Blended Families: Estate Planning Gets a Lot More Complicated

If you’re one of the millions of Americans who has divorced and remarried, you know that estate planning with your blended family gets a lot more complicated. Without a carefully crafted Will or Living Trust, your children could unintentionally be disinherited.

The stakes are higher for those who’ve remarried

There’s a lot more at stake the second or third time around. You’re older, and there’s a greater chance that you’re bringing assets into the marriage–retirement savings, life insurance policies, brokerage accounts and real estate that you want to protect. You may also want to ensure your children receive family heirlooms or mementoes that may or may not have monetary value but can be the source of family discord.

A reality check from a financial planner

Think about this one: If you’re both on a boat that goes down and you’re lost at sea, can you trust the two sides of the families to get together and carry out your wishes? If the answer is somewhere between “not sure” and “unmitigated disaster”, you need to carefully develop an estate plan that will provide for your spouse and each set of children.

What to be thinking about as you and your spouse plan for your blended family

Naming—and updating–account beneficiaries

When people remarry, it’s easy to overlook the necessity of updating the beneficiaries on retirement accounts and life insurance policies. These account designations supersede whomever you may have listed in your Trust. You can name your daughter Joan as the beneficiary of your life insurance policy in your Trust, but if you still have your ex-wife named on the policy, she’ll be the beneficiary.

When it comes to retirement accounts, your (new) spouse will most likely be the beneficiary. If you predecease that spouse, those 401(k) assets become hers–which may not include passing any money on to your kids as you may have planned. Let’s say that someone has $500,000 in a non-retirement account and adds his new wife to his account with rights to full ownership upon his death. If he wanted to leave part of that money to his kids, he didn’t do it.

Your home and the property’s title can make a big difference

Remarriage often includes a jointly owned home. Depending on how the property is titled, your wishes to have your children inherit your share of it could be upended.

In most states, including California, if a property is deeded as “joint tenancy with right of survivorship”, when one spouse dies, the property automatically belongs to the surviving spouse—regardless of what your Will states. If you own the house in “tenancy in common,” you can leave your share to someone other than your spouse. This is your chance to leave your home to your children.

Detail the distribution of items with sentimental or monetary value

If you want your children to receive specific items when you die, it’s important to be as specific as possible so there is no room for individual interpretation. These items may or may not have monetary value. When Robin Williams died, he left his $50M estate to his three kids and his Tiburon home to his current wife. Unaccounted for was the significant collection of awards, accolades and memorabilia that were in his wife’s Tiburon home. His children subsequently sued for those items, many of which had limited monetary value. Detailed estate planning minimizes this kind of family turmoil.

For young adults: A Living Trust that’s the beneficiary of a particular asset

If you want your kids to receive money but don’t want to give a young adult — or one who is a chronically poor money manager — unrestricted access to a sudden windfall, you can create a Trust to be the beneficiary. The Trust will hold assets on behalf of your beneficiary; it becomes a legal entity, as dictated by the documents creating it. The assets go into the Trust rather than directly to your heirs. You can identify the conditions under which the beneficiary will receive money.

Communication: Have that talk with your kids

Discuss your financial landscape with your blended family. Managing expectations helps avoid conflict. If you and your spouse intend to fully enjoy your retirement, it will leave less money for the family. Let them know that their inheritance will likely be significantly reduced.

Other considerations: Create a Living Trust

At California Document Preparers, our Living Trust package includes a Power of Attorney and an Advance Healthcare Directive, critical parts of long-term planning. The people you name will be responsible for making important healthcare and financial decisions for you if you become incapacitated. Think carefully about the people you name as your agents—they should be accessible, people you trust to follow your wishes, regardless of their own views. Schedule an appointment today by contacting us at one of our three Bay Area offices. Our dedicated team is helpful, compassionate and affordable.

Facebook’s in the News Again: This Time for Age Discrimination

Many employers have been happily leveraging Facebook’s detailed demographic data to target exclusively younger candidates in their job ads. The result? Once again, Facebook has found itself in the headlines for all the wrong reasons.

