2024 Election: Harris, Trump on Social Security and Medicare

Keeping track and making sense of government policies and presidential candidates’ promises can be daunting during any election year. This year is no exception. Consider Social Security and Medicare, two 2024 election issues that are top of mind for older Americans.

As with any election, the political landscape is always changing, and candidates’ views and promises may also shift. Even after a president is sworn in, their agenda may not work out as they had hoped or promised, since the president is one part of a much larger governing body. Yet leading up to Election Day, staying informed about the presidential nominees’ proposals and their records on various issues remains important to many voters.

Social Security

Social Security benefits are a crucial resource for America’s older population as well as people with disabilities. Millions of Americans rely on these funds to stay out of poverty. Research suggests that nearly 80 percent of Americans oppose reducing Social Security benefits in any way.

Kamala Harris

Vice President Kamala Harris’s campaign has stated that she wants to expand Social Security benefits for seniors and individuals with disabilities while ensuring the program’s long-term solvency. The Biden/Harris administration has also pledged to protect Social Security from cuts and opposed proposals to reduce benefits or raise the retirement age.

In 2019, Harris, then a senator, co-sponsored the Social Security Expansion Act with fellow Senator Bernie Sanders. The legislation proposed extending the Social Security payroll tax to incomes over $250,000 a year.

At the time, the income amount subject to payroll taxes capped out at $132,900. That means that no Social Security tax was withheld from income earned in excess of $132,900. By raising the amount to $250,000, more funds would be put into the Social Security fund.

Donald Trump

Former President Donald Trump’s campaign has likewise assured voters that he will protect Social Security, though he hasn’t provided details as to how he would do that while ensuring the program remains solvent.

For example, in late July, he stated that seniors should not have to face Social Security benefits taxes. (Currently, higher-income seniors pay federal income taxes on these benefits.) However, some policy experts say Trump would need to find another avenue of funding to keep the program solvent in the long term.

While he was president, Trump opposed efforts to reduce funding for Social Security programs.

Medicare

The main function of Medicare is to serve as a federal health insurance program for Americans who are 65 and older. The funds to support Medicare come from different sources, including payroll taxes as well as premiums paid by enrollees.

Kamala Harris

Harris has expressed support for expanding Medicare coverage to include dental, vision, and hearing care. Older adults often have to pay out of pocket for these areas of health care.

The Biden/Harris administration had proposed protecting Medicare for future generations by extracting more tax revenue from corporations and wealthier individuals instead of reducing benefits or raising costs for Medicare recipients.

In August, the Biden/Harris administration announced Medicare’s newly negotiated prescription drug prices. (In his role as Minnesota governor, Tim Walz has also supported reform for prescription drug pricing.) This is a first in Medicare’s history and is part of the Inflation Reduction Act.

Lower prices for 10 drugs will become effective in 2026. Each year after that, additional medications may become available at lower prices.

Donald Trump

Trump’s administration encouraged the expansion of Medicare Advantage plans, which are privately managed alternatives to traditional Medicare. Enrollment in these plans grew significantly during Trump’s term, with the administration promoting them as a way to provide more choice and flexibility to seniors.

Trump’s administration also sought to lower prescription drug prices through various executive actions. For example, the Most Favored Nation Model aimed to align the prices of drugs covered by Medicare with the lower prices paid by other developed countries. However, this rule faced legal challenges and was not fully implemented.

Despite some efforts to control costs, the Trump administration’s past budget proposals included cuts to Medicare, raising concerns among advocates for older Americans. These proposed cuts were primarily aimed at reducing federal spending but were met with significant opposition and were not fully realized.

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Elise Lampert, Esq.

Law Office of Elise Lampert

9465 Wilshire Blvd. | Suite 300 | Beverly Hills , CA 90212

Phone: (818) 905-0601 / Email: elise@elampertlaw.com

https://www.eliselampert.com

 

Proper Estate Planning Reduces Issues of Probate

Probate is a legal process that happens after someone dies. While probate can be complex, lengthy, and expensive, an estate planning attorney or probate attorney can help mitigate unwanted risks. They will be able to anticipate what might happen and prevent issues before they arise.

Sound estate planning can make the probate process run efficiently and smoothly. In turn, this helps to protect your estate’s value and legacy and preserves your family’s well-being.

