Strohschein advocate

T HE EX PER I EN C E YOU R EQ UI R E.

T HE CO M PASSION YOU ’L L APPR EC IAT E.

The Challenges of the

Sandwich Generation

SUMMER 2013

What is the “Sandwich Generation?” This

is the population of people in their fifties

and sixties that are taking care of their

aging parents, putting their children

through college and getting them on their

feet to start careers, while planning their

own retirement. This generation is placed

in a financial and emotional squeeze.

The concept of sandwich generation is

relatively new but definitely a layer of its

own in our society. The sandwich genera-

tion was caused in part because lifespans

today are much longer than in years past,

and an increasing number of retirees or

near-retirees have aging parents who re-

quire costly nursing home or in-home care.

At the same time, many of these same

people have children who are still in col-

lege or who may return home once or

twice after college or between jobs in an

effort to get on their feet.

How to Avoid Sandwich Generation

Problems

If you’re already in your sixties, or nearly,

and feeling the financial squeeze of the

sandwich generation, there are a few

things you can do to lower your stress lev-

el and increase your peace of mind. You

might consider working a little longer,

trimming your expenses, and urging your

kids to explore every option for college

financial aid—especially merit grants or

scholarships that neither of you will have

to repay after they graduate.

If you’re in your forties or fifties, chances

are you have more time to plan and make

preparations before you find yourself

caught in the sandwich generation. Re-

gardless of your age, however, here are a

few steps you can take that may help you

manage the needs of your aging parents

and adult children without getting

squeezed by sandwich generation prob-

lems:

Preserve Your Assets—Don’t be a sand-

wich generation martyr by raiding your

retirement savings to pay for your chil-

dren’s college education or your parents’

long-term care. Your kids can take out

student loans if necessary, and you should

use your parents own assets to finance

their care for as long as possible.

Plan Ahead—Keep the sandwich genera-

tion trend in mind when you’re projecting

what kind of income you’ll need in retire-

ment. Be sure to consider the possibility

that you'll end up in the sandwich genera-

tion--one or more of your kids may need

to come back home for awhile, raising

your monthly costs or maybe delaying

your plan to move to a smaller home. And

if you have one or more parents still liv-

ing, count on joining the sandwich genera-

tion as your parents may also need your

financial help.

Assess the Situation —As early as possi-

ble, consider sandwich generation issues.

Talk with your parents about their assets,

how they want to live as they age, what

kind of health care and lifesaving

measures they do or don't want, and who

should make legal and medical decisions

for them if they are no longer able to han-

dle their own affairs. This may be a diffi-

cult and uncomfortable conversation for

you and your parents, but answering these

questions while there is still time to plan

ahead can help you both avoid a lot of

sandwich generation problems.

Get Insurance—Sandwich generation

members need to plan for the future. Look

into the viability of long-term care insur-

ance for your parents and yourself. Wheth-

er it is right for you depends on several

factors, including the cost of the coverage,

how long you might need it, and what kind

of benefits you want. If you or your par-

ents eventually require nursing home care,

however, long-term care insurance can

help offset those asset-draining costs.

Put Yourself First—Because you’re both

a conscientious parent and a dutiful child,

you may be tempted to put your own

needs after those of your aging parents and

adult children if you find yourself in a

sandwich generation scenario. Don’t. The

only person who can save for your retire-

ment is you. To avoid many sandwich

generation problems--and help your par-

ents and your children--you first have to

keep your own financial house in order.

2455 Dean Street, Suite G • St. Charles, IL • 60175 www.StrohscheinLawGroup.com 630•377•3241

We are excited to introduce our newest staff member, Annie! She is a six year old Wheaten Terrier (hypo-allergenic breed) that Linda adopted from a local rescue shel-ter. Her disposition is gentle and sweet and she loves to meet our daily visitors. Her fa-vorite color is green, like her doggy bed found under Linda’s desk, and she enjoys sharing her time among the staff throughout her busy day. She will occasionally find a seat in one of the side chairs to either get a better view or just encourage a little atten-tion. If you aren’t a dog person, no worries! Just let us know before you plan to arrive and Annie will gladly take a nap on her cozy doggy bed!

If you are going to meet with an estate planning attorney, it

is a good idea to be prepared so that you can have an educat-

ed discussion. The following are some action steps you will

want to take and topics you will want to discuss to be better

prepared for your meeting.

1. Discuss the important documents of any estate plan:

durable power of attorney for health care, durable power of

attorney for property, and a HIPAA release.

2. Think about how you want your assets to be distributed

after your death and write it down in your own words.

Review any contracts and beneficiary designations you

currently have in place and confirm with your estate

planning attorney that they are carrying out your wishes.

Be sure to update your will and/or trust every so often.

3. Your estate plan should provide sufficient sources of

income for your beneficiaries. Purchasing a life insurance

policy can provide your financial dependents with a

supplement for a loss of your income.

4.Openly discuss with your spouse or loved one how your

estate plan will affect him or her if you pass away first to see

if they are comfortable with it. Make changes, if necessary,

based on your discussion.

5.Calculate the amount of estate taxes that will be due at

your death. Also, if you are married with children, the

potential impact of taxes on your children should your

spouse predecease you or if you predecease your spouse. If

the amount of taxes is significant, discuss with your estate

planning attorney the possibility of making changes to your

estate plan or gifting to reduce potential estate taxes.

