Law Office of Paul Black - February 2019

Law Office of Paul Black - February 2019

404.410.6820

www.Georgia-EstateLaw.com

February 2019

The Lessons Age Brings LOVE AND CARE

A s we get ready to celebrate the most romantic day of the year, I find myself reflecting on the unique perspective on love my work has given me. Serving elders as they build their estate plans, I’ve had many amazing conversations with couples whose relationships have stood the test of time. Meeting with spouses who have been married more than 50 years certainly puts that particular four-letter word in a whole new light. There’s a lot to be learned from such long-standing relationships. Just seeing the ways affection can still burn so strongly between two people who have spent the majority of their lives together is inspiring. But what really puts love into perspective is witnessing how these couples face their new challenges. Because of the nature of my work, I usually meet couples in a time of transition, when health challenges are beginning to cause spouses to ask hard questions. The decision to become a primary caregiver is a weighty one, and few put much thought into it before the need becomes apparent. Often, it’s not until old age when we find out what our marriage vows really mean.

Ask a young person what they think it means to love someone and you’ll probably get something like, “Being there for that person no matter what.” After all, when we marry someone the traditional promise is to be there in sickness and in health. But what does it really mean to “be

People often assume they have a binary choice: stay in their home or go to a nursing home. But this isn’t the case. There are a spectrum of services available, including in-home care and short-term assisted living — sometimes referred to as respite care. While the types of services will vary depending Counseling can lighten the burden of being a care provider. Mindful Transitions in the Atlanta area brings clinical social work services to you. This home care style of therapy can provide some much-needed emotional support in an extremely difficult time. Best of all, these kinds of services are often covered by Medicare. The health challenges life throws at us can be some of the most difficult things a couple might face. This Valentine’s Day on where you live, it’s worth exploring what’s available.

there?” How much stress and sacrifice do we take on in the name of love? The answer really depends on you. Some people are natural caregivers, able to accept the added physical and emotional

responsibilities in stride. Others struggle with this unglamorous task and are afraid to ask for help. Some spouses take on all the responsibility of being a caregiver at great personal cost when they don’t have to: Nowhere in those wedding vows do you say you’re going to care for one another alone . How a couple decides to confront new health challenges is your sole purview. No amount of education or elder law experience would qualify me to make those life decisions for you or your spouse. But as someone who has been a caregiver to loved ones, I would urge you to consider the options that exist today.

let’s remind ourselves that while we should always love and care for our spouse, we don’t have to do it alone.

-Paul Black

Do you have estate planning or elder law-related questions? Write to me at [email protected] with Asked and Answered in the subject line. Your identity will be kept confidential. The opinions offered in this column are not intended to replace or substitute any financial, medical, legal, or other professional advice.

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EMBRACING ‘SPENDOPHOBIA’ 3 Ways to Invest in Yourself After Retirement

You’ve spent your entire life being told to save, save, save. Now you’re finally retired, so it’s time to spend some of that money — but you’re scared! This is only natural because it means breaking a lifelong habit of socking away money and refusing to touch it. You’re not alone. A recent study of retirees’ spending habits showed many people actually spend less than they can afford to. They’re scared of the “what ifs” that come with living on a fixed income. However, at age 70 1/2, you have to start taking the required minimum distributions (RMDs) from your traditional IRA and 401(k) whether you want to or not. Instead of stressing over the fact that you’re pulling money out of these accounts, embrace the opportunity to do something for yourself. TRAVEL It can be tempting to hold off spending money as long as possible. After all, who knows how long you need your

savings to last? Travel, however, is one thing you can indulge in early without feeling guilty. Even the most leisurely trips can be physically demanding, so it’s better to see the world at 70 rather than wait until you’re 90. To keep yourself on track financially, use the bucket system to set up a separate savings account just for travel. INVEST IN YOUR HOME Once you no longer have to work five days a week, you’ll be in your home more often, so why not make it amazing? An in-ground pool or a private tennis court might be outside your budget, but new kitchen countertops or a deeper tub will add a touch of luxury to the space you spend the most time in. Upgrading your home is almost always a good investment because it adds equity, which will pay off down the road. That extra cash will come in handy if you decide to sell later on in order to downsize or you plan to enter assisted living. Don’t forget to set aside

