Ex-NHL player arrested in Boca Raton for allegedly defrauding Medicaid

Four Palm Beach County residents, including a former National Hockey League player, were among several South Florida residents arrested Tuesday on charges of defrauding Medicaid of millions of dollars, according to a U.S. Department of Justice report.

Sergei Berezin, who played for five NHL teams from 1996 to 2003; his wife, Lyudmila Ustakova; and Maryna Makhnyeva, all of Boca Raton, and Alexey Mesiatsev of Wellington were in the Palm Beach County Jail on Wednesday.

Read more @ PalmBeachPost

Estate Planning Tips For Your Blended Family

When it comes to estate planning for a blended family, the concept of “yours, mine and ours” can complicate the process to the point that family dynamics become permanently strained.

These days, many families include children, stepchildren, former spouses and in-laws. According to the Pew Research Center, the number of remarriages has been steadily rising over the past few decades. In 2013, 40 percent of unions included at least one spouse who had already walked down the aisle. In 20 percent of remarriages, both spouses had previously said “I do.”

Such situations require advance wealth planning with clear goals. “The biggest issue in blended families is, ‘where does my money go when I die?’” said Cyndy Ranzau, associate wealth strategy consultant with RBC Wealth Management.

Challenges Of Retying The Knot

In many cases, remarried couples want to ensure the surviving spouse will be cared for in the event one partner passes away—with the children from their previous marriages becoming the ultimate beneficiaries of the assets their parents brought to the union. The challenge comes from designing a plan that keeps all parties satisfied. The first step is to agree on a course of action.

Van Pate, a wealth strategies consultant with RBC Wealth Management, said he typically draws a flowchart to demonstrate the ultimate path of the spouses’ assets no matter who passes away first. Once a couple determines the best path and how much control they want the surviving spouse to exercise, they can move forward with executing the plan.

Here are some tips for planning your estate while maintaining family harmony:

It’s All In A Name

“One of the biggest mistakes people make when determining who will inherit their assets is in the beneficiary designations on retirement accounts and insurance policies,” said Ranzau. “The best-laid estate plan can be destroyed by an incorrect beneficiary designation.”

That’s because beneficiary designations trump everything else, Pate noted. Regardless of what a will or trust says, the asset goes directly to the primary beneficiary or beneficiaries. For example, if your will states that a particular asset, such as an IRA, is to go to your current spouse, but you’ve named your child as primary beneficiary, the IRA will go to your child.

Family dynamics can change in a hurry if a remarried spouse neglects to remove the former spouse as primary beneficiary on a document. “That makes all types of people unhappy, except maybe the former spouse,” he said.

Another error occurs when a spouse names the current spouse as primary beneficiary and the children as equal contingent beneficiaries, believing that everyone will get something. In truth, the primary beneficiary receives all the assets in this situation and will be free to act as he or she wishes.

“If a spouse is a primary beneficiary on an IRA, it becomes his or her IRA when the owner dies,” Ranzau said. In this case, contingent beneficiaries don’t matter, she added, because the IRA will go to the spouse alone.

That’s not to say contingent, or secondary, beneficiaries are not important. If the primary beneficiary passes away at the same time as you, and there is no contingent beneficiary named, the asset will pass to your estate and be distributed per the terms of your will. If you don’t have a will, the assets will pass to your next of kin.

One way to avoid a potential problem is to name each beneficiary as primary and designate the percentage of the asset each will receive. “It is possible to have multiple primary beneficiaries,” Pate noted.

A Matter Of Trust

Remarried couples often use a trust to spell out the distribution of assets. The trust—either revocable or irrevocable, depending on their situation and amount of assets—does not preclude the will, however. A will is still needed to ensure that assets not titled in the name of the trust are transferred according to the decedent’s wishes.

Pate described a common trust scenario for remarried couples: A husband sets up a living trust and names himself the trustee during his lifetime, with the intent that the surviving spouse will receive income for life and the remainder of the trust will go to his children after her passing.

While it may seem like a simple solution, the problem arises when naming the successor trustee, who will take control when the husband passes. Many times, the husband names the surviving spouse or one of the children as the trustee without really considering the consequences, Pate said.

