A trust is an estate planning tool that allows a person to control their assets during their lifetime and make provisions for incapacity and death.
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One thing you should know about irrevocable trusts is that, unlike revocable or living trusts, irrevocable trusts cannot be changed or amended. They are set in stone.
A second thing that you should know about irrevocable trusts is that they have significant advantages, and also unique disadvantages.
Irrevocable trusts are often used as a person advances in age. Once they know that their circumstances are unlikely to change, we sometimes recommend the use of an irrevocable trust for their estate plan.
Why would someone want an estate plan that they cannot change?
Irrevocable trusts offer many advantages. These include:
Reduction of estate tax complications and reduction of taxes,
protection against creditors,
They can utilize special features to build wealth for future generations,
They can prevent loss of assets if long-term care is necessary,
and more.
However, there are many drawbacks of an irrevocable trust as well. Some of these include:
They cannot be changed, so no revisions will be allowed
They are very costly
A tax return will need to be added each year.
There is some loss of control.
The third thing that you should know about irrevocable trusts is that many of the drawbacks can be remedied by careful drafting.
We help our clients decide if an irrevocable living trust is right for them. If it is we find ways to draft around potential issues and downsides, such as putting in language allowing the grantor to replace the trustee if they are not acting appropriately.
Let us know if you have questions as to whether an irrevocable living trust is right for you or your loved ones.
Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.
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Recently, a health network in Pennsylvania was hacked by a Russian ransomware gang called BlackCat.
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BlackCat attacked a physician practice in Pennsylvania, but did not disrupt healthcare operations.
A ransomware payment was demanded, but refused by the healthcare system.
Sensitive information was accessed and the health system revealed the attack itself.
Is your practice prepared for a potential attack?
Does your staff know how to respond to a demand for ransomware? Is your healthcare data secure.
If not, now is the time to prepare.
Ransomware attacks continue to plague the healthcare system.
You need to make sure that your data is secure and your practice is protected against vulnerabilities.
How can you protect your practice against vulnerabilities?
Test your systems.
Know what security you have in place and make sure it is all up to date.
Look for any vulnerable areas and find out how best to patch them.
Make sure your policies, procedures and plans are accurate for your systems. They need to be truly representative of what actions you will take to protect your practice.
Train your employees on your policies and procedures.
All employees should be familiar with your breach readiness and response plans. Knowing how to act in the event of a breach can save your practice.
Your backups need to be secure to ensure that your data is safe.
If you need help updating your practice and protecting your systems and data, call us today.
If you have questions or need help with your healthcare practice, employee training, or security, contact Rickard & Associates today.
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Some of our clients are interested in preserving wealth for future generations, and in that instance, we sometimes recommend starting a family bank.
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A family bank is an estate planning tactic to help preserve wealth for generations to come. They can be structured in a variety of ways to meet that family’s needs, however, they are intended to help benefit a group of family members.
If our clients give their children distributions at their death, it is usually gone quickly. Even if the child invests the money, it does not really transfer to future generations.
The family bank is an incredibly useful tool.
Our clients with family banks are able to charge less interest for loans, set different policies than a bank may have, and encourage goals that are important to that family.
The average American pays over $280,000 in interest fees during their lifetime.
With a family bank, interest helps grow wealth in multiple ways.
Borrowers will be charged less than if they go to a bank and the family bank accrues the interest.
Family banks can also provide some asset protection and possibly help reduce estate tax liability.
If you want to think about preserving wealth for future generations, instead of distributing any assets outright at your death, call us today to discuss setting up a family bank.
Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.
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Saudi Arabia increased its stake in electric-vehicle maker Lucid (NASDAQ:LCDs) by 9% last quarter, an SEC filing was disclosed yesterday. The news comes amid speculation about the Middle Eastern country completely taking over the EV maker.
Saudi Arabia Bought More LCID Stock
In the fourth quarter, the country’s Public Investment Fund (PIF) bought nearly 200 million more shares of Lucid, bringing its total position in the automaker to 1.1 billion. The purchases increase the fund’s stake in the EV maker to 62%.
