When will My Stimulus Check Arrive?

May 21, 2020

There have been a few hiccups in the distribution of stimulus checks, and some people may have to wait months before their check is delivered. Most of us are able to monitor the status of our check by using the IRS’s Get My Payment tool. However, for many Social Security beneficiaries, they’ll see a message that says “Payment Status Not Available.” That’s because a lot of Social Security recipients don’t earn enough to file tax returns.

Motley Fool’s ’s recent article entitled “Social Security Beneficiaries: Here’s When You’ll Get Your Stimulus Check” advises that if you are unable to track your payment, here’s when you can expect to receive your stimulus check if you’re collecting Social Security benefits.

Those first to see their stimulus checks will be the ones who have their direct deposit information on file with the IRS. The agency will deposit the stimulus check straight to their bank account.

However, if you receive your benefits in the mail via paper check, or if you’re not certain if your bank account information is on file, you can provide your information through the Get My Payment tool. This will help you get your check faster.

While using direct deposit will ensure you get your check the quickest, you can get your check in the mail instead if your bank account info isn’t on file. The IRS started sending stimulus checks the week of April 20, and it expects to mail out about five million checks per week. At that rate, it could take 20 weeks for all checks to be delivered.

Whether you receive your check in days or months will depend on your income. The IRS is sending checks in a particular order, and those with the lowest-income individuals will get their checks first. If your income is nearer to the $99,000 per year income limit (or $198,000 per year for married couples), you might not receive your check until late August or early September.

If your income is somewhere in the middle, it’s estimated that you’ll get your check sometime this summer.

If you’re receiving Supplemental Security Income (SSI), you’ll see your stimulus payment in May, according to the IRS. Whether you receive that money via direct deposit or paper check will be based on whether the IRS has your bank account information on file.

The COVID-19 pandemic has caused a real financial hardship for millions of Americans, and waiting for your stimulus check can be stressful for you (or your parent), especially if money is tight and you need the extra money. However, it’s a little easier when you can at least calculate when your cash is expected to be delivered.

Reference: Motley Fool (April 27, 2020) “Social Security Beneficiaries: Here’s When You’ll Get Your Stimulus Check”

Do I Need an Estate Plan with a New Child in the Family?

May 19, 2020

When a new child is born or adopted, the parents are excited to think about what lies ahead. However, in addition to all the other new-parent tasks on the list, parents need to also address a more depressing task: to make an estate plan.

When a child comes into the picture, it’s important for new parents to take the responsible step of making a plan, says Motley Fool’s recent article entitled “As a New Parent, I Took These 3 Estate Planning Steps.”

Life insurance. To be certain that there’s money available for your child’s care and to fund a college education, parents can buy life insurance. You can purchase a term life insurance policy that’s less expensive than a whole-life policy and you’ll only need the coverage until the child is grown. Or you can buy a permanent policy that also builds equity for any purchase over time.

Create a will and a trust. A will does more than just let you direct who should inherit if you die. It gives you control over what happens to the money you leave to your child. If you were to pass and he wasn’t yet an adult, someone would need to manage the money left to him or her. If you don’t have a will, the court may name a guardian for the funds, and the child might inherit with no strings attached at 18. How many 18-year-olds are capable of managing money that’s designed to help them in the future?

And a trust for your young child can spell out when he or she will inherit, either as a part of your will, or in a separate living trust.

Speak to an experienced estate planning lawyer to get help making sure your will is valid and that you’re taking a smart approach to protecting your child’s inheritance when you make an estate plan.

Designate a guardian. If you don’t name an individual to serve as your child’s guardian, a custody fight could happen. As a result, a judge may decide who will raise your children. Be sure that you name someone, so your child is cared for by people you’ve selected, not someone a judge assigns. When you make an estate plan, have your attorney make provisions in your will to name a guardian, in case something should happen. This is one step as a new parent that’s critical. Be sure to speak with whomever you’re asking to be your child’s guardian and make sure he or she is okay with raising your children if you can’t.

Estate planning may not be exciting, but it’s essential for parents.

Contact a qualified estate planning attorney to create a complete estate plan to help your new family.

