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social Security Surprises

Do You Know These Social Security Surprises?

Do You Know These Social Security Surprises?

If you don’t understand how Social Security works, you may get caught off guard by some of Social Security’s rules and nuances, says Motley Fool’s recent article entitled “Don’t Let These 3 Social Security Surprises Ruin Your Retirement.” Here are some things to keep in mind:

  1. Taxes on benefits. Many assume that Social Security is not taxed, but it may be, depending on your provisional income. Your provisional income is calculated by taking your non-Social Security income plus 50% of your annual benefit payments. If that total is between $25,000 and $34,000 for a single or between $32,000 and $44,000 for a married couple filing jointly, you could be taxed on up to 50% of your benefits. Moreover, if your provisional income is more than $34,000 as a single tax filer, or $44,000 as a joint filer, you may be subject to taxes on up to 85% of your benefits. Typically, if Social Security is your sole retirement income source, you will avoid having your benefits taxed at the federal level. However, there are 13 states that tax Social Security.
  2. Withheld benefits when you still get a paycheck. When you hit your full retirement age (FRA), which is when you are entitled to collect your monthly Social Security benefit in full, you can earn as much money as you would like from a job, without having that income impact your benefit payments. However, if you work and collect benefits at the same time before reaching FRA, you may have some of your benefits withheld if you exceed the annual earnings test limit.

You can earn up to $18,960 in 2021 without losing any benefits. Above that threshold, you will have $1 in Social Security withheld for every $2 you earn. If you will be attaining FRA this year, the earnings test limit is higher, $50,520, and after that you will have $1 in Social Security withheld for every $3 you earn.

These withheld benefits are not lost permanently. They are added onto your monthly benefit once you reach FRA. However, claiming Social Security before FRA will also reduce your monthly benefit for life. Bear that in mind, if you are planning to continue working.

  1. Ultra-low cost-of-living adjustments. Social Security benefits are subject to a cost-of-living adjustment (COLA), which is designed to help seniors keep up with inflation. However, in recent years, it has not. From 2002 to 2011, COLAs averaged 2.43%, but between 2012 and 2021, they averaged only 1.65%. As a result, many seniors on Social Security have had trouble paying their bills. COLAs are tied to fluctuations in the cost of goods and services, but this does not necessarily relate to seniors. Because of this, some lawmakers have been advocating for a better way of calculating them.

If you are planning to depend primarily on Social Security in retirement, be certain that you know the details of the program.

Reference: Motley Fool (Feb. 1, 2021) “Don’t Let These 3 Social Security Surprises Ruin Your Retirement”

Read more related articles at: 

6 Social Security Surprises

Social Security Basics: 12 Things You Must Know About Claiming and Maximizing Your Social Security Benefits

Also, Read one of our previous Blogs at:

Will the Pandemic Affect My Social Security?

Click here to check out our On Demand Video about Estate Planning.

Spring Estate Plan

Spring has Sprung. When Should I Start my Estate Plan? Now!

Spring has Sprung. When Should I Start my Estate Plan? Now!

According to an article by MerchantsBank.com entitled: Guide to Estate Planning by Age, You might think estate planning doesn’t apply to you. You aren’t old enough. You don’t have enough assets. Think again.

“Most people think they don’t need an estate plan until they are older or have more money – but that’s simply not true,” says Martin Oines, CFP ®, CTFA, Trust Officer. “People at every age should put together an estate plan that fits their needs – from something very simple for a 30 year old to a fully funded trust plan for a 60 year old.

Here are the typical estate planning documents and issues to consider by age.

In Your 20s

Once you turn 18, your parents no longer have authority to make healthcare or financial decisions for you. That’s why it’s important to visit with a lawyer and get a:

  • Healthcare Directive – Specifies which actions should be taken regarding your health if you are no longer able to make decisions.
  • Power of Attorney – Names someone to make decisions for you if you can’t. There are several different types, but specifically you’ll want to consider a healthcare Power of Attorney for medical decisions and a financial Power of Attorney for financial decisions.

