Here in Part 3 of the series, we feature guest author and esteemed colleague, Patrick R. Bartelmie. Patrick is here to let readers know about times in which a traditional A-B Trust is still appropriate. Take it away, Patrick.

Thank you, Diane. – Patrick R. Bartelmie

Like Diane, I am an attorney focused on estate planning. Where Diane branches off into an Elder Law specialty, additionally, I provide legal solutions in Business Law. I have lived and worked here in the Los Gatos area most of my life, and it is important to me that resources like this exist. I am pleased to contribute to this important and timely topic.

With this post, we will look at what has Changed with the Tax Cuts and Jobs Act, and look at when a traditional A-B Trust still appropriate.

Change is Inevitable – What You Do About it is Up to You

The implementation of the Tax Cuts and Jobs Act (TCJA) on January 1, 2018 brought many changes to estate planning strategy. With the Federal Estate Tax exemption increasing to more than $11 million for each American, the focus of many married couple’s estate plans has shifted away from tax planning, and moved to probate and capital gains avoidance as well as preservation of income and appreciation on trust assets.

As a result, many revocable living trusts are being reformed so that there is no division of assets into a survivor’s or “A” trust, and a decedent’s, or, “B” trust upon the first death of a spouse. The original trust and its terms continue after the death of the first spouse, so that the couple’s assets are entirely included in the estate of the surviving spouse upon his or her death.

The purpose of such a trust structure is to achieve, not only a step-up in basis on the joint assets of the couple at the death of the first spouse, but a second step-up in basis upon the death of the survivor as well, once again eliminating (or greatly limiting) an estate’s exposure to capital gains taxes.

Avoid Capital Gains Entirely? No Trust Administration Work After the Death of the First Spouse?

Surely all trusts will want to take advantage of such a strategy, right? Not necessarily!

The trust structure described above will often allow the surviving spouse complete control over future amendments to the trust and the joint assets. Therefore, there is no guarantee that the decisions the couple made when the trust was drafted will be carried out by the surviving spouse.

However, there are still some particular situations where an A-B split trust structure is the best option.

SCENARIO 1 – The first scenario where an A-B trust is for young married couples with minor children or young adult children whom are not yet prepared to inherit valuable assets.

An unexpected death at a young age leaves a surviving spouse with many years ahead of them and the greater possibility of a future relationship and possibly even another marriage. An A-B split of the joint assets of the couple upon the first death will work to ensure that the wishes of the deceased spouse are carried out through the B trust. Gifting a legacy to one’s children is, and will always be, one of the pivotal reasons for drafting a trust. A B trust is insurance for one’s wishes to leave a legacy to their children against premature death.

SCENARIO 2 – The second scenario where an A-B trust structure remains appropriate is for blended families.

A second marriage with step children on one or both sides of the relationship can create a complicated family dynamic, especially when dealing with the division and distribution of assets at death. Often times parents and children will not agree on estate planning decisions in blended family situations. An A-B split of assets upon death can ensure that community and separate property is properly allocated and preserved for eventual distribution to one’s children, while remaining available in a B trust to provide for the remainder of the surviving spouse’s lifetime through income-only distributions or other such provisions.

These are only two examples of many scenarios when an A-B Trust is still appropriate. Trust decisions are different for every client and evolve over time for many people. The only way to ensure that the terms of your Trust match your current desires is to review the document with your attorney.”

Have Questions About Updates to Your Trust?

Both Diane Brown and I offer a FREE 30-minute Legal Consultation to new clients. If you have not worked with me before and have a trust, or I drafted your trust previously, feel free to call me to discuss your documents in light of recent changes in the law.

In August, Diane will continue with this series and I will see you here again in the Fall.

Patrick R Bartelmie, Attorney at Law
Estate planning, probate, trust administration,
and the formation and management of business entities
Call 408.364.1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

Do you know what an interrobang is? Well, it got me thinking that you might want to take a bit of a detour into something non-legal for a minute. Although, you will find, this is not so much the non sequitur one would think.

