Will Christoferson 5/13/24 Will Christoferson 5/13/24

10 Steps to Take Now to Secure a Comfortable Retirement: Part 1

Retirement is more than just an end to the working years; it's an exciting new phase of life that requires thoughtful preparation and strategic planning. Since May is Older Americans Awareness Month, it's the perfect opportunity to explore 10 steps you can take now to ensure a comfortable and fulfilling retirement. In this article, we’ll discuss the first 5 steps, why they’re important, and how to implement them. Next week, we’ll continue with the remaining 5 steps.

Let’s dive in, shall we?

Step 1: Plan for the Transfer of Your Assets

Why It’s Important: Effective estate planning ensures that your assets are distributed according to your wishes, potentially reduces estate taxes, and can prevent a lot of legal complications for your heirs. Proper estate planning also helps to avoid the public, often lengthy and costly process of probate, ensuring that your heirs have quicker access to the assets you leave behind. Moreover, clear directives in estate planning can prevent family disputes (sometimes resulting in irretrievably broken relationships) and ensure that your specific instructions are followed, preserving your legacy exactly as you intend.

Practical Steps:

Consult with a Personal Family Lawyer. A Personal Family Lawyer (“PFL”) always starts the client relationship with education about your options that align with your specific family dynamics, assets and wishes. From there, your PFL will help you create a tailored Life & Legacy plan that works when you and your family need it to, keeping you and them out of court and conflict. Importantly, a PFL can also help you avoid unnecessary taxes before and during retirement (and who doesn’t want that?).

Life Insurance: Having adequate coverage to handle any debts and funeral expenses can provide a financial cushion for those who depend on you. As part of the PFL Life & Legacy Planning process, your PFL can educate you about how much insurance you need and how to pass the funds to the people you want, while avoiding unnecessary taxes and ensuring the funds are available as soon as possible.

Find a PFL in Your Community. Go to personalfamilylawyer.com to find the nearest PFL and make an appointment for a 15-minute consult call on their website. Many PFLs have virtual offices for your convenience, so if there isn’t a PFL listed in your locality, choose the closest one.

Step 2: Prepare for Long-Term Care Expenses

Why It’s Important: As we continue to live longer, so does the probability of needing some form of long-term care. These services, whether in-home care, assisted living, or nursing facilities, can be costly and are not typically covered by Medicare. Without proper planning, the high costs of long-term care can quickly deplete retirement savings, potentially leaving less financial support for spouses or other family members. Furthermore, preemptive financial planning can significantly ease the emotional and logistical challenges of arranging for long-term care.

Practical Steps:

Research Long-Term Care Insurance: Investigate different policies early, ideally in your 50s or early 60s, before premiums rise significantly. Compare benefits, coverage limits, and the reputation of insurance providers.

Learn About Government Programs: Understand what Medicare covers and explore Medicaid eligibility for long-term care, which varies by state but generally requires spending down your assets.

Find a PFL in Your Community Who Offers Elder Care Planning. Preparing for long-term care can be tricky because the laws are quite complicated. However, a PFL who offers elder care planning can help you navigate your options and create a plan that preserves your assets for your loved ones, rather than draining them for health care costs. Go to personalfamilylawyer.com to find the nearest PFL who offers elder care planning and make an appointment on their website.

Step 3: Pass on Generational Wealth

Why It’s Important: By ensuring that wealth passes effectively to future generations, you can secure their financial future and teach them how to manage and grow that wealth responsibly. Furthermore, generational wealth can enhance the lives of future family members and their communities by providing educational opportunities, fostering entrepreneurship, and supporting philanthropic efforts. It also instills a sense of responsibility and stewardship, which are crucial for maintaining family wealth over generations.

Practical Steps:

Educational Trusts: A PFL can help you set up trusts that release funds for your children or grandchildren based on milestones such as graduation from college. These trusts also have tax benefits, and a PFL can educate you about how they work.

Create a Family Investment Plan: Include younger family members in discussions about family investments to educate them about financial principles.

Find a PFL in Your Community. A PFL can not only help you create an educational trust but also asset protection trusts so you can create generational wealth for your family. Go to personalfamilylawyer.com to find the nearest PFL and make an appointment on their website. Keep in mind that many PFLs have virtual offices for your convenience, so if there isn’t a PFL listed in your locality, choose the closest one.

Step 4: Leave a Legacy

Why It’s Important: What your family will treasure most is not the financial gifts you leave, but your life lessons, values, and memories that define your family heritage. A well-planned legacy can inspire and guide future generations, providing them with a sense of identity and belonging to a greater family story. You can ensure that your philosophical and ethical beliefs continue to influence even when you're no longer present, helping to shape the character and choices of your descendants.

Practical Steps:

Record Life & Legacy Interview with a PFL: All PFLs include an interview as an important part of their unique Life & Legacy Planning process. The interview ensures your family has a piece of their family history they can hold onto long after you’re gone. They’ll also treasure being able to see you and hearing your voice whenever they want.

Step 5: Cultivate and Share Family Values and History

Why It’s Important: Continuing the idea of leaving a legacy, know that strengthening family bonds through shared history and values helps maintain a sense of continuity across generations. This cultural and historical continuity enhances their psychological resilience and emotional well-being. Additionally, a well-documented family history can serve as a valuable asset for educational and genealogical purposes, enriching the lives of current and future generations. Here are some steps you can take outside of recording a Life & Legacy Interview with a PFL.

Practical Steps:

Create a Family Archive: Gather photos, letters and important documents in a digital format to ensure preservation and easy sharing. Enlist the help of a younger family member (Gen Z, anyone?) if you need to. Also consider writing down recipes, stories, and holiday traditions that can be passed down as family legacies.

Compile Family Histories: Write or record stories about family elders, significant events, and the origins of family traditions. Note that writing these down the “old school” way, i.e., pen and paper, will be meaningful to younger generations. They’ll love having a piece of paper with your handwriting on it.

Host Family Reunions: Regular gatherings not only help reinforce family bonds but also allow older generations to impart wisdom and traditions firsthand.

So whether you're a few years away or are about to retire now, it’s never too early (or too late!) to start planning. Be sure to check back next week for even more steps you can take to ensure peace of mind when the time comes.

Let Us Help Secure Comfort in Your Retirement

At our firm, we do more than just guide you through estate planning; we provide you with peace of mind, knowing you are free to enjoy retirement. However, understanding the complexities of retirement—from estate planning to ensuring long-term care and preserving generational wealth—can be daunting. That's why, as your heart-centered Personal Family Lawyer Firm, we streamline the process, making it as easy on you as possible.

If you're interested in learning more about how to create a Life & Legacy Plan that secures your comfort in retirement, we invite you to schedule a complimentary 15-minute call with our office. Let us help you live your best life, every step of the way.

Schedule a Consultation by Clicking Here

This article is a service of BC Counselors at Law, PLLC. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Will Christoferson 5/7/24 Will Christoferson 5/7/24

Estate Planning: A Gift of Peace and Power for Every Mother

Moms spend their days and nights thinking about how to make sure their children are happy, healthy, and safe. If you’re a mom, you know. If you aren’t a mom, you were born because of a mom. It’s one of the two things we all have in common.

So, as Mother’s Day approaches, let’s talk about the most meaningful gift you can give or receive on this hallmark holiday that means a lot: every mom deserves the peace of mind and power to create financial security for themselves and their children with thoughtful estate planning.

Now you may be thinking, “Estate planning? Really? Isn’t that just for rich people?” Or, “How does drafting a Will give me peace of mind and financial security?”

Glad you asked! Most people have a general concept of what “estate planning” means, but in reality, don’t fully understand it. Believe it or not, estate planning is far more complex than just drafting a Will, and it’s not just for rich people, though doing it will leave your family much more “rich” than if you don’t. Once you appreciate the power of estate planning, you’ll know why it has the power to “gift” you peace of mind.

So let’s start by parsing out what estate planning really is and why it matters for every mom you know, including yourself if you are a mom.

Why Estate Planning Matters for Moms (and Dads too)
Imagine having a roadmap that clearly shows how your financial assets, the guardianship of your children, and even your most cherished possessions are handled should anything happen to you. Now imagine that your roadmap is a legal document and the people receiving that roadmap are required to abide by your wishes and are able to easily do so because your wishes are so clear and you’ve left a guide for your family along with the roadmap.

That’s what estate planning is: a legally enforceable plan for your future, and ideally a guide to help your loved ones navigate the plan. And contrary to what most people think, estate planning isn’t just for the wealthy or those who are nearing the end of life. It’s for everyone, including you! Thoughtful estate planning gives you the power to make decisions now that will impact your and your family's future, giving you peace of mind to know you aren’t leaving a mess for the people you love.

You may be wondering, “Really? How does estate planning give me peace of mind?” Relax - grab a mimosa or some tea, kick your feet up, and let’s talk about how it works.

Estate planning allows you to specify who will care for your children if you are unable to do so yourself. It’s undoubtedly a tough subject, but choosing a guardian you trust to raise your kids as you would brings immense comfort, and may even guide you to build deeper relationships with the people you’d call upon to care for your children, if you cannot. Knowing that your wishes are written down and legally protected can relieve a lot of stress, and relax any of those “stressful in the background” thoughts about that one person you would never want raising your kids.

Without a plan, a judge would decide who takes care of your children if you cannot, and they might not choose the person you would have wanted. Or worst of all, they may even choose the one person you’d never want raising your kids because maybe they look great on paper. Think about it: a judge knows nothing about you or your kids. They only know what they see in court filings. That’s it. They’d have to make decisions with no input from you. Kinda scary, right?

When done right, estate planning also lets you direct the distribution of your property and finances. Specifically, it ensures your assets are transferred to the people you choose without unnecessary delays, legal hurdles, or family conflict.

This not only secures your children’s future but also simplifies the administrative process at a time when your family should have space and time to mourn and heal, not get tangled in legal complexities. And if they do get tangled up in conflict, it’s highly likely that those relationships will be forever destroyed. That also happens. Again, more often than you may think.

Here’s the bottom line. When you get these things in order, you can die in peace, and that means you live life more fully.

Estate Planning Equals Empowerment
Estate planning puts the power in your hands. It's a declaration of your values and your voice, legally secured to guide your family when you can't be there. By setting out your wishes clearly, you prevent disputes and ensure your legacy lives on exactly as you intend. After all, someone will have to wrap up your affairs after you die, so it may as well be you, now, while you’re living. So step into your power, safeguard your children's future, and cement your role as the heart and protector of your family.

In the process of getting your estate planning handled, when you work with a Personal Family Lawyer® firm, you’re going to learn a tremendous amount about your finances, and your financial literacy is going to grow in a way that will result in you feeling exponentially more financially secure and clear.

Financial Protection In Case of Loss
Estate planning is especially vital if the unthinkable happens and your spouse or partner dies. Many mothers face not only devastating emotional loss but also the potential for significant financial instability - especially if you aren’t the primary breadwinner in your family. An effective estate plan, however, includes setting up mechanisms such as life insurance, trusts, and instructions for pension or retirement benefits, which can provide you with financial support when it’s most needed. There’s absolutely no reason you and your children need to compromise your lifestyle should something happen to your partner.

For example, an estate plan ensures that you have access to joint assets and that any individual assets held by your spouse or partner are transferred to you or your children without delay. This can be critical in preventing financial hardship during an already challenging time, ensuring that you have the resources needed to maintain your home, cover living expenses, and continue to provide for your children’s needs.

The Personal Family Lawyer Difference
By now, it should be clear that creating an effective estate plan that honors your wishes and secures your and your family’s financial future isn’t as simple as creating a Will. It’s more complicated than that and can be overwhelming, particularly with the legal jargon and the multitude of decisions that need to be made. These decisions are hard, too. When you’re living your life, probably the last thing you want to think about is your death. You’d probably rather have a root canal.

