Month: February 2024

Are You a Caregiver? What You Need to Know About Estate Planning

caregiver

Are You a Caregiver? What You Need to Know About Estate Planning

(Editor’s note: This article will deal primarily with caregiving for the elderly, particularly as it relates to family members providing for daily care and helping with estate planning concerns).

Along with the many other day-to-day duties of a caregiver, attending to estate planning for those they look after can help give peace-of-mind for all concerned.

Quite often caregivers are the same family members who make sure the parents (trustees) have an estate plan, as well as preparing contingency planning for health care.  Further, it is important to complete estate planning while the trustees still have the capacity to do so.  This can help ensure that the trustee’s wishes are respected and their affairs will be managed in the best way for their needs.

So, it is important for family caregivers to know what should be included in an effective estate plan, in particular, as it impacts themselves and the person for which they are providing care.  The following key components should be evaluated and discussed with an estate planning attorney:

  • Will - A will is a legal document detailing what an individual wants to happen after they die. This includes their final wishes regarding their remains as well as how they want their money, assets, and property to be distributed.
  • Living Trust - Much like a will, a living or revocable trust also documents how you want your affairs handled after you pass away. The major difference between a will and a living trust is that living trusts do not require probate. Additionally, a living trust will take effect as soon as it is created.
  • Advance Health Care Directive – This allows a person to dictate how they wish to be cared for in a life-or-death situation. It lets your physician, family, and friends know your health care preferences, including the types of special treatment you want or don’t want at the end of life, your desire for diagnostic testing, surgical procedures, cardiopulmonary resuscitation and organ donation.
  • Power of Attorney (POA) - This document that allows you to appoint someone to manage your money, property, and medical decisions if you become unable to do so yourself. There are several types of POAs for different situations, so always speak to a lawyer to determine the best option for your situation. 

What if the caregiver is giving up their livelihood or lifestyle?

Family caregivers often devote a great deal of their lives to caring for a loved one, giving up their other life interests and even stopping working.  Quite often, the caregiver is also a beneficiary, so it is common for these contributions to be acknowledged through compensation while providing the care and/or a special allocation from the trust assets (which sometime involves gifting the residence).  This should be explained to other relatives while your loved one is still able to convey their wishes, as well as being clearly detailed in estate planning documents. 

How are long-term care costs handled? 

If you are the primary caregiver for a loved one and it is determined that a long-term care facility better suits their specific needs, the estate plan can designate specific funds from the estate to cover those costs.  Of course, this possibility should be addressed in advance while the trustee has the capacity to work with legal counsel in preparing the estate plan. 

There are many other estate planning-related concerns that caregivers may have, such as: 

  • What are my legal responsibilities?
  • How do I interact with the executor?
  • If something happens to me, who will take over my role?
  • What if the loved one has dementia?
  • If the loved one dies, what do I need to do?
  • Who will take care of the possessions?

Talk with an experienced estate planning attorney about these and other concerns.

Decades of Experience Working with Caregivers and Trustees

The role of a caregiver in today’s world is increasingly important, especially since many elderly people prefer to stay at home instead of moving to a senior care facility.  As can be seen, there are many issues and questions to be addressed in order for a caregiver to clearly understand and fulfill his or her role.  Further, attending to these items can be crucial in heading off family conflicts.

It is important to document one’s wishes before it’s too late, so whether you are the trustee or a family caregiver,  we invite you to contact Mortensen & Reinheimer, PC at (714) 384-6053 to make an appointment, or use our online contact form. Our website is http://www.ocestateplanning.net.

Tamsen-Reinheimer_150x100

About the author:
Tamsen R. Reinheimer, Attorney, is a Certified Specialist in Estate Planning, Trust & Probate Law (The State Bar of California Board of Legal Specialization). She has significant experience in all aspects of estate planning, trust administration, and probate. Contact Tamsen at tamsen@ocestateplanning.net.

“Leap Year for Your Best Look”

Leap Year Specials on 4 Popular Procedures

ONLY 2 WEEKS LEFT FOR 30-DAY SPECIAL!

2024 is a special year because it is a leap year, a once-in-4-years event.  In celebration of leap year, we are offering a 30-day special on 4 of our most popular facial rejuvenation procedures:

  • BOTOX® 
  • DAXXIFY® 
  • RHA® Collection, the “Designer Filler”
  • Threadlifts

5th Option! As an added bonus, we are including the new injectable SkinViveTM from Allergan, as part of this 30-day special.  SkinViveTM is an injectable gel to improve skin smoothness of the cheeks, “The first and only FDA approved hyaluronic microdroplet injectable in the US to improve skin smoothness of the cheeks, increase hydration, and provide a lasting glow.”

facial rejuvenation

Book Now to Fit Your Schedule!

