Thursday, May 19, 2022

DelGallo.com Wealth Management Essentials - A Research Perspective on Life Planning and Monitoring For Families with Children or Dependents with Special Needs

 

DelGallo.com Wealth Management EssentialsA Research Perspective on Life Planning and Monitoring For Families with Children or Dependents with Special Needs       

 LEONARD J. DEL GALLO JR., M.S., MPASsm, CFP® 

(www.DELGALLO.COM)     Del Gallo Financial Services, LLC                    

 A disability can have a dramatic impact on all family members. According to the 2003 U.S. Census, over 77 million Americans, or more than 27 percent of the U.S. Population were disabled1. It is critical for families to prepare for unforeseen events1. “Statistical studies indicate that a significant portion of the adult population provides care for chronically ill, disabled, or aged family members” 1. As result, families and planners need to review estate plans, multi-generation family issues, government benefits, trusts, and life planning issues1.

Disability is defined as the inability to do something, deprivation, or lack of physical, intellectual or emotional capacity4. Disability has been defined, at times, as an environmental problem, whereas other teachers define the term as a person-centered problem or deviation from the norm6. A person with a disability could be considered having a special need and learning to take care of this need, for a caregiver, can be like waking up in a different country without the ability to speak the language1. The learning process can take time. A Certified Financial Planner® professional, with expertise in special needs planning, can also guide families through government and community assistance programs to educate them in the fundamentals of the system1

Family resources can be dependent on the level of family income. Families with children or dependents with disabilities are often facing poverty or severe stress on their budget2. “There are an extensive number of educational impacts related to poverty, but the one we will highlight here is the capacity of families from poverty backgrounds to attend school activities and teacher parent conferences” 2. A common misconception is that parents who are not active attending events may lack interest in their child but it may be due to the lack of financial resources, transportation, self-confidence, or inability to get time off from their job2. A family that is living in poverty is more likely to have a child who is late developing vocabulary, lower IQ, and lower reading level2. Financial planning may help families avert poverty and reduced access to resources1.

Parents are not alone in the responsibility of caring for a child or dependent with a disability. Grandparents are becoming primary caregivers across all ethnic groups and socioeconomic backgrounds5. Grandparents who are taking care of children without a parent present may be on a fixed income and 33.9% are living below the poverty level5. Planning can minimize the stress, physical health concerns, isolation, anxiety, and depression faced by many grandparents who suddenly find themselves as caregivers for a child with a disability5. Grandparents require a broad range of resource information in addition to transportation, behavior, funding, insurance, community, medical equipment, medication, housing, education, and skill development5. A well written financial plan for the family, including provisions for special needs, may prepare a caregiver to help a child or dependent with a disability. One study demonstrated that once grandparents receive specific information to answer their questions they are better able to meet the needs of their grandchildren with disabilities5. “Many grandparents have assumed parenting roles at great personal expense, filling a great family and community need; with needed supports, the grandchildren in their care, those with special needs and their typically developing siblings, will make progress and have successful lives” 5. Grandparents and siblings as primary and secondary caregivers are significant and can increase under certain economic and social conditions, while the stress and concerns can be reduced with appropriate planning and education at all stages in life5.

Financial planning can help each family member by eliminating or reducing the financial burden and legal struggles that can occur during or after a disability is discovered1. A Certified Financial Planner® professional can help by coordinating assets, documents, programs, and benefits1. Nonprofit organizations, websites, medical professionals, and other resources can also provide information to minimize economic hardship and personal exhaustion for caregivers1.

Planning for the lifetime of a child or dependent may involve; government programs, wills, trusts, guardianship plans, letters of intent, risk management techniques, and communication among family members3. “A conventional estate plan will rarely meet the needs of an individual with disabilities and may even prove to be detrimental by causing a loss of federal and state assistance, residential services, or health care benefits” 3. It is critical that families obtain and maintain eligibility for benefits to provide financial and medical stability for the disabled individual during their lifetime1.

The two major federal programs that provide monthly income to the disabled are Social Security Disability Insurance and Supplemental Security Income and receiving eligibility can be an arduous and time-consuming process1. Once a disabled individual is eligible and receives either Social Security Disability Insurance or Supplemental Security Income, they will be offered either Medicare or Medicaid which are both government offered health benefit programs1. Medicare is offered in coordination with Social Security Disability Insurance and Medicaid is offered in coordination with Supplemental Security Income1.

