Trusts and Powers of Attorney for Our Parents and Grandparents

As tough as it is to think about, none of us is as young as we used to be – our parents included.  Many of us have parents who are hale and hearty and more than capable of taking care of themselves and their finances.

For some, though, it may be beginning to look like Mom and Dad need help – more help than they used to, anyway.  Maybe you’ve seen overdraft notices from the bank or past-due notices from creditors.  In some of those cases, it’s simple oversight.  In others, however, it can be a sign that those who once held our hands and guided us through now in need a helping hand of their own.  Bounced checks, duplicate payments, missing whole payment cycles - all these can be signs that help is needed.

If your parents or grandparents need this kind of help, do they have the right kind of estate plan in place to assure that you (or the person of their choice) can step in to assist when needed?

There is a good, recent article on the Wall Street Journal site about just how difficult, but important, it is to take notice of when our parents and grandparents need our help managing finances.

It will never be a comfortable topic but it is one we ignore at our peril.  At the end of the day, a well-drafted power of attorney (at the least) and/or a well-designed revocable living trust (often a better, more thorough option) can make all the difference in the world as far as our ability to safeguard those who have always loved and looked after us.

Do Your Friends and Family Have Proper Estate Planning in Place?

I was talking with my parents this weekend about estate planning.  We got around to the fact that many people are putting off estate planning due to misperceptions about an uncertain economy and the effect that has on the need for estate planning.

My parents have had their planning complete for some time now and I was curious about whether their friends have been as diligent.  As it turns out, they'd actually discussed the matter with a close group of friends.  The group is all 55+ with a high average level of education.  Many had, prior to retirement, been government employees at some point during their careers.  The level of personal assets/income in the group varies widely.

As you've read other places in this blog, elsewhere around the Internet, and in many/varied periodicals - a majority of Americans do not have a meaningful estate plan in place.  So, what do you think?  What were the results of my parents' informal poll of friends?  50% or less having this critical part of their lives properly taken care of?  That's what I thought.

I was pleasantly surprised to learn that every member of the group has some sort of planning in place.  Outstanding!

Now, the next important questions are:  1.)  When was that planning last reviewed? and 2.)  Does the planning still reflect their family situation and wishes?  My guess is that a significant portion of this group hasn't had a review of their plan since before the year 2000 (that is to say, no review since before EGTRRA took effect).  Almost certainly, they've not reviewed their plan in light of this year's estate tax repeal, the attendant tax basis/capital gains tax changes, and what now looks like a fair likelihood of a shrinking estate tax exclusion starting next year.

To those of you have a plan in place - bravo!  You have put yourselves head and shoulders above most of your contemporaries.  The responsibility to yourself and your family does not, however, end there.  If your estate planning attorney has not been in touch with you regarding review of your plan - contact him or her.  If you do not have a relationship with an estate planning attorney you trust, and would still like a review, contact us today.