PaperworkPaperworkWhat Should I keep? Sorting through the paperwork of a deceased loved one is a daunting task. It is important to know what to keep and what to discard. Here are some helpful tips.  Deeds, Titles and Vehicle RegistrationsDeeds and titles to property may not be obvious on the face of the document so it is important to read everything carefully. Keep anything that has a legal description (Lots and Blocks or Metes and Bounds), a vehicle identification number (VIN), contains the word title, deed of trust or warranty deed.  ReceiptsSome property does not have a title such as a tractor, farm equipment or certain recreational equipment. In such cases, keep the purchase receipts for this type of property. It will be useful if there is a question about ownership, the value of the property or the date it was purchased.  Bank RecordsSave all bank records and statements. These will be valuable if a dispute arises about ownership of an account, payments or distributions made from the account and to whom. Shred unused checks.  Retirement AccountsSave all statements and records pertaining to the decedents individual retirement accounts (IRAs), 401(k) plans or pension plans.  Life Insurance PoliciesSave all life insurance policies.  Social Security Paperwork and Earning StatementsSave information about the decedents Social Security account or earning statements.  Cancel the Decedents Credit Card Accounts Nowadays, identity theft is a huge issue. Contact Experian, Equifax and TransUnion to report the death of your loved one. Request the credit report be flagged as Deceased. Being proactive prevents a lot of hassle later on.  Cancel all credit cards in the deceased persons name. Also, there may be questions about the credit card purchase of certain items or property. Save credit card statements until probate of the decedents estate is complete.  Documents that contain the decedents Social Security NumberIf you find any documents with the decedents Social Security Number and you make a determination that the documents are not going to be saved, make sure it all gets shredded.  Tax RecordsKeep the decedents tax records. There may be a question about real property valuation, exemption or other issues that can be resolved by information in a tax return.   Loan PaperworkKeep all loan paperwork including loans on property or a loan the decedent made to a relative, friend, individual or organization. This may show that there is outstanding debt or money owed to the decedents estate.  Business AgreementsSometimes people have business agreements that have been documented in writing. Such agreements may contain a succession plan, what should happen with business equipment or property, or what should happen upon the death of a business partner.  Military RecordsSave all military records just in case there are benefits owed to a survivor such as a spouse, dependent child or disabled child. Some benefits are dependent upon verification of military service during war time which occurred prior to the advent of computer records. This includes photographs taken during wartime.  Birth and Marriage CertificatesSave all birth and marriage certificates. Again, for certain benefits for survivors, such certificates may be needed.  Timeframe for Keeping PaperworkIt is advisable to keep these potentially important documents until the estate of the decedent is settled, at a minimum. Otherwise keep them at least seven years and longer if possible, especially if real estate is involved.  Contact Your AttorneyYour attorney will ask you pertinent questions and give you advice about what records to keep.  You should also review your own estate plan documents to make sure they are up to date and reflect your current wishes.  This article was written by Donna A. Schuyler, Attorney, who practices in the areas of estate planning, elder law, guardianship, and probate. Donna Schuyler Law, PLLC; elderlawboise.com. Phone 208-344-1947

Elder financial abuse occurs when someone illegally or improperly appropriates money or belongings from an older person for their own personal use. While this financial exploitation takes many forms, including online scams, according to the National Adult Protective Services Association (NAPSA) the vast majority of reports involve perpetrators who are related to or in a trusting relationship with the victim.NAPSA reports financial abuse of elders is costing older Americans and their families billions every year, though occurrences are thought to be grossly underestimated, with only 1 in 44 elder financial abuse cases even reported. This suggests were only seeing the tip of the iceberg when it comes to the actual devastation older adults and their families are experiencing the wake of abuse. So why are the majority of cases going unreported? The abuser is a trusted family member or caregiver Even if the victim becomes aware of the abuse, choosing to pursue a case against a loved one may be an impossible and heartbreaking decision for many older adults, especially if they are dependent on the abuser in some way. Many abusers have provided some form of assistance or caregiving to the older adult and can convincingly argue they are owed compensation, while the truth is they have abused the victims trust for personal financial gain, with little regard for the victim. The abuse takes place little by little over time Financial abuse often occurs over