A will is a legal document that is created to determine how your estate is divided, identifies a guardian for minor children, and prevents the laws of the state from being the only method for dictating how your estate is distributed3. Parents are guardians of their children but once the child becomes an adult, legal status vary by state, a parent must be appointed by the court to continue as a guardian and this legal process may be executed at the local Clerk of the Court prior to a child becoming a legal adult3. If all remaining guardians were to die, the will, would identify a successor guardian for the court to consider3. Within the will, families may use exclusion, disinheritance, direct bequests, and morally obligated gifts as a few of the possible methods for estate distribution3. Many options exist to pass financial resources and families should investigate all the option available with their planning professionals before deciding on the best plan for their family3.

A trust is a flexible and efficient way to manage the assets of a family both during a lifetime and upon death3. A support trust and supplemental needs trust are two different types of trusts that are predominantly used for individuals with disabilities and can be most beneficial if created during a parent’s lifetime3. A support trust is utilized for any need of a beneficiary but is likely to disqualify an individual recipient from government benefits3. A supplemental needs trust if properly written will not disqualify an individual from government benefits and is designed to supplement, not supplant, government benefits and the trust cannot make a direct payment to the beneficiary or use trust assets for basic needs like food, clothing, and shelter3. A supplemental needs trust is used to purchase goods and services to enhance the beneficiary’s life and can be used to provide vacations, computers, companions, and other extras to enhance the quality of life for a disabled beneficiary3. A supplemental needs trust when properly written and managed is an exempt trust that requires the disabled person to have no access to the assets while funds within the trust can only be used for supplemental expenses that Social Security Income and Medicaid do not cover1.  

The trustees and successor trustees are the individuals who are responsible for managing the trust and should be chosen with great care1. Corporate trustees are an option to consider when family members need help, filling a role of final successor trustee, or used in cases where no other individual or agency is suitable1. Fees and costs can vary depending on the services selected with a corporate trustee, time spent to review distributions, and other options selected to safeguard benefits1. An attorney who specializes in creating supplemental needs trusts should be used along with a Certified Financial Planner® professional who can provide appropriate resources to help the caregivers upon the death or incapacitation of the parents1

A letter of intent is a not a legal document but an important part of the future planning for a child or dependent with a disability and a resource for a care provider3. The letter of intent will describe the history of a child, current status, hopes, dreams, goals, schedule, records, and insight into the needs of a child3. The letter may be placed on a computer to modify at least annually and should be accessible for all care providers3. A letter of intent should detail all aspects of the child’s life; history; future desires; housing/residential care; educational needs; employment history; medical care and management; behavior management; social environment; and religious environment3. There is no limit to the amount of information contained within a letter of intent and many families will provide a video to go along with any written documentation3.

Planning is critical as families try to adapt to a disability in a household, the variables change; the age; health status, needs of the disabled person, availability of insurance programs, government funding laws, availability of support programs, and employment, are a few examples1. Trusted and competent advisors can provide direction, pinpoint obstacles, and provide solutions1. “Disability knows no limits of age, background, or occupation” 1. Life planning takes time to complete and monitor but every family should explore and address all aspects that apply to their child or dependent with special needs so no critical detail is missed1.    

Any questions please contact Del Gallo Financial Services, LLC by visiting our website at http://www.delgallo.com/   Del Gallo Financial Services, LLC can arrange an educational seminar or workshop for your organization’s members and/or employees. This research commentary is intended to educate families so they may gain an introduction to a difficult planning topic and is not intended for any other purpose. Articles created by Len Del Gallo Jr., may not be copied or used without written permission from Len Del Gallo Jr. Please note that some information may be protected by copyright laws. Del Gallo Financial Services, LLC and its’ representatives do not provide tax or legal advice. Please consult your tax advisor or attorney for guidance on such matters and before implementing any strategies and/or updates to your planning. Del Gallo Financial Services, LLC is a Registered Investment Advisor and Licensed Insurance Agency.                                                 

                                                                         Works Cited

1.     Stone, Constance A. “In the Blink of an Eye: Special Needs Planning.” Journal of Financial Planning. Oct. 2006: Vol. 19, Iss.10: 64-74. Print.