In this case, the company was the focus of an age discrimination lawsuit

These detailed data fields completely excluded older applicants. Facebook has reached a settlement, and the company will stop letting employers target ads focusing on younger candidates. The agreement is a victory for older workers—those who may never have known that technology was being used to discriminate against them.

Facebook’s rich data fields are now the source of their problems

Facebook’s extensive data collection is one of things we love about this application, but it’s the subsequent use of that data that has backfired on them. Facebook was permitting advertisers to direct ads only to those who fit certain demographic features. If an employer wanted to hire candidates under 40, Facebook would show the job posting only to those who fell within that range. Those whose profiles showed they were 40 and older were unaware the ad existed.

Advertisers microtargetus according to the data we provide

Think about it: Every time you fill out a field on social media, you’re helping advertisers “microtarget” you. The more information you provide, the more valuable your demographic profile—especially if you’re on the higher end of the scale in terms of earning range, education level, location and job title. The cumulative worth and mismanagement of these rich data fields are the reasons Facebook and other tech companies are finding themselves in hot water.

California is getting serious about information accountability

Mismanagement has brought the power of data to the attention of the public and Congress. Beginning in 2020, new privacy laws will go into effect. In the event of a data breach, for instance, consumers will be able to sue for up to $750 for each violation. The law also gives the attorney general the right to pursue companies for intentional violations of privacy.

The ADEA protects those 40 and older from discrimination

The federal Age Discrimination in Employment Act (ADEA) protects people ages 40 and older from discrimination in employment. “It’s crucial that microtargeting not be used to exclude groups that already face discrimination,” said Galen Sherwin, senior staff attorney at the American Civil Liberties Union (ACLU), one of the groups involved in the lawsuits. “We are pleased Facebook has agreed to take meaningful steps to ensure that discriminatory advertising practices are not given new life in the digital era, and we expect other tech companies to follow Facebook’s lead.”

Facebook: Ads prohibited from targeting by age, race, gender and sex

Facebook said it will build a new section on its site for companies that want to advertise for jobs and housing. In this section, companies will be prohibited from targeting ads by age, race, gender or any other legally protected characteristic. Facebook also agreed to permit the ACLU to monitor the site for three years to make sure that it fully implements the changes in the settlement. The investigative journalism website ProPublica, which was instrumental in revealing Facebook’s advertising practices, is reporting that Facebook also will pay the plaintiffs $5 million, which largely will be used to pay legal fees.

Data has become a huge business, and many believe it requires more stringent regulation. While Facebook has been the most visible company to be involved in data breaches, it’s not the only company that has been profiting from its sale. It’s the one that got caught.

Facebook CEO Sheryl Sandberg commits to doing more to prevent discrimination

“These changes mark an important step in our broader effort to prevent discrimination and promote fairness and inclusion on Facebook. But our work is far from over. We’re committed to doing more, and we look forward to engaging in serious consultation and work with key civil-rights groups, experts and policymakers to help us find the right path forward.”

California Document Preparers assists our clients in the preparation of legal documents inuncontested legal matters, including Living Trusts, an important part of estate planning. Our Trusts include a Power of Attorney and Advance Healthcare Directive. Schedule an appointment today by contacting us at one of our three Bay Area offices. Our dedicated team is helpful, compassionate and affordable.

Drowning in Data, Yet We Can’t Get Our Own Medical Records

Oliver was visiting his son in San Francisco when he had a seizure. He was hospitalized at one of the area’s premier medical institutions where he underwent testing and treatment. Oliver had had a stroke several years before, so as a precaution, he always carried his medical records when he traveled.

Oliver is still waiting for his medical records

When Oliver returned home, he contacted the hospital to get his treatment records. After months of communications, a package with medical records finally arrived. Impossibly, they were his original records—the ones he had provided when he was hospitalized. Years later, he still doesn’t have the records from his California hospitalization.

Federal law guarantees the right to see and obtain a copy of our medical records

Even in this digital information age, medical records can be difficult for patients to get. But they shouldn’t be: Federal law guarantees that people have a right to see and obtain a copy of their medical records.

