Garland Law Offices, P.A.

Estate Planning Includes Your Digital Assets

“Between Facebook, iTunes, email and digital banking and investment accounts, most of us lead pretty active lives online. Do you have a plan for what will happen to all of your passwords and accounts, when you pass away?”

It would be great if your parents would maintain a notebook with all of their online account passwords. If they don’t, get ready to spend a long time searching and holding up important estate and financial planning tasks. This is the message from Kiplinger in its article, “Leaving Your Digital Legacy.”

Most of us live at least some of our lives online. We have email and social media accounts, and we make purchases of digital books and music. We also pay our bills and conduct our banking online.

Unfortunately, much of our virtual property can’t be left to our heirs through a will. That’s because we don’t actually own them—we just have licenses to use those services. Even online accounts like email and social media sites aren’t ours either. Those providers control what happens when our contracts end at death.

Here’s what you can do to prepare to leave your digital legacies: make a list all your online accounts, which might include email accounts, financial accounts and utilities, banking accounts, retirement accounts, mortgages and insurance. Don’t forget any music, photos, or books stored online; any websites, blogs, or licensed domain names, merchants like eBay or Amazon and online communities or listservs where you’ve been active.

Consider what you’d want to have happen to those accounts. Would you want a loved one to have access to your music library or to your photos? What about your emails? Do you want your emails saved or deleted? The same thing is true with your social media accounts. They can be deleted or turned into “memorial” accounts, in some cases. On some sites, you can also have someone post a final status update after your death. With that in mind, you should consider nominating a “digital executor.”

You can allow your digital executor to know where you keep your passwords. Discuss your accounts with your digital executor and leave him or her detailed directions on where and how to find passwords, user names and other essential information.

 You should also speak with your estate planning attorney about leaving virtual items you actually own, such as photographs that you took or purchased music, to people in your will. Be sure your executor has the access information so they can be downloaded. Another option is to “vault” your digital items with a company that will place all of your digital information (including passwords) on one online platform.

Your digital legacy is important, so be certain that your heirs can get to these assets.

Reference: Kiplinger (August 2017) “Leaving Your Digital Legacy”

What a Trump Presidency Means for Your Money and Plans

“The uncertainty and challenges now facing seniors, disabled and medically needy Americans are unequaled and unsettling.”

The election of Donald Trump as president will certainly mean changes in policy are likely to occur that affect the elderly population and those with special needs. According to WealthManagement.com’s article, “How Trump Policies Could Affect the Elderly and Those with Special Needs,” the uncertainty and challenges now facing seniors, disabled, and medically needy citizens are unsettling. Let’s look at a few:

Social Security and Medicare. Trump has said Social Security and Medicare will remain intact and (presumably) solvent. But how solvency would work with the impending bankruptcy of both programs (Medicare first, long before Social Security) remains to be seen. One proposal to counter insolvency is some form of Social Security and Medicare privatization. The Affordable Care Act (ACA) took some steps designed to extend the solvency of Medicare, and Trump said he’d keep parts of the ACA, but didn’t explain how he’d pay for it.

Medicaid. Each state has its own state Medicaid plan, but there are rules to be followed from Washington. Proposed block grants mean each state would receive a certain number of Medicaid dollars, and the state would decide how to use and spend those dollars. The proposed plans may be designed to restrict protective planning and make it much harder for seniors to protect their homes and other assets while qualifying for Medicaid, particularly for long-term care.

Gift and estate tax. Trump wants to eliminate the gift and estate tax, perhaps replaced by a “mark to market” tax of capital gains at death. A compromise could significantly increase the level of estate and gift tax protection.

Individuals with special needs. So far, there are no proposals made that would directly affect services for special needs children and adults.

Veterans’ Benefits. Many think Trump supports maintaining and maybe expanding services for veterans. But proposals that predate the election have been introduced that could restrict access to needed programs, such as Aid and Attendance, which provides financial assistance for veterans and spouses of veterans who need higher levels of home care assistance.

Regardless of the future changes, there will be a premium on advanced planning. This will increase the involvement of younger generations, since planning that involves and relies on involvement of the children and grandchildren will expand dramatically.


Reference: WealthManagement.com (January 6, 2017) “How Trump Policies Could Affect the Elderly and Those with Special Needs”

Estate Planning Changes for LGBT Couples

“LGBT families are experiencing major financial implications following Obergefell v. Hodges, a landmark ruling from the United States Supreme Court that made same-sex marriage legal in all 50 states.”