The probate process includes the following:

• Validating the will of the person who died
• Identifying and performing an inventory of the property of the deceased person
• Getting property appraisals
• Paying valid outstanding debts and taxes
• Distributing the decedent’s remaining assets and property according to their will
• Applying state intestacy laws if the deceased person had no will

Avoiding Probate

Estate planning attorneys can structure your estate to minimize or avoid probate. Circumventing probate reduces legal fees for your surviving heirs. It can also give your family a certain level of privacy, as probate is part of the public record. In addition, it can help avoid estate tax, a tax that can significantly reduce the assets you would like your loved ones to inherit.

Some Popular Alternatives to Probate

A Revocable Living Trust

With a revocable living trust, you can transfer money and property to a trust that still allows you to have access to these assets during your lifetime. This probate-avoidance technique can protect property you own, including:

• Bank accounts
• Real estate
• Jewelry
• Art collections and heirlooms
• Vehicles

This trust functions like a will by leaving your property to your loved ones. With a revocable living trust, you can change the terms of your trust and the beneficiaries or revoke it while you are still alive. After your death, the property in the trust is in the control of your named successor trustee. They will then handle the distribution of your assets to inheritors according to the trust’s instructions – without involving probate court.

Life Insurance and Annuity Policies

Death benefits are paid directly to a designated beneficiary upon the death of the insured or annuitant and pass outside probate. And in some states (for example, Texas), death benefits are also generally exempt from creditor claims for either the insured or beneficiary.

Payable-on-Death (POD) or Transfer-on-Death (TOD) Accounts

Payable-on-death (POD) accounts or transfer-on-death (TOD) accounts are available in some states as a simple, no-cost strategy to keep money, even large sums, out of probate.

With POD accounts, you can designate a beneficiary (or beneficiaries) for all types of bank accounts via your financial institution’s POD paperwork process. A TOD transfer applies in the same way to stocks, bonds, and brokerage accounts. These accounts will not be accessible to the beneficiary while you are alive. You can designate beneficiaries on various account types, such as:

• Checking or savings accounts
• Certificates of deposit (CDs)
• Individual Retirement Accounts (IRAs) and 401(k)s
• Inheritable pension and veteran benefits
• Investment accounts

As the account owner, you can withdraw money, close the account, or name a different beneficiary at any time. There may be a short waiting period after the designator’s death before the bank or credit union releases funds to the beneficiaries, but probate is not a requirement.

Depending on the laws in your state, a POD account can also be a:

• Totten trust
• Tentative trust
• Informal trust
• Revocable bank account trust
• ITF, short for “in trust for”

In some cases, you may not be able to name an alternate beneficiary, so staying current with the paperwork that designates your choice is important. No matter what information is in your will, it can’t override a properly established beneficiary designation.

Streamlining the Probate Process

Many states have simplified probate procedures for smaller estates (those estates that are under a certain dollar valuation). Depending on your state’s rules, even if your estate exceeds the definition of a small estate, there may be an avenue available to exclude large chunks of assets to lower your estate’s size and value.

Many states don’t consider the value of certain properties when evaluating an estate. These property types may include real estate, real estate located in another state, and even motor vehicles. Additionally, many states won’t count the value of a property that doesn’t pass through probate. In essence, probate avoidance can pay double dividends after your death.

When trying to minimize an estate’s value to streamline the probate process, some states permit you to subtract any amounts owed on a property you don’t fully own. This can make a significant difference. Knowing your state’s definition of a small estate is crucial when creating probate-avoidance strategies. Staying under a certain threshold can simplify probate.

Work With Your Estate Planning Attorney

Your estate planning attorney will be able to help you identify the best path to protect your estate from the probate process. A sound estate plan can help sidestep many issues that arise from probate. Again, probate can sometimes be a lengthy process and, as a result, may reduce your estate’s value and legacy. Estate planners have the expertise to assist you and your loved ones in avoiding the additional costs of probate, both monetarily and to your family’s well-being.

