Living below your means

With their research, the authors discovered the top one percent spend less of their money eating out. They also continue to live below their means, buying less ostentatious cars even when they can afford the more expensive ones. A recent article by USA Today offers retirees tips on drawing down their retirement funds. When you withdrawal your retirement money to live on, you lessen the powerful effects of compounding. USA Today recommends making a spending plan. If you withdrawal no more than 4 percent of your assets, you won’t outlive your retirement savings but you won’t have as much to leave for your beneficiaries. Living below your means makes a real difference.

Using different mind tricks

Wealthy people stick to budgets, but use different mind tricks to they create more wealth over time. Have money automatically moved from your checking to your savings account when you get a paycheck or a social security check. Re-invest dividends in your retirement and investment accounts so the stocks, mutual funds or exchange-traded funds continue to grow. Another idea is to use the “bucket system,” for budgeting. The authors found people who put money in jars even if they are fictitious jars designated for different expenses manage their money better and feel less stressed about budgeting.

Expecting setbacks in life

Super wealthy people don’t take self-responsibility for their actions. They don’t just let life happen around them, but plan for problems, obstacles and financial emergencies. The authors found extremely wealthy people know they make or break their own success, while poor people tend to think they just have bad luck. One of the great thing about estate planning is it lets you manage outcomes. In most cases, the outcome will be positive as you leave a legacy for loved ones, relatives and charities.

Sharing what you have

Another money habit shared by the one percent is the desire to help other people. Your estate plan can include donations you want to make to charities and to family members. The more money you have, the more you can help others through philanthropic causes.

If you don’t have a will or an estate plan, it’s important to get one in place. Many people feel surprised by how much their home appreciates in value and how much their retirement accounts grow. Meet with elder law and estate planning attorney Christopher J. Berry to set up a Michigan Retirement Plan Trust. Berry and the Elder Care Team will answer all of your retirement planning and estate planning questions so you can avoid probate and leave a powerful legacy. For more information about estate planning and protecting wealth, please contact us.

The post Estate Planning: What You Can Learn from the Very Wealthy appeared first on The Elder Care Firm.

Living below your means

With their research, the authors discovered the top one percent spend less of their money eating out. They also continue to live below their means, buying less ostentatious cars even when they can afford the more expensive ones. A recent article by USA Today offers retirees tips on drawing down their retirement funds. When you withdrawal your retirement money to live on, you lessen the powerful effects of compounding. USA Today recommends making a spending plan. If you withdrawal no more than 4 percent of your assets, you won’t outlive your retirement savings but you won’t have as much to leave for your beneficiaries. Living below your means makes a real difference.

Using different mind tricks

Wealthy people stick to budgets, but use different mind tricks to they create more wealth over time. Have money automatically moved from your checking to your savings account when you get a paycheck or a social security check. Re-invest dividends in your retirement and investment accounts so the stocks, mutual funds or exchange-traded funds continue to grow. Another idea is to use the “bucket system,” for budgeting. The authors found people who put money in jars even if they are fictitious jars designated for different expenses manage their money better and feel less stressed about budgeting.

Expecting setbacks in life

Super wealthy people don’t take self-responsibility for their actions. They don’t just let life happen around them, but plan for problems, obstacles and financial emergencies. The authors found extremely wealthy people know they make or break their own success, while poor people tend to think they just have bad luck. One of the great thing about estate planning is it lets you manage outcomes. In most cases, the outcome will be positive as you leave a legacy for loved ones, relatives and charities.

Sharing what you have

Another money habit shared by the one percent is the desire to help other people. Your estate plan can include donations you want to make to charities and to family members. The more money you have, the more you can help others through philanthropic causes.

If you don’t have a will or an estate plan, it’s important to get one in place. Many people feel surprised by how much their home appreciates in value and how much their retirement accounts grow. Meet with elder law and estate planning attorney Christopher J. Berry to set up a Michigan Retirement Plan Trust. Berry and the Elder Care Team will answer all of your retirement planning and estate planning questions so you can avoid probate and leave a powerful legacy. For more information about estate planning and protecting wealth, please contact us.

The post Estate Planning: What You Can Learn from the Very Wealthy appeared first on The Elder Care Firm.

Open up a dialogue

If you feel worried that your loved ones have unrealistic expectations about your estate, talk to an elder law attorney to draw up a retirement plan trust. When you sit down with your attorney, ask the specific questions you have about how to talk to your heirs and what kind of pertinent information most people share. If you feel comfortable doing so, ask your child or children to accompany you to see your elder attorney. According to CNBC, some older people don’t feel comfortable telling their children what kind of assets and how much money they are leaving.

