Orlando Estate & Elder Law

Heirs Down the Line Preserve Less

The further removed heirs are from the generation that initially earned generational, family wealth, the less likely they will be to preserve that wealth.

Some people have earned great wealth through their own efforts and know how hard that is. Their children are often, but not always, also aware of how much hard work went into amassing enough wealth to be able to pass it down for generations.

They will often continue trying to preserve the wealth.

However, the situation gets murkier when it comes to the grandchildren and great-grandchildren of the initial wealth generators, as Private Wealth discusses in "Heirs May Not Guard Wealth, An Advisor Says."

The further removed heirs are from those who created the wealth, the less likely those heirs are to understand the work that went into it and the more likely it is that having wealth will seem like a natural occurrence to them.

This often leads to these later generations spending more of the wealth than they should and not leaving enough for it to continue passing down through the family.

There are ways to help protect against this.

Those who create the wealth can discuss the issue with their estate planning attorneys and devise ways to make it more difficult for later generations to waste what they inherit. Another good idea is to make sure that subsequent generations receive solid financial educations and advice.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Private Wealth (Dec. 19, 2016) "Heirs May Not Guard Wealth, An Advisor Says."

Stretch IRAs Stretched to a Limit?

The Senate Finance Committee unanimously voted to eliminate stretch IRAs. Some experts believe that it is likely to become law.

Stretch IRAs are an important tax and estate planning tool for many wealthy people. They allow a non-spousal beneficiary to inherit an IRA account and stretch any taxes owed on it throughout their lifetimes. This allows for more funds in the account to be used to grow wealth than would be possible if taxes were due immediately.

Many members of Congress have long sought to eliminate this possibility, but their attempts have failed.

The Senate Finance Committee has now voted to eliminate stretch IRAs by making all taxes due within five years of inheritance, as Financial Advisor reports in "Stretch IRA: Are Its Days Numbered?"

The legislation is unlikely to pass on its own, but it still stands a good chance of becoming law as part of a larger tax overhaul that Republicans in Congress are expected to propose. For that overhaul to work, the Republicans hope it can be presented as revenue neutral overall.

They want to have any tax cuts paid for by raising other revenue, cutting spending or covered through expected financial growth. Although the revenue consequences of eliminating stretch IRAs are disputed, some believe it could bring in billions more per year. As a result, it is likely to be included as a way to help pay for other tax cuts.

If this does become law, many people with hefty retirement accounts will want to revisit and update their estate plans as soon as possible.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

 

Reference: Financial Advisor (Dec. 23, 2016) "Stretch IRA: Are Its Days Numbered?"

Cutting Benefits Relied On By Elderly Could Cost Lives

The facts that Social Security and Medicare will eventually run out of funds and that Republicans are now in control of the government have many elder law advocates worried that elderly entitlement programs will be reduced. That could lead to unintended consequences.

One of the major causes of suicide in the United States is worry over financial troubles. When people do not have enough money to make ends meet and are not certain how they can get the money, some of them despair and turn to desperate means including suicide.

Most of the time the people who commit suicide for these reasons are working age people. Thanks to Social Security and Medicare, most elderly people in the United States have a level of protection that they can rely for their basic needs.

However, if those programs are cut or have their benefits reduced, that could change as Financial Advisor discusses in "Senior Suicides Could Rise If Social Security And Medicare Cut, Experts Warn."

Experts have concerns for two reasons.

The first is that there could be a devastating psychological impact for some elderly people who were promised benefits they will no longer receive. The second is that cuts to benefits could lead to more elderly people struggling financially.

Both of these problems could lead some people to commit suicide.

Of course, it should be noted that most proposals to reduce Social Security and Medicare benefits do not apply to those currently receiving benefits or those who will soon be receiving them. Most proposals apply only to younger people.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Financial Advisor (January 5, 2017) "Senior Suicides Could Rise If Social Security And Medicare Cut, Experts Warn."

What Kind of Dancers At Your Funeral?

Funerals are different all over the world and in many places, including the United States, there is a growing trend toward the unusual. A recent funeral for a Taiwanese politician may convince you to plan your funeral yourself.

If you came across a procession of 50 multicolored Jeeps, each with a scantily clad woman pole dancing on top, you probably would not assume you had just encountered a funeral procession. However, in Taiwan, that’s exactly what happened at the funeral for Chiayi County Council Speaker Tung Hsiang.

His son made the arrangements for the pole dancers after having a dream that his father wanted his funeral to be hilarious. Apparently, pole dancers at funerals are not uncommon in Taiwan and rural China, though outright nudity at funerals is banned.

CNN reported on this unusual funeral in "50 pole dancers escort Taiwan politician's funeral procession."

The practice of having pole dancers at funerals in Taiwan apparently began in the 1980s and is part of a larger worldwide trend of families wanting unique and often lavish funerals to remember their loved ones.