Reference: Motley Fool (Feb. 23, 2020) “As a New Parent, I Took These 3 Estate Planning Steps”

Setting up a Power of Attorney in Virginia: Mistakes to Avoid

May 15, 2020

People often ask me as an estate planning lawyer how to set up a power of attorney in Virginia. It isn’t hard, but as with any legal strategy, it can be critical to consult an expert. Just like online wills, an online power of attorney can be a problem. Whether it’s done online or by an attorney, there are key mistakes to avoid.

First, to manage your affairs when you are disabled, you need the right power of attorney, not just any power of attorney. Many have a limit on gift-giving while you’re disabled. But those restrictions may leave your agent unable to make permissible or transfers that might help you or your parent qualify for Medicaid or VA benefits.

Second, I also see powers of attorney which name the wrong person to act as financial agent when a person becomes incapacitated. The person first named may have become disabled or have died since you signed it, and you may have failed to name a substitute agent in that case. Or the person named may now have become untrustworthy— more interested in helping herself than you. And that can be costly.

Third, is your power of attorney accessible, does your agent even know he’s named, or where your important papers are kept? Signing one is useless if nobody knows where it is when you need it.

You may know how to fix a carburetor, a leaky faucet or your laptop computer, or be able to teach your Yellow Lab to juggle. But don’t be penny wise and pound foolish when it comes to planning for your own disability, or that of a parent or other loved one.

And while you are Googling around about powers of attorney, you might look for a comprehensive plan for your disability, which could involve trusts, asset protection planning, and planning for medical decision making. A qualified estate planning lawyer or elder law attorney is often the best place to start.

Probate_estate_administration_Richmond_Virginia

C19 UPDATE: Is Your Estate Plan COVID19-Ready? Three Things to Review Now

May 14, 2020

Even if you have done comprehensive estate planning with the guidance of a qualified attorney, you may want to re-evaluate certain elements of your plan now, through the lens of the coronavirus pandemic. Why is that? There are two uniquely challenging aspects of this pandemic that your current plan may not adequately address.

Medical treatment for severe cases of COVID19 frequently involves intubation and ventilator therapy to combat respiratory failure … and
Quarantine and isolation orders blocking hospital visitors create some communication barriers between patients, doctors and family members.

How might these unique challenges impact your estate plan?

Living Wills. If your living will contains a blanket prohibition on intubation, you may want to reconsider that decision.

Durable Powers of Attorney (DPOA). Given the communication difficulties that may arise when a patient is hospitalized during this pandemic, you may want to revisit the terms of your DPOA to make it easier for your agent to act on your behalf.

Advance Medical Directive. An advance medical directive is a health care proxy document which allows you to appoint someone else to act as your agent for medical decisions when you cannot act for yourself. Under normal circumstances, this person would likely confer with your attending physicians in person and again, these in-person communications may be difficult right now. You want to add language to expressly authorize electronic communication with your agent.

A qualified estate planning attorney, who focuses exclusively in this area of the law, can advise you on whether your current plans accurately represent your wishes during this uniquely challenging time.

Resource: ElderLawAnswers, Three Changes You May Want to Make to Your Estate Plan Now Due to the Pandemic, April 30, 2020

Am I Making One of the Five Common Estate Planning Mistakes?

May 13, 2020

You don’t have to be super-wealthy to see the benefits from a well-prepared estate plan. However, you must make sure the plan is updated regularly, so these kinds of mistakes don’t occur and hurt the people you love most, reports Kiplinger in its article entitled “Is Anything Wrong with Your Estate Plan? Here are 5 Common Mistakes.”

An estate plan contains legal documents that will provide clarity about how you’d like your wishes executed, both during your life and after you die. At a minimum, there are three key documents:

A will
A durable power of attorney for financial matters
A health care power of attorney or similar document
And don’t forget, your beneficiary designations are a part of your plan!

With the power of attorney and health care documents, you appoint someone you trust to help make decisions involving your finances or health, in case you can’t while you’re still living. Let’s look at five common mistakes in estate planning:

# 1: No Estate Plan Whatsoever. A will has specific information about who will receive your money, property and other property. It’s important for people, even with minimal assets. If you don’t have a will, state law will determine who will receive your assets. Dying without a will (or “intestate”) entails your family going through a time-consuming and expensive process that can be avoided by simply having a will.

A will can also include several other important pieces of information that can have a significant impact on your heirs, such as naming a guardian for your minor children and an executor to carry out the business of closing your estate and distributing your assets. Without a will, these decisions will be made by a probate court.