“If you think about it, the wife and the children have conflicting interests,” he added. “The wife might invest in bonds for income and if she lives another 20 years, the investments lose value, leaving the kids with very little. But if one of the kids is successor trustee, he or she could invest in pure growth funds, leaving the wife with little to no available income.” For that reason, he said a professional third-party trustee without a personal interest in the family is often the best option.

Pate said another challenge with trusts occurs if a spouse sets up income for the surviving spouse with the remainder going to the children and then dies prematurely. In this scenario, the children could have a long wait before receiving their inheritance. “Where this really becomes an issue is where one spouse is not much older than the children,” he noted.

Pate suggested couples implement a strategy that leaves an immediate inheritance to the children, perhaps naming them as primary beneficiaries on an insurance policy so they receive some money upon the first spouse’s passing.

Prenuptial Wedded Bliss

The mechanics of designing an estate plan are bound to run more smoothly if a couple makes decisions about their assets and puts them on paper before tying the knot. A prenuptial agreement will start a couple on the right road to an understanding, though it doesn’t replace a written estate plan, Pate noted.

Because the prenuptial agreement is a contract, be sure the terms of the will and/or living will are in line with the intentions spelled out in the prenuptial agreement. Otherwise, you could set up a potential court battle for your heirs.

If the intent going into the marriage is to keep assets separate so that each spouse can pass an inheritance to their own children, then be sure to maintain that separation, Pate said.

“Once you start blending assets in accounts, then the other spouse has a claim,” he added.

If one spouse decides to claim “elective share” (a percentage of the estate), the claim is only against marital assets, said Ranzau. Non-marital assets and separate property are considered separate and not subject to the elective share. The amount of elective share is determined by state law, but typically is between one-third and half of the estate.

To Your Health

Aside from finances, Ranzau said remarried couples should discuss health care powers of attorney and living wills. If the new spouse is the designated agent in the event one spouse becomes incapacitated, the children need to know.

In blended families, which are typically more complex because of the additional players, “it becomes more important to have the conversation about incapacitation,” she added.

Not All Surprises Are Fun

Drafting an estate plan by no means ensures a smoothly blended family. That’s why it’s critical to maintain meaningful and ongoing communication among all concerned parties.

“I’ve seen a lot of families set up family meetings to inform everyone what’s expected of them,” said Ranzau.

Regardless of the chosen method of communication, a well-thought-out estate plan will have a better chance of a seamless transition, she said. “It’s the surprise that gets you every time. If there are no surprises, everything generally goes smoothly.”

In fact, communication is probably the secret weapon to ensuring a blended family maintains harmony, said Pate. “I like to think conversations happen not only before the marriage, but all the way through.”

Source @ Forbes

Don't Let Emotion Sabotage Your Estate Plan

For years, Patrick Severo didn’t understand why people were so reluctant to talk about estate planning.

Then the 55-year-old father of three went through the process himself.

“Speaking about death and what’s going to happen once you’re gone are unpleasant topics that people just naturally want to avoid,” says Severo, senior vice president and financial advisor at RBC Wealth Management. “But the sooner you begin thinking about it, the better.”

While estate planning can be a stressful and emotionally-charged topic, it can also be a lengthy process. Severo points out establishing a detailed plan can take anywhere from six months to two years —so it’s never too soon to get started.

Severo discusses what you can do to push past the emotional aspects of estate planning to make sure your surviving family members can successfully deal with issues that may arise after you pass away.

Transparency is Key

To help the people you care about cope with the financial, administrative and familial consequences of your eventual passing, be transparent about what they can expect from your estate.

Severo is all too familiar with the repercussions of not properly informing individuals about how you intend to include them in your estate plan. Mismatched expectations can often cause bitterness that could have easily been avoided if the news wasn’t coming as such a surprise, he says. On the other hand, a person may be pleased to learn that a thrifty parent was leaving them with an unforeseen windfall.

For better or worse, an inheritance can be life-changing. It’s important to discuss it with your loved ones upfront, so they can be mentally, emotionally and financially prepared.

“You don’t even have to talk in specific numbers,” adds Severo. “Speaking in general terms can be helpful—any information is better than none.”

Talking about your estate plans with your loved ones can also help diffuse potentially difficult situations, like when one sibling is inheriting more than another. Severo explains there’s usually a reason for the disparity, such as one sibling who needs more financial help. Often the family members receiving less may not mind as long as they are forewarned.