In Your 30s

Typically by your 30s, you own a home, have started a family, and have some financial assets. To make sure you protect your children and spouse, this is a good time to review – with the help of your lawyer or our Trust team – which legal devices make the most sense for your situation:

  • Will – Specifies who will inherit your assets, who will take care of settling your estate and, if necessary, who will care for your children if you or your spouse are unable to.
  • Trust – Transfers ownership of your assets to someone you choose (called the trustee) and dictates who will manage your assets for the beneficiaries you designate. Trusts can include different kinds of assets, such as real estate and investment accounts. Trusts can also be set up in many different ways. You may have heard of living trusts, revocable trusts or irrevocable trusts. To find out which one is right for you, consult with your lawyer.

In Your 40s

If you have the above documents and decisions in place by your 40s – congratulations! If not, it’s time to catch up.

Now is also the time to talk to your parents about their estate plan. While these conversations can be difficult, understanding your parents’ long-term financial and healthcare wishes is usually best for everyone.

Specifically, check with your parents to make sure they have legal documentation for:

  • Distributing their assets (will, trust and beneficiary designations).
  • How medical decisions will be made if they become incapacitated, including their preferences and who can make the decisions.
  • Long-term care, including where they want to live and how they will pay for it. You parents may even have a long-term care insurance policy. Be sure to ask.

In Your 50s and 60s

If you haven’t done any estate planning by your 50s, you’re not alone. According to AARP, 42% of Baby Boomers do not have estate-planning documents in place.

Now is the time to get proactive and create these legal documents.

In Your 70s and Beyond

At this point, with your estate plan complete, you should focus on reviewing or updating your plan as appropriate. Make sure that your estate plan is as clear as possible and ready to be executed when necessary.

Read more related articles at:

When should I start my estate planning?

Do you need an estate plan?

Also, read one of our previous blogs at:

Estate Planning Needs for Every Stage

Click here to check out our On Demand Video about Estate Planning.

Social Security Increase

Can You Increase Your Social Security Benefits?

Can You Increase Your Social Security Benefits?

The desire to get the largest possible benefits from Social Security is a relatively new phenomenon. For decades, people received their monthly benefit check and that was it. However, in the late 1990s, a new law let seniors over age 66 work without any reduction in benefits, says the article “Social Security & You: Seniors obsess over ‘maximizing’ their Social Security” from Tuscon.com. The law led to loopholes that became known as “file and suspend” and “file and restrict.” In a nutshell, they allowed retirees to collect dependent spousal benefits on a spouse’s Social Security record, while delaying their own benefits until age 70.

Congress eventually realized that these loopholes violated the basic concept of the program. Benefits to spouses were always known as “dependent” benefits. To claim benefits as a spouse, you had to prove that you were financially dependent upon the other spouse to collect benefits on their record. However, the loophole let people who were the primary wage earner in the family claim benefits as a “dependent” of the other spouse. Five years ago, Congress closed that loophole.

More specifically, Congress closed the ability to file-and-suspend. It also put file-and-restrict on notice. If you turned 66 before January 2020, you could still wiggle through that loophole, and there are some people who are still eligible. That’s where the term “maximizing your benefits” originated.

Can you get a bigger Social Security check, if you don’t fit into the exception noted above? The only real strategy to maximizing your benefits is simply to wait. The equation is pretty simple. If you wait until your Full Retirement Age (FRA), you will receive 100% of your benefit rate. If you can wait until age 70, you’ll receive 132% of your benefit.

In some households, the higher income earner waits until age 70 to file for retirement, so that the surviving spouse will one day receive higher surviving spouse benefits.

But that’s not the best advice for everyone. If you or your spouse suffer from a chronic illness, it may not make sense to wait.

If you or your spouse have lost your jobs, as so many have because of the pandemic, then Social Security may be the safety net that you need, until you are able to return to some kind of paid employment.

There may be other reasons why you might need to take your benefits earlier, even earlier than your FRA. Some households start taking their Social Security benefits at age 62, as a way to augment other income.

If you don’t already have a “My Social Security” account set up on the Social Security Administration’s portal, now is the time to do so. The Social Security Administration stopped sending annual statements years ago, but you can go into your account and download the statements yourself and start planning for your future.