A Yale University study reveals barriers to accessing records

In a Yale study, researchers called the hospitals and asked how to get records, the associated cost, how long it would take, the format in which information would be sent and whether the entire record would be available. “The unfortunate truth is that the system doesn’t give patients reliable or consistent responses,” said Dr. Harlan Krumholz, co-author of the study and professor of medicine, epidemiology and public health at the Yale University School of Medicine.

HIPAA guarantees patients’ rights to their medical records

Under a groundbreaking law, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), patients have a right to get some or all of their medical records upon request. (Psychotherapy notes can be excluded.) Hospitals, medical clinics, physician practices, pharmacies and health insurers are required to make this information available within 30 days, at a reasonable cost and in the format that patients request, if possible.

The benefits of being able to review medical records

Research suggests that reviewing medical record scan be beneficial on several levels. Studies show that people are more likely to follow treatment recommendations, remember what happened at medical visits and feel engaged in their care when they have access to this information.

But HIPAA requirements are often misunderstood

Jacqueline O’Doherty, a New Jersey geriatric care manager encountered problems when she tried to see records for an 80-year-old client who was being transferred from a hospital to a nearby rehabilitation facility.

Although the older woman had signed a form appointing O’Doherty as a “designated representative” — a status that should have allowed O’Doherty access to her clients’ records — a hospital nurse refused to let O’Doherty check the client’s lab results, medication list and discharge summary. It was only when an infectious-disease doctor intervened, citing the need for continuity of care, that O’Doherty was able to review her client’s records.

New guidelines from the Office for Civil Rights of HHS

After receiving a large volume of complaints about records’ cost and accessibility, the Office for Civil Rights of the U.S. Department of Health and Human Services, issued new guidelines in January 2016.

• For electronic records, the guidelines prohibit per-page charges and recommend a maximum cost of $6.50 for consumers.
• They also clarify patients’ rights to have records sent to third parties, including family members or professionals advocating on their behalf.

Despite these protections, the forms used to request records aren’t standardized and can be confusing

Problems may be even more common at physician practices, which often don’t have medical records departments. When GetMyHealthData, a campaign to expand access to digital health information, asked consumers about their experience, people described poorly informed or unhelpful staff, high fees, long waits and frustrating bureaucratic processes.

Electronic patient portals don’t solve the problem

Many of us are familiar with our healthcare systems’ patient portals, and theoretically, this is where we should be able to obtain comprehensive information. Yet most contain limited information and don’t include a way for patients to request records such as the notes physicians take during patient visits.

MyHealthEData Initiative is focused on improving access to medical records

The government is making improved electronic access to medical records a priority through MyHealthEData Initiative.

Become your own advocate to secure copies of your medical records

If your hospital or doctor’s office declines to make your records available, print out materials about your rights and use them to advocate on your behalf. Tell staff, “I’m entitled to a copy of my records: This is my legal right, as explained here.”

Resources:

• A good resource is amodel medical records release form created by the American Health Information Management Association. Copy and take this with you to help make your case.
• To familiarize yourself with your rights, review the Guide to Getting & Using Your Health Records, published by the government’s Office of the National Coordinator for Health Information Technology.
• Do review the Get Your Data section of the GetMyHealthData website, which includes a clear summary of your rights, how to request your medical records, and troubleshooting suggestions if you encounter obstacles.

California Document Preparers assists our clients in the preparation of legal documents in uncontested legal matters, including Living Trusts. Our Trusts include a Power of Attorney and Advance Healthcare Directive. Schedule an appointment today by contacting us at one of our three Bay Area offices. Our dedicated team is helpful, compassionate and affordable.

An Emotional Journey for a Daughter, a Mother and the Memory Care Unit

While Marilyn Friedman had always dreamed that one day she and her mother would have a closer relationship, it was not to be. Her mother had dementia. She forgot the word for “dog.” She got lost on the way home from the grocery store. She experienced hallucinations of flashing lights at 2am and strangers in her bedroom. She stopped eating and lost 20 pounds in a month. She’d fallen several times, could no longer write a check or drive. When her doctors recommended 24-hour care, her mother rejected it. This is the story about a family, their mother’s dementia and the memory-care unit.

