“Old times never come back and I suppose it’s just as well. What comes back is a new morning every day in the year, and that’s better.”
- George Edward Woodberry

Hello,

Did you go somewhere fun for spring break?  We just got back from Colorado where we’ve had a blast!  No skiing but we did get to see some snow a couple of days before the “warm” weather came.  The kids had a blast watching a play, visiting the Molly Brown house, ice skating, and jumping around the rocks at Red Rocks Auditorium just outside of Denver.  It was nice having some time off, but now it is time to get back to work!

This week, I’d like to talk about some changes to banking regulations.  A couple weeks ago, a new law went into effect.  “The Card ACT” brought some new credit card rules in play, and I wanted to give you a “heads up” about the changes which affect YOU.

Read on!

Aaron Miller’s
“Straight Talk” Personal Strategy
How To Use New Credit Card Laws To Your Advantage

You may not have heard, but a new credit card law (“The Card ACT”) went into effect recently. The provisions of this new law that will impact most of us are the ones around interest rates, over-limit fees, payment allocation, and monthly statements. Now, if you don’t use credit cards in your family life, this doesn’t apply to you…but most people do, and you should know about what’s now being done by credit card companies in response to this new law.

So, here is a quick summary of what you should know so that you can take full advantage of these pro-consumer changes:

Interest Rates
The new rules will make it harder for credit card companies to raise a customer’s rates across the board. Under the so-called “universal default practice”, a consumer who was late on a payment for one credit card might have seen the interest rate rise on that card and another, unrelated credit card.

But now… interest rate hikes are going away during the first year an account is open and on existing balances. However, banks and card companies will still be able to raise interest rates in *some* cases, such as when you are more than 60 days late paying your bill or an introductory rate expires after six months.

Another important exception: Issuers can raise your rate before the first 12 months is up if your rate is “variable” and tied to an index–and that index rises. These indices are at historic lows, but when rates begin to rise (to keep inflation at bay), so will payments.

Over-Limit Fees Rising
Another major change involves the fee charged when a consumer charges more than his or her credit limit. Until now, many card companies have allowed consumers to continue charging beyond set limits–tacking on sometimes hefty over-the-limit fees in the process. Cardholders will now have to “opt-in” for over-the-limit spending.

How Payments Are Applied To Balances
With the new rules, card issuers have to apply payments to the part of a bill with the higher interest rate. For example, if an account has a $5,000 balance with a regular rate of 15 percent, and a $5,000 balance at a promotional rate of 5 percent, the monthly payment must be applied first to the balance with the 15 percent rate. This is good news for the consumer.

Monthly Statements
Credit card statements will have to show how long it will take to pay off a credit card if only minimum payments are made. The statements will also have to show how a consumer may pay off the entire bill in 36 months if payments are increased.

Lastly, you should be aware that, because of these new rules, credit card issuers will be forced to find other sources of revenue. Already, we’re seeing card companies take an “airlines” approach–identifying ticky-tack fees which can be justified as a “normal” course of business. Rewards transactions & international charging are two very-common places which card issuers are already applying fees. So watch your statements carefully.

Wishing you all the best!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

“The past does not define you, the present does.”

- Jillian Michaels

Hello,

As we work with families, we spend a good amount of time sorting through beneficiary decisions and attitudes about life, money and the values which parents seek to pass on.

But one of the more difficult tasks for me is when I meet with a family who doesn’t have the confidence they wish they would have about how their children would handle finances, down the line.

At the point of making these decisions, we can put into place a whole range of mechanisms which will ensure that financial assets are properly distributed, when the time does come.

But wouldn’t it be great if our children had the experience and self-control to handle money, starting at an early age?

That’s why I’ve put together some pointers for you (10 of them) which will help your family raise children who “get it” when it comes to money. This is a great article to forward along to your friends and family, I think–it’s an issue which too often goes neglected within families.

And, of course, I’d love your thoughts (as usual!)…

Aaron Miller’s

“Straight Talk” Personal Strategy

Teach Your Children Well About Money

As Americans try to spend less and go on a budget this provides an opportunity to teach the next generation financial principles they may never have seen in the prosperous years they have been alive. Here are ten principles for teaching children about money:

1. Talk about money . Every time money is involved, parents have a chance to teach their children the values and analysis behind their actions. Money should never be the primarily topic of discussion, but it is one of the most important topics through which we communicate our wisdom and values to our children. Every purchase, investment, or donation can be a time to teach your children something about your values.