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Questions? Contact us at Elise Lampert, Attorney at Law

   

Elise Lampert, Attorney at Law

9465 Wilshire Blvd. | Suite 300 | Beverly Hills , CA 90212

Phone: (818) 905-0601 / Email: elise@elampertlaw.com

https://www.eliselampert.com

 

7 Common Inheritance Mistakes to Avoid

The period following the death of a loved one can be a tumultous time. Dealing with death and receiving an inheritance brings mixed emotions. The loss of a loved one is distressing, and while added funds can bring relief, it can be hard to think and plan objectively.

After receiving an inheritance, some people blow through it surprisingly quickly. Here are some mistakes people make when inheriting money and how to avoid them.

1. Not Factoring in Potential Inheritance Taxes

Depending on the size of the inheritance, you may get bumped into a higher tax bracket than you were previously. You could also be on the hook for capital gains taxes; if you've inherited property, you also may owe capital gains. Consider working with an attorney who specializes in estate planning in addition to talking with a financial advisor or an accountant before you spend any of your inheritance.

2. Failing to Make a Budget

If you don’t have a budget and are not used to managing money, you may not be prepared to handle significant funds. This could lead to overspending and a quickly disappearing inheritance. If you already have a budget, factoring in your new funds will help you see how it will affect your saving and spending strategy.

3. Spending Too Much

When receiving a large sum of money, you may assume that it will easily last. All too often, people fritter away inheritances by making major purchases right away, such as cars, boats, or vacations. Even if such purchases don’t seem all that significant at first, the costs can accrue quickly, especially if items you've purchased have additional costs, such as maintenance and insurance.

Stay grounded and take time to consider whether you truly need what you’re buying. Also, think through how much more money you could have in the future if you invest the money instead of spending it now. If you know how much you will inherit before you receive it, you can create a budget in advance.

4. Not Paying Off Debts

Paying off debts should be your first priority if you inherit a large sum of money. Paying off your mortgage, credit cards, or student loans will give you more freedom to do other things. You will still need to balance the debts you decide to pay with the amount of money you’d like to invest for the future.

5. Losing Other Income Sources

For people relying on asset-based or income-based government benefits, such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), receiving an inheritance could end up disqualifying them from these crucial public assistance programs. The benefactor needs to plan for this before passing on the inheritance. Establishing and funding an appropriate trust will reduce the possibility of this happening.

6. Not Saving Enough

Suddenly coming into a large amount of money can lead you to think about all the things you can do with it now instead of how you can save and invest for your future. After paying off debts, create an emergency fund with enough money to live on for about six months. Once you have done these two things, start increasing your contributions to your retirement accounts.

7. Not Getting Expert Advice

An inheritance, especially a sizeable one, can help you achieve financial security and allow you to pursue a dream career or some other life goal. However, an inheritance can vanish surprisingly quickly if not managed well. Before doing anything with your inheritance, consult with a financial advisor, an accountant, and an estate planning attorney.

How Estate Planning Attorneys Can Help

Consult with your estate planning attorney to ensure you make smart investment decisions with your inheritance. Together with a financial advisor, an estate planner can provide valuable advice on diversifying investments and minimizing risks to maximize the potential growth of your inheritance. Seek out both these professionals to manage your inheritance wisely and plan for a financially healthy future.

You also can work with an estate planning attorney to get assistance in setting up a trust to protect your newfound money (or property). Additionally, partnering with an estate planner can mean knowing how to safeguard your inheritance for future generations.

Keep in mind that the estate planning process may prove useful in many ways other than protecting your inheritance. A good estate planning attorney can collaborate with you to create a detailed estate plan. This may include drafting a last will and testament, durable power of attorney, medical directives, and other important estate planning documents.

By connecting with your estate planner, you can make informed decisions that align with your financial goals and secure your financial future.

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Questions? Contact us at Elise Lampert, Attorney at Law

   

Elise Lampert, Esq.

Law Office of Elise Lampert

9465 Wilshire Blvd. | Suite 300 | Beverly Hills , CA 90212

Phone: (818) 905-0601 / Email: elise@elampertlaw.com

https://www.eliselampert.com

 

Avoid a Conservatorship With a Durable Power of Attorney

A conservatorship protects the interests of an adult who can no longer make decisions for themselves. A conservator is someone (or several people) with the legal authority to make decisions and act on behalf of another.