While the United States has not yet had pole dancers on Jeeps as part of funeral processions (so far as we know, anyway!), many families have opted for unique and memorable funerals.

One thing you might want to take away from this story is to not rely on family members to plan how you will be remembered at your funeral. Instead, you can make your wishes known in your estate plan, avoiding the risk that a family member will have a dream about something you might not approve of.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: CNN (January 6, 2017) "50 pole dancers escort Taiwan politician's funeral procession."

Deductions for Donations to Wealthy Colleges May Disappear

Many are concerned that the costs of going to college are too high for the average American family. A new proposal would make some colleges bring down costs by going after their donations.

One of the issues during the 2016 Presidential campaign was the high cost of getting a college education and paying off student loan debt. The various candidates made many different proposals ranging between making all public colleges free to changing how student loans are paid off.

The winner of the election, Donald Trump, did not make a specific proposal on how to make college more affordable, but he did propose changes to the student loan program.

He might have a cost proposal on his desk before long, according to Private Wealth in "Rich College Donors' Tax Break Suddenly in Danger"

One of the issues with the cost of college is that some of the most expensive schools are also the wealthiest since they have large endowments. Some reform advocates have suggested that the schools should use their endowments to defray more tuition costs for middle-class students.

Republicans in Congress will soon vote on a proposal to do just that.

The idea from Tom Reed, a congressional Republican, is that 25% of any donations to a school with an endowment over $1 billion must go to financial aid or the donor will not receive a tax deduction for the gift.

President-elect Trump has not endorsed this proposal, but Tom Reed is the vice-chair of Trump's transition team. If this passes, then wealthy donors will need to revisit their estate plans and any planned gifts to universities.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Private Wealth (January 5, 2017) "Rich College Donors' Tax Break Suddenly in Danger"

How Might Trump Policies Affect the Elderly and Disabled?

How the new President will affect the elderly has many people concerned. It is not yet certain what policies he will endorse.

Every new Administration brings uncertainty and questions about how changes in government policies and programs will us and our most vulnerable citizens – the elderly and those with special needs. Michael Gilfix, a nationally known authority in the field of law, aging and estate planning, recently shared his insights and those of his Trump Policy Analysis Group (TPAG) in the digital publication, Wealth Management.

Here are some of their observations in regard to policies affecting seniors, veterans and the “medically needy.”

• Social Security and Medicare: Trump has stated that he does not want to change Social Security and Medicare. However, he has not stated what, if anything, he will do to ensure that the programs remain solvent. Many of his Republican allies would like to reduce or privatize both programs.
• Medicaid: TPAG has examined some of the proposals which are designed to restrict protective planning – making it much more difficult for older Americans to protect their homes and other assets while qualifying for Medicaid, particularly in a Long Term Care setting. They recommend all seniors, and their families, stay up-to-date as more information becomes available.
• Tax Proposals: As a candidate Trump proposed many changes in the tax code, including to the estate tax and the capital gains tax. These changes could have a dramatic impact on estate planning and require that many current plans be revisited.
• Special Needs: No proposals have yet been made that would directly affect services for special needs children and adults. However, changes in the way federal Medicaid dollars are dispensed to the states could impact programs on a state-by-state basis.
• Veterans’ Benefits: While candidate Trump advocated supporting and even expanding services to veterans, there are currently proposals in Congress to restrict access to needed programs such as Aid and Attendance.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wealth Management (January 6, 2017) "How Trump Policies Could Affect the Elderly and Those With Special Needs"

Hospice Makes the Most of Life

It has been known that hospice care is beneficial in the very last days of a terminally ill patient's life. New research suggests that longer stays in a hospice are even more beneficial.

When a terminally ill elderly patient has only a few days left to live, it is now common to move the patient from a hospital or nursing home to a hospice. Staying in a hospice allows the patient to pass away more comfortably and often in a more home-like environment.

It is normally also beneficial to patient’s family members.

People often report that their loved ones are better cared for and more comfortable in a hospice. That can help the family with the grieving and acceptance processes.

FOX News reports on a new study that not only supports these beliefs, but also provides new insight into hospice care in "Hospice care linked to higher family satisfaction."

The research was conducted with 1,970 terminal cancer patients, approximately half of whom received hospice care.

The study found that hospice care led to better pain-management, symptom relief and end-of-life care. Families of patients who received hospice care were more satisfied than the families of those who did not.

One important finding was that longer stays in a hospice were associated with greater amounts of satisfaction. Hospice stays longer than 30 days were the most beneficial.

Elder advocates and the family members of terminally ill patients can learn from this study. Many people think hospice should be saved for the very end of life, but the findings of this study suggest that earlier hospice enrollment may benefit both the patient and their family.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: FOX News (January 5, 2017) "Hospice care linked to higher family satisfaction."