2. Talk openly about money. Parent makes a mistake when they keep information from their children. The only way children learn what is a good deal and what is too expensive is by the experience of what their family earns and what items cost. Hiding this information robs children of the financial education they need.

3. Talk factually about money. Many parents have strong emotions about money based on their childhood experiences. These emotions are always transmitted to children. Instead of helping children, they can cripple children from growing to make sound financial decisions.

4. Require chores; pay for optional work. Everyone in the family has to help complete the work that needs to be done. If you want to pay your children, only pay them for optional work they can choose to do or not to do.

5. Provide children an allowance they can make real choices with. Talk about money is important, but children need real-world lab experience to understand the consequences of their decisions. Consider giving them an allowance large enough so that they can purchase some of their own needs. Then continue to give them honest advice, and help them ask the right questions to make wise decisions based on their values.

6. Help children prioritize purchases. Ask them if this purchase is better than other purchases they are considering making.

7. Help children comparison shop. Help them consider issues such as cost, quality, and convenience.

8. Require children to wait before making large purchases . Adults should wait at least a month whenever they are making a large purchase. Children shouldn’t be expected to wait that long. Here is a good rule of thumb: Children should be required to wait as many days as they are old in years before being allowed to make a large purchase (over a week’s allowance). There is always tomorrow and over half the time they won’t remember what attracted them to it in the first place. Developing this habit will help make them resistant to impulse buying.

9. Don’t use money as a punishment. Your priority should be helping to give your values to your children, not buy their outward behavior.

10. Don’t loan your children money! If their desired purchase is something they should be saving for, let them save for it. If you want to buy it for them for the value of the experience, buy it for them. The principles are “If they want it, they have to save for it. If you want them to have it, you will buy it for them.” Loaning your children money for items they want teaches them they aren’t responsible and they don’t have to prioritize.

Some may disagree with all of these admonitions–I don’t intend to become a “parenting guru” in my spare time–but I do hope that, at minimum, this will help you be thinking about how your wishes get passed down.

Wishing you all the best!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

“Discovery consists of looking at the same thing as everyone else does and thinking something different.”

- Albert Szent-Gyorgyi

Hello,

Wow, these last few weeks have been so jammed that these e-zines are going out later and later.  Sorry about that.  We’ll get back on track for the next one.  I’m about to head to ANOTHER hockey game!  This time with  my second oldest daughter.  She missed out on the first one because she had a girl scout event, so she is really looking forward to this one.  (She really hopes she’ll see that monkey chasing the gorilla….)  What’s more fun for me is that I’ll get a chance to spend some one on one time with her.  As the middle child, she may not get as much one on one time as the others, so Wendy and I really try to be sure we make sure she gets that.

Well, last week, we talked about nursing home placement, and I’ve heard from quite a few friends and clients who passed it along to *their* friends and family for whom (I hope) it’s especially useful.

THANK YOU!

As you probably have gathered, I write you these weekly notes because I sincerely desire to offer my experience and expertise to the family issues that too often become rushed in the midst of a crisis. I read every response, and I’m so grateful to be connected to a group of families who are so committed to one another, and so responsive. Keep ‘em coming…

And, of course, I’m always grateful for your referrals–they’re the lifeblood of our firm. While many lawyers spend an arm and a leg for expensive yellow page advertisements, we’ve found that our BEST advertising is the relationships we maintain with our clients and friends. No, I’m not averse to advertising our services–it’s simply that friends who are referred by our clients turn out to be our best kind of clients.

So, thanks for your continued referrals!

This week, I’m continuing the series started last week, and will give you some thoughts on what to look for when you check out a nursing home facility in person…

Aaron Miller’s

“Straight Talk” Personal Strategy

Making Nursing Home Placements That Work (Part 2)

So you’ve narrowed down your list, and it’s time to take a closer look at the options.

Good news: you don’t need to schedule your visits in advance. If you show up during regular business hours, you should be able to meet with an administrative staff member, who should be able to answer all your questions.  But you may also want to set aside time to tour a second time (in the evening or on the weekend), simply to see if there is a drastic difference in the atmosphere of the facility or the care being provided.

Lastly, it is very important to tour at least two facilities so you can see the difference in the physical facility and the staff.

While you are touring the facility, pay attention to your gut feelings.  Ask yourself:

• Do they seem to genuinely care for the residents?

• Is the facility clean?

• Are there any strong odors?

• Is the staff friendly?

• Do I feel welcome?

• How long did I have to wait to meet with someone?

