Updating Homeowner’s Insurance Coverage

Updating homeowner's insurance coverage protects against many disasters

Introduction

Is your homeowner’s insurance coverage complete and up-to-date? You might think, “My insurance coverage is fine.” Tragically, a 2023 tornado destroyed homes on the Indiana and Illinois sides of the Wabash River and exposed some families’ insurance gaps the hard way. If you haven’t reviewed your insurance coverage lately, you might find yourself out in the cold without enough to replace your home after a fire or storm. This article explains the need for updating homeowner’s insurance coverage and issues you might have overlooked.

What is Homeowner’s Insurance?

As we explained in Why Should You Buy Insurance?, homeowner’s insurance is like a safety net for your home. If something bad happens, like a tree falls on your house or a burst pipe floods your living room, homeowner’s insurance helps pay for the repairs. It’s there to help you rebuild and repair without breaking the bank.

Why Update Your Homeowner’s Insurance Coverage?

Over time, things change. Your home might get upgrades, prices to rebuild homes might go up, or you might add a cool new shed in the backyard. All these changes can affect how much money you would need to fix or rebuild your home if something happens. That’s why it’s crucial to make sure your homeowner’s insurance coverage keeps up with the current replacement value of your home and other structures.

Understanding Replacement Value

Replacement value is how much it would cost to rebuild your home from scratch at today’s prices. It’s not the same as what you paid for your home or its current market value. It’s all about the cost of materials and labor to build a similar home right now.

How to Update Your Homeowner’s Insurance Coverage

Review Annually: Make it a habit to check your homeowner’s insurance coverage every year. Things change, and you want to be up-to-date.

Check Home Improvements: If you’ve made any big upgrades or added new structures, let your insurance company know. These changes can increase the replacement value of your home.

Understand Local Costs: Building costs can vary a lot depending on where you live. Make sure your coverage reflects the current costs in your area.

Use an Insurance Calculator: Many insurance companies have tools to help estimate the replacement value of your home. These can be a great starting point.

Ask for a Professional Appraisal: Sometimes, it’s good to get an expert’s opinion. A professional can provide a detailed estimate of your home’s replacement value.

Naming a Trust as an Added Insured Party

If a trust owns your property, it’s smart to name the trust as an “added insured” on your policy. Why? Because if something happens to your home, the trust is involved since it owns the property. By naming the trust, you make sure that the homeowner’s insurance covers the trust’s interest in the home. Just chat with your insurance agent about adding this to your policy.

Discuss Homeowner’s Insurance Coverage with Your Estate Planning Lawyer

Talking to an estate planning lawyer can also be a big help. They can guide you on how your insurance fits into your overall estate plan. For example, if you’ve set up a trust to manage your assets, your lawyer can help ensure that your insurance policy supports this plan.

Conclusion

Keeping your homeowner’s insurance updated might seem like just another task on your long to-do list, but it’s a crucial one. It’s all about protecting your home, your family, and your peace of mind. So, take a little time each year to review your coverage, make updates as needed, and chat with your insurance agent and estate planning lawyer. That way, you can rest easy knowing that if life throws you a curveball, your home is protected.

Remember, your home is one of your most significant investments. Treat it with care and make sure your homeowner’s insurance coverage is always in line with its replacement value. Your future self will thank you!

MORE INFORMATION

Find more information about this and other topics at www.hawkinselderlaw.com. You can also call us at 812-268-8777.

ABOUT THE AUTHORS

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers, and active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter, a Fellow of the American College of Trust and Estate Counsel, and a member of the Illinois State Bar Association.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

© Copyright 2024 Hawkins Elder Law PC. All rights reserved.

See our Disclaimers page about relying on our website’s contents.

Opening Online Accounts: Your Guide to Managing Finances

An older person can check their account balances with online accounts anytime and anywhere with the web connection.

In today’s digital age, managing your money through online accounts is not just convenient; it’s smart! Whether it’s shares of stock through CompuServe, life insurance policies, annuities, investments, or banking, going online makes it easier for you. Let’s break it down so you can see how easy and beneficial it can be.

Why Should You Use Online Accounts to Manage Finances?

