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Rising Trend of Seniors Taking Social Security Benefits Early

Many Americans claim Social Security as early as 62, the earliest possible age for retirement benefits. While this decision may offer immediate financial relief, it often comes at the cost of reduced monthly payments for life.

Recent data shows that even as the retirement age increases and people live longer, many seniors prioritize quick access to cash over long-term income stability. Rising living costs, health concerns, and uncertainty about future benefit availability drive this shift. However, without careful planning, early claims can leave retirees with insufficient income in later years, especially as medical expenses rise and savings dwindle.

Understanding the long-term effects of claiming early and weighing alternatives can help retirees make informed decisions that align with their financial and personal goals.

Why More Retirees are Claiming Social Security Early

Many seniors today face financial pressures that make delaying Social Security difficult. Inflation, housing costs, and inadequate savings have left some without other income sources.

In addition, health concerns or job loss in later life can push individuals to retire earlier than planned. Some also fear that future policy changes or funding shortages could reduce Social Security benefits, prompting them to take what they can, while they can.

For others, the decision is personal. Retirees with shorter life expectancy or chronic illnesses may see little benefit in waiting for larger payments they may never collect.

The Cost of Claiming Early

Claiming Social Security before full retirement age permanently reduces monthly benefits. For example, someone whose full retirement age is 67 will receive only 70% of their full benefit if they start at 62. That reduction remains in effect for life.

Delaying benefits, on the other hand, increases the monthly amount by about 8% annually up to age 70. Waiting even one or two years can significantly raise lifetime income, especially for those who live into their 80s or beyond.

Lower monthly payments also affect a surviving spouse, who may receive reduced survivor benefits based on the deceased spouse’s early claim.

For many retirees, especially women and single individuals who may live longer, early claiming can reduce financial security when expenses like healthcare and long-term care increase.

When Early Claiming Might Make Sense

Despite the drawbacks, early claiming may sometimes be the right decision. It may be necessary for individuals with health conditions that shorten life expectancy, those with no other income sources, or people facing high personal debt.

Others may use early benefits to fund a more active lifestyle in their younger retirement years. In dual-earner households, one spouse may claim early while the other delays to maximize survivor benefits.

The key is to view Social Security as part of a broader retirement income plan, not the only source of support.

Planning Ahead with Legal Guidance

An elder law attorney can help retirees evaluate their options in the context of their complete financial and legal picture. Claiming early may also affect Medicaid eligibility, estate planning strategies, or the structuring of trusts and retirement accounts.

Professional guidance helps ensure that today’s decisions don’t create burdens later, especially when managing fixed incomes, long-term care, or the transition of assets to heirs.

Social Security is one of the most important income sources for retirees, and one of the few guaranteed for life. Making the right claiming decision requires careful thought and, in many cases, personalized legal and financial advice.

Key Takeaways

  • Early claiming reduces monthly benefits: Starting Social Security at age 62 results in permanent benefit reductions of up to 30%.
  • Short-term needs often drive the decision: Rising costs and limited savings are pushing more seniors to claim early.
  • Delaying can significantly boost income: Waiting until full retirement age or beyond increases monthly and lifetime benefits.
  • Survivor benefits are also impacted: A lower benefit now may reduce what a surviving spouse receives later.
  • Legal and financial advice adds clarity: Elder law attorneys can help retirees understand how early claiming fits into long-term planning.

Reference: The Wall Street Journal (April 26, 2025) “Americans Are Claiming Social Security Early, Fearful of Its Future”

Using Estate Planning Tools when Markets Are Volatile

Estate planning provides a number of powerful strategies to support portfolios, protect assets, and stabilize investments. A recent article from Wealth Management, “Estate-Planning Techniques in Volatile Markets,” explains how.

