Monthly Archives: January 2014

New Year’s Resolution: Estate Planning

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Estate Planning

It’s hard to believe that we’re almost halfway through January already.  How many of us have already abandoned our New Year’s resolutions, after just two weeks?  How many of us forgot to make a resolution at all this year?  Here’s a suggestion for a resolution that will benefit both you and your family and will be relatively simple to complete:  make an estate plan this year.  We all know that it’s an unpleasant thing to think about — thinking deeply about your wishes for yourself, your family, and your property when you die.  Clients, however, seem to overwhelmingly feel great peace and satisfaction knowing that they have done their best to make things easier on their loved ones when that time comes.

To get started on the process, list and compile documents relating to your assets, insurance policies, properties, and valuable personal items.  Gather account and policy numbers.  Then talk with a financial planner and a lawyer about your needs.  In addition to a will, which handles most property, most people also need a living will, a power of attorney, and a health care power of attorney.

  • The living will declares that you wish to die a natural death and do not want extraordinary medical treatment or artificial nutrition or hydration to keep you alive.
  • The health care power of attorney appoints a person of your choice to make your medical decisions if you became unable to make them for yourself.
  • The power of attorney (a.k.a. durable power of attorney) gives a person of your choice the legal right to act on your behalf as your “attorney-in-fact.”

These documents can alleviate the stress on your family if you should become sick or incapacitated in the future, and they give you the reassurance that your wishes will be carried out.  If you or your family members have been through significant changes, such as a divorce, a new baby, or the death of a loved one, you may need to update or revise the estate documents that you’ve already made.  If you’ve been putting off thinking about these things, this is a new year’s resolution that is easy to keep and will give you great peace of mind!

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Social Security Benefits & Divorce

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Social Security Benefits & DivorceWith the arrival of a new year, some people in unhappy relationships begin to look toward a new beginning.  If you are considering divorce in 2014, you likely have lots of questions.  When it comes to financial issues, there are many things to consider in a divorce, and one important financial aspect can be easy to overlook — Social Security.

There are limitations on when and how much an ex-spouse may receive benefits after divorce.  According to the SSA, you can receive benefits based on your ex-spouse’s status if:

  • Your marriage lasted 10 years or longer;
  • You are age 62 or older;
  • You are not remarried;
  • Your ex-spouse is entitled to Social Security retirement or disability benefits; AND
  • Your benefit based on your own work record would be lower than your benefit based on your ex-spouse’s record.

As a divorced spouse, you may receive up to 50 percent of your ex-spouse’s full benefit.  You must have been divorced for at least two years in order to begin collecting benefits.  If you remarry, you cannot collect the ex-spouse’s benefits, unless and until your later marriage ends.  Also, if your ex-spouse dies, and you meet all of the criteria above, you may be able to collect “survivor benefits” of up to 100 percent of the ex-spouse’s benefit.

If you are considering divorce and uncertain about your financial options, remember that Social Security benefits may be available to you based on your spouse’s work record.  Spend some time perusing the SSA website and consult an expert if you have further questions about your circumstances.

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