Wills – Hanson Legal | Tax | Financial Planning https://harveyhanson.com Fri, 05 Oct 2018 14:10:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.3 https://harveyhanson.com/wp-content/uploads/2018/09/cropped-logo-jhh-e1537453857153-32x32.png Wills – Hanson Legal | Tax | Financial Planning https://harveyhanson.com 32 32 Your Fall “Legal Affairs” Checklist   https://harveyhanson.com/your-fall-legal-affairs-checklist/ Wed, 05 Sep 2018 14:04:29 +0000 http://harveyhanson.com/?p=180 With the fall season approaching, it’s an excellent time to review your affairs. Below is a checklist to ensure your planning meets your needs and is up-to-date:

 

  1. When was your power of attorney last updated?A power of attorney is a valuable legal document, no matter what the circumstance. Not only is it flexible and can be prepared to meet your particular needs, but it can be made effective immediately or when you are unable to manage your own affairs. It is vital to review it periodically and replace it with a new one as necessary. This need may arise if you need to name a new person to help you or if you need to add or remove powers from the document.
  2. Does your trust/will still match your wishes?Once a will or trust is created, many people simply put it in a safe place and forget about it. There are several reasons to review and update these estate planning instruments (and others) including marriage or divorce, birth or adoption of a child, a recent windfall of cash or assets, the purchase or sale of a home, or a recent move to another state or country. Your life changes so your will or trust must change too to ensure that your needs and desires continue to be met.
  3. Is your business paperwork in order?Whether you own an LLC, corporation, or another type of business entity each year paperwork must be filed with the secretary of state and potentially other government agencies.  Make sure all of your documents have been updated, fees have been paid, and licenses have been renewed. If they are not yet due, make sure to calendar these deadlines as to not miss them.
  4. Have you met with your tax advisor recently?End-of-year planning is important any year when it comes to your taxes and potential liability, but this is especially true now in light of the 2017 tax changes passed by Congress. The IRS has been busy releasing regulations and new forms so tax season will be much different next year. Learn about your options under the law ahead of time so you are not hit with a not-so-nice surprise come tax season.
  5. Have you met with the rest of your professional team? Whether the market is a bear or bull, it is important to meet with your financial advisor to go over your investment results annually and put together an investment strategy for the upcoming year. For legal questions, it’s important to meet with your attorney before a legal situation becomes difficult to manage.

 

These are just some of the items you should focus on when considering your personal matters and ensuring your legal life is up-to-date.

 

Do Not Delay

 

There are several reasons to review and update your legal matters, including your estate plan. Before you make any decisions be sure to contact your estate planning attorney and the rest of your professional team. Understanding how your wishes are affected by applicable law will help make you make a more informed decision and protect you and your loved ones. Give us a call today.

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Do It Now: Name a Guardian for Your Minor Child(ren) https://harveyhanson.com/do-it-now-name-a-guardian-for-your-minor-children/ Fri, 03 Aug 2018 14:06:29 +0000 http://harveyhanson.com/?p=182 We know it’s hard. Thinking about someone else raising your children can stop you in your tracks. It feels crushing and too horrific to consider. But you must. If you don’t, a stranger will determine who raises your children if something happens to you – your children’s guardian could be a relative you despise or even a stranger you’ve never met.

 

No one will ever be you or parent exactly like you, but more than likely, there is someone you know that could do a decent job providing for your children’s general welfare, education, and medical needs if you are no longer available to do so. Parents with minor children need to name someone to raise them (a guardian) in the event both parents should die before the child becomes an adult. While the likelihood of that actually happening is slim, the consequences of not naming a guardian are more than intense.

 

If no guardian is named in your will, a judge – a stranger who does not know you, your child, or your relatives and friends – will decide who will raise your child. Anyone can ask to be considered, and the judge will select the person he or she deems most appropriate. Families tend to fight over children, especially if there’s money involved – and worse – no one may be willing to take your child; if that happens, the judge will place your child in foster care. On the other hand, if you name a guardian, the judge will likely support your choice.

 

How to Choose a Guardian

 

Your children’s guardian can be a relative or friend. Here are the factors our clients have considered when selecting guardians (and backup guardians).

 

  • How well the children and potential guardian know and enjoy each other

 

  • Parenting style, moral values, educational level, health practices, religious/spiritual beliefs

 

  • Location – if the guardian lives far away, your children would have to move from a familiar school, friends, and neighborhood

 

  • The age and health of the guardian-candidates:

 

  • Grandparents may have the time, but they may or may not have the energy to keep up with a toddler or teenager.

 

  • An older guardian may become ill and/or even die before a child is grown, so there would be a double loss.

 

  • A younger guardian, especially a sibling, may be concentrating on finishing college or starting a career.

