By:  Stephen R. Elville, J.D., LL.M. – Principal

Everything has a purpose or premise. Every second of our life has its own premise, whether or not we are conscious of it at the time. That premise may be as simple as breathing or as complex as a vital emotional decision, but it is always there. – Lajos Egri

This year it was my privilege to be asked to write the annual Heckerling Highlights article for the Estates and Trusts Section of the Maryland State Bar Association. After I readily accepted and took off on the project like a teenager who has just been given a new 2019 Ferrari 812 Superfast (789 horsepower by the way), I soon discovered that given the amount of material presented at the gigantic 53rd Annual Heckerling Institute on Estate Planning (January 14-18, 2019) in Orlando, Florida, which I attended, it was going to be no small task to compile a meaningful summary of the five-day conference materials, an academic ultramarathon comprising more than five large binders of printed material and a plethora of articles, many over fifty pages in length. Where to go and what to do? Well, there was nothing else to do but begin, and with that I was hoping the old saying “beginning is half done” would apply. Three months later, still at my desk surrounded by reams of materials and my article journey looking more like I had set off in a Russian-made Lada rather than the iconic Italian stallion, I had an epiphany. After covering and summarizing selected topics of interest over a broad spectrum, including the issue of divorce in estate planning, elder law caselaw updates, estate planning for foreign assets, dealing with I.R.C. Section 199, retirement plans and charitable giving, recent developments, private letter rulings, anti-money laundering ethics guidelines in terrorist financing, the selection of fiduciaries, tax basis planning, the modern American family, estate planning and minor children, powers of appointment, asset protection, and much more, including the uses of memorandums of intent, it occurred to me that of all the subject matter presented, possibly the most important takeaways from the Heckerling Conference on Estate Planning, and the two subjects that would be of most interest and value to our clients on a practical level, especially given recent experiences in our practice over the past five years, was the importance of proper fiduciary selection and the use of letters of intent. The eternal questions relating to who (and what) is a proper fiduciary were addressed. Who is fit to serve as trustee, personal representative, agent under a financial power of attorney, and health care agent? Attorneys should focus their individual planning processes around this issue, as proper fiduciary selection is likely the ultimate reason a plan will work as intended or otherwise fail. The attorney’s job is to offer solutions and choices, and to be a counselor. Fiduciary compensation is a big issue. The use of a “fiduciary protector” should be considered. Family structures and demographics in the U.S. have changed and continue to change. Married couples now comprise less than 50% of U.S. households. Unmarried couples, young and old, are the fastest growing demographic in this area. Understanding the differences between the traditional World War II, then “Boomer”, then Generation X, and now Millennial generations is key to our collective futures in estate planning, as is an understanding of the effects of divorce, blended families, same-sex and interracial marriage, multi-parent and single parent families, and reproductive technology. Intestacy rates appear to fluctuate depending on family circumstances and structure. Flexibility and pace of change dictate that trust design should include statements of intent, one for the trustee and one for the beneficiaries, especially where trusts are to last forever, along with the inclusion of a trust protector. Standard, oft-used form provisions should be reviewed to determine if they speak to the grantor’s true intentions and whether they address potential future conflicts between the trustee’s fiduciary obligations and the expectations of beneficiaries. Good trust design should recognize the potential for conflict between trustee fiduciary duty and the modes of flexibility now available to the trustee.

From the above we can infer that there is a huge generational gap between the person implementing a trust (the grantor) and the person or persons who will enjoy the beneficial interests of the trust (the beneficiaries). Juxtapose this chasm between the generations, age groups, values, lifestyles, attitudes towards marriage and family, and the evolving definition of what a family actually is, with the continuous changes in Maryland law (for example, the new Elective Share law and the 2019 introduction of decanting legislation), not to mention the same proliferation of statutory change throughout the other forty-nine states (some more than others), and the obvious competition between certain states for trust-related business and assets under management. Because of this divarication, and the reality that nearly all trust documents suffer from “legal document word processing dementia”, the act of showing the grantor’s intention in trusts has now become a standard part of the estate planning process. The problem is that for most estate planning attorneys and law firms that practice in the area of estates and trusts, especially those who subscribe to the “transactional estate planning” (TEP) school of thought, this vital component is lost on them (they are not consciously aware of it or otherwise do not consider it important). So if you are reading this article with the interest of a student, please take special note of the following important sentence as I repeat: the act of showing the grantor’s intention in trusts has now become so important, it must be considered a standard part of the estate planning process.