LCID is by far the largest holding in the PIF and the recent purchase has LCID make up close to 25% of the fund’s portfolio. The fund has also recently increased its stake in its second-largest holding Activision Blizzard (NASDAQ:ATVI). Yet ATVI stock only makes up 9% of the fund’s portfolio and it owns just 5% of the videogame maker.
Rumors of a Takeover
Last month, the business news website Betaville reported a rumor that the Saudis could seek to acquire all of the shares of LCID stock that they did not already own. There was also speculation that the country’s investment fund had already been recruited JPMorgan (NYSE:JPM) to work on such a deal.
The fund invested $1 billion in LCID in 2018, before the automaker’s shares were publicly traded. And in April 2022, the Saudi government announced it would purchase 50,000 EVs from Lucid. The country intends to buy 1,000 to 2,000 EVs annually from Lucid.
More About Lucid
As of yesterday’s market close, LCID stock has soared 51% so far this year. However, the automaker’s shares are still down 64% in the last year and had slumped 10% in the previous five trading days.
On Jan. 23, Citi resumed coverage of LCID stock with a “buy” rating. The firm is upbeat about the “company’s technology and product positioning.”
On the other hand, I’ve been bearish on the name, citing Lucid’s lack of brand strength and tremendous competition.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on US stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
The companies involved in the Rogers Communications Inc. the deal to buy Shaw Communications has extended the deadline to complete the transaction until the middle of February
Companies now say they hope to finalize massive telecom transactions by Feb 17th
The Canadian Press ·
Rogers is trying to buy Shaw in what would be, if it’s completed, the biggest merger in Canadian telecom history. (Evan Mitsui/CBC)
The companies involved in the Rogers Communications Inc. deal to buy Shaw Communications has extended the deadline to complete the transaction.
Rogers, Shaw, the Shaw Family Living Trust and Quebecor Inc. say they have extended the deadline to Feb. 17 from Tuesday.
If approved, the deal will see Rogers acquire Shaw, while Quebecor’s Videotron subsidiary will acquire Shaw’s Freedom Mobile wireless business.
The agreement is still awaiting approval by Industry Minister Francois-Philippe Champagne who must sign off on the transfer of wireless spectrum licenses from Shaw to Videotron.
The companies say they are continuing to work with the government to secure the final approval needed to close the transactions.
The deal cleared a key hurdle last week after the Federal Court of Appeal dismissed a Competition Bureau request to overturn approval of the agreement by the Competition Tribunal.
We often hear from clients many reasons why they waited so long to draft their estate plans.
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We often hear the same reasons over and over as to why people don’t have an estate plan or haven’t gotten around to drafting an estate plan.
Some of the most frequent reasons and why they shouldn’t stop you from having an estate plan are:
I don’t have enough money, property, etc. Estate planning is not just about assets. Estate planning is a way to protect your wishes, in the event of incapacity. If you have young children, estate planning allows you to choose their guardian, something should happen to you. Estate planning also allows you to direct medical and financial care, should you become incapacitated. Further, most people have more assets than they realize. Estate planning is for everyone, no matter the size of your estate.
I’m too young, I’ll worry about it later. We hear this often. Unfortunately, life can change in an instant. No matter how old you are, you could be involved in an accident or have an unexpected health issue. It is essential to get documents in place to protect you. While your documents may change over time, having foundational documents in place will help you later on.
I’m scared to talk about it. We understand. Talking about incapacity and death is not fun. However, once your estate planning is done, it will give you incredible peace of mind. It also allows you the ability to think about it and have documents in place before an emergency occurs. We help our clients have the difficult conversations and put their minds at ease with tailored solutions to their matters.
I did it online. Online estate planning can lead to a lot of issues. Online documents may not be the correct documents for your state or situation. They might not be legal, if they are for a different state and may fail to have the appropriate language. They are also not likely tailored enough to help best protect your interests and your assets. Online estate planning can lead to lengthy and expensive probate battles.