6. If you have a revocable living trust and it is not funded

yet, you should fund it so that you and your beneficiaries

can get the most out of its flexibility, privacy and conven-

ience. If you have real property in states other than your

legal residence, think about deeding the property to your

trust so that you can avoid additional probate proceedings in

that state after your death.

7. Be sure to select an executor of your estate, a trustee for

your trust, and a guardian for your minor children.

8. Please don’t forget who suggested these tips and bring

treats! Woof! (hint: Annie)

It is important that you understand the language in your

current estate planning documents. If anything is not clear to

you, make sure you ask your estate planning attorney to

explain it and what the impact will be on your heirs.

Strohschein Law Group has a new best friend!

Annie

Preparing for a Meeting with Your Estate Planning Attorney

Annie’s Kibbles & Bits ~

Life Care Planning….

Maybe it’s Time to Think

About It

There comes the time that we need

to think about putting together a plan

for the “what if.” It is possible you

are supporting your elderly parents

with a life care plan or looking

ahead to plan for yourself and/or a

spouse.

Life Care Planning is a service that

helps people find and pay for good

care for life. It is a “team” approach

serving the needs of the client,

which combines the skills of both of

the Elder Law Attorney, Financial

Advisors, Care Coordinators and

Other Professionals.

Life Care Planning deals with the

“unplanned” by looking closely at

the four continuums:

Health & Ability to Function

Home Sweet Home

Cost of Care

Public Benefits & Available

Resources

Forty-three percent of people over

the age of 65, progressing to fifty

percent of people over the age of 85,

will need skilled nursing home care

at some point in his or her lifetime.

Amongst that, the average stay is

more than two years. So, goals and a

plan are in the best interest of being

prepared. Consider the following

Life Care Planning Goals:

Care for Mom and Dad

Care for the Caregiver

Quality of life for Mom and Dad

Avoid Impoverishment

Protect the House

Protect the Inheritance

Planning ahead for your own

disability is a difficult step to take

because no one wants to believe it

can happen to them; but it can

happen.

Legacy Planning is a way of sharing your values, blessings, life lessons,

hopes and dreams for the future, as well as love and forgiveness with your

family, friends and community. The Ethical Will can be a combination of

thoughts and ideas, from a detailed written set of instructions to a simple

list of ideas, to one or more recordings, created for your loved ones. The

Ethical Will is created intentionally to last beyond your lifetime.

An Example….

“Whether I am present or not, I hope that as

you live out your own lives so that you can

maintain the balance of the familiar and the

unfamiliar by creating a solid base from

which you can securely approach your op-

tions and enjoy what you have created.

Along these lines, I hope that you will stay

connected to your parents, grandparents and

siblings, maintain a sense of being a part of

an extended family, build a web of friend-

ships and maintain them over time, commit

to being financially secure, build a base of

skills so that you are adaptable in the work-

place, develop an area which you can invest

yourself with passion, read a lot, value the

spiritual, commit yourself to things and peo-

ple, get in the habit of good communication,

be a citizen of the world, be respectful of

everyone you meet and seek out those who

are older and more experiences. Remember

always that my love lives inside of you.”

Creating your own Ethical Will consists of answering questions such as,

“If you could look fifty years into the future, what do you want to see with

regard to your family?” and “How valuable is it to you that your

inheritance is used wisely?” With an Ethical Will you are sharing your

desires of living a good life. Essentially the Ethical Will is a container to

hold all of the lessons you have learned in order to pass them on to the

others who may benefit from your wisdom. The Ethical Will allows each

of us to honor our closest relationships.

Since the Ethical Will is a non-legal document often prepared by the non-

attorney, it is common for there to be discrepancies between it and the

formal legal documents. A disclaimer is highly recommended, and we

strongly recommend having the Ethical Will reviewed by an attorney so

that the information contained in the Ethical Will does not contradict the

legal directions.

Legacy Planning can be done at any time in your life, although there are

some poignant times when it might be considered: Engaged Couples,

Expectant/New Parents, Divorcing Couples, Growing Families, Empty-

Nesters, Middle Age and Beyond, and End of Life.

Ethical Wills: The True Worth of Your Estate Plan

Strohschein Outlook

Strohschein Law Group

2455 Dean Street, Suite G St. Charles, IL 60175

All programs are free and presented at our St. Charles office

2455 Dean Street, Suite G

To RSVP, please call 630.377.3241 or email

Invite@StrohscheinLawGroup.com

Lunch or refreshments are included.

EP University for the Sandwich Generation Lunch & Learn 3-Part Series

Tuesday, July 16th 12:00-1:00 pm Part 1: Estate Planning (EP) Basics - Including Advance Directives

Tuesday, July 23rd 12:00-1:00 pm Part 2: Balancing Life Transitions

Tuesday, July 30th 12:00-1:00 pm Part 3: Navigating Financial Needs The sandwich generation is challenged with balancing the needs of their growing children, aging parents, and personal plans for retirement. If you feel like the cheese in a good sub sandwich - you are not alone. Join us for this 3-part series and learn the legal and financial steps you should consider when juggling these life transitions.

The Caregiver’s Tool Box Tuesday, August 20th 12:00-1:100 pm Saturday, August 24th Coffee Talk 9:00-10:30 am If you are a hands-on caregiver, or someone who is overseeing care, join us for this practical presentation about the role of the caregiver, identifying needs, and getting the tools you need to offer the best care for your loved one! You will get a “Tool Box” full of resources and information you need to know and consider.

Estate Planning

Long Term Care Planning

Guardianships

Estate and Trust Administration

Probate Litigation

630•377•3241

www.StrohscheinLawGroup.com