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Posted By Admin on May 27, 2010

For many people, Terri Schiavo was the face of an emotional struggle over the right to live and the right to die. It sparked a heated global debate and inspired even the most apolitical citizens to take a stand.

Last Will and Testament and Living Will

The point in the controversy over the Florida Woman who lay comatose while her husband struggled to withdraw and her parents struggled to continue life support is all too common and all to avoidable. It’s a struggle that doesn’t have to happen.

In a Living Will you can give information about what kind of decisions you wnt to be made in various situations and you can state whether you would want to have life support terminated, withheld, or withdrawn if you get into a terminal stage of a terminal illnes, an irreversable coma, or a progressive condition in which the burdens of treatment are greater than the potential benefits.

And in a health care proxy which can be included in a Living Will you can designate someone to make health care decisions for you if you can’t make or communicate your own decisions.

In short, creating an advance directive for health care is about caring for those who care for you. It’s a way to make dure your wishes will be honoured and avoid burdening family members with the emotional stress of having to guess what health care decisions you would have made.

You people don’t expect to need an advanced directive until old age. But critical health care decisions don’t always wait. Everyone needs a Living Will and they need to make one long before they anticipate health problems. You can’t authorize someone to make health care decisions for you if you can’t sign the piece of paper youirself. You have to do a health care directive while you’re competent.

Why Do People Avoid A Living Will?

Many neglect to create Living Wills because they are unaware of the urgency, others may avoid it out of a fear of confronting unsettling issues. We go through life liking to have as much control as possible over our bodies and our minds. Creating a Living Will means contemplating a loss of autonomy and independence which we all value. So to think of being in that kind of cognitive state is very disquieting, very anxiety arousing. It really representss helplessness, extreme vulnerability and a loss of control. Not to mention that contemplating dyig means a loss of connections to all our loved ones.

Thinking aboutr death also brings up tough philosophical questions that many people are afraid to consider.

A Living Will Does Not Contemplate Incapacity

Many people experience disconfort when thinking about topics like death and diability. But discussing your wishes with loved ones and documenting them in a Living Will will bring peace of mind to everyone involved.

Face it squarely, and don’t shrink from discussing it. The aim is to get everything settled in advance.

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Posted By Admin on May 20, 2010

Ready to start thinking about your Last Will and Testament but don’t know where to start?

Choosing an attorney

Find a lawyer with related areas of expertise, like estate planning and taxation law.

And check with local the Bar Association to see if the attorney has had any disciplinary actions taken against him or her.

A Living Will is as Necessary as a Last Will and Testament

Tell family members, your lawyer and your doctor where your Living Will is located and what it says.

When you enter a long term care facility, give your Living Will to the director to make sure they will honour it.And make sure all your friends and relatives, know about it too in which case they will help carry out your wishes.

Make sure your Last Will and Testament is up to date as well as your Living Will. Don’t do your Living Will and Testament yourself. Office supply stores and the Internet sell computer programs that create Wills and power of attorney forms, but these often gloss over the intricacies of tax laws. You may save money on legal fees up front, but you can put yourself in a disastrous situation down the road.

Power of Attorney

A power of attorney is a most important document. A power of attorney appoints someone to take care of your finances when you are too incapacitated to handle them yourself. This document has various clauses that can help to protect your assets if you, your spouse or your parent needs to go into a nursing home. But many things require rearranging – sometimes with gifts, sometimes by setting up financial vehicles, sometimes through purchases. But nothing can be done if you’re incompetent to deal with your finances and nobody else has authority to deal with your finances either.

A Power of Attorney For Your Last Will And Testament Can Expire

Make sure your power of attorney is up to date. Remeber you are giving the power to enforce your Living Will as well as your Last Will and Testament if necessary.

Last Will And Testament

Consider building in compensation for extra special care. People often leave their assets to their children in equal shares, but many times one child is especially involved while others are less attentive. If one child is giving you care directly, probably in their home, you may want to consider giving them more.

Make sure your Will is up to date. Laws change and your Last Will and Testament is your last chance to see wishes and bequests carried out.