Here, in Part 1, you’ll learn what the interrobang is, where it came from, and if it might just be bound for greatness in the world. Let’s start at the beginning.

What on Earth is an Interrobang?

The interrobang (or interabang) deserves so much more attention than it gets. It’s quite likely that you may have never even heard the word before, and yet it describes something that, despite being small, contains wonderful emotional power in its very existence.

The interrobang is a piece of punctuation that appears as though a question mark and an exclamation point had a full-grown baby, and it serves as an end mark to a sentence; just like its more famous family members. The name for the glyph itself derives from the combination of the parent symbols. “Interro” comes from “interrogative”, as in questioning. And “bang”… well, there are some other fun-facts there.

Bang, has a few facets to its origin story. Back in the day, when type was set by hand and letter by letter, it was much easier to say, “Pass me a bang,” than, “Hand me an exclamation point.” Some say that comic books played a key role in using the word “bang” as shorthand, thanks to the use of dialog bubbles for inanimate objects. When a gun goes off in the story, “Bang!” says the pistol. “Bang” as slang, is also known to hale from computing, thanks to the loud sound the card punch made when coding the exclamation mark. So there you have it. Interro-bang. Pick your story and stick to it!

Who Came up with the Interrrobang?

It was created in 1962 by successful ad man Martin Specktor. The interrobang was defined in his obituary as “the typographical equivalent of a grimace or shrug… when a writer wished to convey incredulity”. Therefore, written sentences such as, “You aren’t thinking of wearing that, are you”, can be more cleanly and accurately conveyed if they end with a “‽” rather than a plain old question mark with an exclamation point tacked on its backside.

Thanks to the interrobang, phrases from classic commercials like “Where’s the Beef”, and famous movie lines such as Robert DeNiro’s emphatic utterance in Taxi Driver, “You talkin’ to me”, really do have a punctuation mark perfectly suited to their needs. Where’s the Beef‽

For Seinfeld fans out there, the interrobang may be the perfectly delicious, typographical embodiment of Frank Costanza, George’s irate dad. Can you picture the scene? Sitting with George in the little corner restaurant, Frank learns from his son that Jerry had caught sight of him on the street earlier in the day but failed to run over and greet him. Immediately offended, Frank shouts at the top of his lungs, “Why wouldn’t Jerry say hello‽” Now THAT deserves an interrobang!

The Little Interrobang that Could

Although it had been around for well over 50 years and can be found in a number of fonts like Arial Unicode, Lucida Sans Unicode, and Palatino Linotype, the interrobang has consistently experienced real difficulty catching on, and being taken seriously. The trouble? It seemed that, whenever one might see it outside of the realm of an ad agency’s copy department, this piece of punctuation would invariably be used as a novelty or merely an odd, little bit of grammatical fun. The poor interrobang was a fluffy curiosity. It had no street cred; no gravitas.

Fear not. Hope yet remains for the plucky interrobang. This little guy isn’t down for the count quite yet. Things may at last be looking up for this black sheep of the punctuation family, and the first real step toward serious, public acceptance of the interrobang may have come from – wait for it – a Judge!

And THAT’s where it all begins to come full circle! The interrobang is about to get some respect! Now that we have a Judge in picture, this article is beginning to make some sense. I hate to leave you hanging, but I do promise to tell you the rest of the Interrobang’s story in the next post or two.

What’s Coming Up Next?

Well, did you know that we have a series of posts on how IMPORTANT it is to take a fresh look at your old trust? There may be BIG holes in your bucket, and the money may be leaking out! If you want to get up to speed before July’s post on the topic, you can start at the beginning with Mrs. Smith, who saved her children $300,000 in taxes.