2.     Turnbull, Ann, Rud Turnbull, Michael L. Wehmeyer. Exceptional Lives Special Education in Today’s Schools. 5th ed. Ohio: Merrill Prentice Hall, 2007. Print.

3.     Dixon, Beth. Planning For The Future For Your Loved One With CdLSCdLS-USA Foundation. Cornelia de Lange Syndrome Foundation, Incn.d.Web23 Mar. 2006.

4.     College for Financial Planning® University Library. “dis·ability” Merriam-Webster’s Third New International Dictionary Unabridged. N. pag. 2002. Web. 14 Jun. 2010.

5.     Gallagher, Peggy A., Karen Kresak, Cheryl A. Rhodes. Perceived Needs of Grandmothers of Children With Disabilities. College for Financial Planning® University Library. ProQuest. Topics in Early Childhood Special Education. Austin: May 2010. Vol. 30, Iss.1: 56-65. Web. 14 Jun. 2010.

6.     Carter, Nari, et al. Educators’ Perceptions of Collaborative Planning Processes for Students With Disabilities. College for Financial Planning® University Library. ProQuest. Preventing School Failure. Washington: Fall 2009. Vol. 54, Iss.1: 60-71. Web. 14 Jun. 2010.


DelGallo.com Real Estate Website:  https://delgallo.com/LENDELGALLOREALESTATE.html
Leonard J. Del Gallo Jr., Broker Associate - Licensed Broker in Connecticut, U.S.A
Web: https://leonardjdelgallojr.bhhsneproperties.com/
Managing Broker: Berkshire Hathaway HomeServices New England Properties
www.bhhsneproperties.com
Office: 172 West Main Street
Avon, Ct. 06001   
Phone: (860) 677-7321  Ask for Len Del Gallo Jr.
Del Gallo Financial Services, LLC is not Affiliated with Berkshire Hathaway HomeServices N.E. Properties.

Please see DELGALLO.com for disclosures. The aforementioned material is a product and service listing and is not intended to be an offer for the sale of securities, insurance, or real estate and is not intented to provide planning or investment advice. Securities are offered by prospectus only. There may be broker dealers, custodians, 3rd parties and their affiliates, investment advisers, and others who may offer the same services for the same fees, lower fees, higher fees, or no fees. Please review all disclosures, agreements, and documents.

The website of https://delgallo-real-estate.blogspot.com/ and DELGALLO.com and related pages on these sites may be registered and subject to copyright protection.

Please note that the information being provided is strictly a courtesy. When you visit a link at any of the websites or ads provided or mentioned on this website, you are leaving this website. Del Gallo Financial Services, LLC and Len Del Gallo Jr. make no representation as to the completeness or accuracy of information provided at any other websites that you visit. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or use of a third-party website.


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DELGALLO.com WEALTH MANAGEMENT ESSENTIALS – Is Mortgage Protection Insurance Worth a Review?

 

DELGALLO.com WEALTH MANAGEMENT ESSENTIALS – Is Mortgage Protection Insurance Worth a Review?

LEONARD J. DEL GALLO JR., M.S., MPASsm, CFP® 

(www.DELGALLO.COM)     Del Gallo Financial Services, LLC 

Mortgage Protection Insurance is one of the specialized insurance coverages that may help a family during difficult times and very few people know about it. Although life insurance coverage is there to protect in the event of death, this type of specialized coverage can do much more with many types of optional and standard riders that are available to add to the insurance policy. A typical policy can add many types of riders that may help cover costs in the event of disability, unemployment, accidental death, and critical illness. Other riders may enable accelerated death benefits, living benefits, return of premium, and/or a waiver of premium in the event of residential damage, to name a few of the many riders that can be available with this type of insurance coverage. Del Gallo Financial Services, LLC specializes in mortgage protection insurance because it can be a valuable tool and many times has simplified underwriting which can speed up the application process. Call (860-675-5201) or visit our website at http://www.delgallo.com/  Del Gallo Financial Services, LLC can help guide you through the selection of a carrier that may provide your family the best coverage available at a reasonable price and also spend time with you to review you’re planning needs.

