Estate Planning is for Children Too

Wednesday, September 30th, 2009

Do you know that when your children reach 18 years old, you will no longer be allowed to make medical decisions for them?  Actually, your right to see their medical records or speak to their doctor is no longer compulsory enforced.

Any parent has a fear of hearing that their child was involved in a medical emergency - whether it’s a physical catastrophe or a car accident, they would usually be notified or rushed into action.  However, under the law, your own 18-year old and above children need to name you as a health-care proxy first before you can have anything to say about their medical treatment.

Health-care proxies are documents allowing you to assign another person to make medical decisions for you if you’re unable to do it yourself.  Another document, called the living will, is a statement of medical wishes if you become ill.

Therefore, estate planning is not only for seniors.  Adult children should also have durable power of attorney as well as a health-care proxy too.  Since these are complicated documents, it’s best to speak to your family attorney.  If you don’t have one, just seek advice from any qualified estate planning attorney in your state.

Tags: adult, attorney, children, documents, Estate Planning, health-care proxy, law, living will, medical, parent, seniors, will
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Proposed Health Reform

Monday, August 17th, 2009

With all U.S. economy problems -surging bank failures, rising foreclosures, and high unemployment, you would think that the resolution for these crises would be focused on by Congress.  The legislators may have believed in a spin because they started new initiatives like cap-and-trade bill.  Now, they passed the health care reform (H.R. 3200).

Under the proposed law, there is a requirement for employers to offer a health plan and pay the premium (at least 72.5%) for their workers.  In addition, those citizens without insurance will be penalized by 2.5% tax.  Rich people will be punished further with surcharge - they wouldn’t be able to deduct the fee.

However, some bill critics claim that this will deny medical treatment that’s supposedly for the elderly and disabled.  When you look at pages 425-432, the bill authorizes conference payments between health care providers and patients to create “advanced care directive.”  Physicians will receive higher reimbursement rate when they participate, although this is not a mandatory plan.  This medical order may include hospice care, health care proxies, living wills, and other intervention details that the patient wants before the end of his life.

For most health care providers, they want to comply and boost revenue.  Incentive payments require data sharing with government under Physician’s Quality Reporting Initiative.

Tags: bill, Congress, crises, foreclosures, health care reform, health plan, high unemployment, legislators, living will, medical treatment, physicians
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What Do You Need?

Friday, August 7th, 2009

A Harris Interactive poll (2008) found that 55% of adults don’t have wills.  Maybe some don’t want to think about dying, but the truth is: majority doesn’t know how to start one or who to talk to.

An estate plan may be as simple as creating a will or it could also be as complex as building up a living will or trust.  You can talk with a qualified attorney to be enlightened on this but remember that it’s important to create one because you want to ensure the destiny of your assets as well as your children.  When you don’t have any of these, the state will have a free hand on where to take your money and your children along with it when you pass away.

Choose what you need.  A will is an instruction document that states your assets and the individuals or institutions where you want to give it to.  Most wills go to probate after your death.  A probate court will oversee inheritance distribution and debt payment.  A living trust sets up conditions on when and how to distribute your assets.  This will help reduce the taxes paid and avoid probate.  Finally, a living will provides an assignment of medical power of attorney given to a person you trust.

Tags: assets, attorney, death, estate plan, Harris Interactive poll, living will, probate, state, trust, Wills
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Ensure your Preferred Medical Care

Tuesday, August 4th, 2009

The main problem with estate plans today is that they don’t have any documents for health care.  Another serious problem is that they don’t understand the documents they have, or worse, they have the wrong documents.  Here are some documents you need to make sure that your wishes are followed:

• *Living Will - very simple to execute as most states recognize living wills officially.  The idea behind this is to avoid certain levels or types of care (also known as “heroic measures”) in different circumstances.  A very simple living will would state “I don’t want to prolong my life through any artificial means if I contracted a terminal illness with no hope for recovery.”  Although following this statement may result to a debate (since there is no exact definition of a terminal illness), it’s still necessary to guide your relatives on what to do when you’re brain dead or in a vegetative state.
• *Do not hospitalize/resuscitate order - DNH and DNR orders are common for older people in frail conditions, most especially those in nursing homes.  These people preferred to be in the comfort of their homes rather than pass away in a hospital.
• *Power of attorney/health care proxy - a document that appoints a person or several people to make the medical decisions when they’re unable to do so.

Tags: DNH, DNR, documents, health care, health-care proxy, living will, plans, power of attorney
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Never Procrastinate

Monday, August 3rd, 2009

When faced with a difficult decision, people naturally procrastinate.  For example, planning on your own demise is the most common thing that you delay until it’s too late.  Remember that wills are important even if they’re not mandatory.  Your affairs will be decided by the state if you don’t have a will when you die.  And worse, someone else will make your healthcare and financial decisions when you’re no longer able to make it on your own.

Here are some of the negative consequences when you don’t make a will:

• *Your preferences for burial instructions and life-support procedures may not be exactly followed.
• *The state may decide over your minor children’s guardianship.
• *A court-supervised probate may hold your estate which can result in costly fees.

To prevent these scenarios, you need to prepare any or all of the following: Will, Revocable Living Trust, Durable Power of Attorney (both financial and healthcare), and a Living Will.  Remember to date, sign, and notarize them for safekeeping as well as review them periodically most specially if there are changes in your family situation (death of a beneficiary, new child, divorce, or marriage).  To further eliminate conflicts, compare the trust or will beneficiaries to the ones named in your retirement plans or insurance.