If you have questions about your trust, and if you wonder if it’s time to update it, simply make an appointment for a FREE 30-minute Legal Consultation  so I can look over the trust, tell you what it says, and see if an update is in order.  If I drafted your trust, call me, I will look at my file and let you know what I find.

NEWS – Next Month We Have a Guest Blogger

In July, we welcome my colleague Patrick R. Bartelmie. Patrick will drop in to let readers know about times when a traditional A-B Trust is still appropriate. Make sure to check back to learn more!

Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408-364-1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

What began as a simple visit became quite rewarding once I showed her that we could modify her trust in a way that would save her children $300,000 in taxes! If you missed that post, you may want to circle back. Click here for Part 1 in the series.

If you are ready to pick up where we left off, let’s get going!

Credit Shelter Trust – A Sad Story with a Happy Ending

Back to the importance of updating your trust – let’s look at another case where making changes now could save your money from draining away!

Take this example: The client comes in to see me not long after his spouse is deceased. If he has not yet funded the Credit Shelter Trust, we may choose to use a Note Receivable to fund it, and keep all of the appreciated assets in the Survivor’s Trust. Remember that the Credit Shelter Trust is irrevocable, so this option does not work for everyone. The client may wish to make changes to the entire Trust, but that will not be possible if it is not modified by court action. Still, in some cases, this less expensive fix will work.

Mr. Jones came in to see me after Mrs. Jones died. She was a wonderful woman, and it was a devastating loss. He has a trust from 1995 that now splits into two trusts. His total estate is worth $5,000,000, and consists of stocks and bonds. Under the estate plan, the assets would be allocated $2,500,000 to the Survivor’s Trust, and $2,500,000 to the Credit Shelter Trust.

If this next part makes your brain hurt, just skip to the line in bold for the outcome and give me a call. I know, this can be mind-numbing stuff, just bear in mind that there really can be significant financial benefit to updating certain trusts. It’s well-worth a quick check.

Now, Mr. Jones is not interested in changing the trust. That said, he has the power to change the trustees of any trust or sub trust, and both trusts distribute to his eight children in equal shares. If one is not alive, that share distributes to that child’s children.

Therefore, he would like to just allocate $5,000,000 to the Survivor’s Trust, and sign a note payable to the Credit Shelter Trust. Principal and interest will be due at the death of the second spouse. There will be no taxable income.

Variation on a Theme

Changing the facts slightly: What if the trust provides that the successor Trustee would be Bank of America? Mr. Jones does not have the power to change the trustee of the Credit Shelter Trust.  He wants to change the Trustee to his daughter, Pauline. What to do‽

Sidebar… Do you know about the “‽” interrobang? If not, I have a fun article for you to read next month. More on that later.

Okay, in this scenario, Mr. Jones wants to change the Trustee to his daughter, Pauline. How do we accomplish this? Well, we must modify the trust to allow him to make this change to the irrevocable Credit Shelter Trust. As you can see, the provisions of the older trusts will help us to decide if they need to be fixed and how to do so.

Still Have Questions?

If you are scratching your head, give me a call. The bottom line is that, if you have a trust drafted prior to 2012, you may have a MASSIVE HOLE in the bucket. Please be in touch, and let’s have a quick look to see if you do. Depending on what we find, you could put some serious cash in the pockets of your beneficiaries!

Never been to see me before? You are in luck! If you live in Los Gatos or surrounding area and have questions, you are in great company! I know this can feel overwhelming, and we have answers for you. If you would like to set up a time to talk with us at Brown Law Offices, please print out the certificate, good for a FREE 30-minute Legal Consultation, and call the office at 408-364-1234 to make an appointment.

Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408-364-1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

QUESTION:  How could the terms of my trust increase capital gains tax?

ANSWER:  If you have a trust drafted prior to 2012, you may have an old trust that was drafted to minimize estate tax at the expense of increasing capital gains tax.  If you fail to update the trust it’s as though there’s a MASSIVE HOLE in the bucket. Yikes! You really need to plug the leak so the money doesn’t drain away! This article, and others in this series, will shed helpful light on what you need to know on the topic.