Protect your assets

Asset protection is an important goal whether you plan to leave assets to relatives or just want to have enough to pay for your ideal end-of-life medical and health care as well as long-term care facilities. While you are living, you want the best qualify of life and care. When you pass away, you don’t want your assets eaten up through taxes and probate. The essential job of an elder attorney is to fulfill a client’s wishes by providing maximum protection from insurance and legal tools.

• Give while you are living

Some senior citizens rather give as much as they can while they are living. Some ideas for sharing wealth with loved ones if you are under age 59 and a half include taking up to $10,000 from a Roth IRA account to help pay for college or for a child or grandchild’s first home purchase. According to a piece by Kiplinger.com, you can take the money out penalty free. If you are older than 59 and a half, you can take out as much as you want from a Roth without incurring taxes. CNBC points out a lot of seniors do prefer to spend money on loved ones while they can see their money at work.

Encourage your child to save

One of the best favors you can do for your child who depends on your wealth is to refer them to your estate planning attorney for guidance. Whether your child needs to beef up contributions to a 401(k) or other company-sponsored retirement plan or contribute to a Roth IRA, an estate planning attorney will review their retirement plans. If you do pass away, your children could inherit your retirement accounts. An estate planning attorney will help your heirs figure out the best way to protect the assets.

Elder law and estate planning attorney Christopher J. Berry and the Elder Care Team understands that retirement planning is difficult but necessary. You and your children who depend on your wealth will find financial peace of mind with a Michigan Retirement Plan Trust. For more information on retirement planning and how to talk to your children about your estate plans, please contact us.

The post When Heirs Count on Your Wealth as Their Retirement Plan appeared first on The Elder Care Firm.

Avoiding sibling rivalry with Estate Planning

If you have more than one child, discuss the inheritance to prevent sibling rivalry issues. Some surprises are good, but others create tension and uncertainty. According to forbes.com, one important issue is who will be the executor of the will.

Clearing up any confusion

If you are fortunate enough to own several homes such as vacation or investment properties, don’t assume which children would prefer to inherit a certain property. An estate planning attorney will let you know how to handle a situation when one real estate property is worth more money than another. Also, you can guard against the problem of leaving a home to one child that you think will be worth more or less than it is worth in the future. Also, your children might have preconceived ideas about how much you are worth. The AARP cited a Fidelity Investments survey that showed children underestimated their parents’ estate by $100,000. In many cases, you could give your children greater peace of mind.

Avoiding probate and taxes

If you don’t want to put your children through the stress of probate, talk to an elder and estate planning attorney about ways to avoid probate with a retirement plan trust. One great way to help your children is to pay off your debts while you are living if you can. Also, you might want to simplify your financial situation by selling real estate in another state that you no longer need or want to include in the estate plan. Experts advise people who want to avoid estate taxes to start making lifetime gifts each year.

Explaining your intentions

Most parents and grandparents only want what’s best for their family. Explain your reasoning to your children or other beneficiaries. By having the difficult inheritance talk you can create more family harmony. The AARP recommends if you plan to distribute the inheritance unequally, just explain your reasoning. Some reasons might include the fact that one child earns significantly more or one child has many more children to care for in life.

While it might to tempting to try to control your children from beyond this world, experts caution against using an “incentive trust,” that stipulates what your children have to do in order to receive an inheritance. While incentive trusts make for a good storyline in a movie, it’s often counterproductive and leads to lawsuits that eat up your hard-earned money.

Christopher J. Berry, an elder law and estate planning attorney, and the Elder Care Firm, work hard to provide you with the answers you need for your estate plan. For more tips on how to talk to your children and their inheritance and how to set up a Michigan Retirement Plan Trust, please contact us.

The post Estate Planning: Having the Inheritance Talk appeared first on The Elder Care Firm.

Hiding all the facts

According to an article by desmoinesregister.com, the first step when estate planning for a second or third marriage is to open up the lines of communication. Experts say money is a major cause of stress as well as divorce. Start a marriage off right with full disclosure about estate planning, assets and your intentions.

Failing to update a will

A common mistake people make when remarrying is to not update the will. You should know if you are marrying a person who doesn’t have a will. Before you get married, consult with an elder law attorney. After you marry, go together with your spouse to update legal papers and beneficiaries as it relates to your assets.

Neglecting to ask questions

Another mistake people make when they remarry is assuming they understand a spouse’s will. Because legal language is often complicated, don’t be afraid to ask your elder law about language that seems ambiguous. If you have a blended family, you need to stipulate whether money will be left to your children, your step children, step children from a previous marriage or a combination.