“What creates charged situations most are surprises. Open dialogue will go a long way for the peaceful settlement of an estate,” he says.

Three-Year Plan

A good estate plan can easily become outdated or irrelevant if it sits on a shelf. Severo recommends a three-year time horizon for estate planning, including regular review of your trust to make sure it accurately reflects your current situation and your wishes. He recounts the story of one individual who didn’t update his estate—leaving assets to his former wife rather than his new spouse.

“A lot can change in three years; executors can move or pass away, or you may have had a falling out with someone. You have to make sure your estate plan reflects your current wishes,” he says.

Money Sense

When an estate plan includes a significant dispersal of money, it can lead to stress or conflict among the beneficiaries. Education is one of the best ways to avoid overwhelming heirs in line to receive large inheritances and guarantee their long-term financial welfare.

It can be all too easy for beneficiaries without any financial acumen to make poor investments. Severo explains the best way to avoid this pitfall is to start teaching your children from an early age to be smart with money.

When a relative passed down a modest sum to Severo’s children, he encouraged them to research and choose four or five stocks they would invest the funds in. Not only were Severo’s children excited about the project, they also learned a great deal about money management.

Being transparent about what a beneficiary may receive from an estate, and providing education about how to best manage the endowed assets, can go a long way to ensuring that the dispersal of your estate goes smoothly—and your wishes are successfully fulfilled.

Source: Forbes
 

3 Essential Retirement Planning Tips For Women

A number of gender barriers have been broken down over the years, but at least one still remains: Women continue to save less for retirement than men.

According to a 2013 report from Aon Hewitt, women contribute an average of 6.9 percent of their pay to retirement accounts, compared to 7.6 percent for men. Investment research firm Hearts & Wallets also reported that 80 percent of spouses who were not involved in retirement-related decision-making were women.

Historically, women may have taken a back seat when it comes to making investment decisions, but there’s more to the retirement savings gap than gender politics, said Ann Marie Etergino, a managing director and financial advisor with RBC Wealth Management.

Longer Lives

Longevity risk is a major factor, Etergino said. On average, women live about five years longer than men do, according to the Centers for Disease Control and Prevention. Naturally, their money has to last longer.

However, most women underestimate just how long they’ll live, said Jennifer Reynolds, president and CEO of Women in Capital Markets, a Toronto-based organization that advocates for women in the capital markets industry.

“Many women live into their 90s, but they only expected to live to their 70s,” she said. “They made their money decisions years and years ago, but it’s a different reality today.”

More Caregiving On Less Income

As far as gender equality has come, women still make just 77 cents for every dollar a man earns, according to recent data from the White House. Of course, if you make less, you’ll save less, said Sarah Kaplan, associate professor of strategic management at Toronto’s Rotman School of Management.

Women also tend to stay home more than men—often to raise children and, increasingly, to care for aging parents—and that has an impact on how much they earn, said Maureen Kerrigan, senior vice president,  RBC financial advisor and president-elect of the company’s Women’s Association of Financial Advisors employee group.

According to the Family Caregiver Alliance, 66 percent of caregivers are women, and female caregivers spend 50 percent more time providing care than male caregivers.

“We may step off the work treadmill for a little bit,” Kerrigan said. “If we end up being caregivers and that requires them to take time off work, then we’ll earn even less.”

Risk-Averse Approach

Women are generally more risk-averse than men, said Etergino. Another Hearts & Wallets study found that female investors hold more cash than male investors. On average, they allocate 37 percent of their assets to bank savings, checking accounts or CDs—compared to men who allocate 25 percent. Men also have double the allocation to individual stock holdings compared to women.

“[Women] want stability of principal and there’s a cost that comes with a security like that,” said Etergino.

So what can women do to close the retirement savings gap?

1. Save Aggressively

Naturally, saving early is a good rule of thumb, but for many people it’s easier said than done. For women, there needs to be an increased sense of urgency, which can be hard to come by when you’re in your 20s, said Kerrigan.

That’s why she suggests using a company’s 401(k) plan. You simply set it up at work and never have to worry about it again. You don’t have to get worked up about retirement to spur saving since the payment is taken off your check automatically.

Those making a sizeable income will want to contribute as much as the company will match, said Kerrigan. Many high-earning women will reach the annual IRS limits on 401(k) contributions. When that happens, look at utilizing other savings accounts, such as a 457 plan, which is a company plan that has some additional tax benefits, she added.

