Pre-planning means that you as the spouse, child or family member, take the time necessary to make the right choices, and involve your loved one in helping got make the decisions. This is often not the case when a nursing home needs to be found immediately after an illness or injury. Instead of dealing with the stress of being in crisis while trying to make life changing choices, pre-planning with an elder attorney in Charlotte affords the time to get the information you need and to think clearly.

When pre-planning for nursing home care, there are 3  important questions to ask:

1. Will a nursing home be the right choice? There are other options available depending upon the situation, and rather than “settling” for the obvious choice, pre-planning allows you to explore them. It may be possible for your family member to remain at home with a health-care aide or to move into an assisted-living community.

2. Is it difficult to get a family member into a nursing home? By pre-planning with an elder care attorney in Charlotte you can familiarize yourself with the process and go through the steps in a logical manner, rather than rushing to find an opening and being overwhelmed. The admission process, negotiating costs, and dealing with an estate all take time and energy, and you will likely handle it much better without being in the midst of a crisis.

3. How do I find the right nursing home? Your elder care attorney will likely have some great suggestions for you, as will your loved one’s doctors, social workers, and other health care professionals. Once you’ve compiled a list of recommendations, go visit in person and plan to meet with the director. If possible, your family member can be a part of this process, ensuring a better fit and more cooperation later on down the road. I would also suggest making a surprise visit after your initial scheduled visit. Many of us tend to be on our “best behavior” when we know something is going to happen. A surprise visit may afford you a clearer more realistic impression. Also, you should take the time to speak with the residents. Who better to provide you with the day to day activities than someone who is living it day to day?

Due to the Nursing Home Reform Act, there are a number of duties that the facility will be bound to perform. Working with an experienced elder care attorney in Charlotte, North Carolina will ensure that you know your rights, as well as the responsibilities of both the family and the nursing home you choose.

Your small business is a part of your estate, and just like yoru home and other assets, planning need to be done for how it should be handled upon your death.  You’ll want to go voer youroptions with a qualified Charlotte wills and estates attorney and make them legal and binding through the proper documentation. Of course, you will also want to communicate with those individuals who will be charged with executing your wishes and keeping the small business running smoothly.

Unfortunately, the death of a small business owner can also spell the death of the business.  Estate taxes can be so expensive that hte business just cannot survive paying them.  Within nine month of your death, taxes will be due to the IRS.  It is pretty hard to imagine a small business surviving the loss of a large portion of its’ value.

Laws like this play a role in the fact that small businesses do not typically survive through the generations.  According to The Small Business Review, only aobut 30% of family businesses make it to the second generation, 12% to the third generation, and 3% to the fourth generation.  Obviously, there are a number of factors involved, but the need to pay taxes and take care of other transitional costs create a significant burden in passing a business on to heirs.

By planning in advance, you can take advantage of Section 303 and Section 6166 of the tax codes.  These breaks do things like limit taxes on your heirs’ stocks and to allow for the estate tax to be paid over the course of 15 years, respectively.  Of course, these tax breaks are best utilized when they are understood in advance and the small business owner has made plans for their implementation.

One way that people use charitable trusts is to set aside assets to produce income while they are alive, with the remainder going to charity when they pass away.  This allows them to receive tax benefits while they are still living from a gift that will be made when they die.  In this scenario, both the donor and the charity will benefit. There are two main types of charitable trusts.

1. Charitable Lead Trust
You can use a charitable lead trust to make a series of payments to a charitable organization while you are alive.  At some point in the future the remaining assets in the trust either are given back to you or transferred to someone that you select as beneficiary.  In a way, the donor is lending the assets to the charity for a period of time during which the charity can use the income produced by the assets.

2. Charitable Remainder Trust
In this type of trust, you set up two sets of beneficiaries called income beneficiaries and remainder beneficiaries.  The income beneficiaries, typically the trust owner and/or his or her family, receive income from the assets in the trust during their lifetimes.  When the beneficiaries pass away, all remaining assets are given to the charity that is the remainder beneficiary.  This option has the added benefit of missing estate taxes entirely.

The rules for these types of trusts are very complex.  If you are interested in charitable trusts, I encourage you to seek out a qualified Charlotte trusts attorney and tax advisor who can guide you through the process.

Make a monetary donation to the Charlotte Ronald McDonald House in February and March 2011 and receive a FREE Estate Planning consultation from Sabrina Winters, Attorney at Law, PLLC!

