Life & Legacy-March 2023

Explaining wills and trusts

It’s never too early for adults to think about estate planning. Estate planning is an important part of money management. While it’s easy to think of estate planning as just a way to dictate how your assets are allocated after your death, estate planning also can protect people and their money should accidents or injury make them incapable of managing their finances on their own.

Some familiar terms may come up when people begin planning how they hope to transfer their assets. Two more common terms are wills and trusts. Understanding the distinctions between the two can help people as they begin estate planning.

What is a will?

The online financial resource

Investopedia notes that wills are legally enforceable documents that dictate how people want their affairs handled and assets allocated in the wake of their deaths.

Wills should include a host of information, including who a person wants to assume guardianship of their minor-aged children should they pass away. This is especially important information to include in a will, as surviving relatives may have to go to court to contest guardianship if parents do not dictate who they want to serve as guardians in their wills.

What is a trust?

A trust is a relationship in which another party is given authority to handle a person’s assets for the benefit of that

person’s beneficiaries. When making a trust, a person will need to designate someone as a trustee, who will be tasked with distributing assets in ac cordance to the terms dictated in the trust.

There are many types of trusts, and working with an attorney who specializes in es tate planning can help men and women determine which type of trust, if any, is best for them.

Is it better to have a will or a trust?

Both wills and trusts can be useful when estate planning. In fact, wills are often used to es tablish trusts, and many people have both a will and a trust.

Estate planning is an im portant part of managing one’s finances. A qualified attorney who specializes in estate plan-

their wills and, if necessary, establish trusts that can help sur-

ning can help people write

viving loved ones in the wake of their death.

A Q&A About Retirement Planning

Individuals need not look very far to be reminded of the importance of planning for retirement. Television ad campaigns touting the need to plan for retirement have been front and center for many years. Banks also heavily promote their retirement planning services to account holders. The emphasis financial firms and banks place on retirement planning underscores just how important it is for individuals from all walks of life to prioritize securing their financial futures.

Ad campaigns can make saving for retirement seem simple, but plenty of people may have questions about how to save for the days when they are no longer working.

Why and when should I begin investing to build my retirement savings?

It’s never too early to start saving for retirement. Young professionals may not be anywhere close to retirement, but that doesn’t mean they can afford to put off saving for the day when they call it a career. Much of that has to do with infla-

tion. The rate of inflation varies, but it’s fair to assume that your cost of living will rise dramatically between your twenty-third birthday and your seventieth birthday. If you choose to simply save as opposed to investing that money, your money will not grow at a rate necessary to overcome inflation. Though there’s no guarantees with investing, traditional retirement investment vehicles have a proven track record of outpacing inflation. For example, Standard & Poor’s 500® (S&P 500) reports that individual retirement accounts (IRAs) grew by an average of 10.8 percent between 1971 and 2020. Over that same period, the U.S. Bureau of Labor Statistics indicates that the dollar had an average rate of inflation of 3.99 percent.

How can I save for retirement?

Various investment vehicles can help people save for retirement. Many people utilize employer-sponsored 401(k) retirement plans. These allow individuals to deposit money via pre-tax contributions deducted from their paycheck. For

young people, enrolling in these plans as soon as they’re eligible can be a great way to begin building their retirement savings, and since many people contribute between 6 and 10 percent of their pre-tax earnings, their take-home pay will not be significantly different once they enroll. IRAs, pension plans, certain life insurance policies, and regular contributions to personal savings accounts are some additional aways to save for retirement.

How much will I need to save for retirement?

No two people are the same, so there’s no simple answer to this question. Estimates about how much people will need in retirement range from 60 to 80 percent of their yearly income the year they stopped working full-time. A financial advisor can be a useful ally as people try to calculate how much they will need to save for retirement. However, the simplest answer to this common question is that there’s no such thing as saving too much money for retirement so long as saving does not adversely affect

INSURANCE WITHOUT A MEDICAL EXAM

other areas of your life.

What if I need money before retirement?

No law prohibits people from withdrawing funds from designated retirement accounts be fore they retire. However, there may be significant financial penalties and tax consequences if you do so. For example, the Internal Revenue Service allows penalty-free with drawals from a 401(k) after an account holder turns 591⁄2. Withdrawals made before then could be subject to federal and state income tax and a 10 percent penalty of with drawn funds. Individuals are urged to speak with a financial advisor about withdrawal guidelines

and penalties prior to opening a retirement account.

Saving for retirement is vital and it’s never too early to begin investing in your financial future.