Reference: Tuscon.com (Feb. 10, 2021) “Social Security & You: Seniors obsess over ‘maximizing’ their Social Security”

Read more related articles at:

10 Ways to Increase Your Social Security Payments

9 ways to ‘life hack’ your way to larger Social Security benefits

How to Increase Your Social Security Benefits

Also, read one of our previous Blogs at:

What are the Major Social Security Changes for 2021?

Click here to check out our On Demand Video about Estate Planning.

Spouse dying in hospital

Get Estate Plan in Order, If Spouse Is Dying from a Terminal Illness

Get Estate Plan in Order, If Spouse Is Dying from a Terminal Illness

Thousands of people are still dying from COVID-19 complications every day, and others are dealing with life-threatening illnesses like cancer, heart attack and stroke. If your spouse is ill, the pain is intensified by the anticipated loss of your life partner.

Wealth Advisor’s recent article entitled “Your Spouse Is Dying: 5 Ways To Get Your Estate In Order Now,” says that it’s frequently the attending physician who suggests that your spouse get his affairs in order.

Your spouse’s current prognosis and whether he or she’s at home or in a hospital will determine whether updates can be made to your estate plan. If it has been some time since the two of you last updated your estate plan, you should review the planning with your elder law attorney or estate planning attorney to be certain that you understand it and to see if there are any changes that can and should be made. There are five issues on which to focus your attention:

A Fiduciary Review. See who’s named in your estate planning documents to serve as executor and trustee of your spouse’s estate. They will have important roles after your spouse dies. Be sure you are comfortable with the selected fiduciaries, and they’re still a good fit. If your spouse has been sick, you’ve likely reviewed his or her health care proxy and power of attorney. If not, see who’s named in those documents as well.

An Asset Analysis. Determine the effect on your assets when your partner dies. Get an updated list of all your assets and see if there are assets that are held jointly which will automatically pass to you on your spouse’s death or if there are assets in your spouse’s name alone with no transfer on death beneficiary provided. See if any assets have been transferred to a trust. These answers will determine how easily you can access the assets after your spouse’s passing.

A Trust Assessment. Any assets that are currently in a trust or will pass into a trust at death will be controlled by the trust document. See who the beneficiaries are, how distributions are made and who will control the assets.

Probate Prep. If there’s property solely in your spouse’s name with no transfer on death beneficiary, those assets will pass according to his or her will. Review the will to make sure you understand it and whether probate will be needed to settle the estate.

Beneficiary Designation Check. Make certain that beneficiaries of your retirement accounts and life insurance policies are current.

If changes need to be made, an experienced elder law or estate planning attorney can counsel you on how to best do this.

Reference: Wealth Advisor (Jan. 26, 2021) “Your Spouse Is Dying: 5 Ways To Get Your Estate In Order Now”

Read more related articles at:

How to get your affairs in order if your spouse is dying

Planning During Terminal Illness

Caring for someone with a terminal illness: Planning for deterioration and death

Also, read one of our previous Blogs at:

Surviving Spouse Needs An Estate Plan

Click here to check out our On Demand Video about Estate Planning.

 

 

Newest Alzheimer's Treatment

The Latest Treatments for Alzheimer’s Disease

The Latest Treatments for Alzheimer’s Disease

A two-year study monitored 272 people, whose brain scans showed Alzheimer’s. They discovered that patients who took the drug had a 32% slower rate of decline than those who were given a placebo, according to AARP’s recent article entitled “The Alzheimer’s Drugs Showing Early Promise.”

“It’s very encouraging because this is the first time a drug of its kind has had positive results in early-stage trials,” says Lon Schneider, M.D., Della Martin Chair in psychiatry and neuroscience at the Keck School of Medicine of the University of Southern California.

The drug, known as a monoclonal antibody, works by attaching to the hard plaque in the brain made from amyloid (a protein associated with Alzheimer’s).

While these initial findings are promising, Schneider says more data is required. “It may have been everyone just had a small cognitive decline, in which case the results aren’t as significant,” he says.