Any questions please contact Del Gallo Financial Services, LLC by visiting our website at https://delgallo.com/. Del Gallo Financial Services, LLC can arrange an educational seminar or workshop for your organization’s members and/or employees. This research commentary is intended to educate families so they may gain an introduction to a difficult planning topic and is not intended for any other purpose. Articles created by Len Del Gallo Jr., may not be copied or used without written permission from Len Del Gallo Jr. Please note that some information may be protected by copyright laws. Del Gallo Financial Services, LLC and its’ representatives do not provide tax or legal advice. Please consult your tax advisor or attorney for guidance on such matters and before implementing any strategies and/or updates to your planning. Del Gallo Financial Services, LLC is a Registered Investment Advisor and Licensed Insurance Agency.


DelGallo.com Real Estate Website:  https://delgallo.com/LENDELGALLOREALESTATE.html
Leonard J. Del Gallo Jr., Broker Associate - Licensed Broker in Connecticut, U.S.A
Web: https://leonardjdelgallojr.bhhsneproperties.com/
Managing Broker: Berkshire Hathaway HomeServices New England Properties
www.bhhsneproperties.com
Office: 172 West Main Street
Avon, Ct. 06001   
Phone: (860) 677-7321  Ask for Len Del Gallo Jr.
Del Gallo Financial Services, LLC is not Affiliated with Berkshire Hathaway HomeServices N.E. Properties.

Please see DELGALLO.com 
for disclosures. The aforementioned material is a product and service listing and is not intended to be an offer for the sale of securities, insurance, or real estate and is not intented to provide planning or investment advice. Securities are offered by prospectus only. There may be broker dealers, custodians, 3rd parties and their affiliates, investment advisers, and others who may offer the same services for the same fees, lower fees, higher fees, or no fees. Please review all disclosures, agreements, and documents.

The website of https://delgallo-real-estate.blogspot.com/ and DELGALLO.com and related pages on these sites may be registered and subject to copyright protection.

Please note that the information being provided is strictly a courtesy. When you visit a link at any of the websites or ads provided or mentioned on this website, you are leaving this website. Del Gallo Financial Services, LLC and Len Del Gallo Jr. make no representation as to the completeness or accuracy of information provided at any other websites that you visit. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or use of a third-party website.


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DelGallo.com Wealth Management Essentials - Financial Education and Employer Compliance

DelGallo.com Wealth Management EssentialsFinancial Education and Employer Compliance

By LEONARD J. DEL GALLO JR., M.S., MPASsm, CFP® 

(www.DELGALLO.COM)     Del Gallo Financial Services, LLC 

Financial Education is one aspect of the ERISA (DOL) 404 (c) requirements that is often not fulfilled by many employers and can create financial, staffing, and legal issues for an employer from lack of compliance.

“Does your pension plan have a published schedule of participant information and education events? Is a document file maintained, containing copies of all communications with plan participants? At every meeting with plan participants, is a list of attendees recorded and filed?”(1)

Many employers are under the belief that providing a pension and health plan at the company is sufficient to attract and retain quality employees. Others are under the impression that their insurance agent and/or their broker is providing all the services required to be compliant with government regulations. In addition, many brokers and insurance agents are not Certified Financial Planning Professionals ® or qualified to provide financial education workshops or seminars. It is ultimately the employer’s responsibility to make sure that their company is compliant with state and federal laws and ensure there are no ERISA violations or conflicts of interest. Human resource departments and/or staff members may not be trained or licensed to provide financial education services and outsourcing is often an approach that works best!

Just providing benefits to employees may not be enough! Please have your human resource officer or company fiduciary representative contact Del Gallo Financial Services, LLC today.

“Financial stress is a common preoccupation for people this time of year, as many struggle to work out how to fund a perfect Christmas for their loved ones. Even the more affluent among us will have their own set of financial worries, such as how they will secure the finance required to up-size their family home in time for the next school year.”(2) Employers who offer no support to employees may find employees less productive or absent more often. Employees may be designated into groups by an employer to segment certain financial education services to offer if applicable.

“Research conducted by employee benefits provider Sodexo Benefits and Rewards Services earlier this year found that of 760 UK employees ranging from 18 to 64 year-olds, the age group worst affected by financial stress were those aged 18-34. Among this group, more than a third of employees claimed their productivity had been damaged due to money worries, and across the whole workforce 32% admitted calling in sick due to stress, with 36% stating that financial pressure was the main reason.”(2)

Many more employers are offering workplace financial education, covering all manner of topics including how a mortgage works and student loan management for younger staff, financial planning for middle-aged workers and retirement planning for older staff, to make sure their employees have a sense of financial well-being. (2) The education services may be in the form of seminars, online meetings, in-person meetings, phone access or other designs that may work best in some office settings. These financial education services need not be expensive and many companies provide discounts or cost sharing for education services outside of their company’s general compliance requirements. 

