Recently I shared information about “Special Needs Trusts and ABLE accounts” with NAMI of Nevada County. I honor this organization which supports, educates and advocates for families of loved ones with a mental illness. NAMI hosts both a monthly family support group, and an education program (where I was the presenter).

A Special Needs Trust (SNT) is designed to plan for future care needs of a person with a disability. Funds in a SNT do not count as a resource, allowing the disabled individual to qualify for needs-based public benefits. The disability may be the result of an injury or illness, starting at birth or happening later in life. A person with mental illness who is unable to work also may qualify for disability benefits such as Social Security, Medi-Cal and other public benefits programs.

The SNT terms must be carefully drafted, particularly if the funds belong to the disabled individual. Someone who receives an inheritance or court settlement may be required to use up this entire windfall to continue eligibility for SSI.  However,  the law allows these funds to be held in a “first-party” SNT to pay for supplemental future needs which are not covered by public benefits.

More commonly, families may wish to set aside funds in a “third-party” SNT for the future needs of a loved one. This type of SNT can be prepared with more flexibility.

For more information about Special Needs Trusts, click here.

Beginning in 2014, the Achieving a Better Life Experience (ABLE) Act provided a simpler alternative in certain situations. Families may now fund an ABLE account for individuals who became disabled before the age of 26, to save and invest in a tax-advantaged account without jeopardizing their ability to collect SSI. The account may be used to pay “qualified disability expenses.” These include health care, education, housing, transportation, employment training, assistive technology, personal support services, financial management and legal expenses.

California’s ABLE program started in 2018, for opening an online account. Other states also have ABLE programs, so it is useful to compare fees, investment options, etc.

An ABLE account may be a good fit to encourage a loved with mental illness to achieve greater financial independence during periods of wellness, while providing security and oversight when needed.

For more information about ABLE accounts, click here.

Please consider supporting NAMI and attending their upcoming education programs- I will meet you there!

Creating an estate plan for your beloved companion animals may ensure they receive a continuing, high level of care should they outlive you, or you become unable to provide proper care. It also could keep them out of a shelter, which is where many pets end up when their owners die without a plan in place.

Some people include instructions for care of their pets in a Power of Attorney, Trust or Will, while others have informal arrangements with friends and family.

Our kitty brothers, Dusty & Grayson

1. Designate your choice of pet caregivers. Talk to friends and family about who could adopt your animals, or who will be responsible to provide even temporary care and find new homes for your pets. Keep this information where it may be easily found in an emergency. Stay in touch with those on your list to update it as circumstances may change for them. A backup option may be a local rescue organization- do your homework and find the one you prefer ahead of time to include on your list.

2. Outline a Care Plan. Also make available information about your veterinarian and the health records for your furry and feathered companions. Include notes about each pet’s likes and dislikes, personality traits, favorite foods and treats, daily routine and diet. By writing down clear, detailed instructions on how to care for the pet, owners make it easier for future caregivers to abide by your wishes. Include contact information for the day and boarding care you have used. Minimizing changes can lessen the trauma for animals experiencing the loss of their owner.

3. Provide a source of financial support. As we all know, it can be expensive to care for a dog, cat, or other pets (large or small). Creating a special fund, or a gift of cash, could make the difference between a friend adopting your pet, or having to decline due to financial constraints. Add up projected annual expenses for veterinary care, as well as medications, monthly grooming, food, toys and a contingency for unanticipated expenses. Multiply the annual total by the average life expectancy for the breed- it could be $20,000 or more for lifetime care. The next step is determining how those funds should be set aside. Options include a trust, a separate bank account or life insurance. While the pet cannot be the named beneficiary of a Trust or life-insurance policy, a Trustee may be directed to use the funds for care of your pets.

4. Pet Trusts. California Probate Code section 15212 governs Pet Trusts, which may be created in your personal Trust or Will, or established as a stand-alone Trust, to hold funds for care of your pets. You will need to designate a succession of Trustees. Also you may state where any remaining unused funds should be distributed when the lives of all covered pets are complete. Click here  and here: for more information.

Our Colorado grand-dog, Sputnik

Just remember that even the best planning cannot replace the love and care that you provide. As the caretakers for our trusted companions, you owe it to your “fur babies” to give them the best possible future filled with love, happiness and safety.

To discuss your planning options, please contact our office.

The end of each year is a time of reflection, and a time for charitable giving.  The recent wildfires that ravaged California, particularly the Camp Fire in and around Paradise, made the national news, and also put the power of Community Foundations in the spotlight.

A Community Foundation serves as an ‘umbrella’ organization to distribute grants for many smaller non-profits which provide direct services where needed most. They offer the benefit of professional staff to analyze and assess the non-profits they fund, as well as lower investment fees for larger pooled funds.

The North Valley Community Foundation  has been featured in the media as a good choice for donations to help Paradise residents who lost homes in the tragic fire. Families need urgent funds and services to find housing and replace lost income. In the longer term, the community will need much more to rebuild homes, businesses and vital government services.

Other Community Foundations in our area include the Placer Community Foundation, the Tahoe Truckee Community Foundation,  and the Sacramento Regional Community Foundation.