 

  • Emotional preparedness:

 

  • Someone who is single or who doesn’t want children may resent having to care for your children.

 

  • Someone with a houseful of their own children may or may not want more around.

 

WARNING:Serving as guardian and raising your children is a big deal; don’t spring such a responsibility on anyone. Ask your top candidates if they would be willing to serve, and name at least one alternate in case the first choice becomes unable to serve.

 

Who’s in Charge of the Money

 

Raising your children should not be a financial burden for the guardian, and a candidate’s lack of finances should not be the deciding factor. You will need to provide enough money (from assets and/or life insurance) to provide for your children. Some parents also earmark funds to help the guardian buy a larger car or add to their existing home, so there’s plenty of room for extra children.

 

Factors to consider:

 

  • Naming a separate person to handle the money can be a good idea. That person would be the trustee in charge of the assets, but not guardian of the children, responsible for the day-to-day raising of the children.

 

  • However, having the same person raise the children and handle the money can make things simpler because the guardian would not have to ask someone else for money.

 

  • But the best person to raise the children may not be the best person to handle the money and it may be tempting for them to use this money for their own purposes.

 

Let’s Continue this Conversation

 

We know it’s not easy, but don’t let that stop you. We’re happy to talk this through with you and legally document your wishes. Know that you can change your mind and select a different guardian anytime you’d like. The chances of needing the guardian to actually step in are usually slim (we always hope this is the one nomination that’s never actually needed); but, you’re a parent and your job is to provide for and protect your children, so let’s do this. Call our office now for an appointment and we’ll get your children protected. 918-928-9573

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How to Choose a Guardian for Yourself   https://harveyhanson.com/how-to-choose-a-guardian-for-yourself/ Thu, 12 Jul 2018 14:09:18 +0000 http://harveyhanson.com/?p=185 Every day we make hundreds of decisions from what to eat for breakfast to where we go on vacation.  With each passing day, there are more choices to be made.  But, what will happen if you can’t make decisions for yourself? Before that time comes, there is one important decision you need to make. Who do you want to serve as yourguardian?

 

For those of you who have had your estate planning recently done or reviewed, you probably discussed and executed a Financial Power of Attorney. For those of you on the fence about having your estate planning completed, this is another valuable reason why it is so crucial.  With this document, you are authorizing someone to handle your financial affairs (sign checks in your name, open up a bank account, enter into contracts on your behalf, etc.).  This can be very beneficial because if you are no longer able to do these things for yourself, someone else can immediately step in and do them for you. However, you may run into situations in which third parties are going to want the person to have more authority than just a signed Financial Power of Attorney.  In these cases, they are going to require you have a Guardian appointed.

 

A Guardian is essentially a court-appointed and court-“controlled” agent.  They have the court’s authority to handle your financial affairs on your behalf if you cannot.  In many jurisdictions, the court will give priority to an individual who has been named as agent under a Financial Power of Attorney, making it incredibly important that you have one prepared.  If you do not have one, each state will have a law that lists the order in which people are appointed.  In some cases, you could end up having someone handling your affairs that you would have never wanted, like an estranged parent or sibling. A financial power of attorney lets you share your wishes with the court.

 

To ensure that you are taken care of when you can no longer take care of yourself, it is important that you choose the right person.  When analyzing the pool of candidates, consider the following questions:

 

  • Does he or she have the time to act as your guardian? Often times, those individuals who are the most organized and knowledgeable to help out are also the most heavily scheduled individuals and may not be able to step in.
  • Does he or she live close by?Even in our digital world, some issues may take multiple steps or in-person interactions to resolve. If the individual you are looking to appoint lives far away, he or she may not be able to fully carry out their duties.
  • Does he or she have the skill set needed?When acting as a Guardian, it is crucial that the individual is organized, thorough, and can communicate clearly. A person who is scattered or flies off the handle easily is not going to be a good advocate for you.

 

While we all want to retain as much autonomy as possible, there may come a time when we need someone to act for us.  Selecting the right individual will ensure that you are taken care according to your wishes.  If you have any questions or would like to discuss who you should appoint for this role, contact us. We’re here to help. 918-928-9573

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Your Post-Honeymoon Legal Checklist https://harveyhanson.com/your-post-honeymoon-legal-checklist/ Tue, 05 Jun 2018 14:01:03 +0000 http://harveyhanson.com/?p=177 Your wedding is over, and the day was absolutely perfect. You went away on your honeymoon with your new spouse and had the time of your lives. Now you are back and can breathe a sigh of relief and watch the rest of the years ahead unfold before your eyes. Well, not so fast. Now that your honeymoon is over, there are several things you should be mindful of to make sure that the legal and financial parts of your life properly reflect your newly married status.