Grantor Retained Annuity Trusts. GRATS are a special type of irrevocable trust created for at least two years. The trust’s grantor transfers high appreciation assets to the trust while retaining the right to receive annuity payments. The assets transfer results in no gift tax to the grantor. This is referred to as a “zeroed out GRAT,” which sets the annuity interest so that the present value of the annuity payments equals the value of the assets transferred to the GRAT. When the trust expires, the assets pass directly to beneficiaries, removing assets from the grantor’s taxable estate. When assets are depressed and recovery is expected, GRATs are used to transfer wealth with minimal gift taxes.

Charitable Remainder Trusts. Annuity payments are made to the grantor, and remaining assets pass to the charity when the trust term ends. The CRT generates an income stream and gives the grantor a charitable deduction. When the assets in the CRT are sold, the CRT is deemed a tax-exempt entity. There are no capital gains taxes.

Charitable Lead Trusts. CLTs work best in lower interest rate environments and are even better when funded with assets with significant appreciation potential. CLTs are irrevocable trusts that make payments to a charity during the term of the trust. At the end of the trust, remaining assets go directly to non-charity beneficiaries. If the trust is taxed to the grantor, the grantor can take an individual charitable income tax deduction.

Qualified Personal Residence Trusts. QPRTs are used to transfer a residence to beneficiaries with minimal gift tax costs and are best for high-interest rate environments. The owner can continue to live in the home for a period of time as specified in the trust. If the owner/grantor lives longer than the term, they can remain in the home but must pay rent, another way to minimize estate taxes. If the owner dies before the end of the trust term, the transfer tax benefits may be eliminated as the trust asset may be included in the grantor’s taxable estate.

Gifting to 529 plans. Parents and grandparents who want to limit their gifts to the current annual gift tax exclusion rate of $19,000 per person but want to do more may consider making a gift to a 529 plan for education costs. Individuals can make up to five years of contributions in one single gift to a 529 plan, making for a sizable reduction in an estate’s value. One caveat: if the donor dies within any of the five years, there may be estate and gift taxes due.

All these techniques must be reviewed with your estate planning attorney to be sure they align with the overall plan’s goals. With tax season over and summer on the horizon, now is a good time to make an appointment to review your estate plan.

Reference: Wealth Management (April 23, 2025) “Estate-Planning Techniques in Volatile Markets”

Americans Becoming Proactive about an Alzheimer’s Diagnosis, Survey Shows

A new survey reveals a significant shift in how Americans approach Alzheimer’s disease. Once a topic families avoided until it was too late, Alzheimer’s is now the center of greater openness, early diagnosis efforts, and legal planning. The growing trend reflects a new mindset: proactive preparation can reduce confusion, protect dignity, and ease the emotional and financial strain on loved ones.

As awareness grows, elder law attorneys play a central role in helping families plan for the legal and financial realities. From creating powers of attorney to safeguarding assets and planning for long-term care, legal strategies are becoming just as important as medical ones in addressing Alzheimer’s.

Embracing Early Testing and Diagnosis

According to recent data, more Americans are willing to undergo cognitive screening, even if symptoms are mild or absent. Many are motivated to make legal and financial decisions while they still can.

This proactive approach is crucial. Alzheimer’s is a progressive disease, and as cognitive function declines, the ability to make informed decisions is gradually lost. Early diagnosis allows individuals to designate trusted agents, outline healthcare preferences, and take control of how their assets and care will be managed.

Medical professionals are also better equipped than ever to provide support services, risk assessments, and access to emerging treatments during the early stages of the disease.

Why Legal Planning Is So Critical

Legal documents such as powers of attorney, advance healthcare directives, and living wills are essential for those with Alzheimer’s. Comprehensive legal preparation ensures that control over one’s finances and medical care remains in those one trusts.

Families may have to go to court to establish guardianship without proper planning. Guardianship procedures can be emotionally and financially draining, so it is best to avoid them through early legal planning.

Additionally, elder law attorneys help families navigate complex benefit systems like Medicaid, which may become essential to affording long-term care. Planning is vital because Medicaid has strict asset and income rules and a five-year look-back period on financial transactions.

