ESTATE PLANNING TIDBITS

• Estate Planning Tidbits The Benefits of an Irrevocable Trust ...........................Page 1

• Elder Law Update Caregivers Also

Need To Care For Themselves

........................ Page 2

• Business Minutes What’s Your Plan For Exiting Your Business?

...................... Page 3

• Legacy Corner ...........................Page 3

• Upcoming Events ...........................Page 4

In ThIs Issue

An Irrevocable Living Trust generally cannot be modified or terminated except under certain limited circumstances. It requires the grantor to transfer assets into the trust and give up his or her rights of ownership to these assets. So why would you want to create an Irrevocable Living Trust, as opposed to a Revocable Living Trust?

Irrevocable Living Trusts, when properly designed and implemented, can provide an almost unsurpassed level of asset protection from the high cost of long-term care. And, like Revocable Living Trusts, they spare your family the delays, frustration and expenses of the probate process.

Why is an Irrevocable Living Trust better than a Revocable Living Trust at protecting assets against the cost of long-term care?

Under current Medicaid laws, assets in a Revocable Living Trust are not fully protected. Why? Assets in a Revocable Living Trust are available to the grantor. Medicaid may determine that those assets be used to pay for long-term care.

This is not the case with an Irrevocable Living Trust, as long as it is properly designed and implemented to take into account the latest laws governing Medicaid eligibility.

How does an Irrevocable Living Trust protect your children’s inheritance?

When you transfer assets directly to your children, they become outright owners of the assets. They also become responsible for the risks associated with owning the assets. A properly drafted and implemented Irrevocable Living Trust will avoid:

• Loss of inheritances due to lawsuits, divorce, remarriage, or the inability of your children to manage money on their own

• Gift tax liability

• Income tax consequences for your children

• Problems with getting financial aid to cover educational and other expenses for your grandchildren.

To determine if an Irrevocable Living Trust is right for you and your family, contact us today for a free consultation.

KEEPING YOUR FAMILY HEALTHY, WEALTHY & WISE

L E G AC Y N E WS L E T T E R

4301 W. 57th Street | Suite 121 | Sioux Falls, SD 57108phone 605-275-5665 | fax 605-275-5667

www.LegacyLawFirmPC.com

THE BENEFITS OF AN IRREVOCABLE LIVING TRUST

Reasons to utilize an Irrevocable Trust include:

• Minimizing taxes

• Avoiding the risks of placing assets in the name of your children

• Protecting assets against predators, creditors and lawsuits

Caregivers often devote so much time and energy to caring for a loved one that they fail to take adequate care of themselves. This has become so common that there is actually a term for it, “caregiver burnout.”

If you are serving as the caregiver in your family, you need to understand the difficulty of what you are undertaking and recognize the signs that you may be trying to do too much. Are you approaching burnout? Ask yourself the following questions:

• Are you exhausted even after a full night’s sleep?

• Do you seem to catch an unusually large number of colds?

• Do you feel like your whole life revolves around caregiv-ing, but you don’t get any satisfaction from it?

• Are you always tense or feel like you’ve lost the ability to simply relax?

• Are you increasingly impatient with the person in your care?

If your answer to some of these questions is yes, you may indeed be approaching burnout. You need to begin the process of caring for yourself.

Here are some steps you can take if you believe you might be suf-fering from caregiver burnout:

• Learn as much as you can about your loved one’s illness and how to care for it. The more you know, the more effec-tive you’ll be and the better you’ll feel about your efforts.

• Recognize your limits. This involves taking a more real-

istic approach to how much time and effort you can give your loved one. Then, be sure to express those limits to doctors and other family members.

• Talk to people about your feelings. Keeping your emotions bottled up doesn’t do you or the person you are caring for any good. Confiding in friends, family members, your physician, or a support group can provide a sense of relief and help you overcome feelings of isolation. This last step is extremely important. Remember—you are not alone.

Is a Care Agreement Right For You?

ELDER LAW UPDATE CAREGIVERS ALSO NEED TO CARE FOR THEMSELVES BUSINESS MINUTE |

Family members may also want to consider a Care Agreement. A Care Agreement is a legal contract typically done between family members who provide caregiver services for the loved one. A Care Agreement keeps your money working for you. A properly structured Care Agreement may help reduce or eliminate Medicaid penalties. It also helps ensure a loved one already on Medicaid receives additional care that would not otherwise be covered by Medicaid. Last but not least, a Care Agreement can help family members share responsibility and avoid family conflicts. If you are interested in learning more about a Care Agreement, contact us today for a free consultation.

BUSINESS MINUTE | WHAT’S YOUR PLAN FOR EXITING YOUR BUSINESS?

The amount of money you ultimately earn from your business depends in large part on the manner and timing of your exit. So, too, does the chance your business will survive into the next generation. While the vast majority of businesses in the United States are comprised of family-owned entities, most do not survive into the second generation and by the third generation, 85% are extinct. The odds your business will survive your exit, and the amount of money you earn from your business, are much higher if you have a thoughtful succession plan in place. Unfortunately, most business owners do not have such a plan.

