Take a break from whatever you’re doing for entertainment during these socially distant days to test your knowledge on how much you know about health care power of attorney—a particularly important estate planning document. Because I’ve never particularly enjoyed tests (who does?), I’ll give you a hint; all the answers can be found in this recent blog post:
3. A health care PoA is a legal document that allows you to select the person (your “agent”) that you want to make health care decisions on your behalf, if and when you become unable to make them for yourself.
4. Once your health care PoA goes into effect (typically most people elect to have this be the case only if an attending physician certifies you are unable to make medical decisions independently), your agent will then be able to make decisions for you based on the information you provided in your health care PoA.
5. If there are no specifics in your health care PoA relating to a unique situation, your agent can and should make health care decisions for you based on your best interests.
6. The person you select as your health care agent should be someone in whom you have the utmost trust.
7. The agent you select will be able to access your medical records, communicate with your health care providers, and so on.
8. Your health care PoA isn’t just about end-of-life decisions; it can cover many types of medical situations and decisions. For instance, you may choose to address organ donation, hospitalization, treatment in a nursing home, home health care, psychiatric treatment, and other situations in your health care PoA.
9. For people who feel strongly about not wanting to be kept alive with machines, this can be specifically covered in a document that can be part of your health care PoA, known as a living will.
10. If you don’t have a health care PoA and you should become incapacitated to the degree where you are unable to make health care decisions for yourself, your doctor(s) will ask your family and loved ones what to do. Ultimately, if your immediate family members cannot agree on a course of action, they would have to go to an Iowa Court to resolve the matter.
11. Going to court about a person’s medical care is very complicated, time-consuming, and expensive. This is especially true when compared with the convenience of simply putting a health care PoA in place should the need arise.
12. A health care PoA gives you control over how decisions are made for you, and the agent you choose will carry out your wishes.
13. Everyone can have unique issues and concerns when estate planning. It’s completely up to YOU as to what’s contained in your health care PoA. You name the agent(s). You decide what medical decisions will be covered and how. It’s all up to you.
14. Executing a health care PoA is a smart and responsible thing to do.
All of these statements are true. That wasn’t too bad! How did you do?
Questions about how and why to execute a health care power of attorney document? Don’t hesitate to contact me. Want to get started? A great place to start is with this free, no-obligation estate plan questionnaire.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2020/04/Screen-Shot-2020-04-09-at-10.56.20-PM.png6931244Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2020-04-09 22:51:242020-05-18 11:28:32Pop Quiz: How Much do you know about this Important Estate Planning Document?
Right now health and safety are top of mind for most of us due to the COVID-19 global pandemic. Because of the potential medical implications of the virus, it’s incredibly important to consider who you trust to make important health care decisions on your behalf if you are unable to do so. I know it’s difficult to think about, but knowing you have your wishes clearly, legally articulated can provide at least some peace of mind.
A health care power of attorney is one of the documents I advise all Iowans invest in because it’s a document that can save your loved ones so much uncertainty and confusion in the future (if the document needs to be evoked). Just like you may have prepared for social distancing by purchasing the basic necessities, a health care PoA, in my opinion, is a legal necessity.
Health Care PoA: One of Six “Must Have” Estate Plan Legal Documents
An estate plan is a set of legal documents to prepare you (and your family and loved ones) for your death or disability. There are six basic estate plan legal documents that nearly everyone should have:
There are numerous other important estate planning tools, such as trusts, but these six documents are a common part of most everyone’s complete estate plan. And, the health care power of attorney document is certainly an important part of your overall estate plan.
Serious Incapacitation
A health care PoA becomes critically important when you’re seriously incapacitated and unable to make health care decisions for yourself. This new state of incapacitation, preventing you from making your own health care decisions, might be the result of serious illness, injury, lack of mental capacity, or some combination of all of these.
How a Health Care PoA Works
A health care PoA is a legal document that allows you to select the person (your “agent”) that you want to make health care decisions on your behalf, if and when you become unable to make them for yourself.