What to know about life insurance

Millions of adults go to great lengths to protect their assets. Those measures run the gamut from simple everyday efforts like utilizing two-factor authentication when accessing financial accounts via online or mobile banking apps to more complicated undertakings like estate planning. Life insurance is a component of estate planning that is vital to anyone looking to protect their assets in the event of their death.

Explaining life insurance Life insurance is both similar to and different from other types of insurance. Like homeowners and auto insurance policies, life insurance provides financial protection in difficult circumstances. A life insurance policy is a contract between an

insurance provider and a policy holder that guarantees a payout to beneficiaries designated by the insured individual in the wake of that individual’s death.

Personal history Insurance providers differ, but individuals interested in life insurance can expect to be asked about their medical histories and lifestyle habits when discussing policies. Prospective policy holders will often be asked to sign waivers that allow providers to access their medical records. This is necessary so companies can get an idea of the health of the person applying for life insurance, which will determine the cost of a policy. That information, as well as family history, is important because it can serve as an indicator of future

health risks. Some variables, including lifestyle habits like smoking, won’t necessarily appear on an individual’s medical history. In an effort to address that, insurance providers typically ask prospective policy holders to answer a variety of questions about their lifestyle, including whether or not they smoke and how much alcohol they consume. It’s vital that individuals answer these questions honestly, as companies can deny payouts to beneficiaries if they determine policy holders misled them during the application process.

Coverage Coverage needs vary depending on the individual. Life insurance is intended to provide for loved ones in the aftermath of a policy holder’s

death. How much money will those individuals need to pay their bills?

Young adults who are just starting their families may want more coverage than aging adults who have already paid off their homes and saved a considerable amount for retirement. The National Association of Insurance Commissioners recommends that individuals ask themselves how much of the family income they provide and if anyone else, such as an aging parent, depends on them for financial support. Answering these questions can help individuals determine how much coverage they need.

Types of coverage

Insurance providers offer various types of life insurance policies. Term life policies are among the most popular because they tend to be affordable while offering substantial coverage. There are different types of term life policies, but policies tend to run for anywhere from 10 to 30 years and expire around the time individuals reach retirement age. That’s because many people save enough for retirement and don’t have the sizable expenses, such as a mortgage, to account for at this point in their lives. That means loved ones won’t necessarily need to be provided for in the wake of a policy holder’s

death.

Permanent life insurance policies last until the policy holder’s death so long as he or she continues to pay the premiums on time. Financial advisors can help individuals understand the ins and outs of the various types of permanent life insurance policies, which differ from term life policies because they can serve as investment vehicles and sources of loans in certain instances. Life insurance is a vital component of asset protection that can offer peace of mind to policy holders who want to ensure their loved ones are provided for in the wake of their death.

How to make a charity a beneficiary

Giving to charity can be a rewarding endeavor that makes a difference in the lives of people in need. Many people donate throughout their lives, and some people may want to impart a more lasting legacy by continuing to support a charity even after they have passed away.

Incorporating a charity into an estate plan is a great way to continue giving after you pass away. Individuals may not know how to make charities beneficiaries in their wills. A financial planner, attorney or accountant can answer the more complex questions individuals have about naming charities as beneficiaries in a

will. In the meantime, this general guide can serve as a solid foundation for individuals who want to give back in their wills.

Most people think of beneficiaries as loved ones, but a beneficiary can be any person or entity one chooses to leave money to, including nonprofit organizations. It’s relatively the same process to name a charity as a beneficiary as it is an individual. According to the resource Trust & Will, first identify the charity that will be supported, including getting its Employer Identification Number or Taxpayer Identification Number. Next, determine which type of gift to make, which

may be a predetermined financial contribution, a gift of property, or other assets like stocks. For large donations like real estate or cars, it may be best to contact the charity in advance to ensure they are able to accept such gifts. Finally, be sure to include your wishes in an estate plan. A qualified attorney can help clients draft a will that spells out their wishes in detail.

Keep in mind that charities also can be named as beneficiaries on life insurance policies or individual retirement accounts. They also can be listed on bank accounts. Again, people are urged to discuss all options with estate planners to en-

Professional Services with Personal Care

sure their plans fully reflect their wishes.

When naming a charity as a beneficiary, it can be wise to inform family members and other beneficiaries so no one is caught off guard upon your death. This way the charitable gift is not held up by delays in executing the will.

Friday, April 21

Saturday, April 22

Youth Park, Reedsville 40+ Vendors Food Door Prizes

Dr. Lori Returns!