The Role of Long-Term Care Planning

Alzheimer’s doesn’t just affect memory—it eventually requires intensive care. Most families are unprepared for the cost of home health aides, assisted living, or memory care facilities, which can exceed $6,000 per month.

Families can explore asset protection strategies such as irrevocable trusts, spend-down plans, or long-term care insurance by working with an elder law attorney. These options allow individuals to qualify for benefits without exhausting their savings.

Early planning also allows families to choose a care environment that aligns with their loved one’s preferences and values.

Preparing Loved Ones for the Journey Ahead

Open conversations about an Alzheimer’s diagnosis—while difficult—are a key part of early planning. More families are discussing the road ahead, including who will provide care, how finances will be managed, and what legal documents need to be in place.

These discussions reduce the risk of future conflict and ensure that the individual’s wishes are clearly understood. With a growing number of Americans facing Alzheimer’s, normalizing these conversations is a vital step toward compassionate and coordinated care.

Key Takeaways

  • Early diagnosis empowers families: More Americans are pursuing cognitive screening to prepare legal and care plans in advance.
  • Legal documents protect autonomy: Powers of attorney and advance directives ensure trusted individuals can step in when needed.
  • Medicaid planning requires foresight: Asset protection strategies help families afford long-term care without depleting savings.
  • Open conversations reduce confusion: Discussing plans early helps families navigate Alzheimer’s with clarity and unity.
  • Elder law attorneys offer essential support: Legal guidance protects families legally, financially, and emotionally.

Reference: NPR (April 30, 2025) “More and more older Americans want to know their Alzheimer’s status, survey finds”

Talking with the Kids about Finances

Many parents avoid talking to their children about finances. They may fear burdening their kids, revealing too much, or starting uncomfortable conversations. But silence can lead to confusion, mismanagement, and conflict, especially when major life events like illness, death, or inheritance occur.

Discussing your financial situation, values, and estate plan in age-appropriate ways helps children understand your intentions and prepares them to make informed decisions. Whether your children are teenagers or adults, now is the right time to open the conversation.

Why Transparency about Financial and Estate Planning Matters

An estate plan without context can leave children surprised or even hurt. Adult children who don’t understand why decisions were made may assume favoritism or hidden motives. For example, naming one child as executor or trustee without explanation may create tension if others feel excluded or mistrusted.

By explaining your decisions in life, not after death, you avoid speculation and support family unity. Transparency about how assets will be divided, what responsibilities heirs will have, and what values shaped those choices brings clarity and peace of mind.

It also encourages financial literacy. Talking about savings, investments, and long-term planning helps children, especially young adults, develop a healthy relationship with money.

What to Share with Your Kids about Your Finances (and when)

You don’t have to reveal every dollar or document. The amount and timing of what you share depends on your children’s age, maturity, and role in your plan.

For younger children, lessons may focus on budgeting, saving, and charitable giving. More detail is appropriate for adult children, especially those named in legal roles. They should understand where documents are stored, who to contact, and what responsibilities they will assume if something happens to you.

If you have concerns about how a child might handle money, such as in cases of addiction, disability, or lack of financial experience, share those concerns carefully. Explain how tools like trusts or staged inheritance distributions protect the child and your plan’s integrity.

Involving Children in Planning Conversations

In some cases, it may make sense to hold a family meeting. This doesn’t have to be a formal event, it can be a simple gathering where you share the broad outlines of your estate plan and answer questions.

This approach works well when children are expected to work together, such as managing a family property or serving as co-trustees. Knowing the plan in advance helps avoid resentment or legal battles later.

Even if you don’t disclose all financial details, letting your children know that a plan exists—and where to find it—can make all the difference during a crisis.

Working with an Estate Planning Attorney to Guide the Process

An estate planning attorney can help you create a plan that reflects your values and documents your decisions. They can also help guide the conversation with your family if you’re unsure how to begin.

Legal documents alone are not enough. Even the best plan can create confusion without explanation and context. Pairing strong legal tools with clear communication ensures your wishes are fulfilled and your legacy honored.