If you remain intentional, maintain an academic approach to your estate planning, and implement a trust purpose statement (also known as a letter or memorandum of intent), you will be rewarded with the fullest and most complete estate plan possible. You will be “speaking” mainly to the trustee, the person whom you will have carefully chosen (note again the importance of fiduciary selection) and who will internalize and represent your goals, values, and vision into the future, carrying forth your intentions, and by and through the trust purpose statement, whatever form it may take (provision in the trust itself), memorandum attached to the trust, or separate letter to the trustee, will convey your instructions to the trustee about he or she should use the discretionary powers expressed in the trust. As a basic example of why this is important, consider the common ascertainable standard, health, education, maintenance, and support (HEMS). What does this mean? How is the trustee to use his or her discretionary powers? To one trustee, say a Certified Public Accountant (CPA) with a conservative approach, HEMS may mean that the beneficiary must prove their essential need for distributions, with the trustee taking the approach that the preservation of assets is essential not only for the current beneficiary’s future, but for future beneficiaries beyond the current beneficiary; while another trustee may interpret HEMS more liberally, and administer the trust in a manner consistent with more nonconventional notions about the current distribution of funds, even to the extent of exhaustion, for the broader lifetime benefit of the beneficiary. You will also be speaking to a second group of persons – the beneficiaries – who need to know your intentions. Why? Because beneficiaries can cause many problems for trustees, making their jobs, and their lives, extremely difficult and their role as fiduciary impossible. This can cause plan failure in the form of lawsuits against the trustee, the depletion of trust funds in defense of lawsuits, the removal or even the resignation of the trustee, and more.

The role of the trustee was until recently comparably easier, simpler, and more predictable. But in today’s world of trusts, where new laws allow for massive flexibility and never before conceivable changes to trust design, even to the extent of significantly altering the structure of trusts and their outcomes, and where trustees must sometimes choose between the flexibility they are allowed by statute and how that flexibility may conflict with their fiduciary duty, it is incumbent upon grantors of trusts to expend significant time during the design stages of their estate planning to envision the future of the trust(s) they are implementing and create a world of instructions and parameters for the trustee to follow and for the beneficiaries to respect that expands upon the grantors true intentions for the trust and its beneficiaries. It is also the responsibility of attorney and law firms that provide estate planning counsel and advice to grantors of trusts to encourage and facilitate a process whereby outstanding trust purpose statements may be created and memorialized for the long-term future. And so, as it likely was in the beginning, we need to think in terms of “simple” – not necessarily a simple approach, but a simplicity in articulating our goals, desires, values, aspirations, and management parameters for the oftentimes perpetual trust entity that we have, in good faith and with the best of intentions, set in motion into the galaxy of the future.

Tags: The Memorandum of Intent, The Trust Purpose Statement
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Before you retire or leave full-time employment for other pursuits, consider the impacts of your decision on the financial well being of your future. The transition to your next phase of life, whether full or semi-retirement, adventure-seeking, or family-driven, requires thoughtful planning to avoid needless surprises that can mean the difference between financial success or financial stress. Whether you have been planning your retirement for decades or days, contemplating these six key retirement elements can help you avoid unexpected problems.

Health insurance and the cost of health care throughout your retirement years is the first key consideration. If you have been on an employer-sponsored plan, it is crucial to understand the depth and breadth of coverage options and associated costs when you leave your full-time employment. Health care costs will rise as you get older, and according to Fidelity Investments, the average 65-year-old couple will spend $280,000 on health care costs during retirement.

Fidelity Investments Retirement Planning

Medicare is a definite help once you reach the age of 65; however, it does not cover the cost of everything, which is why supplemental health insurance becomes necessary. Learn what Medicare does cover and then explore insurances that will fill in the gaps you most need to cover, such as dental, vision, and long-term care. If you are younger than 65, you will have to supply your health care coverage through vehicles like COBRA if that is an option available through your current employer. If not a COBRA plan you can try the Affordable Care Act (Obamacare). Employing this option and depending on your income, you may even qualify for a subsidy, but open enrollment periods are limited, and you must plan your retirement accordingly. Other insurance options include less robust coverage choices with short-term plans. These plans are only viable for generally healthy people who have no pre-existing conditions.