Tags: decision, durable power of attorney, fees, financial, guardianship, healthcare, living will, planning, probate, revocable living trust, state, trust, will
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President Barack Obama Recommends a Living Will

Tuesday, July 28th, 2009

Recently, President Barack Obama urged all Americans to prepare a living will.  These wills allow people to specifically give instructions if they become incapacitated or ill to make health decisions.  The President mentioned his own family for an example.  He said that he and Michelle Obama (First Lady) have living wills as well as his grandmother who recently died (last November).  In a health care online forum sponsored by AARP, he said “You wouldn’t want somebody else to make those decisions for you.  Therefore, I’d encourage everyone to have their own living will.”

To get one, you can obtain forms from hospitals.  Also, there’s a program of National Hospice Palliative Care Organization called Caring Connections that’s focused on improvement of end-of-life care.  They offer free downloads of living will form or advance directive at its web site for each state.

Common mistakes that people make in their living will is the failure to update it if it’s done years ago, failure to update when they change states, and not getting power of attorney for health care.  When you go to a lawyer, he or she can give you helpful advice, teach you about medical issues arising from it, or warn you about what will happen when you don’t have one.   

Tags: AARP, attorney, Barack Obama, Caring Connections, health care, living will, medical issues, Michelle Obama, mistakes, National Hospice Palliative Care Organization, power of attorney, President, Wills
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Preparing for your Final Hours

Tuesday, July 28th, 2009

For the moment, forget about health-reform debates.  You should have a living will that specifies the kind of care for your life if you are unable to speak for yourself.  Ethicists, lawmakers, and doctors have been urging the Americans to do this but in nursing homes, less than half have done so.  Overall, less than one third of American adults also have a living will.

According to a report from Rand Corp. in Congress, many people are baffled by legalities and don’t understand the consequences and options.  In addition, patients and doctors alike are reluctant to bring up the subject of death.

Advance directives are truly for the living as well as for the dying.  Without your specific instructions, your family members may not be able to decide if they would keep you artificially alive, let you die when you have no hope for recovery, or what level of disability you would like to live with.

A registered nurse at Inova Hospital (Falls Church, Va.), Audrey Seeley, said “Everyone knows they will soon die, but it’s scary to think how.  I see many incapacitated patients say that they don’t care what happens to them.  But their family really does.”

Tags: American, Audrey Seeley, Congress, death, die, disability, Inova Hospital, lawmakers, legalities, living will, Rand Corp, Wills
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Create your Estate Plan Today

Saturday, July 25th, 2009

Better Business Bureau reminds people that estate planning is not just for the wealthy.  They advise consumers to create an estate plan if they have something of value to pass on to their loved ones after death.  According to surveys, 55% of adults don’t want to set up an estate plan because either they don’t want to think of dying or they believe that they don’t have any assets to pass on.

However, if you don’t give your final instructions, nobody would know where your money should go or how will your children be taken cared of.  Do you want to leave these important decisions to the state?  If not, it’s important to create an estate plan and ensure that your wishes will be followed.

Creating an estate plan may be simple if you just draft a will.  But it can also be complex when you’re trying to set up a trust or a living will.  A will is something that you create to allocate your assets and establish guardianship of your children.  On the other hand, a living trust could set up conditions to distribute your assets while reducing inheritance taxes and avoiding probate.  Finally, a living will communicates a person’s desire for lifesaving measures in case there’s mental incapacity to decide on an emergency medical situation.  To help you draft these important documents, make sure that you consult an estate planning attorney.

Tags: attorney, Better Business Bureau, estate plan, estate planning attorney, living trust, living will, wealthy, will
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Living Wills: Important in All Life Stages

Tuesday, July 14th, 2009

Mitch Albom, the author of the book Tuesdays with Morrie, brought the character of Morrie Schwartz into life.  In the book, Schwartz said “People are acting as if death is so contagious.  But in reality, it’s not contagious.  Death is so natural, as natural as life itself.”  Nevertheless, people still avoid the topics of dying and death, even if this popular biography has successfully made death seem accessible.

It’s a unique human experience to be aware of one’s own mortality.  Although for some people it’s not easy to discuss, most would not want to burden their loved ones of any significant health change or a catastrophic event.  Despite this, however, more than two-thirds of adults don’t have any living will or advance directives.

Young people are mostly the ones who have not expressed future preferences while older adults are more aware on giving instructions about health care and appointing someone to make the medical treatment decisions when they’re stricken with a serious accident or disease.

Remember that whether you’re young, middle-aged, or older, any responsible adult benefits from creating a living will.  When you’ve put your preferences and wishes on paper with the help of an attorney, it’s essential to have a meaningful conversation and discuss it with your family.

Tags: accident, attorney, death, disease, health care, living will, Mitch Albom, Morrie Schwartz, mortality, Tuesdays with Morrie, will
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What is Estate Planning?

Thursday, June 18th, 2009

It’s important to have an “estate plan” in place no matter how much your net worth is.  Such plan will ensure that your financial goals are met and your family gets your assets after you pass away.

Several elements of an estate plan include: a will, living will or a health-care proxy (sometimes called medical power of attorney), and power of attorney assignment.  For some people, it would also make sense to have a “trust.”  However, you have to be mindful of both state and federal laws governing estates.  That is why it’s important to consult an attorney for your estate planning.

A good place to start is to take inventory of your assets.  These consist of your business interests, real estate properties, insurance policies, retirement savings, and other investments.  Answer these three questions?

1. 1. Who will inherit your assets?
2. 2. If ever you’re incapacitated, who do you want to handle your financial affairs?
3. 3. If you’re unable to make decisions yourself, who do you want to make medical decisions for you?

Remember that everybody needs an estate plan and it’s not just for the wealthy.  Inheritance can sometimes be a loaded issue.  So by being clear on your intentions, you can help dispel potential conflicts when you’re gone.

Tags: assets, attorney, estate plan, health-care proxy, inheritance, laws, living will, power of attorney, trust, will
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