Corrections or additions?
These articles by Teena Chandy and Barbara Fox were published in U.S. 1 Newspaper on June 23, 1999.
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Estate Planning, Cradle To . .
It is surprising how many people have not executed
living wills and power of attorneys, says Dana Rozansky of Begley,
Begley & Fendrick, based in Moorestown. “It is important that
you exercise your right to determine who gets whatever you have and
who is permitted to assist you if you are incapacitated, even if you
don’t have any assets.” If you have not prepared these documents
yourself, Rozansky says, a court may make these decisions for you.
“This can be more expensive and more aggravating to family members.”
Rozansky, along with Elaine J. Ruden of Ruden & Cramer, will
be speaking about “Legal Tools for Financial Management” on
Thursday, June 24, at 10 a.m. at the New Jersey State Bar Foundation,
New Jersey Law Center in New Brunswick. The event is free by reservation,
call 800-373-3529.
Rozansky will discuss the various documents essential to meet your
estate planning needs. For instance, some may confuse a living will
with a power of attorney.
A living will is a healthcare proxy documents designedso you can dictate how your health care will be managed if you areincapacitated.A power of attorney is the document that will allow youto appoint family members, friends, or other individuals to pay yourbills and manage your assets when you cannot do it yourself.Rozansky got her BA in English from Cornell University, Classof 1992, and graduated from George Washington University Law Schoolin 1995. She clerked in the civil division of the New Jersey SupremeCourt in Mercer County before joining Begley, Begley & Fendrick twoyears ago, where she specializes in elder law.”It is actually more legal planning than financial planning,”says Rozansky. Individuals in second marriages, with disabled children,and other such special situations should have their wills tailoredexactly to their situation, says Rozansky. “It is important thatyou don’t go to a stationery store and get a generic living will orpower of attorney. These are documents that are very crucial and determinethe outcome of a person’s life.”In addition to wills, living wills, and powers of attorney, you alsohave to do nursing home financial planning, says Rozansky. “Nursinghomes charge an excess of $5,000 a month for care and that can beshattering to a family’s finances,” says Rozansky. “Especiallyif the person is married, it is important to support the standardof living for the person living at home.”With proper financial planning you will not need to be impoverishedif you need nursing home care, says Rozansky. You can protect yourhome, your income, your life insurance policies, and make sure yourspouse at home has something to live on. You may even be able to transferassets to a child and not be penalized for it. “Unfortunately,”says Rozansky, “the federal and state governments do not makethese clauses well known because they don’t want you to do any planning.It is important that you learn what your legal rights are. It canbe devastating to watch your assets be depleted.”Many people postpone estate planning because they are nervous thattheir appointed agents may take advantage of them or try to controltheir lives while they are healthy. You can prevent that by appointingco-agents to watch over each other and by drafting the document tosay that the power to act on your behalf will not come into effecttill you are determined to be mentally incapacitated, says Rozansky.”Anybody over the age of 18 who has any assets at all should considerhaving these documents,” says Rozansky. Even younger people cancome down with an illness that will require an extended stay in along-term care facility. If you plan for these events it does notnecessarily mean that you will need these documents, or need to usethem sooner. “If you carry your umbrella,” says Rozansky,”it doesn’t rain. But if you don’t have your umbrella with you,you are going to get wet.”– Teena ChandyTop Of Page`Don’t Die Broke’You have the opportunity, says Margaret A. Malaspina,to control more of your retirement resources than did members of yourparents’ generation. In her new book “Don’t Die Broke: How toTurn Your Retirement Savings into Lasting Income” (Bloomberg Press,$21.95), she gives chapter and verse on how to do that well.”People spend years thinking about retirement, planning for retirement,and saving for retirement,” says Peter Lynch, vice chairmenof Fidelity Management and Research Company. “But they spend notime thinking about what they can and should do with the money they’veput away in their retirement savings plans. The issues are complicated.Mistakes are costly. And there’s no dress rehearsal. `Don’t Die Broke’can help you crack the code. There’s not another book like it.”Malaspina debunks current myths: It’s not true that, in the past,most Americans worked for one employer and were covered by lifetimepensions. Neither is it true that American companies have abandonedtheir retirement plans. And, contrary to some predictions, SocialSecurity will not fail before the next generation retires.But today’s retirement will, indeed, be different from the way yourparents did it. People live longer, work part-time in retirement,and don’t change their spending patterns until they get to be 85.And, ever since 1974, employees have been able to make before-taxcontributions to an Individual Retirement Account or IRA.Malaspina starts by helping you find your retirement resources (whatabout that company you worked for 10 years ago, did you leave somethingbehind?) and takes you by the hand to tally up your various assets.Then she goes step by step through all the confusing deadlines, suchas early withdrawal or too-late withdrawal penalties, and other commonbugaboos.Like most successful “how to” books, this one is full of numbersand is written in an anecdotal style. Perhaps that is because Malaspinawas a writer before she became a financial expert. As a vice presidentin the early 1980s at Fidelity Investments, she influenced the communicationspolicies of one of the nation’s largest investment companies. Shealso launched the book-writing career of guru/pundit Lynch and helpedstart Worth magazine.When it comes to drawing out your funds, says Malaspina, how you choosean adviser depends on how much you have:Less than $200,000. Consider an asset allocation or balancedmutual fund and a systematic withdrawal from your employer’s plan.Between $200,000 to $500,000. Choose an investment firmthat offers tailored portfolios, good service, and low fees.At least $500,000. Consider a personal investment adviser.Ask about credentials, track record, and fees.”If your affairs are complicated, this is not a job for a generalist– not even a smart, hard-working one,” she says. “Youwouldn’t put your cancer in the hands of your general practitioner.Give your retirement plan assets the same consideration.”– Barbara Fox”Don’t Die Broke: How to Turn Your Retirement Savingsinto Lasting Income” (Bloomberg Press, 1999, $21.95).Previous StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