In a New York Times article, The Dementia Heist, Ms. Friedman tells the heartbreaking story of caring for her mother. In this story, Ms. Friedman and her sister resorted to tricking their mother to get her into the memory-care unit. They hid in the back of a car and watched a paramedic escort their mother into the facility.

She felt like the worst daughter ever, yet she was doing the most caring thing

Ms. Friedman reminded herself that her mother had had a hard life. At 27, she fell from a train, shattered her kneecap and nearly died from gangrene. Friedman’s parents had abandoned everything when they immigrated to the U.S. from Russia in 1964. Mother-daughter relationships are often complex, and they can be volatile and unpredictable. For the Friedmans, good moods meant blueberry blintzes and movies; bad moods resulted in an endless cycle of slaps.

The sisters toured memory-care facilities

“My sister worked hard to enable mom to remain at home, but she couldn’t juggle my mother’s multiplying needs with those of her own family. Our choices were to let her die alone from starvation or trick her into memory care.”

The sisters toured memory-care centers, where cost is based on the level of care. They found a facility with a B&B vibe and patient staff members who gave lots of hugs. They signed a 40-page contract making their mother liable if she injured another resident or destroyed property.

Next up: Getting mom admitted to the facility required “therapeutic lying”

The sisters had her admitted to the hospital, blaming her high blood pressure. Professionals call it “therapeutic lying” because honesty can increase anxiety. Once she was in memory care, the sisters couldn’t contact her for ten days—an effort to help her adapt. They did, however, get reports: Mom wouldn’t sleep in her room; rather, she parked herself in the lobby all night.

Their mother’s belligerent behavior continued in her new environment

She refused to eat. If she kept starving herself, she’d be sent to a more depressing, regular nursing home. She refused medication because the pills were making her lose her memory. The staff hid meds in her food, but she resisted her glaucoma drops, risking blindness. When finally allowed to visit, Ms. Friedman found her mother belligerent, insisting that her daughters take her home. They resisted for a number of reasons.

Understanding that the last chapter of her mother’s life would be painful

“We ate cake at a courtyard table beside a classic convertible. She complained that everyone there was crazy, so we changed topics–another strategy for dealing with dementia patients. This next chapter of her life would be painful. My only hope was that she’d become enveloped in a pleasant memory.”

Testamentary capacity is a growing legal concern

Testamentary capacityis the legal term defining a person’s legal and mental ability to make or alter a valid Will. With the increased occurrence of some kind of dementia, the matter of testamentary capacityis being raised more frequently when it comes to signing legal documents. In every case, capacity is specific to each time and situation. Legal capacity can fluctuate. In terms of the law, there is a presumption of capacity until it is disproved. If you have legal documents that need to be signed by someone who has been diagnosed with dementia, it’s important to do this as soon as possible. Most important are a Living Trust, a Power of Attorney and Advance Healthcare Directive.

Five Steps to Funding Your Living Trust

We encourage all of our clients to create a Living Trust so their families can avoid Probate. Unfortunately, there’s one critical step that sometimes gets left out of this equation and leaves families vulnerable to Probate. Simply having a Trust is not enough; Living Trusts need to be funded–your assets need to be moved into the Trust. Without this action, your family will likely be facing Probate. There are five steps to funding your Living Trust.

A Trust has five asset categories that can be funded:

1. Real property
2. Bank and brokerage accounts
3. Life insurance policies
4. Retirement accounts
5. Tangible personal assets

1. Real property—property that is fixed in place

Real property is a building or a piece of land, designated by a Deed. When a Trust is formed, the owner listed on the Deed must change the name from the name of the person to the name of the Trust. If James Smith owns a house, and the house is in his name, he must transfer the Deed into the Trust, and the “Living Trust of Jonathan Williams” becomes the new owner. This must then be registered with the county for the Trust to be funded. California Document Preparers prepares Trust Transfer Deeds for our clients who are funding their Trusts.

2. Bank and brokerage accounts

Creating multiparty bank accounts can seem like a convenient solution for those caring for ailing family members, but it can create family conflict. If that ailing family member dies, all of the money in that account defaults to the person whose name was also on the account. If, for example, there are other siblings who expected to inherit some of that money, it can result in family discord.