You may think you want to retire fully; however, it is not uncommon to shift gears and decide for a sense of purpose that you want to work part-time in your “retirement”. Depending on your age, part-time work may affect your social security benefits if you have already begun claiming them. The second key consideration then is to know what your social security strategy is. Most retirees do not want to hold off on receiving their benefits at the age of 62 but the longer you can delay the larger your monthly checks will become. Your benefit increases 6 percent annually until full retirement age and then 8 percent annually until you reach the age of 70.

Since over half of Americans ages 60 – 64 are still working full or part-time, it is critical to know what effect your wages will have on your social security benefits. Nearly one-third of Americans ages 65 – 69 are still in the workforce, and their earned wages are also affecting their social security benefits. The penalty, when exceeding the earnings cap, is short-term substantial. If you make more than $17,640 in 2019, for every dollar you exceed the cap, your benefit will be reduced by one dollar for every two dollars you earn. The monetary penalization will come back to you when you reach full retirement age in a higher monthly benefit check however it depends on your overall income, and up to 85 percent of your benefit is subject to federal income tax. The scenarios get complicated, and it is essential to understand the nuances of social security benefit rules and how they relate to your situation.

When you are preparing to retire the third key consideration is evaluating your tax strategies based on your income. You may have provided for passive and multiple streams of income, and they have distinct tax implications depending on the type of financial retirement vehicle or product. Many people have a variety of retirement incomes such as 401(k)s, IRAs, taxable savings, investment accounts, health savings accounts (HAS) and business or trust incomes. All of these assets have optimal times to tap into for retirement income because of tax consequences. Know your strategy especially since your annual income can affect what you pay for Medicare.

The fourth key consideration is to check what the risks are in your retirement accounts and income plans. By the time you retire, most of your financial portfolio should be in risk-averse financial vehicles. Evaluating and allocating your portfolio to include financially stable products like bonds or well-researched annuities is essential. If you do not have to be overly risky in your strategy, then, by all means, do not be. It is better to live comfortably, or even modestly, in your retirement years then throw everything you have on a betting wheel and come up empty-handed. If you have had the same investment strategy since you were in your early twenties, it is beyond time to re-evaluate your choices.

The fifth key consideration is to prepare for an adverse event by having a financial cushion. Most financial advisors recommend that you keep several years of your income away from market-driven investments and maintain the cash in more stable vehicles like money markets, cash, and other investments that have minimal risk. The rule of thumb is never put the money you need to maintain your lifestyle for the next three years at risk. That allows you time to respond to any adverse event that may crop up while maintaining your retirement lifestyle. This way, if the investment markets are down, you will not have to sell those assets, potentially at a loss, to survive.

Finally, the sixth key consideration is to prepare emotionally for the ups and downs and loss of identity that you have cultivated during your career. Many retirees have a difficult time transitioning to retirement when so much of their life has been defined by what they did for a living rather than who they are as a person. Many people become inextricably linked to their identity through their career and moving into retirement without that career identity can create unforeseen depression. If you do not have to work, it is important to create a new life purpose. Volunteering and mentoring is a fantastic way to help your fellow humankind and ward off feelings of loneliness and lack of self-worth. Also, prepare yourself that the money and those asset accounts you have worked so hard for all your life are going to reflect the change of retirement brings. It can be hard to watch withdrawals for your retirement living chunk away at what you worked so hard to build. Do not go to places of dark imaginings. Retirement spending is exactly what you worked for your entire life.

It isn’t always easy to transition to retirement life. Your working norm must be redeveloped into your retirement norm. Think carefully through the issues that will be most important to your success and well being BEFORE you retire.

Contact any of our five offices today and schedule an appointment to discuss how we can help you with your planning or give us a call at (443) 393-7696.

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By: Olivia R. Holcombe-Volke, J.D. – Partner

Are you over the age of 18? Is your autonomy important to you – your ability to make decisions for yourself? If you ever lost that ability – ever lost the mental capacity – to make decisions for yourself, is it important to you that you personally select the person (or people) who are empowered to make decisions for you? And to specifically and personally choose what decisions they are authorized to make for you, and how – that is, the specific parameters of their authority to act on your behalf?
I have yet to ask these questions of an autonomous adult and hear any answer other than “yes.” While we may not always want to make the truly important decisions – like what to eat for dinner on a Tuesday – the reality is that when it comes to health and finances, we all want to decide such things for ourselves. And, while it may not be at the top of your mind while you are mentally capable of making such decisions (and busy doing so – busy with life!) – this also means that, if you are ever mentally incapable of making such decisions, you absolutely, unequivocally, want the person and specific decision making authority to have been chosen and specified by you.
Luckily, the law allows you to do so, by signing two, fairly straightforward but immensely powerful, documents: an Advance Directive (sometimes known as a Healthcare Power of Attorney), and a Financial Power of Attorney.