Key Takeaways

  • Talking about money builds trust: Financial conversations help children understand your values and prepare them for future responsibilities.
    Transparency prevents conflict: Explaining your estate plan while you’re alive reduces confusion and resentment after death.
  • Tailor conversations to your children’s roles: Share more details with those who will act as executors, trustees, or financial decision-makers.
  • Context matters as much as content: Understanding the “why” behind decisions fosters family unity and respect.
  • Attorneys can help structure the conversation: Legal professionals ensure your documents and discussions work hand in hand.

Reference: Cameron Huddleston (Oct. 29, 2024) “How Much Should You Tell Your Kids About Your Finances?”

Is Power of Attorney for Health Care Needed If You’re Healthy?

Like most people, a 61-year-old man never thought he would have a health crisis. Neither did his family. However, he was struck with a sudden heart attack, followed by complications leading to a brain injury and he became incapacitated. The family was faced with a terrible situation in addition to their father’s health crisis.

The couple had never done any estate planning, nor did they have a Power of Attorney for Health Care. The spouse assumed she would have the legal right to make medical choices for her husband.   However, without a POAHC, she had no standing. A recent article from the Wisconsin Newspaper Association, “Wisconsin Spouses can’t make medical decisions without this document,” should serve as a wake-up call for families across the country, since this is not a one-state issue.

There is no automatic right to make healthcare decisions for an incapacitated partner. Unless both spouses are joint owners, one can’t access bank accounts. Without having the right estate planning documents in place, a spouse won’t be able to make decisions, pay bills, or transfer money between accounts to ensure the household runs smoothly.

Medical decisions for the man fell into legal limbo and got tangled up in red tape. Instead of focusing on his recovery, they embarked on a legal process that could have easily been avoided with one document.

First, the family had to petition the court for legal authority over his medical care, known as guardianship. This was an expensive, time-consuming and emotionally exhausting process, all going on while they were adjusting to this dramatic change in his health.

Making matters worse, he was not a compliant patient in his altered state. He wandered frequently, and one night, he got out of the hospital on a bitterly cold night. To make matters worse, the hospital couldn’t discharge him to a rehabilitation facility until the court awarded the family guardianship. The family was bombarded with questions about the status of his case, which was scheduled weeks away.

At the same time, there were further problems with the hospital without a designated health care agent. First, the hospital administrators insisted that the patient be discharged to a long-term care facility. They then said the insurance company had stopped paying, so he had to go home. When the family sought help from the county, the hospital threatened to tell the courthouse that the family was neglecting him and threatened the guardianship process.

The hospital reneged on its promise to help provide at-home nursing care when the guardianship process was finally completed. The family was left on their own to find appropriate care.

This nightmare could have been avoided if the couple had an estate plan, including naming a healthcare agent with a Power of Attorney for Healthcare. When he became incapacitated, his wife or adult child could have had the legal authority to make health care decisions on his behalf without the delays, added expense and frustration of court proceedings.

Everyone should have a Power of Attorney for Healthcare, sometimes known as a Healthcare Proxy, to name another person to step in and make decisions for them in case of incapacity. We never know what will happen, even to our healthiest family members. Anyone over age 18 needs to have a POAHC. Talk with your estate planning attorney and take care of this before it’s needed.

Reference: Wisconsin Newspaper Association (April 7, 2025) “Wisconsin Spouses can’t make medical decisions without this document”

How to Get Veterans Health Benefits

Navigating the Department of Veterans Affairs (VA) healthcare system can seem daunting, especially for those unfamiliar with the application process. However, veterans and their families should not have to struggle to access the medical care they earned through their service. The first step toward securing critical health benefits is to understand eligibility requirements, how to apply and what services are available.

Whether you’re recently discharged or seeking coverage later in life, knowing how to access VA healthcare services empowers you to maintain your health and protect your future.

Who Is Eligible for Veterans Affairs Health Benefits?

