Period.

One group of people who may not think so is veterans of the military.

“For members of the U.S. military, traveling and re-locating often, returning home following a lengthy deployment and living with uncertainty isn’t always easy,” according to an article on the website of Ameriprise.

Establishing a routine after a big life event like a re-location, deployment or completion of your military service can be challenging, and comes with many new decisions, including new or changing financial choices and obligations.”

English: PACIFIC OCEAN (July 16, 2009) Sgt. Khristian Colon, armory chief of Command Element, 13th Marine Expeditionary Unit (13th MEU), cleans the upper receiver of an M16A4 service rifle aboard the amphibious assault ship USS Boxer (LHD 4). Boxer and the 13th MEU/Boxer Amphibious Ready Group are underway in the Pacific Ocean returning from a 7-month deployment. (U.S. Marine Corps photo by Lance Cpl. Jesse D. Leger/Released) (Photo credit: Wikipedia)

The Kiplinger Newsletter recently offered a series of financial planning tips geared specifically toward members of the military.

These include:

• “Take advantage of low-cost investments. Service members are lucky to have access to one of the lowest-cost retirement-savings plans around. The Thrift Savings Plan charges just about 25 cents a year for every $1,000 invested, and it lets you choose one of five index mutual funds or a target-date fund.”

• “Benefit from tax-free in, tax-free out. Saving in a Roth IRA can be a particularly good deal if you’re receiving tax-free combat-zone pay. In that case, your money goes into the Roth tax-free and your contributions as well as your earnings come out tax-free, a double tax benefit that’s tough to beat.”

• “Sign up for inexpensive life insurance. Service members have access to one of the lowest-cost life insurance programs available”

• “Take advantage of low loan rates. The Service Members Civil Relief Act provides special legal benefits for service members, including an interest-rate cap of 6-percent on any loans you took out before you were called to active duty. You have to apply to the lender for this benefit, which is intended to help you if your ability to pay is affected by military service, as it may be if you take a pay cut when activated to the Reserve or National Guard.”

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Family members who borrow or lend money from one another, regardless of which side of that equation they are on, face some potential emotional perils.

It’s one thing to disappoint officers with a bank or savings and loan by not being able to keep up with payments on interest and principle; they’re sort of used to it.

It’s quite another thing, however, for parents or other family members to be left in the lurch.

“In today’s tight credit market, a growing number of adult children are turning to the Bank of Mom and Dad,” according to a recent Forbes.com piece by Frank Jaffe. “Many parents have an impulse to be generous as they watch adult children in their 20s and 30s struggle with an unbending job market and unforgiving economy. Parents are lending their children money to help pay for everything from graduate school to starting a business or buying a home.

Money – Black and White Money (Photo credit: @Doug88888)

“Still, for many Baby Boomers, this poses a dilemma. On the one hand, we want to be there for our children and help them to succeed; on the other hand, if they don’t pay us back, it could jeopardize our own retirement.”

“When a friend or family member asks to borrow money, think about why they’re asking you and not someone else,” suggests J.D. Roth in a piece on Entrepreneur.com. “They may see lots of money coming into your business, payroll being met, maybe your nice house and car. What they don’t see is the credit line that keeps your doors open or how thin your profit margins really are

“Still, that hasn’t stopped many business owners from learning the hard way that family, friends and finances don’t always mix.”

In his piece, Roth offers five suggestions for those who decide to extend loans to family members anyway:

1. Discuss other options.
2. Lend only the amount you can afford to lose.
3. Be clear about your expectations.
4. Get it in writing.
5. Deal with problems right away.
A sixth piece of advice, get the advice of an attorney before entering into such an arrangement, might also be wise to include.

The post Loans To Family Members Can Lead To Major Problems appeared first on .

“The estate tax has a history as long and controversial as the income tax,” according to a recent opinion piece in The New York Times by Kenneth F. Scheve Jr. and David Stasavage. “Its first modern version appeared in the federal tax code in 1916, three years after the ratification of the 16th Amendment, which authorized the federal income tax. Advocates of the estate tax see it as a crucial tool for raising revenue and a buffer against the sharp, nearly inexorable rise in inequality over the past four decades. Opponents, who call the levy ‘the death tax,’ say it penalizes savers, harms growth and interferes with parents’ ability to pass on their wealth to their children. With income inequality at levels not seen since the 1920s, and low economic mobility, some liberals hope that in the coming years our lawmakers will face intense political pressures to maintain, and even raise, taxes on inherited wealth. In this view, economic realities are building a compelling case for a more progressive tax system.