Fortunately, you don't have to navigate the process alone. Personal Family Lawyer firms, like ours, are uniquely trained, and trusted advisors who can guide you through the process, ensuring that your plan fits your specific circumstances and family dynamics. Here’s a bonus: A Personal Family Lawyer can also advise you on tax implications and the best ways to structure your finances to benefit you and your heirs. Yay! (Unless you want to pay extra taxes and give your money to the government instead of your kids, then knock yourself out).

Finally, a Personal Family Lawyer is committed to serving you and your family for the long term by checking in to update your plan as life changes, assets change and your kids grow. By working with a Personal Family Lawyer Firm, you create a plan that is thorough, thoughtful and works when you and your family need it to.

Let Us Give You the Gift of Peace and Power
At our law firm, we don’t just give legal advice or draft documents. We take your power and peace of mind seriously. We also know that you’re busy. As a Personal Family Lawyer Firm, we have processes in place that make getting your estate plan in place as easy as possible, all while being thorough, thoughtful, and mindful of your time and budget.

If you want to learn more about how we can help you create an estate plan that gives you the Mother’s Day gift of power and peace of mind - so you can live life to the fullest - schedule a complimentary 15-minute call with our office.

Schedule a Consultation by Clicking Here

Will Christoferson 4/29/24 Will Christoferson 4/29/24

The Dark Side of the Internet: Protect Yourself From Online Scams and Digital Attacks

In the digital age, online scams and cyber attacks are becoming more frequent, posing risks to not only everyday users but also to lawyers who manage clients’ sensitive information. But there’s no need to fear if you take measures to keep your data safe. And if (when?) you’re working with a lawyer, you should also know what actions lawyers take to protect your data. Taking these two approaches, let’s discuss how you can safeguard yourself from these digital attackers and how lawyers ensure their clients’ data is protected from the bad guys.

And since this article is being published around “Star Wars Day” (i.e., May 4th, as in “May the fourth (Force) be with you”), I’ll refer to the bad guys as the “Dark Side” just for fun.

7 Tips to Protect Yourself From the Dark Side

Navigating the internet safely requires vigilance and knowledge about potential threats, even as the Dark Side constantly comes up with online scams and attacks designed to steal personal information or harm your devices. Here are some essential steps to protect yourself from these cyber threats and ensure your digital experience remains secure.

Verify who you’re interacting with and confirm the identity of anyone asking for personal details online. Scammers often pretend to be from a trusted company. If you receive an email or message that looks suspicious, or even a little off, contact the company directly using information from their official website.
Create strong passwords. This is crucial. Your passwords should be long, unique, and include a combination of letters, numbers, and symbols. Avoid using common words or sequences that can be easily guessed. Additionally, use different passwords for different sites. A password manager can help you generate and manage secure passwords.
Don’t click on links or attachments without knowing who the sender is. Clicking on links or downloading attachments from unknown sources can be dangerous. These can lead to fake websites designed to steal your information or install malware on your device. When in doubt, don’t click, especially when links come to you via text. Never, ever click a link sent to you via text without verifying that the sender is a real friend or company you are doing business with.
Keep your software and devices updated. Regular updates help fix security vulnerabilities. Use antivirus software to protect against malware and other threats.
Educate yourself about the types of scams that exist, such as phishing emails that ask for personal information or offer too-good-to-be-true deals. Being aware is your first line of defense.
If you get a call from a bank, a government agency or even from a child or grandchild asking for money or gift cards for any reason, or access to your computer, tell the caller you will call them back. Hang up, and call your child or grandchild directly, OR the bank or government agency and find out if they were actually calling you. As an added measure, with your family, have a family “code phrase” that must be spoken out loud in the event of an emergency, such as “blackie is a brown dog” or something unique that only your family would know.
MOST IMPORTANT: Never give anyone remote access to your computer, unless it is from a tech support company you engaged with proactively, meaning you called the tech support line on the Company’s website directly, and you initiated the request for support. Scammers will pretend they are from Coinbase or your bank, and tell you they need to access your computer to resolve your account problem. Do not fall for it.

It’s also important to note here that the elderly are the most targeted group for online scammers. So if your parents fall into this age group, pass along this article to them so they are armed with knowledge to protect themselves.

The Dark Side Won This Time, Now What?

Even after taking all these measures, sometimes the bad guys get away with it and scam you, or a loved one. If you think you’ve fallen victim to a scam, it’s important to act quickly. Immediately inform your bank or relevant service provider if you’ve shared any sensitive information. They can take steps to protect your account. You should also update your passwords right away, especially if you believe they may have been compromised. Again, ensure your new passwords are strong and unique. You may also want to report the scam to the alleged sender, so they know someone is impersonating them and can take protective measures themselves. And if applicable, report the scam to the relevant online platform, or even the local police, consumer protection agencies, or internet crime complaint centers.

Rest Easy Knowing We Have Your Back

At our law firm, we don’t just give legal advice; we’re your trusted advisor for life. If you’ve been scammed, we can help you set up your affairs in such a way that there are layers of protection built-in so it doesn’t happen again. As a Personal Family Lawyer Firm, we’re also here for your family. If your elderly parents don’t have an estate plan in place - or it’s been a while since they had it reviewed - we are here for them too. We can help them protect not only their data, but everything they want to pass on to you.

If you want to learn more about how we can help you and your parents create a Life & Legacy estate plan that keeps your family out of court and conflict and ensures your plan works when you need it to, schedule a complimentary 15-minute call with our office.

Schedule a Consultation by Clicking Here

Will Christoferson 4/22/24 Will Christoferson 4/22/24

What Happens To Your Social Media Account When You Die?

When you die, what happens to your online life? Each social media platform has its own rules for dealing with the accounts of deceased users, ranging from permanent deletion to transforming accounts into places for mourning and memory. Understanding these options is essential for managing digital assets responsibly and respecting your wishes. So let’s take a look at the various policies of major social media sites and what you can do to make sure your accounts are handled the way you want. After all, our social media accounts reflect our personalities, interests, and memories, so we want them handled with care.

What Each Platform Allows

Let’s take a look at the practical aspects and discuss what each digital platform allows or requires. Note that these provisions are updated as of April 2024, as this article is being published.

Facebook. Facebook offers two options for accounts of deceased users: either close the account permanently or convert it into a memorial account where loved ones can share memories. The platform allows you to designate a "Legacy Contact" while you’re alive; someone who can manage your memorialized account by updating your profile picture, accepting friend requests, and posting memories. Importantly, they cannot log into the account or view your private message history.

Instagram. Instagram also allows accounts to be either memorialized or permanently deleted. A memorialized Instagram account will display a "Remembering" label and will not appear in public spaces like the “Explore” section. The process requires proof of death, such as a death certificate, so someone will need to provide that after you’re gone.

TikTok. TikTok permits family members or legal representatives to request the deactivation of a deceased user’s account by providing appropriate proof of death. Unlike Facebook and Instagram, and at the time of this writing, TikTok does not currently offer a memorialization option, so your account is permanently removed once the request is processed.

X. X (formerly known as Twitter) allows the family to close the account of a deceased user. This involves submitting proof of death, after which your account and its contents are permanently deleted. X does not provide a memorialization option.

YouTube. YouTube is covered by Google’s overall policies, which offer a proactive feature called the Inactive Account Manager. This allows you to set instructions for your account if you become inactive for a specified period. You can also choose to have your data shared with trusted contacts or have the account deleted.

LinkedIn. On LinkedIn, immediate family members or colleagues can request to remove a deceased member's profile by providing proof of death. LinkedIn focuses on maintaining a professional network and so does not offer account memorialization.

How to close or memorialize an account

It’s important to know that social media platforms generally discourage logging into a deceased person's account as it poses privacy and security risks. To close or memorialize your account, family members must directly contact the service and provide the necessary documentation. They won’t be able to make a phone call, either - they’ll have to find out how to close or memorialize your account on each site separately, which can be time-consuming and frustrating. But there’s a better way! You can create a plan that helps your loved ones navigate the process. To do that, you need a trusted estate planning lawyer.

What an Estate Planning Attorney Can Do

A trusted estate planning attorney plays a crucial role in helping manage your digital legacy, ensuring that your wishes for your online accounts are carried out after your passing. Here’s what a skilled attorney can do to help ensure that your loved ones have the necessary information and authority to manage your accounts:

1. Create a Digital Asset Plan

An estate planning attorney can help you draft a digital asset plan that details your wishes for each of your online accounts. This plan can specify which accounts should be closed and which should be memorialized. It includes all kinds of digital assets, from social media accounts and emails to digital wallets and personal blogs.

Your attorney can also guide you in appointing an executor, a person who will be responsible for managing your online assets according to your wishes. A knowledgeable attorney will explain the responsibilities involved and help ensure that the executor has the legal authority they need to act on your behalf with various digital platforms.

2. Provide Necessary Legal Documentation

A skilled attorney can prepare necessary legal documents that authorize your executor to access your accounts. This might include special powers of attorney and directives that are included in your will, trust, or in a separate document.

3. Secure Your Account Information

A trusted attorney can suggest secure ways to store your account usernames, passwords, and any other necessary information. This information can be kept in a way that respects privacy and security but becomes accessible to the digital executor or designated individuals after your death.

4. Update the Plan Over Time

As laws and platform policies change, a trusted estate planning attorney can help update your digital estate plan. This ensures that it remains compliant with new regulations and continues to reflect your wishes accurately.

However, it’s important to know that most estate planning attorneys treat their clients as a “one and done” transaction. Once your plan is signed, they won’t contact you again to ensure that your plan stays updated over time. And they won’t explain that failure to update your plan regularly means your plan won’t work when you need it to. Instead, work with a Personal Family Lawyer who will keep in touch for your lifetime to ensure your plan works.

How We Can Help

As a Personal Family Lawyer Firm, we don't merely dispense legal counsel; we safeguard all your assets and guide you to make the right decisions for your unique situation. We take the time to fully understand what’s important to you, and then together, we’ll craft a thoughtful and holistic plan so you and your family can avoid the stress, conflict, and chaos that comes with incomplete planning - including incomplete digital planning.

To learn more about how we approach estate planning from a place of heart and understanding, schedule a complimentary 15-minute call with our office.

Schedule a Consultation by Clicking Here

Will Christoferson 4/15/24 Will Christoferson 4/15/24

Why Estate Planning Is the Best Use of Your Tax Refund

When that extra bit of money from your tax refund lands in your bank account, (kind of feels like Christmas, doesn’t it?) it's easy to start dreaming about all the ways you can use it. Financial experts may tell you that it's a chance to pay off debts, tuck away savings for an emergency, or add to your retirement savings. You, on the other hand, may want to splurge on something special. However, there's an often-overlooked option that not only provides immediate satisfaction but ensures long-term benefits for both you and your loved ones: estate planning.

Estate planning might sound like a complex and daunting chore reserved for the wealthy, but it's actually a straightforward and crucial process for everyone. In its most basic terms, estate planning involves making a plan for what happens to your belongings and finances after you're gone, or if you become incapacitated. Think of it as creating a roadmap for your loved ones to follow, ensuring they're taken care of and know exactly how to handle your estate according to your wishes. After all, someone will have to do something with your stuff after you’re gone, and if you’re the one who takes care of it while you can, you can save your loved ones a lot of pain. And, make sure you are cared for in the way you want, by the people you want, if you become incapacitated.

And by the way, proper estate planning covers much more than just money and personal belongings, but we’ll delve into that in just a bit.

Why You Need an Estate Plan

Not only do you need a plan for what happens with your finances and personal items after you’re gone or become incapacitated, but you also need an estate plan if any of the following are true:

You care about the people in your life who will handle things for you, if you cannot. First and foremost, estate planning isn’t something you just do for yourself, it’s truly an investment you make for the people you love. If it feels daunting to you, imagine how they will feel left with a big confusing mess when something happens to you. And, it’s one of those things that you must get handled before you need it because by the time you need it, it’s too late, and you’ve just left the people you love the most with a big mess.

