The post Does a College Student Need a Power of Attorney? A Guide for Young Adults appeared first on Becker & House.
]]>Financial advisors and estate-planning attorneys sometimes suggest that a young adult sign a power of attorney, often called a “POA,” after turning 18, particularly when heading off to college or traveling abroad. But what does a power of attorney actually do? Why might a college student or other young adult need one? And does signing one mean giving up control?
A power of attorney is a legal document in which you authorize another person to act on your behalf.
The person signing the document is called the principal. Although people often say that they are naming someone “as their POA,” the power of attorney is actually the document, and the person named in the document is the agent.
There are two primary types of powers of attorney: A financial power of attorney and a health care power of attorney.
A financial power of attorney authorizes your agent to handle your financial matters on your behalf. Depending on how it is written, the authority may be broad or limited to particular matters.
For example, a financial power of attorney may allow your agent to do the following on your behalf:
A financial power of attorney can be valuable during a serious emergency. For example, if you are hospitalized for an extended period, your agent may be able to make sure your rent and other bills are paid.
It can also be useful when everything is going well. Suppose you are studying abroad and a problem with your bank account must be addressed while you are away. A properly drafted power of attorney may allow your agent to work with the bank on your behalf.
Because a financial power of attorney can grant significant authority, the document should be tailored to the amount and type of assistance you actually want and need.
A health care power of attorney allows you to select someone to make health care decisions for you if you cannot make or communicate those decisions yourself.
For example, if you are unconscious after an accident, your agent is able to make urgent decisions about your medical care, and the medical team will know to speak with your agent about important information such as your medical history or medication allergies.
You may also want a separate document called a HIPAA authorization. That document can help your medical providers know that they are authorized to share information with the people you choose.
This can be useful even when you remain capable of making your own health care decisions. For example, you may want a parent or another trusted person to help you:
Hospitals, physicians, colleges, and other institutions may have their own authorization forms and procedures. In addition, academic records are protected by the Family Educational Rights and Privacy Act, commonly known as FERPA, so additional authorization may be required if you wish for your agent to have access to your school records. An attorney can help you determine which documents are appropriate for your circumstances.
Signing a power of attorney does not prevent you from continuing to manage your own finances or make your own decisions as long as you’re able to do so. You remain free to access your accounts, pay your bills, sign documents, direct your medical care, and otherwise handle your affairs.
However, that does not necessarily mean the power of attorney has no effect while you are able to act for yourself. The power of attorney should specify when the agent’s authority starts. Most often, a power of attorney will either a) give the agent the power to act immediately once the document is signed, or b) allow the agent to act only if the principal is incapacitated (the latter is called a “springing power of attorney”).
Once the power of attorney takes effect, your agent has the legal authority to take any actions permitted by the document. The agent is required to act in your best interest and to keep you informed of what they are doing, but does not need to obtain your separate approval each time the agent acts.
There are advantages to giving the agent authority to act immediately, even if you are not incapacitated. This can be convenient when you want help dealing with a bank, insurer, lender, medical provider, or other institution, and can also help to protect you and your property in the event of an emergency. Of course, it also gives your agent a lot of power, with the potential to be abused. This is why you should name only someone you trust completely.
An attorney can help you determine when your agent should be permitted to act, and what powers your agent should have. The power of attorney can be drafted to fit your needs. For example, it may:
As long as you have capacity, you can generally revoke the document, replace the agent, or sign a new power of attorney. It is also important to know that while your agent under a health care power attorney may be able to take certain actions such as scheduling appointments or talking with your doctor, you are in charge of your health care decisions as long as you’re capable of making them.
Some states, including Arizona, recognize supported decision-making agreements for adults with disabilities. Under a supported decision-making agreement, a trusted supporter may help the disabled adult obtain and understand information, consider available choices, and communicate the disabled adult’s own decisions. However, the supporter cannot make decisions or act on behalf of the disabled adult. If you believe a supported decision-making agreement may be appropriate for you, ask your attorney to explain the advantages or disadvantages of a supported decision-making agreement, and help you compare it to a power of attorney.
A power of attorney gives the agent significant authority. You should choose someone who:
Before naming someone, talk with that person about the role. Make sure the person is willing to serve and understands when you expect the authority to be used.
You should also consider naming a backup agent in case your first choice is unavailable or unable to act.