If you have questions and don’t feel like reading, you’re welcome to call the office at 408-364-1234 and make an appointment. Newcomers receive a FREE 30-minute Legal Consultation. At our appointment I can look over the trust and tell you what it says.  Or, if I drafted it, simply call. I will look at my file and let you know if there is potential hole or something to consider. There may be a straight-forward fix. Now, on with the article!

Do You Know What Your Trust Says?

Really! Try reading it. If your trust was drafted prior to 2012 it may contain language that would stump a Rhodes Scholar; never mind a regular person. There was a very good reason for that type of drafting prior to the new estate tax laws that began with the 2000 tax act.

Time for a story that you’ll want to read! Names and details have been changed to protect privacy and help make a point. Bear with me…

A new client, “Mrs. Smith,” came in to see me the other day. She and her husband set up their living trust in 1982 with another attorney.  At that time the estate tax laws were vastly different from what they are today.

Keep in mind that back in those days the best way to avoid or minimize estate taxes was to have the trust divide, after the death of the first spouse, into two to three separate shares (OK – sometimes even more!). This minimized or eliminated the estate tax, which started at a tax rate of 55% for every dollar over $600,000. 

With this kind of planning, a couple could shelter up to $1,200,000 from estate tax, instead of the $600,000, resulting in a savings to the children of about $192,800. Woo hoo! The downside, however, was freezing the income tax basis* of appreciated assets in an irrevocable trust. In general, it was considered a fair trade in a fairly stable market, with a combined state and federal capital gains tax at 25%.

*income tax basis is usually the original purchase price plus any improvements the owner puts into the property while owning it.  Any capital gains on sale by the owner are computed by subtracting the owner’s income tax basis from the sale price.  Example:  I buy 10 shares of stock for $100.00.  $100.00 is my income tax basis.  I hold the stock for two years, and then sell the stock for $120.  The capital gain is $20 ($120-$100).

Back to Mrs. Smith

They set up their trust in 1982 with another attorney, and her husband died in 1989.  At that time the couple had $1,000,000 in assets.  Following the terms of the trust, Mrs. Smith worked with her prior attorney to allocate the trust assets between the Survivor’s Trust and the Credit Shelter Trust ($500,000 each).  Among the assets was a rental condominium in Sunnyvale, and at the time of Mr. Smith’s death the condominium was valued at $200,000 and allocated to the Credit Shelter Trust as part of the $500,000.

Mrs. Smith is coming to see me simply because she wants to change the trustee, and NOT because she was aware of a particular problem. Mrs. Smith is about to be very happy, and this is why… that condominium in Sunnyvale is now worth $1,400,000. Great news! Right?

Well, wait a minute. When Mrs. Smith dies, the condominium will distribute to her children with an income tax basis of $200,000.  They will sell it for $1,400,000 (or higher), and have a capital gain of $1,200,000. The capital gains tax is approximately $300,000 ($1,200,000 x .25).

Fortunately, there is a solution. Even though the Credit Shelter Trust is irrevocable, we can use the Court to modify the trust, and solve this problem. If Mrs. Smith and her children agree, we can ask the Court for an order modifying the trust, and save the children $300,000 in taxes!

AND… we can solve this problem even if both spouses are deceased, so long as we catch it before assets are distributed out of the trust.

Have Questions About Updating Your Trust?

It’s important to take a fresh look at your trust to see if there are any BIG HOLES in the bucket. There is more on this topic if it’s 2am and you are reading this in your jammies… Click to read about Mr. Jones in Part 2 of this series! 

Better yet, make an appointment with me for the FREE 30-minute Legal Consultation, during which I will look over the trust and tell you what it says.  If I was the one who drafted it, call me. I’ll take a look at my file, and let you know if there is something of interest that you may want to discuss further.