months or years. It can be a slow, steady process of siphoning off small amounts at a time through check requests, bank withdrawals, wire transfers, recurring credit card payments, etc. The perpetrators are methodical and measured. They dont ask for or take amounts significant enough to trigger suspicion in financial institutions or be questioned by family members or friends of the victim. Unfortunately, by the time the abuse is discovered, there may be little chance of reversing the financial damage. Shame and fear As with many acts of abuse, the victim may feel a great deal of shame. If taken advantage of, older adults often worry that relatives will feel they can no longer take care of their own financial affairs. With financial exploitation there is often an illusion of consent on the part of the victim, but its propped up by manipulation, deception, or blatant misinformation. Despite this, the victim may fear they will be seen as mentally unfit for allowing themselves to be exploited and that reporting the abuse will lead to a loss of independence or autonomy. They dont know how or where to report the abuse to In the wake of a financial violation, finding resources can be an overwhelming task, further complicated by a lack of trust because of the abuse. But reporting financial abuse is imperative to gain knowledge of how abusers operate and to understand the full scope of the damage they cause in order to enact the measures necessary to break the cycle.If you think you or a loved one is a victim of elder financial abuse, contact these trusted organizations to find resources and file a report:justice.gov/elderjustice National Elder Fraud Hotline: 1-8333728311The Minnesota Adult Abuse Reporting Center 1-844-880-1574elderjusticemn.org 651-440-9312  

Choosing a loved one as your beneficiary could be considered an act of kindness for some. Learn more about the basics of beneficiaries, tax implications and other considerations that can help ensure your loved ones receive your assets.What is a beneficiary and why is it important?What's the difference between primary and secondary beneficiaries?Who can you designate as a beneficiary?Beneficiaries for retirement accounts, annuities, and life insurance policiesSpecial considerations for IRAs What is a beneficiary?A beneficiary is a person or entity, such as a trust or nonprofit, that you designate to receive the assets in your financial accounts when you die. For example, life insurance policies and retirement accounts allow you to designate beneficiaries.When deciding who you should designate as a beneficiary, consider family members, friends or business entities. Note that the account and subsequent funds are treated differently depending on your relationship with the beneficiary. For example, if you choose your spouse as an IRA beneficiary, they can move the assets into their own IRA account after your death. Non-spouse beneficiaries do not have this option.The importance of choosing a beneficiaryChoosing a beneficiary is a simple way to indicate who should inherit the funds or assets in your accounts without going through the steps of creating a will or estate document. However, be aware that the beneficiary/beneficiaries you name for each of your retirement plans, annuities, life insurance policies and other assets will receive the proceeds from that account even if your will outlines different instructions. To help ensure everything is in order, you should regularly review all your beneficiary designations with a financial advisor or estate planning attorney. Primary beneficiaries, secondary beneficiaries, and contingent beneficiaries whats the difference?Its important to understand the different beneficiary types: primary, secondary and contingent beneficiaries.Primary beneficiaries are your first choice to receive your retirement accounts or other benefits. If youre married, this will typically be your spouse.A secondary beneficiary and a contingent beneficiary are essentially the same. These beneficiaries will be named and awarded your retirement benefits and assets if your primary beneficiary doesnt survive you or disclaims the assets.Designate both primary and secondary beneficiaries and take special measures if youre assigning minorsIf your named beneficiary doesnt survive you, your funds could revert to your estate, resulting in probate court. To help prevent gaps in the beneficiary designation process and properly allocate all of your accounts, you should name both primary and secondary beneficiaries.Similarly, if youre designating children as your beneficiaries, your advisor or estate planning attorney can help you create a plan to ensure that your minor beneficiaries receive the funds when theyre supposed towithout unnecessary legal costs in the future. Who (and what) can you designate as a beneficiary and what are the outcomes?Your spouseA spousal beneficiary has more flexibility to delay taxed distributions and move assets to their own account. For 401(k) or pension plans, your spouse must be the primary beneficiary unless spousal consent is given to the naming of another beneficiary.Your children or other family members (excluding your spouse)You can assign someone else such as a child or other family member but it will require your spouse to sign away rights to be the primary beneficiary. Keep in mind that assigning a non-spouse as your beneficiary will not come with