However, this is not the only news from Alzheimer’s researchers.

“There are several new drugs either close to getting FDA approval, or in development, that promise to really change the playing field when it comes to treatment of Alzheimer’s disease,” says Marwan Sabbagh, M.D., director of the Cleveland Clinic Lou Ruvo Center for Brain Health in Las Vegas.

Here are some of the most promising drugs in trials:

  • Aducanumab: This drug is seeking FDA approval. It is another monoclonal antibody similar to donanemab that binds to the hard amyloid plaques. “It will be a game changer if it’s approved, because this will be the first drug shown to actually slow down the progression of Alzheimer’s disease,” Sabbagh remarked.
  • Pimavanserin: This antipsychotic drug is already approved to treat hallucinations and delusions in people with Parkinson’s disease, but it is now under FDA review for the treatment of some of the behavioral and psychological symptoms of all dementias. “Research shows that it’s very effective also in treating dementia-related psychosis or hallucinations,” Sabbagh says. “This is important because these sorts of episodes are the main reason patients with Alzheimer’s get placed in memory care facilities. If caregivers can manage these symptoms, more people will be able to stay at home.”
  • Atuzaginstat: Studies show that the bacteria P. gingivalis (the cause of gum disease) can impact the brain and cause Alzheimer’s disease. This drug is in clinical trials to determine if it can stop gingipains—the toxic proteins the bacteria release—which can damage healthy brain cells.
  • NDX-1017: This is administered as a daily injectable. It is a small molecule that improves the activity of hepatocyte growth factor (HGF), a protein found in your body’s tissues, including your brain. HGF hopefully will strengthen the synapses or connections between your brain cells, thus reversing some of the damage caused by Alzheimer’s. Research shows that it works quickly, making an impact in as little as eight days.
  • ALZ-801: This medication is taken orally rather than as an injection. Unlike monoclonal antibodies, which latch onto amyloid plaques and eliminate them, ALZ-801 attacks earlier in the process, blocking the amyloid from ever forming.
  • Lenalidomide (Revlimid): This is used to treat leukemia or multiple myeloma but is now being studied for its potential to treat Alzheimer’s.

Reference: AARP (Jan. 22, 2021) “The Alzheimer’s Drugs Showing Early Promise”

Read more related articles here:

Alzheimer’s Treatments: What’s on the Horizon?

A new Alzheimer’s drug: From advisory panel to FDA — what’s at stake here?

New approaches to symptomatic treatments for Alzheimer’s disease

Also, read one of our previous Blogs at:

New Blood Test May Make Alzheimer’s Diagnosis Easier

Click here to check out our On Demand Video about Estate Planning.

Scariest issues of Retirement

What are the Scariest Statistics for Retirement?

What are the Scariest Statistics for Retirement?

Think Advisor’s recent article entitled “11 Scariest Retirement Statistics: 2020” says that there is a lack of preparation, savings difficulty and general uncertainty that American retirees are facing. Here are those scary stats:

  1. Just a quarter of Americans are on a trajectory to maintain their lifestyles in retirement. The other 75% will need to work longer, move to lower-cost housing and cut spending to maintain their standard of living, largely due to the coronavirus downturn.
  2. The Social Security trust funds would be empty by 2023, without the payroll tax. While President Trump let employers temporarily defer the employee portion of payroll taxes, he said the deferred taxes could later be forgiven, or the cut made permanent. When he signed the order, he vowed to “terminate the tax,” if reelected. Republican lawmakers subsequently debuted a plan to fund any shortfalls from the Treasury.
  3. Social Security benefits will be decreased by 21% if the trust fund runs out. Congress will have to intercede, or it could happen 10 years from now, if not sooner.
  4. Those born in 1960 will have a big problem because of the complicated formula the Social Security Administration uses to calculate benefits. Pre-retirees born in 1960 will see a nearly 15% cut to their lifetime benefits from Social Security when it’s time to collect. If the pandemic suppresses the economy into 2022, those cuts will impact more pre-retirees. The impact to their Social Security benefits will also be permanent.
  5. The 2021 Social Security cost of living adjustment, or COLA, will be just 1.3%. Retirees should note that rising health care costs and a potential 6% increase in Medicare Part B premiums may absorb that benefit increase.
  6. More than 50% of Americans think the economy is worse now than in 2008, with 51% of Americans seeing the COVID slowdown as worse than the 2008 recession. A survey from Edelman Financial Engines also found that 26% had withdrawn money from retirement or savings for living expenses.
  7. About 60% of retirement savers have fallen behind, according to a TIAA study. Among these, 30% said it was directly due to the pandemic.
  8. Internet searches for “move out of the U.S.” have increased 16 times. International Living magazine says it had seen the jump in search traffic around the phrase since May. A total of 20% of respondents in a survey it conducted also said they wanted to move due to the pandemic. However, just 45% cited a desire to save money.
  9. Approximately 42% of investors sold stock, and most of them (88%) of them regretted it. In response to the drop in stocks in mid-March last year, 42% of investors in a survey by MagnifyMoney sold at least one stock and 24% sold all their holdings. About 69% of those who sold stock at the start of the pandemic greatly regretted it, and 19% said they were somewhat regretful.
  10. Roughly 80% of older Americans don’t understand retirement planning and don’t know the basics of how to successfully plan for a financially secure retirement, according to a study by The American College of Financial Services. The survey also found only 30% of respondents had a plan in place to fund long-term care needs, and just one in four actually had long-term care insurance.
  11. About 3 million workers may have been driven into early retirement due to the pandemic. From March to August of 2020, 2.8 million older workers might have been pushed out of their jobs prematurely, with economic turmoil and poor health making it hard for them to resume their careers elsewhere, according to by the Schwartz Center for Economic Policy Analysis at the New School. The report found that 38% of unemployed older adults stopped looking for work and left the workforce, and an additional 1.1 million were expected to do likewise.

Reference: Think Advisor (Oct. 30, 2020) “11 Scariest Retirement Statistics: 2020”

Read more related articles at:

Scary Statistics on Retirement Readiness

15 Scary Retirement Statistics

Also, read one of our previous Blogs at:

How Do I Include Retirement Accounts in Estate Planning?

Click here to check out our On Demand Video about Estate Planning.

Estate Battle with Millions at Stake in New Orleans

Estate Battle with Millions at Stake in New Orleans

Jessica Fussell Brandt filed an eviction petition against her daughter, Julie Hartline, her son-in-law Darryl Hartline and two grandchildren, Alexis and Zachary Hartline. She is pitted against them in a legal fight over an estate valued at more than $300 million, reports nola.com in the article “In Ray Brandt estate battle, widow tries to evict family from Old Metairie compound.”

Before auto magnate Ray Brandt died at age 72 from pancreatic cancer, the entire family shared a compound that includes two mansions located next to the Metairie Country Club. Brandt has been trying to sell the property which belongs to the estate, as its executrix. The family members living there don’t want to move, even taking down “For Sale” signs from the lawn.

Her attempt to evict them comes after she won a case in her attempt to maintain control of her late husband’s estate, which includes a large number of auto dealerships and collision centers across Louisiana and Mississippi.

On January 25, a Jefferson Parish judge invalidated the last will and testament that Ray Brandt signed just weeks before his death and another last will drafted in 2015. The district judge ruled that both last wills contained a flaw in how they were notarized: neither notarization specified that Ray Brandt, the witnesses, and the notary were together when it was signed.

The decision is being appealed, but it appears to leave the fate of Brandt’s empire to a last will he made in 2010. Unlike the others, this last will places Jessica Brandt in full control of his estate and trust, including the auto dealerships, until her death.

Ultimately, Ray Brandt directed that her grandchildren, who he legally adopted as adults before he died, would split the estate’s assets.

Despite issuing a statement saying that Jessica was “pleased with the prospect beginning the healing process,” after the Jefferson Parish decision, the eviction filing revealed that Jessica’s attorneys sent an email urging family members to leave the property by January 31, 2021.