Either way, let’s find and plug any leaks so that money stays in your bucket where it belongs!

Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408-364-1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

If you missed that article, feel free to circle back and give it a read – “What is Elder Law – Definition” – Click Here

In this post we look at different life situations that can add to the complexity of trust and estate planning, we look at elder law and the aging parent, and see how an elder law attorney can help you.

Sort Out the Complexities – Family or Financial

As mentioned last month, it is always best to sort things out SOONER rather than later. When it comes to trust and estate planning, if you think things are crazy now with a family situation or financial entanglement, I know just how crazy it can get. It’s always best to be as proactive as you can be… now!

Some of the things that can become sticky wickets include: a second marriage (or more), a recent divorce, a disabled family member, the recent death of a spouse, the sudden incapacitation of yourself or spouse, ownership of one or more businesses, special needs children, children with emotional/behavioral challenges, real estate assets in multiple states… even a desire to leave your estate (or part of it) to charitable organization can create dissension and discord within a family.

If any of these are a part of your reality, I encourage you to at least TALK with an attorney now. And if there are senior family members are involved, please make sure the attorney you speak with SPECIALIZES in elder law.

Elder Law and Your Aging Parent

Older or disabled adults can face a variety of challenging situations and often have sensitive emotional and physical needs. An experienced elder law attorney knows how to tread with care through these delicate areas and facilitate even the most difficult conversations. Senior clients often find a family meeting to be a wonderful way to clarify their wishes, broach difficult topics in a safe environment, and do so with an advocate at their side. We have an article about that if you want to read more. Look for a link at the end of this post.

An elder law specialist always has one eye on the well-being of the aging parent and the other on the bigger picture. Family members who feel daunted by a parent with significant memory loss or health issues need an advocate as well. A skilled elder law attorney sees the whole picture and is there to help you handle the immediate issues and plan to tackle future matters – ideally, before they arise. This creates ease and allows you to spend enjoyable, stress-free, quality time with your parents!

How Can an Elder Law Attorney Help Me?

Elder schmelder! Yes, I know, we never like to think of ourselves as “getting old.” I will tell you though, the greatest gift you can give your kids is planning for those golden years now. And, rather than being in the throes of some medical emergency, to reap the benefit of setting things in order and make clear, informed decisions along the way – now THAT’S the gift of peace of mind for you!

When you work with an attorney who specializes in elder law, you have the support and expertise needed to look at things like wills and estate planning, changing existing documents, planning for long-term care and powers of attorney. You can also make a plan for minor or adult child with additional needs.

Why not go to a regular attorney for this guidance? In two words – Patience and Experience.

PATIENCE to review the details at whatever speed suits you. With the pace of the world today, things can quickly feel overwhelming. There is such a sense of accomplishment that comes with handling your affairs in a proactive way.

EXPERIENCE to know the particulars that make ALL the difference. An experienced elder law attorney knows what issues to address and when to address them. I have the practical knowledge needed to help you side-step planning pitfalls that will hinder others.

Have Questions?

If you live in Los Gatos or surrounding area and have questions, you are in great company! I know this can feel overwhelming and we have answers for you. If you would like to set up a time to talk with us at Brown Law Offices, please print out the certificate good for a FREE 30-minute Legal Consultation and call the office at 408-364-1234 to make an appointment.

To learn more about how a Family Meeting is Key in the Estate Planning Process – Click Here

Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408-364-1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

The elders of our community have specific needs. Some are to be expected and common among seniors, while other issues are unique to the individual. It helps to work with a legal specialist, trained and expertly practiced in addressing the variety of things that inevitably arise.

As an attorney who practices elder law in Los Gatos, CA, I see the complexities that seniors and their loved ones must navigate. From an emotional standpoint, it can feel overwhelming to the family. Often there are multifaceted legal issues and family dynamics that amplify an already challenging time. Being proactive is easier with a professional at your side. This is especially true when your loved one is unable to care for themselves or make legal decisions because of mental or physical disability.