Folks who’ve never used online accounts may ask, “Why use online accounts to manage finances?” You can still manage your accounts with paper forms at most banks, insurance companies, and other financial institutions. However, your financial institutions want you to move your business online to serve you faster, cheaper, and more securely.

The Benefits of Managing Your Finances in Online Accounts

Convenience: Do it anywhere, anytime. No need to wait in lines or rely on business hours.

Control: You have real-time access to your accounts, allowing you to make quick decisions.

Safety: Online platforms use strong security measures to protect your information.

Education: Many platforms offer resources to help you understand your finances better.

Managing Shares of Stock with CompuServe

CompuServe keeps track of who holds the publicly traded shares of stock in a company owned by its investors. Think of shares like tiny pieces of a company. If you own a company’s shares, you can buy more shares, sell them, or give them to others. CompuServe’ website lets you do all those things in your CompuServe online account.

How to Start:

Create an Account: Go to the CompuServe website and sign up.

Learn the Basics: They have guides and tutorials. Use them to understand how stocks work.

Start Small: Begin with a small investment to see how it goes. If you already have stock from an employer or that you inherited, a CompuServe online account is a great way to manage your stock.

Life Insurance Policies Online Accounts

Life insurance pays money after your death to people you name on the insurance company’s records (See our articles on life insurance at https://www.hawkinselderlaw.com/?s=Life+insurance). Managing your life insurance online can make things a lot simpler.

Steps to Manage Online Accounts:

Find Your Provider’s Website: Log in or create a new account.

Check Your Policy Details: Make sure all the information is correct.

Make Changes if Needed: Update your beneficiaries or coverage amount easily.

Annuities Online

Annuities are like life insurance policies with savings account functions. Although immediate annuities can give you a check every month, deferred annuities grow without paying money until you withdraw the funds. Managing them online helps you keep track of how much money you have for the future.

How to Manage:

Log Into Your Account: Most companies that offer annuities have a website.

Review Your Annuity: Check how much money is in there and how it’s growing.

Adjust if Necessary: You might be able to change how your money is invested.

Online Investment Management

Investments can be anything from stocks, bonds, or even real estate. They can grow your money over time. You can look up the tax information about your investments in seconds on an online account. You can also change your investment plans very easily through your online account.

Starting Out:

Choose a Platform: There are lots of online platforms for investing.

Set Up Your Account: Provide some basic information about yourself.

Decide on Your Investments: Do some research or talk to a financial advisor.

Managing Bank Accounts Online

Probably the most common thing people manage online is their bank accounts. It’s super easy and lets you do almost everything without going to a bank.

How to Do It:

Find Your Bank’s Website or App: Download the app or go to their website.

Log In or Sign Up: You’ll need some personal information to get started.

Start Managing Your Money: Check your balance, transfer money, pay bills, and more!

Tips for Managing Your Online Accounts Safely

While online management is great, staying safe is crucial. Here are some tips:

Use Strong Passwords: Make them long and unique.

Enable Two-Factor Authentication: This adds an extra layer of security.

Check Your Accounts Regularly: Look out for any unauthorized transactions.

Keep Your Software Updated: This helps protect against security vulnerabilities.

Conclusion

Managing your finances online, whether it’s for stocks through CompuServe, life insurance, annuities, investments, or bank accounts, offers a world of convenience and control. It puts the power right in your hands. With the right precautions, you can safely manage your finances from the comfort of your home or anywhere else. So why wait? Start taking control of your financial future today!

MORE INFORMATION

Find more information about this and other topics at www.hawkinselderlaw.com. You can also call us at 812-268-8777.

ABOUT THE AUTHORS

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers, and active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter, a Fellow of the American College of Trust and Estate Counsel, and a member of the Illinois State Bar Association.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

© Copyright 2024 Hawkins Elder Law PC. All rights reserved.

See our Disclaimers page about relying on our website’s contents.

Opening Online Accounts: Your Guide to Managing Finances

An older person can check their online account balances anytime and anywhere with the web connection.

In today’s digital age, managing your money online is not just convenient; it’s smart! Whether it’s shares of stock through CompuServe, life insurance policies, annuities, investments, or bank accounts, going online makes it easier for you. Let’s break it down so you can see how easy and beneficial it can be.