Delivering the Best in Dementia Care

Submitted by:

Kristin Daugherty, Long-Term Care Planner, Certified Medicaid Planner™,

Certified Dementia Practitioner and recognized as a NCCDP Certified Alzheimer’s Disease & Dementia Care Trainer.

Let’s take a minute and think about the dollar value on peace of mind. Life is busy and we are constantly being pulled in different directions. Personally, I need to be able to trust the professionals in my life – my children’s teachers and coaches, my husband’s and my employers, financial professionals, and doctors – just to name a few. To me, peace of mind is priceless.

Now, imagine that your dad has been diagnosed with dementia. This mind-erasing disease has progressed to the point that your mom can no longer care for him at home, so she has been forced to make the difficult decision to place him into a nursing home. They have

been married for 50 years and this is the first time they will be sleeping under a different roof. This is such an emotional transition not only for mom and dad, but also for the entire family. If you can have peace of mind knowing that the frontline workers caring for dad are specifically trained to deal with dementia, would that make you feel more secure? If this was my dad, then the answer would be a resounding, “YES!”. Knowing that he is going to receive the best care and compassion possible will help me sleep better at night.

For the last four years, I have been designated as a Certified Dementia Practitioner (CDP) through the National Council of Certified Dementia Practitioners (NCCDP), and for the last three years I have been recognized as a NCCDP Certified Alzheimer’s Disease and Dementia Care Trainer.

To become a Certified Dementia Practitioner, an individual must go through an intensive

training that is specifically designed for frontline health care workers such as home health aides, personal care home staff, nursing home staff, hospital staff, clergy, first responders, and anyone else who is looking to enhance their dementia education. The purpose and importance of the training is to promote, encourage, and enhance the knowledge and skills of all individuals who provide care to a person living with dementia. At Steinbacher, Goodall & Yurchak, we want to assist these frontline workers in setting the bar even higher in hopes of providing their patients with an exceptional delivery of services.

Most team members at Steinbacher, Goodall & Yurchak are Certified Dementia Practitioners. From the receptionist who answers the phone when you first call into our office, to the attorneys, planners, and care coordinators who help you navigate through the many steps of this difficult journey, we all

strive to provide our clients with the very best in dementia knowledge, communication, and professionalism.

If you or your loved one have been diagnosed with Alzheimer’s disease, Dementia, or a related cognitive impairment, do not wait to get help – now is the time to get the best team on your side. Contact Steinbacher, Goodall &Yurchak today so we can help you legally navigate through the twisted road that is long-term care. We have a team of attorneys, certified Medicaid planners, social workers, care coordinators, and support staff who are ready to respond to your Alzhei-

mer’s and Dementia planning needs. Learn more or schedule a FREE dementia care strategy session, call Steinbacher, Goodall & Yurchak at 800.351.8334, email info@paeldercounsel.com or visit PAElderCounsel.com.

r favor ite adv ice colum ns on line eve r y day.

Financing Funerals

According to Lincoln Heritage Funeral Advantage, the average funeral costs between $7,000 and $10,000. It can be easy to overlook planning for such a large expense, and many people may think their funeral costs will be covered by their life insurance policies. However, that isn’t always the case and certain complications can arise. The funeral planning information guide Funeral Basics states that sometimes insurance policies become invalid if payments have not been made. Policies may have liens on them, or some named beneficiaries may no longer be alive. This

can stall the process as issues are worked through. In addition, it can sometimes take between six and eight weeks for beneficiaries to receive life insurance policy payouts. Since many funerals take place within a week of a person’s death, it’s unlikely that surviving family members will be able to finance funerals with life insurance payouts. In addition, some policies may not be assignable, which means the benefits cannot be assigned to go to a third party who will file the claim for you (i.e., the funeral home or an assignment company with which the funeral home partners). It’s important

to determine if an existing policy is assignable and to take appropriate measures if it is not. Individuals may want to consider burial insurance or preneed funeral insurance. Another option is to use preplanning services, which allow people to prepay for funeral expenses and make planning decisions regarding the services and burial so that family members will not be tasked with financing and/or planning a funeral during a difficult time in their lives.

YOU DON’T HAVE TO GO THROUGH THIS ALONE.

We are dedicated to quickly guiding you through a crisis even if you think it’s too late to get help. We’ll make sure your loved one receives the right care and protect your assets. When a crisis hits, the stress can be overwhelming. That’s why you’ll find our team of attorneys, social workers and paralegals understanding, responsive and skilled at finding solutions that bring you peace of mind. Elder law is our passion. Protecting you and your family is what we do.