It’s always a good idea for high-net-worth women with complicated financial needs to talk to an advisor, said Kerrigan. Ultimately, though, “women should explore all available retirement opportunities and seek advice to determine which is most advantageous,” she said.

2. Have A Long-Term Plan

It’s important to think long-term, said Etergino, and not just into the first few years of retirement. Women need to create a plan that extends well into their golden years.

Kaplan agreed. She knows it’s difficult for people in their 20s and 30s to think that far in advance, but people can’t rely on a spouse or even Social Security to get them through their longer lives. “We live in a society now where we have to think about these things,” she said.

Etergino has two suggestions for long-term saving. The first is that married women should keep an investment account in their own name. If a divorce should unfortunately occur, she will already have a nest egg built up.

This is important because studies show women experience a decline in wealth as they age. A study by Statistics Canada found that senior widowed women with the highest family incomes experienced a nearly 8 percent decline in their wealth five years after their spouse passed away.

The second is to never stop saving. “Women have to recognize that they’re going to live much longer than they anticipate,” Etergino said. “So the psyche early on has to be, ‘I’ll need to take care of this myself at some point, so I need to stay engaged both intellectually and through continuous contributions.’”

3. Don’t Forget Long-Term Care

Since women outlive men, many will have to manage their own long-term care. Those who don’t take this into account could derail an otherwise well-thought-out retirement saving plan.

Long-term care insurance is expensive and “it’s not getting any cheaper,” said Kerrigan. But it can be useful, especially if you can cover some health-related expenses yourself.

There are products you can buy over a three-to-five year time span, she said. If you pass away before using the long-term care insurance, then it may change into a life insurance policy that can get distributed to your beneficiaries.

Because of the costs of insurance, Etergino suggested that clients cover 50 percent of the health care costs themselves, and insure the other 50 percent.

While it will still take time before men and women are saving the same amount for retirement, it will happen, said Kerrigan. Why? Because women now have role models who save and invest.

“My mother never worked outside the home and when my father passed away, my mother didn’t know what to do,” said Kerrigan. “[Today], children see women earning money—and the impact that it has on their lives.”

Source: Forbes

5 Essential Life Documents For Common Law Couples

A trip down the aisle rewards couples with more than the glow of wedded bliss. They also enjoy a variety of legal and financial advantages that are not available to unmarried couples.

“There are roughly 1,100 benefits afforded to married couples involving all facets of life, from not having to testify against a spouse to various legal parental rules to estate-planning benefits,” said Cyndy Ranzau, associate wealth strategy consultant with RBC Wealth Management.

Because unmarried couples lack the financial and legal benefits of their married counterparts, they may want to be vigilant in ensuring the proper documentation is in place to protect their finances.

Here is a rundown of essential documents and tips for maximizing your wealth plan outside of marriage:

1. A Will And Living Trust

The marital deduction, allowing tax-free transfers of wealth to spouses, doesn’t apply to unmarried couples, so planning is essential.

A will can ensure assets don’t automatically go to your surviving family members, which is what would happen if you were to pass away intestate.

“There is no way to get your assets to anyone other than next of kin unless you have a will,” said Van Pate, wealth strategy consultant with RBC Wealth Management.

To make your intent even more solid, consider getting a living trust, Ranzau advised. “A living trust is harder to contest than a will, because typically once a will is signed, you never look at it again.”

A trust, on the other hand, requires some effort to transfer and retitle assets in the name of the trust, signifying deliberate intent, said Pate. “If you prepare a trust in 2015 and live with it 10 to 15 years, it’s harder for a relative to come in after your death and say you were off your rocker when you signed it.”

Even if you have a living trust, you need a will for certain assets that remain outside the trust and to name guardians for minor children. In both the will and a trust, you can make your wishes clear about the distribution of assets after your death.

2. Power Of Attorney

There are different types of designated authorities to consider when it comes to your financial life, depending on how much power you want your partner to have.

A general power of attorney allows the person holding the power to handle all legal matters—including financial transactions—on behalf of the person who grants it. There can be a specified time limit or it can “spring” into effect under specific circumstances. This is called a springing durable power of attorney.

A general power of attorney “is written to cover the waterfront and allow the power-holder to act in any number of situations,” Pate said.