An Advance Directive allows you to name an authorized person as your Agent (as well as any successor/backup Agents – as many as you want), to speak on your behalf to the doctors and other healthcare professionals, and to make healthcare decisions for you. This vital document also allows you to specifically outline and direct your Agent regarding what decisions you want made in certain end-of-life situations, as well as your organ donation preferences, and instructions regarding your final funeral/burial/cremation/memorial service arrangements.

A Financial Power of Attorney allows you to name an authorized person as your Attorney-in-Fact (as well as any successor/backup Attorneys-in-Fact – as many as you want), to access, manage, and use your assets on your behalf (to take care of you and your needs). This vital document also allows you to specifically outline and direct your Attorney-in-Fact regarding what decisions you want made regarding specific assets, and to authorize (or not) the use of certain asset protection strategies in the event you ever need Medicaid or other needs-based government benefits to pay for your care.

What happens if you become mentally incapacitated and you do not have these vital documents in place? Quite simply, the court must get involved. If it is determined by physicians that you are not mentally capable of making decisions for yourself, and you do not have an Advance Directive (for healthcare) and Financial Power of Attorney (for finances) in place, then the court appoints a guardian of your person (for healthcare) and of your property (for finances) to make all such decisions for you, all to be supervised and overseen by the court. This guardian may be known to you, or may be a complete stranger (often, an attorney) – it is entirely left to the discretion of the court, depending on various factors. This – adult guardianship – can be expensive (the court, the lawyers involved, and the court-appointed guardian do not work for free), embarrassing (no independent and autonomous adult likes the idea that there might ever be an open courtroom in which their mental inability and the decisions that are made for them are aired to the public), and can result in decisions and actions that may not be the decisions or actions that the once autonomous adult would have wanted.

Notice that I haven’t even mentioned the “what happens to my stuff when I die?” aspect of estate planning – often the only aspect of which most people think or are aware. This is because the other aspect of estate planning – the “what happens to me and my stuff if I am still alive, but mentally incapable of managing and deciding health and financial issues for myself?” – is, when most people are asked, often considered equally if not more important, and is certainly more widely applicable. While it may be true that some adults feel they do not have enough “stuff” to worry about distributing after death, and therefore do not feel the need nor worry about having a Last Will and Testament in place – all autonomous adults can agree that they absolutely want to control what happens to them and their “stuff” while they are still alive.

Not to diminish the importance of having a Last Will and Testament, which, of course, allows you to dictate where or to whom your estate will go at your death, and by whom it will be handled. And certainly, for parents of minor children (that is, children below the age of 18), a Will should absolutely be in place to name the parents’ preferred guardian of the minor children(that is, who will be legally responsible for the minor children until they become 18, in the event that both parents die).

A common misconception that leads many people to believe they do not need these vital documents is the idea that if they are married, their spouse will be authorized to handle all decisions for them, and be able to access all assets (before and after death). This simply is not true. Even if you are married, you must have an Advance Directive and Financial Power of Attorney in place to ensure that anyone, including your spouse, has the authority to act on your behalf while you are alive, and, at a minimum, a Last Will and Testament in place to ensure that your desired distribution of your “stuff” will take place at your death, whether that desired distribution is to your spouse or otherwise.
This is not to say that an Advance Directive, Financial Power of Attorney, and Last Will and Testament are the be-all and end-all for everyone. There may well be the need and desire for additional or alternative estate planning strategies, such as Revocable Living Trust or Special Needs Trust-planning. But, at a minimum, every autonomous adult should have these three essential documents in place.

Chances are, you or someone you know is over the age of 18, and has not implemented these vital estate planning documents. Encourage that person to contact us as soon as possible. There is no crystal ball that will allow us to see into the future. But having a plan in place for the unknown will allow us to fully enjoy the present.

Tags: Asset Level, estate planning
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If you or a loved one are a federal or US postal employee or an active or retired Uniformed Services member, it may be worth looking into the Federal Long Term Care Insurance Program (FLTCIP).

First, the basics of long term care: it isn’t professional medical care, it isn’t seeking recovery or a cure. It includes home care, including by family members, assisted living facilities, nursing homes, adult daycare centers, and continuing care communities.