That’s why we say that estate planning is about protecting your family. It's about protecting their time, energy and attention, and leaving them with a gift of love. It’s a way of saying "I love you" that goes beyond words, providing them with security and guidance during a difficult time. By making your wishes clear, you can keep them out of court, prevent potential conflicts and ensure your loved ones are supported exactly as you intend.

You want your wishes to be honored. With an estate plan, you have the power to dictate exactly how you want to be cared for if you are incapacitated, or who makes decisions for you if you cannot. If you would not want to linger in a hospital bed for years like Terry Schiavo did before her death, you must create a plan. Otherwise, the people you love could get stuck in a court process fighting over your care.

You also get to say who inherits your assets, from your home and savings to sentimental items. Planning ensures there isn’t any confusion and guarantees that your possessions end up in the right hands. Planning also makes it clear who should handle things after you are gone, and it makes it as easy as possible for the people you choose.

You want to save money and time (for yourself and your family). Dealing with the court if you become incapacitated or when you die is time-consuming, can be expensive and is totally public. Without a clear plan in place, you or your family may face costly legal battles and time-consuming administrative hurdles. Your careful planning now can save them from this stress and financial strain, making the process as smooth as possible. In addition, careful planning ensures that you save yourself money by avoiding unnecessary costs if you are unable to care for yourself.

You have minor children. If you have minor children, consider who is home with them when you aren’t. Would that person know what to do if you didn’t make it home? Or would the authorities show up at your house and have to take your children into the care of protective custody/strangers while they figured it out? If the idea of this terrifies you like it does most parents, you need an estate plan.

Most parents of minor kids are overwhelmed with the demands of everyday life and don’t stop to think that estate planning applies to them. A common misconception is that planning is only for older folks who know their mortality is staring them in the face, and young parents think that’s too far off to warrant any consideration. That’s a mistake. Death happens to everyone and incapacity can happen before it, no matter how old you are right now. Don’t leave your kids at risk.

So now you know you need an estate plan but aren’t sure what to do next. If you feel like the process seems daunting, don’t worry. Taking that first step is easier than you might think.

Put Your Tax Refund To Work

You might consider using your tax refund to do your estate plan on your own or opt for a cheap online service. While these options can seem cost-effective at first glance, they don’t offer the comprehensive coverage and personalized advice that your unique situation requires.

Instead, investing your refund in working with a heart centered, holistic attorney with a process in place for ensuring that your plan works throughout your lifetime is a much wiser choice. We will get to know you, your family dynamics, and your assets, and then help you choose the right plan for you both now, and into the future. Creating a will or a trust isn’t a one and done thing you do, and then put it on a shelf or in a drawer and never look at it again. When you do that, your plan is almost guaranteed to fail when the people you love need it. In that case, it’s almost better to do nothing because then at least you have it on your to-do list. False security is one of the greatest risks of estate planning.

We will help you navigate the law, and also help you tailor your estate plan to fit your specific needs, as well as provide peace of mind knowing that your estate plan is thorough and legally sound. Remember, when it comes to safeguarding your family's future and ensuring your wishes are accurately reflected, the value of expert guidance is well worth the investment.

At the very least, your attorney should help you create the relevant documents, including:

Creating a Will: A will is a document in which you detail the distribution of your assets and designate guardians for any minor children. It serves as your voice, ensuring your assets are allocated as you desire.

Setting Up a Trust: For greater control over the distribution of your assets, a trust is invaluable. It not only allows for precise management of how and when your assets are distributed but can also offer tax advantages and circumvent the lengthy and public probate process. In addition, and maybe more importantly, a trust will help your loved ones avoid a lengthy, expensive, and totally public court process, which can cost your family significant amounts of time, energy and attention.

Selecting Guardians and Executors: A key component of estate planning is choosing individuals who will execute your wishes and look after your children if you are unable to do so. These crucial choices help safeguard your family's future. And if you want to go beyond merely choosing people to raise your kids, you need a thorough Kids Protection Plan, which takes into account anything that could happen (i.e., you’re in a car accident and they’re with a babysitter at home). A Kids Protection Plan also ensures your kids are raised by the people you want in the way you want, that someone you’d never want to raise your kids is able to, and that the right people are able to get emergency care for them if you’re traveling without them.

Managing Taxes and Expenses: Effective estate planning can significantly lessen the tax load on your beneficiaries, allowing a larger portion of your assets to benefit them directly instead of going towards tax settlements.

These are all undoubtedly important, and what most estate planning attorneys will do for you. However, a Personal Family Lawyer will go a few steps further, ensuring that investing your tax refund in an estate plan is the very best investment you’ll make all year. In fact, every Personal Family Lawyer promises to deliver a plan to clients that works throughout your lifetime. They do this by:

Empowering you to choose the right plan that fits your unique family situation, values, and budget (most lawyers will tell you what you need);
Ensuring your assets are inventoried and don’t end up lost (most lawyers won’t tell you that this happens - a lot - to the tune of billions of dollars every year);
Creating a Kids Protection Plan® , a comprehensive plan outside of your will for what happens to your kids if something happened to you (most lawyers don’t even think to do this);
Being a trusted advisor for your family, so they have someone to turn to for help when something happens to you (most lawyers don’t ever make contact with your family after you’ve completed your estate plan);
Capturing your memories, stories, values and family traditions so they are passed down to the next generations (most lawyers don’t think to do this either); and
A system for updating your plan at least every three years to make sure your plan stays up to date so as your life changes and the law changes, your plan works when you need it to (most lawyers treat their clients as a “one and done” transaction, never checking in again and letting your plan go stale).

What If I Didn’t Get a Refund This Year?

Now you may be thinking, bummer, I didn’t get a refund this year. Know these two things: 1) Estate planning is always a wise investment whether you get a refund or not; and 2) A Personal Family Lawyer, using a unique process called Life & Legacy Planning, can help you organize your finances so you are more likely to get a refund next year, or at least not have a big unexpected tax bill, if that’s what happened this year.. A Personal Family Lawyer will also help you get more financially organized than you’ve ever been before, so that you make the very best decisions about the allocation of your resources for yourself and the people you love.

Estate Planning: The Ultimate Expression of Love

Among all the ways to use your tax refund, estate planning with a Personal Family Lawyer ensures that your love and care for your family endure long after you're gone. It's an act of foresight that not only secures your family's financial future but also leaves a legacy.

As a Personal Family Lawyer Firm, we will work with you to create a complete plan that is worth more to your loved ones than your tax refund will cover. To learn more about our Life & Legacy Planning process, and how we approach estate planning from a place of heart, schedule a complimentary 15-minute call with our office today.

Schedule a Consultation by Clicking Here

Will Christoferson 4/8/24 Will Christoferson 4/8/24

Navigating the World of Cryptocurrency: A Guide for Parents and Teens

In an era where digital innovation shapes every aspect of our lives, it's no surprise that our teenagers are drawn to the allure of cryptocurrency. This digital form of money represents a shift away from traditional financial systems. If you are the parent of teens, understanding cryptocurrency is crucial so you can provide them with the guidance they need to navigate this new world safely and wisely. Luckily, I’m here to help you learn what you need to know. Let’s dive in.

What is Cryptocurrency, Exactly?

Cryptocurrency, which folks also call “crypto” is, in essence, virtual money that can be used to buy goods and services. It can also be traded for profit, much like stocks. However, unlike the dollars in your wallet, crypto exists only in the digital world. The crypto universe is vast, with thousands of digital currencies out there.

Crypto is based on blockchain technology, which ensures transactions are secure, transparent, and decentralized, so they're not controlled by any government or financial institution (there are pros and cons to this that we’ll describe below). Imagine blockchain as a digital Lego tower where each block represents a piece of information, and once a block is added to the tower, it can't be removed or altered, making it a super secure way to keep track of cryptocurrency transactions - kind of like a high-tech, unbreakable diary.

A critical component of understanding cryptocurrency is the concept of a crypto wallet. Unlike a physical wallet, a crypto wallet doesn't store currency; instead, it holds secure digital keys that allow access to cryptocurrencies. With me so far?

What Parents of Teens Need to Know

To the younger, digital-native generation, cryptocurrency is an exciting and innovative concept. They’re not afraid of technology and investing online. They’re aware of the potentially significant returns on investments, stories of cryptocurrency millionaires, and the prospect of being part of a cutting-edge financial movement. This is why crypto is very attractive to teens.

Parents should know that while there are no laws specifically prohibiting teens from owning or trading cryptocurrency, most platforms and exchanges require users to be 18 years old. For eager and younger investors, custodial accounts present a solution. These accounts allow parents to oversee their teen's investments, providing a controlled environment where teens can learn about digital currencies.

These accounts not only allow parents to monitor their teen's investment activities but also offer a hands-on educational experience in managing and understanding digital currencies. It's a balanced approach that combines the practical aspects of investing with the security of parental oversight.

Be Aware of the Risks

While learning how to invest in crypto can be a great learning activity for you and your teen, be aware of the risks involved. For one, the crypto market is highly volatile. Prices can surge or plummet within a short period, making investments speculative and risky. It's crucial to have open discussions with your teen about the importance of not investing more than they can afford to lose, and about the reality of the speculative nature of digital currency. Teach your teen the importance of research, diversification, and long-term thinking and you’ll help instill responsible investment habits that will last a lifetime (and make you proud!).

Most importantly, ensure that you know how to get into their cryptocurrency accounts, in case something happens. And, that someone knows how to get into your accounts as well. The biggest risk to your cryptocurrency investments is that you haven’t documented them such that someone could access your accounts, when something happens to you. Contact us and let us help!

Alternatives and Best Practices

For families that find direct investment in cryptocurrency too daunting, there are alternative ways to engage with the digital economy. Encouraging your teen to learn about blockchain technology or exploring investments in crypto-related stocks and ETFs can provide a safer introduction to the concepts without the direct risks associated with cryptocurrency trading.

However, if you’re ready to make a go at it, here are some best practices to keep in mind:

Foster a Culture of Learning. The rapid evolution of digital currencies makes continuous learning essential. Encourage your teen (and take the opportunity yourself) to stay informed about the latest developments by reading reputable news sources, listening to podcasts, and even speaking with a financial advisor.

Establish Guidelines. Before your teen makes any financial investment, it's important to establish clear guidelines. Discuss together how much time and money is reasonable to invest, the importance of privacy and security in digital transactions, and the expectations for responsible behavior. Setting these ground rules early on can lay a strong foundation for healthy financial habits.

Embrace the Future. Regardless of whether your teen decides to invest in cryptocurrency, understanding this new facet of the financial world is invaluable for you. The rise of digital currencies offers a unique opportunity for parents and teens to learn together about the future of money, technology, and personal finance. It's a chance to explore new concepts, discuss values and responsibilities, and prepare for a future where digital currencies may play a significant role.

Prepare Yourself and Your Teen With Our Guidance

Whatever the future holds, as a Personal Family Lawyer firm, we believe it’s important to educate your children about finances so you leave a legacy of fiscal responsibility when you’re gone. That’s why we help ensure that when you’re no longer here, your assets - including cryptocurrency - are passed on the way you want, easily, and without your family ending up in court and conflict. We do that by approaching estate planning as a relationship - a lifetime relationship with you as your and your family’s trusted advisor so you have someone to turn to in times of change and uncertainty, and in times of joy and excitement.

To learn more about how we can guide you and your family to secure the future you want, schedule a complimentary 15-minute call with our office.

Schedule a Consultation by Clicking Here

Will Christoferson 4/1/24 Will Christoferson 4/1/24

April Fools! How DIY Wills and Trusts Offer a False Sense of Security…and May Leave Your Family With an Expensive Mess

If you’ve been traveling around the sun for a while, you’ve no doubt heard of a Will, a document that says what happens to your money and belongings after you die. You may even have a Will, or know you should get one. And maybe you’ve heard of a Trust and wondered what it is and how it works. You may have even done research on Google about how to do your own Will or Trust.

In fact, it’s hard to poke around the internet and not find do-it-yourself (“DIY”) Wills and Trusts services. Legal Zoom, TrustandWill.com, and even media personalities Dave Ramsey and Suze Orman offer cheap DIY documents. Heck, you can even create your own Will or Trust for free by downloading a few forms. What these websites won’t do, however, is explain the potential consequences that can happen if you use one of their services.