Why Should You Use Online Accounts to Manage Finances?

Folks who’ve never used online accounts may ask, “Why use online accounts to manage finances?” You can still manage your accounts with paper forms at most banks, insurance companies, and other financial institutions. However, your financial institutions want you to move your business online to serve you faster, cheaper, and more securely.

The Benefits of Managing Your Finances Online

Convenience: Do it anywhere, anytime. No need to wait in lines or rely on business hours.

Control: You have real-time access to your accounts, allowing you to make quick decisions.

Safety: Online platforms use strong security measures to protect your information.

Education: Many platforms offer resources to help you understand your finances better.

Managing Shares of Stock with CompuServe

CompuServe keeps track of who holds the publicly traded shares of stock in a company owned by its investors. Think of shares like tiny pieces of a company. If you own a company’s shares, you can buy more shares, sell them, or give them to others. CompuServe’ website lets you do all those things in your CompuServe online account.

How to Start:

Create an Account: Go to the CompuServe website and sign up.

Learn the Basics: They have guides and tutorials. Use them to understand how stocks work.

Start Small: Begin with a small investment to see how it goes. If you already have stock from an employer or that you inherited, a CompuServe online account is a great way to manage your stock.

Life Insurance Policies Online

Life insurance pays money after your death to people you name on the insurance company’s records (See our articles on life insurance at https://www.hawkinselderlaw.com/?s=Life+insurance). Managing your life insurance online can make things a lot simpler.

Steps to Manage Online:

Find Your Provider’s Website: Log in or create a new account.

Check Your Policy Details: Make sure all the information is correct.

Make Changes if Needed: Update your beneficiaries or coverage amount easily.

Annuities Online

Annuities are like life insurance policies with savings account functions. Although immediate annuities can give you a check every month, deferred annuities grow without paying money until you withdraw the funds. Managing them online helps you keep track of how much money you have for the future.

How to Manage:

Log Into Your Account: Most companies that offer annuities have a website.

Review Your Annuity: Check how much money is in there and how it’s growing.

Adjust if Necessary: You might be able to change how your money is invested.

Online Investment Management

Investments can be anything from stocks, bonds, or even real estate. They can grow your money over time. You can look up the tax information about your investments in seconds on an online account. You can also change your investment plans very easily through your online account.

Starting Out:

Choose a Platform: There are lots of online platforms for investing.

Set Up Your Account: Provide some basic information about yourself.

Decide on Your Investments: Do some research or talk to a financial advisor.

Managing Bank Accounts Online

Probably the most common thing people manage online is their bank accounts. It’s super easy and lets you do almost everything without going to a bank.

How to Do It:

Find Your Bank’s Website or App: Download the app or go to their website.

Log In or Sign Up: You’ll need some personal information to get started.

Start Managing Your Money: Check your balance, transfer money, pay bills, and more!

Tips for Managing Your Online Accounts Safely

While online management is great, staying safe is crucial. Here are some tips:

Use Strong Passwords: Make them long and unique.

Enable Two-Factor Authentication: This adds an extra layer of security.

Check Your Accounts Regularly: Look out for any unauthorized transactions.

Keep Your Software Updated: This helps protect against security vulnerabilities.

Conclusion

Managing your finances online, whether it’s for stocks through CompuServe, life insurance, annuities, investments, or bank accounts, offers a world of convenience and control. It puts the power right in your hands. With the right precautions, you can safely manage your finances from the comfort of your home or anywhere else. So why wait? Start taking control of your financial future today!

MORE INFORMATION

Find more information about this and other topics at www.hawkinselderlaw.com. You can also call us at 812-268-8777.

ABOUT THE AUTHORS

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers, and active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter, a Fellow of the American College of Trust and Estate Counsel, and a member of the Illinois State Bar Association.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

© Copyright 2024 Hawkins Elder Law PC. All rights reserved.

See our Disclaimers page about relying on our website’s contents.