Once your health care PoA goes into effect (typically most people elect to have this be the case only if an attending physician certifies you are unable to make medical decisions independently), your agent will then be able to make decisions for you based on the information you provided in your health care PoA. If there are no specifics in your health care PoA relating to a unique situation, your agent can and should make health care decisions for you based on your best interests. Obviously, the person you select as your health care agent should be someone in whom you have the utmost trust.
Equally important, your agent will be able to access your medical records, communicate with your health care providers, and so on.
Keep in mind your health care PoA isn’t just about end-of-life decisions; it can cover many types of medical situations and decisions. For instance, you may choose to address organ donation, hospitalization, treatment in a nursing home, home health care, psychiatric treatment, and other situations in your health care PoA.
For people who feel strongly about not wanting to be kept alive with machines, specifically covered in a document that can be thought of as a part of your health care PoA known as a living will.
What Happens Without a Health Care PoA?
If you don’t have a health care PoA and you should become disabled to the degree where you are unable to make health care decisions for yourself, your doctor(s) will ask your family and loved ones what to do.
You might disagree with the decision your family makes. Or, your family members may not be able to agree on how to handle your medical care.
Ultimately, if your immediate family members cannot agree on a course of action, they would have to go to an Iowa Court and have a conservator/guardian appointed for you. It may, or may not, be someone you would have chosen. Further, the conservator/guardian may make decisions you wouldn’t have made.
Going to court to plead for a guardianship and conservatorship is all very complicated, time-consuming, and expensive. This is especially true when compared with the convenience of simply putting a health care PoA in place should the need arise. A health care PoA gives you control over how decisions are made for you, and the agent you choose will carry out your wishes.
No “One-Size-Fits-All” HealthCare PoA
All Iowans are special and unique and have special and unique issues and concerns. It’s completely up to YOU as to what’s contained in your health care PoA. You name the agent(s). You decide what medical decisions will be covered and how. It’s all up to you.
We never know when or if an accident or illness will befall us and if it will render us incapacitated. Of course, we all hope that’s never a reality, but it’s better to be prepared in case the unexpected becomes existence.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2018/07/Screen-Shot-2018-07-20-at-11.16.24-AM.png6891053Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2020-04-08 23:23:472020-05-18 11:28:33Health Care Power of Attorney: What it is & Why you Need it
Consequences from COVID-19 including skyrocketing unemployment, mental health concerns, and general basic supply scarcity has meant an increased demand for services from nonprofits in a multitude of sectors. I’ve seen a number of successful efforts to help out local businesses, such as restaurants and shops, that are hurting from lack of foot traffic. These campaigns have focused on alternative revenue streams such as delivery deals and gift cards. The same concept can and should go be applied to your favorite nonprofit organizations as well.
The federal “Coronavirus Aid, Relief, and Economic Security” (CARES) Act was recently passed and among other policy goals, aims to incentivize charitable giving. The CARES Act creates a new federal income tax charitable deduction for total charitable contributions of up to $300. The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year. This deduction is an “above-the-line” deduction. This means it’s a deduction that applies to all taxpayers, regardless if they elect to itemize.
For those taxpayers who do itemize, the law lifts the existing cap on annual contributions from 60 to 100 percent of adjusted gross income. For corporations, the law raises the annual contributions limit from 10 to 25 percent. Likewise, the cap on corporate food donations has increased from 15 to 25 percent.
Photo by Obi Onyeador on Unsplash
Gift retirement benefit plans
If you have a retirement benefit plan, like an IRA or 401(k), you may gift the entire plan, or just a percentage, to your favorite charity or charities upon your death. Retirement plans can be an ideal asset donation to a nonprofit organization because of the tax burden the plans may carry if paid to non-charitable beneficiaries, such as family members.
This can be accomplished by fully completing a beneficiary designation form from the account holder and name the intended nonprofit organization(s) as a beneficiary of your qualified plan. The funds you designate to charitable organizations will be distributed directly to the organizations tax-free and will pass outside of your estate, Individuals who elect this type of charitable giving can continue to make withdrawals from retirement plans during their lifetime.