# 2: Forgetting to Name or Naming the Wrong Beneficiaries. Some of your assets, like retirement accounts and life insurance policies, aren’t normally controlled by your will. They pass directly without probate to the beneficiaries you designate. To ensure that the intended person inherits these assets, a specific person or trust must be designated as the beneficiary for each account.

# 3: Wrong Joint Title. Married couples can own assets jointly, but they may not know that there are different types of joint ownership, such as the following:

Joint Tenants with Rights of Survivorship (JTWROS) means that, if one joint owner passes away, then the surviving joint owners (their spouse or partner) automatically inherits the deceased owner’s part of the asset. This transfer of ownership bypasses a will entirely.
Tenancy in Common (TIC) means that each joint owner has a separately transferrable share of the asset. Each owner’s will says who gets the share at their death.

# 4: Not Funding a Revocable Living Trust. A living trust lets you put assets in a trust with the ability to freely move assets in and out of it, while you’re alive. At death, assets continue to be held in trust or are distributed to beneficiaries, which is set by the terms of the trust. The most common error made with a revocable living trust is failure to retitle or transfer ownership of assets to the trust. This critical task is often overlooked after the effort of drafting the trust document is done. A trust is of no use if it doesn’t own any assets.

# 5: The Right Time to Name a Trust as a Beneficiary of an IRA. The new SECURE Act, which went into effect on January 1, 2020 ends what’s known as the stretch IRA. This allowed non-spouses who inherited retirement accounts to stretch out disbursements over their lifetimes. It let assets in retirement accounts continue their tax-deferred growth over many years. However, the new Act requires a full payout from the inherited IRA within 10 years of the death of the original account holder, in most cases, when a non-spouse individual is the beneficiary.

Therefore, it can be very complicated to name a trust as the beneficiary of a retirement account (although some times, it is essential). It’s possible that either distributions from the IRA may not be allowed when a beneficiary would like to take one, or distributions will be forced to take place at a bad time and the beneficiary will be hit with unnecessary taxes. Talk to an experienced estate planning attorney and review your estate plans to make certain that the new SECURE Act provisions don’t create unintended consequences.

Reference: Kiplinger (Feb. 20, 2020) “Is Anything Wrong with Your Estate Plan? Here are 5 Common Mistakes”

Helping Your Elderly Parents during the Pandemic

May 6, 2020

Considerable’s recent article entitled “4 things you can do for your aging parents during the coronavirus pandemic” reports that 8 out of 10 deaths reported in the U.S. related to COVID-19 have been in adults 65 years old and older, according to the Centers for Disease Control and Prevention (CDC). If your parents are in one of the vulnerable categories, here are four things you can do right now to help them through the pandemic.

Shop or help them place orders online. With many areas experiencing a shopping frenzy in response to the coronavirus, personal care and household items have quickly disappeared from stores. You can help your parents by allowing them to stay home and going to the store for them and dropping off groceries on their door. You can also place online orders that can be delivered to their home.
Contact them regularly. The CDC says the coronavirus is believed to spread primarily from person-to-person contact, particularly between people who are closer than six feet from each other. Therefore, you have likely already been separating yourself from your family members, including your parents. To avoid possibly exposing your parents, use Skype, FaceTime, or call them on the phone. Stay in close communication to keep their spirits up and check on how they’re feeling. This can help you to verify their mental and physical health, as the days of social distancing add up. You can set up a schedule with specific times you’ll call, so they have something to look forward to throughout the day.
Watch for scams. We’re already hearing about the con artists coming out of the woodwork to prey on the elderly—and all of us in this medical and financial crisis. Speak to your parents about these scams, so they can protect themselves. The Federal Trade Commission has issued guidelines for avoiding scams, including the following:

Hang up on robocalls and don’t press any numbers.
Verify your sellers because many online sellers may say they have in-demand products in stock, when they actually don’t.
Don’t click on links from sources you don’t know.
Research before making donations, and if asked for donations by cash, gift card, or wiring money, pass!

