Unexpected Inheritance – Too Good to Be True? (Part 1)
In this week’s post I will share with you a letter a client received that he forwarded to me. Our client – we’ll refer to him as John Smith (not his real name) – received a letter from the account manager at a foreign branch of an international bank. John lives in New Jersey. The letter explains that the branch manager is writing concerning one of his deceased customers who happens to have the same last name – we’ll call him Donald Smith. The account manager tells us that Donald Smith died in a horrific car accident and left an account with no beneficiary upon death. We are also told that Donald died intestate. He did not have a Last Will and Testament. Oh, yes and one more key fact – Donald Smith had $40 million in his account when he died. Our account manager continues to explain that he found John Smith’s contact information while searching for Donald Smith’s next of kin or someone with the same last name. For the past 3 years the bank has tried unsuccessfully to locate any next of kin. The letter continues to inform us
Searching for a Support System (Part 3)
In last week’s blog post I explained some options for our hypothetical client, Jane Doe, who has a limited family and friend support system. Neighbors, friends from different walks of life and professionals both on the health care and legal/financial side can be alternatives. I have found in my years of practice that there are many goodhearted people willing to help. There are, however, abuses that can occur. We read about them occasionally in the media. So what steps can Jane take to minimize that risk? Giving someone power of attorney over financial matters, by necessity, gives the agent access to your money, an unnerving thought for many. Choosing co-agents who must specifically act together can minimize the risk of abuse. Only providing access to certain accounts and not others can also be a workable option although Jane needs to make sure she gives the agent access to enough funds to meet her needs. If Jane has a professional such as an attorney, accountant or financial advisor that she is comfortable with, that person can monitor the agent’s actions. An easy way to do that is to receive monthly statements. Provision can also
Searching for a Support System (Part 2)
Last week I was talking about the hypothetical client, Jane Doe. Jane does not have a family and friend support system to turn to when she can no longer handle her own financial and medical affairs and decision making. What options does she have? Trusted professionals can sometimes be a good person to fill these roles. That could be Jane’s attorney, accountant or financial advisor. Many financial advisors, however, are bound by strict licensing rules which limit their ability to serve as agent under a power of attorney for their own family members. A care manager or social worker could also be a suitable option for health care representative. This type of professional will be very knowledgeable about care options and will be comfortable making medical decisions. In my practice, I have seen several different people serve as fiduciaries for aging seniors. In a handful of cases it has been a caring neighbor, who maybe lives next door to Jane. It often begins with the neighbor running errands for Jane, bringing her milk and bread when the neighbor goes to the grocery store or making sure she is OK when the neighborhood loses
Searching for a Support System (Part 1)
I received a reader email a few weeks back asking me to write about aging seniors who have no family or friends to rely on. I wrote about this topic last January (see blog posts 1-2-17 and 1-9-17) but we are seeing the scenario with increasing frequency, so it is certainly worthwhile to address it again. Last year I focused on the crisis case in which our hypothetical senior, Jane Doe was admitted to the hospital with no power of attorney or health care directive in place. It is not uncommon for Jane to be under a mental impairment at that point. Executing a power of attorney and health care directive at that time, while critical, is also problematic. Yet, that is when we usually cross paths with Jane Doe. Medical professionals will call our office seeking guidance and assistance. But, as I repeat often, the options are so much better when you plan ahead. Not that it is easy. Many people who live alone with few family and friends in their inner circle are fiercely independent and have been for years. Yet, the inevitability of aging hits us all if we live
The Right to Control Funeral and Burial Arrangements (Part 2)
In my post last week, I explained how my client Joe can insure that his burial wishes are carried out. One option is to set up a prepaid burial plan. He can set aside money in trust to cover the burial arrangement he has chosen while alive. A second option is to designate a funeral agent in Joe’s will as permitted under New Jersey law. It can be anyone including the executor of his will. In Joe’s case he wants his longtime companion, Betty to be his funeral agent. But what happens if no funeral agent has been designated in a will and no prepaid burial has been established? In that case, New Jersey law states that the first right to control funeral and disposition of the body falls to the surviving spouse or civil union or domestic partner. However, if there is a restraining order against that spouse or partner or that spouse or partner is charged with intentionally killing the deceased spouse or partner then the right passes to the next in line. This means that in the case of a second marriage – unless one of the above exceptions applies
The Right to Control Funeral and Burial Arrangements (Part 1)
Recently my client, Joe asked me how he could be sure his wishes with respect to his funeral arrangements would be honored. Joe is not married. He has children but is not close with them. He has no siblings. I suggested to him that he could set aside money in a prepaid burial. This is something that is often done as part of a Medicaid spend down but can also be utilized where Medicaid is not needed. Joe must go to the funeral home and make the choice of services he wishes. Instead of paying the funeral home, however, money is set aside in a trust account. The funds are paid from that trust account to the funeral home after Joe’s death when the funeral services are provided. Joe wasn’t thrilled with the idea of going to the funeral home. Instead, he said he explained to his companion of many years, Betty what he wants for a burial. “How can I make sure that Betty will be able to carry out my wishes?”, he asked. “I don’t want my kids meddling in my affairs.” New Jersey law provides that a person can be