strohschein advocate · retirement savings to pay for your chil-dren’s college education or your...
TRANSCRIPT
Strohschein advocate
T HE EX PER I EN C E YOU R EQ UI R E.
T HE CO M PASSION YOU ’L L APPR EC IAT E.
The Challenges of the
Sandwich Generation
SUMMER 2013
What is the “Sandwich Generation?” This
is the population of people in their fifties
and sixties that are taking care of their
aging parents, putting their children
through college and getting them on their
feet to start careers, while planning their
own retirement. This generation is placed
in a financial and emotional squeeze.
The concept of sandwich generation is
relatively new but definitely a layer of its
own in our society. The sandwich genera-
tion was caused in part because lifespans
today are much longer than in years past,
and an increasing number of retirees or
near-retirees have aging parents who re-
quire costly nursing home or in-home care.
At the same time, many of these same
people have children who are still in col-
lege or who may return home once or
twice after college or between jobs in an
effort to get on their feet.
How to Avoid Sandwich Generation
Problems
If you’re already in your sixties, or nearly,
and feeling the financial squeeze of the
sandwich generation, there are a few
things you can do to lower your stress lev-
el and increase your peace of mind. You
might consider working a little longer,
trimming your expenses, and urging your
kids to explore every option for college
financial aid—especially merit grants or
scholarships that neither of you will have
to repay after they graduate.
If you’re in your forties or fifties, chances
are you have more time to plan and make
preparations before you find yourself
caught in the sandwich generation. Re-
gardless of your age, however, here are a
few steps you can take that may help you
manage the needs of your aging parents
and adult children without getting
squeezed by sandwich generation prob-
lems:
Preserve Your Assets—Don’t be a sand-
wich generation martyr by raiding your
retirement savings to pay for your chil-
dren’s college education or your parents’
long-term care. Your kids can take out
student loans if necessary, and you should
use your parents own assets to finance
their care for as long as possible.
Plan Ahead—Keep the sandwich genera-
tion trend in mind when you’re projecting
what kind of income you’ll need in retire-
ment. Be sure to consider the possibility
that you'll end up in the sandwich genera-
tion--one or more of your kids may need
to come back home for awhile, raising
your monthly costs or maybe delaying
your plan to move to a smaller home. And
if you have one or more parents still liv-
ing, count on joining the sandwich genera-
tion as your parents may also need your
financial help.
Assess the Situation —As early as possi-
ble, consider sandwich generation issues.
Talk with your parents about their assets,
how they want to live as they age, what
kind of health care and lifesaving
measures they do or don't want, and who
should make legal and medical decisions
for them if they are no longer able to han-
dle their own affairs. This may be a diffi-
cult and uncomfortable conversation for
you and your parents, but answering these
questions while there is still time to plan
ahead can help you both avoid a lot of
sandwich generation problems.
Get Insurance—Sandwich generation
members need to plan for the future. Look
into the viability of long-term care insur-
ance for your parents and yourself. Wheth-
er it is right for you depends on several
factors, including the cost of the coverage,
how long you might need it, and what kind
of benefits you want. If you or your par-
ents eventually require nursing home care,
however, long-term care insurance can
help offset those asset-draining costs.
Put Yourself First—Because you’re both
a conscientious parent and a dutiful child,
you may be tempted to put your own
needs after those of your aging parents and
adult children if you find yourself in a
sandwich generation scenario. Don’t. The
only person who can save for your retire-
ment is you. To avoid many sandwich
generation problems--and help your par-
ents and your children--you first have to
keep your own financial house in order.
2455 Dean Street, Suite G • St. Charles, IL • 60175 www.StrohscheinLawGroup.com 630•377•3241
We are excited to introduce our newest staff member, Annie! She is a six year old Wheaten Terrier (hypo-allergenic breed) that Linda adopted from a local rescue shel-ter. Her disposition is gentle and sweet and she loves to meet our daily visitors. Her fa-vorite color is green, like her doggy bed found under Linda’s desk, and she enjoys sharing her time among the staff throughout her busy day. She will occasionally find a seat in one of the side chairs to either get a better view or just encourage a little atten-tion. If you aren’t a dog person, no worries! Just let us know before you plan to arrive and Annie will gladly take a nap on her cozy doggy bed!
If you are going to meet with an estate planning attorney, it
is a good idea to be prepared so that you can have an educat-
ed discussion. The following are some action steps you will
want to take and topics you will want to discuss to be better
prepared for your meeting.
1. Discuss the important documents of any estate plan:
durable power of attorney for health care, durable power of
attorney for property, and a HIPAA release.
2. Think about how you want your assets to be distributed
after your death and write it down in your own words.
Review any contracts and beneficiary designations you
currently have in place and confirm with your estate
planning attorney that they are carrying out your wishes.
Be sure to update your will and/or trust every so often.
3. Your estate plan should provide sufficient sources of
income for your beneficiaries. Purchasing a life insurance
policy can provide your financial dependents with a
supplement for a loss of your income.
4.Openly discuss with your spouse or loved one how your
estate plan will affect him or her if you pass away first to see
if they are comfortable with it. Make changes, if necessary,
based on your discussion.
5.Calculate the amount of estate taxes that will be due at
your death. Also, if you are married with children, the
potential impact of taxes on your children should your
spouse predecease you or if you predecease your spouse. If
the amount of taxes is significant, discuss with your estate
planning attorney the possibility of making changes to your
estate plan or gifting to reduce potential estate taxes.