VA healthcare benefits are available to veterans who served in active military, naval, or air service and were discharged under conditions other than dishonorable. Eligibility is based on various factors, including length of service, income level, service-connected disabilities and periods of service.

Priority is generally given to veterans with service-connected conditions, low income, or special statuses, such as former prisoners of war or Purple Heart recipients. However, even those without service-connected disabilities may be eligible for basic healthcare services, preventive care and mental health support.

Veterans who served in certain theaters or during specific time frames—such as Vietnam, Gulf War, or post-9/11 conflicts—may qualify for additional services, including toxic exposure screenings and enhanced enrollment.

Family members, such as spouses, dependents and survivors, may also qualify for specific VA health programs under CHAMPVA (Civilian Health and Medical Program of the Department of Veterans Affairs) or other initiatives.

How to Apply for Veterans Health Benefits

Applying for VA healthcare is relatively straightforward. However, gathering documentation ahead of time helps prevent delays. Veterans will need to provide:

  • A copy of their military discharge papers (DD214 or equivalent)
  • Current financial information seeking income-based benefits
  • Details about existing health insurance coverage

Applications can be submitted online through the VA’s official website, by mail, in person at a local VA medical center, or with the help of a VA-accredited representative. Some states also help through veteran service officers (VSOs), who assist in completing applications and advocating on the veteran’s behalf.

Once enrolled, veterans are assigned to a priority group, which determines copayment amounts and access to specific services based on service-connected disabilities, income and other eligibility criteria.

What Services are Available to Veterans?

VA health benefits cover a wide range of services, including:

  • Primary and specialty medical care
  • Mental health counseling and psychiatric services
  • Preventive screenings and vaccinations
  • Rehabilitation and physical therapy
  • Prescription medications
  • Vision and hearing services
  • Long-term care options, including nursing home and in-home care

Many veterans are also eligible for additional programs, such as caregiver support services, substance abuse treatment, telehealth services and home-based primary care for those with mobility challenges.

Enrolled veterans typically receive care at VA medical centers, outpatient clinics, or through the VA’s Community Care Program, which allows care from private providers when VA facilities are unavailable or too distant.

Special Enrollment Periods and Expanded Benefits

Specific periods, such as National Military Appreciation Month, bring additional awareness and opportunities for veterans to enroll in benefits they may have overlooked. Legislation and policy changes may expand eligibility, especially for those exposed to toxic environments or facing new service-related conditions.

Veterans who previously applied and were denied should consider reapplying, especially if new benefits or conditions have been recognized since their initial application.

Staying informed about changes in VA healthcare policy and program availability ensures that veterans and their families can access all the support they deserve.

If navigating the VA system feels overwhelming, elder law attorneys familiar with veterans’ issues can assist in ensuring that benefits are secured and properly coordinated with other healthcare and long-term care plans.

Key Takeaways

  • Eligibility depends on service history and discharge status: Most veterans with honorable service qualify for some level of VA healthcare.
  • Applications require proper documentation: Having a DD214, financial records and insurance information ready can expedite enrollment.
  • VA healthcare covers a wide range of services: From primary care to long-term support, the VA offers comprehensive healthcare options.
  • Family members may also qualify for benefits: Programs like CHAMPVA support dependents and survivors.
  • Help is available to navigate the system: Veteran service officers and elder law attorneys can assist with applications and appeals.

References: USA.gov (March 10, 2025) “How To Get Veterans Health Benefits” and Veteran.com (December 31, 2024) “Celebrating National Military Appreciation Month”

Combating Aging Stereotypes During Older Americans Month

Each May, Older Americans Month celebrates the resilience, wisdom and accomplishments of seniors nationwide. While it is an opportunity to honor older adults, it is also a time to confront the stereotypes and misconceptions that persist about aging.

Outdated beliefs about older adults being frail, incapable, or a burden on society harm not only individuals but the broader community. These stereotypes can affect healthcare access, employment opportunities and even how seniors perceive their own worth. Combating these biases is essential for building an inclusive and vibrant society where all generations thrive together.

