Today is the start of what I hope is the final push towards a major victory in the fight against adoption corruption in Arkansas. Representative Clint Penzo has filed in the Arkansas House of Representatives HB1488, legislation that I drafted more than a year ago that has been rewritten no fewer than eight times after working with scores of other legislators, family advocates, non-profit and community leaders, lawyers, judges, adoptive parents, biological parents, and adopted children. Representative Penzo and former Representative Williams have done the brunt of the heavy lifting. There are 9 cosponsors on the bill and legislative support for its passage is reported to be broad based.
However, the celebrating cannot start until Governor Hutchinson signs the bill. There is big money in adoption and there are some who stand to lose it in an adoption process subject to more judicial oversight requiring ethical behavior. Where big money stands to be lost, the people who stand to lose the most will inevitably complain the most and spend their ill-earned money to lobby against its passage. As such, it is vital that we continue speaking out in favor of this adoption reform.
This is not a matter of what letter you put behind your name or the color of your party's banner. In this session of the General Assembly, there has been a proposed constitutional amendment banning slavery in the Arkansas Department of Corrections (i.e. forced prisoner labor). There have been bills submitted that would severely curtail if not eliminate the practice of abortion in Arkansas. These bills in large measure are supported by opposite sides of the aisle despite having one thing in common - both are rooted in the value of human life. We cannot under any circumstance claim to value human life when our practice of caring for orphans is rooted in the commercial buying and selling of that life. This. Must. Stop.
So let me encourage you to share this article on social media. Tag your state representatives and senators. Tag the Governor and Lt. Governor. Send emails. Make phone calls. If you are in a community organization, talk about it at your next meeting, or call me and I'll come talk about it. Make it clear that Arkansans want, deserve, and demand that we keep adoption beautiful.
People frequently ask me why they need their estate plan reviewed every year. The answer is simple. Things change on a daily basis sometimes, and certainly every year. New children or grandchildren are born. Assets increase or decrease. Different types of assets come into the picture. Goals and desires change. Laws change. As such, touching base with your estate planning and elder law attorney on an annual basis is just a good idea to make sure your plan and documents align with your goals. But more importantly, every life stage has a different strategy in estate planning and asset preservation. As such, every year you need to visit with your estate planner to discuss what life stage of the plan you are in, what needs to happen next, and how best to preserve the assets you've worked so hard for. That's what this blog post is about.
Young Single Adults (18-30)
In this life stage, you will have no children (although you may be married). The goal of an estate plan in this phase is simple: control where the assets go in the unlikely event of your death without probate. You'll want something set up to ensure your spouse, family, or others get assets without having to go through an "intestate" probate proceeding. A simple will with well established beneficiary designations can usually take care of this. However, you may also need a trust in place if you have assets over $100,000 or assets spread across multiple states. In this phase, we'll also discuss other end of life decisions and draft documents such as powers of attorney and living wills. We'll also make sure that your investment time goals align with your estate plan.
Young Parents (25-40)
In this life stage, you will have children that you want to provide for in the event of your death. Parents must have a trust. It can be a testamentary trust that is set up in your will, but most of the time I encourage a living trust (also known as a revocable trust) so that as your assets increase over time you have a pre-established means of avoiding probate. In a trust, you can control how the assets are spent on your children's behalf while they are still young. You can provide for their education, health, maintenance, and welfare. You can control how quickly they have discretionary access to the assets so that they don't inherit a decent amount of money as an 18 year old and blow it in a few weeks or months. If you start estate planning in this stage, we'll take care of your powers of attorney and living wills, and we'll still be making sure that your investment goals align with your estate plan and vice versa.
Middle Ages (Age 40-55)
In this life stage, we start paying very close attention to the potential for estate tax liability. The first reason we do this is because by this point in life many people have begun accumulating substantial assets. Secondly, even if you are no where near the estate tax exclusion limits right now, the law changes every time there is a shift of power in Washington (yet another good reason to have an annual touch base with your estate planner). Ultimately, the goal here is to structure assets between several types of trusts, establish charitable giving and other gifting strategies, and take other steps to minimize your federal estate and gift tax liability by maximizing deductions, exclusions, and credits in estate and gift tax law. This is a complicated and ever-changing area of law that requires routine visits and updates with your estate planner. Of course, if this is where you start estate planning we'll most definitely take care of powers of attorney and living wills. At this point, we'll work with your financial advisor to make sure that you have enough income in retirement, and probably get a head start on the next phase of estate planning: asset preservation.
Young Seniors and Beyond (Age 55+)
As you get nearer to the end of life, detailed planning becomes even more important. Life spans are getting increasingly longer, and as such the need for skilled nursing care later in life is becoming more and more necessary. However, skilled nursing care is extraordinarily expensive. One way to pay for it is Long Term Care Insurance. However, many will need to engage in certain asset protection strategies to prevent Medicaid from requiring you to exhaust almost your entire estate before paying for long term skilled nursing care. You've spent a lifetime paying Medicaid taxes; why spend your entire estate just so Medicaid will kick in? This planning phase should start before retirement so that your retirement income can be taken into account first. We'll continue working with investment advisors to that end. Through retirement, a very close eye must be kept on estate size (have I mentioned the need to have routine checkins with your estate planner?). Once we know you'll have the income you need for retirement, we'll start putting assets in specialized irrevocable trusts through which you can still take some income if needed. We'll start establishing giving patterns and routines to further clear your estate. Keep in mind that Medicaid will look back five years to determine what gifts must be recovered before it will pay for your care. In short, you must be well ahead of the game here. Of course, we'll stay on top of any powers of attorney, living wills, and other documents you need as well.
For me, it's all about relationship. I don't want to charge clients thousands upon thousands of dollars and then send them on their way. That's why it's just $1,000 per year to get all of this and more. If I can be of any assistance, please reach out.
On December 4, 2017 at 7:00pm, Josh Bryant will be hosting a free interactive webinar called Making the Family Budget. What does a budget have to do with the law? Great question! In short, a budget is a great risk management tool. A budget can help you manage financial struggles by "telling your money where to go instead of wondering where it went" (a famous Dave Ramsey-ism). Financial struggles can lead to all sorts of legal troubles: divorce, bankruptcy, foreclosure, eviction, repossession, wage garnishments, and more.
In the interactive Making the Family Budget Webinar, we'll discuss:
We'll conclude with a unique time of question and answer where you'll not only have an opportunity to ask questions, but provide encouragement and your own best practices to others in the group.
Normally, a webinar like this would cost $10 per household unless you signed up for one of our membership plans. The Online Access plan would give you a 20% discount, so it would only cost $8 per household. I'm giving this one to everyone for free as if you were an Attorney Access member. See all the benefits of the membership plans I have available and subscribe for one here.
Sign up for this free webinar by Josh Bryant called Making the Family Budget by clicking here. Don't forget to use Facebook to note your attendance as well.
I follow Christ. I have a beautiful wife Megan and three wonderful children, Harrisen, Rebekah, and Carter. I am a candidate for a Ph.D. in ethics from Midwestern Baptist Theological Seminary, have an M.Div. from Liberty Baptist Theological Seminary and a JD from the University of Arkansas, am licensed to practice law in several state and federal courts, and live in Rogers, Arkansas. I write a blog and produce a podcast. And I do it all that others may know Christ.