We seem to live society that is somewhat obsessed with celebrities lives. Some media reports are instructive with respect to estate planning dos and don’ts. It was recently announced that Frenchwoman Liliane Bettencourt, who is the second richest woman in the world, has been declared mentally incompetent to handle her own affairs. Bettencourt is 88 years old and reportedly suffering from Alzheimer’s induced dementia. Her family members have been involved in court struggles contending that she has been making bad financial decisions, including the diversion of some $1.4 billion to French renaissance man, Francois-Marie Banier. Bettencourt reportedly sought assistance to create a new will making Banier the sole beneficiary of her estate. The French court has given Bettencourt’s daughter Francoise Bettencourt-Meyers and her two grandsons control over the Bettencourt fortune, which is estimated to be valued at about $23.5 billion. According to Forbes this makes Liliane Bettencourt the 15th richest person in the world.

Situations like these provide a window into the way things can go if you do not engage in appropriate planning when you are in full control of your faculties. Whether or not the heiress was a victim of financial exploitation is in question. It may be safe to say that most people would not choose to give away $1.4 billion to someone who is not a family member and then change their will to disinherit their only child and grandchildren when they are in their 80s when they are of sound mind. Some 40% of people age 85 and up suffer from Alzheimer’s disease. So yes, something like this could happen to you, which emphasizes the importance of seeking a qualified estate planner to assist in putting together a sound estate plan.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

There are a lot of details to take into consideration when you are planning your legacy, and the best way to address them is with the assistance of an experienced estate planning attorney. Rather than being consistently confronted with a series of unanswered questions as you think things through it is much simpler and more efficient to sit down with a legacy planning professional and work through the process from an informed perspective.

Experienced estate planning attorneys know how to proceed under any circumstances and they also understand how to adjust your estate plan on an ongoing basis as changes both within your life and throughout society as a whole take place that impact your existing plan.

One of the intricacies that people often face when they are engaged in inheritance planning involves providing for minor children. There are a number of different ways to proceed, and one of them would be to create a trust and make the child the beneficiary.

You can stipulate whatever you would like to in the trust with regard to what expenditures the trust is empowered to make in behalf of the child while he or she is still a minor. The grantor could then go on to set forth the terms for distribution of assets after the child becomes a legal adult.

Some people allow for the transfer of the total lump sum when the child reaches a particular age, and others arrange for more gradual distributions. You could even choose to include incentives such as allowing for regular distributions while the beneficiary remains in college with a lump sum to follow upon graduation.

Short of creating a trust you could name a property guardian in your will or appoint a custodian under the Uniform Transfers to Minors Act. At a minimum, parents of minor children must have a will where a guardian of the person of your children can be named.

Providing for minor children is an important part of many estate plans. If you would like to learn more details, simply arrange for a consultation with an experienced estate planning attorney.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

Estate planning involves consideration of the time when you are incapable of making your own decisions or when you are deceased. This requires the choice of representatives to administer your estate. One of those representatives includes your trustee or personal representative. If you have a trust or will then you have selected someone to perform the hands-on tasks involved in administering your estate. This individual should possess a certain measure of business acumen to handle all of the affairs of the estate. Property will be liquidated in most cases, there will be bills to pay, and the executor will have to bring in a probate attorney and in many cases an accountant and an appraiser. It is natural for some people to automatically choose someone close to them to be a personal representative, but it is not merely a ceremonial role. The practical responsibilities that accompany this title is something to take seriously.

There may come a time when you can no longer make sound medical and financial decisions for yourself. To address this issue you should be prepared with a durable power of attorney for health care and a durable financial power of attorney. Again, you should consider your choice of representatives carefully. You don’t have to select the same person to serve both roles. In many cases the best financial mind is not going to be the person that you would like to see making your medical decisions.

Choosing the people who will take care of your affairs upon your death or incapacity is an important part of the process of estate planning. Careful consideration should be given to who who would fill these important roles in your estate plan.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

There are a number of misconceptions about estate planning that are simply not true. One of them involves the notion that the estate tax only applies to the “rich.” First of all, how is the word “rich” being defined in this context? Multi-billionaires may easily fit this description. However, would you consider yourself rich if you and your spouse accumulated say $2 million over the course of your lives, including any inheritances you may have received? Most people would say no, but if you had an estate valued at $2 million and you took no estate planning steps your estate would be subject to approximately $550,000 in estate taxes if you died in 2013 as the laws stand right now.

Another misconception is that legal representation is too expensive to be worth it. In reality, most people are going to save far more money than they pay when they work with an estate planning attorney. This is why wise people retain legal counsel to assist with their estate planning.