Keep ‘em busy. Seniors have unique challenges when they stay at home. The inactivity that can be linked to being confined in the home can cause declines in physical health and in physical abilities. The elderly are also at greater risk of developing depression in social isolation, and their elevated risk for bad outcomes from this virus can cause higher levels of anxiety and lead to sleep difficulties and other health issues. Encourage your parents to read, play a board game, do a puzzle, or take a walk, provided that they’re keeping distance from others. Many religious groups have also transitioned their services online, and there are plenty of movies and TV shows on-demand for home viewing.

Most significantly, make certain that your parents are taking the pandemic seriously and emphasize the importance of social distancing.

Reference: Considerable (April 8, 2020) “4 things you can do for your aging parents during the coronavirus pandemic”

C19 UPDATE: How Nursing Homes Can Do Better at Protecting Residents from COVID19

May 3, 2020

It’s no secret that nursing homes across the country have been hard-hit in this pandemic and residents and their families are rightly concerned about safety.

Here are two developments you will want to watch.

Commission on Medicare and Medicaid Services (CMS) on April 30 announced a new independent commission, Coronavirus Commission for Safety and Quality in Nursing Homes, to conduct a comprehensive assessment of the nursing home response to the 2019 Novel Coronavirus (COVID-19) pandemic. The Commission will provide independent recommendations and report to CMS to help inform immediate and future responses to COVID-19 in nursing homes.
Centers for Disease Control and Prevention’s (CDC) updated guidelines for nursing homes and long-term care facilities in regard to preparing for COVID-19. You can review the guidelines and additional resources on the CDC website at https://www.cdc.gov/coronavirus/2019-ncov/hcp/long-term-care.html. You also can watch a 30-minute pre-recorded CDC webinar, Preparing Nursing Homes and Long-Term Care Facilities for COVID-19 on YouTube.

Resources: CMS.gov, CMS Announces Independent Commission to Address Safety and Quality in Nursing Homes, April 30, 2020; NPR, Trump Announces Panel to Look at Nursing Home Responses to Coronavirus Outbreak, April 30, 2020; Centers for Disease Control and Prevention, Preparing for COVID-19: Long-term Care Facilities, Nursing Homes

Suggested keywords: Coronavirus Outbreak in Nursing Homes, COVID19 in Nursing Homes

How to use Telemedicine during the Pandemic..and After

May 3, 2020

On Friday I spoke with a friend who lives in a Richmond retirement community now on total lockdown. Several residents of her building have died from COVID-19. She’s coping well, but she is very careful. I’m very concerned for her. As you know, the COVID-19 pandemic is taking lives not just here, but all over the country. State and local leaders have issued stay-at-home orders to try to thwart the spread of the disease. COVID-19 can cause serious complications in the elderly and in those, like my friend, with underlying health conditions.

A Midwestern friend recently sent me an article from Missouri’s News Tribune titled “Telemedicine helps elderly patients stay home during pandemic,” which explains that, for some services, health care providers have found telehealth can assist many patients, including some of the most vulnerable, who can stay in the comfort of their own homes. (It is ironic that she sent me this article. I’ve got my first “telemedicine” appointment myself this week!)

Many healthcare providers are launching telemedicine or video visits. Those patients who want to participate in video visits with their physicians, should contact their physicians’ offices for more information about the availability. In my own case, I had a routine check-in scheduled for over a year, and my doctor’s office called to say the doctor wanted to do the appoint by “Zoom”.

This is a trend. The federal government announced an expanded use and relaxed rules for Medicare telemedicine in response to the coronavirus pandemic, effective March 6, 2020. Rural and site limitations have been removed, and telehealth services can now be provided, regardless of where the Medicare patient is located geographically and by type of site. This allows a patient to be at home and communicate with their doctor.

Medicare also expanded the list of eligible services provided via telehealth. Medicare patients can now get a wider range of healthcare services from their doctors without having to travel to a doctor’s office, and these telehealth services are not limited to health issues related to patients with COVID-19.

It’s a win-win. Healthcare professionals are able to take care of patients and keep staff on-site. Staff are getting more hours.

At some facilities, the need for patients to see their doctors, while not exposing them to the COVID-19 virus, is a motivating factor for the expansion of telehealth offerings.

The use of online resources allows patients to meet with their providers remotely from their homes. It includes care for many common illnesses and injuries, preventive care, mental health conditions and a range of other medical needs.

Poeple seeking to avoid medical office right now should contact their doctor’s office to see if telehealth is an option for them.

