Bookkeeping for Family Fiduciaries

When individuals cannot manage their finances, courts can appoint guardians. Financial guardianship is for those who need help handling money. Depending on the jurisdiction, financial guardianship may also be called guardianship of the estate or conservatorship.In cases where individuals need help with personal and financial decisions, the court can order guardianship of the person and estate. The guardian makes both personal and financial decisions for the protected person.What Financial Guardianship EntailsFinancial guardianship gives the guardian the authority to oversee the protected persons finances and access money to pay bills. In many cases, the terms of the arrangement require the guardian to seek court approval before making financial actions on behalf of the ward, such as spending money and selling assets.The wards money goes into a blocked account. The guardian can only access such an account with a court order, according to the Family Law Self Help Center.When Do Courts Order Financial Guardianship of an Adult?Courts appoint financial guardians when people demonstrate that they cannot handle their finances on their own.Individuals who frequently forget to pay bills might need help with finances. For instance, a person might need help remembering to pay bills and handling money.Those who are vulnerable to financial exploitation might also need guardians. For example, suppose a person makes significant payments to an online scammer. In that case, a loved one might petition the court to become the persons guardian to protect them.Individuals with diseases and disabilities that prevent them from understanding money may also need the help of a trusted person. For instance, dementia can cause people to have executive functioning difficulties that impact their ability to handle money.When a person has significant assets but needs help managing them, courts will order financial guardianship. Individuals with limited income and assets might not need financial guardians.Alternatives to Financial GuardianshipWhile providing protection and support, guardianship limits autonomy. Many states require courts to explore less restrictive alternatives to guardianship before appointing a guardian. Those facing challenges with financial decisions should, along with their loved ones, first consider other options.Financial Power of AttorneyGuardianship is appropriate when a person is impaired and cannot make their own decisions. Suppose an individual still can make decisions and understand the consequences of their choices. In that case, the person can execute a power of attorney for property. This gives a trusted individual the ability to handle their assets.Compared to financial guardianship, an economic power of attorney can protect individuals rights while allowing someone to step in and help with monetary decisions. Under financial guardianship, it is more difficult for the protected person to change the arrangement if disagreements with the guardian arise. The person subject to the arrangement must petition the court to terminate it.Revoking a power of attorney is, by comparison, straightforward. As long as the individual who made a power of attorney retains capacity, they can withdraw their power of attorney at any time for any reason. They can also appoint a new agent without judicial oversight.Supported Decision MakingAnother option for those with money difficulties is supported decision-making. Under a supportive decision-making arrangement, a person can have a trusted individual or multiple people help with financial decisions.Supportive decision-making is less restrictive than guardianship, as individuals get help with decisions while retaining autonomy. Unlike a ward in a guardianship, the individual keeps the final decision-making power.Those wondering whether they need someone to help with finances should speak with an elder law attorney. Contact Sharek Law Firm today at 412-347-1731 or schedule a free 15-minute introductory call today for all of your elder law needs. Additional Reading on Legal GuardianshipThe Ins and Outs of Guardianship and ConservatorshipBritney Spears Case Puts Renewed Focus on Guardianships and Less Restrictive AlternativesHow Do I File for a Guardianship?New Yorker Article Highlights Abuses in the Guardianship System This article is a service of Sharek Law Office, LLC. We dont just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life and Legacy Planning Session, during which you will get more financially organized than youve ever been before, and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge. Please note this is educational content only and is not intended to act as legal advice.

