Stratton & Reynolds - December 2021/January 2022

Stratton & Reynolds - December 2021/January 2022

Main Street Monthly 905 Old Cherokee Road, Lexington, SC 29072 • P: 803-358-7214 • www.strattonreynolds.com Don’t Put Minors on

DECEMBER 2021/ JANUARY 2022

Your Beneficiary Designations

One of the most common questions we get is how to set up beneficiary designation forms on various assets. Assets that are left through beneficiary designations will pass directly to the beneficiary outside of probate, which means your will does not control those assets, and any trusts set up in the will do not apply to the inheritance. Assets with beneficiaries end up going directly to the designated recipient and must be put into the beneficiary’s name after you have passed. These beneficiary designations can cause a lot of additional headache and expense if the person you have named ends up receiving an asset before they reach the age of 18. A common issue we discuss with clients is how to avoid naming minors under the age of 18 on beneficiary forms. With adult beneficiaries, receiving the asset outright is often fine as long as you are okay with them managing the funds and they are not receiving disability benefits; however, giving a large lump sum to a minor to be problematic. In South Carolina, anyone inheriting significant cash or other liquid assets, such as retirement plans, who is under the age of 18 will need a conservatorship set up through their local probate court. This process could necessitate the hiring of an attorney and guardian ad litem. In addition, the child’s parent or legal guardian will need to file a petition with the court to open the conservatorship, likely need to attend a hearing, and also have to fill out an annual accounting and pay fees to the court on an annual basis as long as the conservatorship is open.

Another major issue is that when the beneficiary reaches age 18, in most cases, they will get the entire inheritance outright. Often, this is much sooner than when the person leaving the inheritance would have intended since most 18-year-olds are not responsible enough to manage a large inheritance. For those cases where clients want funds to go to a minor, we recommend setting up either a revocable trust or creating a testamentary trust through their will to hold those funds. The trust can then be named as the beneficiary and can contain terms specifying what the funds can be used for while held in trust. You can designate when the beneficiary is allowed to have everything outright and who will manage the funds while they are in trust. Doing this extra bit of work in your plan also means no one has to set up a conservatorship or pay any additional fees out of the minor’s funds to set this up. If you are considering naming a minor as a beneficiary or have already named a minor on your beneficiary designation, that would be a great reason to call and set up a meeting with one of our attorneys. If you have already created a will or trust with us, feel free to call to discuss what language needs to be on those beneficiary designations. –T.C.

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BRINGING BACK A LOST ART Your Guide to Writing a Thank-You Note

A 2019 survey by Ask Your Target Market showed 80% of respondents appreciate receiving thank-you notes — but only 22% of respondents report regularly sending them. That’s a pretty big discrepancy. During the holiday season, you probably received several gifts and may have been hosted at a family member’s house, so now is the perfect time to revive the dying art of the thank-you note. If it’s been a while since you last wrote one, fear not. Here’s everything you need to know to get started. KNOW WHEN A NOTE IS NEEDED. You should strongly consider sending a thank-you note any time you receive a gift, but they are particularly expected after big events like weddings or showers. It’s also good form to send a note whenever someone has done you a big favor or hosted you at their house. Professionally, thank-you notes should always be sent

after job interviews. Notes should be sent as soon as possible, ideally within one month of the gift or event. USE PAPER. It may seem old-fashioned, but that’s exactly what makes it special. In fact, the Ask Your Target Market survey found that 72% of respondents thought handwritten notes were more meaningful than electronic ones. Even if your handwriting is messy, your recipients will appreciate the personal touch. Exceptions apply for thank-you notes sent after job interviews — due to time sensitivity, these are best sent via email. BE SPECIFIC. Especially when you’ve got a large stack to get through, it’s pretty tempting to write the same note over and over again, changing only the salutation. Don’t give in! While it’s fine to have a template, recipients will recognize when the note you sent them is generic. Be sure to mention exactly what you’re

thankful for (not just “the gift”) or how you plan to use the gift.

Now, you’re ready to let people know how much you appreciate them in a way that’s both simple and classic. Your family, friends, and colleagues will be impressed, and who knows, you just might start a trend.

LEAVE A LEGACY: CREATING A SCHOLARSHIP

We have recently had several clients come to us interested in setting up scholarships as part of their planning. Scholarships can be a great idea if you want to leave a legacy that could last for years after your death while supporting students going to your alma mater. The good news is that many scholarships are funded through estate plans, such as wills or trusts, and do not require a donation to be made while you are alive and may still need to utilize your assets to pay for your own personal expenses. You can also set forth in your plan that the gift will only be made if you have a certain amount of assets left. Many people believe you have to be worth millions of dollars to set up scholarships in your estate plan, and nothing could be further from the truth. In working with various universities and private schools, we have found that while the schools will accept gifts in any amount, to set up a scholarship fund in your name or the name of a loved one, all you need is as little as $25,000–$50,000. Once the school knows approximately what the size of the gift will be, they can work with you to determine how much your scholarship fund can give every year, and you can decide how many scholarships you want to fund annually based upon that gift. Also, most institutions will let you specify exactly whom you want to receive the scholarships and the criteria for eligibility. For instance, you could specify that only students from your church who have a GPA over 3.5 are eligible. Or, you could specify

