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The Elder Firm,
LLC.
601 W. Nifong Blvd. Suite 1D
Stone Bridge Park
Columbia, MO 65203
Phone (573) 449-4400
Fax (573) 449-6237
Email info@theelderfirm.com
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Preserving Your Legacy |
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ABOUT
US |
RESOURCES |
SEMINARS |
FAQ |
QUESTIONNAIRE |
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FAQs
Why should I
pay a lawyer a lot of money for some simple documents?
You can buy software that produces most of the estate
planning documents an attorney will prepare for you. Using
such documents could turn out all right for you and your
heirs, but things could go horribly wrong as well, and
you'll never know if you did it right until it's too late.
You could end up paying a nursing home unnecessarily or your
heirs could pay unnecessary taxes or expend legal fees
fighting each other.
Only a qualified attorney can educate clients on what
issues they should be aware of in their individual
circumstances and then recommend appropriate language to
deal with the client's specific situation. Do you have a
taxable estate? Do you own significant amounts of
tax-deferred retirement plans? Do you know how to fund the
revocable trust provided on the computer program? Is there
anything about your estate that is unusual, such as having a
disabled child? In short, if there's anything about your
situation that's not plain vanilla, you need to see a
lawyer. And only a lawyer can determine whether your
situation qualifies as "plain vanilla." As with joint
accounts, the problems you may create by not getting
competent legal advice probably won't be yours, but may well
be your children's. Do you want to risk leaving that legacy?
Can the attorney-in-fact be compensated
for his or her work?
Yes, if the
principal has agreed to pay the attorney-in-fact. In
general, the attorney-in-fact is entitled to "reasonable"
compensation for his or her services. However, in most
cases, the attorney-in-fact is a family member and does not
expect to be paid. If an attorney-in-fact would like to be
paid, it is best that he or she discuss this with the
principal, agree on a reasonable rate of payment, and put
that agreement in writing. That is the only way to avoid
misunderstandings in the future.
When does a
health care proxy take effect?
In general, a
health care proxy takes effect only when the principal
requires medical treatment and a physician determines that
the principal is unable to communicate his or her wishes
concerning treatment. How this works exactly can depend on
the laws of the particular state and the terms of the health
care proxy itself. A medical directive, whether part of a
health care proxy or separate, will be followed when you can
no longer direct medical providers yourself.
What if the
principal regains the ability to communicate his or her own
decisions?
If the principal
becomes able to express his or her own wishes at any time,
he or she will be listened to and the health care proxy will
have no effect.
Can I move my
Individual Retirement Account (IRA) from one financial
institution to another?
You may withdraw
the funds tax-free if you roll them over into a new IRA
within 60 days. If you fail to complete the rollover in
time, you will have to pay income taxes on the amount
withdrawn and, if you are under 59 ½, a 10 percent penalty.
But you may only do this once a year unless the transfer is
effected from institution to institution without the funds
passing through your hands. If the transaction is purely
between institutions, you may move your IRA as often as you
like without incurring any penalty. The 60-day rollover
offers an opportunity for people who want to consolidate
accounts, are moving, or expect to get a better return with
a new institution. It can also be used in the event of a
short-term cash shortage. But be careful to complete the
rollover. If you do not, taxes and a penalty will be due on
the amount withdrawn.
How do I find a
good financial planner?
The best way (as
with any professional) is to ask your friends, colleagues
and relatives if they have worked with anyone they can
recommend. Also, ask your lawyer or accountant, since they
often work with financial planners. If these inquiries don’t
turn up someone appropriate for you, check the Yellow Pages,
call your Chamber of Commerce, or call 800-282-PLAN (7526)
for the name of a Certified Financial Planner (CFP) in your
area. Some planners charge a fee, while others provide the
service without charge, hoping to make commissions on your
investments. You may be able to find a fee-only financial
planner by calling 888-FEE-ONLY (333-6659), which lists
members of the National Association of Personal Financial
Advisors. Interview your candidates over the phone to learn
their approach to planning and investments. Ask for
references, and make sure you follow up and call the
references. After you have narrowed your field of prospects,
meet at least two in person before you make your final
selection.
Does it matter
whether the financial planner has any particular
credentials?
Many financial
planners have initials after their names, such as CFP
(Certified Financial Planner), CLU (Certified Life
Underwriter), or PFS (Personal Financial Specialist). There
are about 300,000 people in the United States who call
themselves financial planners. Of these, about 32,000 are
CFPs and about 1,600 PFSs. The fact that a planner is
certified indicates that he or she has enough interest and
training in the field to take the required courses and pass
the appropriate tests for certification. That’s important.
But it’s no guarantee that the financial planner will do a
good job for you, or that someone without the certification
will not.
Can a person
object to a proposed guardianship for him- or herself or for
someone else?