Jessica made a statement that her wish to evict family members was a result of the multiple citations issued by Jefferson Parish for continuing violations at the compound. The latest one was for a trailer and mud buggy parked in a driveway on a vacant lot. She also said that the family members own two other homes, one in Metairie and one in Fort Beauregard.

The compound where the family settled seven years ago is estimated to be worth more than $8 million.

The heart of the dispute pits Jessica Brandt against Archbishop Rummel High School principal Marc Milano, who Ray Brandt named as a trustee to oversee the auto group and the rest of the estate until Jessica Brandt dies. Milano has accused Jessica of taking money from the estate and trying to claim an ownership interest in the dealership. She sued him for defamation.

Now the grandchildren have filed their own legal action, challenging a petition to put Ray Brandt’s last will into effect. Their argument is the trust that Ray Brandt set up in 2015 makes it clear that he meant for Milano to oversee the assets.

This estate battle will no doubt keep the Jefferson Parish courts and newspapers busy for some time. It’s a lesson to keep your family’s business private, by ensuring that your estate plan is properly prepared and up to date.

Reference: nola.com (Feb. 3, 2021) “In Ray Brandt estate battle, widow tries to evict family from Old Metairie compound”

Read more related articles at:

Fate of Ray Brandt’s auto empire in doubt amid roiling family squabble over estate

‘Stop all of this!’ Ray Brandt’s widow bemoans the family battle over his massive estate

In Ray Brandt estate battle, widow tries to evict family from Old Metairie compound

Also, read one of our previous Blogs at:

Celebrity Estates: Battle Over Inheritances

Click here to check out our On Demand Video about Estate Planning.

REAL HOUSEWIVES EX CONSERVATORSHIP

‘Real Housewives’ Ex under Temporary Conservatorship

‘Real Housewives’ Ex under Temporary Conservatorship

Tom Girardi’s brother, Robert, has been named to take care of his daily and personal activities. The news comes a month after Robert filed a petition to be in control of Tom’s estate and ongoing legal battles.

A conservatorship is when a judge appoints someone to manage an incapacitated person’s financial and personal affairs. The conservator’s duties include overseeing finances, establishing and monitoring the physical care of the ward and managing living arrangements.

Screen Rant’s article entitled “RHOBH: Erika’s Ex Tom Girardi Now Under Temporary Conservatorship Due to Illness” reports that Tom and Erika have been entangled in some legal drama since she filed for divorce in November of last year.

Despite the May-December romance (more than 30 years’ difference), they always appeared to be happy together. However, as they battle in divorce, their relationship has turned ugly. Tom refused to pay spousal support, but he has her involved in another legal issue: the couple is being sued by Tom’s former clients for embezzling over $2 million. The plaintiffs say that Tom and Erika stole the money to maintain their lavish lifestyle.

According to Us Weekly, the 81-year-old’s attorney Rudy Cosio said that Tom wouldn’t be able to attend the hearing because he suffered a medical emergency over the weekend. His brother filed a petition in January to control Tom’s estate and legal battle because he’s not currently well enough to handle this on his own. The petition was approved by the judge. Robert was given temporary conservatorship of his brother’s estate, as well as his daily activities and personal matters until the end of March. Another hearing is set for mid-March when the judge will decide whether to grant Robert’s other requests. These include granting him approval to place Tom in facility that treats patients with neurocognitive disorders like dementia.

Robert’s attorney released a statement to Us Weekly on the conservatorship and its urgent nature.

“There was an urgent need for Bob Girardi to have the power to engage counsel in the bankruptcy proceeding on his brother’s behalf, and Tom’s court-appointed counsel clearly agreed, as did the court today,” the statement read.

According to court filings, Robert admitted Tom’s health has been declining since Erika filed for divorce and the embezzlement lawsuit last year. Tom is currently unable to understand the ramifications of the bankruptcy filings pending against him and needs Robert to help him.

In December, it was reported that Tom was secretly hospitalized due to a serious illness. While Tom’s illness is not yet known, many are worried about his mental capabilities.

