Topics

Pros, Cons and Everything In Between

The Scoop on Joint and Survivorship Accounts

The Goal for Most People? Avoid Probate.

One method:

Joint and Survivorship accounts

Got it. How does that work?

Two people set it up

When one dies, the other owns it

Good for spouses

So what can go wrong?

Multiple owners—who gets what?

Parents leave to one child, not others

Creditors of one owner can attach the account

Divorce of one owner

Lawsuits

What is better for non-spouses?

Payable on Death to Child

Transfer on Death to Child

Transfer on Death to Child or by Naming the Child the Beneficiary

It Pays to Coordinate

Financial Planning

Steve had a big decision to make.

His daughter was getting married, and he wanted to give her the wedding of her dreams. To do it, he dipped into his IRA. Although the wedding was everything he and his daughter had hoped, it pushed him up into a new tax bracket, costing him thousands of dollars in additional taxes. This caused his Medicare premiums to skyrocket by more than 40 percent for the following year as well.

Steve had the resources he needed to give his daughter the wedding she wanted, but because of a lack of coordination and understanding, he paid thousands in unnecessary taxes. His mistake was focusing on only a single aspect of a major decision.

Consider a Financial Quarterback

Steve’s situation explains why it’s important that all your advisers are connected and understand the big picture. When you make a major decision like Steve did, there will be outcomes you might not have considered.

So how do you make financial decisions that have been reviewed from every angle? Try a holistic approach to your financial health that includes professionals who will help with all of your tax, insurance, legal and financial planning needs.

New advisers should be open to working with existing advisers whom you know and trust as well. It’s important for each adviser to be aware of what another is doing. Using a network of connected advisers helps people decide which decision is right for their situation.

Coordination gives clients a peace of mind that saves time and money, and lets them focus on more important things — such as wedding plans. Your goal should be to find an adviser that will make sure every financial decision is examined through the lens of all the available options so nothing is missed.

Family Matters

Long-Term Care

A Loving, but Often Confusing Decision

Long-term care continues to be one of the most misunderstood needs by most retirees and their adult children.

Long-term care (LTC) is a range of services and support designed to meet personal care needs, not medical needs.

These needs, also known among professionals as Activities of Daily Living, cover areas such as bathing, dressing, using the toilet, transferring (walking), caring for incontinence issues and eating. A common measure to determine when long-term care services are needed is when someone cannot perform two or more of those activities.

Who’s In Charge?

Learning about long-term care costs and services is necessary not only for the patient but also for family members. The reason? Someone has to decide who will act as Durable Power of Health and Durable Power of Attorney for the person needing long-term care. The loved one also needs a living will.

Everyone should have these documents completed before — not after — a major life event occurs.

Making wishes known and documented ahead of time can relieve family members facing tough decisions about care.

Because long-term care is not medical care, families likely will have out-of-pocket expenses. Long-term care insurance and similar policies can bridge the gap.

After age 65, there’s a 70 percent chance a loved one or yourself will need long-term care, according to the Administration on Aging. Most people cannot imagine themselves in this situation, which means that most people have no long-term care plan.

The average length of time for care is usually three to five years and can cost between $5,000 and $10,000 annually. Discuss long-term care with family members — where and how it will be provided and paid for.

Think carefully about who you designate for your Durable Power of Attorney and Durable Power of Health; if needed, these people will control your financial and health care decisions.

Family Affair – Plan a Reunion with the Clan

Is it time to make good on that goal of spending more time with extended family?

Facebook photos prove that years pass way too quickly. The gift of building deeper relationships with extended family can benefit every generation. Maybe this is the year for a family reunion.

Here are suggestions to get the ball rolling:

STARTING FROM SCRATCH — Begin with a survey or poll

Consider

Family budgets: Daylong, weekend, weeklong

Audience: How many adults, kids and teens?

What has the larger appeal to your family age group?

• Cruise
• Resort
• Renting a house
• Park, campground, private home

What activities are popular with the majority?

• Snow activities: skiing, tobogganing, snowboarding or hot tubs
• Warm-weather activities: beach, ocean, swimming or spa time
• Other outdoor activities: hiking, biking, team sports or picnics

What’s next

• Begin with a budget and request donations from the families for early expenses.

• Choose a firm date.
• Decide the theme. Go to Pinterest (pinterest.com) to get ideas.
• Create a website/blog or private Facebook page to communicate as plans are made.
• Create a timeline with deadlines.
• Email sign-up sheets with task assignments and list all members’ contact information. Find out skill sets of family members; don’t give a creative task to someone with an analytical personality, for example.

RESOURCES

Here’s what local travel experts say about streamlining the learning curve for successful reunions:

Choose a Cruise

Adrienne Greben, franchise owner of Cruise Planners/American Express in Concord Township:

“Groups are complex. It’s important to use the services of a good travel professional who will remember your family’s details and can guide you through every step — at no cost to you. The pricing is the same, but travel pros can often offer extra amenities for your family.

“Book your cruise early — even more than a year in advance.

Fitness

The Few, the Long-Lived … The Strength Trainers

Strength training is the way to live better longer.

Yet, few people do it. It’s hard to understand.

Over the past decade, researchers have demonstrated the benefits of strength training for strength, muscle mass and physical function, as well as for improvements in chronic conditions such as diabetes, osteoporosis, lower back pain and obesity.

Only about 9 percent of older adults do strength training at least once a week, according to one study — a small fraction of people but higher than researchers expected.

The researchers in one study followed the respondents for 15 years. About a third of the respondents had died within the time period. The remaining who trained at least twice a week had a 46 percent lower risk of death than those who did not do the training. They also had 41 percent lower odds of cardiac death and 19 percent lower risk of dying from cancer.

Significantly, after the researchers controlled for physical activity levels, people who did strength exercises lived longer than those who did only physical activity.

The study is strong evidence that strength training in older adults has benefits beyond improving muscle strength and physical function.

Jeff Tomaszewski is owner of MaxStrength Fitness in Westlake. He’s a certified athletic trainer and a strength and conditioning specialist. Visit maxstrengthfitness.com or call 440-835-9090.

Summit DD Hosts Butcher Elder Law for

an Exclusive Workshop: Special Needs Trusts 101

Free event presents the essentials all families of persons with special needs should know

Tallmadge, OHIO – In honor of Developmental Disabilities Awareness Month, Butcher Elder Law is partnering with Summit DD to present an exclusive workshop, Special Needs Trusts 101 on Tuesday, April 4 from 5 – 7 pm in the Multipurpose Room at the Summit County Developmental Disabilities Board, 89 E. Howe Road, Tallmadge.

Special Needs Trusts are documents established for the benefit of an individual who receives government benefits based on need, such as Supplemental Security Income (SSI) and Medicaid.

Should a person with an intellectual or developmental disability receive an inheritance or settlement, those government benefits could be impacted or jeopardized by receipt of unanticipated funds.

The free workshop will present the essentials of establishing a Special Needs Trust and how they can guarantee the stability of benefits for years to come.

Lead by Sam Butcher and Erin Eurenius from Butcher Elder Law, the program will cover:

• Who needs a Special Needs Trust
• What is involved in creating a Special Needs Trust
• Why it is different from other legal documents
• How funds from Special Needs Trusts can be used

The workshop is open to persons and families served by Summit DD as well as the general public. Space is limited and an RSVP is required in order to attend. Please call Ann Watt at Butcher Elder Law at 440.268.8284 or go to Eventbrite to confirm workshop reservation.

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