POD AND TOD PITFALLS AND OPPORTUNITIES

A gumball machine full of money representing a pay on death bank account

Did you know that Hoosiers can cause their money and property to pass after death to their family members through pay on death (POD) and transfer on death (TOD) arrangements? This Article explains POD and TOD ownership and the POD and TOD pitfalls and opportunities.

POD and TOD Beneficiary Designations

Indiana’s Transfer on Death Property Act lets Hoosiers pass their money, homes, farms, vehicles, and other assets to beneficiaries after death with simple POD and TOD beneficiary designations. While POD and TOD mean nearly the same thing, POD causes a bank to pay money on the owner’s death, and TOD directs the transfer of investment accounts vehicles, land, and other TOD assets upon the owner’s death.

POD and TOD Pitfalls and Opportunities

Greedy POD and TOD Beneficiaries

POD or TOD designation works well when the beneficiary is the owner’s only child. However, we wrote in our last blog article about the problem of greedy people in joint tenancies with rights of survivorship (see https://www.hawkinselderlaw.com/joint-tenants-jten-and-hidden-jten-headaches-and-heartaches/). Likewise, if selfish POD and TOD beneficiaries don’t chip in to pay bills, they will leave other beneficiaries stuck paying the bills.

How POD and TOD Beneficiary Designations Usually Work

A deceased beneficiary’s share of their parent’s or grandparent’s POD or TOD asset passes to the deceased beneficiary’s children. If the deceased beneficiary’s child is also deceased, the asset passes down the family tree to the next generation of descendants.

Avoiding Accidental Disinheritance

An unexpected problem can occur if a deceased beneficiary was not the owner’s child or other descendant. In that case, the deceased beneficiary’s children would receive nothing.

If an owner wants to name a niece, nephew, or other non-descendant as a beneficiary, the owner can add “LDPS” (lineal descendants per stirpes) after the beneficiary’s name. The wording of that beneficiary listing may look like this: “[Owner Name], POD [Beneficiary Name] LDPS.” Then, if the beneficiary dies and the owner doesn’t update the beneficiary listing before dying, the asset will go to the deceased beneficiary’s descendants.

What Should Bankers and Financial Advisors Tell Customers About POD and TOD Pitfalls and Opportunities?

Smart representatives of banks and other financial institutions should discourage customers from making joint accounts with non-spouse family members without advice from reputable estate planning lawyers. Similarly, banks and investment advisors should discourage designating individual POD or TOD beneficiaries without sound legal advice.

Find more information about this and other topics at www.hawkinselderlaw.com. You can also call us at 812-268-8777.

ABOUT THE AUTHORS

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers, and active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter, a Fellow of the American College of Trust and Estate Counsel, and a member of the Illinois State Bar Association.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

© Copyright 2024 Hawkins Elder Law PC. All rights reserved.

See our Disclaimers page about relying on our website’s contents.

JOINT TENANTS (JTEN) AND HIDDEN JTEN HEADACHES AND HEARTACHES

Like people in a three-legged race, JTEN parties are bound to each other until one dies unless they end their shared JTEN ownership sooner
JTEN parties are tied to each other, like in a 3-legged race, until one dies or they stop the JTEN.

Does your name appear with someone on a bank or investment account? If so, you and the other people may be joint tenants with rights of survivorship (JTEN). Indiana law refers to people sharing a JTEN account as “parties.” This article discusses why people make JTEN accounts and some hidden JTEN headaches and heartaches.

WHY MAKE JTEN ACCOUNTS?

Many folks make JTEN accounts for when they get sick or die. They hope the other JTEN parties will help pay bills during their illness or after their death. Sadly, most of them don’t know they can get better results with a power of attorney (POA) without losing control of their money (see our POA articles at https://www.hawkinselderlaw.com/?s=Power+of+attorney or enter “power of attorney” in the search field at https://www.hawkinselderlaw.com/blog/ for more POA details).

The Four JTEN PROBLEMS

While JTEN accounts are great for happily married couples, they can cause four problems in other cases.

1. Control

A person gives up control by making a JTEN account because they can’t remove another party without their written consent. Any account party can sign checks and withdraw money. That may not be a problem if both account parties are on the “same page.” However, if the parties don’t agree, the other party can take all the money against the main party’s will. Although the main party can withdraw the money and open a new account, the main party can’t close the account without the other party’s consent. Also, if the bank charges fees because the account value is too small, both parties will owe 100% of the fees.