Reference: Screen Rant (Feb. 2, 2021) “RHOBH: Erika’s Ex Tom Girardi Now Under Temporary Conservatorship Due To Illness”

Read more related articles at:

Erika Jayne’s Husband Tom Girardi Placed Under Temporary Conservatorship Amid Divorce

RHOBH star Erika Jayne’s ex Tom’s brother granted conservatorship over 81-year-old lawyer after ‘medical emergency’

Also, read one of our previous Blogs at:

What Is a Conservatorship?

Click here to check out our On Demand Video about Estate Planning.

 

Corona 3

Did the Pandemic Put a Premium on Estate Planning?

Did the Pandemic Put a Premium on Estate Planning?

The number of life insurance applications from people under age 44 increased by more than 7% in 2020, according to the MIB Group, a data sharing service for insurance companies, which tracks life insurance applications.

NBC News’ recent article entitled “Americans flocked to buy life insurance, prepare wills and trusts last year” says that life insurance applications for the age group had been mostly down over the last several years. So, that’s a big increase.

There are a number of factors that contributed to the spike, but experts point to the pandemic and the insurance awareness it brought on.

People are looking at mortality like they’ve never looked at it before, especially younger adults. Those who felt invincible have been shaken by COVID-19. They now realize we are all mortal.

With millions of jobs lost during the early stages of the pandemic, many workers had to leave behind their employer-paid life insurance through their employee health benefits packages. Roughly 54% of Americans had life insurance earlier this year, most of them through their employers.

Overall, insurance applications are up by 4% this year. Northwestern Mutual, the nation’s largest seller of life insurance last year, sold 15% more life insurance policies from April to September, compared to the same time last year, CNBC reported in October.

Other companies also saw their applications grow.

In estate planning, the number of people drafting wills and trusts is also on the upswing because of the pandemic. A recent LegalZoom survey found that 32% of people ages 18 to 34 drafted wills because of COVID-19, and about 21% of that group did so because they knew someone who had contracted the virus.

Estate planning attorneys know that preparing for death can be cumbersome. However, as the pandemic has shown us, our demise can come at any time. We should all be prepared.

Reference: NBC News (Jan. 1, 2021) “Americans flocked to buy life insurance, prepare wills and trusts last year”

Read more related articles at:

Pandemic highlights importance of estate planning

Estate Planning In The Pandemic Age: It’s Time To Prepare For The Unexpected

Also, read one of our previous Blogs at:

How Can Estate Planning Protect Me from COVID-19?

Click here to check out our On Demand Video about Estate Planning.

millennial and parent

Millennials, It’s Time to Talk Estate Planning With Your Parents

Millennials, It’s Time to Talk Estate Planning With Your Parents

Every generation gets it. some stigma as to how they act as a generation. Some say millennials are selfish and uncaring about the future. They have have gotten a bad rap from a lot of generalized society. As with everything, this theory doesn’t hold water. Millennials continue to get older and can no longer be looked at as children anymore. Lots of millennials are responsible adults now. Some are even moving into their forties. This means that Boomers, also known as their parent’s generation. are also continuing to get older, which means, Millennials may need to begin speaking to their parents, whom are Boomers, about estate planning.

Boomers are at the age when it becomes necessary to have the difficult conversations with them, and the estate planning conversation is one of the most important. This discussion goes further than just conversations about wills and inheritance. It is important to discuss power of attorney, living wills, and even death event planning.

You should discuss wills, trusts, inheritance and any documents needed in regard to those matters. Documents for power of attorney or health care proxy will likely need to be discussed. Also, a living will is very important in the case of your parents being unable to do tasks like pay the bills and other things.

These conversations are not easy and are often uncomfortable and difficult to bring up. One way to help this is to approach estate planning as a way to alleviate anxiety and stress and present the idea to your parents as such.

See Erin Lowry, Millennials, It’s Time to Talk Estate Planning With Your Parents, Bloomberg, December 30, 2020.

Read more related articles at:

Millennials, It’s Time To Talk Estate Planning With Your Parents from Financial Advisors Mag

Are You A Millennial? Talk to Your Parents About Estate Planning

Also, Read one of our previous Blogs at:

The Estate Planning Conversation To Have with Your Parents

Click here to check out our On Demand Video about Estate Planning.

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