The Conservatee is the adult who needs help with their finances, health care, living arrangements, and daily affairs. This individual may need assistance because of old age or physical or mental limitations. Common reasons for having a conservator of a person include situations where an adult is in a coma or has dementia or developmental delays.

Some conservatorships are broader than others. For example, a conservator may only have power over medical decisions, but not living arrangements or a conservator may only have authority over financial decisions regarding specific investments or property.

Note, however, that different states may use the terms conservator and guardian to mean different things. Getting legal advice from a local attorney is important to ensure you are addressing your specific situation properly.

Durable Powers of Attorney

Having a conservatorship is different from having durable powers of attorney. A durable power of attorney (DPOA) is a legal document. An adult can partner with an attorney to set it up in case they lose the capacity to make decisions at some point.

With a DPOA, you can choose someone – your “agent” – who would make important decisions for you.

The benefits of having a durable power of attorney as part of your estate plan include the following:

• ensures that someone you trust will be able to make important decisions on your behalf if you ever lose capacity

• gives you peace of mind knowing that your affairs will be handled according to your wishes

• helps avoid the need for a court-appointed guardian or conservator, which can be costly and time-consuming

• allows you to maintain control over your future even if you are unable to make decisions for yourself

To include a DPOA as you develop your estate plan, seek the help of a qualified estate planning attorney.

In contrast, conservators are put in place by court order. They serve to manage the affairs of those who can no longer make their own decisions about health care or finances. Without a durable power of attorney reflecting your wishes, the court must appoint a conservator or guardian.

What Does a Conservator Determine?

A Conservator of the estate guides financial matters, while a Conservator of the person manages personal and medical decisions. In most circumstances, one person may be in charge of both estate and personal or medical conservatorships. Both types of conservators follow court supervision and are held accountable to that court.

This court supervision acts as a safeguard, preventing mismanagement of property or taking advantage of the ward. The conservator must report the details of their actions to the court on a periodic basis.

Frequently, courts will require the conservator to seek permission before making major decisions. This can include decisions such as terminating life-support or requiring medications, or selling real estate or other property. Additionally, a financial guardian must often post a bond as an insurance policy protecting the ward's estate from mismanagement.

The Conservator Role

Conservators must serve the conservatee’s best interests. They must be competent and trustworthy. Yet court proceedings can be time-consuming and expensive. Professional conservators (e.g., attorneys) are often pricey, too.

By adequately preparing durable powers of attorney before a physical or mental health crisis occurs, you can avoid a conservatorship.

DPOAs provide direction for decision-making based on your wishes by the designated power of attorney(s). Without these documents, the court appoints a conservator related to the conservatee who is available to serve. This might be their spouse, adult child, or another family member.

A conservator will act until the court issues an order ending this responsibility. This usually follows:

• The conservatee’s death

• The conservatee no longer requires this level of assistance

• In the case of financial affairs, all assets are spent

• The conservator can no longer handle the responsibilities or resigns

• The court removes the conservator following a successful legal challenge by the conservatee.

Work With an Attorney

To avoid an unwanted conservatorship, draft your DPOA while you are young and have all your faculties. Although it’s unpleasant to consider, you never know when your life can change drastically. You can easily establish a durable power of attorney when you execute other estate planning documents, like a will.

Meet with your estate planning attorney to discuss concerns you may have regarding potential physical or mental illness. They can assist you in choosing the right representative, someone you can trust to make decisions in your best interest. This way, you will have peace of mind knowing that future decisions will reflect your wishes.

Likewise, if you are facing issues with a loved one who is no longer of sound mind, an estate planning attorney can help.

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Elise Lampert, Esq.

Law Office of Elise Lampert

9465 Wilshire Blvd. | Suite 300 | Beverly Hills , CA 90212

Phone: (818) 905-0601 / Email: elise@elampertlaw.com

https://www.eliselampert.com

 

Blended Families and Wills in Estate Planning

Today, 16 percent of children in the United States live in blended families, according to U.S. Census data. This can include those living in households that have a stepparent, stepsibling, or half-sibling.

In many cases, stepchildren receive the same treatment as full biological children in the case of inheritance. This is particularly true where stepchildren are part of a blended family from an early age. Biological siblings may have different feelings about a stepchild inheriting what they perceive as theirs as a natural heir. Likewise, a surviving spouse may have the same feelings about their own children's inheritance.