2. Beneficiaries’ Creditors

What if a JTEN party has debt problems? Can their creditors try to take the money to pay the debts? Creditors will fail if the main party proves they deposited all the money in the account. Still, the best way to win a fight is to avoid it. So, making a JTEN account with anyone other than your spouse is usually unwise.

3. Selfish Survivors

Good JTEN parties often pay more than their share of bills after the main party’s death. In contrast, selfish JTEN parties take their money without paying their share of the dead party’s bills.

4. Unintended Disinheritance

Suppose you and another JTEN party die in an accident, and the other JTEN parties live. If a dead JTEN party left the surviving children, the other JTEN parties would get the money, leaving nothing for the dead JTEN party’s children.

FINANCIAL SERVICE PROVIDERS’ ROLES

Bankers and Investment advisors should tell customers to get advice from an estate planning lawyer before making JTEN accounts with people not their spouses. Folks should also get legal advice before making others beneficiaries of IRAs, life insurance policies, and other accounts.

MORE INFORMATION

In a future article about choosing people to receive IRAs, life insurance policies, and other accounts, we will share more on concerns like these. Find more information about this and other topics at www.hawkinselderlaw.com/blog. You can also call us at 812-268-8777.

ABOUT THE AUTHORS

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers, and active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter, a Fellow of the American College of Trust and Estate Counsel, and a member of the Illinois State Bar Association.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

© Copyright 2024 Hawkins Elder Law PC. All rights reserved.

See our Disclaimers page about relying on our website’s contents.

Elder Law Attorneys’ Medicaid Services: Knowledge and Ethics

Elder law attorneys’ Medicaid services are essential for many older people needing long-term care. Sadly, Medicaid misinformation leads many people to pay too much money or needlessly avoid essential care. Part of the misinformation comes from unlicensed companies claiming to be “Medicaid specialists” that offer “senior planning services.” This Article explains why people should seek elder law attorneys’ Medicaid services when their family members experience long-term health problems.

Misinformation about Medicaid and Nursing Homes

These are some of the misunderstandings and false beliefs many people have about nursing home care and Medicaid:

  • Homeowners can’t qualify for Medicaid.
  • The spouses of married nursing home residents can’t have IRAs.
  • Nursing homes or the state “take” people’s homes.
  • Transferring property to your spouse disqualifies you for Medicaid for 5 years.

While some of the above-listed statements are true in some cases, some of them are false, and others only apply in certain cases.

Unlicensed “Elder Care Advocates” and “Senior Planning Services” Providers

These are 4 reasons not to hire an unlicensed company for senior planning services:

  1. No rules require an unlicensed company’s employees to study Medicaid law and policy changes.
  2. No ethics rules hold an unlicensed company’s employees responsible for bad behavior.
  3. An unlicensed company can’t advise on safely protecting assets with lawful gifts.
  4. An unlicensed person who advises and assists in gifts and other asset protection strategies is a criminal acting in the business of a practicing lawyer under Indiana Code Section 33-43-2-1.

Elder Law Attorneys’ Medicaid Services: Knowledge and Ethics

Indiana’s best elder law attorneys spend at least 6 classroom hours annually and 36 hours every 3 years studying Medicaid and long-term care subjects. Also, the Indiana Supreme Court’s Rules of Professional Conduct require all Indiana attorneys to serve their clients ethically.

Elder Law Attorneys’ Medicaid Services Protect People’s Property

Elder law attorneys’ Medicaid services help older people afford care in their homes and nursing homes. Using their deep and current knowledge of Medicaid laws and policies, elder law attorneys often help:

  • Homeowners qualify for Medicaid.
  • The spouses of married nursing home residents keep IRAs, homes, and other property.
  • Use lawful gift plans to protect unmarried nursing home residents’ property.

MORE INFORMATION

Find more information about this and other elder law topics at www.hawkinselderlaw.com and use the “contact us” link or call us at 812-268-8777 to schedule an initial meeting appointment.