In most cases, you will want the funds to go to multiple persons or organizations. Putting the accounts in the name of the Trust will ensure that funds can be transferred easily to all parties specified by the documents of your Trust. For example, if you want your Procter & Gamble stocks to be divided equally among your three children, you will need to put them in the name of the Trust. Each bank and brokerage has a procedure for this and will be able to assist with transferring the account name to that of the Trust.

3. Life insurance

While you can state in your Trust that your life insurance policy will go to your oldest daughter Joan, it’s important to know that the beneficiary noted on the actual policy is the beneficiary of record—not the person named in the Trust. Joan will not inherit that policy if she’s not named on the policy. If divorce or death means a change to your beneficiary designation, it’s imperative that you make this change to the life insurance policy itself—not your Living Trust.

4. Retirement accounts

Retirement accounts, like life insurance policies, specify a designated beneficiary. For married couples, this is typically one’s spouse. Where retirement accounts can get problematic is in naming their alternate beneficiary. A Trust is often a very valid choice for this secondary designation. Having one’s retirement account go to the Trust, to be distributed according to Trust specifications, can be a safe way to avoid Probate and ensure that your assets are distributed according to your wishes.

5. Tangible personal assets

Tangible assets that need to be included in your Trust include valuable jewelry, artwork, furniture, cars, etc. These items can be placed in a Trust through a Deed of gift or a bill of sale. The Deed of gift or bill of sale is necessary to “fund” the Trust with these items. Items that are high in value will have to go through Probate if not properly placed in the Trust.

One more thing: Identifying the distribution of sentimental items

If there are items that have nominal monetary value but significant sentimental value, these should be identified in a Trust along with their respective recipients. When Robin Williams died and left much of his estate to his second wife, his children sued to get the memorabilia that they believed were rightfully theirs. The more detail you provide, the more seamless the process of settling your estate will be for your family.

A Living Trust is an important part of estate planning. Without it, your family will be facing Probate. A Trust also needs to be updated with important life events—births, deaths, important purchases of property and other assets. Schedule an appointment today by contacting us at one of our three Bay Area offices. Our dedicated team is helpful, compassionate and affordable.

The Real ID: Are You Ready for the 10/20 Rollout?

Beginning Oct. 1, 2020, if you want to travel within the U.S. on a domestic–not international—flight, you will need the driver’s license/ID card known as a Real ID. Haven’t heard of the Real ID? Get in line. It’s part of enhanced efforts to improve national security. Each state is responsible for their Real ID rollout, and in many cases, it’s being met with confusion and anxiety.

The Real ID was conceived in 2005, part of post-9/11 legislation

The Real ID requires people to show security-enhanced IDs to pass through airport security checkpoints or to enter certain federal facilities. Note that you can also use passports and certain other federal documents as alternatives to a Real ID.

Also called the Star Card because most states are marking their Real ID cards with a star in the top right corner, it also must include an encoded “machine readable zone,” with a person’s scannable information. What differentiates this card is that the government requires you to provide more documentation than what you provide to get a driver’s license.

What you need to know about getting a Real ID:

• Getting a Real ID requires a trip to the DMV. You’ll need documents proving your age, Social Security number and address. Bring a birth certificate or passport, a Social Security card or tax form such as a W-2, and two proofs of address. If you’ve changed your name through marriage, you’ll need a marriage certificate.
• Your old-style driver’s license is still lawful for driving and still available as an option. However, if you plan to fly after October 1, 2020, you driver’s license won’t be enough to get you through security and onto a plane. You will need a Real ID or a passport.
• Real ID remains a work in progress. Twelve states have yet to issue them. Other states have been issuing Real ID cards for several years now with little fanfare. Some are using them with a fair amount of confusion.

Those concerned about privacy issues should know that each state maintains its own records

Many states have delayed getting the cards into circulation because some residents and legislators worry that the Real ID is a way for the government to collect personal information for a national database. People from all states should be reassured that the program is a state-maintained card. There’s no national database. Each jurisdiction maintains its own records, and controls who gets access to those records and under what circumstances.

Paperwork problems can also cause delays

For some people, getting the proper paperwork is a problem; their birth or marriage certificates may not actually be from the state in which they live and, therefore, they do not have sufficient information. In Maryland, residents who are 65 or older are allowed to submit other documents, such as military discharge paperwork.

