6B | TUESDAY, APRIL 26, 2022 | THE HERALD-MAIL
Estate PLANNING Why you need a lawyer in your corner
Metro Creative
One need not spend ample time to find depictions of lawyers on television and in films. Though such depictions are not always so rosy, most lawyers are reputable individuals who help people navigate the complicated matters of the law. There are many instances when it is in a person’s best interest to hire an attorney. The law is more nuanced than people outside the legal profession may realize, and having a person in one’s corner who understands the ins and outs of the law is a wise move. The following are a handful of reasons
why it pays to have a lawyer in your corner. Lawyers understand legal documents. Attorneys know that procedure is a major part of the law and the judiciary system. A lawyer will help to file the correct paperwork, fill out legal documents, contact courts, and engage in legal procedures in the correct fashion. Lawyers have access to experts. Attorneys have strong networks and can connect their clients with experts that support their efforts. For example, parents who are using a special education attorney to navigate 504/IEP plans can ask their lawyer to connect them with an education advocate, expert or tutor who can serve as a witness or reference. Lawyers ensure guidelines are followed. A lawyer can be an asset when drafting a will or engaging in elder care arrangements. With legal, binding documentation, contestation of wishes is much more difficult and ensures that a financial legacy is put to use as intended. Lawyers know how to
Ways to cut costs during retirement Metro Creative
negotiate and settle. Heading to court isn’t always the best outcome. Experienced attorneys likely have seen similar cases and scenarios and can make informed guesses about how your own situation may play out if it goes to trial. He or she may suggest a settlement or know a tactic that can work in your favor, particularly if it results in reduced legal fees. Lawyers can effectively lock horns with other lawyers. Individuals who choose to represent themselves are at a disadvantage when the other side has hired an attorney. To avoid this inequity of knowledge and experience, it’s best to seek legal representation. Lawyers provide unbiased insight. When dealing with complicated family issues, such as estate planning, divorce or custody, it pays to have a third party who is emotionally detached from the situation to help guide decision-making. Attorneys can guide people through all types of complicated legal matters and provide sound, unbiased advice.
The average person will spend more than 50 years in the employment sector. As retirement draws closer, many professionals begin to daydream about giving up the commute and having more time to pursue their personal interests. Even if planning for retirement has been many years in the making, it can take some time for a person to become acclimated to having less income. According to data from the Bureau of Labor Statistics, “older households,” which are defined as those run by someone age 65 and older, spent an average of $45,756 in 2016, or roughly $3,800 a month. That’s roughly $1,000 less than the monthly average spent by typical American households. Housing, transportation, health care, and food are some of the biggest bills retirees will have to account for. Aiming to have savings in addition to any other retirement income or government subsidy coming in to cover that amount is a step in the right direction. Retirees can make their money go further if they take inventory of their spending and make some cuts where possible. • Know where your money is going. It’s impossible to save without knowing what your expenses are each month. Many people are surprised to learn how much little things add up over the course of a month. For example, spending $4 for a take-out coffee each day can quickly become an expensive luxury. Add all expenses and see where you can trim, especially if there’s a deficit each month. Continued on page 7B
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Continued from page 6B • Consider extra health care. In the United States, Medicare participants can choose Medicare Supplement Insurance plans to help reduce out-ofpocket health care costs. Medicare Parts A and B only cover some of your health care costs. Supplemental insurance can cover some of the costs not covered by original medicare, like copayments, deductibles and coinsurance, according to AARP. • Pare down on possessions. Take inventory of what you have and scale back where possible. If you are no longer commuting to work, you may be able to become a one-car household. Downsizing your residence can help seniors avoid spending too much of their retirement time and money maintaining their homes. • Take advantage of senior discounts. Take advantage of the many discounts that are offered to seniors. Retirees can usually save on restaurants, travel, groceries, and much more by simply shopping on specific days or verifying their age when checking out. • Purchase less expensive life insurance. According Cheapism, a site that advises consumers about how to be more frugal, the chief purpose of life insurance is to replace income to ensure the financial security of dependents in the event of death. Retirees may have no dependents and little income. Therefore, a large life insurance policy may not be necessary, especially if you’ve already set aside funds to cover funeral costs. • Pay off a mortgage. Housing is many people’s most substantial expense. Paying off a mortgage can free up more money each month and allow retirees to spend their golden years doing as they please. As retirement nears, adults can employ various strategies to reduce their monthly expenses.
How to include giving in your estate plan Metro Creative
Charitable giving is the lifeblood of many nonprofit organizations. The generosity of donors helps charities meet their missions and provide vital services to people facing disease, financial hardship and other situations they cannot overcome on their own. Many donors make sacrifices to support their favorite causes and charities. Forgoing certain luxuries so money can be donated to charity illustrates the selfless nature of charitable giving, which can even continue after death. Estate planning is a complicated process that details exactly how a person wants their assets divvied up after death. But an estate plan also can go into effect while individuals are still alive. Each year, millions of people across the globe choose to include charitable giving in their estate plans, and that can benefit charities and donors. The following are a handful of the many ways charitable men and women can incorporate giving into their estate plans. Bequest giving in a will or living trust. Perhaps the most widely known way to include charitable giving in an estate plan is to bequeath money in a will or living will. The Community Foundation Alliance notes that bequests typically allow donors to define how their donations will be spent or utilized. That benefits charitable organizations, but surviving family members also can benefit from such arrangements. According to LawDepot. com, individuals may be able to lower the estate taxes on their estates at their time of death if they bequeath
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money to an eligible charitable organization in their wills. Consider a charitable rollover. The Internal Revenue Service notes that individuals with an IRA, SEP IRA, Simple IRA, or retirement plan account generally must begin withdrawing money from these accounts when they reach age 72. These withdrawals are called required minimum distributions and they are considered taxable income. However, individuals who want to give to charity can opt for a Qualified Charitable Distribution, or QCD. A QCD counts toward the minimum distribution from retirement accounts and individuals will not be taxed on the money they donate to charity. That’s a win-win for charities and individuals 72 and over who do not need to withdraw money from their IRAs to meet daily living expenses.
Donate via a charitable remainder trust. A charitable remainder trust, or CRT, allows individuals to set up a trust that benefits both a designated beneficiary and a charity or charities of their choosing. When a CRT is set up, a beneficiary will receive annual payments from the trust until it terminates, at which time the remaining funds in the trust are donated to charity. The philanthropy experts at Fidelity Charitable note that individuals can name themselves as the beneficiaries of the trust, which ensures they will have an income during retirement and that their favorite charities will be supported when the trust expires. Individuals who want to make charitable giving part of their estate plan can do so in various ways.