The ruling lets same-sex couples file jointly for tax purposes and changes estate planning because now many requirements of opposite-sex couples are placed upon same-sex couples. This means that estate planning should be straightforward and much easier. The Huffington Post article, “5 Estate Planning Tips LGBT Families Need to Follow in 2016,” has a handful of tips for starting a life with a same-sex partner.

1. Make a Will. A will can do several things to protect your assets and wishes when you die. It prevents costly probate issues, properly divides your assets per your wishes and can provide guardianship of your children. If you die without a will in place, intestate succession happens, which varies by state.
2. Look at a Prenup. It’s not too romantic to ask your partner after saying “yes” to a marriage proposal to sign a prenuptial agreement. But this agreement lets you enter into a legal and financial arrangement prior to the wedding, and you can avoid some legal issues if you divorce.
3. Sign a Power of Attorney. If you’re married, don’t just assume that your spouse is automatically granted power of attorney over your affairs. There needs to be a power of attorney created, and it can be for either or both financial and health care control. If your spouse becomes incapacitated, you’ll be able to make financial and health decisions on his or her behalf. Also, note that while a living will lets you state the kinds of health care you wish to have, a power of attorney allows your spouse to make decisions on your behalf.
4. Examine your Estate Tax Liability. The state where you live may have its own estate tax at a low threshold. For federal taxes, estates worth over $5.45 million need to pay federal estate tax.
5. Be Ready for the Unexpected. In case the Supreme Court’s decision is overturned in the future or other laws go into effect, it’s critical that your estate planning strategy contemplates as many eventualities as possible. A few documents to consider are a Domestic Partnership Agreement, a Living Will and a Living Trust.

Lastly, your final arrangements should also be detailed while you are alive and should be included in your estate plan.

Reference: Huffington Post (July 13, 2016) “5 Estate Planning Tips LGBT Families Need to Follow in 2016”

Same-Sex Couples are in Need of Estate Planning

“Thousands of gay and lesbian couples are celebrating wedding anniversaries this year. But they might want to add another momentous date to their calendars: June 26^th.”

June 26 is the day last year that the Supreme Court declared same-sex marriage legal in the U.S.

Bankrate’s article, “Same-sex marriage tax and estate planning tips,” says the IRS had been accepting jointly filed federal tax returns from same-sex couples married in states that sanctioned their unions since the Supreme Court struck down the Defense of Marriage Act in 2013. But last year’s decision in Obergefell v. Hodges made taxes less troublesome for gay and lesbian married couples at the state and federal levels across the United State.

Same-sex married couples no longer need double duty for state and federal tax filing because the Supreme Court ruling allows joint filing at both levels. There is no need to file differently with a state tax department in a state that previously didn’t recognize same-sex marriages.

The court ruling also opened up a new world of estate planning for same-sex married couples. With that in mind, here are some estate planning tips.

Marital deduction and portability. Same-sex married couples are now able to use the unlimited marital deduction from federal estate tax and gift tax for transfers between spouses. In most situations, one spouse can leave an unlimited amount to his or her surviving spouse without any federal estate tax liability. Also, the portability provisions of federal gift and estate tax laws typically allow a surviving spouse, regardless of gender, to use any portion of his or her deceased spouse's unused applicable estate and gift exclusion amount—for 2016, that amount is $5.45 million per spouse.

Greater gift splitting. Same-sex married couples also now can use gift splitting—with the annual gift exclusion amount of $14,000. A same-sex spouse is allowed—with the consent of his or her husband or wife—to give a total as if each spouse contributed half of the amount. This lets married couples increase their total gift tax exemption amount.

Tax and estate help. Some states have their own estate taxes in addition to the federal estate tax. Don’t allow a state tax collector to get a big chunk of your estate in taxes by failing to plan for estate taxes.

Every state has different tax laws, which is another reason for all married couples to speak with an estate planning attorney, as these laws are complex and confusing.

Reference: Bankrate (June 23, 2016) “Same-sex marriage tax and estate planning tips”

Holiday Caregiving

The holidays are a wonderful time of year for family gatherings, reflection on what we have and the spirit of giving. But the holidays can also be a time of stress and sadness for those who are caring for family members, who are struggling with health problems, frailty, dementia and loss. As a caregiver you may feel overwhelmed, frustrated, depressed or resentful as you envision a perfect holiday that never happens.  However, there are measures you can take to enjoy the holidays.