A financial power of attorney limits the holder to financial transactions. This designation is not necessary if there is a general power of attorney in place.

A power of attorney can be written as durable, meaning that its duration will be extended in the event you become incapacitated. “If you think about it, that’s when you need it the most,” said Pate. “If a general power of attorney is not written as durable, then the authority [to act on behalf of the other] ceases at the worst possible time.”

3. Health Care Proxy And Living Will

Just as with a financial or general power of attorney, one written to cover health care allows a specified person to make decisions regarding care on your behalf if you are unable to make them yourself. Sometimes this is referred to as a health care proxy.

In addition, you may consider drafting a living will that directs medical professionals on any end-of-life treatment. In some states, both the health care power of attorney and living will are combined into one document called an advance health care directive.

Consider sharing these documents with loved ones so everyone who might be involved is aware of your wishes and the identity of your decision-maker.

Documents vary by state, so be sure to follow the requirements where you live, said Pate. “Generally, they require witnesses, but not necessarily a notarized signature,” he added. Finally, Pate recommended keeping a copy of the document handy for emergencies.

4. Insurance Policies And Retirement Accounts

It’s all about the named beneficiaries with these documents, because the people you designate on the document will be the ones who receive the benefit, regardless of what your will or living trust states.

Common assets with named beneficiaries include insurance policies and retirement accounts, including IRAs, 401(k)s and 403(b)s. Also, some people title bank accounts as “payable on death” or “transferable on death.” Those accounts will go directly to the designated person named on the account when you pass away.

Finally, don’t forget contingent beneficiaries. If the person you name as primary beneficiary dies before you and you have named a contingent beneficiary, the asset will pass to your estate and be distributed per the terms of the will. If there is no will, the assets will pass to the next of kin.

Try to make sure the named beneficiaries are in line with your overall estate plan, Pate advised.

5. Application For Federal And State Benefits

Civil or common-law marriages are not recognized by the federal government for any benefits, said Pate. State laws vary, so you may want to do research to find out if you’re able to file a joint state tax return.

Laws for same-sex marriages also vary by state, with 37 states recognizing them, Ranzau said, adding that in late June the Supreme Court is scheduled to rule on whether they will be legal in every state. That could change the picture for spousal benefits at the federal level.

In the meantime, partners in a same-sex marriage interested in Social Security spousal benefits can go on the Social Security website, said Pate, and click on the link for frequently asked questions for such unions. “In each of the answers, it basically says they are processing some applications and if you feel you qualify, you should apply. But it doesn’t guarantee anything.”

Couples may automatically receive more benefits when they tie the knot.

The bottom line for unmarried couples is they can maximize their control by drafting or signing the proper documents to ensure each partner is protected—both legally and financially.

Source: Forbes
 

Most Business Owners Do Not Have Up-To-Date Estate Plans, But They Should

As long as there are estate taxes, as long as there are intergenerational considerations, and as long as there are interconnected business interests, there will be a need for estate planning. Business owners are looking to achieve a certain agenda and do so in as tax-efficient a manner as possible. However, it’s important to keep in mind that taxes are not the tail that should wag the dog.

According to Anthony J. Carone, managing member of the specialty law firm Carone & Associates, “Basic estate planning employing such strategies and financial products as credit-shelter trusts and traditional life insurance is far from complicated and sufficient for many business owners. However, for more complicated situations there are many more sophisticated strategies available including self-canceling installment notes, granter retained annuity trusts, and remainder purchase marital trusts.”

Based on a survey of 513 business owners, a little more than seven out of ten business owners have an estate plan which is defined as having, at a minimum a will. Among the 138 business owners without an estate plan, half of them have not done the planning because the topic is very hard to deal with. “There are many reasons, “ explains Carone, “From facing the prospect of death to needing to make difficult decisions concerning the disposition of assets including the future fate of the business, estate planning can very well be arduous and emotionally nerve-wracking.”

About 30 percent of the business owners surveyed said they didn’t have an estate plan because there wasn’t a need. “Although there might not be estate tax concerns, it’s usually advisable that everyone have an estate plan, even if it’s only a will,” explains Carlo Scissura, president of the Brooklyn Chamber of Commerce and author of Maximizing Personal Wealth: An Advanced Planning Primer for Successful Business Owners, “This is especially the case for business owners as their company is often an integral and considerable part of their estate.”

