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CannonMurrayLaw, llc
Estate Planning, Elder Law, Medicaid-Long Term Care Planning,
Asset Protection Planning, Tax Planning, Real Estate,
Probate and Estate Administration |
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Our mission is to preserve and protect your assets. | |
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THE NUMBERS
Size and Scope of the Social Security Disability Program
Fiscal Year Ending 2012, published, Nov. 2013 by the Social Security Administration
*Disability benefits were paid to just over 10.1 million people.
*Awards to disabled workers (960,206) accounted for over 90 percent ofawards
to all disabled beneficiaries (1,063,045).
*In December, payments to disabled beneficiaries totaled about $10.9 billion.
*Benefits were terminated for 728,320 disabled workers.
*Supplemental Security Income payments were another source of income for
about one out of seven disabled beneficiaries.
Profile of Disabled-Worker Beneficiaries
*Workers accounted for the largest share of disabled beneficiaries (87.5 percent).
*Average age was 53.
*Men represented under 53 percent.
*Mental disorders was the diagnosis for about a third.
*Average monthly benefit received was $1,134.86.
*Supplemental Security Income payments were another source ofincome for about one out of eight. |
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CannonMurrayLaw, llc.
575 Turnpike Street #12
North Andover, MA 01845
Phone 978-989-9999
Fax 978-989-0089 and 85 Eastern Avenue Gloucester, MA 01930 Phone 978-473-1631 Fax 978-910-0302
ray@cannonmurraylaw.com
bridget@cannonmurraylaw.com
Admitted
Massachusetts Bar
Minnesota Bar
United States Tax Court
Federal District Court of MA
United States Supreme Court |
3 YEAR REVIEWS
We encourage you to take advantage of our free one-hour consultation to review your estate plan on your plan's third year anniversary.
Please call
978-989-9999
for an appointment.
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Please feel free to forward this Newsletter to your family, friends and associates who may be interested in a one-hour free consultation to discuss these topics.
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SHOULD A PROFESSIONAL TRUSTEE MANAGE JANE'S TRUST?
Jane called me to see if she needed to hire a professional trustee to manage her trust when she passes on.
I explained to Jane that for many years, it was fairly common to have a family member act as trustee for a trust. The only real job skills required would be trustworthiness and sound financial and administrative ability. However, with the stock market crash of 2008 along with the Bernie Madoff scandal, more and more individuals are choosing professional trustees to manage their trusts when they pass on.
Professional Trustees offer more than stewardship of the trust: They make financial and investment decisions based upon the income needs of the beneficiaries, they have to make tough decisions as to whether to pay trust assets when a beneficiary requests so; they must send accountings to the beneficiaries and file tax returns with both the state and the IRS.
Generally, if you create a trust to last generations, or if your assets exceed the federal estate-tax exemption of $5.34 million, or if you have a special-needs child requiring close support for years to come, you should have a professional trustee in the mix. A good pro can bring continuity and a high level of investment, accounting and planning expertise.
It is also a good idea to choose one or more family members to serve together with the professional trustee as the family members will be well tuned in to the needs of the family and can act as a buffer in the event of any disagreements over the amount or timing of distributions.
Managing a trust is a balancing act: The trustee has to take into account the needs of the lifetime beneficiary (often the surviving spouse) and the remainder beneficiaries (the children). Assets should be invested taking into account both the short term income needs of the lifetime beneficiary as well as the longer term growth on the assets that will be expected by the remainder beneficiaries.
Lesson: When determining to choose a family member or professional trustee, it is a good idea to consult with your estate planning or elder law attorney who can outline for you the pros and cons of either choice.
If you are new to the Jane Chronicles, you may read past issues by going to our website:
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New rules will make it easier for retirement plans to offer longevity annuities.
They modify the required minimum distribution rules to allow IRA owners and 401(k) participants to use up to the lesser of 25% of their account balances or $125,000 to purchase longevity insurance.
Qualified amounts used to buy policies will be ignored when calculating RMDs. These annuities begin at an older age,
say 80 or 85, and can therefore be purchased at a deep discount upon retirement. This way, senior citizens needn't worry as much about outliving their account balances.
Source: Kiplinger Tax Newsletter, July 18, 2014
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Essex County Community Foundation manages charitable funds for donors and provides grants, services and education to nonprofit leaders to improve the effectiveness and capacity of nonprofit organizations serving Essex County, Massachusetts.
Promoting philanthropy and strengthening nonprofits serving the people of Essex County, Massachusetts Promoting philanthropy and strengthening nonprofits serving the people of Essex County, Massachusetts 175 Andover St. Danvers, MA 01923 Tel: 978-777-8876 Fax: 978-777-9454 info@eccf.org.
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On July 16, 2014, a new act was approved by a national law group which provides comprehensive provisions governing access to digital assets. The Uniform Fiduciary Access to Digital Assets Act (UFADAA) was approved by the Uniform Law Commission (ULC) at its 123rd Annual Meeting in Seattle.
In the modern world, digital assets have largely replaced tangible ones. Documents are stored in electronic files rather than in file cabinets. Photographs are uploaded to web sites rather than printed on paper. However, the laws governing fiduciary access to these digital assets are in need of an update.
The Uniform Fiduciary Access to Digital Assets Act solves the problem using the concept of "media neutrality." If a fiduciary, such as an executor under a Will or an attorney in fact under a Durable Power of Attorney, would have access to a tangible asset, that fiduciary will also have access to a similar type of digital asset. UFADAA governs four common types of fiduciaries: personal representatives of a deceased person's estate; guardians or conservators of a protected person's estate; agents under a power of attorney; and trustees.
UFADAA defers to an account holder's privacy choices as expressed in a document (such as a will or trust), or online by an affirmative act separate from the general terms-of-service agreement. Therefore, an account holder's desire to keep certain assets private will be honored under UFADAA.
While approved by the ULC, the bill must be approved by the House and Senate and signed by the President before it becomes the law of the land.
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