Many people plan to take an early retirement, so when that day arrives, theyre ready for it. But what if you were to face an unplanned retirement? Would you be prepared to deal with the financial issues?Its something worth thinking about, because any number of factors illness, a spouses illness, downsizing, other issues could lead to an abrupt departure from the workforce. But taking action while youre still working may help you make the transition easier on yourself.Your first move, of course, should be to at least consider the possibility of having to retire earlier than you planned. You can then move on to some concrete steps, possibly including the following. Build an emergency fund. Under any circumstances, its a good idea to build an emergency fund but its especially important if you want to prepare for an unforeseen retirement. Generally speaking, your emergency fund should contain three to six months worth of living expenses, with the money kept in a liquid, low-riskaccount. But if you suspect an earlier-than-anticipated retirement may be in your future, and you have some time to prepare for it, you should consider an emergency fund that contains a full years worth of expenses. Consider your portfolios asset allocation. If youre concerned about an unexpected retirement, you may want to consider the equities allocation in your portfolio. If you think you may need to tap into your portfolio sooner than you expected, you may not want to be over-exposed to investments most vulnerable to market volatility.However, these are the same investments that offer you the most growth potential which youll need to help stay ahead of inflation. So, look for an investment balance thats appropriate for your needs. As part of this positioning, you may want to shift some assets into income-producing vehicles, while alsoadding to the cash portion of your portfolio to boost your liquidity.    Evaluate your Social Security options. An unplanned retirement may cause you to consider taking Social Security earlier than you had planned. You can start taking Social Security when youre 62, but your monthly benefits will be up to 30% lower than if you had waited until your full retirement age, which is likely between 66 and 67. Ifyou have sufficient income through other sources, you may be able to delay taking Social Security until your checks will be bigger but of course, if you need the money, waiting may not be an  option.   Address your health care needs. If you take an unplanned retirement, and you have employer-sponsored health insurance, youll have to look for alternatives. You might be able to get extended coverage from your employer, but this could be quite expensive. Of course, if youre already 65, you can get on Medicare, but if youre younger, you might be able to get coverage under your spouses plan. If thats not an option, you may want to explore one of the health care exchanges created by the Affordable Care Act. To learn more about these exchanges, visit healthcare.gov.Taking an unexpected retirement can certainly be challenging but the more prepared you are, the better your outcomes are likely to be.Chad Choate III, AAMSFinancial Advisor |  Edward JonesBradenton's Riverwalk828 3rd Ave W Bradenton, FL 34205941-462-2445  chad.choate@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC  

 In the past year, weve seen some big swings in the financial markets. This volatility may make you feel as if you have little control over your investment success. But the truth is, you do have more control than you might think as long as you dont let fear guide yourdecisions. Investment-related fear can manifestitself in a few different ways: Fear of loss Some investors may emphasize avoiding losses more than achieving gains. Consequently, they might build portfolios they consider very low in risk, possibly containing a high percentage of certificates of deposit (CDs) and U.S. Treasury securities. Yet, a highly conservative approach carries its own risk the risk of not achieving enough growth to stay ahead of inflation, much less meet long-term goals such as a comfortable retirement. To reach these goals, youll want to construct a diversified portfolio containing different types of assets and investments each of which may perform differently at different times. Your objective shouldnt be to avoid all risk which is impossible but to create an investment strategy that accommodates your personal risk toleranceand time horizon.           Fear ofmissing out Youre probably familiar with the term herd mentality the idea that people will follow the lead of others for fear of missing out on something. This behavior is responsible for fads or the sudden emergence of hot products, and its also relevant to investing. In fact, herd mentality may contribute to sharp jumps in the financial markets as investors drive up prices by buying stocks to avoid being left behind. And the same may be true in reverse when the market starts dropping, skittish investors may accelerate the decline by selling stocks so they, too, can get out before its too late. Buying or selling investments should be considered as needed to help advance your long-term financial strategy not in response to what others are doing. Fear of the unknown Some investorsfall victim to familiarity bias the tendency to invest only in what they know, such as local or domestic companies. But this behavior can lead to under-diversified portfolios. If your portfolio is dominated by just a few investments, and these investments are fairly similar to each other, you could experience some losses when the inevitable market downturn occurs. To help reduce the impact of market volatility, its a good idea to spread your investment dollars across large and small companies in a range of industries and geographical regions. And thats just on the equities side its also wise to consider further diversifying your portfolio by owning bonds and government securities. (Keep in mind, though, that diversification cant guarantee profits or protect against all losses.) Fear ofadmitting failure Some individuals dont like to admit when theyve been wrong about something, and they may continue the same failed activities, hoping for eventual success. This behavior can be costly in the investment arena. Sometimes, a particular investment, or even an investment strategy, just doesnt work out, but an investor is determined to stick with it even if it ultimately means considerable financial loss. Dont let his happen to you if it becomes apparent you need to change your investment approach, move on to something better.Fear can holdus back in many walks of life but dont let it keep you from making appropriate investment moves. Chad Choate III, AAMSFinancial Advisor | Edward Jones828 3rd Ave WBradenton, FL 34205941-462-2445   Chad.Choate@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC