Cary Estate Planning - August 2024

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The Cary Connection AUGUST 2024

Cary • Raleigh • Wake • Forest • Chapel Hill

Safeguard Security, Independence, and Joy MASTERING THE SPECIAL NEEDS TRUST

Families with special needs members often face many challenges. The daily focus on care can make it difficult to manage financial details. Individuals with disabilities deserve to live fulfilling lives, enjoying the same opportunities for joy and enrichment as anyone else. Government benefits, however, typically only cover essential needs, leaving gaps that special needs trusts can fill. This is where the Cary Estate Planning expertise can help ensure loved ones with special needs can live their lives to the fullest. A special needs trust is a critical tool for safeguarding the financial well-being of individuals with disabilities. Its primary function is to ensure that individuals continue to qualify for essential government benefits, such as supplemental security income (SSI) and Medicaid. Without a trust, any money from legal supplements or inheritances could disqualify a person from receiving these government resources. Therefore, establishing a special needs trust is a buffer, protecting these benefits while providing additional financial support. One of our primary goals is to inform families with special needs loved ones about the special needs trust and how they can secure their loved ones’ financial futures, which provides peace of mind. Because special needs trusts have specific spending rules about what is allowed and what is not, a knowledgeable lawyer can guide families to ensure compliance.

be covered within reason — the goal is to provide comprehensive care and to support an individual’s well-being and joy. Understanding the limitations of a special needs trust is essential to getting the most out of it. For example, it cannot be used to cover expenses that government benefits already address, such as groceries and rent already mentioned. Additionally, using the trust as a personal ATM is against the rules, and making large asset purchases will jeopardize the individual’s eligibility for government benefits. The goal is to use common sense in how a person uses the funds in a special needs trust within the scope of what is allowed. Properly managing a special needs trust requires a clear understanding of the legal and financial rules associated with it. At Cary Estate Planning, we provide comprehensive consultations, guiding families through the spending rules and ensuring they

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comply with all regulations, avoiding mistakes that could create difficulties down the line. Let us provide peace of mind and support to your family every step of the way, ensuring your loved ones receive the financial protection and benefits they deserve.

Government benefits are designed to cover essentials, like basic rent and groceries. However, a special needs trust can fund additional things like home renovations, technology, and mobility equipment, which can enhance independence and control. These trusts can also pay for specialized therapies like aquatic physical therapy or acupuncture, which are not covered by basic health care plans. If a caregiver would enhance a person’s quality of life, the special needs trust could cover that, too. Even a special trip or bucket list item can

-Paul Yokabitus

CaryEstatePlanning.com • 1

FURRY FRIENDS, HAPPY HOMES

Create a Comfortable Haven for Your Canine Companion

We consistently adjust and add things to our homes to make them more comfortable, but we should remember our furry friends, too! Our dogs also deserve a comfy spot to rest, and it’s as easy as picking up a few items from your local home improvement store.

to this behavior. The next time you’re out, pick up a bitter apple spray and use it on your baseboards, furniture legs, and anything else your dog may chew on to prevent them from tearing up your home. You might not think you need to buy new appliances when you get a dog, but it can help you maintain your home better. Certain vacuum cleaners pick up pet hair better than others. Additionally, you will need to run their beds and toys through the washer and dryer at some point, so ensure your appliances are up for the task.

Since dogs spend most of their time on the ground, especially if you don’t allow your pups on furniture, you should make extra efforts to ensure the floor fits their needs. As dogs grow older, they will need more traction to move around. Soft rugs can provide them with a snug spot to rest. You might think that installing carpet is a better option, but dogs can have accidents and get sick more frequently as they age, putting your carpet at risk. Many stores also sell comfy, machine-washable dog beds at reasonable prices. Another area of your home you should pay attention to is your baseboards, as your furry friend may mistake them for chew toys. This is much more common in puppies, but dogs of all ages are susceptible

Finally, make sure you have a doormat or something for the dogs to walk over near your doors. This will prevent them from tracking mud, dirt, and other debris into your home.

Bringing home a dog can be fun but requires preparation. Take these steps to ensure your dog is comfortable and your house is fully puppy-

proofed for their arrival.

Bulls, Bears, and Ballots — Oh, My! DECODING ELECTION YEAR STOCK MARKET TRENDS

Making money in the stock market can often evolve into a pattern recognition game, with investors searching for any repetition in past data. Many traders and analysts have noticed a particular market trend in election years — and some wonder what that means for 2024. Let’s look at the data gleaned from previous years and uncover how (if at all) it applies now. Emerging Patterns A bull market is an economically stable time when prices are increasing. In contrast, a bear market is when stocks

are losing value. Typically, stock market patterns in presidential election years show a weaker first half (bear), followed by a dip around May. After June, the index usually rises (bull), and the Dow’s second-half return in election years is an average of 8.6% as opposed to 3% in other years. So, based on history, the stock market usually performs weaker at the beginning of an election year due to economic uncertainty surrounding the candidate’s policies. As the year goes on and the parties solidify their plans throughout their campaigns, that ambiguity wanes, and the market picks back up. Looking to the Future Investors are always trying to hedge their bets and plan for long-term economic downturns, another pattern worth looking into. According to T. Rowe Price, a global investment management firm, there’s a 22% probability of an election happening

during a recession. What’s interesting, however, are the numbers in the years that follow. There’s a 57% chance the following 365 days will have a recession, with the second and third years coming in at 30% and 17%, respectively. The big question remains: Will the winner of this year’s race create an unstable market? Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management, says, “At the presidential level, the differences between the candidates, from an investor’s perspective, are not as significant as many would expect.” Change is constant in the markets, so don’t base your entire portfolio on this historical data. Trends like this are never guaranteed to repeat — they’re simply interesting patterns discerned in previous years. Instead, use this information to inspire your investments and empower yourself with clever strategies for cultivating long-term financial stability.