Transferring an Inheritance

Estate planning for blended families is key to a smooth inheritance process. Probate rules and intestate succession law may not treat inheritance the same for stepchildren and biological children. Open communication about your estate plan is also helpful in managing the expectations of your heirs.

Trying to be equitable among your heirs can be tricky. You may hope your spouse and children will work things out after you have passed away. However, you want to avoid this common estate planning mistake. It can easily create unnecessary heartache for the loved ones you leave behind.

Carve out some quiet time and identify your most important estate planning goals. This includes deciding how you would like to divide all your hard-earned assets between your various loved ones.

These assets include your house, car, jewelry, other personal items, investments, retirement plans, brokerage accounts, and insurance. If you opt to gift items before your death, be certain you no longer include the asset or property in your estate plan. Even items of little financial value may be an expected inheritance from the perspective of a child.

The goal is to reduce tensions among family members. An experienced estate planning attorney can help you identify and sort through some potential options.

Creating a Trust

Share your ideas with your spouse and agree on a basic approach, including scenarios for who might pass away first. Leaving property outright to a surviving spouse may not be the best approach. As noted above, this does not ensure that the children (including any children from previous relationships) will ultimately benefit. Many blended families use a trust to provide for a spouse while leaving their property to their children.

With a trust, for instance, you can leave assets to your spouse while they are alive, with the balance later transferring to your children. Partner with your estate planning attorney to execute the legal documents that work best for your specific situation.

Beware of Will Contests

Parents in blended families should be aware of the possibility of a will contest. Stepchildren can contest a will, seeking the same treatment as a full biological child, if you have named them in a prior will. For example, a will that you wrote before a remarriage creates an opportunity to contest.

Note that your stepchildren have little chance of inheritance without a will. In fact, in most states, if you die without a will, your stepchildren will not inherit from you. (Dying “intestate” is the legal term for dying without a will in place.)

In states where they may be eligible, stepchildren could still be last in line to inherit. This may be the case under the laws of intestate succession, depending on where you live.

A stepchild named in a previous will can challenge on the grounds of undue influence, lack of capacity, mistake, fraud, or coercion. If the contested will is thrown out of probate, estate inheritance reverts to the next most recent will. A stepchild must be named in at least one prior will to have “standing” to challenge the will.

If the court finds that all wills are invalid, the state will treat stepchildren as intestate heirs.

While contesting a will is permissible under certain circumstances, there is no guarantee it will be successful. To ensure your loved ones will follow your legacy wishes, consult your estate planning attorney. Professionals in this area will understand the intricacies and nuances of estate planning for blended families. They also may be able to help you problem solve and navigate difficult conversations between parents and children.

What to Know About Separate Wills

A biological parent and stepparent may make their wills simultaneously and agree to leave the estate to one another. Their will may, for example, leave equal shares to biological and stepchildren.

A surviving spouse can always change their will upon the death of the other. The surviving spouse may in fact choose to exclude the stepchildren. However, a stepchild could then contest the most recent will and claim that it is invalid.

What About Reciprocal or Mutual Wills?

A reciprocal will is a legal document created by two individuals, typically spouses or partners, where they agree to leave their assets to each other in the event of one person’s death. In a reciprocal will, both parties outline their wishes for how their estate should be distributed after both of them have passed away. This type of will is often used by couples who want to ensure that their assets are passed on to each other and then to their chosen beneficiaries.

However, most states do not recognize reciprocal or mutual wills as a binding contract. A mutual will can only be enforced if it specifically constitutes a binding contract that can’t be changed. Again, consider creating a trust to care for a surviving spouse and your children’s inheritance. This can be more reliable than depending on mutual wills and goodwill after you have passed away.

Work With Your Estate Planner

Contact your estate planning attorney for guidance on the right estate planning documents for your family. If your family experiences any major life changes, such as the birth of a child or a move to a new state, always review and update your estate plan.

Contact us

Questions? Contact us at Elise Lampert, Attorney at Law

   

Elise Lampert, Esq.

Law Office of Elise Lampert

9465 Wilshire Blvd. | Suite 300 | Beverly Hills , CA 90212

Phone: (818) 905-0601 / Email: elise@elampertlaw.com

https://www.eliselampert.com