Why We Procrastinate About Estate Planning

A lot of people have not participated in any meaningful estate planning. Most people will admit that it is something they need to do, but keep putting it off. What is the reason?

Listed below are some common reasons why we procrastinate about estate planning:

 (1) It is expensive

The reality is, most people do not have extra money lying around these days. However, not doing anything can end up costing your loved ones much more than it would cost you to plan now.

If you own assets in your name and you become incapacitated due to illness or injury, you (your assets and your care) will likely be placed in a court guardianship. This is not free. All costs (attorney fees, accounting fees, court costs, etc) will be paid from your assets and your family will probably have to ask the court for an allowance if they need money for living expenses.

This process does not replace probate when you die; your family will have to go through the court system again, and that means more expenses and less for your family. Your assets will be distributed according to Florida law, which probably won't be what you would have wanted.

Estate planning does not have to be expensive. You can start off with a simple will and then later upgrade to a trust when you can afford it.

 (2) " I do not own enough"

Estate planning is not just for the wealthy. In fact, costs for a court guardianship and probate usually take a higher percentage from smaller estates (which can least afford it) than from larger ones.  Even if you own a small amount, you would prefer to see it go to your loved ones than to courts and attorneys.

 (3) " I am not old enough"

Estate planning is important for everyone (ages 18-100).  Young people seem to think they are going to live forever. The reality is, that any of us, at any age, can become incapacitated or die due to an illness, injury, accident, or random act of violence. (Just read the newspaper or watch the evening news, you will see random acts of violence on a daily basis)

“Estate planning does not have to be expensive. You can start off with a simple will and then later upgrade to a trust when you can afford it.”

 (4) It is too confusing. I do not know what to do:

Attorneys are called ' counselors at law' for a reason. An experienced estate planning attorney knows what other families have been through, knows what has worked well, and what has not. An experienced attorney can help you understand the process and make challenging decisions easier.

 So why do we need estate planning?

·       To make sure our assets will go the people we want to have them with the least amount of delay, hassle and expense

·       To keep our families from having to deal with the courts if we become incapacitated and when we die

·       Let our families know that we care about them, that we want to provide for them and protect them.

·       We do it for love--but the huge benefit of estate planning: PEACE OF MIND

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs. 

YOU CAN'T PREDICT THE FUTURE, BUT YOU CAN PLAN FOR IT!

When The Parents Are Away, The Children Will Play

You finally have a week's vacation and you and your husband have decided that you do not feel like going to Disney World with your children yet again. As much as you love your children, sometimes you just need to get away from them. You are ready to disconnect from technology, spend quality time with each other, eat at a restaurant that does not include a meal of macaroni and cheese and french fries.  Maybe all you need is a few days of laying on the beach reading trash magazines and drinking margaritas. No shame there.

Although you are away from your children, as a parent you will always be wondering if they are okay while you are away. Maybe you left them with your parents. No fears, right? After all, your parents raised you and you survived.  Grandparents will let their grandchildren get away with much more than they would with their own children. They will let them stay up late, eat candy at all hours of the day, jump on the beds and just go crazy.

“Before leaving on a vacation or an extended work trip, it is so important to prepare a Medical Power of Attorney for your minor children.”

What happens when that crazy turns into UH-OH. That UH-OH might lead to an emergency room visit for stitches or even worse, broken bones.  If you, the parent, are not here to make medical decisions for your children, who can make those decisions when you are out of town?

Before leaving on a vacation or an extended work trip, it is so important to prepare a Medical Power of Attorney for your minor children. Whether your children are staying with your parents, your brother or sister, or even the neighbors, this document should be in place.  

The Medical Power of Attorney can be valid for as long as your trip or up until your child reaches the age of 18. The decision is completely up to you. It will be a short list that is sufficient enough to allow the adult watching your children to be able to make medical decisions for your children if something happens while you are out of town.​

If you live in Miami-Dade, Broward, or Palm Beach contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs. You can’t predict the future, but you can plan for it.​

Warning: Do Not Draft Your Own Power of Attorney

So you decided it was important to have an estate plan. However, you decided to find forms online and fill in the blanks yourself.  One of the forms you filled in was a Power of Attorney. You wanted to make sure that when you were no longer able to make financial decisions for yourself (incapacitated), that you named a trusted person to make those decisions on your behalf.