As a donor to a Community Foundation, you can feel confident that your funds are being used as intended, to non-profits in your geographic region which have been reviewed to assure quality services and proper administration.

You may wish to establish a Pooled Income Fund (PIC) or Donor Advised Fund (DAF) at a Community Foundation or other financial institution such as Fidelity or Schwab. With a DAF, you may “advise” how you wish your account to be distributed. Your directions will be honored as long as the charitable organizations you select meet specified qualifications.

Read more about structured giving options, with immediate and long-term tax benefits, in a previous article, “The Season for Charitable Giving”.

Our sincerest appreciation and warmest wishes for the Holiday Season
and throughout the New Year!

Most of us want to avoid thinking about our own death, or losing loved ones we hold dear. Yet it is an inevitable transition we all will face. When death happens unexpectedly, the emotional impact can lead to hasty decisions, and possible tension within a family. By preparing a Final Arrangements memorandum you can help your loved ones make difficult decisions according to your wishes.

There is no legal or formal outline for a Final Arrangements plan. It is simply a guide for your designated Agent and Executor to follow in honoring your wishes. It may be especially important when you have pre-arranged, and possibly even paid for, the services of a mortuary.

Legal Authority of Agent and Executor
Under California law, the Agent designated in your Advance Health Care Directive has the legal authority:

• During life, to authorize medical treatment when you are not able to give informed consent to direct your own health care decisions; and
• Upon death, to direct the disposition of remains and authorize organ donation,

Your Final Arrangements memorandum will help assure that your Agent/Executor follows your wishes. Here are some items you may wish to include in preparing your memorandum:

1. Who Should be Notified? You may wish to provide a list of family members and friends to be notified of your death, along with their contact data.

2. Burial or Cremation Instructions In this part of your Final Arrangements memorandum, you may state your preference for disposition of your body. Legal regulations are enforced by the California Department of Consumer Affairs Cemetery and Funeral Bureau.

• Will you be buried or cremated? Many of us have strong beliefs about which we prefer. Either choice comes with other decisions for you to consider:

– If you prefer burial, will this be at an in-ground cemetery or mausoleum? Will you be buried near other family members? What type of casket would you like? Have you selected a plot for your interment? What should be included on the headstone? It can be helpful to make some pre-arrangements with a mortuary, which may not require advance payment. A “pre-need” insurance policy may also be offered for you to purchase, to avoid a financial burden to those making final arrangements post-death.

– A growing trend is “green” burial which allows the body to return to the earth in a manner that doesn’t inhibit decomposition, and allows the body to recycle naturally. Green burials are an environmentally sustainable alternative to conventional funeral practices as green burials use only non-toxic and biodegradable materials. In a green burial, a biodegradable casket or shroud is used without embalming and with no cement vault. Families may benefit from the services of an end-of-life midwife, or doula , for guidance in exploring non-traditional options.

– If you intend to be cremated, selecting a mortuary beforehand can be helpful. What do you want to happen with your cremains? Will they be interred in a public crypt or other location marked with a plaque or stone, or held by one or more family members? Do you wish for your ashes to be spread at sea (federal law requires a minimum of three nautical miles from land)? Or another memorable location? (Make sure there is no local prohibition and the property owner has given permission or issued a permit if necessary.)

• Other Wishes to include Are their personal items you wish to be kept with your body- such as jewelry, photographs, or other meaningful items? Do you have preferences about the style of clothing, which may be especially important if there is to be a public viewing.

3. Funeral or Celebration of Life? This will often depend on your religious beliefs. Some faiths may hold a traditional mass or funeral service. A less formal memorial service, wake or celebration of life may be planned in the community. Others may prefer a private gathering of family or friends who are invited to share memories. Decisions that you might want to consider for these ceremonies include: open or closed casket, invitation list, location and preferences for your eulogy and other readings.

4. Information will be needed Your written memorandum can include data which will be needed for the official death certificate:

• Social security number
• Birth date, city and state of birth
• Names of your parents, including mother’s maiden name
• Information about your education
• Marital status
• Veteran’s discharge papers and policy numbers, if applicable
• A recent photograph
• Pre-arrangement paperwork (if applicable)
• Cemetery lot information (if applicable)

5. Obituary You may express your desire for publication of a public obituary, either online or in local newspapers. An obituary typically contains your name, age, city of residence, survivors and a brief biography of your life. It may also include the location, date and time of your funeral, and possibly your wishes for charitable donations. Some prefer privacy and an obituary is never required. You may prefer to write your own obituary, or provide helpful details to your survivors so they can write one for you.

It’s a good idea to add your signature and the date you sign your Final Arrangements memorandum. Keep the memorandum in a place that someone would immediately look in the event of your death – a safe-deposit box at your bank is not a good choice. Copies of this document may be provided to your Agent and Executor as the persons most likely to handle your final arrangements.

Most survivors hope to honor your wishes for these important After Life decisions. Sharing your thoughts and desires in a Final Arrangements memorandum is a gift of love to ease the stress at the time of loss. We would be happy to provide further information and assist you in preparing your Final Arrangements memorandum.