In February Kerry Peck was honored to do a webinar presentation for the Illinois Department on Aging to discuss pressing issues within the aging community. With hundreds of participants tuned in, Kerry discussed capacity, advance directives and guardianship. 

In our continued partnership with the North Shore Senior Center, Kerry Peck addressed a staff meeting to provide staff with insight and a basic understanding of trusts. With a better understanding of this common estate planning tool, staff members at the North Shore Senior Center are better prepared to assist members of the community.

Peck Ritchey is honored to sponsor the family and caregiver learning series Power to Care. The series has a focus on community, family members and caregivers caring for individuals with cognitive changes wanting to expand their knowledge and skills. The 3-part series continues into March on the 7th and 14th at Summit of Uptown in Park Ridge. To register, click here: Power to Care Registration.

How can I bring up the need for estate planning to my parents?

We hear this every day from adult children who are looking out and trying to advocate for their parents. “Having the talk” with your parents about their finances and estate plan is a delicate subject. No one likes to discuss their own disabilities, their decline, or plan for their own death.

We suggest to start small and have a series of conversations as opposed to attempting to address all issues in one large and usually overwhelming meeting. The topic isn’t something you want to bring up at a holiday celebration, their birthday, or Father’s Day. It’s important to share with your father your own concerns about his health and finances. However, the focus at all times must be on what can I, or we as your children, do to ensure that our father lives without financial worries and that his wishes are observed and carried out.

Be patient and look for opportunities to bring up the subject. Perhaps consider discussing your own estate planning and ask for his advice. Ask him “what did you do?” You may want to tell him that you attended a seminar or you talked to your attorney about your plans and want to discuss recent changes. A third idea, is to approach the subject as generally as possible, you can bring up the upcoming election, and discuss that there may be some changes coming down the road affecting his estate plan, gifts he intends to make, and estate taxes.

Having a series of these low-pressure, non-confrontational conversations may help your dad start to open up. There may be some underlying reasons why your dad doesn’t want to”have the talk.” Again, make sure you listen and understand your dad’s concerns, which may include that he feels he doesn’t have enough assets, the cost of estate planning, or that the process is just too complicated.

How often should I review and/or update my beneficiary designations on my various insurance and IRA accounts?

It is important to review and update your beneficiary designations as you move through different stages of your life or have life changing events. The most common changes and events that we see are marriage, divorce, birth of a child, your children becoming adults, and, ultimately, death.

Keeping your designations up to date may help you to avoid unfortunate financial situations during your lifetime and legal disputes between your heirs following your passing. It is important to note that many insurance policies and IRAs have a default beneficiary if one is not selected. Therefore, if you do not update your policies, you run the risk of the decision having been made on your behalf, which may not reflect your actual wishes.

What is the difference between testamentary capacity and contractual capacity?

Testamentary capacity occurs when an individual is of sound mind in that they understand what document is being drafted, the assets owned, and who will be receiving said belongings upon their death. On the opposite side of the spectrum is contractual capacity. Contractual capacity is different than testamentary capacity in that it is a more rigorous standard to meet. For a person to have contractual capacity, they must comprehend the effects of said decision, including the potential consequences involved, as well as the benefits and other alternative possibilities. It is the capacity necessary to enter into a valid contract. An individual needs to meet the standard for testamentary capacity to draft a will. However, if they would like to draft a trust, contractual capacity will be needed.