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While France may be known for its artwork, culture, and cuisine, the French Revolution was anything but beautiful, cultured, or tasteful. Instead, it was a brutal, vengeful affair, culminating in the ruthless execution of the French royal family and the end of their royal line. One of the most famous characters from this brutal time was the French queen, Marie Antoinette. She became a symbol for all complaints levied against the French throne, from extravagant spending to their brutal crackdowns on dissent, even though she wasn’t the actual perpetrator. In the end, it didn’t matter. Marie Antoinette, at age 37, was beheaded by guillotine in October 1793. Here are three true facts about Marie Antoinette. Cake: Not on the Menu Although many ascribe the infamous words, “Let them eat cake,” to Marie Antoinette, she likely never uttered them at all. Many other royals, including the French noblewoman Marie Therese more than a century earlier, had been credited with uttering the notorious sentence. So, someone else had likely said it before the French Revolution ever happened. Young Newlyweds Talk about a crowded household: Marie Antoinette was the 11th daughter of Holy Roman Emperor Francis I, the head of the powerful and influential Habsburg dynasty. She did not spend many years at home, however, because she was just 14 years old when she married the future king of France, Louis XVI. Faux Farmer Despite her regal estate and lavish lifestyle, one of Marie Antoinette’s favorite pastimes was pretending to work as a farmer. She had an entire fake farm built on the grounds of her palace in Versailles, where she and other noblewomen would dress in costumes and pretend to be sheepherders and milkmaids. Facts About the Late French Queen Marie Antoinette Headless of State

TAKE A BREAK

BACKPACK BEES

MELON MOON

MUSTARD OLYMPICS PEACH SANDCASTLE SCHOOL TWINS

VACATION ZUCCHINI

TASTY CUCUMBER SUSHI ROLLS

Ingredients

• 1 cup uncooked sushi rice • 1 1/2 cups water • 2 tbsp rice vinegar • 1 tbsp sugar

• 1 tsp salt • 2 sheets of nori • 1/2 a cucumber, sliced

lengthwise into thin strips

Directions 1. To make sushi rice, combine rice with water in a small saucepot. Add vinegar, sugar, and salt. Bring to a boil, cover, reduce heat, and simmer for 15–20 minutes until water is absorbed. Let cool. 2. Lay a piece of nori on a flat surface. Spread half of the sushi rice evenly over the nori, leaving a 1/2-inch border on one end. 3. Place half the cucumber strips along the other end of the nori. 4. Using your fingers, moisten the 1/2-inch border of the nori with water. 5. Gently roll up the nori, starting from the end with the cucumbers. Then press to seal. Repeat with a second sheet of nori and remaining cucumber. 6. Slice with a serrated knife into 1-inch sections and serve.

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Cary • Raleigh • Wake • Forest • Chapel Hill - new location! 1255 Crescent Green, Suite 200, Cary, NC 27518 919-726-0896 • www.caryestateplanning.com

Inside This Issue

Understanding the Special Needs Trust in Estate Planning

1

Create a Dog-Friendly Home With Simple Upgrades

2

Do Elections Affect the Stock Market?

3

Tasty Cucumber Sushi Rolls

The Truth About France’s Marie Antoinette

Don’t Make the Same Financial Mistake as Chadwick Boseman

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A Stark Reminder of the Importance of Wills and Trusts Chadwick Boseman’s Estate Debacle Photo: Gage Skidmore

Everyone needs to have a will or trust set up for their financial future. Even if you feel too young to think about it, it’s never too early to prepare for the only guaranteed milestone in life. Take Chadwick Boseman’s estate as an example. Back in 2016, the actor (best known for his starring role in Marvel’s “Black Panther”) was diagnosed with stage III colon cancer, and he hadn’t even turned 40 yet. After quietly battling this awful disease in private, Boseman died only four years later on Aug. 28, 2020, leaving behind his parents, a wife, and many more family members who were devastated by their loss. Tragically, he didn’t leave behind a trust for his estate. When this happens, the deceased’s financial assets must go through probate, a court-supervised process for

identifying and distributing those funds to the deceased’s beneficiaries.

In California, where Boseman lived, intestacy laws require the probate courts to decide where someone’s assets can go. His widow petitioned the court to become the estate’s representative, which she was granted, allowing her to allot her late husband’s inheritance to be split evenly between herself and Boseman’s parents. However, because he didn’t establish a trust for these funds, legal fees and the U.S. government claimed a third of his net worth, a cut worth $1.5 million. And Uncle Sam could have taken even more of his estate if Boseman had lived in a different state without intestacy laws. If this is what the system can do to a celebrity with millions of dollars, imagine what can happen to the estates

of everyday people. All your planning, saving, and preparing for your family’s future in the wake of your absence could be gone overnight if you don’t have the right legal documents in place.

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