money for ongoing maintenance, such as a new water heater or roof repairs. GO BACK TO COLLEGE It might sound counterintuitive to go to college when you’re not planning to go back to work, but continuing your education after retirement offers many benefits. Many individuals find themselves with more time on their hands than they’re accustomed to, and without a plan to fill this time, it’s easy to become depressed or isolated. Numerous studies have shown that continuing to exercise your brain has a positive impact on cognitive function, so taking a few classes can be the perfect way to stay busy and keep your mind sharp. Attending school late in life is also a great opportunity to indulge your passions and learn more about subjects you’ve always been interested in. Many colleges offer free classes or reduced tuition to seniors, so check with your local schools and see what classes or programs they have available.

Asked and Answered: A Legal Advice Column

Dear Paul, I am a widow, and I am worried that my adult son will make stupid decisions if I name him as a beneficiary of my retirement account. He does not work, has a history of impulsivity and alcohol abuse, and does not manage money well at all. (And this is after we paid for six years of college tuition!) In contrast, my daughter is a model of responsibility. I am afraid my son would simply pull all the money out as a lump sum and there would be nothing left a year later, leaving him dependent upon others for his basic needs. What are my options? Should I just leave all the money in these accounts to my daughter and hope that she will take care of our son?

Dear Batting .500, First and foremost, while your signature made me laugh, there are a thousand reasons why adult children might make consistently bad financial decisions. A lot of my clients encounter this situation, and from what I have learned, it isn’t necessarily your failure as a parent that led your son to be bad with money! After all, isn’t part of being an adult taking responsibility for our lives and not placing all of the blame at the feet of our parents or others? Having said that, you have a couple of options to provide for your spendthrift son. We can help you set up a standalone retirement trust to receive retirement account proceeds upon your death. This trust would empower someone (possibly your responsible adult daughter, if she is willing) to serve as the trustee and determine when and how much money your son receives. Of course, there is

always a trade-off: Trusts get taxed at high rates very quickly, so if the trust earns a lot of money on what it owns, it will be paying high taxes. We would have to do the math and weigh the potential tax bills versus the damage that might be done by giving this money outright to your son. If all the money would be gone in a year, maybe paying some taxes is not so bad. Alternately, you could take other approaches: • Leave the money from your retirement accounts to your son anyway and wish him luck. Not my favorite option, but some clients opt for this, and it’s ultimately their decision. • Leave your son nothing from the retirement accounts, but use a revocable trust and name a trustee for a commensurate share of other assets. Let me know if you want to schedule a consultation soon to discuss your options in more detail!

–Mother Batting .500

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THE 5-SECOND RULE WILL MAKE YOU SICK 3 Health Myths You Probably Believe

We live in the golden age of information. The answers to many of life’s questions are just an internet search away. Despite this readily available wisdom, we still have a bad habit of believing health-related myths. Here are three popular health “facts” that are total works of fiction.

School of Medicine pointed out, over 50 percent of bottled water is just filtered tap water. The same effect can be achieved with a home filtration system. Of course, if the tap water in your area has been contaminated, bottled water is a safer alternative. However, in most circumstances, bottled water is no healthier than tap water.

THE 5-SECOND RULE KEEPS FOOD SAFE

CRACKING YOUR KNUCKLES CAUSES ARTHRITIS

Obviously germs and bacteria don’t really wait five seconds to pounce, but snatching your chip off the floor fast keeps most of the germs away, right? Not according to a 2006 study published by Dr. Paul Dawson. He found conclusive evidence that when food comes into contact with a contaminated surface, bacteria are transferred immediately. Even one second spent on tile, wood, or carpet is enough to infest your food with salmonella or another serious contaminant.