My best advice is to reach out for support and guidance while things still feel manageable. You will thank yourself later. When you talk with an attorney who is expert in elder law and let them do the heavy lifting, it frees you up to really be there for your aging loved one.

What Does an Elder Law Attorney Do?

Simply put, an elder law attorney focuses on the needs and practical issues affecting older adults. Expertise in this field is also used to help people (of all ages) who have a debilitating medical or psychological condition. The common thread is “need of care” – now or in the near future.

Elder Law – Los Gatos Legal Help for Elders Includes

• Estate planning – draft new documents or change existing ones
• Trust administration
• Retirement plans
• Medicare and Medicaid
• Day-to-day healthcare
• Disability planning
• Powers of attorney for finance and medical
• Planning for long-term care, disability, assisted living, and skilled nursing
• Guardianship
• Conservatorship
• Explain your rights as a resident – be it assisted living, long term care, or skilled nursing
• Sort out the legal issues of complex families
• Make sense of intricate financial situations within the family
• Help in the event of elder abuse or fraud
• Advocate for the elderly, their family and loved ones
• Navigate highly complex issues relating to older adults
• Provide guidance, assistance, and peace of mind

As a lawyer who specializes in elder law, I focus my attention on the express needs of the senior and their family. Practical expertise within the judicial system, advocating for Silicon Valley seniors makes me uniquely qualified to side-step many of the unintended affects that could otherwise harm your estate.

Have Questions About Elder Law?

If you live in Los Gatos or surrounding area, have questions, and would like to get some of your initial questions answered, please make an appointment for a Complimentary 30-minute Legal Consultation at Brown Law Offices – Click view and print. Simply call the office at 408-364-1234 to see when we have our next opening, make your appointment, and mention that you will print-out and bring the certificate good for a FREE 30-minute Legal Consultation.

Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408-364-1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

Did you see them?

Elder Care – Signs of Financial Abuse – In this article we looked at the warning signs that need to be seen as Red Flags getting us to pay close attention!

Tips to Keep Seniors Safe from Financial Abuse – Here we looked at some of the many practical thing you can do as someone with an aging or elderly relative. Sometimes you can plan – other times you just have to fight the fires in front of you. We hope this post will make it easier for you to PLAN.

It was always our intention to put together a list of solid resources for you, however, we got sidetracked with the revised guidelines for online passwords that came out mid August 2017. Did you hear about that? Yikes! Well, if not, you can get caught up to speed here. CLICK to read 2017 Updates to Best Practices for Online Passwords – Wow!

Now that we have all THOSE topics covered, it’s time for the List of Resources as promised! Just a bit later than expected!

Protect the Elderly from Financial Abuse
Resource List

NCDA – National Center on Elder Abuse – What a great resource this is. From research to policy, and education, training, and awareness materials, the NCEA is a wealth of helpful, well-organized information.

CFPB – Consumer Financial Protection Bureau – Use the wealth of information put out by the CFPB; protecting older adults from fraud and financial exploitation

HHS – Department of Health & Human Services – Elder Justice – Millions of older Americans experience abuse, neglect, exploitation, or discrimination each year. Take steps to protect your physical, mental, and financial security.

FINRA – Financial Industry Regulatory Authority – “Are you a senior investor with questions about your brokerage account statement or an investment in a brokerage account?  Are you concerned that your account may have been mishandled by a broker? To help you with these and other investment-related questions, FINRA provides the Securities Helpline for Seniors.” Call Toll Free 844-574-3577 Monday through Friday from 9am-5pm EST

NAPSA – National Adult Protective Services Association – “…the goal of NAPSA is to provide Adult Protective Services (APS) programs a forum for sharing information, solving problems, and improving the quality of services for victims of elder and vulnerable adult mistreatment.  Its mission is to strengthen the capacity of APS at the national, state, and local levels, to effectively and efficiently recognize, report, and respond to the needs of elders and adults with disabilities who are the victims of abuse, neglect, or exploitation, and to prevent such abuse whenever possible.”

Answers to FAQs about Elder Abuse – In addition to financial abuse, elder abuse takes many forms. This link takes you to a resource with answers to many frequently asked questions about elder abuse in ALL its many forms.

Live in the Silicon Valley Area? We Can Help!

Protect Silicon Valley Elders – We are always a resource for your family. Brown Law Offices is based in Los Gatos, CA – Diane Brown, ESQ. We work with local clients and navigate the basic to the most complex cases to protect, care, and secure the financial, emotional, and physical well-being of your loved ones. As a Trust and Estate Attorney specializing in Elder Law we have seen it all. Contact us for an appointment and make sure to PRINT this certificate for a Free 30 Minute Legal Consultation.

Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408-364-1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

Most folks reading this article are not digital natives. You likely surfed the digital wave as it formed and continue to ride it today. You likely absorbed or were taught the technology and online skills that you currently have.

After repetitive, daily computer and smart phone use in your personal and professional lives, much about navigating the digital world come as easily as breathing. And, like breathing, you don’t have to THINK about it!

Our Parents Don’t Know What We Know

Why does this matter? Well, since our parents are adults like us, we can easily forget that they do NOT have the knowledge, exposure and repetitive use of technology that we have. We can easily take for granted what we know and mistakenly expect that our parents have same capacity to navigate the digital world.

Some things, like our parent’s ability to use a smart phone or iPad, can really remind us that tech gap is there. However, those of us lucky enough to have parents who have kept up with tech, would be wise to remember this… just because someone can use a device, does not mean they know what you know!

Things we Presume our Parents Know – But They Often Don’t

The list of tech-related things we know, that our parents don’t know, is LONG. If your parents are still learning, this list serves as a place to START the conversation and help educate them on things we full-on tech users just do as a matter of course. Our PARENTS may not have learned these things. By no means is this a complete list. We have internalized so many bits of critical information through the years. At least this gives your folks a fighting chance out there in DIGI-WORLD!

9 Things Every Senior MUST Know – Teach Your Parents Well

1. If it’s personal – don’t give it out or use in a password. Words or numbers that have ANYTHING to do with their life should NEVER be used when creating a password.
2. NEVER click a link in an email from someone you don’t know. Just don’t ever do it!
3. Presume it is a scam! Scammers have no scruples. Whether online or over the phone, sophisticated cons EASILY make you think they’re from a reputable company, a lawyer’s office, or the IRS.
4. Assume there is a skimmer device! Any time you use your ATM or Credit Card at the pump at a gas station or at an ATM machine (even one at your bank), you must first give a firm tug on the card reader BEFORE inserting your card, to make sure there is not a skimmer device attached.
5. Best Practices for Strong Password have changed! To create a STRONG password by today’s standards, string together a very random list of odd, unrelated words. Something like this: pine grange hair gnome weaver clam turmeric
6. If someone calls and asks for your name – say NO! Never say your name over the phone to a stranger. A person saying their name can be recorded and used by scammers as “voice verification” in perpetrating sophisticated identity theft.
7. Shred. Shred. Shred. Shred ALL old or unwanted financial docs, account statements, check stubs, voided checks, and unused, preprinted deposit slips. Things like old credit cards, hard drives, CD/DVDs and prescription bottles can also be shredded by many professional services – by the box and in real time as you watch.
8. Dedicate ONE credit card and email address for online shopping and bill payment. Only one!
9. When in doubt – check it out! Encourage your folks to reach out for help and ask questions.

