How to develop a plan for both crisis and stability for 2022

Planning for elder law attorneys often involves planning for crisis but does not need to be limited to this. While not all elder law practices involve planning for healthier times, ours does.

For crisis planning and strategies we consider estates and what happens when clients die or become disabled. We review alternatives for long term care and asset protection. We file guardianships. We consider the needs of disabled adult and minor children and how they can be met through the complicated health care system and decide whether trusts are needed or helpful to protect the disabled person and meet the needs of other family members. We guide families through difficult periods when a parent, spouse or other loved one is suffering from dementia, Parkinson’s or the aftermath of a stroke, cancer or heart attack.

This is not all. Plans can also be developed to enhance what you have and to set goals. Another important aspect of the job of an elder law attorney and of the plan can be to consider, in quieter times, what a client can do both to grow assets and to prepare for the future. It means developing a picture of the future and how you want to direct it for your benefit and for the people you care about. This is often one of the most satisfying parts of the job. The plan can be reviewed every year — ideally in the beginning of the year — as, for example, now.

FINANCES » One of the points you might take into account early is your investment strategy — is it too conservative, too aggressive, or just right for your needs. Do you have to plunge into your savings frequently to meet expenses or does your monthly income basically sat

isfy your needs? Sometimes this is more a cash flow issue than a matter of concern. The question is, considering both your long- and your shortterm goals, are you satisfied that your assets and income do now and will in the future adequately supply your needs.

GOALS » The beginning of the year can be an excellent time to review and update your goals. How much do you want to leave to your children? Do you want to give now or wait until they inherit? Consider also there are tax issues involved in gifting, especially if you are thinking of transferring highly appreciated assets. You need to review the options either way. How much do you want to set aside to provide for you and your spouse in the event of illness? You might have long term care insurance or another plan to deal with this.

Would you want to consider moving to a retirement community where maintenance is taken care of? The large house that was attractive to you when you were in your twenties and thirties might seem less enjoyable when you are making repairs and handling landscaping.

Do other goals include travel, education, and social involvement? Are those goals being met? How might you use what you have, regardless of your current financial situation to achieve some of those goals this year and into the future?

FOR SMALL BUSINESS OWNERS » One area of our economy often neglected in planning is the small business owner. If the business includes family, planning can often be difficult because of the emotions involved. A parent might want to leave the business to one child but be concerned how to balance that interest with inheritance by other family members. Also, different family members have different interests and goals themselves and different talents. The person you might want to inherit and continue the business might not want to be involved.

Regarding talents, the person who is ideal handling accounts, for example, might have no interest in marketing. For small business owners more so than most other groups, it may be necessary to plot “what if,” if you decide to pull back from its active handling. You also might consider merging with another business or selling your interest and you need guidance to predict the results.

Solutions sometimes can be found in gradual transfer of stock and in mutual agreements among family members. The answers are different for different businesses and different families.

So regardless of your circumstances, what do you do? You make reasonable assumptions based on information available at the time and then build them into your plan. If conditions change, you change the assumptions and keep on planning. Seek help when needed.

Janet Colliton, Colliton Elder Law Associates, PC, is a Certified Elder Law Attorney and limits her practice to elder law, life care and special needs planning, Medicaid, estate planning and estate administration and guardianships, She is located at 790 East Market St., Suite 250, West Chester, 610436-6674, colliton@ collitonlaw.com. She is also, with Jeffrey Jones, CSA, co-founder of Life Transition Services, LLC, a service for families with long term care needs.