We invite you to come explore your options for your best look.  Book now for your appointment – the special runs from Feb 29 through March 31st, so contact us now at 657.722.1400 to lock-in a time that is convenient for you.

To accommodate your schedule, Saturdays are also being offered in March!

We look forward to seeing you.

 

About Linda L. Zeineh, M.D., FACS

Dr. Zeineh is an active member of the American Society of Plastic Surgeons and the American Society for Aesthetic Plastic Surgery. She combines over 18 years of experience with cosmetic and reconstructive surgery in private practice with new technology and techniques in the care of her patients. Her first priority is the satisfaction and well-being of her patients, providing compassionate and personalized care.

A complete range of non-surgical and minimally invasive rejuvenation procedures are personally performed by Dr. Zeineh on her patients to achieve and maintain a youthful, refreshed, and natural appearance, including facial injections, skin tightening and facial/body contouring. Surgical procedures that Dr. Zeineh performs include: facial rejuvenation, body contouring, reconstructive and cosmetic breast surgery, and reconstructive surgery.

Recent Engagement:
Turnaround to Avoid Bankruptcy

which way to go

Why the client needed help:

In this engagement, a number of financial issues (i.e., incorrect revenue recognition, job costing, bad financial data, out-of-control overhead, etc.) had caused the company to find itself in a deep hole, heading towards bankruptcy – and the owner would also lose his house, which was bank collateral.

MyCFO was brought in to turn around the company and set it on a long-term course to profitability and success.

Our client, a construction contractor, had purchased a business which he subsequently found the previous owners had provided dubious sales and other financial data.  The company’s financial staff used different systems internally, thus producing inconsistent and inaccurate financial data.

Expenses were far beyond industry norms in certain categories, especially on overhead.  On the sales side, deposits for jobs were recognized as revenue, and eventually used to fund other customers’ projects; bother were severe errors that exacerbated problems.  It didn’t take long before a cash flow crisis arose and become increasingly severe.

Further, the prior company had a somewhat poor reputation, which required significant rebranding and related marketing expenditures.

A major issue was debt management.  The owner had taken out two loans, including a term loan to buy the business and a working capital line of credit.  Both were in violation of the loan agreements’ covenants and conditions.  The owner was on the verge of losing his house, which was provided as collateral with his continuing guaranty on the loans.

Further, due to the cash flow crisis, the owner had maxed out his American Express card.  The company’s largest vendor was also demanding payment on accounts payable that were far in arrears.

At the rate the business was going, it wouldn’t have been long until full collapse.

MyCFO’s work:

A critical item at the onset was bank negotiations, allowing for relaxed terms until the company got back on its feet, so that the working capital line could remain in place.

In addition, MyCFO negotiated acceptable payment terms with vendors, especially the largest, which allowed continued product procurement.

Detailed job costing systems were established.  This is a method of calculating the actual costs and revenues by “job,” allowing for profitability projections and reporting per job.

Expense controls were established.  To help our client manage them more effectively, MyCFO set up a “financial dashboard” which is a management tool that helps to track and analyze “key performance indicators (KPIs) to monitor financial health.  This allowed the client to track expenses, sales and profit, then make appropriate financial decisions.

Another investor was brought in to raise cash for working capital needs.  MyCFO negotiated terms and worked with an attorney to make certain the buy-in agreement was appropriate.

Results:

This engagement spanned about two and one-half years.  The first nine months were spent identifying and then resolving the key near-term issues, helping to keep the company afloat.  The next phase was building staff and systems for long-term success.  The last phase was transitioning MyCFO’s management to the company’s internal management and staff, so that the company could safely provide for itself over a prosperous future.

Need help?

Whether your business is in a dire financial position or simply wants to increase cash flow and profitability, MyCFO can help.  Contact us today!

Recent Engagement:
Turnaround to Avoid Bankruptcy

which way to go

Why the client needed help:

In this engagement, a number of financial issues (i.e., incorrect revenue recognition, job costing, bad financial data, out-of-control overhead, etc.) had caused the company to find itself in a deep hole, heading towards bankruptcy – and the owner would also lose his house, which was bank collateral.

MyCFO was brought in to turn around the company and set it on a long-term course to profitability and success.

Our client, a construction contractor, had purchased a business which he subsequently found the previous owners had provided dubious sales and other financial data.  The company’s financial staff used different systems internally, thus producing inconsistent and inaccurate financial data.

Expenses were far beyond industry norms in certain categories, especially on overhead.  On the sales side, deposits for jobs were recognized as revenue, and eventually used to fund other customers’ projects; bother were severe errors that exacerbated problems.  It didn’t take long before a cash flow crisis arose and become increasingly severe.