 

What To Do After the Honeymoon

 

As you start living happily ever after, make sure to attend to these post-honeymoon to-dos during the first few days (or even weeks) after your wedding. This will help you enjoy the memories of your wedding and honeymoon for years to come. The following checklist can serve as a reminder of some, but not all, of the tasks to which you should give your immediate attention:

 

  • Meet with a knowledgeable estate planning attorney to discuss the creation of a will or trust, or to update one from before you got married;
  • Review and update your medical proxy documents and provide copies to your necessary doctors’ offices;
  • Check and update beneficiary designations on any life insurance policies, 401(k)s, IRAs, annuities, and other investment accounts;
  • Seek advice from your tax preparer about whether or not you should adjust your withholdings to reflect your new marital status;
  • Obtain life insurance, if you do not already have coverage, and designate a beneficiary and a contingent beneficiary;
  • If you have or are planning to move, notify your auto insurer, banks, employer, and anyone else of your new address;
  • Add your spouse to your group health and/or dental insurance policy, if necessary; and
  • Change ownership of real property, if you choose to, to reflect your marital status;

 

In addition to the above, if you decide to legally change your name make sure to notify the following institutions:

 

  • Schools;
  • Employer(s);
  • Department of Motor Vehicles;
  • Creditors and debtors;
  • Social Security Administration;
  • Passport office;
  • Insurance agencies;
  • State taxing authorities;
  • Telephone and utility companies;
  • Banks and financial institutions;
  • Government benefit office.

 

Contact an Experienced Estate Planning Attorney

 

We are here to help guide you through the estate planning process and to make sure that the financial and legal aspects of your life correctly match your new marital status. Contact us today to learn about how we can help you enjoy your wedded bliss with financial and legal security. 918-928-9573

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The More You Know: Reverse Mortgages & Estate Planning https://harveyhanson.com/the-more-you-know-reverse-mortgages-estate-planning/ Thu, 04 Apr 2013 15:41:58 +0000 http://harveyhanson.com/?p=169 You have likely seen several advertisements for reverse mortgages if you have spent any time watching television or surfing on the internet. The concept and sell is a simple one: as long as you own and live in your home, you can supplement your retirement income with a loan that you do not need to pay off. The trade-off when it comes to a reverse mortgage is that you are using your home’s equity to receive that extra retirement income. Even if a reverse mortgage is right for your circumstances, entering into a reverse mortgage is something that should be understood fully before signing any paperwork.

 

Reverse Mortgages Explained

 

How they work:Most reverse mortgages are federally insured and have several requirements including: (1) at least one borrower is aged 62 or older; (2) the home must be the primary residence; (3) the borrower must have financial resources to keep up with the home (taxes, insurance, maintenance); and (4) the borrower must own the home outright or have a low enough “regular” mortgage.

 

Impact on your estate plan:If you plan on leaving your home to your heirs, understand that a reverse mortgage will reduce the value they receive. Depending on when you pass away and how long the reverse mortgage was in place, your home’s equity may have been exhausted meaning that there is nothing of value to leave your heirs. In that case, your heirs may need to pay off or refinance the mortgage to keep the house.

 

Retirement income: The positive trade-off of a reverse mortgage is that you will have an additional source of retirement income, which can be received in several different ways including: (1) an upfront lump-sum, (2) a monthly payout, or (3) a line of credit. Each scenario has its own tax, borrowing costs, and home value implications. If you’re considering a reverse mortgage, talk to your financial advisor and estate planning attorney first, to make sure you select the best payout option for your circumstances.

 

Buyer beware: It is important to make sure you avoid scams that are pretending to be legitimate reverse mortgages. One way to help avoid being tricked is to make sure you work with a reputable provider. You should also make sure that a reverse mortgage is a good fit for your financial needs before signing any documents. Finally, consider the estate planning impact entering into a reverse mortgage may have on your intended wishes once you are gone.

 

The Implications of Reverse Mortgages

 

There are several factors to take into consideration when you are contemplating a reverse mortgage. Specifically, the effect it will have on your estate plan, the type of retirement income you are trying to obtain, scams to watch out for, and anything unique to your circumstances. There are several questions you should address before deciding whether or not a reverse mortgage is right for you. These include:

 

  • Can the life insurance you have in place pay off your reverse mortgage?
  • Will your reverse mortgage exceed your home’s value when you pass away?
  • What will happen to others living in the home if you die without paying off the loan?

 

Seek Advice

 

In addition to shopping around to find a reverse mortgage lender with terms that are most favorable to you, you should also determine whether a reverse mortgage is right for you and your needs. We can help you learn more about the options available to you and your family when it comes to your applying for a reverse mortgage and the impact it will have on your estate plan.

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