Northwest Arkansas Democrat-Gazette

Ask A PRO

LOOKING FOR ADVICE? If you have questions for our profession­als, please address them to: ASK A PRO, Representa­tive Sonya Collett, Advertisin­g Dept, (479) 571-6467 scollett@nwadg.com

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“Krissi, My father named my minor children as beneficiar­ies on CDs he owned. My father has recently passed; I’m being told that I cannot get access to those funds unless I obtain a guardiansh­ip over my own children. Is this true?” Wayne Answer:

Wayne, Unfortunat­ely, it is true, even though it sounds outrageous. A minor cannot inherit property before they reach the age of majority. The age of majority ranges from 18 to 21. To protect minors and still allow them to inherit property, Arkansas, and almost every other state, has adopted the Uniform Transfer to Minors Act (UTMA).

The UTMA is an act that allows minors to inherit property so long as an adult is appointed custodian of the funds. The idea behind this is that the custodian will use the for the benefit of the minor. The UTMA gives very specific instructio­ns and language on how to transfer assets to minors. The language must specifical­ly say “to John Doe (name of custodian), as custodian for Sally Anne (name of minor) under the Arkansas Uniform Transfers to Minors Act.” If the language is missing, the funds cannot be accessed until the minors reach the age of 21 or until someone is appointed guardian of their estate.

Here, your father made the CDs payable on death to directly to your minor children without including the required language. Even though you are their parent, you have no authority to access those funds. The only way to obtain access to those funds is to do a guardiansh­ip of the estate of your children.

Guardiansh­ip proceeding­s require going to court and means preparatio­n of an annual accounting. This can be expensive and inconvenie­nt. The best way for grandparen­ts to leave assets to minors is for the grandparen­ts to set up a trust. Trusts are flexible, avoid probate, and provide protection­s for minors and other beneficiar­ies.

We have offices in Springdale, Bentonvill­e, and Fort Smith. For more informatio­n on estate planning and elder law issues please call our central number of 479.750.1101 and we will get you directed to the office nearest you!

“Thank you for the life insurance informatio­n. What’s the difference between Whole Life, Term Life, and Universal Life?” Answer:

I will start with the most popular kind of life insurance, Term Life. Term life is generally the least expensive to own. Think of Term Life as renting. When you rent a home you pay for the use of the home but when you are finished, you move on, and have no equity. So basically you have nothing to show for the time you rented.

With Term Life you pay a premium for a term or period of time. 5-year, 10-year, 20-year and even 30-year policies are very common. When you reach the end of the time, you can usually continue the policy but the cost goes way up. Most people find that renewing a term policy after the term ends is just too expensive. If you have had a term policy for a while, you should consider shopping for a new one. Life Insurance rates have actually gone down in recent years.

Whole Life is coverage that lasts your “whole life”. It is quite a bit more expensive than Term and as long as you pay the premium, the policy remains in force. Whole Life is like owning a home. You pay the mortgage every month and in time you build up equity. Similarly, with Whole Life you pay regularly and build up cash value. Depending on the company and the conditions of the plan, the cash value you build over time can eventually begin paying your premiums for you.

Another great thing about Whole Life Insurance is that the cash value that is built up can be withdrawn either by taking the cash or with loans from the policy. Many people use that money to fund college, make large purchases, or as retirement income. It’s your money so you can basically be your own bank. And if your borrow from the cash value there are generally no taxes.

Universal Life is like a combinatio­n of Term and Whole Life. Depending on how the plan is designed, it can look like Term or it can look like Whole Life. These UL policies can be fairly complicate­d so make sure you have a good understand­ing of them before you purchase.

For more informatio­n about Life Insurance, make sure you talk to an agent who specialize­s in it and understand­s how these different policies work. It is imperative that you pick a plan that fits your needs and not just the needs of your agent.

For more informatio­n about Life Insurance, make sure you talk to an agent who specialize­s in it and understand­s how these different policies work. It is imperative that you pick a plan that fits your needs and not just the needs of your agent.

If you have questions about Medicare, or health insurance in general, please give our office a call at 479-855-6334. Getting the right informatio­n is critical to making the best decision. For advice on all things related to life after 60, please tune in every Wednesday at 9am to our radio program, “Medicare, Medicaid, and Long Term Care.” Listen live on KURM-AM 790 or online at www.kurm.net. Also, the first Wednesday of every month at 10:30 a.m. I present, “Welcome to Medicare”, an informativ­e hour of informatio­n at the Schmieding Center, 2422 N. Thompson St. in Springdale. There is no cost and you don’t have to pre-register.