Reference: News Tribune (April 12, 2020) “Telemedicine helps elderly patients stay home during pandemic”

Do You Have an Estate Planning Blueprint?

May 1, 2020

That warning is applicable to people of all ages. Your assets can go to one of four spots:

Your family
Your friends
Charitable organizations or
The government.

Therefore, to avoid the last choice, sit down with an estate planning attorney and ensure that your assets are being allocated how you want them to be.

Forbes recent article entitled “How To Create An Estate Planning Blueprint” reminds you to make sure your plan is optimized, so your beneficiaries can avoid probate and make the most of the gifts you plan to leave them.

Here are some ideas on how to make sure your estate is as planned as possible.

Set Regular Check-Ins. Estate planning isn’t a “set it and forget it’ task.” It needs regular reviews. Your estate is constantly evolving because of life events, changing laws and your financial circumstances. You need to talk to your attorney to make certain that all your assets, as well as circumstances, such as the birth or adoption of a grandchild, are recognized in your will. These meetings should be held every few years—but may be more frequent due to occurrences, such as a births, deaths, or divorces.

Think of the Future. Forecasting into the future can give you peace of mind now and make things easier for your beneficiaries. Failing to plan can create future problems for your heirs.

Look at Your Options. If you decide to create a trust, know your options and discuss different setups—and their tax implications—with an experienced estate planning attorney. Working through the pros and cons of options, can help you to determine the best options for you and your situation.

Tell Your Beneficiaries about Your Wishes. Let your beneficiaries know what you’re planning, so there are no surprises or hurt feelings. There’s no need to detail all of the financial details. Just give a summary of what you anticipate, as well as details about who will be the trustees and executors of your estate.

When it comes to your estate, paying for the professional services of a qualified estate planning attorney now, can help you and your family avoid issues in the future.

Reference: Forbes (April 1, 2020) “How To Create An Estate Planning Blueprint”

C19 UPDATE: Keeping the Most Vulnerable Safe as the Economy Slowly Reopens

April 29, 2020

A lot of communities are easing social-distancing restrictions originally put in place to fight the spread of coronavirus. Virginia is looking at addressing restrictions one community at a time. Even as stay-at-home orders begin to expire, it’s especially important for people at higher risk to remain vigilant.

High-risk groups include:

People who are 65 or older
People of any age who
- Live in a nursing home or long-term care facility
- Have chronic lung disease or moderate-to-severe asthma
- Have serious heart conditions
- Are severely obese (body mass index >40)
- Have diabetes
- Are undergoing dialysis for chronic kidney disease
- Have liver disease
- Are otherwise immunocompromised

In addition to reducing exposure, one of the best ways to keep yourself and at-risk loved ones safer is recognizing the symptoms of COVID-19 and getting appropriate medical help.

COVID-19 symptoms include fever, cough, and shortness of breath.

Emergency warning signs for COVID-19 requiring immediate medical attention include:

Difficulty breathing or shortness of breath
Persistent pain or pressure in the chest
New confusion or inability to arouse
Bluish lips or face

Kaiser Health News also warns that doctors also are reporting instances of unusual symptoms in seniors “who present without the typical cough, fever and shortness of breath. Instead, these elders may simply appear off; sleeping more, losing appetite and becoming confused and apathetic. Sometimes they are dizzy, stop speaking or simply collapse.”

Recognizing possible early symptoms of COVID-19 can help seniors get needed help quickly and prevent further spread of the virus.

Resources: Kaiser Health News, Seniors with Covid-19 show unusual symptoms, doctors say, April 23, 2020; Administration for Community Living, What do Older Adults and People with Disabilities Need to Know?

Richmond Virginia Estate Planning, Elder Law, And Asset Protection

Do I Need an Estate Plan with a New Child in the Family?

Setting up a Power of Attorney in Virginia: Mistakes to Avoid

C19 UPDATE: Is Your Estate Plan COVID19-Ready? Three Things to Review Now

Am I Making One of the Five Common Estate Planning Mistakes?

Helping Your Elderly Parents during the Pandemic

C19 UPDATE: How Nursing Homes Can Do Better at Protecting Residents from COVID19

How to use Telemedicine during the Pandemic..and After

Do You Have an Estate Planning Blueprint?

C19 UPDATE: Keeping the Most Vulnerable Safe as the Economy Slowly Reopens

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