• Did the admissions director ask about my family member’s wants and needs?

• Do the staff seem to get along with each other?

Put on your radar, and listen and observe. You want to be sure that the facility is giving proactive care, not just reacting to crisis.

And you’ll want to be armed with some questions, so here are a few examples of the types of questions the staff should be able to answer:

• How do you ensure that call lights are answered promptly, regardless of your staffing?

• If my father is not able to move or turn himself, how do you ensure that he is turned and does not develop bedsores?

• How do you make sure that someone is assisted with the activities of daily living like dressing, toileting and transferring?

• Can residents bring in their own supplies?

• Can residents use any pharmacy they wish?

• How many direct care staff members do you have on each shift? Does this number exceed the minimal number that state regulations require, or do you just meet the minimum standard?

• What sources of payment do you accept?

• How long has the medical director been with your facility?

• What is your policy on family care planning conferences? Will you adjust your schedule to make sure that I can attend the meeting?

While touring each facility, make notes and

Don’t Neglect Expert Help.

In addition to finding the facility you like best, don’t forget that you need expert legal assistance as part of the planning process. Without proper planning and legal advice from an experienced firm, many families needlessly squander their life savings on long-term care, and unnecessarily jeopardize their own care and well-being, as well as the security of their family.

If we’re able to help you with this process–great. If not, we’re happy to point you in the right direction, to ensure you’ve got an experienced advocate working on your behalf.

That’s what we do.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

“The past does not define you, the present does.”

- Jillian Michaels

Hello,

As we work with families, we spend a good amount of time sorting through beneficiary decisions and attitudes about life, money and the values which parents seek to pass on.

But one of the more difficult tasks for me is when I meet with a family who doesn’t have the confidence they wish they would have about how their children would handle finances, down the line.

At the point of making these decisions, we can put into place a whole range of mechanisms which will ensure that financial assets are properly distributed, when the time does come.

But wouldn’t it be great if our children had the experience and self-control to handle money, starting at an early age?

That’s why I’ve put together some pointers for you (10 of them) which will help your family raise children who “get it” when it comes to money. This is a great article to forward along to your friends and family, I think–it’s an issue which too often goes neglected within families.

And, of course, I’d love your thoughts (as usual!)…

Aaron Miller’s

“Straight Talk” Personal Strategy

Teach Your Children Well About Money

As Americans try to spend less and go on a budget this provides an opportunity to teach the next generation financial principles they may never have seen in the prosperous years they have been alive. Here are ten principles for teaching children about money:

1. Talk about money . Every time money is involved, parents have a chance to teach their children the values and analysis behind their actions. Money should never be the primarily topic of discussion, but it is one of the most important topics through which we communicate our wisdom and values to our children. Every purchase, investment, or donation can be a time to teach your children something about your values.

2. Talk openly about money. Parent makes a mistake when they keep information from their children. The only way children learn what is a good deal and what is too expensive is by the experience of what their family earns and what items cost. Hiding this information robs children of the financial education they need.

3. Talk factually about money. Many parents have strong emotions about money based on their childhood experiences. These emotions are always transmitted to children. Instead of helping children, they can cripple children from growing to make sound financial decisions.

4. Require chores; pay for optional work. Everyone in the family has to help complete the work that needs to be done. If you want to pay your children, only pay them for optional work they can choose to do or not to do.

5. Provide children an allowance they can make real choices with. Talk about money is important, but children need real-world lab experience to understand the consequences of their decisions. Consider giving them an allowance large enough so that they can purchase some of their own needs. Then continue to give them honest advice, and help them ask the right questions to make wise decisions based on their values.

6. Help children prioritize purchases. Ask them if this purchase is better than other purchases they are considering making.

7. Help children comparison shop. Help them consider issues such as cost, quality, and convenience.

8. Require children to wait before making large purchases . Adults should wait at least a month whenever they are making a large purchase. Children shouldn’t be expected to wait that long. Here is a good rule of thumb: Children should be required to wait as many days as they are old in years before being allowed to make a large purchase (over a week’s allowance). There is always tomorrow and over half the time they won’t remember what attracted them to it in the first place. Developing this habit will help make them resistant to impulse buying.

9. Don’t use money as a punishment. Your priority should be helping to give your values to your children, not buy their outward behavior.

10. Don’t loan your children money! If their desired purchase is something they should be saving for, let them save for it. If you want to buy it for them for the value of the experience, buy it for them. The principles are “If they want it, they have to save for it. If you want them to have it, you will buy it for them.” Loaning your children money for items they want teaches them they aren’t responsible and they don’t have to prioritize.