Understanding the Harm of Aging Stereotypes

Stereotypes about aging are often subtle but damaging. Assumptions that seniors cannot learn new technologies, adapt to change, or contribute meaningfully to society create unnecessary barriers. They reinforce isolation, limit employment opportunities and contribute to a culture that undervalues experience and wisdom.

Research shows that negative attitudes toward aging can even impact health outcomes. Seniors who internalize ageist beliefs are more likely to experience cognitive decline, reduced physical function and depression. The impact is real—and it demands a cultural shift.

Highlighting Contributions of Older Adults

One of the best ways to combat aging stereotypes is to spotlight the many ways older adults continue to enrich their communities. Across Virginia and the nation, seniors volunteer, lead businesses, advocate for social causes and provide essential caregiving within families.

Recognizing these contributions shifts the narrative from one of decline to one of ongoing engagement. Programs that feature older adult mentors, highlight senior entrepreneurs, or showcase intergenerational projects help reshape public perception and remind younger generations of the value of experience.

Promoting Positive Aging Through Policy and Practice

Government initiatives, such as the Older Americans Act, provide funding for programs that support senior independence, including meal services, transportation assistance and caregiver support. These programs demonstrate a commitment to treating aging as a dynamic, dignified stage of life rather than a societal burden.

Legal planning also plays a critical role. Advance directives, powers of attorney and guardianship arrangements support autonomy, allowing older adults to retain control over their healthcare, finances and living arrangements for as long as possible. Elder law attorneys work to ensure that seniors are protected from exploitation, empowered to make decisions and can access the resources they need to live full and independent lives.

By helping clients plan, elder law attorneys contribute to a culture that sees aging as a continuation of self-determination rather than an inevitable loss of agency.

Changing the Aging Narrative Starts at Home

Each of us has a role to play in changing how society views aging. This begins with language—choosing words that affirm dignity rather than diminish it. It also means rejecting assumptions about ability based on age alone and advocating for policies promoting inclusivity across all life stages.

Families can also take a proactive role by encouraging older relatives to remain active, engaged and involved in decision-making processes. Respecting seniors’ autonomy, seeking their opinions and celebrating their milestones help affirm that aging is a valuable and honorable journey.

Key Takeaways

  • Aging stereotypes cause real harm: Negative assumptions about older adults impact mental and physical health outcomes.
  • Older Americans make vital contributions: Seniors continue to enrich communities through work, volunteering, caregiving and advocacy.
  • Policy and legal planning support independence: Programs and estate planning tools empower seniors to retain autonomy and dignity.
  • Positive language and attitudes matter: Respectful communication and inclusive policies help reshape societal views on aging.
  • Everyone can be an advocate: Celebrating older adults’ achievements and affirming their value strengthens families and communities alike.

References: Administration for Community Living (ACL) (May 2025) “Older Americans Month 2025” and Foundation for Senior Living (FSL) (Jan. 9, 2025) “Breaking the Stigma of Aging: Challenging Stereotypes and Promoting Positive Perspectives on Aging”

How Much Life Insurance Do Young Families Need?

Starting a family brings new joys—and new responsibilities. One of the most critical financial decisions parents can make is purchasing life insurance to protect their children’s future. While it is easy to put off thinking about worst-case scenarios, securing the right coverage now offers peace of mind and a solid safety net.

Determining how much life insurance you need requires an honest look at your family’s lifestyle, future goals and financial obligations. Each family’s needs are unique, but some fundamental guidelines can help guide this critical decision.

Why Life Insurance Matters for Young Families

Life insurance is not about benefiting the insured but protecting dependents left behind. If something happens to one or both parents, life insurance can provide the funds needed to:

  • Replace lost income
  • Pay off a mortgage or other debts
  • Cover childcare and education expenses
  • Fund college tuition or vocational training
  • Help surviving family members maintain their standard of living

Without life insurance, surviving spouses or guardians could face severe financial strain, possibly forcing them to make unwanted sacrifices like moving, changing careers, or reducing opportunities for the children.