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Posted By Admin on May 13, 2010

Heres an estate-planning technique that allows you to lower the tax sting to your heirs, and that reduces your retirement income in case you dont think you will need all of your Individual Retirement Account funds in retirement. Its called a stretch IRA, or Multi-generational IRA, a complex investment tools that allow you to extend the tax-deferred status of your IRA long after your death.

By naming your children and grandchildren as the beneficiaries of your retirement assets, you enable them to stretch out the annual distributions of that IRA over the course of their lifetimes.

structuring the stretch

There are four primary approaches to structuring a stretch IRA; the traditional, spousal-rollover, participant-direct and the mixed, or combination, approach.

In the traditional set-up, your spouse is the primary beneficiary and your children or grandchildren are the contingent beneficiaries, however distributions and income tax deferral are extended only through the life expectancy of the oldest beneficiary. By using the Spousal Rollover Approach instead, your spouse remains the primary heir and children or grandchildren become the beneficiaries with their own IRAs. This strategy allows the distributions and income tax deferrals to extend through-out the lifetime of the beneficiaries you name. That, in turn, provides significantly more tax deferral and a much longer opportunity for that IRA investment to grow.

If neither you nor your spouse need to dip into the IRA during your lifetime, you could also consider structuring your multi-generational IRA using the Participant Direct approach, which can provide the greatest tax benefit of all.

Using this strategy, youll be asked to break up your retirement assets into several different IRAs like the spousal rollover-except that your children and grandchildren, not your spouse, are listed as the primary beneficiaries, so you can lower the amount of the minimum distributions you are forced to take out once you hit age 70-12, and leave more money behind for your heirs.

Lastly, theres the Mixed approach. A combination of strategies from the stretch IRA, it is structured as a spousal rollover with the remainder under the participant direct category. You may want to give this strategy a closer look if the surviving spouse does not need the IRA assets, but reigns while he or she is still alive. Consult a qualified financial planner experienced in Stretch IRAs for more specifics on these plans and which approach is right for you and your family.

You can freely reprint this article as long as the author, bio, and live links are left intact.

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Posted By Admin on May 6, 2010

The idea behind insurance is to make sure that you are prepared for the direct and indirect expenses that an accident can cause you to incur. There are several types of insurance, and these days, it is possible to insure just about anything and buffer yourself from costs, income loss and even liability. However, one area that many people dont take into consideration is properly insuring their children.

Many people with children just cannot entertain the thought that their child might some day be taken from them. However, this is a tragic part of life for some people, and it can be a devastating setback from more than an emotional standpoint.

It should not be thought morbid or tempting fate to take out a life insurance policy on your child. There are some schools of thought that tend to consider this sinister. As with any insurance policy, taking out an insurance policy on your child is simply preparing for a worst-case scenario. Losing a child can be crippling to parents and siblings, and can have a subsequent financial impact. Beyond covering any burial costs, it takes no imagination whatsoever to see that the loss of a child could be emotionally debilitating to the entire family.

Divorce and family dysfunction are alarmingly common after the loss of a child. A parent will want to give themselves the time needed to grieve. Insuring your child will help ensure that you will be able to afford the time off that you will need. In addition, such a loss may have an emotional impact felt deeply by a family and family dynamics often go into a spin. Parents may need grief counseling as well as professional help to deal with siblings or other family members impacted by the loss. Family counseling is often recommended by clergy and clinical professionals.

This is the thought process behind a life insurance policy that is taken out on a child. You can ensure that in the aftermath of an unthinkable loss, the financial impacts, temporary earnings loss and professional counseling needed are not additional stresses that prevent you and your family from healing, and even worse can tear it apart. If you have children, this is something that you will want to take into account.

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Posted By Admin on April 29, 2010

There are several ways to reduce your Insurance Premiums, and by implementing these methods you can save yourself thousands a year.

Excess

Most claims are subject to an excess which is stipulated in your policy. If you opt for a higher excess, your monthly premiums will be less. In an average policy the excess is usually between 750 and 1000. If you make your excess 2000, you will also protect your no-claim bonus, by not claiming for small amounts during the year, which will result in your premiums being lowered the following year.

Market Value

The replacement value of goods, increases all the time. The only exception is Motor Vehicles. Make sure you car is only insured at the market value. A car you bought 5 years ago will not have the same market value today. So check with your broker or insurance company that you are only paying for the market value and that it is reduced on an annual basis.

Specified Items

Most Insurance Companies require you to Insure specific items in your policy. i.e. – Jewellery, Glasses, Cell phones etc. Make sure that if you no longer own these items, that you have them removed from your policy. There’s no point paying cover for something you don’t own anymore.

Security

By installing the following security measures, your are reducing the risk of loss, and will result in reducing your monthly premiums.

Household
Burglar bars
Alarm System and Armed Response
Security Gates
Motor Vehicle
Alarm, Immobilizer or Gear Lock
Satellite Tracking System
No-Claim Bonus

Your monthly premiums are directly related to your number of claims you submit. The less claims you submit, the lower the premiums. Most insurance companies offer a discount on household and car insurance if no claims have been submitted. Policyholders can earn such a bonus on the basis of a claim-free history.

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Posted By Admin on April 22, 2010

There are a couple of things in life that we know, at some stage, we will be worried about. Growing old certainly seems to be one of them. More and more, our culture is becoming obsessed by the cult of youth. Not only are film stars and musicians young and beautiful, but increasingly, politicians and newsreaders are getting younger also. Add to this the extraordinary lengths to which the not so young among the elite are going to maintain their youth and appear young and you will quickly see why so many people are becoming distressed about growing old.

There is one thing that people have known, at varying levels, for centuries however. This is that old age is a state of mind. Therefore, the secret to staying young lies also in the mind and not in the body. When someone mentions Madonna, we dont think about old age or an elderly woman, but is this because she still looks quite young, or because she is as active and controversial as ever, releasing hit albums and doing what she has always done? In many senses it is a combination of the two, but I would propose that it is the young mind that keeps the body young rather than the other way around.

There are many things that you can do to keep your mind young and active. One is to keep up the old hobbies and pastimes that you have enjoyed for your whole life. Try to keep physically active. Consider walking and swimming which are less stressful on joints and bones than some other activities.

At the end of the day, it is not such a young persons world out there. The charity. Help the Aged, defines the elderly as anyone above the age of 50. There are many 50 year olds around who would defy this but the fact is that many people, by this age, are already preparing for retirement. Age discrimination has also been recognised by the government who in 2006, will bring into force the age discrimination act that outlaws discrimination on the basis of age in the workplace.

Also, the over 50 age group is not only the fastest growing segment of the population, but 80% of the nations wealth is owned by the over 50s. They are also one of the freest and least tied down segments of the population. As societys attitudes change towards old age, perhaps the time is coming to let loose and enjoy old age for all the potentialities it provides.

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Posted By Admin on April 15, 2010

When accidents occur, whether an auto accident, slip and fall, medical malpractice, wrongful death, or any other non workplace related injury happens, structured settlements are often set up with insurance companies to pay for these tortious acts. People who are in involved in personal injury or insurance related cases elect to receive a series of payments over a sunstantial period of time rather than receive an immediate lump sum payment. These payments typically total more than the amount a person would have obtained for an immediate payment. The injured party(Plaintiff) goes through a process whereby they elect to take this protracted payment, and sign off on a “Settlement and Release Agreement” allowing the Insurer(Defendant) to purchase an annuity policy on the insured’s behalf that would provide for monthly, quartely, or yearly payments to the injured party, who now becomes what is called the Annuitant.

With the advent of new 2002 Federal Laws, and further State Protections, the injured party now has the right to get cash for their structured settlement by selling this annuity stream to an independent third party if he or she so desires. These periodic payments that flow from an insurance company annuity contract(called a structured settlement), may be
transferred at anytime in the future for a lump sum today, but great care should be taken to ensure that the injured party obtains a proper court order. The reason for the court order is one of protection for the injured party, and that protection is twofold; first to protect the annuitant(injured party) from an unscrupulous transaction, and secondly, and just as important in our opinion, to preserve the tax free nature of the transaction. Without obtaining a court order, the proceeds received would be completely taxable, a fighteningly foreboding scenario.

The structured settlement holder should be aware that these annuity sales have specific legal guidelines that differ from state to state. These specific elements must be adhered to strictly in order to complete the transaction. Typically, the injured party receiving the payment stream must execute(sign) a new transfer and assignment agreement disclosing all contractual terms and the price to be paid.

At this point the injured party may be wondering how difficult it is for them to get cash for their stuctured settlement, since the procedure seems complex. In fact, the sale of a structured settlement annuity is a simple, straightforward process that any institutional funder has done thousands of times, and will handle all the paperwork properly. The only thing the injured party need do is make certain they provide the funder with the proper paperwork required in a timely fashion. This process is really a simple cookie cutter transaction. Once in court, the potential sale is announced to all interested parties and then is submitted to the court for their approval.

Bear in mind that this procedure is a process, and typically will take at least 90 days to consummate. In order to expedite the process, the injured party needs to make certain that they respond immediately to requests for information and paperwork from the funding party. The institutional funder should have a vast knowledge of the structured settlement business, and have consummated numerous transactions, and offer you referrals. This is for your protection and an acknowledgement that all proper legal guidelines will be adhered to. If your structured settlement company doesn’t meet these requirements, use someone else.

Can you get cash for structured settlement? Yes. Provided your follow these easy guidelines.

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Posted By Admin on April 8, 2010

Insurance claims from damage from flooding, cold and stormy conditions during the summer months have soared. 60% of current home insurance claims are related to bad weather conditions. Home owners are being warned that not only do they need to prepare their home by checking trees, gutters, drains and roofs, but they must make sure they are in a position to cover any damages by being adequately insured.

The overwhelming majority of household policies provide cover in respect of flood, however, it is necessary to check your policy to make sure this is so. Simple steps can be taken to prepare a property for the worst that the weather can bring. Built up leaves, seeds, dirt and other debris that has run down your roof and into your gutter can lead to a blockage in the system which in turn can lead to major problems. The good news is most of these blockages can be easily cleared, but it must be done often, ideally at the beginning of winter to clear leaves that have fallen during autumn and summer since high rainfall appears to be on the increase in most parts of the UK.

No matter what type of guttering you have, the troughs will need clearing. It is not a particularly difficult job, but it is essential if you wish to avoid problems further down the line such as water damage and serious outbreaks of dry rot.

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Posted By Admin on April 1, 2010

Do I Need Excess Liability Coverage? Dont End Up Like Mary and John!

John and Mary live in a nice five bedroom home located in California. Theyve lived in their three thousand square foot home for twenty five years and are retired. Their home is paid for and worth about 900,000. They live off their retirement and have hardly no bills to pay. John and Mary have always had a homeowners policy to cover their home in case of fire, theft or other potential losses involving their home. Mary is age 75 and John is age 72. They hope to someday leave their home to their adult children.

On a nice spring day, Mary went to run some errands in her vehicle around her neighborhood. She pulled into the parking lot of her local grocery store. For some reason, after Mary parked her car , her foot slipped off the brake and hit the accelerator instead. Marys car went through the wall of the grocery store. Her vehicle continued through the wall of the store and she collided into two pedestrians who were standing in line with their grocery carts.

Both of the pedestrians were rushed to the hospital due to the severity of the injuries they sustained from Marys car striking them. Mary was upset about the accident and did not know what she should do. She called her insurance agent the same day of the accident and her agent took her information to start processing her claim.

Months later after the accident, Mary and John found out that the damages filed by the two pedestrians injured from the accident, exceeded the auto insurance liability limits that they carried with their insurance company. John and Mary found out from their adjuster that they would be personally liable for any money damages which exceeded the liability limits that they carried.

The adjuster also told them that the pedestrians attorney did an asset check to see if Mary and John owned property. The attorney found out that they owned a home and would be expecting them to contribute additional monies towards the settlement of the pedestrians claims in addition to the auto insurance liability limits that they carried.

Mary and John were devastated and did not realize that their home the most valuable asset they owned was at stake! They worked all their lives for their home and could not believe that it may be at risk due to the accident. John and Mary did not know they may have avoided contributing monies towards the pedestrians injury claims if they had excess liability coverage or an umbrella policy!

What is excess liability coverage or an umbrella policy? This policy would be liability coverage which would exceed your homeowners or vehicle policy for damages you may be liable for.

The cost of excess liability coverage or an umbrella policy is very minimal for the amount of additional coverage you would receive. You can expect to pay somewhere between 150-400 annually for this coverage. Consult your insurance company for details. Remember, excess coverage is important for you to consider if your assets are substantial, especially being a homeowner. This extra protection may give you better peace of mind in the long run and will be well worth it!

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Posted By Admin on March 25, 2010

Keeping an inexpensive term life insurance policy for too long can cost unprepared families lots of money in the long run.

While term insurance is a great way to protect your family from financial disaster, sitting on the same policy until it is too late to replace it with a permanent options can be a financial disaster.

Term life is temporary insurance. It pays a fixed death benefit if the policy holder passes away during a set period of time. For example, if you have a 20-year term policy and you die before the 20 years end, your beneficiaries will receive the face value of your policy.

Once the 20 years is up, the contract expires. The company keeps your premiums and you have to find new insurance, usually at a higher premium. Term insurance helps you to prepare for the unexpected.

Term insurance is the cheapest form of life insurance because it is temporary and not intended to pay out. Young families benefit from term insurance. In many cases, it is taken out to help support young children and a spouse in case the primary breadwinner passes away. That takes a large policy to accomplish.

Many young adults do not have substantial savings and investments yet. They have a lot of their money tied up in new mortgages and student loans. Term policies offer a cost-efficient solution.

But as families mature, the breadwinners grow older and the policies get closer to expiration. Situations change and families need to consider changing their term insurance into a more permanent option.

Many term insurance contracts have a clause that allows the policy holder to do just that.

You could think of it as leasing insurance with an option to buy. You can use the convertibility clause to convert without having to obtain a new insurance policy. For a price, families can transform their temporary insurance into permanent insurance without having to re-apply for coverage or have medical examinations.

Not all policies have conversion clauses. If you are buying term insurance, look for policies that include the clause. They are often more expensive, but well worth it.

For example, you have a 20-year term policy with a 10-year conversion clause. After nine years, you develop a major health problem. You are still within the 10-year conversion period, so you can convert the policy to a permanent policy. By doing so, you will not need a new physical exam and you will receive your coverage at a much lower rate than if your health problems were taken into account.

If the policy didnt have the conversion clause, you would be facing an expiring policy and very expensive renewal premiums if you could renew at all. You should always convert before it is too late.

You should review your policy with your agent on a regular basis. This will help to prevent that your conversion expiration doesnt sneak up on you. When you are within a year of convertibility, you should take the time to look at your plan. Consider your health, finances, responsibilities and goals.

Dont just look at your health in considering whether or not to convert a policy. The older you are, the more expensive you are to insure. By locking in a fixed rate and paying toward a permanent policy in your 20s, your monthly premiums will be much cheaper than if you had waited until your 50s.

Your financial needs transform over time. Your family matures and changes. When you are young, you often need a policy to replace your income and provide for your children. When you are older and your children are grown and your mortgage is paid off, you may find that you dont need such a large policy.

The roughest rule of thumb is to take a multiple of your income. If you only need enough insurance to take care of your family for a few years after you die and set them up until they can get on their feet, buy 4-6 times your annual salary. If you want to take care of them for the rest of their lives, you can look at something quite larger, like 20 times your salary. That gives enough to establish a trust that they can life off of indefinitely.

One strategy involves buying the largest term policy you can afford when you are young. When you can afford more, supplement your term policy with a small permanent policy.

When your term insurance is set to expire, your children will be grown and your mortgage paid off. Then you can look at what coverage you will need.

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