Some may disagree with all of these admonitions–I don’t intend to become a “parenting guru” in my spare time–but I do hope that, at minimum, this will help you be thinking about how your wishes get passed down.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

“Old times never come back and I suppose it’s just as well.  What comes back is a new morning every day in the year, and that’s better.”

- George Edward Woodberry

Hello,

I’m not sure why it is, but time has really been flying by for me lately.  It seems like before I know it, I look up and the day, week, and month are gone.  It probably isn’t just me, I’ll bet.

Well, last weekend was spent at the Frontiers of Flight Museum in Dallas with my oldest daughter (and later my second) waiting for her history fair project to be judged at the regional competition.  She didn’t place, but she and her project partner got to hang out with her friends, and I got to look at a bunch of airplanes and a space module.  I’ve never been there before and it is really a neat museum.  And if you like that sort of thing, the Cavanaugh Flight Museum near Addison airport is also a ton of fun.

Since the Olympics have been on, I’ve tried to make sure we watch a little bit with the girls.  They don’t go much for watching sports generally, but I’m trying to make sure they see some sports that they may not have known existed (curling?).  Who knows what will spark there interest.

One thing I really enjoy are the stories that go with the Olympics – from the drama between Apollo Ohno and the South Koreans, to the hockey upset in the game between the US and Canada, to the Canadian figure skater that recently lost her mom and skated anyway and did fantastic.  The dedication and drive that these athletes have is phenomenal.

I ran across this about the American skier Lindsey Vonn.  She’s known as perhaps the world’s top female skier having dominated the World Cup the last couple years–but she entered these Olympics with a serious shin injury which left many to wonder if she could even compete.  Take a look at the video of her run and the sheer explosion of joy when she saw her time.  It is awesome.  Watch it here: http://bit.ly/bQAVvC

This week I’d like to talk about something a little different.  For far too many people, the “story” of their lives doesn’t end as well as they might have hoped. Care facilities (when they’re necessary) can be a blessing…or they can be a nightmare. So, to help you make sure that your family (and your friends’ families) make the best decision possible, I’ve put together a two-part series on nursing home placement–and how to do it right.

Feel free to forward this along to anyone who may be affected by these issues. We’re always here to help!

Aaron Miller’s

“Straight Talk” Personal Strategy

Making Nursing Home Placements That Work (Part 1)

It’s a fact: most nursing home admissions happen under extremely stressful circumstances.

It’s an overwhelming task, to find the best nursing home placement for a loved one, perhaps because, where do you even begin?

But, although this is a job that no one wants, it can be done with forethought and confidence that the best decision was made for everyone involved. It’s easier (and better for your loved one), if that first placement is well thought out. Yes–a nursing home resident can be moved from one facility to another, but this type of disruption is rarely in everyone’s best interest as it can be disturbing on a variety of levels.

So it’s best to do it right–from the beginning.

Here’s a great place to start your search:

The Federal Center for Medicare & Medicaid Services (CMS) has a part of its Web site called “Nursing Home Compare”.  Surprisingly, for a government service, it’s actually quite handy:

http://www.medicare.gov/NHCompare

This area identifies facilities that have a history of poor performance–and ones which do well. In fact, the Nursing Home Compare site labels nursing homes it calls “Special Focus Facilities” — those that have repeatedly violated state and federal health and safety rules and that rank in the worst 5 to 10 percent of all inspected facilities in a given state.

You’ll want to cross those off your list from the very beginning.

Using this website, you can see detailed inspection information about each nursing facility that interests you, comparing various government-rated “quality measures” such as:

• Percent of High-Risk Residents Who Have Pressure Sores

• Percent of Residents Who Spend Most of Their Time in Bed or in a Chair

• Percent of Residents Who Have Moderate to Severe Pain

• Percent of Residents Who Were Physically Restrained

Et cetera.

The site also rates the care and services that each facility provides to its residents, and allows you to view how each facility stacks up in staffing hours for each type of health care worker against the state and national averages.

And there’s other comparison tools available. For example, U.S. News and World Report has recently started providing rankings of America’s nursing homes.

http://health.usnews.com/sections/health/best-nursing-homes/index.html

These rankings rely on the data from the above, government site–but they DO provide some advanced search engine capability. Nursing homes are presented in tiers within each star category, based on their total stars in all three of the major areas. The topmost tier, for example, consists only of five-star homes that got 15 stars. The next tier down is five-star homes with 14 total stars, and so on.