Any questions please contact Del Gallo Financial Services, LLC by visiting our website at https://delgallo.com/. Del Gallo Financial Services, LLC can arrange an educational seminar or workshop for your organization’s members and/or employees. This research commentary is intended to educate families so they may gain an introduction to a difficult planning topic and is not intended for any other purpose. Articles created by Len Del Gallo Jr., may not be copied or used without written permission from Len Del Gallo Jr. Please note that some information may be protected by copyright laws. Del Gallo Financial Services, LLC and its’ representatives do not provide tax or legal advice. Please consult your tax advisor or attorney for guidance on such matters and before implementing any strategies and/or updates to your planning. Del Gallo Financial Services, LLC is a Registered Investment Advisor and Licensed Insurance Agency. 

                                                             Works Cited

  1. SOFA – The Society for Financial Awareness. “2019. ERISA (DOL) 404 [c] Requirement.” http://www.sofausa.org/legal/erisa
      2. Forbes. “Why Workplace Financial Education Should Be Part of Every Employer’s Agenda.” 
          Clare Bettelley as Contributor. 11/22/14.
          https://www.forbes.com/sites/clarebettelley/2014/11/22/why-workplace-financial-education-
          should-be-part-of-every-employers-corporate-social-responsibility-agendas/#78f3609125c1


DelGallo.com Real Estate Website:  https://delgallo.com/LENDELGALLOREALESTATE.html
Leonard J. Del Gallo Jr., Broker Associate - Licensed Broker in Connecticut, U.S.A
Web: https://leonardjdelgallojr.bhhsneproperties.com/
Managing Broker: Berkshire Hathaway HomeServices New England Properties
www.bhhsneproperties.com
Office: 172 West Main Street
Avon, Ct. 06001   
Phone: (860) 677-7321  Ask for Len Del Gallo Jr.
Del Gallo Financial Services, LLC is not Affiliated with Berkshire Hathaway HomeServices N.E. Properties.

Please see DELGALLO.com for disclosures. The aforementioned material is a product and service listing and is not intended to be an offer for the sale of securities, insurance, or real estate and is not intented to provide planning or investment advice. Securities are offered by prospectus only. There may be broker dealers, custodians, 3rd parties and their affiliates, investment advisers, and others who may offer the same services for the same fees, lower fees, higher fees, or no fees. Please review all disclosures, agreements, and documents.

The website of https://delgallo-real-estate.blogspot.com/ and DELGALLO.com and related pages on these sites may be registered and subject to copyright protection.

Please note that the information being provided is strictly a courtesy. When you visit a link at any of the websites or ads provided or mentioned on this website, you are leaving this website. Del Gallo Financial Services, LLC and Len Del Gallo Jr. make no representation as to the completeness or accuracy of information provided at any other websites that you visit. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or use of a third-party website.


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DELGALLO.com WEALTH MANAGEMENT ESSENTIALS –A few Provisions to Consider within Your Estate Planning Documents

 

DELGALLO.com WEALTH MANAGEMENT ESSENTIALS A few Provisions to Consider within Your Estate Planning Documents

By LEONARD J. DELGALLO JR., M.S. MPASsm, CFP®

 (www.DELGALLO.COM)           Del Gallo Financial Services, LLC

There are a number of legal documents and methods that can be created and used if necessary through provisions within the will or trust which can then be used in conjunction with any existing revocable living trusts, irrevocable trusts, or other supporting legal documents. A pour-over trust is a type of revocable trust that will allow assets to be placed in it by the will, or by naming it as the beneficiary to avoid having assets go through probate. A contingent trust or standby trust is another revocable trust that is able to manage assets if a client is unable to do so and is triggered by physical, emotional, or physical incapacity. The use of a disclaimer where the beneficiary refuses to accept the transfer of property can be incorporated into the estate planning documents but must comply with federal and state laws. Individuals may appoint themselves, their children, or others as trustees of a revocable trust and have contingent trustees or corporate trustees in place, as a backup, if either Spouse is unable to serve as trustee due to incapacity or some other reason as defined within the trust document.