Responsive. Knowledgeable. Caring. Call today for a FREE consultation.

The benefits of skilled nursing facilities

Many aging adults reach a point in their lives when they can no longer care for themselves without some help. Some may just need a little help around the house, while others with more extensive needs may choose to relocate to skilled nursing facilities.

Some aging adults may be able to choose living facilities on their own, and many may even dictate their choices as part of their estate planning. In other instances, such as when seniors suddenly become ill and are incapable of caring for themselves, the decision may need to be made by relatives. Families have a variety of options when looking for living facil-

ities for aging men and women, and there are a host of benefits to skilled nursing facilities.

• Professional care: Many facilities offer skilled nursing care. Skilled nursing care is administered by licensed nurses and therapists. Skilled nursing facilities, or SNFs, are designed to tend to the needs of residents who require a level of medical care that goes beyond what assisted living facilities can provide.

• Peace of mind: Medical attention at SNFs is available around the clock. That often provides residents’ relatives substantial peace of mind, as they know licensed professionals will be on hand to address their loved

ones’ needs at all hours of the day and night.

• Criteria: The Centers for Medicare and Medicaid Services (CMS) will only certify facilities that meet strict criteria. When shopping for an SNF, individuals and families should inquire about certification. CMS-certified facilities are subject to periodic inspections to make sure residents are receiving the highest quality care. That’s another factor that should give families some peace of mind.

• Proximity: According to Commonwealth Medicine, there are more than 15,000 SNFs in the United States. These facilities care for nearly 1.5 million people. With

so many facilities across the country, families can surely find one for a family member in need that’s close to home. Routine visits from friends and family can help seniors make a smooth transition to an SNF and reassure relatives that they won’t have to travel far and wide each time they want to see their loved ones.

Skilled nursing facilities can help aging adults navigate daily life when they can no longer take care of themselves.

Building Flexibility into Your Estate Plan

Submitted by: Craig A. Hatch, Esq., CELA

Any Will that is written is based on certain assumptions presented by the Testator, but should also have flexibility so that if predictable but undesired events occur there are protocols built into the plan. One of the most common is the presumption of the plan of distribution in the event of the death of a beneficiary. If an heir dies before the Testator, then the attorney will want to discuss with his or her client the contingent heir. Many times this will be the children of the deceased heir, but that should not be presumed. The following are some conditions, but not necessarily all, conditions that may be considered for flexibility purposes:

1. No Contest Clause

A no contest clause in a Will is designed to

discourage an heir from challenging the plan of distribution or some other designation in the document. Prepared properly, these clauses can aid the administration process by serving as a shield for the executor by restraining difficult heirs and beneficiaries. Typically such clauses are written to require a forfeiture of most or all of a particular distribution if the heir in question brings any formal action against the executor or challenges the Will. To be upheld, the clauses cannot prohibit formal actions that are well-grounded in fact. The primary benefit of such a clause is to give pause to a disgruntled heir before that heir creates trouble for the estate.

2. Trust terms for distributions to Minors

If there is the possibility that an estate may generate a distribution to a minor either by direct bequest or as a contin-

gent beneficiary, then the attorney should discuss with the Testator the proposed plan of distribution and designate a Trustee to manage the assets.

3. Disinheriting or limiting distributions to an heir receiving public benefits. If the Testator has a beneficiary who is older or is in poor health or is already receiving public benefits, it would be wise to suggest that the Testator consider either leaving no assets or providing limited access to the assets or income of the assets provided to that beneficiary.

4. Dealing with Personalty

Interestingly one of the most difficult issues that can arise in an estate administration is dealing with the personal property. If a child is living with a parent at the time of their death, it can be difficult to establish which property belonged

to which individual. The same concern applies with a mixed marriage.

5. Review and Update Beneficiary Designations. Many people incorrectly assume that their Will covers the distribution of all of their assets. This is the case only for those assets held under your individual name that do not have a beneficiary designation. If you own property jointly or if there is a designated beneficiary, then that account will pass to the surviving joint owner or the listed beneficiary. If you are working with a financial advisor or institution, you should periodically request a status update on the listed ben-

eficiaries and make certain that the beneficiaries match your goals. If you have charitable interests for consideration in your Will, it may make sense to change designations in your Will and retirement accounts to consider this for tax benefits and more easy administration for your executor. The tax

benefits are something you should consider when meeting with your financial advisor or insurance agent as well as with your attorney.

We’re now on