Further, the prior company had a somewhat poor reputation, which required significant rebranding and related marketing expenditures.

A major issue was debt management.  The owner had taken out two loans, including a term loan to buy the business and a working capital line of credit.  Both were in violation of the loan agreements’ covenants and conditions.  The owner was on the verge of losing his house, which was provided as collateral with his continuing guaranty on the loans.

Further, due to the cash flow crisis, the owner had maxed out his American Express card.  The company’s largest vendor was also demanding payment on accounts payable that were far in arrears.

At the rate the business was going, it wouldn’t have been long until full collapse.

MyCFO’s work:

A critical item at the onset was bank negotiations, allowing for relaxed terms until the company got back on its feet, so that the working capital line could remain in place.

In addition, MyCFO negotiated acceptable payment terms with vendors, especially the largest, which allowed continued product procurement.

Detailed job costing systems were established.  This is a method of calculating the actual costs and revenues by “job,” allowing for profitability projections and reporting per job.

Expense controls were established.  To help our client manage them more effectively, MyCFO set up a “financial dashboard” which is a management tool that helps to track and analyze “key performance indicators (KPIs) to monitor financial health.  This allowed the client to track expenses, sales and profit, then make appropriate financial decisions.

Another investor was brought in to raise cash for working capital needs.  MyCFO negotiated terms and worked with an attorney to make certain the buy-in agreement was appropriate.

Results:

This engagement spanned about two and one-half years.  The first nine months were spent identifying and then resolving the key near-term issues, helping to keep the company afloat.  The next phase was building staff and systems for long-term success.  The last phase was transitioning MyCFO’s management to the company’s internal management and staff, so that the company could safely provide for itself over a prosperous future.

Need help?

Whether your customer’s business is in a dire financial position or simply wants to increase cash flow and profitability, MyCFO can help.  Have your customer contact us today!

Recent Engagement:
Turnaround to Avoid Bankruptcy

which way to go

Why the client needed help:

In this engagement, a number of financial issues (i.e., incorrect revenue recognition, job costing, bad financial data, out-of-control overhead, etc.) had caused the company to find itself in a deep hole, heading towards bankruptcy – and the owner would also lose his house, which was bank collateral.

MyCFO was brought in to turn around the company and set it on a long-term course to profitability and success.

Our client, a construction contractor, had purchased a business which he subsequently found the previous owners had provided dubious sales and other financial data.  The company’s financial staff used different systems internally, thus producing inconsistent and inaccurate financial data.

Expenses were far beyond industry norms in certain categories, especially on overhead.  On the sales side, deposits for jobs were recognized as revenue, and eventually used to fund other customers’ projects; bother were severe errors that exacerbated problems.  It didn’t take long before a cash flow crisis arose and become increasingly severe.

Further, the prior company had a somewhat poor reputation, which required significant rebranding and related marketing expenditures.

A major issue was debt management.  The owner had taken out two loans, including a term loan to buy the business and a working capital line of credit.  Both were in violation of the loan agreements’ covenants and conditions.  The owner was on the verge of losing his house, which was provided as collateral with his continuing guaranty on the loans.

Further, due to the cash flow crisis, the owner had maxed out his American Express card.  The company’s largest vendor was also demanding payment on accounts payable that were far in arrears.

At the rate the business was going, it wouldn’t have been long until full collapse.

MyCFO’s work:

A critical item at the onset was bank negotiations, allowing for relaxed terms until the company got back on its feet, so that the working capital line could remain in place.

In addition, MyCFO negotiated acceptable payment terms with vendors, especially the largest, which allowed continued product procurement.

Detailed job costing systems were established.  This is a method of calculating the actual costs and revenues by “job,” allowing for profitability projections and reporting per job.

Expense controls were established.  To help our client manage them more effectively, MyCFO set up a “financial dashboard” which is a management tool that helps to track and analyze “key performance indicators (KPIs) to monitor financial health.  This allowed the client to track expenses, sales and profit, then make appropriate financial decisions.

Another investor was brought in to raise cash for working capital needs.  MyCFO negotiated terms and worked with an attorney to make certain the buy-in agreement was appropriate.

Results:

This engagement spanned about two and one-half years.  The first nine months were spent identifying and then resolving the key near-term issues, helping to keep the company afloat.  The next phase was building staff and systems for long-term success.  The last phase was transitioning MyCFO’s management to the company’s internal management and staff, so that the company could safely provide for itself over a prosperous future.

Need help?

Whether your business is in a dire financial position or simply wants to increase cash flow and profitability, MyCFO can help.  Contact us today!