Today, the costs of long term care average around $32 thousand a year for 6 hours a day, 5 days a week in-home care, and $47 thousand for assisted living facilities. To give specific examples of long term care costs around the country: in San Francisco, in-home care costs approximately $39 thousand a year, while nursing home care costs around $206 thousand; in Phoenix, Arizona, in-home care costs about $34 thousand per year, whereas nursing home care costs around $82 thousand; in Bismarck, North Dakota, nursing home care can cost up to $210 thousand per year, while in-home care costs only around $37 thousand; in Washington, DC, nursing home care costs up to $137 thousand a year, whereas in-home care costs around $35 thousand; in Orlando, Florida, in-home care costs around $31 thousand, nursing home care costs up to $108 thousand.

These costs are rapidly rising, and they don’t tend to be covered by long term disability insurance, health insurance or Medicare. Medicaid tends to be limited to nursing home care, and only if the client qualifies under strict income and asset guidelines, which may require spending down on assets.  Real property, retirement assets, and income may all contribute to pushing you over the income and asset guidelines. The Veterans Administration (VA) may help with long-term care but it depends on whether a Veteran served during wartime, the medical needs of the Veteran, and whether a Veteran has low income and assets.

That leaves several options to pay for the costs of long-term care. Self-funding, including income and investments; government programs, such as Medicaid or the VA, the limitations of which are discussed above; or long-term care insurance. The private market’s options for assisted living can be too pricey for the middle class, but often that same demographic isn’t eligible for public programs like Medicaid or subsidized housing. Private long-term care insurance is definitely worth considering but maybe too pricey depending on a person’s age and health status.

However, if you are a federal or US Postal Service employee, or an active or retired Uniformed Services member, the FLTCIP may be the best option for filling that gap. The FLTCIP is available for employees, military, and annuitants; it is also available to relatives, including spouses, partners, parents, parents-in-law, step-parents, and children.

Because there is the issue of eligibility to consider, we’ll be brief on the FLTCIP’s benefits. But the program does offer security in that it is the largest employee LTC insurance program in the country, and it is underwritten by John Handcock. Furthermore, we mentioned that one of the issues with private LTC insurance is the lack of flexibility. The FLTCIP offers the ability to design the client’s plan in three areas, with choices on the daily benefit amount, benefit period, and inflation protection, based on the client’s preferences and needs. It is therefore worth considering whether you or a loved one may eligible for the FLTCIP when considering how to pay for long term care needs.

The challenge of how to find and pay for long term care is one of several services we provide seniors and their loved ones. All avenues are explored, including private long term care insurance, Medicaid and Veterans pension benefits. If we can be of assistance, please don’t hesitate to reach out to Elville and Associates by clicking here to send us a message or by calling us at (443) 393-7696.

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Sandy was a caregiver for her 85 yr-old mother. Sandy still worked full time and would help her mom in the evenings and weekends. Unfortunately, Sandy was in a serious car accident and would be out of work for at least 8 weeks. She now faced the challenge of paying her bills while out of work and finding someone to help her mom until Sandy could get back on her feet.

There are only so many ways you can plan for the unexpected.  Short term disability insurance is one. Yet many people may not know exactly what short term disability is or how it can benefit someone who has experienced the unexpected illness or injury that may prevent them from being able to work for an extended period of time.   There are also the planned events, such as surgery to correct a chronic health issue for which you will need some income to help cover the procedure and other expenses incurred during your time away from your job. It is estimated that on a yearly basis, an average of 5.6 percent of workers in America will have a need for short term disability.  Here is an overview of what short term disability insurance is and what it can and cannot do for you during the unplanned and most likely unwanted downtime you hope you never have.

Short term disability is used for non-work related illnesses or injuries, as opposed to a worker’s compensation policy, paid for by the employer, that provides income replacement for a work-related injury. As the name suggests, short term disability is active for a limited period of time, is often offered as part of a benefits package, and may be purchased on your own through a private insurance agent if your employer is not mandated to offer it. Currently, there are only five states where it is mandatory for employers to offer this type of coverage to their employees.  These states are California, New York, New Jersey, Hawaii, and Rhode Island. Of note, the income replacement from a short term disability insurance policy will seldom cover 100% of your income but typically will cover anywhere from 40% to 70% of your income depending on the policy terms.

The time covered by short term disability can range from 30 days to sometimes up to a year depending on the policy, but it is important to know that your job is not guaranteed should you need to use short term disability.  It may be possible to transition to a long term disability plan once short term benefits are used up and you are not ready to return to work. Another important thing to know is what the elimination period is for the policy. Employers do not want to start paying for an illness or injury that could possibly be covered by an employee’s “sick days” fund, therefore there is an elimination period associated with the policy, which means that the policy may dictate how many days you would have to be off work with the disability before a claim could be filed.