Starting early with coverage not only ensures lower premiums but also locks in financial protection during the years when children are most dependent.

Factors to Consider when Calculating Coverage

The right amount of life insurance is not a one-size-fits-all figure. To calculate it, families should consider:

  • Income replacement: How much would your family need annually if your income were lost? Many experts suggest 7 to 10 times your annual salary as a starting point.
  • Outstanding debts: Mortgage balances, student loans and credit card debt should be accounted for, so survivors are not burdened.
  • Future expenses: Consider upcoming milestones—school tuition, weddings, or supporting an aging parent.
  • Childcare and daily living: If the surviving spouse needs to work full-time or hire childcare, those costs should be built into the estimate.
  • Existing assets and coverage: Consider savings, existing insurance policies and employer benefits when calculating the additional coverage you need.

Online calculators can help provide a rough estimate. However, speaking with an estate planning attorney or financial advisor can refine the numbers based on your family’s situation.

Term vs. Permanent Life Insurance

For most young families, term life insurance is the most affordable and practical choice. Term policies cover a set number of years—typically 10, 20, or 30—when children are most dependent and financial obligations are highest.

Permanent life insurance policies, such as whole or universal life, offer lifetime coverage and a cash value component. However, they are significantly more expensive. Unless there is a specific estate planning need, most families find term policies a better fit for their current priorities.

Regardless of the policy type, it’s crucial to regularly review coverage after significant life events, such as the birth of a child, purchase of a home, or a career change. Adjustments ensure that the policy continues to meet your evolving needs.

Updating Beneficiaries and Integrating Life Insurance with Estate Planning

Life insurance proceeds generally pass outside of probate directly to the named beneficiaries. For families with minor children, it’s essential to coordinate life insurance with your broader estate plan.

If children are named directly as beneficiaries and they are under 18, a court may need to appoint a guardian to manage the money until the child reaches adulthood. To avoid this, many parents set up a trust and name the trust as the life insurance beneficiary. The trust can then manage distributions according to specific guidelines.

An estate planning attorney can help you structure these documents to protect your family’s financial future and ensure that the money is used wisely and according to your wishes.

Key Takeaways

  • Life insurance protects financial stability: It replaces income and funds future expenses if a parent dies unexpectedly.
  • Coverage should reflect real needs: Income, debt, childcare and future goals should all be considered when determining policy size.
  • Term policies are ideal for most young families: They offer affordable, targeted coverage during the most critical years.
  • Beneficiary designations require careful planning: Trusts can ensure life insurance funds are managed appropriately for minor children.
    Regular reviews keep coverage aligned: Life changes like births, home purchases, or job changes should trigger a policy review.

Reference: Investopedia (March 3, 2025) “How Much Life Insurance Cover Does Your Family Need?”

Fashion Designer Takes Uniquely Named Approach to Her Will

Get ready because this is a doozy, or more accurately, a floozy. Minkoff, founder of a global handbag and clothing empire, has a “floozy clause”—a provision in her will stating if she predeceases or divorces her husband, her assets all go into a trust for her children. This is to prevent a second spouse from gaining access to her wealth, reports the article “Fashion Designer Rebecca Minkoff Reveals She Has ‘Floozy Clause’ In Will” from mondaq.

Minkoff says her mother came up with the idea, long before she or her husband had any money. However, Minkoff counted on becoming highly successful. She maintains that she trusts her husband implicitly. She doesn’t trust what someone else might do if she dies. Her goal is to prevent her children from needing to go to court against an unscrupulous person.

While the title of this provision is admittedly unique, it’s very common for individuals to want to have specific directions carried out after their death, from wishes for the administration of their estate or distribution of assets. Some want to restrict who their beneficiaries marry or even dictate the religion of a spouse.