ABOUT THE AUTHORS

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers, and active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter, a Fellow of the American College of Trust and Estate Counsel, and a member of the Illinois State Bar Association.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

© Copyright 2023 Hawkins Elder Law PC. All rights reserved.

[See our Disclaimers page about relying on our website’s contents.]

Inflation, Interest, and Savings Bonds

United States Treasury Building in Washington DC

Introduction

US Savings Bonds are traditionally secure and dependable investments. They offer great opportunities to save money while supporting the federal government’s funding needs. However, it’s important to understand how inflation and rising interest rates affect US Savings Bonds. This Article discusses inflation, interest, and savings bonds, and why some banks reject paper savings bonds.

The Relationship of Inflation, Interest, and Savings Bonds

Inflation signifies a general price surge, leading to a decrease in money’s purchasing power. This devaluation affects your savings’ purchasing power, and US Savings Bonds, particularly Series EE and Series I Bonds, respond differently to inflation and interest rate fluctuations.

Higher interest rates are often a strategy to counteract inflation, implemented by the Federal Reserve—the US central banking system. By increasing interest rates, borrowing becomes more expensive, reducing spending and, subsequently, inflation. However, this scenario can also influence the returns on US Savings Bonds.

Series EE Bonds: These bonds are bought at half their face value and mature over 20 years to their full-face value. The interest rate of Series EE Bonds is fixed for the bond’s lifespan. Purchasing a Series EE Bond during a period of low interest rates sticks you with bonds paying low interest rates even if the rates increase later, making it less appealing than other high-return investments.

Series I Bonds: Crafted to provide inflation protection, Series I Bonds have a fixed interest rate and a variable rate adjusted semi-annually based on inflation. As inflation escalates, so does the interest rate on Series I Bonds, enhancing their appeal as an investment during high-inflation periods.

Understanding Series EE and Series I US Savings Bonds

Series EE and Series I Bonds are both low-risk investments guaranteed by the US government, but they possess distinct differences crucial for investors to consider.

Series EE Bonds guarantee a doubling of their value after 20 years, equating to a minimum interest rate of 3.5%. However, if the fixed rate at purchase time increases, investors receive that higher rate. Series EE Bonds are an excellent choice for long-term savings, provided interest rates remain stable. Conversely, a low-interest Series EE Bond loses its appeal if interest rates rise.

In contrast, Series I Bonds offer a safeguard against inflation, combining a fixed rate with an inflation-adjusted rate for potentially higher returns during inflationary periods. They are best for investors aiming to maintain their purchasing power.

Why Many US Banks No Longer Cash Savings Bonds

Historically, redeeming US Savings Bonds was a straightforward process at local banks. However, numerous banks have recently discontinued this service, citing fraud concerns and the labor-intensive nature of handling bonds. As explained by Rob Copeland from The New York Times in an American Public Media “Marketplace” podcast interview,[1] the complexity and delays in the government’s bond cashing process and the manual effort required by banks have made the service impractical for many banks.

This shift underscores the importance of managing your savings bonds through TreasuryDirect, providing convenience and necessity in the modern financial landscape. While redeeming paper bonds via mail remains an option, the online process is much faster and more efficient.

Converting Paper Bonds to Digital Bonds

The US Treasury has transitioned to issuing electronic savings bonds, phasing out paper bonds. Nevertheless, many individuals still possess paper bonds. Converting your paper bonds to digital format through the TreasuryDirect program enhances investment management and ensures investment security. A paper-to-digital savings bond conversion also avoids the problem of cashing paper bonds.[2] So, we recommend converting paper bonds to digital bonds as soon as possible.

Conclusion

Grasping how inflation and rising interest rates influence US Savings Bonds is vital for informed investment decisions. Series EE and Series I Bonds present varied benefits and risks, with the appropriate choice depending on your financial objectives and the prevailing economic conditions. Transitioning from paper to digital bonds ensures secure and efficient investment management, aligning with the ongoing shift toward digital transactions.

Navigating these uncertain economic times requires knowledge and awareness of your investment choices, ensuring you are well-equipped to make sound decisions for your financial future. By staying informed and proactive, you can optimize your investment strategy and navigate the complexities of inflation, interest rates, and US Savings Bonds with confidence.