Fortunately, there are many conditions that qualify for short term disability that even include many mental health issues.  As mentioned earlier, if there is a need to be off work for a planned procedure that will render you unable to return to work for a while, you will want to be sure your policy covers that issue and time needed to recover when planning for your care needs.   There may be limits to what one employer covers versus another, and conditions that are covered should also be part of your consideration when choosing a plan should you decide to purchase your own policy. Unfortunately, pre-existing conditions are not covered by short term disability, nor can benefits be used to take time off from work to care for other family members who are sick or injured.   In general, the short term disability plan, when you are informed and knowledgeable of how it works, can be a benefit that may provide some peace of mind should the unexpected health crisis happen.

We help people of all ages plan for the unexpected so that your wishes will be carried out. Through the use of legal documents like a living trust, power of attorney and health care directives, we make sure your home, your savings, and your family is taken care of if the unexpected happens.

If you have questions or would like to discuss how you can plan for the unexpected, please don’t hesitate to contact Elville and Associates at any of our six locations by sending us a message here or by dialing (443) 393-7696.

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If you or a loved one is in the market for a home that will meet a physical or developmental need, there are some tips to consider before you begin the process. The US Department of Housing and Urban Development (HUD) website lists state, local government, and other organizations that can help you. At the federal level, the agency also provides information about HUD’s Section 504 regulations that define federal financial assistance, in particular, Section 811 outlines its program for Supportive Housing for Persons with Disabilities. It is important to research what assistance is available before contacting a realtor.

Once you have a strategy in place to utilize available programs to minimize costs, it is time to think about the housing location. Is the special needs individual employed or a student? Can they drive a car or do they need to be near public transportation to get to work or school? If the individual is a K-12 student, pay particular attention to school and after-school programs. Research what is available as many schools have programs for children with special needs that are offered outside of the standard school zoning in some neighborhoods. Also, take into account the proximity of hospitals and doctors. Consider the location of shopping (food and otherwise), dining and entertainment.  Be sure to note whether there are any restrictions regarding support animals (if relevant to you or your loved one).

Once the location list is narrowed down talk to others who have faced the same housing challenges; whether it is a support group, school parent message boards, housing assistance advocacy group, or online forum you can save a lot of time and money by learning from others who have gone before you. In these discussions ask a lot of follow up questions. Dialing into the details can help save you missteps in your process.

Once you have identified a general location that meets some of the criteria above, it is time to canvas the availability of appropriate homes. When thinking about the layout and design of a home consider the rambler or ranch style house. They have a long low profile, very few stairs to navigate (if any) and have minimal exterior and interior decoration. These rambler attributes make the home reasonably easy to modify.

If mobility is an issue, look for a house with smooth floorings such as hardwood floors or laminate flooring. Smooth surfaces provide easier access to shower and bathroom areas. Also, check to see that the doorways in the home are wide enough to accommodate a wheelchair. Assess how many modifications would be required to address your or your loved one’s needs while remaining within a budget. Grab bars, ramps, and other similar amenities are reasonably simple to add, and some states, cities, and counties will help pay for the modifications.

Not only are there federal, state and local agencies to help you meet the requirements of a special needs home, there are also lenders and realtors who specialize in financing and purchasing this type of home. A good lender and realty agent will be familiar with the agencies and government programs that can help their client get approved for a loan and maneuver the housing marketplace for the right fit.

Realtor.com, Zillow, Homesnap, and Redfin are just a few of the online options to explore real estate from your home or mobile device. Just plug in an address of a home in the area that meets your criteria and you will get stats on that home as well as an aerial map of the neighborhood that allows you to click on and get information about homes that are not currently on the market but may be soon.

Realize this process takes time. Identify a strong, competent real estate agent who understands your special needs parameters and is willing to put forth the time to find the right housing solution for you. Also, speak with a trusted attorney to ensure you have maximized all potential program benefits available to you. Buying a home is probably the biggest purchase you will make in your life. Buying a home that accommodates special needs adds a layer of complexity that should be well thought out before hiring a realtor.

If you have questions or would like to discuss your particular situation, please don’t hesitate to reach out. You can get in touch with Elville and Associates by clicking here to send us a message or by dialing us at (443) 393-7696.