Within each tier, nursing homes are listed alphabetically. If you’re looking for a nursing home by location, and turn up too many, search terms can be combined in order to narrow the results.  For example, perhaps you want to search just for nursing homes that have a religious affiliation, or that accept Medicaid residents. Or you can launch a multipronged search, perhaps searching for non-profit four-star nursing homes that accept Medicaid and are located within 25 miles of a particular city.

Placing your loved one in a nursing home that accepts Medicaid is vitally important if you plan to use the services of a law firm to help you with Medicaid Asset Protection.

Another free Web site that lets you compare nursing homes is www.MemberoftheFamily.net, which features easy-to-read, color-coded assessments of nursing homes nationwide.

However–here’s my big caveat when it comes to just looking at ratings : Nothing can substitute for visiting a nursing home in person. After all, every nursing home will have some deficiencies; working with extremely disabled and impaired persons is very difficult.

So, to find the best possible nursing home for your family’s situation, the first step is to determine what is most important for your family in looking for a facility. And I hope that you would agree that the potential resident’s needs and desires must be included in this evaluation. Consider variables such as location of the facility, whether a special care unit (such as for dementia) is available, and what types of payment sources are accepted.

The second step is to identify the facilities in your area which meet the criteria you have established.

In my next Note, I’ll give you some pointers on how to conduct an onsite tour properly–what to look for, questions to ask, etc.

And, of course, we’re here to help. Give us a call if we can serve you in any way!

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

“Regret for the things we did can be tempered by time; it is regret for the things we did not do that is inconsolable.”

- Sydney J Harris

Hello,

Wow, has this last week has really flown by for you too, or is it just me? Earlier the kids and I went to go see an Allen Americans hockey game. I’ve forgotten how much fun minor league hockey can be!

Back when we lived in Austin, I used to take Grace (who was around 5 at the time) to the Austin Ice Bats games a lot. We had a ton of fun watching the game and just hanging out. I got to teach her the national anthem and show her how to cover her heart when we sung it.  That was really cool for me.  She also learned how to keep her drink in her left hand so she didn’t shake people’s hands with a cold hand (at the meet-and-greets they would have with the players and other fans), and what a power play, icing, and a slap shot is.  You know, all the important stuff a 5 year old NEEDS to know.  At the games, I would watch her jump around in the bounce house between the periods and sometimes she just HAD to go there during the game (I guess she wasn’t there just for the hockey   ).  And we had a great time going around the rink talking with the friends we made there.

Of course, it was a little awkward at first when the fights broke out – “yes, dear – I know they shouldn’t be  fighting…the fans are cheering because they want our guy to win… …you do know that just ’cause they are fighting that you still shouldn’t hit your sisters, right? …. Good, because I don’t want to get in trouble with your mom….Yeah, it’s just part of hockey, so uhm, its okay for these guys to fight….I guess….uhm….Oh, hey, is that the peanut guy? You wanted some peanuts to go with that cotton candy, hot dog, coke, and popcorn I just fed you, right?” By the end of the season, she would just put on her ear protection and keep coloring while she waited for the crowd to stop yelling and sit back down.  Good times!

There were no fights or bouce houses at our Allen Americans game, but lots of great fans and good hockey.  We also got to see a guy in an Abe Lincoln costume (who dropped the ceremonial puck), a guy walking around the concourse in really tall stilts, and apparently there was a gorilla chasing a banana at one point  –  I wish I hadn’t missed the gorilla, but Grace saw it.  Anyway, there aren’t too many more games this season, so if you get a chance to head out there, Go! It is a great time. Just try not to sit next to the guy beating the drums the whole game – I’m hoping that was just when we were there.

This week, I’d like to follow up a little on what we talked about last week and touch on five critical documents every family must have. Read on, and send your feedback! And, of course, if you need help with any of this, that’s exactly what I’m here for!

Aaron Miller’s

“Straight Talk” Personal Strategy

Five Critical Documents Every Family Must Have

While some families have openly shared financial information with one another, other families consider those figures dark secrets. Having heard too many financial horror stories I recommend financial openness and suggest an annual review of these five documents as a model for others.

1)  A will

You need a will to direct the transfer of your assets after your death, no matter how “poor” you are. Seven out of ten people don’t have a will, but don’t take comfort in numbers. Six of the seven won’t read this article, and the other three families have finally made a priority of getting a will. Go do your will. The larger your estate, the more complicated the will may be. But it’s time and money well spent. Advance planning can save your loved ones time, frustration and money.