First:  know that you are not alone.

A recent study by the National Alliance for Caregiving and AARP found that 44.4 million Americans over age 18 are providing unpaid care to an adult.   According to the survey provided by the National Family Caregivers Association:

• The typical caregiver is a 46-year-old woman who works and spends more than 20 hours per week caring for her mother.
• Female caregivers provide more hours of care and provide a higher level of care than male caregivers.
• Almost seven in ten (69%) caregivers say they help one person.
• Many caregivers fulfill multiple roles. Most caregivers are married or living with a partner (62%), and most have worked and managed caregiving responsibilities at the same time (74%).

Second:  find help.

There are many resources available to a caregiver. Some of these include family members, friends, homecare providers, and geriatric care managers.

Most family members and friends are willing to help, but don’t know what to do.  It is important to communicate with them about what kind of help you need and let them know specifically what they can do.

A good source for professional advice is a non-medical home care agency.  Many offer free consultations and provide home health aides to assist your loved one with such things as bathing, dressing, shopping, household chores, transportation, companionship and much more. A home care agency may also help you coordinate adult day care or other community services.

You may wish to pay for a formal assessment and care plan from a professional geriatric care manager. Care managers are valuable in helping locate resources, finding money to pay for care, coordinating care amongst family members, and providing advice on issues, which you may be struggling.

Lastly:  take care of yourself first in order to give effective and loving care.

You need to take care of yourself by keeping your physical, mental, emotional and spiritual self balanced. There is joy and respite in balancing all of these areas in our life. This is what makes us efficient and happy. Here are some ways for you as a caregiver to take care of yourself:

• Maintain a positive attitude. Take time to be grateful for everything that is good in your life. There is always something. Adjust your expectations for the holiday season. If you aren’t expecting that perfect holiday family picture, then you won’t be angry and frustrated that it isn’t something you have right now. It is always possible to change your attitude and perceptions, but it is not always possible to change your circumstances.

• Eat healthy food and be sure to get some exercise. Drink more water, cut down on sugary snacks, pick up some vegetables and fruit for on-the-go snacks.  Walk or do marching in place. Run or walk up and down stairs if that is all the time you have right now.

• Forgive and let go of frustrations, anger, resentment and guilt. Get counseling, talk to a friend or family member or simply write down the negative feelings to get them out of your system. Never take your anger and frustrations out on those you care for.

• Take time to do something you enjoy every day. Laughter is a great stress reliever. Find something funny to read or get on the internet and find a funny video to watch.

• During the holidays, be easy on yourself. If you enjoy holiday activities, then get out there and do them. Ask someone to help with your caregiving duties even if it is just for an hour or two to shop or to see a concert or movie.

Being a “perfect” caregiver during the holidays does not have to look like the perfect on-screen holiday family. How you handle your circumstance will be the key to creating your own peace, happiness and cheer during the holiday season. The holidays can be a time of reflection on good things. Your attitude and a little care for yourself can make a big difference in the care that you give in the coming year.

Accredited Continuing Education Provider

After months of applying and making recommended changes, Garland Law Offices was finally approved as a continuing education provider for Registered Nurses! We are now able to provide continuing education credits to SWs, CALAs, LNHAs, and RNs! If your organization is interested in scheduling a continuing education program, then please contact the office at 732-972-6700 or email [email protected].

Documents that Families Should have on Hand

At a minimum, every person regardless of asset level needs a Durable Financial Power of Attorney, Health Care Proxy, Living Will, and Privacy Authorizations.  Notice, we didn’t say Will.  Other documents can include a Will, DNR, and POLST (if applicable in your state). Families should also have birth certificates, marriage certificates, death certificates, Medicare cards, insurance cards, Social Security cards, discharge papers from the service, and financial statements in an accessible location.

These are the minimum.  Once we get into planning, there may be one or more trusts or other legal documents.  As each family and circumstance is different, a consultation and full analysis are a necessity.

Welcome to the Garland Law Offices Blog!

Welcome!  In the coming months we will publish useful and informative information for elders, caregivers, and families in general.  In the meantime, we encourage you to peruse our site, and feel free to reach out to us if we can help you or a loved one in any way.

Gary B. Garland