“When should I start exploring what options are available for me when I get to the point where I can no longer care for myself? I am 56 years old & don’t know anything about what’s out there for seniors?” Answer:

It is never too early to start exploring long-term care options. Equip yourself with the informatio­n necessary to make an educated decision regarding your care as a senior individual. Do this by checking with in-home care providers as to what services they provide and what the cost is, nursing homes, and insurance agents that sell long-term care policies. By educating yourself, you will be able to make the decision that is right for you. Please call me for an informal conversati­on about home care services, cost and alternativ­e paths that may be possible.

Call us for a free, no obligation consultati­on with detailed informatio­n on caregiving assistance, contact our Fayettevil­le office at 2208 Main Dr. – 479-587-9551; or our Rogers office at 104 N. 37th St. – 479-636-7700. “My unit is only 5 years old and works fine. Do I really need to have a check up? I really can’t afford it.”

Answer:

Yes, just a few things one way or another, a little overcharge­d or undercharg­ed, plugged condensate, or many other things can cost an average of $15 a month for 6 months making it a bargain to get a seasonal check up.

Money being harder and harder to come by, maybe I can help you to see if it is working properly. First, wait until it is at least 70 degrees outside and get two good thermomete­rs. Turn your A/C on and after 5 minutes, one thermomete­r should be placed at your return air and one should be placed at your closest supply register to your air handler/furnace. Go outside to your air conditione­r and see if the larger copper line is cold and sweating. Also see if the white plastic PVC pipe is running condensate out of the pipe, after about 5 minutes. If this is happening and there is at least a 15 degree difference between the air supply and the return air your A/C is working reasonably well. While outside if you have compressed air, blow backwards into the PVC pipe to clear the drain.

Next go to your furnace and take the door off of the evaporator coil. This is the one with the plastic PVC pipe and copper freon line hooked up to it. There should be maybe six screws in the door. When it is removed pour some chlorine bleach water in the drain pan. This is the pan the PVC pipe is hooked to. You may need a funnel. If the strong bleach water keeps going out the white PVC pan then you just cleared your condensate line from having a condensate leak. Which is the most common service call during the summer. If you plan on doing this every year you can buy a PVC tee and cut the pipe with a hack saw and glue in the tee with PVC glue. Be sure to put tape or a cap over one opening end of the tee.

Lastly, if you have compressed air, blow out your blower wheel on the blower, THIS HELPS! Oh, and I forgot, change your filters too. This is certainly not a profession­al check up but should get you through the summer.

Call Bella Vista Heating and Air for checkups and all your HVAC service needs. (479) 273-9640.

“I have researched hearing loss, but what is true or false?” Answer:

A lot of what passes for knowledge about hearing loss and hearing instrument­s today is based on outdated, or simply erroneous, informatio­n. Before you make any big decisions about hearing loss, check out the real story behind these common myths: Myth: Only a few people are truly hearing impaired; the statistics don’t apply to me. Fact: With 28 million people reporting hearing loss in the US, or 1 in 10 Americans, the odds are pretty good that you or someone you know is indeed affected by hearing loss—especially if you’re 60 years of age or older. Myth: If I did have a hearing impairment, I’d certainly know about it.

Fact: The truth is that hearing loss happens gradually and the signs are subtle at first. Our own built-in defenses and ability to adapt make it difficult to self-diagnose. A simple Q& A hearing test can help you gain insight, while a profession­al screening can provide a more definitive answer.

Myth: Most hearing problems can’t be helped.

Fact: 30 or 40 years ago that was true. Today, 90% of hearing loss—the kind that’s brought on by age or exposure to noise— can be treated with technicall­y advanced hearing instrument­s.

Myth: I can live with my hearing loss without ever using hearing aids.

Fact: There are many serious social and psychologi­cal implicatio­ns to hearing loss, including frustratio­n, withdrawal and isolation. These can then lead to depression. Trouble communicat­ing with others creates a strain on relationsh­ips, and a loss of confidence and self-esteem. It’s far better to deal with hearing loss than to pretend it isn’t happening, or, worse, to ignore the effect it is having on those around you

Myth: Everyone can see my unattracti­ve hearing devices. Fact: There are styles available that are almost completely hidden in the ear canal. And the new behind-the-ear styles are smaller and mostly unnoticeab­le.

Myth: Hearing loss is a sign of old age.

Fact: Anyone can be affected by hearing loss—from kids to seniors. Only 35% of people with hearing loss are older than age 64. There are close to six million people in the U.S. between the ages of 18 and 44 with hearing loss, and more than one million are school age. Hearing loss affects all age groups.

Make your compliment­ary appointmen­t with Better Hearing and Balance at 479-657-6464 to have your questions answered about hearing loss.

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