Execute an estate plan, or update an existing one, to include bequests (gifts) to the nonprofit organizations you care about. There are multiple different types of bequests which means testators have flexibility with the structure of their estate plans. An experienced estate planner will be able to advise you on all of your options, but here is a brief overview.
Pecuniary bequest
A gift of a fixed or stated sum of money designated in a donor’s will or trust.
Demonstrative bequest
A gift that comes from an explicit source such as a particular bank account.
Percentage bequest
A percentage bequest devises a set percentage—for example 5 percent of the value of the estate. A percentage bequest may be the best format for charitable bequest since it lets the charity benefit from any estate growth during the donor’s lifetime.
Specific bequest
A gift of a designated or specific item (like real estate, a vehicle, or artwork) in the will or trust. The item will very likely be sold by the nonprofit and the proceeds would benefit that nonprofit.
Residuary bequest
A gift of all or a portion of the remainder of the donor’s assets after all other bequests have been made as well as debts and taxes paid.
Contingent bequest
A gift made on the condition of a certain event that might or might not happen. A contingent bequest is specific and fails if the condition is not made. An example of a charitable contingent bequest might be if a certain person predeceases you,
This is just a small list, as there are many ways to efficiently and effectively make charitable donations in a tax-wise manner that benefits both parties involved. Because each individual’s financial situation is unique it’s highly recommended to consult with the appropriate professional advisors.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2020/04/Screen-Shot-2020-04-07-at-12.25.33-AM.png6881044Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2020-04-05 23:32:072020-05-18 11:28:333 Ideas for How to Help Nonprofits During COVID-19
Pop Quiz: How Much do you know about this Important Estate Planning Document?
Estates & Estate Planning, Powers of AttorneyTake a break from whatever you’re doing for entertainment during these socially distant days to test your knowledge on how much you know about health care power of attorney—a particularly important estate planning document. Because I’ve never particularly enjoyed tests (who does?), I’ll give you a hint; all the answers can be found in this recent blog post:
To make things even easier, all of the statements below are either true or false.
1. An estate plan is a set of legal documents to prepare you (and your family and loved ones) for your death or disability.
2. There are six basic legal documents that nearly everyone should have as a part of an estate plan:
3. A health care PoA is a legal document that allows you to select the person (your “agent”) that you want to make health care decisions on your behalf, if and when you become unable to make them for yourself.
4. Once your health care PoA goes into effect (typically most people elect to have this be the case only if an attending physician certifies you are unable to make medical decisions independently), your agent will then be able to make decisions for you based on the information you provided in your health care PoA.
5. If there are no specifics in your health care PoA relating to a unique situation, your agent can and should make health care decisions for you based on your best interests.
6. The person you select as your health care agent should be someone in whom you have the utmost trust.
7. The agent you select will be able to access your medical records, communicate with your health care providers, and so on.
8. Your health care PoA isn’t just about end-of-life decisions; it can cover many types of medical situations and decisions. For instance, you may choose to address organ donation, hospitalization, treatment in a nursing home, home health care, psychiatric treatment, and other situations in your health care PoA.
9. For people who feel strongly about not wanting to be kept alive with machines, this can be specifically covered in a document that can be part of your health care PoA, known as a living will.
10. If you don’t have a health care PoA and you should become incapacitated to the degree where you are unable to make health care decisions for yourself, your doctor(s) will ask your family and loved ones what to do. Ultimately, if your immediate family members cannot agree on a course of action, they would have to go to an Iowa Court to resolve the matter.
11. Going to court about a person’s medical care is very complicated, time-consuming, and expensive. This is especially true when compared with the convenience of simply putting a health care PoA in place should the need arise.
12. A health care PoA gives you control over how decisions are made for you, and the agent you choose will carry out your wishes.
13. Everyone can have unique issues and concerns when estate planning. It’s completely up to YOU as to what’s contained in your health care PoA. You name the agent(s). You decide what medical decisions will be covered and how. It’s all up to you.