What factors should you consider in exiting your business? While every situation is unique, effective succession plans typically address several key issues:

FUNDAMENTAL OBJECTIVESThe date of your exit, the income you’ll need for financial security, and the person, people, or entity you want to take over the business should all be identified well in advance.

TO WHOM WILL YOU TRANSFER THE BUSINESS? Do you want to transfer your business to family members, co-owners or employees, or sell it outright to a third party? Either way, you’ll want to maximize the return on your initial investment, minimize tax liability, and ensure a comfortable retirement.

THE VALUE AND CASH FLOW OF YOUR BUSINESSHow much is your business currently worth and how much income will it generate after you leave?

WHAT HAPPENS TO YOUR BUSINESS AND FAMILY IF SOMETHING HAPPENS TO YOU? If you become incapacitated or pass away suddenly, will your business be able to survive, and will your family be financially secure?

The sooner you have a plan in place to address issues such as these, the better. We advise our business clients to begin the process several years before they want to exit the business. Don’t wait until the last minute. Contact us today for a free consultation.

Welcome back to Legacy Corner, where law, life and legacy intersect! With the constant digital static these days, many suffer from FOMO, or the Fear of Missing Out. This term for anxiety often sparked by social media is legit (it’s in the Oxford English Dictionary people!). Being connected digitally can lead to disconnection: the couple in a restaurant staring silently at their phones or a parent scrolling Facebook while on the playground sidelines. Keeping up is exhausting: the latest meme, every news story, Twitter feeds, Snapchat filters, the Jones’ picture-perfect vacay splashed all over Instagram. Don’t look at the world through a screen, instead, savor the moment! It doesn’t have to be a walk on the beach or a trip to Disney. Reconnect with Happy in everyday life:

1. Smell the Roses – really – get outside and soak up the sun and take in every detail of the beauty around you (don’t forget the SPF!).

2. Hit the road – load up the fam and friends and set out on the open road for memories that will last.

3. Let’s make lemonade! – relax and take a sip on the porch or at a picnic and enjoy the folks around you.

4. Get your groove on – don’t be shy; have an impromptu jam session with loved ones and dance or sing like no one is watching.

5. Get your Peace-of-Mind Plan in place – don’t look online for a legal plan that fits you and your family. Meet face to face in real-time with an experienced, knowledgeable attorney to get your legacy on firm footing and to protect what really matters to you. Legacy Law Firm would be honored to be there for you and your loved ones.

Make a choice to change your focus to what’s truly important, to really engage, and be present, because Legacy is about embracing every second. Let’s soak up happiness and gratefulness, along with the sun’s rays every day.

FOMO won’t take over your summer. Take our advice: power down the devices and don’t miss out on what really matters! Wishing you and your family and friends a summer to remember!

L E G A C Y C O R N E R

SAVE THE DATE!

Mark your calendars for our upcoming FREE events! We hope to see you there! Call us at (605) 275-5665, to reserve your seat to attend, Do You Know What’s In Your

Attic, or email events@legacylawfirmpc.com. Seating is limited.

For additional information on our upcoming events, visit our website: www.LegacyLawFirmPC.com.

DAKOTAFEST 2017

Join us at our educational seminars and booth! No RSVP needed.

August 15 - 17, 2017DakotaFest - Booth 809E

2300 E. Spruce Street, Mitchell, SD

Educational Seminar - Farm Smarter: Protecting the Farm from Bad Business Planning, Divorces, Nursing Homes and More!

DakotaFest - Reaves Education BuildingTuesday, August 15, 2017 | 2:00 - 3:00 pm

Wednesday, August 16, 2017 | 10:00 - 11:00 am

DO YOU KNOW WHAT’S IN YOUR ATTIC?

Join us for a FREE dinner and one-of-a-kind event featuring star appraiser, Dr. Lori Verderame!

Dr. Lori stars as the antiques expert on the History Channel’s #1 TV show, The Curse of Oak Island. She has also been on the Discovery Channel’s hit reality TV show Auction Kings and Fox Business Network’s Strange Inheritance. Dr. Lori has been featured on NBC’s The Tonight Show and Comedy Central’s The Daily Show with Jon Stewart for her comedic and no holds barred approach.

Tuesday, August 29, 2017

CJ Callaways500 E. 69th Street, Sioux Falls, SD

• 5:30 pm | Estate Planning Seminar - Are You Giving Away Your House or Farm on the Front Yard? Learn the latest techniques to protect the people and things you love most!

• 6:30 pm | Social and Registration• 7:00 pm | Dr. Lori Presentation and Dinner

50 people will have the opportunity for Dr. Lori to appraise one item as part of her wildly funny, one-of-a-kind, entertaining event. Please bring your unique and interesting antiques to be appraised by star appraiser, Dr. Lori! RSVP needed.

U P C O M I N G E V E N T S

4301 W. 57th Street | Suite 121 | Sioux Falls, SD 57108