“But judging from the experience of other wealthy countries, the opposite may be true. As inequality has risen in the developed world, many governments have been dismantling — not increasing — estate taxes. Countries from Austria to Canada to Sweden have abolished estate taxes outright.”

Scheve is a professor of political science at Stanford University. Stasavage, a professor of politics at New York University, is the author of “States of Credit: Size, Power, and the Development of European Polities.”

In their opinion piece, the two men argue that one of the main reasons estate taxes came into existence was to pay for a country’s defense at a time when military might was dependent on the number of men and women in uniform.

“The question for supporters of the federal estate tax, and for proponents of progressive taxation more generally, is how the downward trend in estate taxation might be stopped,” the article stated.” As the United States shifts to fighting wars with precision weapons and a relatively small volunteer Army, the argument that taxation of the rich is necessary in wartime to ensure equal sacrifice will no longer be convincing. How can one ask the wealthy to sacrifice for war when much of the rest of the population isn’t really sacrificing either?

“We believe that the future of the federal estate tax will instead depend on its advocates’ showing that it is needed to ensure shared sacrifice of a new kind in an era of more limited wars. The same can be said for progressive taxation in general. Advocates of progressive taxation cannot assume that rising inequality will create irresistible pressure for higher taxes on inherited wealth. They will need to construct a compelling narrative of shared sacrifice, but shared sacrifice for what?”

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In a heartwarming story out of Columbus, Ohio, the widow of a soldier killed by a roadside bomb in Iraq six years ago found a way to honor his memory and help others.

Jenna Grassbaugh, herself a veteran, made a donation to Ohio State University’s Moritz College of Law, where she is a second-year student.

“Widowed at 22, Jenna Grassbaugh struggled through her grief, trying to find a balance between holding on and moving on,” according to a recent story in The Columbus Dispatch. “Nearly six years later, she thinks she has found a fitting way to move forward: The second-year law student at Ohio State University has donated $250,000, half of her husband’s life-insurance benefit, to the Moritz College of Law to fund an effort to help veterans.”

The Dedication Wall inside the main lobby (Photo credit: Wikipedia)

The donation will be the initial funding for the Capt. Jonathan D. Grassbaugh Veterans Project, through which law students, aided by professional lawyers, will provide legal assistance to veterans returning from deployment. Ohio State University officials say they intend to raise a matching $250,000 to bring the total for the project to $500,000.

“When I thought about something that Jon would be proud of, this was it,” Jenna Grassbaugh, now 28, told the newspaper. “It was almost like a no-brainer.

“This can make a difference for a lot of people, and that is the best way to perpetuate his legacy.”

“She’s awe-inspiring,” the paper quoted law school Dean Alan Michaels as saying. “It makes you want this (project) to be fantastic and to really make the difference that we’re hoping it will.”

The $500,000, if the full amount were to be obtained, would pay for more than 2,000 hours of legal help in the 2013-14 academic year.

“The idea is for students to work under the supervision of lawyers,” The Dispatch story stated.

Col. Duncan Aukland, the judge advocate for the Ohio National Guard, who helped the widow in creating the project said that many returning veterans can’t afford quality legal assistance and often aren’t aware of all their rights.

“We have unmet needs,” he told the newspaper. “Certainly, people can go to the private sector and pay an attorney, but, on the other hand, there are people who have legitimate problems that are in some way related to their military services that deserve our help, and there aren’t enough resources currently existing to get them there.”

“It’s taken six years for me to say out loud, but I think I’ve finally been able to achieve a level of happiness and peace,” Jenna Grassbaugh said. “And I’m proud of that.”

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That work doesn’t end once the search is completed, as noted in a recent article in U.S. News and World Report. The questions that needed to be asked to find the facility must be followed up with ongoing questions once care is started, the article indicates.

“The resident’s needs should be met by the facility, rather than having the patient meet the facility’s needs,” Barbara Messinger-Rapport, director of the Cleveland Clinic‘s Center for Geriatric Medicine, told the magazine.