Legal Documents Have Legal Consequences

The truth is that Trusts and Wills, and other documents that all adults should have in place, like a health care directive and power of attorney, are legal documents with legal consequences. They contain lots of legal language. Even if you think you understand the words, you likely don’t fully understand the nuances in the terminology. There’s a reason lawyers have to complete college, graduate from law school, then pass a bar exam before they can practice. It takes time and effort to learn the law, the legal terminology, the application of the law, and the potential consequences if something goes wrong.

Even then, many lawyers who don’t specialize in estate planning, or Wills and Trusts, and who don’t have training as a Personal Family Lawyer®, as we do, put in place legal documents that fail when you become incapacitated or die, for various reasons. And, yet, you may be getting sold on the idea that you can draft legal documents on your own, using an online website. The promise is you can save money, and completely protect yourself and your loved ones from expensive legal consequences of not having planning in place. Since it’s early April when this article is being published, we call “April Fools” on these services.

A Real Life Cautionary Tale

Let’s keep you from being fooled by illustrating what can happen when you draft legal documents on your own without understanding the consequences. What follows is a true story:

A woman passed away and her husband came into his lawyer’s office to get legal advice on what to do next. The woman we’ll call her “Jane”) received an inheritance from her first husband (let’s call him “John”). She was also close to her adult children and her grandchildren, and wanted to make sure they received what was left of her inheritance from their father. And while she intended to leave her second husband some money, she made it very clear to her family that she wanted to provide for her children and grandchildren.

Jane was frugal. She didn’t want to spend money on an attorney. So she did some research on Google about Wills and Trusts, downloaded some forms, and wrote out her own documents. She learned from Google that a Trust can keep her family from going through a court process called probate, which would save them money and leave more for them to inherit. So she drafted her own Trust thinking that she’d achieve her goals and save money at the same time.

You may already see where this is going…

When John’s lawyer read Jane’s DIY Trust, they realized that what Jane actually did was leave her entire inheritance to her second husband. Jane legally disinherited her children and grandchildren. Jane’s DIY Trust was also subject to laws of a different U.S. State than the one she lived in, meaning that any legal process related to the Trust would be more complicated than it needed to be. Surely this was not the result Jane wanted.

Jane not only disinherited her children, but she failed to transfer her house to the Trust, despite drafting and filing a deed on her own, and she left assets out of her Trust altogether. So while she thought she was doing the right thing, what she really did was leave her loved ones with a giant, expensive mess.

Not surprisingly, the family ended up in court and years later, the matter still isn’t resolved.

You Don’t Have to Make the Same Mistakes

Jane must have believed what she heard from well-meaning folks like Dave and Suze about doing a Will and Trust on her own. She probably thought she understood the legal documents she drafted and signed. She most definitely thought she was making things easy for her family and that she was giving her children money from their father. But Jane was fooled.

Don’t be Jane. If Jane had worked with a Personal Family Lawyer®, she would have created a plan that would accomplish her goals, and keep her family out of court and out of conflict. She would have saved her family years of heartache and pain, not to mention the expense. Jane’s story teaches us that it’s absolutely worth it to work with a lawyer whenever you’re dealing with a legal document - including a Will or Trust. Don’t “Trust” those (see what we did there?) who say you can do it cheaply or do it yourself. Don’t be Jane.

What to Do Instead

You owe it to your loved ones to take the time and put in the investment to do your estate planning right, and keep it up over time. In fact, it’s the last and greatest gift you can leave them. Having your affairs buttoned up so they don’t have a mess on their hands and are allowed to process their grief in peace is your final act of love.

If you want to leave your family the gift of your love, we can help. At our firm, we don't merely dispense legal counsel or draft documents; we safeguard your family. We look at your specific family dynamics and your goals and then work with you to create a plan that ensures you and your loved ones avoid the stress, conflict, and chaos that comes from DIY documents.

To learn more about how we approach estate planning from a place of heart so you can leave your family with love, schedule a complimentary 15-minute call with our office here:

Schedule a Consultation by Clicking Here

Will Christoferson 3/25/24 Will Christoferson 3/25/24

PARENTS, STEP-PARENTSAND CHILDREN, OH MY! BLENDED FAMILIES + DEATH = A POTENTIAL NIGHTMARE

PARENTS, STEP-PARENTS AND CHILDREN, OH MY! BLENDED FAMILIES + DEATH = A POTENTIAL NIGHTMARE

Anyone who’s seen an episode of “Modern Family” knows that families these days come in many different shapes and sizes. Long gone are the days when a “family” was defined as a mother, father and two children (or was it 2.5 children? Where does the .5 come from anyway?). In this article, we’ll focus on one of the types of families that’s common in our modern culture: the blended family.

The Unique Dynamics At Play in Blended Families

A “blended family” comes into being when parents divorce, and at least one remarries. While everyone may get along effortlessly while the parent is alive, that too-often doesn’t happen once the parent dies. Why? Because the law still hasn’t caught up to our modern definition of “family.” The law often favors the spouse, which works well when the spouse and the deceased have children together. But when the deceased parent has children from another marriage, the children can - indeed, often are - cut out of their inheritance.

Other than the law being slow to catch up, there are a few more reasons why this happens:

The parent trusts the new spouse completely and can’t comprehend the spouse ever doing anything to harm the children;
The new spouse may place his or her own interest ahead of the children - or have children from a first marriage and want them to benefit instead; or
The parent has not been educated about what could happen when he or she dies, and hasn’t consulted with a competent attorney to get educated.

A True (and Common) Story That Became a Nightmare

In a recent marketwatch.com article, a woman wrote about her own nightmare scenario. Her father (we’ll call him “Dad”) owned several properties, including the house she lived in as a child. He remarried, and when his health started to decline, her stepmother (we’ll call her “Stepmom”) made financial moves so he could qualify for government health care benefits under the Medicaid program. Whereas Medicaid is a needs-based program (meaning, you only qualify if you can’t afford to pay), many people with means are able to take advantage of legal maneuvers and set their assets aside so they qualify. Doing this keeps assets protected for the next generation(s).

So far, so good. It seems as if Stepmom has the children’s interests at heart, right? Not so fast.

In order to qualify for Medicaid, Dad had to transfer his assets to someone else while he was alive. That “someone else” was Stepmom. Apparently, she convinced Dad it was the right move and that she could be trusted with his properties. Dad eventually died, and so at the time of his death, Stepmom owned all his properties, including the childhood home. Stepmom went on a selling spree, cashing in on them all. And guess where the money went? If you guessed Stepmom and HER daughter, you’d be right. Dad’s children from his first marriage got nothing.

Wait - Surely That’s Not Legal!

You may be thinking that’s a horribly unfair outcome - so bad that it has to be illegal. But it’s not. It’s completely legal. Once Stepmom owned the properties, she was free to do anything she wanted with them. She chose - deliberately – to give her stepchildren none of the proceeds and under the law, she had the absolute right to do this. The children had no recourse. They’d lose in court every day of the week - and twice on Sundays.

And so we’re left to wonder: is this the outcome Dad wanted? Could he have foreseen Stepmom was capable of cutting out his children? And did he know there was another way he could have protected them and still qualified for government benefits? With education from a trusted lawyer, would he have done anything differently?

How to Ensure Your Children Are Spared From the Potential Consequences

If you want to avoid the same tragic consequences, there are some steps you can take right away:

1. Don’t Be Afraid of the Inevitable: Benjamin Franklin is quoted as saying, “Nothing is certain but death and taxes,” and he was half right (you can avoid taxes with careful estate planning but that’s a topic for another article). Death is certain. Yet we’re all uncomfortable talking about death, much less planning for it. Accept death as a reality then make plans while you can.

2. Hold a Family Meeting: Having a heart-to-heart about your wishes, values and goals can go a long way in preventing misunderstandings after you pass away.

3. Educate Yourself: Hands down the single most important thing you can do is educate yourself, and educate yourself now. Don’t rely on the internet. Laws are different from State to State, families are different, assets are handled in different ways, and the internet won’t take all this into account.

4. Work With a Lawyer Who Understands Your Family Dynamics: One size doesn't fit all when it comes to planning for life & death matters like these! What works for one family might not work for yours. You need a tailored plan to fit your unique needs. You deserve, and your family deserves, to have a plan that works when your family needs it. That’s why you need a trusted, heart-centered attorney who will appreciate your unique situation and educate you so you’re empowered to put the right plan in place. Your family’s future literally depends on it.

Your loved ones don’t have to face tragic circumstances when you pass. With honest conversations, proper education, and guidance from a trusted attorney, you can put together a plan that keeps the peace and makes sure your loved ones are taken care of just the way you want.

To learn more about how we approach estate planning from the heart and yet with all the strategies you need to keep your assets in the family, schedule a complimentary 15-minute call with our office.

Schedule a Consultation by Clicking Here

Will Christoferson 3/18/24 Will Christoferson 3/18/24

Till Death or Divorce: Why You Need to Plan Now for Your Relationship’s End

After the excitement of Valentine's Day fades away and the last indulgence of chocolate is savored, it's crucial to turn our attention to a topic that may not be as thrilling as the idea of everlasting love: the reality that all relationships come to an end one day. Before you stop reading, hear me out.

Whether it’s a breakup, divorce, or the death of a loved one after a lifetime together, every relationship eventually will come to an end. The most important thing is how you have planned for that ending, or whether you haven’t at all, as your planning (or lack of it) will have a real impact on you, your partner, your children, and your assets.

The silver lining? While we can't prevent the end, we can prepare for it with a blend of compassion and strategic planning that makes the end the best possible foundation for a new beginning.

Understanding the Intersection of Love and Law

Love is wonderful—joyful moments, shared dreams for the future, and yes, some legal considerations too. For married couples, the law has default provisions in place for what happens to your assets if one of you dies, but those default plans may not align with your personal preferences or the life you’ve built with your partner.

If you’re an unmarried couple, the absence of a plan could leave you vulnerable, risking the loss of assets or the inability to make crucial decisions about your property or your medical choices.

To better understand how a lack of planning can leave you and your partner out in the rain, let’s look closer at these important areas that are affected when a relationship ends.

1 | Property Ownership

Let's say you and your partner purchase a home and other assets together. Without clear documentation outlining ownership rights, a dispute can arise if the relationship ends in a breakup. But breakups aren’t the only danger.

If you aren’t married and one of you passes away, the other partner might find themselves without a rightful claim to the property, potentially facing homelessness or a significant financial loss.

If you own any property with anyone else or if you want to ensure your property lands in the hands you choose in the event of your death, contact us to plan for that property now.

2 | Healthcare Decisions

In the unfortunate event of a medical emergency where one partner becomes incapacitated, lacking appropriate legal documentation could impede the other partner's ability to make critical healthcare decisions on their behalf. This can lead to delays in medical treatment or disagreements among family members over the person’s treatment, causing unnecessary stress and complications during an already challenging time.

3 | Guardianship for Children

For couples with children, failing to establish guardianship arrangements in the event of both parents' incapacity or death can have devastating consequences. Without a designated guardian, children may be placed in the care of individuals who may not align with your wishes or values, leading to potential custody battles and emotional upheaval for the children and your extended family.

If you and your partner end your relationship without coming to a mutual agreement on a guardian for your children, things could get even more chaotic - especially if one of you has documented your desired guardian and the other partner hasn’t.

Worst of all, typical wills don’t cover planning for the needs of minor children sufficiently. It’s why we offer the Kids Protection Plan®, specifically designed to ensure your children are never raised by anyone other than people you know, love and trust, and are never taken from your home, into the care of strangers.

4 | Business Interests

If you and your partner share business interests or investments, the lack of a solid plan could jeopardize the future of these assets. Without clear instructions, the surviving partner may face challenges in managing or transferring ownership of these assets, potentially leading to financial instability or the dissolution of the business.