The connection between knuckle-cracking and arthritis came from studies where participants self-reported their habits. Modern medical research has shown these results to be false. The official stance from the John Hopkins Arthritis Center states, “There is no evidence that cracking knuckles causes any damage such as arthritis in the joints.” Still, chronic knuckle-cracking can lead to reduced grip strength, so you might want to break the habit anyway. You’ve probably heard these myths for years, but just because something is common knowledge doesn’t mean it is true. With information so easily available, always take the time to research the facts, especially when it comes to your health.

BOTTLED WATER IS SAFER THAN TAP WATER

People seeking out safer water alternatives increases the sales of bottled “spring water” each year. However, bottled water is more expensive, bad for the environment, and, as Dr. Morton Tavel of the Indiana University

Tiramisu

Inspirational Moment

INGREDIENTS

• • • • • • •

6 egg yolks

3 tablespoons sugar

1 pound mascarpone cheese

1 1/2 cups strong espresso, cooled

2 teaspoons dark rum 24 packaged ladyfingers

1/2 cup bittersweet chocolate shavings, for garnish

DIRECTIONS

1. In a large mixing bowl, use a whisk to beat together egg yolks and sugar until thick and pale, about 5 minutes. 2. Add mascarpone cheese and beat until smooth. 3. Fold in 1 tablespoon of espresso. 4. In a small, shallow dish, combine remaining espresso with rum. Dip each ladyfinger into mixture for 5 seconds. Place soaked ladyfingers at the bottom of a walled baking dish. 5. Spread half of the mascarpone mixture on top of the first layer of ladyfingers. Top with another layer of ladyfingers and another layer of mascarpone. 6. Cover and refrigerate 2–8 hours. 7. Remove from fridge, sprinkle with chocolate shavings, and serve.

Inspired by foodnetwork.com

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INSIDE THIS ISSUE

Rethinking ‘In Sickness and in Health’

1

2

3 Ways to Invest in Yourself After Retirement

Asked and Answered

3

Let’s Retire These Health Myths

Tiramisu

4

Looking Back at the Start of the City

GEORGIA TRAVELS

A FRESH LOOK AT OLD BUCKHEAD A Diamond of a City, Crafted From Georgia Clay

Heavy traffic gives you plenty of time to contemplate the big-city feel of upscale Buckhead. Jammed with over 50 high-rise skyscrapers — one-third of Atlanta’s total — the business district also boasts over 1,500 units in the ritzy shopping centers peppering its thoroughfares. It’s hard to imagine a time when these streets were as lawless as any in the Old West. It began in 1838, when businessman Henry Irby purchased roughly 200 acres of land near the present-day intersection of Peachtree, Roswell, and West Paces Ferry. His canvas completely blank, Irby began painting with commerce, establishing a general store and tavern to serve the town’s then-400 residents. Originally called Irbyville, the name was soon changed to Buckhead after — according to legend — a frontiersman killed a large deer and hung its head on the tavern wall. The city

began to pick up steam, and by 1850 it was starting to become a rural vacation destination for Atlanta’s elites. Plantations dominated the region until after WWI. Those vacationing Atlantans began to settle down in earnest, dotting the hillsides with mansions and cementing Buckhead as the seat of Atlanta’s wealthy population. Throughout the great depression and into the mid-1950s, the region still prospered but it wasn’t until the building of Lenox Square, in 1959, that Buckhead went upper-echelon. Lenox Square was one of the first shopping malls in the entire country, and by far the largest in the Southeast. The mall is much different now, but still a rendezvous of note for big somebodies. The city suffered a growing reputation for a seedy nightlife in the ‘80s, but has since made strides to distance itself, its planners settling on a more residential feeling.

Many of the clubs and bars were either torn down or repurposed in 2007.

Buckhead is a vibrant metropolis today, but it was carved out of raw materials by the hard work of a spirited, seemingly eccentric businessman-founder. Buckhead may look like it’s always been swanky — and her centuries- old wealth is no joke — but taking a look at a piece of coal can make a diamond that much more impressive.

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