It’s too expensive. We know that estate planning comes with an upfront cost. However, this cost is much less than if your estate has to go through probate. It also allows you to make a plan for your assets, instead of letting the state decide where your assets go upon your death. Estate planning also provides you peace of mind by letting you decide who will get to make financial and healthcare decisions on your behalf. Good estate planning will help you protect your assets in regards to tax liability, future disputes and probate court costs. Upfront planning can save money in the long run.
None of the above reasons should keep you from completing your estate plan. It is always better to do an estate plan now, and update it in the future if need be.
We can help you determine what documents are best suited for your situation and help you get tailored language in place to protect you, your wishes, your family, and your assets.
Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.
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Healthcare continues to utilize telehealth platforms for appointments and various services. This will continue into the new year, thanks to legislative updates.
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While telehealth continues to expand and change, there are several notable updates.
So what’s new?
In Michigan, the Governor just signed a bill allowing psychologists to use telehealth with clients in multiple states. They will be able to temporarily offer in-person services in other states.
Michigan entered the Psychology Interjurisdictional Compact (PSYPACT). While psychologists will not have to be licensed to practice in other states, they will need to pay a fee to offer services in other states.
Further, a bipartisan omnibus appropriations bill from Congress included a two-year extension for Medicare telehealth flexibilities. The bill will be voted on shortly.
Overall the trend of supporting and encouraging the expansion of telehealth continues. However, this could change at any time.
If you are thinking of offering telehealth services, or if you already offer these remote services, it is essential that you stay up to date on current regulations.
We help our clients stay aware of changes to relevant regulations that impact their practices.
No matter the regulations, we encourage our practices to utilize the best technology available to them to protect their telehealth services.
Privacy and security are of the upmost importance when offering remote care. Patients need to know that their information is protected and their appointments are secure.
Your staff must be trained so that they understand that telehealth appointments and procedures should be as secure as in-person visits.
If you have questions or need help with your healthcare practice’s legal needs, contact Rickard & Associates today.
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Do you need help updating your Business Associate Agreement or negotiating contracts with third-party vendors? We can help. To contact us about your Business Associate Agreement, your vendor contracts or your other legal needs, call us today.
Skyrocketing hire and meals prices have firm: Well being care prices are also hovering, and what’s worse, they in all probability will rise far more and will assist hold total inflation elevated for a while, analysts say.
Customers are solely seeing slight will increase in premiums which have lagged total inflation, however these premiums might rise considerably subsequent yr as well being care prices catch up, in line with a Kaiser Household Basis (KFF) research on Thursday.
The medical care index, a subset of the patron worth index, accelerated to 0.8% in September from 0.7% inAugust. Over the previous yr, it was up 6%, the biggest 12-month enhance since 1993 however nonetheless under the general 8.2% tempo of inflation.
That lag in well being care inflation to total shopper inflation may very well be an ominous signal for customers.
“Most of the premiums for 2022 had been finalized within the fall of 2021, earlier than the extent of rising costs grew to become clear,” mentioned KFF’s survey, which included 2,188 interviews with non-federal private and non-private corporations from February by means of July. “As inflation continues to develop at comparatively excessive ranges, we might probably observe the next enhance in common premiums for 2023 than we now have seen in recent times.”
Inflation is anticipated to spice up annual US nationwide well being bills by $370 billion by 2027 in contrast with pre-pandemic projections, consulting agency McKinsey estimated in a report in September.
What do individuals pay now for medical insurance?
Annual household premiums for employer-sponsored medical insurance common $22.463, simply up from $22.221 final yr. On common, staff this yr are contributing $6.106 towards the price of household premium, with employers paying the remaining.
Employees at small corporations with lower than 200 staff pay greater than their counterparts at bigger corporations, KFF mentioned. Employees at small corporations on common pay $7,556 out of their paychecks yearly for household protection, in contrast with $5,580 for these at bigger companies,
“Employers are already involved about what they pay for well being premiums, however this may very well be the calm earlier than the storm, as latest inflation means that bigger will increase are imminent,” KFF President and Chief Government Drew Altman mentioned. “Given the tight labor market and rising wages, will probably be powerful for employers to shift prices onto staff when prices spike.”
