Advanced Care Planning

By
August 26, 2018
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There is one area of planning that gets glossed over, even by the many responsible people: long-term care planning. For so many, it is difficult to plan for something that seems so far removed from their current existence. Many also assume that their current health insurance or Medicare will cover most expenses associated with long-term care. Unfortunately, these mistakes leave them ill-prepared for the expensive reality.

As the US government estimates 70% of individuals who are currently 65 “will require some form of long-term care”.1 Therefore, this is more of an eventuality for most folks than it is a possibility. When an individual’s health starts to decline, hopefully, multiple levels have been put into place. Not only should you be concerned with who will care for you physically, you must all consider who will care for your finances.

Physical Care –The costs for long-term care can be surprising for many, with the average 65-year-old paying approximately $138,000 over his/her lifetime.2 As mentioned earlier, Medicare or private health insurance rarely covers all types and expenses of long-term care. Medicaid assistance varies by state and requires that an individual “must spend down his or her assets and meet other criteria.”3 Additionally, It is important to talk with your loved ones about long-term care options, not only about what one can afford but equally as important, what one prefers.

Ultimately, many end up paying for long-term care from their own finances – 50% according to the Bipartisan Policy Center report.4 To protect your finances and the finances of your loved ones, it is vital to prepare for these possible scenarios. There are many long-term care insurance policies that can provide you the assistance your particular situation needs. The premiums for these policies are much more affordable the younger you are. While some of these policies can get a bit confusing, a financial planner can easily go over these policies and help you determine which one would be best for your particular situation.

Financial Care – The key to financially protecting a client in declining physical or mental health lies in teamwork. The team, which consists of their financial team members (financial planner, tax professional or estate planning attorney), delegates and medical professionals. While we all continue to focus on our own particular role and duties, maintaining a professional relationship does give us the opportunity to share any concerning or unusual behavior concerning our client, as well as execute things quickly and as close to the client’s wishes as possible. Equally important is a Durable Power of Attorney (DPA), which legally allows an individual to designate someone to make financial and medical decisions on their behalf should they become mentally incapable to do so. Having these safeguards in place can save on time and hassle should health matters deteriorate and allow your delegate to focus on more pressing issues.

When so many of us pride our independence and self-reliance, declining health issues can be downright scary. I understand this well as I do my best to set my clients up for financial independence, so they can create the life they want to live. When circumstances step in and disrupt your life, it’s vital to know that you have people to rely on and safeguards to protect you.

1. https://www.usatoday.com/story/money/personalfinance/retirement/2017/11/17/retirement-planning-should-include-long-term-care-costs/866344001/

2. https://www.usatoday.com/story/money/personalfinance/retirement/2017/11/17/retirement-planning-should-include-long-term-care-costs/866344001/

3. https://www.consumerreports.org/elder-care/elder-care-and-assisted-living-who-will-care-for-you/

4. https://www.usatoday.com/story/money/personalfinance/retirement/2017/11/17/retirement-planning-should-include-long-term-care-costs/866344001/

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By
Jeff Motske, CFP®
March 19, 2018

Do you remember Veruca Salt, the spoiled rich girl from the movie Willy Wonka and the Chocolate Factory? You know, the girl who yells at her father, “I want it now!” And her clueless, abiding father would get her whatever she wanted, which consequently did more harm than good.

Well, we all have one of those fathers. Not the one that we buy a Father’s Day card for every year, but one that we carry in our wallet. One that typically says yes to whatever we want to buy, regardless of how that may spoil our budget, or worse, our credit score. It’s called a credit card.

Please understand, I am not calling you spoiled or demanding. However, in this instantaneous age, it’s very easy to spend impulsively or unconsciously. How many of us have gone to Target to purchase one or two items and ended up walking out with a full cart? How many of us have passed some idle time perusing one of our favorite online vendors, one who may even have our credit card information stored in their system? We may have had no intention to buy when we got on the site, but when we spot a good “deal,” it only takes a few quick clicks to make it ours.

You see, it happens a lot more often than you think. Study after study has shown that people will spend more money when they use credit cards than when they use cash, sometimes as much as twice the average cost for the same item1. Not only does the method of payment affect the quantity, it can also affect quality, with consumers willing to purchase unhealthy or unnecessary items when paying with a credit card as opposed to cash2.

The convenience of clicking or swiping to purchase, rather than handing over tangible cash, has spurred on overspending and racked up national credit card debt to $905 billion3. The truth of the matter is that we have lost sight of the fact that credit cards are essentially a thirty-day loan, which is becoming more and more apparent with the younger generations. Based on Experian’s Millennial Credit and Finance Survey Report Part II, 58 percent of millennial credit card holders polled in 2015 had maxed out a credit card, been charged a late fee, had an increase in the interest rate on a credit card, had a credit card declined or had defaulted on a credit card payment4. Financial behaviors like these can wreak a lot of havoc on a young person’s credit score and financial future. Such a small, seemingly innocent looking piece of plastic can do a lot of damage.

Now I am in no way advocating a credit-free lifestyle. Not only are credit cards a convenient way to build up your credit score, but many cards offer rewards programs where users can earn discounts, airline mileage and cash back. Most importantly, though, there are an increasing amount of vendors that no longer accept cash. This is not simply limited to online purchases. Have you ever tried leaving an airport parking lot or paying to access a toll road with cash? In most places, it is nearly impossible.

What I am saying is we need to start being a bit more mindful with our money, a bit more critical of how we spend. I mentioned the perks of credit cards rewards programs earlier. How many of us, though, have actually stopped to determine how much those perks really cost once you start adding up interest and impulse purchases? If switching over to cash purchases helps us become a bit more mindful with our money, then so be it.

Before you end up with a pile of debt and regret.

1. https://www.nerdwallet.com/blog/credit-cards/credit-cards-make-you-spend-more/

2. https://www.psychologytoday.com/blog/the-science-behind-behavior/201607/does-it-matter-whether-you-pay-cash-or-credit-card

3. https://www.nerdwallet.com/blog/average-credit-card-debt-household/

4. https://www.slideshare.net/Experian_US/experian-millennial-credit-finance-survey-report-part-ii

By Trilogy Financial
July 17, 2024

Estate planning consultants for high net worth families know that ensuring your financial assets are managed according to your wishes is crucial. At Trilogy Financial, we understand the importance of creating a comprehensive estate plan that addresses your unique needs and goals. Here are the critical elements of an effective estate plan to help you secure your financial future.

 

1. Will

 

A will is the cornerstone of any estate plan. This legal document outlines how you want your assets distributed and names an executor to oversee the process. A will can also designate guardians for minor children, ensuring their care and well-being. Without a will, your estate may undergo a lengthy and costly probate process, and your wishes may not be honored.

 

2. Letter of Intent

 

A letter of intent is a personal document that complements your will. While it is not legally binding, it can provide clarity and guidance to your executor and loved ones about your wishes. This letter can include details about asset distribution, heirlooms, and even funeral arrangements. Updating your letter of intent regularly ensures that it reflects your current wishes.

 

3. Power of Attorney

 

A power of attorney document allows you to appoint someone you trust to handle your financial and legal affairs if you become incapacitated. This person, often a family member or close friend, can manage your assets, pay bills, and make important decisions on your behalf. Understanding your state’s specific regulations can help you make informed decisions about this designation.

 

4. Health Care Directives

 

Health care directives are essential for addressing your medical needs in emergencies. Key documents include:

  • Living Will: Specifies your medical care preferences if you become incapacitated.
  • Durable Medical Power of Attorney: Authorizes someone to make medical decisions on your behalf.
  • HIPAA Release Clause: Allows medical professionals to share your health information with your designated proxy.

 

5. Estate Planning for Second and Third Marriages

 

Subsequent marriages add complexity to estate planning. Consider the following:

  • Prenuptial Agreements: Protect assets and provide clarity on ownership.
  • Updated Legal Documents: Ensure your estate plan reflects your new family structure.
  • Beneficiary Considerations: Update beneficiaries to include your new spouse, if desired.

 

6. Guardianship Designations

 

If you have minor children, naming guardians in your estate plan is vital. This ensures that someone you trust will care for your children if you are unable to do so. Consider naming a backup guardian as an additional safeguard.

 

7. Trusts

 

Trusts offer a flexible and private way to manage and distribute your assets. Benefits of trusts include:

  • Avoiding probate
  • Maintaining privacy
  • Providing effective asset management
  • Offering control over beneficiary distributions

 

8. Multi-Generational Wealth Planning

 

Multi-generational wealth planning is essential for ensuring that your financial legacy benefits future generations. This involves creating strategies that protect and grow your assets while considering the needs of your children and grandchildren.

 

9. Trust Fund Manager

 

trust fund manager plays a critical role in managing and distributing your assets according to your wishes. This professional ensures that the trust operates smoothly and that beneficiaries receive their designated assets without delays or legal complications.

 

10. Advanced Estate Planning Strategies

 

Advanced estate planning strategies are designed to address the unique needs of high-net-worth individuals. These strategies may include setting up complex trusts, charitable giving, and tax optimization techniques to preserve and grow your wealth.

 

11. Philanthropic Financial Planning

 

Philanthropic financial planning allows you to support causes you care about while benefiting from potential tax advantages. Discovering philanthropic financial planning opportunities can help you make a positive impact while strategically managing your estate.

 

The Takeaway –

 

Creating a comprehensive estate plan involves careful consideration of various legal documents and strategies. At Trilogy Financial, we specialize in estate planning for high net worth families and individuals, providing tailored solutions to meet your unique needs.

Our team of estate planning lawyers for high net worth families and high net worth estate planning attorneys are here to guide you through every step of the process. If you have questions or need assistance, please reach out to us. We are here to help.

 

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If you're ready to elevate your financial planning with our professional team, we invite you to schedule a meeting with us. At Trilogy Financial Services, our advisors in Corona are dedicated to crafting personalized financial strategies that align with your unique goals. Don't wait to start your journey towards financial success:

  • Schedule a Meeting: Reach out to us to arrange a one-on-one consultation with our financial professionals.
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