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While efforts are underway to complete the Ronald McDonald House, many people and businesses, including our Firm, in and around Charlotte are donating their time and talents to this wonderful cause. While my Ballantyne office is far from the hustle and bustle of construction going on to build the house in Dilworth for families to stay while their children are at Hemby and Levine Children’s Hospitals, I felt the pull to give back something to an organization that  does so much for families. Much of what I do for parents when I create their wills and trusts is give them some peace of mind that their children will be protected after their parents are gone. As a mother, it is unimaginable what parents of sick children must go through.

The Ronald McDonald House of Charlotte  is one of over  300 houses worldwide that offers stability and shelter for those families who have to travel to get the best possible care for their children. Since our children’s hospitals are some of the best children’s hospitals in the south east, it made perfect sense for a House to be built here in Charlotte. I hope the Firm’s plan to raise money for the house will be successful.

I am offering anyone who makes a monetary contribution in the months of February and March 2011 to the Ronald McDonald House a one hour free estate planning consultation. The consultation is good towards a Peace of Mind Planning Session…one per household per monetary donation made.
What is a Peace of Mind Planning Session? It is an estate planning consultation that will provide answers to questions that may have been the reason for the delay in moving forward with planning. By the end of the session everything the client needs to know to create the best estate plan for their personal family situation will be discussed.  This is a project to help families everywhere to take care of their children, be it at the Ronald McDonald House or in any home. My hope is that everyone will give as much as they can.

Interested parties can mail the donation in or stop by our Ballantyne office at 15720 John J. Delaney Drive, Suite 300, Charlotte, NC 28277. The appointment must be made within 30 days of the date the donation is made.

About the Ronald McDonald House of CharlotteCurrently, Charlotte is the only major U.S. city that does not have a RMH. The RMH of Charlotte is scheduled to open in the spring of 2011 and will serve the families of children being treated at Levine and Hemby Children’s Hospitals. Located at 1613 East Morehead Street on land donated by Carolinas Medical Center, the House will feature 35,000 square feet of living space complete with 28 bedrooms (one family per bedroom/suite). It will also have a community kitchen, great room, library, playground and sitting porch. Construction began in early 2010. The RMH of Charlotte is an independent 501©(3) charity managed by a local board of directors which oversee construction and operation of the home. The cost of building and operating the RMH of Charlotte will come primarily from individual and corporate donations. The RMH of Charlotte will be funded, constructed and operated by the Charlotte community. The mission of the RMH of Charlotte is to provide the families of children being treated in area medical facilities with a safe, affordable and caring “home away from home.” For more information on RMH of Charlotte, please visit www.rmhofcharlotte.org.

Are you like the groundhog? Are you the type to peek-out, see your shadow, and go back in to your safe warm place?  Or do you step out and face the day head on?

Interestingly enough, the tradition of the groundhog being afraid of seeing his shadow is a recent phenomenon.  The tradition started as a medieval superstition that all hibernating animals (not just the groundhog) came out of their caves and dens to check the weather in early February.  If the animal could see their shadow, it meant winter could go on for another 6 weeks (which meant they could go back to sleep!)  A cloudy day meant spring was just around the corner and they could venture out.  As you can see, shadow didn’t “scare” the animal back into the safety of their den.  It was simply an alarm clock of sorts!

So with that myth dispelled, I also want you to stop using the fear of your mortality as a reason for postponing doing your own will or trust or putting a plan in place for your medical care in the event you cannot make these decisions for yourself.

Simply think of estate planning as a way to ensure that your legacy will go to the people you want, in the way you want, when you want.  It will also allow you to save your loved ones potential court costs, attorney’s fees and most importantly, will allow them to mourn your loss without the added burden of the distribution of your estate being uncertain.

So, as we see all the news and excitement surrounding Punxsutaney Phil this year, take a long look at yourself and see if you are ready to make sure your family is taken care of no matter what.  If your plans are lacking, I invite you to give me a call at (704) 843-1446 to discuss your options.

“Does dad consider living with Alzheimer’s or Dementia to be quality of life?”

“Is there legal documentation in place that ensures someone can act financially on mom or dad’s behalf if they are unable to?”

These are just two of many questions that experts are urging adult children to ask their parents

during Alzheimer’s and Dementia Awareness Week (February 14th- 21st).   Without the answers to such questions, families could be left battling over long-term care, struggling financially and not truly honoring their parent’s wishes should the disease unexpectedly strike.

So many families avoid talking about Alzheimer’s or Dementia until it’s too late.  From a legal standpoint, if you don’t know your parents’ wishes or the documentation they have in place, you could be left with a huge burden on your hands in the wake of this debilitating disease.