Be Proactive, No Matter What the Future Holds

In each of the scenarios above, the absence of proactive estate planning measures leaves individuals vulnerable to legal and financial uncertainties. By taking proactive steps that consider what will happen when your relationship ends, couples can safeguard their assets, ensure their wishes are honored, and provide peace of mind for themselves and their loved ones.

Not sure how to start the conversation with your partner?

Start by explaining to your partner your desire to safeguard the life you’re building together. Just as relationships evolve over time, your wishes and how they are documented should too. Continuously engaging in dialogue and revisiting your plans ensures they remain aligned with your evolving needs and aspirations.

Let Us Make It Easy to Plan Ahead

Whether you’ve already started the conversation with your partner or need more guidance, planning for the future of your relationship can feel overwhelming. We can help.

At our firm, we don't merely dispense legal counsel; we safeguard your love story. We comprehend the profound significance of your relationship and are dedicated to ensuring its protection. And whenever (and however) your relationship ends, we’ll work with you to create a plan that considers these contingencies ahead of time so you and your loved ones can avoid the stress, conflict, and chaos that comes with incomplete planning.

To learn more about how we approach estate planning from a place of heart, schedule a complimentary 15-minute call with our office.

Schedule a Consultation by Clicking Here

Will Christoferson 3/11/24 Will Christoferson 3/11/24

3 Estate Planning Documents Your Parents Need Right Now

Today, we're diving into a topic that is absolutely crucial: estate planning for your parents. As they gracefully navigate their golden years, ensuring their peace of mind (and yours!) becomes a top priority. Whether they raised you the way you want, or showed you how you want to do it differently, as your parents' age, one of the very best things you can do for your own best future, and that of your entire future lineage - your children, grandchildren, and beyond - is to take great care of the people you were born to or raised by.

The questions you need to start asking now are: How will you help them if they become ill or injured? Who will take care of their bills and make sure their health needs are met? How do they want to be cared for, if and when they cannot care for themselves?

The starting place is open conversation and a power trio of estate planning tools swoop in to save the day: the General Power of Attorney, the Power of Attorney for Healthcare (including a Living Will), and the HIPAA Waiver.

Now, let's break down why these tools are the unsung heroes of comprehensive estate planning for your parents, and how to bring them up so you can support your parents to get them created or updated, no matter how much or how little money they have in the bank.

1. General Power of Attorney (POA)

A General Power of Attorney (or POA) grants a person you name (often a family member or trusted friend) the authority to manage your financial affairs if you become unable to do so yourself. From handling bills to making investment decisions, the General POA ensures that your financial matters are handled, whether you’re experiencing a temporary illness or a long-term inability to manage your money, such as in the case of memory problems.

If your parents have assets that you must be able to access easily in the event of their incapacity, you may decide that a POA for accessing their accounts is not sufficient, as it can be difficult to get access to bank accounts even with a POA in place, and will require court action. In that case, the best course of action is to ensure that their assets are titled in the name of a trust, with you or someone you trust as the named successor Trustee, who can step in and handle financial matters for your parents, without any court involvement, when needed.

2. Power of Attorney for Healthcare and Living Will

It’s possible your parents already lean on you for guidance with their healthcare decisions, and it’s equally possible they don’t share details of their healthcare with you at all. No matter which side of the spectrum your parents stand on, the question of what will happen to their healthcare needs if they become seriously ill can feel overwhelming — and trust me, it’s even more overwhelming during moments of medical crisis.

Thankfully, a Power of Attorney for Healthcare and Living Will allow your parents to explain their medical wishes to guide medical providers and family members on what treatments and life-saving measures they’d like to have, even in the toughest of times.

The Power of Attorney for Healthcare designates someone to make these medical decisions on behalf of your parents if they're unable to do so. This trusted individual becomes the advocate, ensuring that healthcare choices align with your parents' values and preferences.

Meanwhile, the Living Will – also known as a Declaration to Physicians – outlines your parents' wishes regarding life-sustaining treatments in the event they're unable to communicate. From CPR to artificial hydration, this document provides clarity amidst uncertainty, giving both your parents and their loved ones peace of mind that the decisions being made around their care and what they themselves would want.

3. HIPAA Waiver

In the digital age, privacy is paramount – but what happens when privacy becomes a barrier to essential healthcare-related communication? Enter the HIPAA Waiver, the ultimate tool for opening communication roadblocks in times of need.

HIPAA (the Health Insurance Portability and Accountability Act) protects the privacy of individuals' medical records. While this is crucial for safeguarding sensitive medical information, it can sometimes hinder the flow of communication between healthcare providers and family members, especially for the elderly and those incapacitated by an illness or injury.

By signing a HIPAA Waiver, your parents authorize specific individuals to access their medical information and speak directly to their medical providers, ensuring seamless communication and informed decision-making. This is essential in medical emergencies but is also extremely helpful if your parents need help hearing their doctor or understanding their medical advice.

How to Bring Up Estate Planning With Your Parents

The best way to bring up estate planning with your parents is to get your own planning handled first. Then, let your parents know that in the process of handling your own planning, your lawyer raised the question of whether you were an agent under anyone else’s power of attorney, or named as a successor Trustee in your parents' Trust, or if you are going to be caring for aging parents at some point.

And, if you have worked with a lawyer and they didn’t ask you those questions, give us a call and let’s review your plan and your parents’ planning to make sure that everything you’ll need is dialed in. This can all get quite messy very quickly, and now is the time to talk with your parents.

Why the Urgency?

You might be thinking, "Why the rush? Can't we tackle this later?" Here's the scoop: Life is unpredictable, and procrastination can be a costly gamble. Waiting until a crisis strikes to get these tools in place can lead to a whirlwind of legal and emotional chaos, leaving your parents' wishes unfulfilled and their affairs in disarray.

By proactively planning ahead, you're not just checking items off a to-do list – you're investing in your parents' peace of mind and yours.

Don't wait for a storm to hit – schedule a 15-minute call today, by calling 855-221-8251 to learn how our unique Life & Legacy Planning process is designed with your family's well-being in mind, offering personalized guidance and support every step of the way.

Will Christoferson 3/4/24 Will Christoferson 3/4/24

14 Ways to Show Your Finances Some Love This Year - Part 2

Last week we explored 7 ways to show your finances and your family some love with smart, tax-advantaged financial tips for the new year:

Make a Qualified Charitable Distribution (QCD)
Front-load Your 401(k) Contributions
Set Up an IRA for a Child
Make Donations During Spring Cleaning
Give the Gift of Appreciated Stock Shares
Establish a 529 College Plan
Make a Roth Conversion

If you missed it, check out Part 1 HERE. This week, we’re continuing the financial love with 7 more tips you can use to benefit your family this month and the year ahead.

Let’s dive in.

8 | Spread The Love With The Annual Gift Exclusion

Don't underestimate the power of spreading love through financial generosity. Did you know you can gift up to $18,000 per person to an unlimited number of people each year? This allows you to share your wealth with family and friends in a tax-efficient manner. These gifts not only escape taxation but also foster stronger connections and deepen relationships with your loved ones. Whether it's helping with educational expenses, supporting a dream vacation, or simply offering a helping hand, annual exclusion gifts embody the spirit of giving and strengthen the bonds that matter most. With the sunset of the estate tax exemption set to occur in 2025, now is the time to make gifts if you have a taxable estate. Contact us to discuss options as there are far better ways to gift than outright.

9 | Use Up Your Lifetime Gift Tax Exemption

Use up your lifetime gift tax exemption: It's not just about securing your own financial future but also about ensuring your loved ones thrive. By leveraging your lifetime gift tax exemption, currently standing at $13.61 million per person, you can minimize estate taxes and provide a significant financial boost to your heirs during your lifetime. Whether it's funding education, helping with a down payment on a home, or simply offering financial support, using this exemption allows you to share your wealth and make a lasting impact on those you cherish most. The exemption is set to sunset in 2025, so if your estate is greater than $5M, now is the time to plan. Contact us asap as this planning does take time.

10 | Allocate More Funds To The Generation Skipping Tax Exemption

As you plan for the future, it's essential to consider the next generation. By allocating additional funds towards your generation-skipping transfer tax exemption (of up to $13M), you provide a seamless transfer of assets to your grandchildren or future beneficiaries. This strategic move not only minimizes tax implications but also lays the groundwork for preserving your family's wealth for generations to come.

11 | Make an Extra Mortgage Payment

Your home is more than just a place to live—it's also a valuable asset that can offer tax advantages. By making an extra mortgage payment on your primary home loan, you can increase your mortgage interest deductions on your tax return. Not only does this reduce your taxable income, but it also accelerates your path to homeownership, saving you money in the long run.

12 | Complete Repairs on Rental Property

Investing in your rental property not only enhances its value but also offers tax benefits. By completing repairs on your rental property, you can offset rental income on your tax return while providing a better living environment for your tenants. It's a win-win situation that improves your property's profitability and strengthens your relationship with your renters.

13 | Create a Lifetime Asset Protection Trust

Planning for the unexpected is an act of love towards your spouse and children, and when you know the right tools to use (like we do) you can make sure your family is provided for and protected for generations to come. One of my favorite ways to do this is using a Lifetime Asset Protection Trust. This tool allows you to protect the assets you leave for your children from any future financial trouble, like lawsuits, or divorces.

14 | Create Your Estate Plan

Finally, don't overlook the importance of estate planning in showing love to your family. By finalizing your Will, Revocable Trust, Power of Attorney, and Advance Medical Directive, you ensure that your wishes are carried out and your loved ones are protected in the event of incapacity or death. It's a vital step towards providing peace of mind for you and your family, allowing you to focus on enjoying life's precious moments together. And remember, a plan is more than a set of documents. It’s a lifetime of wise decisions about your life and legacy.

Show Your Love Where It Matters Most

The month of love might be over, but it’s never too late to make loving financial and planning decisions for your loved ones - and yourself!

As your Personal Family Lawyer® firm, we know the value of planning for the future. But we also know the value of planning for the life you want today and the legacy that extends far beyond your assets.

Schedule a complimentary 15-minute call to learn how we can help you create a Life & Legacy Plan that will take care of everyone and everything you love by calling 855-221-8251.

Will Christoferson 2/26/24 Will Christoferson 2/26/24

14 Ways to Show Your Finances Some Love This Year - Part 1

Ah, February – the month of love, where hearts flutter and chocolates abound (single people, stay with me here). But amidst the romantic whirlwind, there's a different kind of love that deserves our attention: the love we show ourselves and our family through thoughtful financial planning.

Now I know what you’re thinking – that doesn’t sound as fun or showy as a fancy night out or a bouquet of flowers (or a night in with Netflix). But trust me, making smart planning decisions with your assets is one of the best gifts you can give – and a gift that keeps giving over time.

This week, we explore seven tax planning tips that not only secure your financial future but also spread love and prosperity to those you cherish most.

1 | Make a Qualified Charitable Distribution (QCD)

Want to spread love to a charity you're passionate about? Is your retirement account looking good? Consider making a Qualified Charitable Distribution from your account directly to charity. Not only does this fulfill your required minimum distributions, but it also exempts the amount from your taxable income. By giving back to causes close to your heart, you can make a meaningful impact while reducing your tax burden.

2 | Front-load your 401(k) contributions

Show love to your future self by maximizing your 401(k) contributions early in the year as opposed to spreading them out evenly over 12 months. By reaching the 2024 limits of $23,000 sooner, your investments will have more time to grow, potentially enhancing your retirement nest egg even more. It's a proactive step toward securing financial stability for yourself and your family down the road.

3 | Set Up an IRA for a Child

Want to inspire financial skills in your kids while getting a tax advantage? Teach the next generation the value of financial planning and responsibility by setting up and contributing to an IRA for a child with earned income. Whether it's from babysitting or odd jobs, every dollar invested grows tax-free, providing a solid foundation for their future financial well-being.