Any questions please contact Del Gallo Financial Services, LLC by visiting our website at https://delgallo.com/. Del Gallo Financial Services, LLC can arrange an educational seminar or workshop for your organization’s members and/or employees. This research commentary is intended to educate families so they may gain an introduction to a difficult planning topic and is not intended for any other purpose. Articles created by Len Del Gallo Jr., may not be copied or used without written permission from Len Del Gallo Jr. Please note that some information may be protected by copyright laws. Del Gallo Financial Services, LLC and its’ representatives do not provide tax or legal advice. Please consult your tax advisor or attorney for guidance on such matters and before implementing any strategies and/or updates to your planning. Del Gallo Financial Services, LLC is a Registered Investment Advisor and Licensed Insurance Agency. 

                                                    Works Cited

Leimberg, Stephan R., et al. Tools and Techniques of Employee Benefit and Retirement Planning. 5th ed. Ohio:The National Underwriter Company, 1997. Print.

Leimberg, Stephan R., et al. Tools and Techniques of Estate Planning. 15th ed. Ohio:The National Underwriter Company, 2011. Print.

Leimberg, Stephan R., et al. Tools and Techniques of Income Tax Planning. 3rd ed. Ohio: The National Underwriter Company, 2009. Print.



DelGallo.com Real Estate Website:  https://delgallo.com/LENDELGALLOREALESTATE.html
Leonard J. Del Gallo Jr., Broker Associate - Licensed Broker in Connecticut, U.S.A
Web: https://leonardjdelgallojr.bhhsneproperties.com/
Managing Broker: Berkshire Hathaway HomeServices New England Properties
www.bhhsneproperties.com
Office: 172 West Main Street
Avon, Ct. 06001   
Phone: (860) 677-7321  Ask for Len Del Gallo Jr.
Del Gallo Financial Services, LLC is not Affiliated with Berkshire Hathaway HomeServices N.E. Properties.

Please see DELGALLO.com for disclosures. The aforementioned material is a product and service listing and is not intended to be an offer for the sale of securities, insurance, or real estate and is not intented to provide planning or investment advice. Securities are offered by prospectus only. There may be broker dealers, custodians, 3rd parties and their affiliates, investment advisers, and others who may offer the same services for the same fees, lower fees, higher fees, or no fees. Please review all disclosures, agreements, and documents.

The website of https://delgallo-real-estate.blogspot.com/ and DELGALLO.com and related pages on these sites may be registered and subject to copyright protection.

Please note that the information being provided is strictly a courtesy. When you visit a link at any of the websites or ads provided or mentioned on this website, you are leaving this website. Del Gallo Financial Services, LLC and Len Del Gallo Jr. make no representation as to the completeness or accuracy of information provided at any other websites that you visit. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or use of a third-party website.


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DELGALLO.com WEALTH MANAGEMENT ESSENTIALS –Estate Planning Documents to Consider in Your Financial Planning

 

DELGALLO.com WEALTH MANAGEMENT ESSENTIALS – Estate Planning Documents to Consider in Your Financial Planning

By LEONARD J. DEL GALLO JR., M.S., MPASsm, CFP®

(www.DELGALLO.COM)           Del Gallo Financial Services, LLC

 An Advance directive, will, and revocable trust may be important to consider as part of your financial planning. A durable power of attorney form can be used in conjunction with a revocable trust to authorize or appoint another individual or individuals to transfer assets or shift the title of property into a trust if the individual is unable to do so and the durable power of attorney form should be updated at least every two years. The durable power of attorney can be used during the individual’s lifetime by the appointed person but is not valid upon the individual’s death. A health care power of attorney form can be useful to appoint someone else to make medical decisions if the individual is unable to do so themselves and should be updated at least every two years. A living will, a separate document from the will, can serve a purpose by specifying the individual’s medical wishes for example if the person does not want to be placed on life support or other machinery if they are incapacitated.  The will is the primary document that specifies the individual’s wishes as to where assets should go in the event of their death that are not already held within their revocable trust or passed directly to a beneficiary through a beneficiary designation. The will may also appoint a guardian for any of the individual’s children who are still minors. The executor would be named in the will to carry out the individual’s wishes as specified in the document. Any nonqualified assets that pass outside of a trust through the will may be subject to probate and if the individual has stated that they would like to avoid that from happening, then potentially placing assets within a revocable or irrevocable trust may help them to avoid probate with certain estate assets. Assets that are passed by the will or held within a revocable trust will be included in the individual’s estate. All of these documents and others should be discussed and considered by individuals along with their financial professionals prior to creating any estate plan.

