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September 2024
603-894-4141 | 978-969-0331 | LegacyCareLaw.com
PLAN WITH RESPECT
How to Gently Broach the Topic of Estate Planning With Aging Parents
One of the most delicate conversations I guide our clients through is discussing estate planning with their aging parents. It’s a topic that requires as much compassion as it does diligence. Today, I want to share some insights on how you can approach this critical conversation with sensitivity and respect, ensuring your parents feel empowered and respected throughout the process. Start the conversation. First and foremost, the idea of initiating a talk about estate planning can feel daunting. You might worry about your parents’ reaction to discussing their mortality or the implications of planning for incapacity. However, it’s paramount to approach this conversation with the understanding that it’s not just about the end of life but about making the remaining years as fulfilling and worry-free as possible. One effective way to start is by sharing a personal story or a situation you heard about that underscores the importance of having an estate plan. This can be about someone who benefitted from clear planning or suffered from the lack thereof. This approach can naturally lead to discussing the importance of making sure their wishes are respected and fulfilled. Emphasize their control. Most importantly, when discussing estate planning, it’s vital to emphasize that the process is about protecting their control rather than giving it up. Reassure your parents that estate planning is a means to assert their decisions on health care, asset distribution, and their legacy. It’s about ensuring their wishes are clearly laid out and legally protected. Focus on the practical benefits. Explain how a well-drafted plan avoids the need for the family to go to court to settle their estate, minimizes taxes, and ensures assets are distributed according to their wishes without unnecessary delay or legal hurdles. When you highlight how beneficial estate planning is, you can make it clear how it can simplify financial and medical decisions if they ever become unable to manage their own affairs. Address their concerns with empathy. Your parents will likely have concerns. They may worry about the cost, the complexity of the process, or confronting uncomfortable decisions. Listen to these concerns with empathy. It’s vital to acknowledge their feelings and provide clear, straightforward answers. Explain that the initial discomfort can prevent significant stress and hardship for their loved ones later on.
Choose the right moment. Timing is everything. Choose a relaxed setting without distractions. It might be a quiet afternoon at their home or a private dining room after a family lunch. Ensure the atmosphere is calm and the conversation unhurried. This demonstrates your respect for their comfort and readiness to engage in this meaningful discussion. Keep the conversation going. Estate planning is not a one-and-done conversation. It should be an ongoing dialogue, adapting as circumstances change. Encourage your parents to consider estate planning as part of regular life planning, like annual health check-ups or financial reviews. In my practice, I’ve seen how thoughtfully approaching this topic can not only provide legal and financial security but also bring families closer. It opens up lines of communication about values, life lessons, and family heritage. As daunting as it may seem to start this conversation, the peace of mind it brings to everyone involved is immeasurable. If you’re preparing to discuss estate planning with your aging parents, remember that this conversation is ultimately an act of love and respect. You’re helping them ensure their wishes are honored and that they are protecting what matters most — their family.
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NEW YEAR, NEW EXEMPTION
Why 2024 Is the Year to Update Your Estate Plan
While keeping up to date with your estate planning should always be a priority, 2024 is the ideal year to review and make changes to your estate plan. This is because the federal estate, gift, and generation-skipping transfer, or GST, tax exemptions have seen a marked increase this year. In 2023, the GST was $12.92 million per individual, but it has increased by $690,000 to $13.61 million per individual in 2024. This means you can transfer property with a value up to the exemption amount, either at death or throughout your lifetime, without paying a transfer tax. If you are in a position to do so, consider taking full advantage of this estate planning environment. Estate, Gift, and GST Taxes Every year, the IRS allows individuals to gift up to $18,000 to individuals without incurring federal gift or estate taxes. If you are married, your spouse may also gift up to the same amount, effectively increasing the amount to $36,000 per year, tax-free. Some gifts do not count toward the exemption — meaning these are not taxed — such as payments made directly to medical providers or between spouses. According to the American Bar Association, the GST tax is imposed on transfers to “remote descendants,” including grandchildren, known as “skip” persons, that exceed the exemption limits.
“You need to create your estate plan this year ; the current federal estate, gift, and GST tax exemption rate is temporary and set to decrease soon.”