Another somewhat unusual provision is the Special Trustee for Hostile Acts. In one case, it was used by a mother who wanted to bring harmony to her five children’s relationship after she died. She appointed a Special Trustee to limit trust determinations to any child engaging in a hostile act. However, controlling from the grave doesn’t always work. Litigation ensued between the siblings, and the case made its way up to an Appellate Court, which upheld the provision but declined to limit the application despite the request of several of the children. This mother knew her children very well.

A provision attempting to control the religious marriage requirement can be expected to be enforced if it doesn’t impose a total restraint on marriage in general or promote divorce. On the other hand, a provision providing a financial benefit for an illegal act will always be found invalid.

Back to Minkoff’s strategy: it’s got at least one flaw. If funds or assets pass directly to her husband at some point in time and he hasn’t moved on to a “floozy” with someone five years after her death, he can do whatever he wants with those assets. A better solution would be to put the assets in an Irrevocable Trust containing the limitations and restrictions she wants.

Her plan also creates a tax issue. A gift in trust for the surviving spouse passing to the children if the spouse remarries means the trust won’t qualify for the estate tax marital deduction. There is a way around this, however. The trust can be structured so that the surviving spouse receives the net income of the trust during their lifetime.

The plan isn’t a bad one. However, an irrevocable trust might be a better way to achieve the desired end in cases like this.

There is another aspect to consider when planning to control assets after death. Children are happier when their parents are happy. If a second marriage would make a surviving spouse happier, having to live under the constraints of a “floozy clause” could create resentments and tensions within the family.

Talk with your estate planning attorney about creating an estate plan to achieve your goals while you are living and after you have passed. If controlling assets after you have passed is important to you, they’ll be able to come up with a plan. You don’t have to create a new name for it—unless your mother is as clever as Minkoff’s.

Reference: mondaq (April 10, 2025) “Fashion Designer Rebecca Minkoff Reveals She Has ‘Floozy Clause’ In Will”

Estate Planning Lessons from Celebrities

Putting off making estate plans is common. However, it is also not wise. You won’t know about the legal battles, tax bills, financial chaos and family stress. However, your family will. Learning from the mistakes made by famous people provides good lessons, says a recent article from CNBC, “3 end-of-life money mistakes celebrities have made—and how you can avoid them.”

Aaron Carter was very young when he died without a will, leaving behind an 11-month-old son and a fiancée. In California, the court designates the child as the sole heir when an unmarried person dies without a will. However, Carter’s son was a minor, and minors may not legally inherit assets. In this case, the court appointed a fiduciary to manage the estate.

A better way: have an estate plan created, even if it’s just a basic will. Parents of minor children should have a will to name a guardian, unless they want the court to appoint a guardian. An estate plan could also be used to care for a loved one if you aren’t married.

Another problem is created when there’s money but no estate plan. Few people want an 18-year-old child to inherit large amounts of money with no guardrails in place. A trust is an excellent way of setting terms and conditions on an inheritance, whether the parent is living or has died.

Kobe Bryant is an example of what happens when you don’t update an estate plan. When he died, he did have an estate plan. However, it hadn’t been updated to reflect the birth of his child, Capri. As a result, she wasn’t legally a beneficiary of his estate. His widow had to go to court to petition to have the daughter added to the trust.

Had the trust been updated, his widow would not have had to go through this process in the public eye.

Your estate plan needs to be updated when new family members are welcomed. The same is true for any big life event, like marriage, divorce, death, or a major financial change. Estate planning documents need to reflect the changes in your life.

James Gandolfini offers a harsh lesson in how estate planning is needed to prevent an estate from being decimated by taxes. Gandolfini had taken the time to create a will. However, no tax planning was done for his estate. His $70 million estate paid an estimated $30 million in federal and state estate taxes before making distributions to friends and relatives.

An experienced estate planning attorney will be able to review your situation and determine which strategies will work best to protect your estate and your family. Everyone needs to have an estate plan, no matter the size of your estate or how many people recognize you when you walk down the street.

Reference: CNBC (April 20, 2025) “3 end-of-life money mistakes celebrities have made—and how you can avoid them”

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