The documents that are appropriate when you begin your adult life may not be the same documents you want after college graduation, marriage, a move, or another major life change.
Powers of attorney are not necessarily permanent choices. They can be reviewed and updated as your circumstances, needs, and trusted relationships evolve.
These are powerful legal documents, and the requirements vary by state. Before signing a power of attorney, speak with an estate-planning attorney who can explain the document, answer your questions, and help ensure that it is tailored to meet your particular needs.
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]]>Becker & House represents clients who have chosen cryopreservation through Alcor Life Extension Foundation. As part of that planning, we offer three specialized trusts designed to meet Alcor’s funding and compliance requirements while addressing our clients’ long-term goals.
The post Becker & House Cryonics Trust FAQ appeared first on Becker & House.
]]>Becker & House represents clients who have chosen cryopreservation through Alcor Life Extension Foundation. As part of that planning, we offer three specialized trusts designed to meet Alcor’s funding and compliance requirements while addressing our clients’ long-term goals.
These trusts fall into two broad categories:
– Funding Trust – designed to fund your cryopreservation through Alcor
– Revival Trusts – designed to preserve assets for your use after revival
Our firm works directly with Alcor to ensure that all trusts we prepare meet their requirements and are properly coordinated. Each type of trust serves a distinct purpose, and understanding the differences will help you choose the best fit for your goals.
| Alcor Funding Trust | Multi-Investor Future Income Trust (MIFIT) | Custom Revival Trust | |
| Primary Purpose | Funds your cryopreservation | Preserves up to $500,000 for your use after revival | Preserves more than $500,000 and allows greater customization for future use |
| When Funded | During your lifetime | At your death (through estate plan or beneficiary designation) | Typically at death, but may also be funded during life |
| Trustee | You (while living and competent) | During Life: You
After Cryopreservation: TrustBank (a corporate trustee) |
During Life: You
After Cryopreservation: Corporate trustee (Becker & House helps coordinate options) |
| Revocability | Revocable while you are alive and have capacity, but you must provide Alcor notice of certain changes | Revocable while you are alive and have capacity | Revocable while you are alive and have capacity |
| Investment Vehicle | Held as liquid assets (must equal 2× Alcor’s required funding amount) | Invested in MIFIT Investments, Inc. | Broader investment options directed by trustee under custom provisions |
| Customization | Minimal—Alcor requires standard form | Limited—options for remainder beneficiary, Alcor donations, emergency preservation spending | Highly customizable—may include multi-beneficiary structures or continuing trusts after revival |
| Alcor Coordination | Requires Alcor approval before acceptance | Provided to Alcor for recordkeeping (no approval required) | Coordinated with Alcor and trustee for review and approval; complex terms may require discussion |
| Common Use Case | Direct, compliant funding method for cryopreservation | Simple revival fund for under $500k | Complex or high-value revival planning with multiple goals |
| Risk of Non-Approval | Low (if standard form used) | None (no formal approval required) | Moderate if provisions are overly complex or impractical |
**Q:** What is the purpose of the Alcor Funding Trust?
This trust provides one approved method for funding your cryopreservation with Alcor. It ensures that liquid assets are available and verifiable in advance of your legal death.
**Q:** Who serves as trustee?
You serve as the trustee while you are alive and have legal capacity. If you become incapacitated or when you die, a successor trustee will be appointed to act as needed to fulfill the trust’s purpose. The trustee’s post-death obligations are minimal, and involve gathering the trust funds, distributing them to Alcor as needed for cryopreservation, and distributing any remaining funds in accordance with your wishes.
**Q:** How much must I fund the trust with?
The trust must hold at least twice the amount required by Alcor for your selected cryopreservation option. Proof of sufficient liquid assets must be provided to Alcor before approval. Ongoing reporting can be required by Alcor to ensure adequate funding.
**Q:** Is the trust revocable?
Yes. You may revoke the trust at any time while living and competent. However, if you revoke it, Alcor is not obligated to provide cryopreservation unless alternate funding is provided.
**Q:** Can the trust be customized?
No. Alcor requires the Funding Trust to follow a standard form. Minor edits may be made for administrative reasons, but substantive changes will not be approved.
**Q:** What happens if I change my mind or my finances change?
If you revoke or withdraw the assets, those funds are returned to you. However, this will terminate Alcor’s funding assurance until a new funding source is approved.