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By – Jeffrey D. Stauffer – Community Relations Director – jeff@elvilleassociates.com, 443-393-7696 x117, @elvilleassoc

WHEN and WHERE — CHOOSE FROM ONE OF THREE DATES:
Tuesday, October 22nd — 7 – 8:30 p.m. at the Sheraton Columbia Town Center — 10207 Wincopin Circle, Columbia 21044
Wednesday, October 23rd — 10 – 11:30 a.m. at Turf Valley Resort — 2700 Turf Valley Road, Ellicott City 21042
Thursday, October 24th — 7 – 8:30 p.m. at the Sheraton Columbia Town Center — 10207 Wincopin Circle, Columbia 21044
“Will My Estate End Up in Probate? Will I Outlive My Savings? Will My Plan Work the Way I Want?”

Presented by Elville and Associates’ estate planning and elder law attorney Nicole T. Livingston, these events are designed to educate you so that you can control your future, protect your hard-earned savings and have peace of mind.   Nicole has offered hundreds of workshops throughout her 15-year career — and it shows in her presentations!

Highlights will include:

• Wills and Living Trusts – Learn the advantages and disadvantages to both.
• Asset Protection – How to protect your assets and your family’s inheritance from creditors, divorce, and lawsuits.
• Long Term Care Planning – How to avoid losing your life savings.
• Next Spouse Protection – How to protect your assets from your surviving spouse’s next spouse.
• Probate – What is it and how to prevent it.
• Estate Taxes – What are they, and how to minimize or eliminate.
• Medicaid and Veterans Aid and Attendance Benefits – The latest laws and how to qualify for the benefits.
• IRA Protection – How to take advantage of maximizing income tax “stretch out.”
• Special Needs – How to provide for special needs (disabled) children and grandchildren.
• Legacy Planning – Good planning involves more than money. Learn some powerful tools to help instill important values in younger generation family members.

Light fare and refreshments will be served. RSVPs are required for these events, so please respond to this email or use the RSVP links provided to secure your seat!

We look forward to hosting you!

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Tags: estate planning, Workshops
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While the US economy is in a cycle of more than ten years of economic growth, its citizens, even the “wealthy” ones, are worried about running out of cash and are scared to spend. Bloomberg.com is reporting many retirees, and near-retirees are sitting on their wealth in much the same way large corporations are hoarding stockpiles of cash. Even famed investor Warren Buffet and his multinational conglomerate holding company Berkshire Hathaway Inc are side-lining cash in excess of $122 billion.

Americans are experiencing a strong economy. The Gross Domestic Product (GDP) is steadily growing. There are low-interest rates, low unemployment, a stable currency, and more than $1 trillion of available investor cash. For those retirees who are financially well off then, why is there anxiety about money and reluctance to enjoy it in retirement years? Yes, many of the wealthy are planning on leaving a legacy to their heirs, but something else is happening.

Wealth in the US is becoming more concentrated among fewer households. Consolidating wealth is like consolidating power. Ultimately there is little difference between the two. The Americans who have most benefited from this ten-year boom cycle in the American economy are averse to spending their money. They want to survive an economic downturn and still maintain their elite financial status. This conservative approach will likely guarantee them a very comfortable lifestyle even in the event of bleak financial times. Former Brookings Institution fellow Matt Fellowes states, “It’s trillions and trillions of wealth that is not benefiting anyone except asset managers.” The rich, sitting on their wealth, create stagnant money, which negatively impacts the vitality of the American economy.

The Federal Reserve provides a quarterly balance sheet of all individual and charitable monies and America’s combined net worth now stands at $109 trillion. It is a lot of money; however, it has disproportionately flowed to the wealthy. Celebrity and wealth-obsessed culture saturates Americans with images of the rich with expensive real estate, private jets, and yachts, and attending posh philanthropic parties. The reality of the average millionaire in America is far more frugal than their Instagram and paparazzi driven counterparts. Retirement experts often disagree as to why these conservative millionaires are unwilling to enjoy the fruits of their lifelong labors.

Being cautious with money is inherently prudent, particularly at the height of an economic boom cycle. Even without market uncertainty, a key characteristic of modern capitalist economies is a boom-bust cycle. A process of economic expansion (boom) will be followed by economic contraction (bust), and the cycle occurs repeatedly.