Any questions please contact Del Gallo Financial Services, LLC by visiting our website at https://delgallo.com/. Del Gallo Financial Services, LLC can arrange an educational seminar or workshop for your organization’s members and/or employees. This research commentary is intended to educate families so they may gain an introduction to a difficult planning topic and is not intended for any other purpose. Articles created by Len Del Gallo Jr., may not be copied or used without written permission from Len Del Gallo Jr. Please note that some information may be protected by copyright laws. Del Gallo Financial Services, LLCDel Gallo Financial Services, LLC and its’ representatives do not provide tax or legal advice. Please consult your tax advisor or attorney for guidance on such matters and before implementing any strategies and/or updates to your planning. Del Gallo Financial Services, LLC is a Registered Investment Advisor and Licensed Insurance Agency. 

                                                    Works Cited

Leimberg, Stephan R., et al. Tools and Techniques of Employee Benefit and Retirement Planning. 5th ed. Ohio:The National Underwriter Company, 1997. Print.

Leimberg, Stephan R., et al. Tools and Techniques of Estate Planning. 15th ed. Ohio:The National Underwriter Company, 2011. Print.

Leimberg, Stephan R., et al. Tools and Techniques of Income Tax Planning. 3rd ed. Ohio:The National Underwriter Company, 2009. Print.


DelGallo.com Real Estate Website:  https://delgallo.com/LENDELGALLOREALESTATE.html
Leonard J. Del Gallo Jr., Broker Associate - Licensed Broker in Connecticut, U.S.A
Web: https://leonardjdelgallojr.bhhsneproperties.com/
Managing Broker: Berkshire Hathaway HomeServices New England Properties
www.bhhsneproperties.com
Office: 172 West Main Street
Avon, Ct. 06001   
Phone: (860) 677-7321  Ask for Len Del Gallo Jr.
Del Gallo Financial Services, LLC is not Affiliated with Berkshire Hathaway HomeServices N.E. Properties.

Please see DELGALLO.com for disclosures. The aforementioned material is a product and service listing and is not intended to be an offer for the sale of securities, insurance, or real estate and is not intented to provide planning or investment advice. Securities are offered by prospectus only. There may be broker dealers, custodians, 3rd parties and their affiliates, investment advisers, and others who may offer the same services for the same fees, lower fees, higher fees, or no fees. Please review all disclosures, agreements, and documents.

The website of https://delgallo-real-estate.blogspot.com/ and DELGALLO.com and related pages on these sites may be registered and subject to copyright protection.

Please note that the information being provided is strictly a courtesy. When you visit a link at any of the websites or ads provided or mentioned on this website, you are leaving this website. Del Gallo Financial Services, LLC and Len Del Gallo Jr. make no representation as to the completeness or accuracy of information provided at any other websites that you visit. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or use of a third-party website.


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DELGALLO.com WEALTH MANAGEMENT ESSENTIALS –Gifting by a Power of Attorney

 

DELGALLO.com WEALTH MANAGEMENT ESSENTIALS Gifting by a Power of Attorney

By LEONARD J. DEL GALLO JR., M.S., MPASsm, CFP®

(www.DELGALLO.COM)      Del Gallo Financial Services, LLC

There have been numerous court cases that have litigated the validity of gifts by the attorney-in-fact if the expressed power to gift was not stated within the durable power of attorney form; Estate of Casey v. Commissioner, Townsend v. United States, Estate of their state. The courts decided that the principal had the intention of including the power to make gifts to the attorney-in-fact and therefore those gifts would not be included within Mrs. Pruitt’s estate under Section 2038 (Estate Neff v. Commissioner, Burnet v. Hamel, and Estate of Stinchcomb v. Stinchcomb. Some of these cases determined that the attorney-in-fact could make gifts without express written permission within the durable power of attorney form, while other cases determined the attorney-in-fact was not authorized to make the gifts according to of Suzanne C. Pruitt). Each State may or may not have current legislation addressing the validity of gifts made by the attorney-in-fact if gift making authority is not implied within the durable power of attorney form and the issue can lead to litigation with unknown consequences. If the state has not addressed the issue by passing laws or statutes then the attorney creating the durable power of attorney for a client should not assume that the durable power of attorney form will allow the attorney-in-fact to execute gifts unless it is specifically stated within the estate planning documents and durable power of attorney form. If the principal does not want to include gifting privileges to the attorney-in-fact then the estate documents and durable power of attorney form should state clearly that the principal does not want to include gifting privileges and the attorney-in-fact should be prohibited from this action in all the estate documents. Clients and their attorney should make sure their intentions are clearly written within their legal documents to avoid negative tax implications and unnecessary litigation.