2)  A living will

You need a living will so that someone else can make decisions about your life if you can’t. It also states your preferences for life-prolonging procedures in the event of permanent illness or unconsciousness where your death is imminent. It is sometimes called a “durable medical power of attorney.” A living will ensures your wishes are followed without making your family guess.

3)  A power of attorney

You need a power of attorney to authorize someone to manage your finances if you are sick or disabled. You might consider using a financial planner who manages accounts so they continue to manage your assets even if you are incapacitated.

Even if you have an asset manager, however, you should still have a power of attorney to facilitate your other financial obligations if you are incapacitated.

4)  A directory of basic information

You need a directory of basic information for anyone who needs to take over handling your finances in an emergency. You should collect a list of all your assets (stocks, mutual funds, bonds, real estate, loans, 401ks, IRAs, etc.), where they are located (safe-deposit box, former employers, brokerage accounts, etc.), their approximate value, and the names of your professional advisers (tax advisers, lawyers, financial planner, investment counselors, trustees, etc.). Be sure to include the appropriate account numbers, phone numbers and contact information.

If you think this information is hard for you to pull together, imagine how difficult it would be for someone else who is asked to fill your shoes in an emergency!

5)  Yearly financial statements

You need a yearly collection of financial statements both for yourself and also for those helping you with financial planning.

Your yearly financial statements should include a net worth statement, an asset allocation analysis, the cost basis for all taxable investments, the past year’s performance, your current income and a copy of the first two pages of your tax return.

This exercise will take some time to complete the first time you do it. However, in subsequent years, the task will not only take less time, but you will be able to compare this year’s total with prior years. That way you can quickly see how you are progressing toward your goals.

Communicating honestly about your finances with your family and putting your estate in order passes on a legacy of foresight and financial wisdom that will help generations to come. And it’s never too late to start.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

Be true to your work, your word, and your friend.

- Henry David Thoreau

Hi,

A few weeks ago, I wrote about how to protect your passwords online .  Here is why – yesterday, someone hacked my yahoo account, copied all of the contacts I had in there, and deleted them.  Then they sent an email that began, “I’m writing this with tears in my eyes…” and gave a sad story of me and my family being mugged in Wales, UK, then not being helped by the police or the embassy. On top of that, I was stuck in a hotel with a $1, 170 (wait, don’t they use pounds?) bill and the manger wouldn’t let me leave.  The email then asked to send the money.  The really tricky thing was they closely duplicated my email address, changing one character, so it really looked like it came to me.

I tried to let people know via twitter and facebook, but because they deleted all my yahoo contacts, I couldn’t send another email saying the other was a fraud.  I’ve notified yahoo and hopefully they have or will shut this guy down.

So a couple of lessons, change your passwords regularly.  And if you get a weird email from a friend saying they need money be sure to question the friend directly in a new email and not replying to the plea (or give them a call).

Looking on the bright side, I was able to connect with a lot of people that I hadn’t heard from in awhile as they called or emailed checking in on it.  So for that, I can say, thanks Hacker!

Well…we’re moving into the “Love” month! But for many folks, it’s also the TAX month. Ouch.

Even if you’re working with a CPA or tax professional, it’s just a big pain to gather all of your tax documents without missing anything.

So I wanted to share this little checklist to make sure you don’t miss anything when you are going through your taxes. I hope it’s helpful!

Aaron Miller’s

“Straight Talk” Personal Strategy

My Tax-Time Checklist

This list is mostly complete–but I’m always looking to add to it! Let me know if you think I missed anything.

Personal Data

Social Security Numbers (including spouse and children)

Child care provider tax I.D. or Social Security Number

Employment & Income Data

W-2 forms for this year

Tax refunds and unemployment compensation: Form 1099-G

Miscellaneous income including rent: Form 1099-MISC

Partnership and trust income

Pensions and annuities

Alimony received

Jury duty pay

Gambling and lottery winnings

Prizes and awards

Scholarships and fellowships

State and local income tax refunds

Unemployment compensation

Homeowner/Renter Data

Residential address(es) for this year

Mortgage interest: Form 1098

Sale of your home or other real estate: Form 1099-S

Second mortgage interest paid

Real estate taxes paid

Rent paid during tax year

Moving expenses

Financial Assets

Interest income statements: Form 1099-INT & 1099-OID

Dividend income statements: Form 1099-DIV

Proceeds from broker transactions: Form 1099-B

Retirement plan distribution: Form 1099-R

Capital gains or losses

Financial Liabilities

Auto loans and leases  (account numbers and car value) if vehicle used for business