the same tax benefits and rollover options.A trustDesignating a trust as beneficiary provides control over how assets are distributed. But there can be tax implications and other considerations. Always seek advice from an experienced tax professional before choosing a trust as a retirement plan or IRA beneficiary.A charityChoosing a charity as a beneficiary is a simple process for those wanting to give back after they pass away. However, keep in mind that mixing charity and non-charity beneficiaries may change the options available to the non-charity beneficiaries of a retirement plan if the charity is not paid out in a timely fashion.Naming multiple beneficiariesHaving a hard time choosing between multiple beneficiaries? Fortunately, you can name more than one. If doing so, you will specify the amounts you want to allocate to each beneficiary. You can also choose to designate different beneficiaries within different accounts.In addition to naming beneficiaries in a will, its important that you record your beneficiary choices in each of your financial accounts. Note that if there is a discrepancy, the beneficiaries you note in those accounts will supersede who you designate in your will.Naming your estate as a beneficiaryNaming your estate as a beneficiary can feel more straightforward than naming specific beneficiaries for your major assets, but it has significant downsides.If you name your estate as a beneficiary, the assets in your estate must pass through probate before distribution. This could take a year or longer. Additionally, when an estate is in probate, distribution of the assets cant occur until creditors claims against the estate are resolved.However, if your named beneficiaries are individuals, trusts or charities, your assets will typically go to them directly, bypassing probate and creditors.Choose both primary and secondary beneficiariesKeep taxes in mind when choosing beneficiariesDon't choose your estate as a beneficiaryMinors require special considerations Retirement account, annuities, and life insurance policiesNot all accounts and assets are equal with regard to beneficiary designations. The responsibilities and outcomes for beneficiaries can be very different, depending on the type of account or asset:AnnuitiesAny annuity beneficiary can cash in the remaining funds left in an annuity after the owner passes away.Spouses can either cash in an annuity or keep it, with the original contract terms still in force.Non-spouse beneficiaries are required to take distributions.Annuity beneficiaries must pay income tax on the gains in the annuitythe difference between the principal paid into the annuity and the value of the annuity at the time the owner dies.Retirement accountsRetirement account assets are taxed when distributed from the plan to beneficiaries.*Spousal beneficiaries can roll assets over into a new or existing retirement account.Non-spouse beneficiaries are required to take distributions.Federal law requires that a spouse must be the primary beneficiary of a 401(k) account or pension account unless the spouse waives their right in writing.Life insurance policiesBeneficiaries receive the policy proceeds income tax-free.In certain states, a spouse may be legally entitled to life insurance benefits.Beneficiaries are paid in lump sums or in payments as requested by the account holder. *This does not apply to Roth IRAs and Roth 401(k) accounts. Because the initial account owner funded them with post-tax dollars, these accounts are not taxable for beneficiaries and earnings are tax free as well if the Roth account has been in place for 5 years. IRA stretch strategy in estate plansAn IRA stretch strategy allows an IRA beneficiary to take required minimum distributions (RMDs) from an inherited IRA after the owners death.For deaths prior to Jan. 1, 2020, non-spouse beneficiaries such as adult children who inherited retirement accounts can take required minimum distributions over their lifetime.Prior to the SECURE Act, beneficiaries who inherited retirement accounts (such as a traditional or Roth IRA) could take the RMDs over their lifetime. The SECURE Act changes that financial strategy for most non-spouse beneficiaries who inherit their retirement account on or after Jan. 1, 2020. Now, those beneficiaries must take the account proceeds and pay the corresponding taxes within 10 years of inheriting the account. This can be done with any number of distributions as long as the entire account is distributed by the end of the year that contains the 10th anniversary of the owners death.While the timeframe for using an IRA stretch is now shorter, this strategy can still help you pass substantial assets to your children or other family members. Additionally, some beneficiaries can still stretch their inherited IRAs over their lifetime, including:Spouse beneficiaries (spouse beneficiaries usually rollover to their own IRA).Non-spouse beneficiaries with disabilities or chronic illnesses.Non-spouse beneficiaries who are no more than 10 years younger than the IRA owner.Minor children of the IRA owner (up to the age of majority). A financial advisor can help you with your beneficiary designationDeciding how to pick beneficiaries for your retirement and other financial accounts is important. Ask anAmeriprise financial advisorto review your accounts and beneficiaries so you can feel more confident about the legacy youre leaving.