Why is well being care getting costlier?
Larger prices of provides and labor are contributing to the will increase.
Early within the pandemic, well being care provide costs spiked amid provide disruptions and better demand. Between 2019 and 2022, pharmaceutical costs rose 21% and provides by 18%, McKinsey mentioned. These prices are nonetheless increased than regular however are displaying indicators of slowing.
In distinction, labor prices are nonetheless rising strongly and possibly will outpace the general inflation price, analysts say.
“Labor’s very important as a result of it has the potential to be persistent,” mentioned Shubham Singhal, world chief of McKinsey’s Healthcare, Public Sector and Social Sector observe.
He expects wages will proceed to rise because the well being care labor scarcity worsens whereas demand for providers grows, partly the results of an growing older inhabitants.
Between 2019 and March 2022, a measure of hospital labor prices known as the median labor expense per adjusted discharge rose 37% to $5,494 from $4,009, Kaufman Corridor consulting agency mentioned in a report in Might.
It is vital to take the time to discover your choices relating to Medicare.
When will well being care premiums go up?
Customers who purchase their very own insurance coverage might see steep premium will increase subsequent yr.
Throughout 72 insurers in 13 states and the District of Columbia within the Reasonably priced Care Act (ACA) Marketplaces, the median proposed premium enhance subsequent yr is 10%, increased than in recent times, early estimates by Peterson-Kaiser Well being System Tracker present. Subsidies could assist some customers keep away from full worth hikes, although.
Well being care costs are set at the very least a yr forward, making a delay earlier than wage will increase and different prices associated to broader inflation are totally integrated into well being care prices.
Suppliers who’ve handled hovering prices prior to now 18 months solely just lately are getting an opportunity to renegotiate funds and move on some added prices to insurance coverage firms or authorities entities.
By 2024, all employers’ prices “will probably be crushing in full drive,” Singhal mentioned. “A lot of that may fall to customers as a result of employers have premium sharing” with staff.
“It is a slow-moving practice,” he mentioned, however it’s coming.
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How do medical care prices have an effect on inflation and Fed price selections?
As a result of well being care, like hire, usually does not see common worth surges, when its costs rise, economists take into account this “sticky” or persistent inflation. They take a very long time to rise and a very long time to say no.
Inflation might keep increased longer and result in the Fed elevating its short-term benchmark fed funds price even increased to squash inflation. Most shopper charges comply with the Fed’s benchmark price increased, which makes borrowing costlier and discouraging spending. Much less spending means much less demand, which cools inflation.
In depth providers: Worth of products could also be stabilizing, however service prices stay excessive, fueling inflation
Inflation warning: Jackson Gap speech: Jerome Powell hints at extra aggressive Fed price hikes to repair inflation
How can the price of well being care be lowered?
Layoffs and growing productiveness can minimize prices, McKinsey mentioned.
Greater than 25% of executives in a McKinsey survey imagine they could have to chop at the very least 10% of their workforce, principally nonclinical staff like private care aids, within the subsequent six to 18 months, it mentioned.
Executives (66%) additionally wish to enhance productiveness with expertise, particularly in processing paperwork.
Longer-term, Singhal mentioned, the trade can speed up value-based care, which ties funds to the standard of care supplied. This contrasts with the dominant fee-for-service reimbursement, which pays suppliers for providers delivered based mostly on invoice prices or annual payment schedules.
One other technique could be shifting some hospital care to completely different websites. “Some surgical procedures could be carried out cheaper in an ambulatory surgical procedure heart as a substitute of a hospital,” Singhal mentioned. “House care settings can be the identical or higher high quality at decrease prices.”
Medora Lee is a cash, markets, and private finance reporter at USA TODAY. You’ll be able to attain her at [email protected] and subscribe to our free Each day Cash publication for private finance suggestions and enterprise information each Monday by means of Friday morning.
This text initially appeared on USA TODAY: Why well being care prices are about to skyrocket due to inflation