The GST tax is applied to direct transfers to any skip person, either during someone’s lifetime or at the time of death. However, transfers made to trusts can use the GST exemption — making the trust partially or wholly exempt from the tax. As of 2024, the federal gift, estate, and GST tax rate is a flat 40% — representing a significant expense. That is why the gift, estate, and GST tax exemptions are so important; they allow you to circumvent this tax rate in your estate plan. The GST Tax Exemption While the federal estate, gift, and GST tax exemptions were just $5 million in 2011, they have increased by over 170%. Before 2012, inflation was not considered when determining the exemption. This increase should not come as a surprise to anyone. After all, inflation has significantly strained the economy in recent years. If you wish to take advantage of the GST tax exemption through the use of a trust, you need to consider a few factors. Any non-exempt trust will still be taxed at a 40% rate. For a trust to be GST tax-exempt, it must either be a Gallo trust, meaning it is for the benefit of a single grandchild or skip person, be a grandfathered trust, or qualify for the GST tax annual exclusion. Otherwise, if you want to cement your legacy and do what is best for your family at the time of death, you need to act quickly while this exemption still applies. You need to create your estate plan this year ; the current federal estate, gift, and GST tax exemption rate is temporary and set to decrease soon.
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THESE NATIONAL PARKS ARE ACCESSIBLE TO ALL NATURE’S PLAYGROUND AWAITS!
For decades, the 400-plus national parks encompassing over 84 million acres were unreachable for millions of Americans with mobility issues. Thankfully, recent advances at many national parks have made nature available for everyone. Let’s look at five accessible options for your next adventure. Great Sand Dunes Great Sand Dunes National Park has 5 billion cubic meters of sand and stretches 30 miles. The winds blow these sands into massive dunes with peaks reaching 13,000 feet in elevation. Now, with sand-friendly wheelchairs available for rent, utilizing inflatable wheels for accessibility, everyone can explore these natural wonders. Grand Canyon A scenic drive accessibility permit allows visitors to access roads that are closed to regular traffic, providing incredible views of the Grand Canyon without needing to get out of the car. However, for a closer peek,
you can find wheelchair-friendly overlook platforms and a free shuttle to transport visitors around the park. Carlsbad Caverns Think again if you thought cave exploration was off the table for folks with trouble getting around. Carlsbad Caverns features an elevator that takes visitors 750 feet underground into a giant cave chamber, home to over a mile of paved trails through beautiful rock formations that took millions of years to form. Grand Teton Feel like going for a swim? Grand Teton National Park wanted everyone to feel welcome to cool off in the 1,200-acre Jenny Lake, so they built a path that allows wheelchair users to roll into the water. Nearby, Teton Adaptive Sports hosts climbing trips, so nobody has to abandon their dreams of conquering the cliffs.
Yellowstone This national park is one of the country’s best, with over 90% of visitors reporting never needing to leave their car. For adventurers with injuries, age-related mobility issues, or other disabilities who want a closer look, most of the thermal features Yellowstone is famous for are easily accessible due to its excellent boardwalk system. The accessibility changes made by these parks are a significant step toward ensuring our national treasures are inclusive for all who wish to experience nature’s wonders. Through innovative solutions like sand- friendly wheelchairs, cave elevators, and special driving permits, these parks give outdoor access to even more people.
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9 Red Roof Lane, Salem, NH 03079 603-894-4141 978-969-0331 LegacyCareLaw.com
INSIDE THIS ISSUE
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Empower Your Parents Through Estate Planning Conversations
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2024 Sees Rise in Transfer Tax Exemptions
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Parks Pave the Way for Accessibility
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Eminem’s Family Feud
Slim Shady’s Mom Sued Him for Millions
Eminem has famously feuded with Machine Gun Kelly, Mariah Carey, and many other musicians and celebrities. In many cases, his rivals become the subject of his rap lyrics.
He has even written entire songs as parts of long-standing rap battles and disputes, some of which become massive hits. In 2018, Eminem released a music video for his single, “Killshot,” a song targeting rapper Machine Gun Kelly. Despite the video being nothing but a still image — a drawing of Machine Gun Kelly seen through a gun’s scope and crosshairs — it has amassed nearly half a billion views on YouTube. But one of his earliest, and perhaps most hurtful battles, hit close to home. Eminem, whose real name is Marshall Mathers, was sued for defamation by his mother, Debbie Mathers-Briggs, in 1999. She sought $10 million in damages, claiming that the then-26-year-old rapper had slandered her in songs and interviews. Background of the Beef Eminem first mentioned Mathers-Briggs in his 1999 single, “My Name Is.” The song
won the artist a Grammy for Best Rap Solo Performance in 2000. The lyrics include explicit references to his mother in the lines, “I just found out my mom does more dope than I do,” and “I told her I’d grow up to be a famous rapper. Make a record about doin’ drugs and name it after her.” Mathers-Briggs claimed that she did not use illegal drugs and that the rapper’s lyrics were untrue and amounted to slander. Eminem’s attorney refuted this claim, arguing that everything the rapper sung about her was verifiably true. Rapper’s Result The court awarded Mathers-Briggs a settlement in this case, but it was far from the $10 million she originally sought. She initially won around $25,000, which was reduced to just $1,600 by a Macomb County judge, who awarded the majority of the settlement, some $23,354, to her attorney to cover legal fees.
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