There should be 5 specific conversations adult children should have with their parents as soon as the opportunity presents itself.  They comprise the following:

1. Long-term care preferences

Does mom or dad want to live in a nursing home or would they prefer in-home care if the need presented itself?  If they prefer a facility, what amenities and activities are important to them at this point in their life?  These are questions that if discussed in advance can make the transition into an assisted living facility or a home-health care program much easier on everyone when the time comes.

2. Current Legal Documentation

It’s imperative that adult children find out what legal documentation their parents have in place before incapacity occurs.  This includes making sure their parents have a power of attorney, health care directive and HIPAA forms so someone can easily step in to make financial or medical decisions on their behalf.  Otherwise the family will be forced to petition a court for control over their parent’s affairs if they have passed the point of legal capacity.

3. Medical Preferences and Wishes

Adult children are urged to find out what type and how much medical care their parents want after receiving a diagnosis of Alzheimer’s or dementia. Do they have specific wishes about life support or other end-of life medical treatments?  Who do they want to make such decisions on their behalf?  The answers to these questions will help your parents to feel secure knowing their wishes will be carried out during an otherwise emotionally-charged time.

4. Current state of financial affairs

To ensure finances stay properly managed after a diagnosis of Alzheimer’s or Dementia, adult children should use this week to start asking tough questions about their parent’s financial affairs.  This includes finding out the location of any safety deposit boxes, bank accounts, investment or brokerage accounts, outstanding debts or other assets unknown to the family.   Otherwise, necessary assets needed to cover long-term care or other expenses could be overlooked when memory loss ultimately occurs.

5. Important contacts and information

While their memory is sharp, adult children should work with aging parents to compile a list of important contacts and information that will be useful to the family if memory loss occurs. This includes documenting key doctors, professional advisors (ie. accountant, attorney, financial advisor) and important passwords for online accounts.

While these conversations are certainly not easy to have, families can make the transition into living with Alzheimer’s or Dementia much easier by simply planning ahead not to mention, mom or dad will appreciate your willingness to make sure their wishes are honored if and when incapacity occurs.

As a Charlotte probate attorney, I help families every day choose who they want to name as the beneficiary of their estate when they pass away.  While this may seem like an easy task, it can actually get quite complicated if you have very specific wishes as to whom you want to receive your assets upon death.

For example, you may specifically want your house to go to your oldest child, an expensive jewelry collection to your favorite niece, journals and memoirs to a granddaughter and a modest financial gift to your favorite charitable organization.  You’ve thought long and hard about this and you know you want these wishes to be carried out upon your passing, no matter what.

Yet despite your best intentions, have you thought about what would happen to such assets if your chosen beneficiary was not living at the time of your death?

I can tell you in my experience as  a Charlotte probate attorney that most people do not, and this oversight could easily result in someone you would never want inheriting your estate when you are gone.  This is exactly why do it yourself wills are so dangerous; it often takes an attorney to point out things you should be adding to your estate plan for maximum protection.

Fortunately there is an easy solution to this, and that is naming alternative beneficiaries to inherit your estate if a chosen beneficiary precedes you in death.

So let’s say for example that you want to leave one of your properties to a very close family friend, Michael.  Yet at the same time, you do not want the property going to your sister or anyone else for that matter if he dies before you.  In this case, you would then name an alternative beneficiary, your niece Helen if Michael is no longer alive to inherit the asset.

As you can see, this clears up any confusion and will ensure your inheritance does not wind up in the hands of someone you would never want if your original beneficiary dies before you.

This same premise can be used for naming alternate agents in your Durable Power of Attorney as well as your HealthCare Power of Attorney.  Having an alternate agent named to immediately be able to step in should your first choice die before you is invaluable.

Yet I realize many people avoid taking this extra step to name alternative beneficiaries because it can be painful to think about.  This is especially true for parents who want to leave everything to their children and can’t bear the thought of a child dying before them.  If you are taking the time to plan your estate today, then planning for possible situations that might likely occur only makes sense.  Plus, it will save you money as you will not have to go back to your probate attorney to have him or her make the change…the “what if” was already taken care of.

Of course as Charlotte probate attorney, I understand and sympathize with this fear, but it is also important to remember that you are doing your surviving heirs a huge favor by dealing with this issue so they don’t have to.  You certainly don’t want a judge who doesn’t know you or your family deciding what to do with your estate if you fail to name alternative beneficiaries.

So if you have a will that does not list alternative beneficiaries in the event your chosen beneficiary precedes you in death, I urge you to meet with a qualified Charlotte, North Carolina probate lawyer to discuss how to update your estate planning documents.   By simply mentioning this article, you can come in for a Peace of Mind Planning Session (normally $750) free of charge at our Charlotte office. Simply call (704) 843-1446 to reserve your spot.