6. If you have a revocable living trust and it is not funded
yet, you should fund it so that you and your beneficiaries
can get the most out of its flexibility, privacy and conven-
ience. If you have real property in states other than your
legal residence, think about deeding the property to your
trust so that you can avoid additional probate proceedings in
that state after your death.
7. Be sure to select an executor of your estate, a trustee for
your trust, and a guardian for your minor children.
8. Please don’t forget who suggested these tips and bring
treats! Woof! (hint: Annie)
It is important that you understand the language in your
current estate planning documents. If anything is not clear to
you, make sure you ask your estate planning attorney to
explain it and what the impact will be on your heirs.
Strohschein Law Group has a new best friend!
Annie
Preparing for a Meeting with Your Estate Planning Attorney
Annie’s Kibbles & Bits ~
Life Care Planning….
Maybe it’s Time to Think
About It
There comes the time that we need
to think about putting together a plan
for the “what if.” It is possible you
are supporting your elderly parents
with a life care plan or looking
ahead to plan for yourself and/or a
spouse.
Life Care Planning is a service that
helps people find and pay for good
care for life. It is a “team” approach
serving the needs of the client,
which combines the skills of both of
the Elder Law Attorney, Financial
Advisors, Care Coordinators and
Other Professionals.
Life Care Planning deals with the
“unplanned” by looking closely at
the four continuums:
Health & Ability to Function
Home Sweet Home
Cost of Care
Public Benefits & Available
Resources
Forty-three percent of people over
the age of 65, progressing to fifty
percent of people over the age of 85,
will need skilled nursing home care
at some point in his or her lifetime.
Amongst that, the average stay is
more than two years. So, goals and a
plan are in the best interest of being
prepared. Consider the following
Life Care Planning Goals:
Care for Mom and Dad
Care for the Caregiver
Quality of life for Mom and Dad
Avoid Impoverishment
Protect the House
Protect the Inheritance
Planning ahead for your own
disability is a difficult step to take
because no one wants to believe it
can happen to them; but it can
happen.
Legacy Planning is a way of sharing your values, blessings, life lessons,
hopes and dreams for the future, as well as love and forgiveness with your
family, friends and community. The Ethical Will can be a combination of
thoughts and ideas, from a detailed written set of instructions to a simple
list of ideas, to one or more recordings, created for your loved ones. The
Ethical Will is created intentionally to last beyond your lifetime.
An Example….
“Whether I am present or not, I hope that as
you live out your own lives so that you can
maintain the balance of the familiar and the
unfamiliar by creating a solid base from
which you can securely approach your op-
tions and enjoy what you have created.
Along these lines, I hope that you will stay
connected to your parents, grandparents and
siblings, maintain a sense of being a part of
an extended family, build a web of friend-
ships and maintain them over time, commit
to being financially secure, build a base of
skills so that you are adaptable in the work-
place, develop an area which you can invest
yourself with passion, read a lot, value the
spiritual, commit yourself to things and peo-
ple, get in the habit of good communication,
be a citizen of the world, be respectful of
everyone you meet and seek out those who
are older and more experiences. Remember
always that my love lives inside of you.”
Creating your own Ethical Will consists of answering questions such as,
“If you could look fifty years into the future, what do you want to see with
regard to your family?” and “How valuable is it to you that your
inheritance is used wisely?” With an Ethical Will you are sharing your
desires of living a good life. Essentially the Ethical Will is a container to
hold all of the lessons you have learned in order to pass them on to the
others who may benefit from your wisdom. The Ethical Will allows each
of us to honor our closest relationships.
Since the Ethical Will is a non-legal document often prepared by the non-
attorney, it is common for there to be discrepancies between it and the
formal legal documents. A disclaimer is highly recommended, and we
strongly recommend having the Ethical Will reviewed by an attorney so
that the information contained in the Ethical Will does not contradict the
legal directions.
Legacy Planning can be done at any time in your life, although there are
some poignant times when it might be considered: Engaged Couples,
Expectant/New Parents, Divorcing Couples, Growing Families, Empty-
Nesters, Middle Age and Beyond, and End of Life.
Ethical Wills: The True Worth of Your Estate Plan
Strohschein Outlook
Strohschein Law Group
2455 Dean Street, Suite G St. Charles, IL 60175
All programs are free and presented at our St. Charles office
2455 Dean Street, Suite G
To RSVP, please call 630.377.3241 or email
Lunch or refreshments are included.
EP University for the Sandwich Generation Lunch & Learn 3-Part Series
Tuesday, July 16th 12:00-1:00 pm Part 1: Estate Planning (EP) Basics - Including Advance Directives
Tuesday, July 23rd 12:00-1:00 pm Part 2: Balancing Life Transitions
Tuesday, July 30th 12:00-1:00 pm Part 3: Navigating Financial Needs The sandwich generation is challenged with balancing the needs of their growing children, aging parents, and personal plans for retirement. If you feel like the cheese in a good sub sandwich - you are not alone. Join us for this 3-part series and learn the legal and financial steps you should consider when juggling these life transitions.
The Caregiver’s Tool Box Tuesday, August 20th 12:00-1:100 pm Saturday, August 24th Coffee Talk 9:00-10:30 am If you are a hands-on caregiver, or someone who is overseeing care, join us for this practical presentation about the role of the caregiver, identifying needs, and getting the tools you need to offer the best care for your loved one! You will get a “Tool Box” full of resources and information you need to know and consider.
Estate Planning
Long Term Care Planning
Guardianships
Estate and Trust Administration
Probate Litigation
630•377•3241
www.StrohscheinLawGroup.com