14. Executing a health care PoA is a smart and responsible thing to do.
All of these statements are true. That wasn’t too bad! How did you do?
Questions about how and why to execute a health care power of attorney document? Don’t hesitate to contact me. Want to get started? A great place to start is with this free, no-obligation estate plan questionnaire.
Health Care Power of Attorney: What it is & Why you Need it
Estates & Estate PlanningRight now health and safety are top of mind for most of us due to the COVID-19 global pandemic. Because of the potential medical implications of the virus, it’s incredibly important to consider who you trust to make important health care decisions on your behalf if you are unable to do so. I know it’s difficult to think about, but knowing you have your wishes clearly, legally articulated can provide at least some peace of mind.
A health care power of attorney is one of the documents I advise all Iowans invest in because it’s a document that can save your loved ones so much uncertainty and confusion in the future (if the document needs to be evoked). Just like you may have prepared for social distancing by purchasing the basic necessities, a health care PoA, in my opinion, is a legal necessity.
Health Care PoA: One of Six “Must Have” Estate Plan Legal Documents
An estate plan is a set of legal documents to prepare you (and your family and loved ones) for your death or disability. There are six basic estate plan legal documents that nearly everyone should have:
1. Estate plan questionnaire
2. Last will and testament
3. Health care power of attorney (option for living will)
4. Financial power of attorney
5. Disposition of personal property
6. Disposition of Final Remains and Instructions
There are numerous other important estate planning tools, such as trusts, but these six documents are a common part of most everyone’s complete estate plan. And, the health care power of attorney document is certainly an important part of your overall estate plan.
Serious Incapacitation
A health care PoA becomes critically important when you’re seriously incapacitated and unable to make health care decisions for yourself. This new state of incapacitation, preventing you from making your own health care decisions, might be the result of serious illness, injury, lack of mental capacity, or some combination of all of these.
How a Health Care PoA Works
A health care PoA is a legal document that allows you to select the person (your “agent”) that you want to make health care decisions on your behalf, if and when you become unable to make them for yourself.
Once your health care PoA goes into effect (typically most people elect to have this be the case only if an attending physician certifies you are unable to make medical decisions independently), your agent will then be able to make decisions for you based on the information you provided in your health care PoA. If there are no specifics in your health care PoA relating to a unique situation, your agent can and should make health care decisions for you based on your best interests. Obviously, the person you select as your health care agent should be someone in whom you have the utmost trust.
Equally important, your agent will be able to access your medical records, communicate with your health care providers, and so on.
Many Types of Health Care Decision
Keep in mind your health care PoA isn’t just about end-of-life decisions; it can cover many types of medical situations and decisions. For instance, you may choose to address organ donation, hospitalization, treatment in a nursing home, home health care, psychiatric treatment, and other situations in your health care PoA.
For people who feel strongly about not wanting to be kept alive with machines, specifically covered in a document that can be thought of as a part of your health care PoA known as a living will.
What Happens Without a Health Care PoA?
If you don’t have a health care PoA and you should become disabled to the degree where you are unable to make health care decisions for yourself, your doctor(s) will ask your family and loved ones what to do.
You might disagree with the decision your family makes. Or, your family members may not be able to agree on how to handle your medical care.
Ultimately, if your immediate family members cannot agree on a course of action, they would have to go to an Iowa Court and have a conservator/guardian appointed for you. It may, or may not, be someone you would have chosen. Further, the conservator/guardian may make decisions you wouldn’t have made.
Going to court to plead for a guardianship and conservatorship is all very complicated, time-consuming, and expensive. This is especially true when compared with the convenience of simply putting a health care PoA in place should the need arise. A health care PoA gives you control over how decisions are made for you, and the agent you choose will carry out your wishes.
No “One-Size-Fits-All” HealthCare PoA
All Iowans are special and unique and have special and unique issues and concerns. It’s completely up to YOU as to what’s contained in your health care PoA. You name the agent(s). You decide what medical decisions will be covered and how. It’s all up to you.
Do you have a Health Care Power of Attorney Yet?