4 | Make Donations During Spring Cleaning

Ah, the annual ritual of spring cleaning. This year, let's infuse this mundane task with a dose of love and generosity. As you sift through your belongings, consider the items that no longer serve you but could bring joy to others. From gently used household furnishings to clothing and books, each item holds the potential to make a difference in someone's life.

Here's the cherry on top: for items in good condition, you may claim a charitable deduction on your 2024 income tax return, making your act of kindness even sweeter. So, as you purge the old and welcome the new, keep receipts of your donations – it may add up to some real tax savings.

5 | Give the Gift of Appreciated Stock Shares

Strengthen familial bonds while supporting charitable causes by giving appreciated securities and stock shares directly to your sibling's favorite charity. By donating your appreciated stock instead of selling it, you can potentially avoid recognizing the gain as your income, maximizing the impact of your charitable giving while minimizing your tax liability. Sweet deal, right?

6 | Establish a 529 College Plan

Invest in the educational future of your loved ones by setting up a 529 plan. While the contributions you make to a 529 account aren’t tax deductible, contributions to these plans grow tax-free and can be withdrawn tax-free when used by your loved one for qualified education expenses like housing, books, tuition, and more. Whether it's for your child, grandchild, niece, nephew, or another family member, a 529 plan is a gift that keeps on giving.

7 | Roth Conversion

Show love to your retirement savings by considering a Roth conversion on a traditional IRA. If your traditional IRA has declined in value, now is the ideal time to convert it to a tax-saving Roth. Doing so can reduce your income tax liability later on and let you potentially enjoy tax-free withdrawals in retirement. It's a strategic move that can optimize your retirement income while minimizing tax obligations.

Let Us Help You Show Your Finances Some Love

February offers a perfect opportunity to demonstrate love not only through romantic gestures but also through practical Life & Legacy Planning®. By incorporating these tax planning tips into your overall planning strategy, you can secure a brighter future for yourself and your loved ones while making a positive impact on your community.

Not sure where to start? We’re here to guide you through every step of your planning journey, from taking inventory of what you have and what’s important to you, to the practical steps of how to plan for the life and legacy you dream of.

Schedule a complimentary 15-minute call with our office by calling 855-221-8251.

Will Christoferson 2/19/24 Will Christoferson 2/19/24

Think Your Kids Will Automatically Be Cared For In the Way You Want? They Might Not Be Unless You Do This

As parents, we're hardwired to prioritize our children's well-being above all else. We work tirelessly to provide for them, nurture them, and ensure they have every opportunity to thrive. Yet, amidst the hustle and bustle of daily life, it's easy to overlook a crucial aspect of their future: what happens to them if we're no longer here to care for them?

It's a sobering thought, but one that deserves your attention. You may assume that in the event of your untimely passing, your children will automatically be cared for and inherit your assets. However, the reality is far more complex and potentially unsettling.

Let's unpack why relying on these assumptions could leave your children's future in uncertain hands.

The Myth of Automatic Care

Yes, it's true that your children will inherit your assets upon your passing. However, without advance planning, the management of those assets will fall into the hands of a court-appointed trustee. This is an expensive proposition for the people you love most, and worse, the trustee may not necessarily align with your values or financial philosophy, leaving your hard-earned assets vulnerable to mismanagement.

On top of that, and maybe worst of all, under current laws, once your child reaches the age of 18, they gain unfettered access to their inheritance. While you may have envisioned these assets providing a foundation for their future endeavors, the reality is that many 18-year-olds lack the financial maturity to handle such responsibility. From impulsive spending to falling prey to financial scams, the risks are significant.

The Importance of a Kids Protection Plan®

So, what's the solution? Enter the Kids Protection Plan—a comprehensive legal planning system designed to safeguard your children's well-being and financial future in the event of your incapacity or passing.

A Kids Protection Plan empowers you to designate a trusted guardian who will step in to care for your children if you're unable to do so. This ensures your children will be in the loving care of someone you know and trust, rather than leaving their fate to the discretion of a judge who may lack intimate knowledge of your family dynamics.

Moreover, a complete Kids Protection Plan goes beyond long-term guardianship appointments. It includes a detailed roadmap for the management of your assets on behalf of your children, specifying how funds should be allocated for their upbringing, education, and other needs. By setting clear guidelines, you mitigate the risk of financial mismanagement and ensure that your children's inheritance serves its intended purpose: supporting their growth and development.

Leave Behind Detailed Instructions

Naming legal guardians is just the first step. Your Kids Protection Plan won’t do much good if the people named in it aren’t aware of your plan or your wishes. You want to make sure your children’s guardians know your desires for their upbringing. Some things to include might be:

Faith and religious practices
Philosophy on education and where you’d want them to go to school
Activities you’d want your children involved in
Nutrition, medical care, or any other health considerations

One of the benefits of working with a Personal Family Lawyer is that I make sure that everyone named in your plan is informed of what to do if the unthinkable happens to you. And, if you are working with me, I’ll be there to guide them each step of the way.

Planning for the Future

At BC Counselors at Law, PLLC, we understand the gravity of planning for your children's future. That's why we offer personalized Life & Legacy Planning® Sessions designed to consider your family dynamics, and your assets, and then help you choose the right planning package and fees to safeguard and protect what matters to you most.

Whether you're a new parent or revisiting your estate plan, our team is here to provide the guidance and expertise you need to secure your family's future for generations to come. Schedule a complimentary 15-minute call to learn more about our unique Life & Legacy Planning process. During your complimentary 15-minute call, we'll explore your current arrangements and identify any gaps that may leave your children vulnerable.

Don't leave your children's future to chance. Take the first step toward peace of mind and lasting security. After all, your children deserve nothing less than the assurance that they'll be cared for and cherished, no matter what the future holds.

Schedule a complimentary 15-minute call by contacting us at 855-221-8251.

Will Christoferson 2/12/24 Will Christoferson 2/12/24

This New Law Makes It Easier to Save for Retirement and Pay Off School Loans At The Same Time

Navigating your financial journey with the heavy burden of student loan debt on your back can feel overwhelming. You're faced with a critical decision: should you prioritize paying down those loans, or should you focus on the future, contributing to your workplace retirement plan? It's a tough call, especially when choosing loan payments means missing out on the opportunity to grow your savings through employer retirement matches.

But there's good news on the horizon, thanks to the SECURE 2.0 Act. This groundbreaking legislation is here to offer a helping hand, allowing your student loan payments to qualify for employer retirement matching contributions. It's a win-win, enabling you to tackle your debt while also building your nest egg.

Are you wondering if this financial boost applies to you? Keep reading, because we're about to explore how the SECURE 2.0 Act could be the solution you've been searching for.

What The SECURE 2.0 Act Means for The Student Loan Dilemma

For many of us, juggling student loan debt is a bit like trying to balance a coffee cup on a stack of books—tricky and maybe a bit messy, especially when we're also trying to save for retirement. Those monthly loan payments can take a big bite out of our budgets, making it hard to stash away cash for our future selves. And when we skip on contributing to our retirement plans, it's like missing out on the whipped cream in our favorite latte—those employer retirement matches that could seriously boost our savings.

Enter the SECURE 2.0 Act, ready to smooth out this balancing act. This new legislation suggests to employers a clever workaround: treating your student loan payments as if they were direct deposits into your retirement savings account.

This shift is subtly brilliant. It means the money you're dedicating to student loans can now help you unlock those employer retirement contributions, offering a streamlined path to beef up your retirement savings. It's a bit like finding a shortcut on your daily commute that makes life just a little easier and a lot more rewarding. So, let's explore how this can help secure your financial future.

How It Works

The SECURE 2.0 Act is like a breath of fresh air for employees weighed down by student loan payments. It gives employers the green light to get creative with retirement benefits, turning those hefty student loan payments into a force for good in your retirement savings plan. By treating these payments as if they were contributions to your retirement account, employers can now match them, just like they would with traditional retirement contributions. Imagine that—your student loan payments not only help you chip away at your debt but also build your nest egg, without you having to put extra money into your retirement account.

This twist means you can keep focusing on paying down your student loans without missing out on the magic of compounding interest in your employer-sponsored retirement account. It's a game-changer for anyone who's felt stuck between a rock and a hard place, trying to decide between paying off debt and saving for the future.

However, there's a catch... Not every employer will automatically jump on this bandwagon. The SECURE 2.0 Act opens the door, but it's up to individual companies to walk through it. This means the availability of this perk will vary from one employer to the next.

So, what's your next move? Start a conversation with your employer to see if they're planning to offer this innovative benefit starting in 2024. It's an opportunity too good to miss for anyone looking to make their student loan payments do double duty.

Helping You Navigate Towards Financial Wellness

If you’re one of the many people grappling with student loan debt, the SECURE 2.0 Act offers a ray of hope. Now, individuals can navigate the intricate landscape of student loan relief without sacrificing their long-term retirement goals. As employers have the option to align student loan payments with retirement savings, employees can effectively manage their finances and work towards a more stable financial future.

No longer bound by the dilemma of choosing between student loan payments and retirement contributions, individuals who qualify for the benefit can strategically plan their finances for a brighter future.

Want to take control of your financial future and that of the ones you love most? Then I invite you to meet with us for a Life & Legacy Planning Session.™ During the Session, we look at everything you own and everyone you love to determine whether your assets and your loved ones will be cared for exactly as you want if you die or become incapacitated. And if the way things are currently set up doesn’t serve you, your assets, or your family exactly as you want, we can help you develop a Life & Legacy Plan that will protect everything you love for generations to come.

Schedule a complimentary 15-minute call by calling us at 855-221-8251.

Will Christoferson 2/5/24 Will Christoferson 2/5/24

Want to Show Your Partner How Much You Love Them? Put Them In Your Will

Love is undoubtedly the most profound and cherished thread that weaves us all together, and there are many different ways to express our love to the people who mean the most to us. Often when we think of showing our love, we think of bouquets of flowers, surprise gifts, and meaningful notes. But an often overlooked – and incredibly meaningful – way of showing your love is to put that love into a plan for the future.

While estate planning may seem like a realm of financial jargon and legalities, it is, at its core, a tangible expression of your care for those closest to you. (And that’s why I refer to estate planning as Life & Legacy Planning.)

In this blog, we'll look at why adding your partner to your Will and estate plan as a whole isn’t just a romantic gesture but the ultimate act of love.

Providing Care and Protection

Estate planning is typically associated with financial matters and legal technicalities, but at its core, it's an expression of love for those we hold dear. It's about not leaving a mess for the people you love. It’s about providing comfort and security to your loved ones long after you’re gone. And, when you include your partner in your estate plan, you are solidifying the foundation of your love and commitment, ensuring they are cared for when you can no longer be there in person.

One of the most tangible ways to demonstrate your love is by securing your partner's legal and financial future through thoughtful estate planning, but not just any old estate planning -- in our book, it needs to be “Life & Legacy Planning” so you know you have a “plan that works to keep your family out of court and out of conflict”.

While a Will, Trust, and other estate planning documents are valuable, if they are not properly counseled, regularly updated, and combined with additional planning tools such as a Kids Protection Plan®, if you have minor children, and a Family Wealth Inventory plus Legacy Interviews to capture your tangible and non-tangible assets, your loved ones could be left with an expensive mess.

If you are married, your spouse already has some rights in the event of your incapacity or death, but that does not mean they have automatic access to your accounts, or even to make your health care decisions for you the way you would want. If you are not married, your unmarried partner or partners would have no rights to anything in the event of your death or incapacity. Truly the greatest gift you can give your beloved is a Life & Legacy Plan.

Avoiding Legal Complications

Love conquers many things, but we have to acknowledge that legal matters often require a bit more than just sentiment. Without a well-counseled, prepared and updated Life & Legacy Plan, your partner might find themselves entangled in legal complications when it comes to inheriting assets if something happens to you. In fact, if you and your partner aren’t married, they won’t inherit anything at all!

That’s because the law that controls what happens to your assets if you die without a plan is written with married couples in mind. That means that anyone you love who isn’t married to you or directly related to you through blood will be left with nothing when you die or if you become incapacitated, unless you plan in advance.