“Ask the questions you would want to be asked if the roles were reversed,” Cornelia Poer, a social worker in the Geriatric Evaluation and Treatment Clinic at Duke University Medical Center in Durham, N.C., was quoted as saying.

She said that these questions should include:

• Are you comfortable?
• Is anything worrying you?
• Do you feel safe?
• Do you feel respected?
• If you need help and you push the call button, how long before somebody comes?
• Have you gotten to know any of the other residents?
• Do you like the staff, and any staff member in particular?

“Show interest and concern and identify major problems, but don’t go overboard,” the article advised.”

Inquiries are important, but try to avoid turning every visit into an interrogation,” Poer said. “You will be able to determine if there are areas of concern in normal, everyday conversation.”

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Let that sink in. It can be hard to believe, but it’s true. Sure, it’s easier to be unhappy when poor, but family wealth, if not handled correctly, can also be a source of grief.

In recent stories for Forbes magazine, author Thayer Willis, herself the descendant of the founders of Georgia-Pacific, looked at the yin and yang of inheriting what many would think of as automatically the key to happiness.

It can be, according to Thayer, who wrote “Navigating the Dark Side of Wealth: A Life Guide for Inheritors” and “Beyond Gold: True Wealth for Inheritors.”

“Of course I realize that family wealth is a blessing, but for reasons that would surprise the supposed know-it-alls,” Thayer wrote. “Dismiss the popular notions that you can pay off all your debts and then go crazy with the rest of your wealth; that you will have nothing to worry about; or that you will have the ultimate security. None of this is true. Nor is it the reason that family wealth is a blessing.

For me, family wealth became a blessing when I finally gathered enough focus to begin making a life for myself.”

Thayer went on to offer “the top three things that make family wealth a blessing.”

First, she indicated was a simple concept and perhaps the most important: love.

“This means family members care more about each other than they do about money,” she stated. One aspect of love is having realistic and high expectations of the next generation, with appropriate support. This is challenging for parents because it varies from one kid to the next. Everyone needs unconditional love from someone; those who don’t ever have it are handicapped.”

“Sometimes it feels like there are too many choices, but this is an illusion. Choices are an immense blessing. The choices I made when I was a young adult have led to where I am now. In my mid-20s, out of curiosity, I earned a Masters in English, and took a few counseling classes. Soon, counseling became my direction.”

Finally, Thayer offered up gratitude as the right attitude toward inherited wealth.

“By this I mean the intentional practice of gratitude for what you have been given; respecting yourself and others; showing humility, kindness and generosity; being confident and accepting others.”

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A recent court ruling taught a Virginia woman a harsh lesson about trying, basically, to scam the system. The woman sought to be able to qualify for Medicaid by transferring a large sum of money to her daughter, but then sought to say the money was actually still hers when the daughter declared bankruptcy.

The case was recently summarized on the website elderanswers.com.

“In 2002, Dorothy Stutesman transferred $142,742 to her daughter, Holly Woodworth, so that she would not have assets in her name if she ever needed Medicaid,” the account states. “In April 2010, Ms. Woodworth transferred the money to a trust designed to protect the assets from creditors. The entire corpus of the trust was used to purchase an annuity to benefit Ms. Woodworth. In February 2011, Ms. Woodworth filed for bankruptcy. The bankruptcy trustee sought to void the trust, arguing it was a fraudulent transfer under bankruptcy code. Ms. Woodworth did not dispute that the transfer was fraudulent, but she argued that the property was never part of her estate because she was holding it in trust for her mother.

“The U.S. Bankruptcy Court for the Eastern District of Virginia enters judgment for the bankruptcy trustee, holding that Ms. Woodworth clearly had complete ownership of the funds. According to the court, ‘Ms. Stutesman can’t have it both ways; she can’t part with title for purposes of Medicaid eligibility, and at the same time claim that she retained an equitable title to the asset. To allow this kind of secret reservation of equitable title would be to sanction Medicaid fraud.’ ”

While transferring funds to relatives as part of sound financial planning can be a worthwhile practice, quite obviously it includes some risks that older people need to consider beforehand.

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According to a recent article in The Wall Street Journal, even people who feel they are properly prepared can find themselves facing more than grief at the loss of a loved one. They can be in for a world of hurt in coping with estate, banking and other financial issues.