Student loan interest paid

Early withdrawal penalties on CDs and other fixed time deposits

Automobiles

Personal property tax information

Department of Motor Vehicles fees

Expenses

Gifts to charity (receipts for any single donations of $250 or more)

Unreimbursed expenses related to volunteer work

Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)

Investment expenses

Job-hunting expenses

Education expenses (tuition and fees)

Child care expenses

Medical Savings Accounts

Adoption expenses

Alimony paid

Tax return preparation expenses and fees

Self-Employment Data

Estimated tax vouchers for the current year

Self-employment tax

Self-employment SEP plans

Self-employed health insurance

K-1s on all partnerships

Receipts or documentation for business-related expenses

Farm income

Deduction Documents

State and local income taxes

IRA, Keogh and other retirement plan contributions

Medical expenses

Casualty or theft losses

Other miscellaneous deductions

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

“If you keep thinking about what you want to do or what you hope will happen, you don’t do it, and it won’t happen.”

- Desiderius Erasmus

Hi Aaron,

I hope you’ll allow me to be a proud dad for a minute. My youngest daughter (the six year old), got first place in first grade at her school’s science fair this week!  It was a project having to do with measuring different amounts of baking soda mixed with vinegar and how much it blew up a balloon.  Very fun!  She definitely gets her science gene from her mom — not me that’s for sure!

Well, I thought I’d talk a little this week about some changes in the estate planning laws.  You might have heard that the estate tax has been “repealed” for 2010.  While, this may be good news for a few families, something like 6,000 or so, but for the rest of us…

It’s not all rosy.

Read on to hear what I mean…

Aaron Miller’s

“Straight Talk” Personal Strategy

Married Couples Affected By New Estate Environment

Because of a Congressional failure to act before the end of 2009, there’s good news and bad news to report on the Estate Planning front.

The good news is there’s no Estate Tax if you die this year.  The bad news is, that you may owe significant capital gains taxes if a loved one dies this year and leaves you significant appreciated assets. If you have total assets of around $1 million or more (including face value of life insurance, retirement plans, home equity, etc.) you should make sure their estate plan is up to date.

Congress has had nine years to prevent this from happening, but has failed to act.

Under the provisions of a tax-cut bill enacted in 2001, the estate tax exemption has been gradually raised over the past eight years, while the tax rate on estates has been reduced.

For estates of those dying in 2009, only assets worth $3.5 million or more were subject to estate taxes, at a rate of 45 percent. But now, for the year 2010, the estate tax has disappeared entirely, only to be restored in 2011 at a rate of 55 percent on estates of $1 million or more, which is exactly where things stood before the 2001 change.

Many Couples At Risk

The new world of “no estate tax” places at particular risk certain couples who have built in “Credit Shelter” trust provisions (also called “Bypass Trust” or “Family Trust” provisions), which are designed to allow both spouses to take advantage of their estate tax exemptions.

These are common arrangements used in estate planning for married couples. With the estate tax gone, one possible problem is that the wording of some of these trusts could cause all assets to completely bypass the surviving spouse when the first spouse dies. For a more detailed explanation of this potential problem, see this blog posting:

http://www.ncestateplanningblog.com/2010/01/articles/estate-planning/the-estate-tax-is-gone-for-now-estate-plan-updates-are-imperative/

Everyone — Especially Married Couples — Should Have Their Estate Planning Reviewed ASAP.

Because of these tax changes, a review of your existing estate planning documents is essential.

Hope that helps!

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

He who loses wealth loses much; he who loses a friend loses more; but he that loses his courage loses all.

- Miguel De Cervantes

Hi,

Well the house was filled with a bunch of 11 and 12 year old girls all trying to solve a murder mystery last Friday night for our oldest daughter’s 12th birthday.  Thankfully, my job was to entertain our younger two girls, so we spent some quality time at McDonald’s and Target before heading home to watch “Hotel For Dogs” in the bedroom. Except for the “Mystery of the Missing Car Keys,” which thankfully was solved today (finally!), a good time was had by all.  Now we are looking forward to my next daughter’s 8th birthday next week.  Thankfully no party – just some quality family time!

I don’t know about you, but I’ve been deeply affected by what happened in Haiti. It’s shocking, painful and the worst part of it all is how uncertain that nation’s future will remain to be for some time.