We never know when or if an accident or illness will befall us and if it will render us incapacitated. Of course, we all hope that’s never a reality, but it’s better to be prepared in case the unexpected becomes existence.
Do you have further questions about a health care PoA for you or your family members? You can email me anytime at gordon@gordonfischerlawfirm.com or call me on my cell at 515-371-6077. I offer a free consultation to all, as well as a no-obligation, Estate Plan Questionnaire.
3 Ideas for How to Help Nonprofits During COVID-19
Charitable Giving, Estates & Estate PlanningConsequences from COVID-19 including skyrocketing unemployment, mental health concerns, and general basic supply scarcity has meant an increased demand for services from nonprofits in a multitude of sectors. I’ve seen a number of successful efforts to help out local businesses, such as restaurants and shops, that are hurting from lack of foot traffic. These campaigns have focused on alternative revenue streams such as delivery deals and gift cards. The same concept can and should go be applied to your favorite nonprofit organizations as well.
Here are three ways you can help nonprofits while continuing to practice safe social distancing.
Donate cash under the CARES Act
The federal “Coronavirus Aid, Relief, and Economic Security” (CARES) Act was recently passed and among other policy goals, aims to incentivize charitable giving. The CARES Act creates a new federal income tax charitable deduction for total charitable contributions of up to $300. The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year. This deduction is an “above-the-line” deduction. This means it’s a deduction that applies to all taxpayers, regardless if they elect to itemize.
For those taxpayers who do itemize, the law lifts the existing cap on annual contributions from 60 to 100 percent of adjusted gross income. For corporations, the law raises the annual contributions limit from 10 to 25 percent. Likewise, the cap on corporate food donations has increased from 15 to 25 percent.
Photo by Obi Onyeador on Unsplash
Gift retirement benefit plans
If you have a retirement benefit plan, like an IRA or 401(k), you may gift the entire plan, or just a percentage, to your favorite charity or charities upon your death. Retirement plans can be an ideal asset donation to a nonprofit organization because of the tax burden the plans may carry if paid to non-charitable beneficiaries, such as family members.
This can be accomplished by fully completing a beneficiary designation form from the account holder and name the intended nonprofit organization(s) as a beneficiary of your qualified plan. The funds you designate to charitable organizations will be distributed directly to the organizations tax-free and will pass outside of your estate, Individuals who elect this type of charitable giving can continue to make withdrawals from retirement plans during their lifetime.
Write in bequests to your estate plan
Execute an estate plan, or update an existing one, to include bequests (gifts) to the nonprofit organizations you care about. There are multiple different types of bequests which means testators have flexibility with the structure of their estate plans. An experienced estate planner will be able to advise you on all of your options, but here is a brief overview.
Pecuniary bequest
A gift of a fixed or stated sum of money designated in a donor’s will or trust.
Demonstrative bequest
A gift that comes from an explicit source such as a particular bank account.
Percentage bequest
A percentage bequest devises a set percentage—for example 5 percent of the value of the estate. A percentage bequest may be the best format for charitable bequest since it lets the charity benefit from any estate growth during the donor’s lifetime.
Specific bequest
A gift of a designated or specific item (like real estate, a vehicle, or artwork) in the will or trust. The item will very likely be sold by the nonprofit and the proceeds would benefit that nonprofit.
Residuary bequest
A gift of all or a portion of the remainder of the donor’s assets after all other bequests have been made as well as debts and taxes paid.
Contingent bequest
A gift made on the condition of a certain event that might or might not happen. A contingent bequest is specific and fails if the condition is not made. An example of a charitable contingent bequest might be if a certain person predeceases you,
This is just a small list, as there are many ways to efficiently and effectively make charitable donations in a tax-wise manner that benefits both parties involved. Because each individual’s financial situation is unique it’s highly recommended to consult with the appropriate professional advisors.
I’d be happy to discuss any questions, concerns, or ideas you may have. Contact me via email at gordon@gordonfischerlawfirm.com or by phone at 515-371-6077.