“While the Internet era has ushered in a boom in online financial planning, it also has caused a tangle of banking, bill-paying and other online relationships that require tending even after people die,” according to the story. “But there are ways to help ease the transition, from collecting passwords and updating beneficiary forms to setting up new retirement accounts. Lawyers and financial planners are even adding digital estate planning to their menu of services.”

Perhaps the most important pieces of advice offered in the article are getting everything registered in the names of both spouses and ensuring that passwords and user names are recorded, not residing in the mind of one or the other partner in the relationship.

“Even if spouses have updated beneficiary information on obvious assets like retirement accounts, other assets still might be in one partner’s name,” the story states.

It is likewise important, The Journal piece states, to find out in advance how a financial institution will handle switching these joint accounts to the surviving spouse only.

“To avoid any surprises, it is important to make sure you understand what happens with a joint account when you want to move it into one person’s name, whether any holds are placed on deposits or withdrawals, and whether online banking could be affected,” the story advises.

While these are grim things to think about, they don’t have to be. With the help of an attorney, a thorough degree of preparation can provide some very real peace of mind, and prevent needless aggravation added to sadness and sorrow in the, hopefully, distant future.

The post Death Is Inevitable, But Financial Hassles Can Be Avoided appeared first on .

That older Americans have special legal needs has been recognized relatively recently.

“Much has been written of late about the aging of America, and indeed of the world as we are all living longer,” according to an article on the website of Stetson University by Rebecca C. Morgan.  “Laws have been created specifically to deal with the legal problems faced by older Americans. There is a label for this area of law–elder law. Elder law has grown from a specialty practice to a general area of practice within which an attorney may specialize.

“It took a while for the public to grasp the concept of elder law. In fact, comments were frequently made about the name of the practice area. However, one thing that distinguished elder law from other areas of practice is the holistic nature of elder law. Although the practice area label tends to come from the tasks performed by lawyers, elder law has come to be recognized not only by the legal tasks performed by the lawyers, but by the attorney’s function as a counselor to the client and/or the client’s family, the attorney’s knowledge of the aging services network and the nature of the representation of the clients in the later years of their lives.”

Once the specialty became recognized, Morgan says, it became attractive to not only potential clients but also to lawyers.

“Why the growth and evolution of elder law?” she writes. “One reason may be the demographics. Another reason may be the attraction to a holistic law practice, a more problem-solving or helping practice area rather than the typical litigation model. Others attribute the growth more to market forces or the complexity of the area of law. Perhaps all of these reasons are true. But in addition, maybe elder law as a field has grown simply because of the satisfying nature of the practice; an elder law attorney truly has the opportunity to make a difference in the lives of his or her clients, oftentimes during the final phase of the clients’ lives and many times in a crisis. The elder law attorney has the opportunity to ensure the client has the most quality of life as possible during the last years of his or her life.”

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Although homelessness is a sad thing in any segment of the population, from children to families to people with mental health problems, it is especially sad to see it among military veterans, and depressingly prevalent among returning soldiers, sailors and Marines.

Fortunately, the Veterans Administration, not always the most responsive agency in the federal government, has recognized this as an issue and has taken steps to help homeless veterans.

While shelter is obviously their biggest unmet need, many among the legions of homeless former warriors also need legal assistance.

Again, the VA has stepped up to the plate on this.

The Department of Veteran Affairs in 2011 issued a directive designed to provide adequate legal referrals to veterans who are homeless.

“The President and the Secretary of Veterans Affairs have established a goal of ending homelessness among Veterans by 2015,” the background on the director states. “Veterans’ lack of access to legal representation for outstanding warrants or fines, as well as for child support and other legal matters, contributes significantly to their risk of becoming homeless.

“In response to these unmet needs, several VHA facilities have been referring homeless veterans to local legal service providers or referral services, such as those operated by the state or local bar associations. A task force of homeless programs staff from the VHA and the Office of Policy and Planning, as well as the Office of the General Counsel, has recommended that the Department of Veterans Affairs establish nationwide legal referral policies to ensure that referrals are being made in a consistent manner.”

A key to this whole policy, and to the overall and lofty goal of ending homelessness among former service men and women is that it’s not just left out there as words on paper.

“The National Coordinator, Veterans Justice Outreach, is responsible for the contents of this directive,” the document states.

In other words, someone is made responsible for seeing that actions are actually taken.

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