Real ID: Look for a more aggressive information campaign

Many people remain unaware of, or are simply confused by, the new card’s rules, and the clock is ticking. I was aware of the card only because I renewed my license last fall. I didn’t have the necessary documentation with me to create a Real ID, and I had very little interest in making another trip to the DMV. Because I travel internationally two or three times/year, my passport is always current, and this solution is fine for me.

The Department of Homeland Security has called on travel agents as a way to reach consumers and increase the number of Real ID-compliant users. Look for more public service announcements as they step up their public education campaign.

How to expedite the Real ID card process in California

• Make an appointment at your local DMV. It’s not required, but you want to take advantage of anything that will make your experience with the DMV easier.
• Complete the online application prior to your visit.
• Review the list of documents that you’ll need to take with you to verify your identity, to include social security number and California residency.
• Pay the application fee of $31.

California Document Preparers assists our clients in the preparation of legal documents in uncontested legal matters, including Living Trusts, an important part of estate planning. Our Trusts include a Power of Attorney and Advance Healthcare Directive. Schedule an appointment today by contacting us at one of our three Bay Area offices. Our dedicated team is helpful, compassionate and affordable.

What Happens When You’re Ready, But Mom Doesn’t Die?

Meet the Yin family. At 83, mom was weak and ill from stage IV lymphoma and atrial fibrillation. She’d gone through exhaustive chemotherapy and she’d run out of options. Yet it was still a surprise when the doctors told the family that she had fewer than six months to live and it was time to consider hospice care. Read about what happens with the Yin family. They were ready, but Mom doesn’t die.

Most concerned about extended suffering and loss of control

What Mrs. Yin feared most was pointless suffering and the loss of control over her own life. She wanted her kids to understand that, if she had little hope of recovery, she’d rather go quickly than die slowly and painfully. Her son wanted to pursue every possible option to keep their mother alive.

Her daughter supported their mother’s pragmatic right to die on her own terms

The daughter remembered when their grandmother died. “We sat by her bed and told family stories as she slipped into unconsciousness. We drew close to one another and time seemed to stop. We held her as she took her last breaths, letting her know how much we loved her. It taught me that dying well can be a natural experience.”

Together, the family agreed on a trip to New York’s Sloan Kettering for a comprehensive diagnosis. After some tests, Mrs. Yin’s blood pressure dropped dangerously low, and she was admitted as an inpatient. By the next day, she could hardly breathe, and a doctor activated her Do Not Resuscitate Order (DNR).

Then, back from the brink . . .

A hospice nurse, who is uniquely trained for just this kind of situation, checked on Mrs. Yin and came back to tell the family that she didn’t think their mother was going to die that night, the next night or maybe for weeks. The family reversed the DNR and doctors initiated treatment.

Over the next month, the hospital’s medical teams worked together to bring Mrs. Yin back to relatively good health. She was transferred to a rehabilitation center for another month, then came to live with her daughter’s family in Brooklyn. She and her daughter fulfilled one of her longtime dreams. They edited and self-published her memoirs, which she’d been writing for years.

Mrs. Yin still wrestles with neuropathy, shortness of breath and sometimes crushing fatigue, but she is very much alive. She’s been living on her own for the past two years and still enjoys a very good quality of life.

The power of the family’s collective decision-making

In retrospect, the family reflected on their mother’s care and their own roles in the treatment process. “We made better decisions because we listened to one another and weighed all the conflicting information. My mother acknowledges that she wanted to “pull the plug” too soon because she became overwhelmed by fear.

No one thinks clearly or acts well when gripped by panic

This story by Monona A. Yin, in The New York Times, pointsout the need to start talking long before the end. We need to have open dialogs with our families about what constitutes a good death and when a diminished life is no longer worth living.

Creating a Living Trust is an important part of life planning. Without it, your family with need to go through Probate. Our Trust package includes a Power of Attorneyand Advance Healthcare Directive. Schedule an appointment today by contacting us at one of our three Bay Area offices. Our dedicated team is helpful, compassionate and affordable.