As recently as 2011, the Wall Street Journal reported that ten states had accused insurance companies of intentionally withholding unclaimed money from deceased policyholders’ families. In the same article, the WSJ wrote, “state treasurers currently hold $32.9 billion in unclaimed bank accounts and other assets.” Obviously, if people knew there was money to be claimed they would claim it. Failure to plan and organize affairs before the time of death, however, leads to confusion and sometimes a loss of everything you’ve accumulated over the course of your life. The passing of a family member is already overwhelming enough without the added pressure of sorting through files, papers, and storage containers

What to Store:

The more centralized the storage, the better. A great option is a portable fireproof safe. Be sure to include:

• List of insurance policies and company contact information.
• List of outstanding debts along with payments made and contact information.
• List of bank accounts.
• Copy of durable power of attorney and living wills.
• Copy of each of your wills with location of the originals.
• Copy of safety deposit keys.
• List of investments and retirement accounts.
• List of health providers, prescriptions, and doctors.
• Copy of social security number with an original in a bank deposit box.
• Birth Certificate, copy or original.

If you have things in more than one place, make a physically printed, or a flash-drive stored, list of the places your important documents are. Also, within this list, include a checklist of things you want your family to have access to so they know they aren’t missing anything when they do go over it. Give a copy or a flash-drive to those you trust or to be even safer, give the list to your lawyer who will share the information with your family in the event of your death.

Different types of Documents:

Maybe you know what each type of document does, but in case you don’t remember, here’s a quick reminder:

• A will or a trust allows you to dictate who your money/property goes to after you death. You’ll want to store an original copy in a very safe place, keep it with an attorney.
• A living will allows your medical wishes to be carried out if you are incapacitated. This allows you to decide on whether or not you’d want to be kept on life support, which takes tremendous pressure off of your family members if they ever find themselves in that situation.
• A durable power of attorney for health gives you the chance to name someone you trust to carry out medical decisions if you are unable to make them for yourself. There is also a legal version of the durable power of attorney, which allows someone to act on your accord if you cannot make your own legal decisions due to Alzheimer’s, dementia, or anything else that may happen.
• A general power of attorney gives your beneficiary the authority to act for you legally until you become unable to make your own decisions.
• Bank registration allows your spouse or child to access your bank accounts after you die along with any safe deposit boxes. This makes it more convenient because if their name is not registered with the bank they will need to go to court to gain legal access.
• House/land ownership deeds, stocks, bonds, vehicle titles, and mortgage accounts are self explanatory, but be sure to let your family know you own these things so they will not be overlooked. If they are unaware of these assets they may never find them.

Again, I know it’s hard to imagine the scenario of your death, but if your family depends on you financially, then the normal family grief could be turned into a financial nightmare. Owning multiple homes, cars, a large stock portfolio, retirement accounts, or bonds can make this process extremely difficult. The earlier planned the better. Preparation on your part will ensure your family is taken care of even after you’re gone.

Max Gottlieb is the content manager of both Prime Medical Alert and Senior Planning in Phoenix, Arizona. Prime Medical Alert allows seniors to age in place while Senior Planning offers free aid to seniors looking for benefits, new housing, or care options.

The post Organizing Affairs Before It’s Too Late appeared first on Michigan Estate Planning.

One of my pet peeves is when Michigan seniors are targeted with inappropriate investments–typically annuities and annuity scam schemes.  In other words, financial elder abuse.  I see it a bunch on the VA benefits side when a family is trying to help a veteran or surviving spouse qualify for the VA Benefit.  There are a ton of organizations that say they will help the veteran for free, but then sell them a high commission, hard to surrender annuity that makes no sense financial for anyone….other than the insurance broker who gets to pocket the 8-12% commission.

I had a client come into my office just in the nick of time, where they were going to move almost a million dollars into one of these ill suited annuities for his elderly father.  The annuity huckster, said that this was the only way dad would get VA benefits and that he had to buy the annuity.  That’s a load of bunk.

I had another client this year who had to pay $18,000 in surrender charges to get out of of one of these types of annuities because he need to pay for nursing home care for his wife.  Again, a Michigan senior sold an inappropriate product by an insurance broker.

Where to Get VA Benefits Information?

The devious part is that often, these insurance peddlers pass them self off as being VA Benefits experts or even worse, they pretend they are associated with the VA.  Many times they will have a VA logo on their card.  This confused not only seniors, but also assisted living communities and independent living communities.

My recommendation is to find a VA Accredited Certified Elder Law Attorney to review any VA Benefits questions that you may have.  A VA Accredited Certified Elder Law Attorney owes you a duty to act in your best interest, versus an insurance broker, who is really just a salesman of insurance products.

Investment Scams Targeting Metro-Detroit

What started this blog post was an article I read in the Wall Street Journal talking about insurance brokers and investment advisors targeting seniors with inappropriate investment products. Read more in the WSJ.com article here.  The article talks about the desperation some brokers go through and how they put their ethics and business on the line to lure seniors.

Fighting Back Against Financial Elder Abuse

Take a look at the article, let me know your thoughts.  If you’re a senior or have a senior loved one who has been taken advantage by a desperate broker (this could be construed as financial elder abuse), contact our office and we may be able to assist you.

Our office has engaged in education against financial elder abuse, where every year we help organize Michigan state wide initiative to provide education across all the senior centers in Michigan warning seniors and their families against this type of practice by desperate brokers and insurance salesman.

The post VA Annuity Scams, Bad Brokers, and Targeting Michigan Seniors appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.