Does Largest Insurance Policy in History Have the Force?

The death of actress Carrie Fisher has sparked much fan discussion about what will happen to the role of Princess Leia in the Star Wars franchise. However, Disney appears to have been prepared for the contingency.

When Disney originally announced plans to continue the Star Wars story with three new movies  utilizing the older films' storyline, many fans wondered not only if the original actors would be able to adequately reprise their original roles but if they would live long enough to do so. Much of the speculation centered around Carrie Fisher reprising her role as Princess Leia, since the actress had long and public battles with alcoholism and depression.

Fisher did complete filming on two of the anticipated three movies, but her recent death has caused speculation about what will become of the character in the third and final film.

Disney, which owns the rights to the franchise, will have to decide whether to rewrite the script, cast a different actress or use a CGI likeness of Fisher. All is not lost for Disney, however, as they took out the largest life insurance policy in history to protect themselves in case Fisher could not finish filming the movies.

The story was reported in a Daily Mail article titled "Carrie Fisher's death will trigger biggest EVER personal accident claim after Disney took out $50MILLION policy in case she couldn't finish Star Wars films."

The $50 million that Disney will receive from insurers, should go a long way to making them whole and easing their pain from not being able to use Fisher as a live actress in the final Star Wars film. At the same time, however, details of the Fisher estate plan are not known at this time.

She might have left instructions about how and if her digital likeness could be used, which could have an impact on Disney's plans for the film. Fisher allowed a digital likeness of her younger self in another recent Star Wars film. Her contract with Disney might also contain provisions giving Disney the right to use her digital likeness, in case she was not able to complete filming.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Daily Mail (Dec. 30, 2016) "Carrie Fisher's death will trigger biggest EVER personal accident claim after Disney took out $50MILLION policy in case she couldn't finish Star Wars films."

Star Wars and Digital Asset Planning

The latest movie in the Star Wars franchise has sparked a trend in Hollywood, as actors are seeking to define how their images can be used posthumously.

The Star Wars movie franchise has been going strong for nearly four decades. Some of the characters in the first movie are being reused in the newest films. That did not present any problems in the 2015 release The Force Awakens,  since it is set many years after the original movie. Consequently, the same actors could reprise their original roles.

However, the 2016 release Rogue One is set just before the original Star Wars movie and has some of the same characters.

Peter Cushing who played one of those characters in the original film, passed away decades ago. Carrie Fisher played another returning character. Although she has since passed away, she was alive at the time of filming.

The movie producers did not recast the roles, but instead used CGI effects to make it look like the original actors were playing the roles. There is speculation that the next Star Wars film to be released will also use Fisher's digital image, now that she has passed away.

This has sparked a new trend in Hollywood according to the Daily Mail in "Actors rush to protect their image from 'digital resurrection' after they have died following eerie Star Wars: Rogue One reanimation of Carrie Fisher."

Hollywood stars are changing their estate plans to give instructions about how their likenesses can be used posthumously, if at all. For example, some are leaving instructions that their images cannot be shown using alcohol or drugs.

Under California law, celebrity estates have the right to control the likenesses posthumously, but there are no default protections about how the images can be used. It is up to the estates, unless an estate plan instructs otherwise.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Daily Mail (Dec. 31, 2016) "Actors rush to protect their image from 'digital resurrection' after they have died following eerie Star Wars: Rogue One reanimation of Carrie Fisher."

Curative Value of Friends for Elderly

One of the biggest crises facing elderly people is loneliness. The more isolated an elderly person is, the more likely he or she will suffer from dementia and other health problems. There is a cure.

Loneliness is not a minor problem for elderly people. Older people who feel isolated and alone suffer from a wide-range of problems. Loneliness has been shown to lead to an increase in dementia rates, nursing home admissions and even an increase in mortality rates.

Elder law advocates are very aware that loneliness in older people also makes them more susceptible to scams and fraud, including being unduly influenced to change their estate plans.  As a result, advocates often seek ways to decrease the loneliness that some elderly people feel.

The cure is relatively simple as the New York Times reports in "Loneliness Can Be Deadly for Elders; Friends Are the Antidote."

To overcome loneliness, elderly people need friendships. However, there is a difference in the way that older people maintain friendships compared to the way that younger people often do.

For younger people, friendship is often about volume. They can stave off loneliness by maintaining connections with a large number of people, even if those connections are mostly superficial.

That does not work for elderly people. Instead, older people tend to have fewer friendships and to shed superficial relationships. To overcome loneliness, the elderly need close friendships. One close friendship with regular contact is often enough to avoid the debilitating effects of loneliness.

For more information about elder law issues and estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: New York Times (Dec. 30, 2016) "Loneliness Can Be Deadly for Elders; Friends Are the Antidote."