Scottsdale Probate Law Blog

At some point almost all of us have sought out financial advice in some form or another. We have likely sought out guidance from a family member, friend, or a financial professional. Sometimes we are just looking for someone to bounce an idea off of, or maybe seeking someone who has more expertise than we do with more complicated financial tools. Just like decision making in non-financial situations, two heads are almost always better than one.

But some seniors also reach a point when the scope of assistance they might require may be different. There comes a time when they need not only advice to become better informed, but also because their judgment in reference to financial matters may not be all that it used to be. If they do not have the advantage of assistance once they need it there is a risk that they may become the victim of financial exploitation, or just that something may be overlooked.

A recent case of abuse perpetrated against an elderly man who was a survivor of Pearl Harbor is an illustration of the need for responsible conservatorship to help ensure that the elderly are not taken advantage of. A conservatorship is appropriate when an elderly individual can no longer manage their life and assets on their own. This allows for a responsible individual to help ensure that the elderly person is not the victim of financial fraud.

A recent news article highlighting the case of a 93-year old Pearl Harbor survivor demonstrates goes to show just how vulnerable the elderly really can be. The victim, after losing his wife, was no longer able to care for himself and sought the services of an in-home caretaker to live with him. The caretaker was later charged with a number of counts of fraud, and may face charges in the death of the elderly man.

There are still a few things in life that can last a lifetime. A solid set of hand tools purchased decades ago are likely still great performers if properly maintained. Heirloom quality furniture is always in style even when it outlasts its original owners. It seems to be increasingly true that most things will need to be updated and replaced. Televisions and radios seem to be designed to last only a few years before they malfunction.

A good way to think of an estate plan is like the trusty set of hand tools. It can last a lifetime but it must be properly updated and maintained. The estate plan that you may have created 25 years ago may still be serviceable but to be effective and useful it should receive some occasional attention, just like the tools must occasionally be oiled and sharpened.

During your estate planning process, you can prevent some of your income from being taxed by donating it to charity. This good deed, whether you donate to churches or your favorite charity, are generally considered monetary gifts, or tangible property.

Depending on your unique financial and situation and goals in the estate planning process there may be ways to reduce or eliminate estate taxes through the combination of estate tax exemptions and charitable deductions. Navigating charitable giving to best protect your assets can initially appear confusing, tax laws are complex. But the government regularly encourages charitable gifts following someone's passing.

Too often in life we are faced with missed opportunities and diminishing returns, times when if we had a chance to get in on an investment on the ground floor it would have been a great idea, but now it, would not be as beneficial as it would have been earlier. Rare are the projects or plans that become a better idea as each day passes. Estate planning works this way though, while it would have been an important thing to take care of yesterday, it is even more important today.

As we move forward through our lives, ideally we accumulate more and more assets, our family grows and our estate planning needs become obvious and more intricate. While it is a good idea to have an estate plan at every point in your adult life, often the first real motivator for a person or couple is when they have their first child. It suddenly becomes a question of not just what will happen to your car and savings account, but who will take care of the welfare of my child, and how will the child be provided for.

Less than two years ago, Congress enacted the Elder Justice Act on a bi-partisan basis. It recognized that elder abuse was a growing concern that required attention. This is especially true during the holidays. Studies have shown that elder abuse, including financial abuse, rises during the holidays.

The Elder Justice Act only utilizes authorized funds. In order for elders to be properly protected, Congress must pass a second bill to put the law into action. Just before Congress adjourned for the holidays, it passed a spending bill that covers the rest of the fiscal year. This spending bill did not provide funding for the Elder Justice Act. This is the second year in a row that the President asked for funds for the Elder Justice Act, and the second year that Congress ignored the President's request. This year, he asked for $21.5 million in startup funds for the Act.

Anyone paying attention to the status of gift and estate taxes over the last decade knows that the federal government has created some opportunities for asset protection but at the same time done little to increase the amount of certainty individuals can have as they prepare their estate plan. For the New Year, the $5 million exemption from estate taxes that was in effect from last year remains in place. This after the there was an unlimited exemption in 2010.

At the end of 2010 when the unlimited exemption was set to expire, had the federal government done nothing, The prior law, which allowed for only a $1 million exemption would have gone effect. Looking forward into this year we have a similar situation, if Congress fails to pass a new exemption we will return to the $1 million exemption limit.

Any estate planning expert will tell you that there is no one, fool-proof way to go about this important process. This is mainly because families do not always stick to one specific blue print.

Many people might think that what is known as an "I Love You" will is sufficient for any family at any time. While this is a very general form of a living will, even the slightest wrinkle to a traditional family dynamic could throw a wrench in the agreement.