that only students studying a specific major, such as accounting or art history, are eligible. You can even set criteria based on demographics, involvement in athletics or extracurricular activities, or community service. There are a lot of possibilities when looking at setting up a scholarship as part of your estate plan. We often half-jokingly tell clients that it is difficult to completely “control assets from the grave.” But scholarships are a rare exception to that rule. Scholarships can be very narrow and specific, which, in many ways, does allow you to control exactly what your money is used for. But, in order for scholarship gifts to work effectively, they need to be set up in advance. In addition to specifying the scholarship gift in your estate plan, most institutions require that you set up a “Letter of Intent” ahead of time that supplies the school with the specific information regarding the estimated amount of the gift, criteria for your scholarship, formal name of scholarship, etc. Imagine the amazing legacy and benefit to our community if more of us were willing to help fund future educational opportunities through scholarship programs. With the ever-increasing cost of education, scholarships often allow students to afford schools they might not have been able to go to otherwise. If you want more information on how to set up a scholarship program through your estate plan, give us a call.

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New Year’s Eve has come and gone, and now that the champagne is finished and the decorations are put away, it’s time to buckle down and work on those New Year’s resolutions. The only problem is ... your resolutions for this year and last year are the same. Change is tough, so you’re not alone in being unable to stick to your resolutions. This year can be different, if you want it to be. Here are some tips to keep you on track. HAVE A SPECIFIC GOAL. Many resolutions are vague — along the lines of “exercise more” or “eat healthier.” That’s too ambiguous to inspire motivation, and vagueness leaves room for excuses. Make your goal more concrete, so you can measure your success. Specific goals could include going to the gym three times a week, being able to bench a certain number of pounds, or only indulging in fast food once a month. Make your goal realistic — if it’s too drastic or difficult, it’s easier to give up. HAVE A PLAN. Bad habits are hard to break, so change won’t come about naturally. It’s important to consider how you’ll structure your day around your resolution and what obstacles you might face. When will you go to the gym, and what will you do if that time gets interrupted? How will you plan meals to avoid spontaneous drive- thru visits? Write down what you want to accomplish and all the things that might stand in your way. Then, figure out how you’ll deal with them before they happen. START SMALL. On Jan. 1, you’re probably enthusiastic about your resolution and ready to hit the ground running. Not so fast — doing too much too soon is a classic mistake. It’s okay to be excited, but working out until you’re sore all over or constantly eating salads you hate will turn your resolution into a chore that you’ll want to avoid. Start with light workouts or replacing some of your carbs with veggies. Once you get the hang of that, you’ll be ready to scale up slowly. Using these guidelines, you’ll make lasting changes that extend beyond February. Get 2022 started off on the right foot, and next year you’ll be ready to make a whole new resolution — and keep it. How to Keep New Year’s Resolutions For Real, This Time

WE DO REAL ESTATE CLOSINGS!

We are happy to assist our clients with all of their real estate needs. From new home purchases to refinances, we are eager to assist you, your friends, or your family at either our Lexington office or our Aiken office. If you or someone you know is looking to move in the next couple of months, or wanting a lower interest rate with a refinance, please let us know. –Chasity, TC, and Jeff

TAKE A BREAK!

Blanket Carnation Cold Emmys Football Garnet

Janus Mittens Parade Resolution Snow Workout

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905 Old Cherokee Road Lexington, SC 29072

Inside this Issue

Don’t Put Minors on Your Beneficiary Designations PAGE 1 The Lost Art of the Thank-You Note PAGE 2 Leave a Legacy: Creating a Scholarship PAGE 2 Stick to Your Resolutions — For Real, This Time PAGE 3 Why Do Your Ears Pop on Flights? PAGE 4

Airplane Ears

The Science Behind Your Ears Popping on Flights

When it comes to flying on an airplane, you can avoid cramped legs by upgrading to first class or catch a view by picking the window seat. However, there’s no getting around your ears popping during takeoff and landing. Believe it or not, there is a scientific explanation behind this common annoyance. As you read this, you’re likely not on an airplane, and the air pressure on either side of your eardrums is equal. Air is currently passing right on through your eustachian tube, a narrow passage that leads from your middle ear cavity to your pharynx and allows for pressure to be equalized on each side of your eardrums. When you’re in flight on an airplane, air pressure is not equal. During both ascent and descent, your eardrums stretch to try to adapt to the changes. In order to equalize the pressure, your eustachian tube needs to open and close. When it does, your ears pop! Usually, the ear popping is irritating but nothing more. However, in rare cases, the pressure can lead to ear pain and even loss in hearing, especially if your ears don’t pop.

Sucking on a piece of candy, swallowing some water, or chewing gum may also help! One of the best things you can do is make sure you are not sleeping as the airplane takes off or lands because your eustachian tube isn’t able to open and close normally. If you commonly struggle with congestion or sore ears on flights, taking a nasal decongestant before you board may ensure that your eustachian tube is not blocked. If your hearing and ears do not return to normal shortly after the flight, be sure to schedule an appointment to see your health care professional as soon as possible.

In this case, you may need to make an effort to get your eustachian tube to open by yawning, talking, or swallowing.

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