MORE INFORMATION

Find more information about this and other topics at www.hawkinselderlaw.com. You can also call us at 812-268-8777.

ABOUT THE AUTHORS

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers, and active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter, a Fellow of the American College of Trust and Estate Counsel, and a member of the Illinois State Bar Association.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

© Copyright 2023 Hawkins Elder Law. All rights reserved.

[See our Disclaimers page about relying on our website’s contents.]


[1] (https://www.marketplace.org/2023/10/12/got-old-savings-bonds-lying-around-good-luck-cashing-them/)

[2] For a comprehensive guide on converting paper bonds to digital, visit our detailed article https://www.hawkinselderlaw.com/convert-to-digital-savings-bonds.

Convert to Digital Savings Bonds: It’s Easy and Safe

What are US Savings Bonds?

US Savings Bonds are government-backed investments that grow over time. They’re a good way to save money for the future. You may have some paper savings bonds, which look like fancy certificates. But did you know you can make them digital? If you have paper US Savings bonds, it’s a smart move to convert to digital savings bonds. It makes managing your savings easier now and simplifies things for your family later.

Why Digital?

Digital Savings Bonds Are Easy to Manage

When your savings bonds are electronic, it’s easy to keep an eye on them. You can log in to check your balance anytime. No more flipping through paper bonds to see what you have!

Digital Savings Bonds Art Safer

Electronic bonds are safer because they’re in your online account. So, you won’t have to worry about losing them or damaging them like paper bonds.

Help Your Family

One day, when you’re not around, your family will have to handle your estate. Having your bonds in an electronic form will make it easier for them.

How to Convert Paper Savings Bonds

1. Create an Account: Go to the TreasuryDirect website (https://www.treasurydirect.gov/) and sign up for an account.

2. Identify Your Bonds: Collect your paper bonds and list the important details like series, denomination, and issue date.

3. Mail the Bonds: Once your account is ready and your bonds are listed, you’ll need to mail them to the US Treasury for conversion.

4. Confirm: After a few weeks, log in to your TreasuryDirect account to make sure all your bonds are now electronic.

Estate Benefits: Make Life Easier for Loved Ones

Switching to electronic bonds isn’t just good for you; it’s also good for your loved ones. They won’t have to figure out where your paper bonds are or how to cash them. This will make managing your estate much easier after you’re gone.

Final Thoughts

If you have US Savings Bonds in paper form, consider converting them to an electronic account. This simple switch can make your life and the lives of your family members much easier in the long run. Why not simplify your estate today? It’s one of the best gifts you can give your family for the future.

MORE INFORMATION

Find more information about this and other topics at www.hawkinselderlaw.com. You can also call us at 812-268-8777.

ABOUT THE AUTHORS

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers, and active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter, a Fellow of the American College of Trust and Estate Counsel, and a member of the Illinois State Bar Association.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

© Copyright 2023 Hawkins Elder Law. All rights reserved.

[See our Disclaimers page about relying on our website’s contents.]

Organizing Records and Information for Estate Planning

This couple is gathering documents or the initial meeting with their estate planning lawyer

Estate planning is an essential process involving many financial, legal, and personal decisions. Organizing records and information properly can make this process smoother and more efficient. We get many questions about storing and organizing records at our public speaking events, so this article offers tips and links to helpful checklists and questionnaires to prepare for estate planning.

1. Organizing Essential Records and Information for Estate Planning

A well-organized estate plan starts with gathering all necessary documents and information. Records and information for estate planning include wills, trusts, property deeds, investment documents, and more. websites offer valuable tips and resources to help you organize these documents effectively. While it may seem easy, most people are less organized than they believe. However, a checklist or questionnaire designed for estate planning can guide you through this process. Families of nursing home residents and people interested in updating their estate plans can download checklists and questionnaires from our website at https://www.hawkinselderlaw.com/intake-forms/.