Also there are common sources of asset erosion that can be avoided or minimized, such as the estate tax and probate expenses. You also would want to make sure that your wishes aren’t challenged. These are only some of the many reasons why you would do well to work with an experienced estate planning attorney.

The last misconception we will address is the idea that you can establish your own estate plan using general template documents. Estate planning even for very modest estates generally involves many complex considerations that simply cannot be provided for by a form. Many estate planning issues are unique and very personal. The nuances of these types of issues can only be properly identified and addressed by an experienced estate planning attorney.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

Trying to cover all of your bases for when the latter portion of your life rolls around means you have to consider factors beyond simply arranging for the transfer of assets after you pass away. Reaching an advanced age is certainly a milestone, but other detrimental possibilities loom with age, and it is important to be prepared for them.

A lot of people don’t realize just how long lifespans are these days. Americans are living longer than ever, with people 85 years and older making the fastest-growing segment of the population. Clearly, when you reach your mid-80s and beyond the possibility that you won’t be able to make all of your own medical decisions becomes a real one indeed.

For this reason it is important to select a trusted representative to act on your behalf through the execution of a durable power of attorney for health care along with a living will. With a living will you state your wishes with regard to the use of medical procedures to keep you alive should you become unable to communicate your preferences in real time. The issue of having your life preserved via the use of artificial means when there’s no hope of recovery is typically at the core of these documents.

When you look at the facts it is rather startling to see how few Americans have executed these documents. An interactive Harris survey from 2009 found that only 29% of the adults that they polled had a living will in place. Though we emphasize how important these documents are for seniors, they are are also important for younger adults. If you’re looking for proof simply recall the highly publicized case of Terri Schiavo, and the protracted legal battle between her husband, who was also her legal guardian, and her parents.

If you are unprepared you could be leaving your family in a very uncomfortable position should life-and-death decisions fall into their laps. You may want to take action and arrange for a consultation with an experienced estate planning attorney sooner rather than later to execute these important documents.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

According to some current research surprising numbers of people are not prepared to retire. There was a poll conducted recently by the Associated Press in partnership with LifeGoesStrong.com that found approximately 25% of baby boomers nearing retirement have little or no retirement savings. A similar percentage said that they would never be able to retire due to financial need. The majority of people who responded stated that Social Security would represent the cornerstone of their retirement income.

The amount of the average Social Security check is going to vary on an ongoing basis because of the fact that people are coming and going from the rolls every day. According to the Associated Press the average monthly benefit is $1082. Clearly, this is not going to be sufficient to finance a comfortable retirement. So if you are under the impression that Social Security will be enough, you may want to research the matter further and evaluate your anticipated financial need.

Social Security benefits are supposed to rise in accordance with the cost of living under certain preset parameters. Inflation had not been sufficient to warrant any increases over the last two years, but the Social Security Administration has announced that there will be a 3.6% COLA for 2012. That’s good news for Social Security recipients, right? Perhaps, but this increase equates to all of $39 per month for the average senior citizen who receives Social Security. Any extra money is always welcome, but a little under $10 a week is not going to do a whole lot to change anyone’s circumstances.

The best way to proceed given the limitations of Social Security may be to take control of your own financial well-being. If you have not already designed your retirement planning now may be a good time to arrange for a consultation with an experienced retirement planning attorney.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

When you are planning for your retirement you’re probably envisioning beach scenes, leisure activities, unrestricted travel and a lot of rest and relaxation. To be prepared it is wise to budget for all the eventualities of aging. One of the things to take into consideration is the possibility of paying for long-term care.

Everyone is aware of the fact that some people eventually reside in nursing homes or assisted living communities, but there are those who take the attitude that this is something that happens to other people. There’s nothing wrong with being optimistic, and some individuals who feel this way have taken good care of themselves. However, the statistics regarding just how many people do ultimately need this level of care is alarming. The United States Department of Health and Human Services tells us that no less than 70% of people who reach the age of 65 are going to need long-term care of some kind.

The USDHHS goes on to say that the average length of stay for a woman is 3.7 years, and for a man it is 2.2 years. The national average cost for a year in a private room in a nursing home in 2010 was around $83,500 and annual assisted-living community costs neared $40,000 on average.

Many will need assistance to address these costs. With this in mind, wartime veterans would do well to be aware of an often overlooked benefit called the Veterans Aid and Attendance special pension. Single veterans who need assistance with their day-to-day living needs can be eligible to receive as much as $1632 per month. You only need to have served for 90 days with at least one of them taking place during wartime to meet the length of service eligibility requirement. This benefit is something to explore if you have served in the armed forces and find yourself in need of long-term care at some point in time. You can do so by getting in touch with the United States Veterans Benefits Administration.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

One of the most pressing issues of our times in the elder law community is that of elder financial abuse. The MetLife Mature Market Institute estimates that victims of such abuse lose some $2.9 billion annually.