All Americans, even the wealthy ones, are experiencing an uncertainty about their economic future. Will their rate of return on investments be able to address increasing medical costs? Will they have enough streams of income to support themselves when taking into account their longevity risk? Collectively, Americans are not saving enough to accomplish a successful retirement. However, individually, wealthy Americans are fearful of losing their financial position in a severe market downturn. These wealthy Americans have already lived through harsh economic times, particularly the Great Recession. This economic bust was triggered by the subprime mortgage crisis and the collapse of the US housing market bubble. Market bubbles present themselves from time to time, and if the free market successfully deleverages them, there is little economic incident. But when the bottom drops out, bleak economic times follow.

Once you achieve wealth, it becomes an inherent part of your identity, and consequently spending your wealth is like spending your own identity’s capital. Additionally, as you age, the tendency is to become more risk-averse, according to the National Institutes of Health (NIH). With the bulk of the wealth of America in older households than in previous decades, it is no surprise that risk-averse strategies are in play. A lifetime spent acquiring wealth and watching accounts and investments mature then morphs into retirement years of asset spending and the dilution of wealth. The majority of wealthy Americans are not keen to adapt to the life cycle of asset accumulation followed by retirement spending. Their preference is to live frugally, retaining as many assets as possible to be able to ride out an economic downturn.

Planning for retirement can be stressful. Having a proper estate plan in place can eliminate much of the stress, especially when it comes to transferring assets to children who may not be ready to handle large sums of money.

We can help. Give Elville & Associates a call at any of our Maryland locations to discuss your wishes at (443) 393-7696, and how to design a plan that will help carry those wishes out.

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A family caregiving meeting is an essential tool when dealing with the care of an aging loved one. These meetings are beneficial for helping to keep all family members abreast of decisions that need to be made, changes in diagnosis or prognosis, and helps to ensure that all family members feel that they have a voice. Family meetings can also help to keep caregiving responsibilities from falling solely on the shoulders of one family member. In addition, family caregiving meetings can foster cooperation among family members and lessen the stress associated with caring for an aging loved one.

Who should attend a family caregiving meeting?

There are a number of people who should be included in a family caregiving meeting. First and foremost, it is important to include the aging loved one in the meeting whenever possible. This helps the aging loved one to feel that they are being heard and that their opinions and thoughts are being considered. If a spouse is living, the spouse should be included, as well as any children and possibly siblings of the aging person. Some families may choose to include other family members, but this really varies from one family to another. Anyone else involved in care for the person should also be there. This could include paid caregivers, family friends, or neighbors. Depending on family dynamics, a facilitator can be helpful in running the meeting.

When should a family have a caregiving meeting?

First, it is important to note that family caregiving meetings are not a one and done event. They must occur on a regular basis. The first family meeting can occur before an aging loved one actually needs care. This can give the person who may eventually need care more say in their future care, but oftentimes this does not occur. Most families find that the initial meeting needs to occur when an aging loved when begins to show signs of needing care or when a diagnosis is given that determines care will soon be needed. In addition, meetings should be scheduled regularly to discuss changes in the diagnosis, prognosis, or general needs of the loved one or the caregivers.

How can a family hold a successful caregiving meeting?

The key to having a successful caregiving meeting is cooperation. This doesn’t mean that family members will agree on everything, but it is important that all family members are respectfully heard and considered. Families must be willing to compromise and seek the best plan for their aging loved ones. Additionally, a smoothly run meeting should have an agenda and families should try to stay focused on the items included on the agenda. When holding a meeting, always put things in writing and be sure that all those involved get a copy of the important information and everyone’s responsibilities.

What challenges do families face in caregiving meetings?

One of the biggest challenges to family caregiving meetings is the family’s history. All families have their own dynamics that can cause problems in a caregiving meeting. There may be members of the family who are at odds with one another. This can become an obstacle to having a successful caregiving meeting. The role that each family member plays can be a challenge. Some members may be overbearing and demand control, while others are peacemakers and do not feel free to share their thoughts. Another challenge is that some family members may be in denial of the severity of an aging loved one’s needs. This may make it difficult to get a consensus for care.

Family caregiving meetings are beneficial and necessary when an aging loved one can no longer care for themselves. These meetings can help to divide the responsibilities of caregiving and reduce the stress placed on the family members. It is important that families remember that the meetings are for the care of their loved one and cooperate with one another to help the process to run more smoothly and successfully.

If you have any questions about something you have read or would like additional information, please feel free to contact Elville & Associates in Columbia, Maryland by clicking here to send us a message or by calling us at (443) 393-7696.

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Tags: Annual Client Education Event
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