How have you been processing that event? I think that part of what often makes us all numb to these disasters is that “daily life” must go on. So there’s a natural disconnect. Here I am watching images of severe devastation–there I am grabbing a latte with a double shot of espresso.

If you have located an effective place to send donations–the big organizations spend so much money on “overhead”, that I find it difficult to believe I’d get the most “bang for my buck”– I’d be interested in hearing about it.

Just a short note this week, but we’ll come back next week with more Personal Strategy Notes.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

“The whole idea of motivation is a trap. Forget motivation.  Just do it. Exercise, lose weight, test your blood sugar, or whatever. Do it without motivation. And then, guess what?  After you start doing the thing, that’s when the motivation comes and makes it easy for you to keep on doing it.”

- John C. Maxwell

Hello,

This week my oldest daughter turned 12!  She and her mom are planning a mystery party, which should be a lot of fun for the kids.  Other than the party, I think she was most excited about getting to ride in the front seat (remember when that wasn’t such a big deal when we were kids – no air bags!).  I guess it won’t be too long until she’s sitting in the driver’s seat.  I don’t know if I’ll ever be ready for that.  For now though, I’ve got to remember to keep the junk out of the front seat so she has a place to sit!

Oops, I probably should have said this before — I’m not trying to frighten you. Yes, the people I mentioned in that subject line have passed on to a different place, but I’m not suggesting you’re next!

Anyway, what’s interesting about these celebrities is that each one of them made some major mistakes in their planning BEFORE tragedy struck…and it cost their loved ones dearly.

And, I thought you’d be interested to learn some of these “behind the celebrity” stories I ran across. They’re from a new book called Trial & Heirs by Andrew Mayoras, a probate litigator, and they make for interesting reading!

Let me know your thoughts!

Aaron Miller’s
“Straight Talk” Personal Strategy
Estate Planning Mistakes of the Rich & Famous

Florence “FloJo” Griffith Joyner

Mistake: Not telling your executor where to find your original documents.

When Olympic sprinter Florence Griffith Joyner died at 38, in 1998, her husband couldn’t find her original will, and failed to file it with the probate court within 30 days of her death, as required by California law. Joyner’s husband and mother took disputes, including whether Joyner promised her mother could live in their house the rest of her life, to court. Joyner never filed the original will, and the judge eventually appointed a third party to administer the estate.

Our Lesson: Make sure at least two people you trust know where to find your original will. To be safe, keep two copies, and leave the original in your bank safety deposit box, or in a safe here at our offices.

Doris Duke

Mistake: Bad choice of executor.

Tobacco heiress Doris Duke, who died in 1993 with a fortune estimated at $1.3 billion, named her butler as executor and as trustee for a huge charitable foundation. After the butler’s lifestyle and spending habits were called into question, he was removed from his duties by a probate judge, then reinstated by New York’s highest court. A settlement agreement created a board of trustees to manage the foundation.

Our Lesson: Don’t have the butler do it. Pick someone competent and trustworthy as your executor. And, of course, we can help you with that!

Princess Diana

Mistake: Relying on a “letter of wishes” to give away belongings.

After her tragic death in 1997, Princess Diana left a detailed will–naming her sister and mother as executors. She also wrote a separate “letter of wishes” asking her executors, at their discretion, to divide her belongings among her sons and her 17 godchildren. But instead of getting stuff worth an estimated 100,000 pounds, each godchild got only a trinket.

Our Lesson: Don’t rely on executors’ sense of duty; put bequests in your will or trust or in a signed, dated list.

Jimi Hendrix

Mistake: Never writing a will.

Music legend Jimi Hendrix died at age 27 in 1970 without a will. Under state law, his dad, Al, got everything, leaving his close brother Leon with nothing. Al built Hendrix’s musical legacy into an $80 million venture, but, in his own will, he cut out Leon and his family, in favor of his daughter through a later marriage.

Our Lesson: Even young rock stars aren’t immortal. Sign a will or living trust document.

Ted Williams

Mistake: Conflicting directions on burial wishes.

In his will, baseball legend Ted Williams said he wished to be cremated. But his two children from a second marriage produced a grease-stained note saying he wished to be put in “biostasis” after his death, and they froze his body after his death in 2002. It’s become a bit of a macabre joke in the sports community, unfortunately. His eldest daughter fought to have his body unfrozen and cremated, but gave up the fight when she ran out of money.

Our Lesson: If you change your mind about your burial wishes, change your will by adding a codicil, or writing a new one.

I hope these stories help you avoid becoming a celebrity cautionary tale!

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!