This estimate could be much lower than the actual amount of money that is lost, however. In their paper entitled Combating Financial Exploitation/Crimes Against the Elderly, Lisa Nerenberg and Lori Delagrammatikus cite a statistic that only one out of every 25 cases of elder financial abuse that takes place is ever reported to the authorities.

Why do so many cases go unreported? Usually because the majority of cases of elder financial abuse are committed by family members and other people known to the victims. So the victims keep quiet because they don’t want to incriminate the perpetrators. Sadly, the fact that the victim is trying to cover up the abuse leads to further victimization.

Loneliness and isolation are also considered to be contributing factors, and when an elder only has frequent contact with one relative or “helper,” this individual can often see an opening. Ultimately, the senior citizen in question may be afraid to rock the boat because he or she needs the help.

However, not all elder financial abuse is perpetrated by people that the victim knows. There are a lot of scammers out there, and they often target senior citizens because they generally have good credit.  Also, because many seniors are lonely they may be more willing to engage in interaction with people they don’t know.

The Internet has made a lot of different types of scams possible. Seniors and their families need to be aware of the dangers the internet poses. Always make sure that your passwords are sufficiently complex, and never give out sensitive log-in information and passwords to anyone. Identity theft in particular is another big problem that is made easier by our use of the Internet, but there are numerous identity guard programs that one can enroll in that can provide you with a certain amount of protection.

To learn more about elder financial abuse in the digital age and how to protect yourself, take action right now and arrange for a consultation with an experienced legacy planning attorney.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

The last will is a document that most people are familiar with and is the most common estate planning tool. In fact, many movies have romanticized the proverbial “reading” of the last will of a deceased family member. We can all imagine a family gathered in a lawyers office as the will is read, letting each person know what they received, or did not receive, from the estate.

Most people know that there are other legal instruments that can be utilized. But a lot of them are under the impression that only people of extraordinary wealth need to step outside of the tried-and-true last will as a primary vehicle of asset transfer.

In reality, people of ordinary means may want to consider alternatives to a last will when they are making plans for the future. There are a number of reasons for this, but the most compelling one is the fact that your estate must be probated if you use a last will.

The process of probate can slow things down considerably. During this interim the probate court examines the will in an effort to determine whether or not it is valid. So, at this time interested parties who may not agree with the contents of the will could step forward and present challenges. This can result in a long and drawn out legal struggle. Just think back to the case of Anna Nicole Smith. That battle was just resolved last summer some 15 years after it began.

Probate is also a source of asset erosion. There are costs that the estate will incur while it is being probated. Depending on the size of the estate, the nature of the assets contained therein, and whether or not there are any challenges costs could reach 4-8% of the total value of the estate and in some cases even more.

Most people are not going to be fully informed when they start making plans for the future. The worst way to plan is to rely on Hollywood’s representation of what an estate plan should look like. The best way to gain an understanding of how to proceed given the unique nature of your circumstances is to consult with an experienced, savvy estate planning attorney.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

You find individuals who are in difficult positions sometimes pointing fingers at others who are enjoying a comfortable retirement or benefiting from an estate plan that was intelligently conceived by their loved ones. They say that these people are “lucky” and decry their own lack of such luck. But in reality, those who have no worries simply benefited from proactive, pragmatic planning. And of course they had the self-discipline to stick to the plan. It is as simple as that.

Our law firm understands this to be true and we try to educate people and encourage them to take action so that they can avoid the pitfalls that invariably accompany a lack of preparation. Unfortunately, a very high percentage of Americans ignore this advice and go through life without making important preparations for the future.

The results of a Harris telephone survey that was released at the end of 2009 shed some light on the subject. A total of 1,022 adults responded, and a mere 35% had composed a last will to elucidate their final wishes. Just 29% of the people who were interviewed said that they had a living will in place.

Merely 24% of people under 35 had executed at least one of the commonly recommended estate planning documents, and of course you would expect younger people to be less prepared. However, a surprisingly high 23% of people surveyed who were over the age of 55 had executed no estate planning documents at all.

Clearly, a lack of appropriate planning has reached epidemic proportions. When you shirk this basic adult responsibility, for the most part it is your family members who are going to suffer after your death or incapacity. This is a serious matter, and if you do not presently have at least a basic estate plan in place, do take action and arrange for a consultation with an estate planning attorney before it’s too late.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.