Any questions please contact Del Gallo Financial Services, LLC by visiting our website at https://delgallo.com/. Del Gallo Financial Services, LLC can arrange an educational seminar or workshop for your organization’s members and/or employees. This research commentary is intended to educate families so they may gain an introduction to a difficult planning topic and is not intended for any other purpose.  Articles created by Len Del Gallo Jr., may not be copied or used without written permission from Len Del Gallo Jr. Please note that some information may be protected by copyright laws. Del Gallo Financial Services, LLC and its’ representatives do not provide tax or legal advice. Please consult your tax advisor or attorney for guidance on such matters and before implementing any strategies and/or updates to your planning. Del Gallo Financial Services, LLC is a Registered Investment Advisor and Licensed Insurance Agency. 

                                               Works Cited

Madden, Robert. “Tax Planning for the Highly Compensated.” Sections 1.01, 1.02, 1.03,

             2.01, 2.02, 2.03, 2.04, 2.05, 3.01, 3.02, 3.04, 3.07, 3.08, 4.01, 4.03. 2011. Estate

             Planning Library of RIA Checkpoint.Thompson Reuters. Web. 23 Aug. 2012.

Madden, Robert. “Tax Planning for the Highly Compensated.” Sections 5.01, 5.02, 5.03,

             5.04, 5.05, 5.06. 2011. Estate Planning Library of RIA Checkpoint. Thompson

             Reuters. Web.23 Aug. 2012.

Madden, Robert. “Tax Planning for the Highly Compensated.” Sections 6.01, 6.02, 6.03,

             6.04, 7.05, 8.02, 10.02,10.03, 10.04, 10.05, 10.06, 11.02, 11.10. 13.02. 2011. Estate

             Planning Library of RIA Checkpoint.Thompson Reuters. Web. 23 Aug. 2012.

Madden, Robert. “Tax Planning for the Highly Compensated.” Part III Estate Planning.

            Chapter 3, 10 & 13.Overview of Taxation of Wealth Transfers. Section 10.08.

            Power of Attorney. Estate Planning Library of RIA Checkpoint. Thompson

            Reuters. N.d. Web. 14 Nov. 2012.



DelGallo.com Real Estate Website:  https://delgallo.com/LENDELGALLOREALESTATE.html
Leonard J. Del Gallo Jr., Broker Associate - Licensed Broker in Connecticut, U.S.A
Web: https://leonardjdelgallojr.bhhsneproperties.com/
Managing Broker: Berkshire Hathaway HomeServices New England Properties
www.bhhsneproperties.com
Office: 172 West Main Street
Avon, Ct. 06001   
Phone: (860) 677-7321  Ask for Len Del Gallo Jr.
Del Gallo Financial Services, LLC is not Affiliated with Berkshire Hathaway HomeServices N.E. Properties.

Please see DELGALLO.com for disclosures. The aforementioned material is a product and service listing and is not intended to be an offer for the sale of securities, insurance, or real estate and is not intented to provide planning or investment advice. Securities are offered by prospectus only. There may be broker dealers, custodians, 3rd parties and their affiliates, investment advisers, and others who may offer the same services for the same fees, lower fees, higher fees, or no fees. Please review all disclosures, agreements, and documents.

The website of https://delgallo-real-estate.blogspot.com/ and DELGALLO.com and related pages on these sites may be registered and subject to copyright protection.

Please note that the information being provided is strictly a courtesy. When you visit a link at any of the websites or ads provided or mentioned on this website, you are leaving this website. Del Gallo Financial Services, LLC and Len Del Gallo Jr. make no representation as to the completeness or accuracy of information provided at any other websites that you visit. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or use of a third-party website.


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