            What happens if you become incapacitated and your family needs to take your Power of Attorney to the bank to gain access to your accounts and they are denied? Why would a bank deny a Power of Attorney?

Two reasons why banks sometimes reject a Power of Attorney (POA):

(1) It is not 'durable': If a Power of Attorney is not a 'durable' POA then it is only valid while the principal (the person who signed the document and is appointing someone else- their 'agent' to act on their behalf) is of sound mind.

‘Durable’ means the POA continues to be effective after the incapacitation of the principal.

BEWARE: People who find a POA form online do not realize the significance of it needing to be a 'durable' power of attorney. They tend to draft a POA that is not durable and end up with a useless document.

“Think twice about saving money by drafting your own estate planning documents. A short term saving can often turn into a greater expense in the long run.”

(2) It has not been activated: The POA may be 'springing'. This simply means that it only becomes effective upon the incapacitation of the principal. Typically it will require a physician to examine the principal and determine they are no longer capable of managing their affairs due to mental incapacity. If that is the case, the bank will want to see the physician's letter before accepting the POA.

BEWARE: As of October 1, 2011, in Florida  'springing' powers will only be effective for a POA drafted before October 1, 2011. If someone drafts his or her own POA online with a springing power it will be deemed ineffective.

How To Handle Power of Attorney Problems with Banks

Even with a properly prepared POA, you might run into problems with trying to get banks and other financial institutions to recognize the form's validity. Banks are sometimes nervous to allow access to a customer's accounts for fear of a lawsuit if they allow access to the wrong person or even the right person under the wrong circumstances.

Think twice about saving money by drafting your own estate planning documents. A short term saving can often turn into a greater expense in the long run.

If you live in Miami-Dade, Broward, or Palm Beach counties contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs. You can’t predict the future, but you can plan for it.

Dealing with Alzheimer’s and Dementia: The Need for Pre-Planning

One of the hardest things to deal with is seeing your parents’ and spouse’s mental capabilities deteriorate due to Alzheimer’s and Dementia.

As a caregiver for your parent or spouse, how do you tell your parent or spouse that they aren’t allowed to drive anymore? Or that they can’t leave the house without you because you are afraid they might wander off? At what point do you realize that things have gotten so bad that you need to declare the person legally incompetent?

Often time caregivers are not sure whether or not their loved one is dealing with Alzheimer’s and Dementia and have a difficult time taking away freedoms that many of us take for granted, in order to keep that person safe. There are signs you should look for as the disease progresses.

“There are documents that can prevent the need for a formal guardianship to be opened as well as taking the financial burden off family members acting as caregivers.”

Signs and Symptoms of Alzheimer’s and Dementia

If your loved one has one or more of the symptoms listed below, it doesn’t necessarily mean that they have Alzheimer’s or Dementia. There are seven (7) stages, from no impairment during the first stage to very severe decline in the final one. If you notice they are suffering from a large number of symptoms over a long period of time and the problem appears to be getting worse, their chances of having the disease increases.

Memory Loss

·      Do they ask the same question over and over? (especially recent information)

·      In the advanced stage of the disease they may forget important events and dates in their life completely.

Inappropriate Behavior

·      Regular behavior may ignore social norms

·      (i.e. bathing regularly, wearing clothes when going outside, or speaking politely around others)

Time and Place Confusion

·      They may have trouble remembering where they are, how they got there, and what’s happening to them.

Difficulty in Following Directions and Solving Problems

·      Getting lost when traveling to familiar places

·      Have trouble keeping track of their bills each month

·      Have trouble remembering recipes that they used to use a lot.

What should you include in your estate-planning portfolio to help protect your loved ones before it is too late? There are documents that can prevent the need for a formal guardianship to be opened as well as taking the financial burden off family members acting as caregivers.

Long Term Care Insurance

This is care that you need if you can no longer perform everyday tasks (of daily living) by yourself due to chronic illness. 

Disability Insurance

Provides for periodic payments of benefits when a disabled insured is unable to  work.

Durable Power of Attorney

State who will be in charge of financial decisions on your behalf 

Healthcare Surrogate

State who will be in charge of healthcare decisions on your behalf.

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start preparing your estate-planning portfolio. Make sure both you and your family are taken care of in the future. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.