By including your partner in your Will and overall Life & Legacy Plan, you get to ensure they’ll receive what you would want them to in the event of your loss and spare them the stress of navigating legal intricacies during an already emotionally trying time.

Protecting The Life You Built Together

Maybe the institution of marriage isn’t your thing or you and your partner are putting off marriage plans for the time being. Nonetheless, having a plan in place isn’t something you want to put off until you’re older. Chances are good that you’ve already begun to build a life together that’s worth protecting.

Whether it's the charming house you turned into a home or the vintage car you spent countless road trips in, shared assets are more than just possessions – they're a part of your shared history. Including your partner in your estate plan ensures that these shared treasures are passed on smoothly, preserving the memories you built together.

And if you have children with your partner, Life & Legacy Planning takes on an even greater significance. If your partner isn’t biologically related to your children and hasn’t legally adopted them, there is no legal guarantee that your partner would be able to care for your children or even visit them if something happens to you.

Creating a Kids Protection Plan® or your kids in your estate plan is an act of profound love and responsibility. By ensuring your partner has legal authority in matters of your children's well-being, you're displaying a commitment to everyone’s future happiness and security.

Helping You Show The One You Love Just How Much You Care

Love binds us together – but proper estate planning, and specifically Life & Legacy Planning® puts the love you have for your partner and your family into action. It's not just about assets and legalities; it's a declaration of your commitment and a promise to provide for your loved one even when you're no longer physically present.

After all, in matters of the heart, there's no gesture more profound than securing a future together.

If you want to show your partner just how much you love them, contact us today to learn more about our Life & Legacy Planning® process to get started.

Schedule a complimentary 15-minute call by contacting us at 855-221-8251.

Will Christoferson 1/29/24 Will Christoferson 1/29/24

2 Conversations About Money and Death You Need to Have With Your Parents Right Now

If you’ve given any thought about estate planning, you probably associate it with preparing for death. But did you know that there are critical reasons (and significant benefits) for planning while you’re still well and alive? That’s why I refer to my services as Life & Legacy Planning. When done right, planning for your assets and your death is something that should start right now through honest, open conversations with your family.

It starts by talking with your parents, siblings, and children about what you want the future of your family to look like, how you’d like assets managed, and what type of care each family member would want in the event of a debilitating or terminal illness.

You may have already started a conversation about estate planning with your family. But this week, I dive deeper into the conversations you need to have right now to truly understand your family’s financial picture and plan for the future in the best way.

Keep reading to learn the two conversations about money and death you need to have right now.

Conversation #1: What Exactly Do Your Parents Own?

Initiating the first conversation involves posing fundamental questions to your parents and the older members of your family: "What do we have? Where is it? And, how would I access it if you weren't here to guide me?"

The potential risk to your family's wealth is intricately tied to the costs incurred in the event of a passing. Beyond the visible expenses of funerals, burial, or cremation, and end-of-life medical care, there exists a myriad of unseen costs.

Unclaimed assets, amounting to approximately $70 billion in various departments across the U.S., often slip through the cracks because family members don’t know where the assets are, how to get them, or that they even exist.

Because of this, tracking and documenting assets, including crypto assets, before incapacity or death is essential to protecting your family’s wealth when someone dies or becomes incapacitated.

It may be difficult to bring up this topic with your parents or other family members, but how you approach it with them will make all the difference. The secrecy of asset locations or the fear of appearing greedy may hinder an open discussion between family members, but this can be overcome by building trust between relatives and entire generations.

For the junior generation, building trust involves understanding the root causes of distrust and stepping into a mature, caring perspective for the greater family good. Similarly, senior generations can nurture trust by taking ownership of past parenting shortcomings and demonstrating faith in the individuals their children have become – after all, if you raised your children with a sense of financial and personal responsibility, you should be able to trust them!

Navigating these challenges may be daunting, but the rewards of building trust and initiating this crucial conversation are immeasurable. Use the conversation as an opportunity to record the locations and access permissions of family assets. If you aren’t sure how to do this, we can help you create a clear inventory of your assets so nothing is lost when death or illness strike.

Conversation #2: What Are Their Wishes for Long-Term Care?

The next conversation you need to have with your parents is about long-term care planning. This conversation extends beyond financial considerations and looks into the emotional intricacies of care, posing questions about who will provide care if your parents become incapacitated or disabled, how it will be administered, and the potential burdens on loved ones.

While money can be a less vulnerable entry point to this conversation, the core involves the tender question of personal care. Addressing concerns such as, "Who will take care of me? How will I be cared for? Will I be a burden on my loved ones?" brings a level of vulnerability that goes beyond financial considerations.

Neglecting this conversation can leave crucial decision-making up to the medical system, often resulting in undesirable outcomes and accumulating costs. By engaging in the long-term care conversation, clarity emerges on preferences, funding, and avenues for protection against unforeseen care costs.

Let Us Guide The Conversation

If initiating these conversations feels challenging or uncomfortable, we can help. As your Personal Family Lawyer® firm, we focus on building personal relationships with our clients and their families, and can help guide you and your family through difficult discussions and tough questions about your family’s assets and wishes.

It starts with a Life & Legacy Planning Session™, where we look at everything you own and everyone you love to identify gaps in your family’s security and make a plan that ensures everything will be cared for the way you want when you die or if you become incapacitated.

To learn more, schedule a complimentary 15-minute discovery call with us by calling 855-221-8251.

Will Christoferson 1/22/24 Will Christoferson 1/22/24

Protecting Your Family's Safety Net: How to Set Up Your Life Insurance Policy The Right Way

A comprehensive Life & Legacy Plan is about creating a strategy that lets you enjoy your life to the fullest while protecting your loved ones' future when you can no longer be there. It might seem like life insurance is an easy way to help secure your loved ones’ future – and it is – but your policy must be set up in the right way to have the best possible impact on your family.

The way you set up your beneficiary designations on your insurance policy can significantly impact its effectiveness, how it’s used, and who controls it after you die. In this blog, we'll explore how not to name beneficiaries on your life insurance and how to name beneficiaries to ensure your loved ones have the funds they need to thrive when something happens to you.

DO NOT Name a Minor As The Beneficiary of Your Life Insurance Policy

Naming your child or grandchild as a direct (or even backup) beneficiary of your life insurance policy may seem like a natural choice, but if you do that you’re guaranteeing a bad outcome for the people you love.

First of all, if a minor child is the beneficiary of a life insurance policy, it guarantees a court process called “guardianship” or “conservatorship” must occur to name a legal guardian or conservator to manage the assets for your minor beneficiary until they turn 18. Then, at 18, your minor child who is just barely an adult receives everything left in the account, outright, unprotected, with no oversight or guidance. This is the worst possible outcome for everyone involved.

If you are buying life insurance, you are doing it to make the life of your loved one’s better. We often say “insurance says I love you.” But naming a minor child as a beneficiary doesn’t say I love you; it says that you didn’t take the time to set your life insurance up the right way. You might think the answer is to name a trusted family member or friend as the beneficiary of your life insurance, hoping they’ll use the funds for your kids, but don’t do that!

If you name another adult as the beneficiary for a life insurance policy intended for your kids, your kids will have no legal right to the money – which means the adult you named as beneficiary can use the money however they want and don’t have to use it for your kids at all!

So what’s the solution? Keep reading until the end to find out what to do instead.

DO NOT Name Adult Beneficiaries Directly or They Risk Losing The Money Entirely

Direct payouts to adult beneficiaries may seem straightforward, but can have unintended consequences. Life circumstances change, and the lump sum received from a life insurance policy might be at risk if not managed properly. By avoiding direct payouts, you can ensure that the financial security provided by the insurance is preserved for the long term.

One key concern is the potential for beneficiaries to hastily misuse or exhaust the funds. A sudden windfall might lead to imprudent spending, leaving your loved ones without the financial support you intended. Additionally, if your beneficiaries are not financially savvy, they may struggle to manage a lump sum effectively, meaning the policy might lose money over time.

Even if an adult beneficiary is financially responsible and savvy – or knows enough to speak to a financial advisor – life events can put the funds at risk. Because the life insurance proceeds now belong entirely to your beneficiaries in this case, the proceeds of the policy are now completely vulnerable to any future divorces or lawsuits that your beneficiary may go through in the future.

That means that if your beneficiary is divorced, sued, or accumulates debt, all the money they received from your insurance policy could be lost.

Plan For Your Life Insurance The Right Way: Use a Trust

A Trust is an agreement you make with a person or an institution you choose. This person is called your Trustee, and their directive is to manage the assets you put into or leave to your Trust, according to the rules you create.

Instead of naming minors or adult loved ones as the direct beneficiaries of your life insurance, name your Trust as the beneficiary of your policy instead. By doing this, your loved ones will still receive the funds you intend for them while maintaining control over how the funds are managed and distributed. This ensures that your wishes for your assets and your loved ones are carried out even after you're gone.

How does it work?

A well-drafted Trust allows you to specify conditions for distributing the Trust funds, ensuring that the funds are used for intended purposes such as your beneficiaries’ education, homeownership, or other specific needs. Distributions from the Trust can also depend on the ages and circumstances of each beneficiary. This level of control can prevent the misuse of funds and promote responsible financial behavior for everyone involved. Plus, assets held in a Trust bypass the probate process, ensuring a more efficient and timely distribution of funds to your beneficiaries. This can be crucial in providing immediate financial support to your loved ones when they need it the most.

And while you can choose to have your Trustee distribute life insurance proceeds directly out to your beneficiaries outright, at specific ages and stages, you may want to provide even more protection for your beneficiaries. One of the considerations we’ll help you make is whether to retain the assets in trust, giving your beneficiaries control over the Trust assets, but in a manner that keeps the inherited life insurance protected from lawsuits, future divorces, and creditors.

Let Us Set Up Your Entire Plan In The Best Way Possible

Setting up your life insurance policy with the right beneficiaries involves careful consideration of your unique family dynamics, financial goals, and long-term objectives while being proactive to avoid future issues. By doing so, you maximize the benefits of your life insurance to provide a lasting legacy of financial security and support for your loved ones.

But planning for your life insurance is only one step in creating a plan for everything you own and everyone you love today and in the future. As your Personal Family Lawyer, my mission is to guide you to create a comprehensive estate plan, which I call a Life & Legacy Plan, that ensures your wishes are fulfilled and your family's future is protected no matter what the future holds.

Schedule a complimentary call with my office to learn more. You can do this by contacting us at 855-221-8251.

Will Christoferson 1/16/24 Will Christoferson 1/16/24

This Change to The FAFSA Rules Could Help Your Grandkids Qualify for More Student Aid

Want to contribute to your grandchild’s future college education? The FAFSA Simplification Act, which went into effect last month, now makes it possible for grandparents to do even more to help finance their grandchild’s education.

In the past, any contributions or distributions from a grandparent's 529 college savings plan were subject to FAFSA reporting, potentially impacting the student beneficiary's eligibility for federal financial aid. The new changes, however, bring a breath of fresh air.

In this blog, you’ll learn what has changed under the new rule and how grandparents can leverage it to support their grandchild's educational pursuits.

Understanding the 529 Account

First things first – what exactly is a 529 college savings account? It's a special savings account designed to help individuals, including grandparents, set aside money for future college expenses. Contributions aren't federally tax-deductible, but the good news is that earnings within the account grow tax-free. When funds are withdrawn for qualified education expenses, they remain untaxed.

What The New Rule Changes

When the account owner is a dependent student or custodial parent, the total value of the 529 plan is reported as an investment asset on the Free Application for Federal Student Aid (FAFSA). Previously, if a grandparent owned the 529 plan, any distributions were considered untaxed income for the student, potentially affecting financial aid eligibility. The upcoming change eliminates this concern.

In a nutshell, a 529 plan owned by a grandparent will no longer require reporting on the FAFSA. Even more impactful is that distributions from this grandparent-owned 529 plan will not be deemed as untaxed income for the student. This opens up opportunities for grandparents to contribute to their grandchild's education without jeopardizing financial aid eligibility.