**Q:** How does Becker & House assist?
Our firm prepares the trust, ensures compliance with Alcor’s requirements, and submits proof of funding for approval. This coordination helps minimize processing delays.
**Q:** What is the MIFIT?
The MIFIT—short for Multi-Investor Future Income Trust—is a type of ‘revival’ trust. Its purpose is to preserve assets for your use after you are revived from cryopreservation.
**Q:** When and how is the MIFIT funded?
The trust is funded after your death, typically through your estate plan or a Payable on Death/beneficiary designation on an account or life insurance policy.
**Q:** Who manages the trust?
During your life, as long as you are competent, you act as Trustee. Following your cryopreservation, or in the event you become incapacitated during your life, a corporate trustee—Trust Bank—serves as trustee. Once the trust is funded at your legal death, the trustee purchases shares in MIFIT Investments, Inc., which are held until your revival.
**Q:** What happens when I am revived?
When you are revived, the trustee will sell your shares in MIFIT Investments, Inc., and distribute the proceeds to you, providing financial resources for your new life.
**Q:** Is the MIFIT revocable?
Yes. The MIFIT is revocable while you are alive and have capacity. After your death or incapacity, it becomes irrevocable.
**Q:** How much can I contribute?
The MIFIT is designed for clients funding $500,000 or less. Clients with larger intended contributions should consider a Custom Revival Trust.
**Q:** What customization is available?
You may choose where funds go if you cannot be revived, whether to make optional annual charitable contributions to Alcor, and whether some funds may be used to help maintain your cryopreservation in an emergency.
**Q:** Can I change the investment approach?
No. The MIFIT operates as a pooled investment structure through MIFIT Investments, Inc., and individual investment direction is not available.
**Q:** Does Alcor need to approve my MIFIT?
No. The completed trust is sent to Alcor for their records, but formal approval is not required.
**Q:** What are common issues clients should be aware of?
Occasionally, clients wish to add custom terms or control how the funds are invested—these changes are not permitted in the MIFIT format. For more flexibility, a Custom Revival Trust is a better option.
**Q:** Do I need to have an estate plan in place, other than the MIFIT?
Yes, you should have documents in place to effectuate your wishes regarding your estate plan, in addition to the MIFIT Trust. For clients who live in Arizona, we are happy to assist with that estate plan. For clients in other jurisdictions, we can provide referrals and coordinate with your local estate planning counsel.
**Q:** What is the Custom Revival Trust?
This is a fully individualized revival trust for clients who wish to preserve more than $500,000 or include detailed provisions for how their funds will be used during cryopreservation and after revival.
**Q:** How is it funded?
The trust is usually funded at your legal death through your estate or a beneficiary designation, but it can also be funded during your lifetime if desired.
**Q:** Who serves as trustee?
During your life, as long as you are competent, you act as Trustee. Following your cryopreservation, or in the event you become incapacitated during your life, a corporate trustee serves as trustee. Becker & House assists in coordinating and recommending suitable trustee options.
**Q:** Is the Custom Revival Trust revocable?
Yes. It remains revocable during your lifetime while you have capacity, allowing you to adjust terms or revoke the trust entirely. It becomes irrevocable upon your legal death or incapacity.
**Q:** What makes it ‘custom’?
This trust allows broad discretion to design how funds are held, managed, and distributed during your cryopreservation and after revival. A Custom Revival Trust allows for a good deal of flexibility. Alcor and the trustee must review the final trust terms, but generally are willing to accept custom provisions as long as they do not unduly expand their respective obligations under the trust. We do our best to incorporate the client’s wishes into the trust. However, in some cases, highly specific or conditional provisions may be rejected as unworkable.
**Q:** Can I specify what happens to the funds after revival?
Yes. You may choose for the funds to remain in trust or be distributed to you directly. Some clients include provisions for ongoing family or philanthropic support.
**Q:** Can I include charitable gifts to Alcor?
Yes, if you wish to make charitable gifts to Alcor, the Custom Revival Trust can provide for that.
**Q:** What happens if my requested provisions are too complex?
In those cases, Becker & House can include a non-binding ‘statement of wishes’ to express your preferences, but we encourage simplicity to avoid issues with trustee or Alcor approval.
**Q:** How are the funds invested?
The Custom Revival Trust allows broader investment flexibility than the MIFIT. Clients may offer guidance as to how they would like trust funds invested. However, once the client is cryopreserved, investment decisions ultimately are made by the corporate trustee, and must align with the trust’s purpose and fiduciary standards.