While the rules
differ from state to state, someone who is the object of a
proposed guardianship has the right to object to the
appointment of a guardian. Generally, next-of-kin also has
the right to object. In many states, the proposed ward has
the right to a court-appointed attorney if she cannot afford
one on her own.
How does the SSA
calculate a retired worker’s monthly benefit?
The Social
Security Administration (SSA) bases its benefit calculation
on the retiree’s highest 35 years of earnings up to the
amount subject to Social Security withholding each year. If
necessary, it will use years in which the retiree has low
earnings or no earnings to bring the total years of earnings
up to 35. The SSA then calculates the retiree’s average
monthly earnings over those 35 years adjusted for inflation.
The retiree’s monthly Social Security check is arrived at by
adding together 90 percent of the first $627 of the average
monthly earnings, 32 percent of the next $3,152 and 15
percent of any average monthly earnings above $3,779. (These
are the figures for 2005; they are adjusted each year to
reflect inflation.) As you can see, the formula is weighted
to favor those who earned less during their working lives,
giving them a 90 percent retirement benefit on most of their
earnings, while giving the highest earners only a 15 percent
benefit on a large portion of their working income (and no
benefit on earnings above what was subject to tax, which in
2005 is $90,000). You can calculate your future Social
Security benefit based on your current and projected
earnings by using the SSA's online
Benefits Calculator.
Can I collect
more than one Social Security benefit simultaneously?
No. If you are
eligible for two benefit programs, you will receive the
higher of the two benefit amounts, but not both. The
exception is Supplemental Security Income, which you can
receive while collecting benefits from another Social
Security program.
What’s involved in appealing
Social Security decisions, and is it worth it?
If your
application for benefits is denied or you are receiving less
than you believe you deserve, you can appeal. There are four
stages of the appeal process, and you must go through one
before you can move to the next.
At the first stage, reconsideration, your claim is
reviewed by someone other than the person who made the
initial decision regarding your benefits. This person’s
decision is based on the material in your file when the
original decision was made, plus any new evidence you would
like to submit. Unless you are appealing a Social Security
decision to terminate your disability benefits, you do not
have a right to meet face-to-face with the person making the
decision, although you can request to do so. A decision can
take up to two or three months. If the decision goes against
you, you have 65 days from the date on the written notice to
appeal to the next level. A copy of the Request for
Reconsideration form in PDF format is available from the
Social Security Administration’s Web site. To find it,
click here. You can also request
the form from your local Social Security office or by
calling 800-772-1213.
If the reconsideration goes against you, the next step is
a formal administrative hearing before an independent
administrative law judge (ALJ). Again, you must fill out a
special form to request such a hearing. For an online copy
of this form,
click here, or you can contact
your local Social Security office or call 800-772-1213. This
hearing may be your best shot at getting an unfavorable
decision reversed, so you should consider obtaining the
services of an attorney or other professional knowledgeable
about Social Security matters to assist you at this stage.
(When providing written notice denying a claim, the SSA will
send a list of local community groups and legal services
organizations that can either help you with an appeal or
refer you to someone who can.) You are allowed to appear at
this hearing, and it’s in your best interests to do so. This
puts a human face on the hearing and permits the judge to
ask you questions. A friend, relative, attorney or other
advocate may represent you at the hearing, and you can
present witnesses or other evidence to the judge.
If the ALJ rules against you, your next step is the
Social Security Appeals Council, which conducts reviews of
hearing decisions. Your chances of success here are fairly
slim. First, the Appeals Council does not review all cases
that are appealed, and if it does decide to review your
case, it meets only in Washington, D.C., so you will have to
travel there or send a representative. Still, you must file
an appeal to the Appeals Council in order to move on to the
next step of taking the appeal to federal court. If you
haven’t retained the services of an attorney knowledgeable
about Social Security matters up to this point, you should
seriously consider doing so now. If the Appeals Council is
to overturn an ALJ decision, the odds are that it will do so
only on the basis of a legal error made by the ALJ. Again,
you must fill out a special form to request an Appeals
Council review. For an online copy of this form,
click here, or you can contact
your local Social Security office or call 800-772-1213.
If you disagree with the Appeals Council’s decision in
the case, you may file a civil lawsuit in the United States
District Court (federal court) for the area where you live.
You have 60 days after the Appeals Council decision is
mailed to do so. Such a lawsuit is an expensive undertaking,
but it may be worth it depending on the money at stake and
the strength of your case. If you do decide to go forward,
you will need to be represented by an attorney who is
experienced in handling similar Social Security cases.
Social Security law strictly limits the fees that attorneys
can charge for such representation. Many lawyers will take a
case at any stage in the appeals process on a contingency
basis—that is, they will collect only if you win and will
then take a percentage of your past due benefits. Social
Security rules state that they can collect 25 percent of
your past due benefits or $5,300, whichever is less.
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