2. Create a Digital Archive

In today’s tech-savvy world, having digital copies of essential records is crucial. Scanning and storing these in a secure digital archive ensures that they are easily accessible when needed. While home computer storage is a good start, risks of fire and storm damage make it risky to store everything in just one location. So, we encourage folks to use Microsoft’s OneDrive, Google Drive, or one of the many other affordable cloud-based storage solutions.

3. Designate a Trusted Person

Appointing a trustworthy individual who knows where all your information is stored and how to access it can be a lifeline in emergency situations. Whether a family member, a friend, or a professional, they act on your behalf when needed.

4. Consult Professionals

Estate planning is a legal matter that requires expert guidance. Speaking with an estate planning attorney can ensure that your plan complies with current laws and meets your specific needs.

Conclusion

Organizing records and information for estate planning is an essential step in preparing for the future and protecting your legacy. Although we could say much more, we hope this article helps you streamline the process.

More Information

For more information on this subject, see these previous Hawkins Elder Law Blog articles:

https://www.hawkinselderlaw.com/how-long-should-you-keep-records/;

https://www.hawkinselderlaw.com/personal-business-records-organization-tips/; and

https://www.hawkinselderlaw.com/organized-records-minimize-health-crisis-chaos/. You can also contact us online at https://www.hawkinselderlaw.com/contact-us/ or call us at 812-268-8777.

About The Authors

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers, and active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter, a Fellow of the American College of Trust and Estate Counsel, and a member of the Illinois State Bar Association.

While both Hawkins are admitted to practice law in Indiana, Jeff Hawkins is also admitted to practice law in Illinois.

© Copyright 2023 Hawkins Elder Law. All rights reserved.

[See our Disclaimers page about relying on our website’s contents.]

Buying Life Insurance For Children?

This cartoon baby's life insurance policy is a poor investment of money that could help finance the baby's education.

Is children’s life insurance a smart investment for your family? As we previously wrote in the Hawkins Elder Law Blog (https://www.hawkinselderlaw.com/why-should-you-buy-insurance/), a life policy is an important safety net for some people. However, this article explains why life insurance for children may be a poor investment.

Life Insurance Purpose and Investment Performance

Life Insurance Purpose

A life policy can help replace a dead breadwinner’s income to help the policyholder’s children endure income loss more easily. Young children don’t usually earn much income, so the income replacement purpose does not apply to kids’ life insurance policies.

Children’s Life Insurance Investment Performance

Life insurance policies for children are not sensible investment options. Traditional policies grow at a fixed rate, while variable policies are tied to an investment portfolio’s performance. Regardless, a diversified investment portfolio or even some high-yield savings accounts may outperform these policies’ returns. Plus, high inflation rates undermine fixed-rate and variable policies’ growth performance.

Administrative costs consume significant portions of the insurance premiums. In comparison, low-cost index funds or exchange-traded funds (ETFs) generally have lower fees and may provide better returns.

Funding College Savings with Life Insurance Policies

Some agents suggest buying life insurance for children to fund their college costs. However, dedicated college savings plans like 529 college savings plans and Coverdell Education Savings Accounts offer state income tax deductions and tax-sheltered growth.

Children’s Life Insurance Policies’ Poor Odds

Consider the risk factor before insuring a child’s life. While a child’s death is tragic, a child’s death is statistically unlikely. Those bad odds make life insurance for children unjustifiable.

Exposure to Nursing Home Costs

When elderly parents need nursing home care, long-term care costs often push them to surrender life insurance policies for their cash values. So, holding their children’s life insurance policies is like burning money as fireplace kindling in those cases.

Probate Estate Administration

Although effective estate planning would help, children’s life policies are often tied up in their deceased parents’ estates.

MORE INFORMATION

See more discussions of life insurance and other investment alternatives at:

ABOUT THE AUTHORS

Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers. They are also active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

Jeff is a Fellow of the American College of Trust and Estate Counsel and the Indiana Bar Foundation. He is also a member of the Illinois State Bar Association, and he served as the 2014-15 President of the Indiana State Bar Association.

Find more information about these and other topics at www.HawkinsElderLaw.com. You can also call us at (812) 268-8777.

© Copyright 2023 Hawkins Elder Law. All rights reserved.

[See our Disclaimers page about relying on our website’s contents.]

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