It’s one of the reasons that January has been designated National Blood Donor Month. With blood being required by a patient every few seconds and only about 5 percent of the population donating blood, the plea goes out for eligible donors to donate as often as possible.

I discussed in an earlier post (http://tinyurl.com/travelseason) how dangerous this time of the year is and I urged you on the importance of being prepared by making necessary updates to your will, trust and advanced directives. Between Thanksgiving and New Year’s Eve in 2002 alone, alcohol related crashes killed 1,561 people. That does not even account for the people who were simply injured or incapacitated for any length of time from their injuries. It is the perfect time of year to become an organ donor, both by including it on your driver’s license as well as conforming your estate planning documents.  From these injuries, imagine what a gift it would be for someone to be able to use your blood to live!

The search for new donors goes on. They are appreciated and hoped-for, especially in January. Blood banks want prospective donors to know that donating is a very safe procedure. All materials involved are used only once and then discarded.

The process starts with registration, a health history is taken and a mini-physical is given. The actual donation takes about 10 minutes and equals approximately one pint of blood. Your body will normally replace the lost fluid within 24 hours.

The American Red Cross offers some tips to make donating a good experience:

1. Before going to donate, eat a good breakfast or lunch. Avoid fatty foods and eat iron-rich foods;

2. Drink extra fluids to replace the fluid you will donate but avoid caffeine;

3. Be sure to wear clothes with sleeves that can be raised above the elbow;

4. Afterwards, partake of the snack and drink provided;

5. Over the next 24-48 hours, be sure to drink plenty of fluids.

Even if you cannot donate blood due to health conditions or other reasons, you can still participate in Blood Donor Month. You can help organize a blood drive, or volunteer to help at mobile blood sites.  Check with your local blood drives to see if they need treats to give to donors after they give blood. Monetary donations are always welcomed and appreciated as well.

So many of us get caught up in the traffic and retailer lines, planning on gifts for loved ones and friends.  Once the hustle and bustle is all over, continue the holiday spirit and plan to donate so January can continue to be a season of giving!

Charlotte, North Carolina:   While many people focus on getting out of debt or getting organized for the New Year, estate planning is an equally important personal finance goal that should make every adult’s to-do list.

That’s because according to Charlotte estate planning lawyer, Sabrina Winters, far too many area residents are without plans to protect their family, wishes and assets should something unexpectedly happen to them.  A recent lawyers.com survey further reveals that only 35% of adults have a basic will or other estate planning documents in place should death or incapacity occur.

“Contrary to popular belief, estate planning isn’t just for the rich,” says Winters .  “At a bare minimum, every adult needs a basic will, power of attorney and health care directives in place to avoid a legal and financial stresses and obstacles if something unexpectedly happens to them,” she adds.

So what are these documents and how do they help you in a time of emergency?  Winters explains the following:

• Will- A will is a document that specifies what should happen to your assets if you pass away.  A will may also contain guardian nominations to dictate who will care for your minor children if something unexpectedly happens to you.

• Trust- A trust is a legal entity that can hold title to property. With your assets securely placed in a living trust, you can minimize your financial exposure to lawsuits, divorce and bankruptcy while alive.  Upon death, a trust (if created and funded properly) will keep your affairs private and out of the probate court.  It also allows a great deal of control for people who do not want their inheritance going outright to their heirs if something unexpectedly happens.

• Power of Attorney- A power of attorney or POA gives explicit permission for someone to access your personal accounts, pay your bills and handle all other financial and legal affairs if you are incapacitated in an accident but do not die.   Under the current privacy laws, even a spouse may have a hard time accessing personal information without such documentation in place.

• Advanced Health Care Directive- Also known as a living will, this document specifies your healthcare wishes if you are incapacitated in an accident and unable to speak for yourself.  Such wishes may range from whether you want certain medications administered to when (if at all) to start life support in critical situations.   This document also allows you to appoint the person best suited to carry out such wishes should incapacity occur.

“Accidents and serious illness happen every day without warning,” says Sabrina.  “That’s why it’s so important for any adult who has not tackled their estate planning to add it to their resolutions this year.  It will save their family from potential headaches and unexpected costs should the unthinkable happen”.

About Sabrina Winters:  Winters is a wife, a mom, a business owner and the Senior Attorney at Sabrina Winters, Attorney at Law, PLLC…an Estate Planning and Probate law firm located in the beautiful Ballantyne area of Charlotte, North Carolina.  Winters has been assisting clients in all areas of Estate Planning for over a decade.  Some of her services include:  Wills, Trusts, Probate,Tax Planning, Planning for Children and Succession Planning for business owner