust may allow the estate to avoid probate when distributing the property of a person who has died. Again, it's important to talk to a knowledgeable estate planning attorney before setting up any kind of a trust.

Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Money (December 11, 2015) "5 Essential Documents for Protecting a Loved One with Dementia"

Angie's List Gives Estate Planning Reminders

"Many people don't even think about a will until they become parents."

A recent AARP survey found that about 40% of Baby Boomers don't have a will. The figure is at 71% for all Americans over age 34. We all like to put things off, especially when they involve a morbid topic like dying and what to do with you and your assets after you pass away.

But like it or not, if you don't think about your estate planning, it can really cost your loved ones down the road. That's why you should read this report from Angie's List found on myChamplainValley.com called "Angie's List: Estate Planning Pointers."

You may realize that if you die without a will, your assets go to your spouse if you have joint ownership. But anything that's not jointly owned—like a car or a ring—could cause a lengthy and stressful probate experience. You need to decide who you want to have these assets, especially if you're in a second marriage and you are trying to provide for your spouse as well as children from a previous marriage.

"While no one looks forward to planning their estate or funeral, it's something we should all do because it can be considered a gift to your family because you're reducing stress that would be on them at that time," said Angie Hicks, Angie's List Founder.

An estate planning attorney can advise you and file the necessary paperwork to make certain that your assets are given away as you specify.

Parents should think about creating a trust that gradually gives funds from the inheritance so kids don't get too much too soon. Trusts are great for folks with young children or a child or children with special needs.

You also need to have your estate planning attorney draw up a health care directive in the event of a medical crisis that leaves you unable to communicate. Make these very important decisions ahead of time so you're not leaving that burden to a family member to figure out.

Everyone should start their estate planning today. It will help make the distribution of your things easier and less stressful.  Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. Everyone has an estate, no matter how large or small, complex or simple.  For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: myChamplainValley.com (VT) (December 7, 2015) "Angie's List: Estate Planning Pointers"

Guardianship Abuse Is Rampant

Guardians are supposed to look after and protect the interests of their wards. Unfortunately, it has become all too common for guardians to take advantage of their wealthy elder wards.

The purpose of court appointed guardians is a simple and noble one. When a person is not competent to handle his or her own affairs, then a court can appoint a guardian to act on the person's behalf. The guardian is supposed to act selflessly and in the best interests of the ward.

However, as the Wall Street Journal reports, in "Abuses Plague Guardianship Systems Across the Country," the financial abuse of elderly people by guardians is rampant throughout the United States.

Court appointed guardians with no family relationship to the elderly wards too often act in their own interests and deplete the wealth of the wards.

This problem is mostly avoidable through estate planning. Part of a good estate plan is planning for end of life issues and getting a general durable power of attorney and a health care power of attorney. With those two documents, you can appoint someone you know and trust to look after your financial and medical affairs in case you are ever not competent to do so. Doing that can often make the appointment of a guardian unnecessary.

Even if a guardian is necessary, a court will likely appoint the person you have already designated as trustworthy whenever possible.

Do not fall victim to an abusive guardian.

Schedule an appointment with an estate planning attorney and get the documentation that you need to make your own decisions about who should look after your affairs if you are not able to do so. Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Wall Street Journal (October 30, 2015) "Abuses Plague Guardianship Systems Across the Country"

Help with Complex Medicaid Planning

Estate planning frequently addresses property transfers in contemplation of death while elder law considers retirement income issues. While it is easy to consider the two issues in isolation, this is frequently a mistake. This comment briefly provides an incomplete educational overview of some common legal issues that are relevant in both the estate planning and elder law context. Consult experienced professionals in specific situations. For the ordinary person, government benefit programs are an important retirement income consideration. In broad overview, governmental programs may be divided into "means-tested" and "non-means-tested." Supplemental Security Income (SSI) and Medicaid are examples of federal means-tested programs that consider an individual's resources and income. In contrast, a number of Social Security administered programs and Medicare benefits are non-means-tested.

Recently, the Huffington Post published an article titled “Some Legal Issues at the Intersection of Elder Law and Estate Planning.” The article discusses some ethical and legal issues that are very important.

One is whether to dispose of assets through pre-need planning to qualify for means-tested government programs such as Medicaid that might pay, for example, the cost of long term nursing home care. This is very complicated, and you should work with a qualified elder law attorney.

If you want to maximize eligibility for means-tested governmental benefits, a common income reduction technique is to create a Qualified Income Trust (QIT), often called a “Miller Trust.” There are also other types of "special needs trusts" that can be created without reducing government benefits. Again, this is a highly complex area that requires help from an elder law attorney.

Remember the five-year look-back on transfers. Medicaid eligibility usually examines the transfer of assets (like gifts) to third parties that happen in the 60 months prior to the Medicaid application. To avoid this issue, you may be able to create irrevocable college saving plans and also make transfers to your spouse without penalty. A child who lived in the parent's home and cared for the parent—and delaying institutional care in a physician's opinion—may be able to get assets as a gift without a Medicaid penalty under the "two-year caretaker rule." This is also extremely complex and requires consultation with an experienced elder law attorney.

For your family and yourself, do as much elder law and estate planning as far in advance as possible.  Contact John M. Lane Law, PLLC to discover the Simplified Solution to your estate planning needs. For more information about how we can help you, visit our website at www.JohnLaneLaw.com.

Reference: Huffington Post (September 22, 2015) “Some Legal Issues at the Intersection of Elder Law and Estate Planning”