For those business owners surveyed who had an estate plan, most of them are over five years old. Almost a quarter of the estate plans are two to five years old, with the remaining 12 percent less than two years old. Frank Seneco, president of Seneco & Associates, an advanced planning boutique says, “Because of changes in the tax laws, estate plans more than five years old – most probably more than a few years old – are likely to not be up-to-date and fail to take maximum advantage of available opportunities.”

What’s even more telling is that more than half of these business owners report that they’re wealthier since they created their estate plans. More importantly, nearly seven out of ten reported that since they created their estate plans they’ve experience life changing events. These events can be anything from divorce to the birth of children or grandchildren to the death of prospective guardians, and so forth.

What this tells us is that, from changes in the tax laws to changes in the lives and wealth of the business owners, their estate plans are likely outdated. In order to attain the greatest benefits from estate planning, business owners need to stay on top of the matter and revise your estate plans when appropriate.

Source: Forbes

 

6 Essential Estate Planning Steps For You And Your Parents

We’d been married for more than 30 years and were very close with Terrie’s mother “Jean,” spending every holiday and Sunday together (her name has been changed here for privacy reasons). But our happiness turned into a nightmare in the span of just a few weeks.

We think our story about protecting Jean from a financial predator is worth knowing for anyone with an elderly parent. And based on our harrowing ordeal, we recommend six steps (below) to keep yourself and your family safe and financially sound.

Here’s our story:

A Car Crash and Then a Financial Predator

First, Jean was in a car accident and suffered a severe traumatic brain injury, which severely impacted her short-term memory, leaving her frustrated and vulnerable. We then became her primary caregivers and nursed her through a difficult recovery.

In the months that followed, “Billy,” Jean’s long-time boyfriend who had avoided meeting us, took advantage of Jean’s disability and confusion to convince her that Terrie was stealing her money. He managed to also persuade a police officer (with no evidence) as well as a judge — who issued a restraining order without a shred of proof.

In addition, home care workers allegedly colluded with Billy, helping to make arrangements for a one-day visit to Las Vegas, so Billy and Jean could get married there.

As a result, our lives were turned into a roller coaster ride as we were thrust into a four-year legal battle to save Jean from a financial predator and a justice system gone wrong.

What Her Mom Did Right

Fortunately, Jean and her first husband had put their estate plans in place through a family trust, which made it possible for Terrie to successfully fight for a conservatorship for her mother. But not before Billy closed all of Jeans’ bank accounts, opened new joint accounts, cashed some bonds and took Jean’s name off one of the accounts.

Though still estranged from Jean, we have made certain that Billy can’t drain Jean’s financial assets through the trust — nor will he inherit them — assuring that Jean can live out her life being financially comfortable.

6 Estate Planning Steps for Families

Based on our experience, we think others should take these six steps to ensure their family knows their wishes and plans when they die or become mentally or physically incapacitated:

1. Organize your emergency information. This is more than a list of doctors and phone numbers. It should include specifics about your digital assets, bank accounts, storage rental, lawyers and financial advisers. Doing so will save your loved ones additional stress during an already stressful time and can be critical for quick decision-making.

2. Draw up a will and maybe trusts, too. Meet with an estate attorney who can give you guidance and create the proper documents. Make sure everything is as clear as possible and easily understood so there will be no questions about what you really meant.

3. Designate a durable power of attorney. This allows the person you designate to make legal decisions if you’re incapacitated. Provide as much detail as possible, including safe deposit boxes and passwords to online accounts. Without power of attorney, the courts or a third-party designated by the courts will wind up making legal decisions.

4. Prepare an advance medical directive. This document will save family members from having to make end-of-life decisions for you.

5. Open frank conversations with your parents about their financial affairs sooner rather than later. “Don’t wait until they have an injury, get sick or you notice that they shouldn’t be driving anymore,” says Terrie.

6. Tell your grown children your plans. They probably assume you have been smart with your money. Prove them right. Then teach them to put their affairs in order, too.

A Final Piece of Advice

Putting your affairs in order is not about death. It’s about making sure things get done your way and the right way. It is one of the most important financial and lifestyle decisions of your life. It’s about writing the last chapter of your amazing legacy.

Source: Forbes