Maximizing Grandparent Contributions

It’s important to keep the following in mind when you make contributions to a 529 account for a grandchild:

1 | Funds Must Be Used For Qualified Educational Expenses

Grandparents can use 529 plan funds for a range of qualified educational expenses, including tuition, room and board, books, supplies, laptops, and internet access. However, certain expenses like insurance, student health fees, transportation, and extracurriculars are not covered and may incur a ten percent penalty if 529 plan funds are used toward these expenses.

2 | The Annual Gift Exclusion

While grandparents can contribute to their grandchild's 529 plan, it's essential to be mindful of the federal annual gift exclusion, which is the amount of money a person can gift to someone else without needing to file a gift tax return. The limit currently stands at $18,000 for an individual and $36,000 for those filing jointly with a spouse. A special rule allows gift givers to spread larger one-time gifts across five years to stay within their lifetime gift exclusion.

3 | Reconsider Payments Made Directly to The School

Distributions directly paid to the school from grandparent-owned 529 accounts will not affect aid eligibility. However, for now, it's recommended to pay the grandchild directly.

4 | Timing Matters

When withdrawing funds from the 529 plan, it's crucial to do so within the same tax year as the educational expenses. This strategic move ensures smooth financial transactions and adherence to tax regulations.

5 | Watch Your Withdrawal Limits

The amount withdrawn from all 529 plans should be no more than the total cost of the qualified educational expenses billed by the school. Excess withdrawals may incur a 10 percent penalty, but there's a 60-day window to rectify the situation without penalties.

Helping You Plan For Your Family’s Future In The Most Loving Way Possible

It's a heartwarming prospect to be able to help shape a brighter future for the younger generation. By understanding the new FAFSA rule and strategically utilizing 529 plans, you can contribute meaningfully to your grandchild’s education without compromising financial aid opportunities. This makes a 529 account an even better investment tool that not only helps your grandchild afford their education but leaves behind a legacy of love and wisdom.

At our firm, we believe this is what estate planning is all about – your Life & Legacy. That’s why we refer to estate planning as Life & Legacy Planning. It isn’t just about making a plan for what happens to your assets when you die – it’s about making meaningful, heart-centered decisions that provide peace, love, and guidance to the ones you love today and for years to come in the future.

If you’re ready to create a plan that takes care of everything you own and everyone you love in the most loving way possible, give us a call to learn what a Life & Legacy Planning Session can do for you.

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Your Most Important New Year's Resolution: A Kids Protection Plan

As we welcome the New Year, filled with hope and resolutions for a brighter future, if you have minor children or grandchildren, put this commitment at the top of your list– a Kids Protection Plan ®.

Even if you have already named legal guardians for your children (or your siblings have done it for their kids, or your kids have done it for your grandchildren), most people…even lawyers!…make 1 of 6 common mistakes when naming legal guardians. And, if you (or your siblings or your children) haven’t named legal guardians for minors you care about, make it your New Year’s resolution is to take care of the littles in your life before the end of this month.

It can be hard to think about a future where you couldn’t be there for the people you care about the most, but having a plan in place will ensure the little ones you love stay in the care of the people they know and trust in the event you become incapacitated or die. If you do not take action, the decisions about their care could be left up to chance, or to whichever judge is overseeing the family court at the time something happens.

This is not just some task to add to your to-do list; it's a warm embrace of security for the littles you love. So, why is this the ultimate resolution for you in 2024? Keep reading to find out.

Unforeseen Circumstances Can Leave Your Kids In the Care of Strangers (or Worse)

What could be worse than your kids being left in the care of strangers if something happens to you? Your kids being left in the care of that one person you know you’d never want making decisions about their education, healthcare, or financial life. If you don’t have a person like that in your life, lucky you!

And, you still want to choose who makes the most important decisions for your kids, if you can’t, right?

Imagine your kids at home with a babysitter, and you don’t make it home. Your babysitter waits, and frets, but doesn’t know what to do.

S/he has no choice but to call the authorities because you didn’t leave any instructions otherwise. The authorities arrive and they have no choice but to take your kids into the care of strangers, even if you’ve already named legal guardians in your Will.

They probably don’t know where your Will is located. And, if they can find it quickly, they may not know how to get in touch with the people you’ve named. Or, the people you’ve named all live hours or even days away.

Finally, because your Will must go through the court process to be operative, the authorities can put your kids in the care of people who may be strangers to your kids - or even someone you wouldn’t want - while they wait for the Court process to play out.

But, not to worry, we do have a solution! It’s called a Kids Protection Plan®, and it will solve each of these problems plus ensure your children are never in the care of anyone you wouldn’t want.

A Kids Protection Plan® Lets You Pick Who Cares for Your Kids - Not a Judge

Is there someone in your life whom you unequivocally would never want raising your kids? Even if you’ve already named Permanent Legal Guardians for them, it’s still up to a judge to make the official determination of who should raise your children long-term. If this person is an immediate family member, the judge may choose them as your kids’ Permanent legal guardian if they come forward as a candidate, despite what your permanent guardian nomination paperwork says. Crazy, I know! But it’s how the system works.

A comprehensive Kids Protection Plan® confidentially excludes anyone you would never want raising your kids and we’ve figured out how to create it in a way that makes it highly unlikely that anyone you would never want to take custody or care of your kids would even try. With this confidential document, you can ensure your children are always kept out of the care of anyone you would never want to make decisions for them.

You Have Unique Desires for Your Kids’ Education, Healthcare, and Financial Well-Being

You spend an inordinate amount of time planning your kids' activities, their care, and their birthday parties. You almost certainly have distinct desires regarding their education, healthcare, and financial well-being. A Kids Protection Plan™ allows you to articulate these wishes in a way that provides your kids’ Legal Guardians with guidance and your children with the comfort of their routine.

Plus, providing clear instructions to potential guardians ensures your children's upbringing aligns with your values and aspirations. This process not only secures their future but also provides you with clarity about your parenting priorities.

Comprehensive Protection for the Ones You Love Most

While nominating permanent legal guardians is fundamental, it might not suffice in every situation. A full-fledged Kids Protection Plan® offers a holistic approach, addressing the potential pitfalls of leaving your kids with caregivers, excluding unwanted individuals from guardianship, and outlining your unique desires for their well-being. This comprehensive plan ensures that your children remain in the care of trusted individuals who understand and respect your values.

If you're ready to make creating a Kids Protection Plan® your most significant New Year’s resolution, the first step is to schedule your Life & Legacy Planning Session™. During the Session, we’ll guide you through our unique, heart-centered process to tailor a plan that reflects your wishes, secures your family's future, and includes a Kids Protection Plan®.

And unlike other resolutions that may be hard to stick to, we’re here to guide and support you through every step to ensure your Kids Protection Plan® offers the best protection for the people you love - both now and for years to come.

Call us today at 855-221-8251 to schedule a complimentary call to learn more about our process and schedule your own Life & Legacy Planning Session®.

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Hiring a Lawyer: What Flat Fees, Hourly Fees and Retainer Billing Could Mean For Your Life and Family

Trying to find the right lawyer to help with legal matters, especially if you are under the gun in a crisis situation, but even if you aren’t, can often feel like navigating uncharted waters. You want to find an attorney you like who will understand your family’s needs, but you also have to consider the cost of the attorney you’re hiring, and whether they can meet your immediate needs and be there for you in the long term.

Depending on the type of legal work you need handled, whether it’s a high-conflict litigation matter, a one-off transactional matter, or ongoing strategic support, the options can be confusing to say the least. Maybe you’ve even considered a legal insurance plan or a pre-paid legal program. While the idea of legal insurance is fantastic, the execution is often lacking.

In this blog, we’ll explore your options for hiring a lawyer just by looking at the legal billing models. In future articles, we’ll consider other factors, such as the benefits of consistent relationships, strategic guidance, and proactive risk prevention. In addition, for the purposes of this article, we’ll focus on proactive estate planning, and touch on some of the other more reactive situations, such as crisis planning to support an elder who needs immediate nursing care or a high-conflict divorce or business break-up.

The Pitfalls and Costs of Hourly Billing

Hourly billing, tracked and invoiced in 6-minute increments, was the standard legal billing model for generations. If you’ve ever hired a lawyer billing by the hour, you probably experienced the reality where you really didn’t want to share too much with that lawyer, and wanted to keep your conversations as concise as possible, always tracking whether the conversation strayed into anything personal and perhaps wondering “am I getting billed for this?”

As a result, when hiring an attorney who bills by the hour, you’ll likely find yourself hesitant to contact your attorney with questions or additional pieces of information because you don’t want to incur extra costs or get a surprise bill in the mail. This creates a barrier to open communication with your lawyer and can keep you from getting the legal support you truly need.

Or, you may not even think about how your lawyer is billing, and after a quick phone call to your lawyer here and an email to them there, you could be caught off guard by how quickly those 6-minute increments add up to substantial invoices you weren’t planning on. This can harm your relationship with your lawyer, make it challenging to budget for legal services effectively, and can leave you feeling stressed about your legal bills instead of focusing on the reason that brought you to the lawyer in the first place.

Complex cases or unforeseen complications can inflate your bill even more by prolonging the time your lawyer is needed to complete the work. Even without a complex case, hourly billing may unintentionally skew your lawyer's incentives. After all, a longer legal process means more billable hours for them. If you’re wondering if this is the case with your lawyer, it negatively impacts your sense of trust in your relationship with them.

Hourly rates for lawyers can be as low as $125 per hour, and as high as $1000 or more per hour. In some big firms, they even get as high as $2000 per hour now. The general range seems to be $250-$650 per hour, depending on the type of matter.

Because hourly billing comes with so many risks to the relationship with your lawyer and your bank account, whenever possible, we recommend that you work with a lawyer who is experienced enough in the type of matter they are handling for you that they are able to quote you a flat fee for a specific outcome related to the work you need handled.

The Advantages of Flat Fees

Choosing a lawyer who charges flat fees flips the script, offering a straightforward and transparent approach to legal billing. With flat fees, you know exactly what you'll pay from the outset, and what you’ll be delivered in return. As we say here in our office: everything is billed on a flat-fee basis, agreed to in advance, so there are no surprises. This transparency eliminates the stress of unexpected costs and allows you to plan for legal expenses more effectively.

Flat fees give you and your lawyer room to speak freely about your needs without feeling as if you need to watch the clock or wonder if you’ve strayed too far afield in your conversation and connection. This means you can ask questions without worry, and leave it to your lawyer to set boundaries around whether any of the additions you may want would increase the fee for the services you need.

The way we see this work in our office when we are focusing on your estate planning matters is that we’ve invested considerable time in coming up with a flat fee billing structure that’s based around the outcomes you desire, rather than the specific documents you need, and that is flexible to change and grow with you over time.

For example, you may begin with a plan that is focused on keeping your kids in the care of people you know, love, and trust but doesn’t fully avoid the court process. Later, you might upgrade to a more comprehensive plan that focuses more on asset protection. The critical aspect here is that your fee is tied to the outcomes you desire, not the hours it takes or the documents we create.

When an attorney charges a fee for their services that is based on the outcome you desire, you know you’re getting a comprehensive package, not just one or two documents or a set of hours that won’t actually deliver for you and your family at the end of the day.

Keeping The Focus On You

As your dedicated Personal Family Lawyer® firm, we specialize in providing comprehensive estate planning with a focus on our client relationships. That means charging a reasonable flat fee for a comprehensive plan where we can take the time to get to know you, your family, and your needs on an intimate level and tailor your fee to the outcomes you desire.

Plus, we understand that planning for death and incapacity can be a lot to think about, and we want to give you the mental and emotional space to consider your estate planning options without the anxiety or distraction of a bill that changes every month. We want our time spent together to be entirely focused on you and your needs.

If you’re ready to create an estate plan for the people you love that will serve and protect them for years to come, we invite you to reach out.

Schedule a complimentary discovery call with us to get started by calling 855-221-8251.