Letting your spouse decide

Instead of letting one spouse make all the estate planning decisions, work as a team. One option to consider is a qualified terminable interest property trust which will allow your new spouse to live off your assets and stay in your house while still leaving an inheritance in tact for the children from a prior marriage. According to the desmoinesregister.com, a QTIP trust provides for your children from a previous marriage because it preserves the principal for the children. What’s more, the assets that go to a QTIP trust qualify for marital deduction so it reduces the estate taxes at your death.

Ignoring the wealth disparity

An elder law attorney in Michigan can also help you when one spouse is wealthier than the other spouse. When you even things out, it’s likely you can take advantage of important tax savings if the less wealthy spouse passes away first. Talking about estate planning is a sensitive topic for many couples, but it’s imperative to prepare.

If you decide you want a prenuptial before marriage or a post-nuptial agreement after marriage, talk to your elder law attorney. It’s important to understand the rights and responsibilities of marriage and what will happen if you divorce. Elder law attorney Christopher J. Berry and the Elder Care Team will work hard to review and adjust your beneficiaries to ensure your assets go to the heirs you want. You need a retirement plan trust that recognizes your special needs as a blended family. Christopher J. Berry will protect you with a Michigan Retirement Plan Trust that considers income tax and required minimum distributions ramifications. For more tips on estate planning for a second marriage, please contact us.

The post Estate Planning Mistakes to Avoid When Remarrying appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

Though Baby Boomers do focus on cash flow in retirement, planning beyond that with an estate plan is often not on their radar.

When it comes to finding the right long-term care facility for your parent, ideally your loved one is in a position to give input or has already provided input in the past. Still, as a child of a loved one who needs long-term care in Michigan, it’s important to evaluate the most recent information including the financial ability to afford certain facilities and which level of care is most appropriate. By sitting down with an elder law attorney before a health situation escalates, you will have greater peace of mind in making life-changing decisions. According to a report by Kiplinger.com, choosing a long-term care facility for a loved one is daunting. It’s never an easy decision to move someone you care about into a facility, but it’s often in the best interest of the senior citizen. If a doctor diagnosed your parent with Alzheimer’s, it’s vital to your parent’s safety and health that he or she gets the best care possible. Kiplinger cites a report by the Alzheimer’s Association that revealed 75 percent of those diagnosed with Alzheimer’s go into a nursing home by the time they reach age 80, which compares to 4 percent of the general population.

Taking the first step

The first step is to talk with your loved ones and doctors or other medical professionals about specific needs. Your parent’s medical providers will advise you on whether he or she needs assisted living to help with daily living activities such as bathing or dressing. Another level of care is “skilled nursing” for those with more complicated health issues or bedridden. Memory care is another classification of care for people dealing with dementia or Alzheimer’s disease.

Thinking about the future

Some people don’t want moved from one facility when they need assisted living and then to another part of town or different city when they need more intensive care. Your loved one can more easily keep the same friends by living in a senior living facility with an entire continuum of care. Some facilities have different floors or separate buildings for different levels of care. Also, talk to your parent about whether he or she would prefer some religious component. Whether it is a chapel services or a faith-based facility, a senior citizen will be happier to have spiritual options.

Crunching the numbers

Assessing what your loved one’s financial situation is easier when you have an elder law attorney with documents drawn up for your parent. Experts say the cost of a long-term care facility often ranges from about $3,600 a month to more than $10,000 a month. If your parent is a veteran, he or she could get financial assistance for long-term care from the Department of Veterans Affairs. Medicaid isn’t going to kick in until your loved one depletes his or her other assets.

Starting the search

Whether you want to stay in Michigan or go outside the state to find a facility is up to your family. However, many older people like staying in their home state to receive care so they are close to loved ones and friends. The eldercarelocator site lets you search for services for older adults. The site is a public service by the U.S. Administration on Aging. You can look up different topics such as Adult Day Program, Alzheimer’s Disease and Caregiver. After creating a list of different potential facilities, set up an appointment to visit in person. Experts recommend you pay close attention to the cleanliness and the way the staff treats people. Use all of your senses to gauge whether or not the facility is up to your standards.

Elder law attorney Christopher J. Berry and the Elder Care Team specializes in a Michigan Retirement Plan Trust. We can make sure your loved one has his or her financial affairs in order including money to pay for long-term care. For more information about choosing a long-term facility, please contact us.

The post A Go-To Guide for Choosing a Long-Term Care Facility for a Parent appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.