**Q:** Can I change terms later?
Yes. While you are alive and have capacity, the Custom Revival Trust may be amended or revoked. Once funded at legal death or upon incapacity, it becomes irrevocable.
**Q:** Do I need to have an estate plan in place, other than the Custom Revival Trust?
Yes, you should have documents in place to effectuate your wishes regarding your estate plan, in addition to your Revival Trust. For clients who live in Arizona, we are happy to assist with that estate plan. For clients in other jurisdictions, we can provide referrals and coordinate with your local estate planning counsel.
Becker & House is honored to assist clients planning for cryopreservation with Alcor. Each trust we prepare is designed to balance your personal goals, Alcor’s operational requirements, and long-term administrative feasibility.
We encourage you to contact us early in your planning process so we can help you determine which trust—or combination of trusts—best aligns with your objectives.
This FAQ is provided for informational purposes only and does not constitute legal advice. Establishing a trust involves individualized legal and financial considerations. You should consult with Becker & House or another qualified attorney for advice specific to your situation.
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]]>The post What Do I Do With My IRA? appeared first on Becker & House.
]]>They have managed to save quite a bit, and are currently making “catch-up” contributions to increase their savings. With good investment advice, they expect to ultimately have more than they need to live on after they retire, so they want to make sure they have a good plan in place to pass any remaining IRA benefits on to their kids. They’ve gotten advice on this from each of their trusted professionals, but still aren’t quite clear on what they’re supposed to do. Why is this so hard to figure out?!
What’s the Deal with IRAs?
IRAs and 401(k)s (which we’ll refer to as “retirement benefits” or “retirement accounts” for ease), require special consideration by tax, financial, and estate planning advisors. Why? Because they can be such valuable investments that we want to preserve and plan for them, yet they’re also subject to a complex web of tax rules. What makes these assets so valuable? A traditional (i.e., non-Roth) IRA or 401(k) is tax-deferred, meaning that it is allowed to grow and accumulate income tax-free until money is withdrawn from the account. For those who start saving early, years of tax-free compounding can lead to substantial growth, causing the retirement benefits to outperform other investments that generate income tax.
Ideally, these retirement accounts would remain untouched for as long as possible, because of this tax advantage. However, in order to preserve the status of these accounts as retirement savings, rather than a tax-preferred method of accumulating wealth for future generations, U.S. tax law requires the account owner to begin taking distributions at a certain age, currently 73 (for some, these distributions can be postponed until retirement, if occurring later). If you are close to or over that age, you likely are familiar with these “required minimum distributions” or RMDs.
Similarly, if you do not withdraw all of your retirement funds during your life, the beneficiaries who inherit them will also be required to take distributions from the account. How much do your beneficiaries have to withdraw each year and for how long? That’s where things get complicated. Prior to 2020, individual beneficiaries were able to “stretch” distributions from inherited retirement accounts over the beneficiary’s life expectancy. It was also possible to name a trust as beneficiary and stretch RMDs over the life expectancy of the oldest trust beneficiary if the trust met certain requirements. However, a change in the law in 2020 limited this life-expectancy “stretch” to only certain beneficiaries, requiring other beneficiaries to withdraw the funds within a shorter period of time, effectively accelerating the payment of income tax and lessening the benefit of the tax deferral. The 2020 law (known as the SECURE Act) also introduced a complex set of rules for determining which trust beneficiaries are “counted” for purposes of determining RMDs for trusts named as retirement account beneficiaries.
This change in the rules limited some of the advantages of planning for retirement benefits, and made it difficult to determine how long beneficiaries will be able to stretch RMDs in many cases. These changes have made it challenging for attorneys and financial advisers to know how to best plan for retirement benefits, often leaving clients understandably frustrated and confused.
Some Good News
Fortunately, there are still ways to maximize the benefits of your IRA or 401(k), both during your life and for your beneficiaries who may inherit them after your death. Your estate planning attorney and other advisors can work together to recommend the best way to plan for these assets. Here are a few points to consider when you talk with your estate planning team about your retirement benefits:
Estate planning for retirement benefits is a subject that is undoubtedly complex and can be confusing. If you’re not sure what to do with your IRA or 401(k), talk to an estate planning professional who can help you make sure you you’ve got a plan in place that works for you and your family.
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