Pennsylvania Estate Planning Lawyer & Attorney : Jakubik Law Firm : Serving Philadelphia, Chestnut Hill, Mt. Airy

Today's New York Times brings us  depressing news of yet another attorney fallen from grace for not being able to keep her hands off of the property of an elderly person over whom she had been appointed guardian. The Appellate Division has suspended Emani Taylor for allegedly converting the property of retired Supreme Court Justice John L. Phillips after saying that she had failed to cooperate with the court's investigation into her actions.

Yes, I said that the victim is a retired state Supreme Court  Justice! In fact, having once earned a 10th degree Black Belt, Justice Phillips was known as the "kung fu Judge". Now, thirteen years after he retired from the Bench, much of his property has been dissipated improperly and his financial future is in doubt.

The bottom line here is that NONE of us are immune to this kind of disaster. Have a plan for your own future as you get on in years and take special interest into how older loved ones are protected from avaricious and untrustworthy relatives, advisors (and yes, unfortunately, even trusted attorneys) . Do not be afraid to conduct your own investigation into the affairs of a loved one who appears to be experiencing some unexpected difficulties.

Most important, play an active role in the lives of your elderly relatives. Of course, by doing so you will be bringing much warmth, comfort and happiness into their lives (you will also be setting an example for your own children who some day will be charged with your care, feeding and general welfare). That way, you will be in a position to notice those changes which so often presage an elderly person falling victim to somebody they trust.  

Source: New York Probate Litigation Blog

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Congress has given you a terrific way to save for college.  Don't let it slip by.

So-called "529" plans are investment vehicles which permit money you set aside for a child or grandchild's education to grow tax free.  If the funds are in fact used for college, they are never taxed.

Many states have offered further benefits to these plans, including creditor protection in the event of bankruptcy and state income deductions for contributions up to certain limits.  More than half of states offer some sort of creditor protection and more than 30 states offer at least some income tax deduction.  Though they may provide for recapture of the deducted income if the account is moved to another state.

An odd aspect of 529 plans is that although they are authorized under federal tax law, they depend on state legislation.  So each state has its own plan or plan operated by an investment company.  While investors may take advantage of any plan offered by any state or investment company, some of the state benefits only apply to their own state plans.

Another advantage to 529 plans is that permit automatic investment.  A donor can provide that a certain amount is deposited into the plan each month, allowing the account to grow over time almost painlessly.

A final change that makes 529 plans more attractive than formally is that the internal costs of many plans have come down in recent years and some plans now provide for investment in low-cost index funds.

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The answer to the above question is, in my view, everyone. The thought was prompted by this post by Leanna Hamilll at the Massachusetts Estate Planning and Elder Law Blog, in which Leanna answers a reader's question as to whether married people need to have health care powers of attorney in place. As Leanna so cogently explains, of course they do. And so do you. And so do I.

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I read this article from the front page of the New York Times this morning, and I thought that folks might be interested. There are so many good advisors out there, I hate to hear stories about the ones who don't put their clients' interests foremost.

Here is a summary of the article, courtesy of the National Academy of Elder Law Attorneys:

Tens of thousands of financial advisers are working hand-in-hand with insurance companies to market themselves to older Americans using impressive-sounding credentials like “certified elder planning specialist,” “registered financial gerontologist,” “certified retirement financial adviser” and “certified senior adviser.”  Many of these titles can be earned in just a few days from for-profit businesses, and sound similar to established credentials, like certified financial planner, that require years of study, difficult tests and extensive background checks. 

“The degree isn’t worth the paper it’s written on,” said T. Kevin McElreath, a financial adviser in Milford, Mass., who took the certified senior adviser exam but does not use the credential. For many agents, he said, “it’s a scam, a way to put a title on a business card that impresses gullible seniors.” Many graduates of these short programs say they only want to help older Americans.

But they are frequently dispensing financial counsel they are unqualified to offer, advocates for the elderly say. And thousands of them are paid by some of the country’s largest insurance companies — including Allianz Life, Old Mutual Financial Network and American Equity Investment Life Insurance — to sell elderly clients complicated investments that economists say most retirees should never own.

Source: New York Times (8 July 2007)

Source for post: The Estate Planning Law Group blog.

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