Have Questions?
If You Live in the Area – We Can Help

Brown Law Offices is based in Los Gatos, CA – Diane Brown, ESQ. We work with local clients and navigate the basic to the most complex cases to protect, care, and secure the financial, emotional, and physical well-being of your loved ones. As a Trust and Estate Attorney specializing in Elder Law we have seen it all.

Contact us for an appointment and make sure to PRINT this certificate for a Free 30 Minute Legal Consultation.

Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408-364-1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

If you have the time, we encourage you to read, bookmark or share on social media the posts we’ve written about Scams, Fraud, and more. These are important topics – for us and the older friends and family we love.

Have the time to take a look?
CLICK HERE to find our reading list for articles about Scams, Fraud, Identity Theft, and How to Create Secure Passwords

Want to cut to the chase and FIX your passwords now? We’ll tell you!

How to Create a STRONG Password

Creating a STRONG password by today’s standards is actually pretty simple! Just string together a very random list of odd, unrelated words.

Replace old passwords that look like this:   Y3llowT@xi456!
With something like this:   pine grange hair gnome weaver clam turmeric

Sure it’s long and there are no caps, numbers, or special characters, however, the good news is that these days, this is much tougher to hack… and likely easier to key in!

With spaces in between each word —such as “turtle box super liquor”—instead of something like X30UnMx$#, the National Institute of Standards and Technology – NIST, also now says that users should be able to keep a password forever, with no expiration date.  The NIST says it regularly evaluates their guidelines and aims keep folks ahead of current threats from hackers.

What Makes This a Better Password?

So why is pine grange hair gnome weaver clam turmeric considered a great password?

In one word, ENTROPY.

A password’s entropy references how difficult it is to guess, how random it is, and what would be the length of time to break it. In a nutshell, it quantifies how tough a password is to crack. The longer the password, typically the more entropy there is; which is why the NIST guidelines have been changed. These long passwords are generally more complex and easier to remember. That’s a win-win!

Because we human beings are notoriously bad at creating password/passphrase made up of a string of truly random words, some great tools have been devised. Want to become COMPLETELY RANDOM? Have a look at our blog post: Passwords – Security Tips from Experts

Keep Those Passwords Super “SLICK” & Tough to Hack

• STRONG– Is it tough to crack by today’s standards?
• LONG– Is your password 20-40+ characters long?
• INDIVIDUAL – Is your password individual – used for only one account?
• COMPLEX– Is it a string of unrelated, random words with spaces inbetween?
• KOOKY– Does it include odd, funky, misspelled, highly personal, made-up words?

Example:   pine grange hair gnome weaver clam turmeric

Strong – Long – Individual – Complex – Kooky         …CHECK!
Congratulations! Your Super SLICK, entropy-rich password means those online hacking tools are more likely to have a tough time breaking your code!

Above all else… Create maximum entropy!

Tools to Create Maximum Entropy

Remember, the ultimate strength of your password or passphrase, is measured in “bits of entropy.” There is a cool tool available called DiceWare. By using some six-sided dice, you generate actual entropy via TRUE randomness. Each roll of the dice helps you build your passphrase via Diceware word lists. Using the dice, you simply create a series of random numbers and then convert those random numbers into random words using Diceware’s ever-changing lists! Super simple!

And now, according to the new guidelines, you don’t have to change your passwords every 90 days! So once you create that great password, you are set. For ONE account. Keep in mind, you still need a different password/phrase for each online account.

This article is well-written and explains things nicely and there are additional word lists available if you need them.

Read more about Diceware – Click Here 
New Diceware Word Lists – Have a Look Here

Using Diceware, you may wind up with a password/passphrase like:
high fang erba glower bobbin shouldn’t toucan fromage tear

Yes, this may look similar to the passphrase we discussed earlier, however, THIS one has been generated in a way that makes it more random. It has far more entropy than ANYTHING we could create in our head. Using tools like Diceware can really make your passwords/passphrases “Super SLICK!”

Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408-364-1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

If you missed that post, I suggest reading that first. Miss that UPDATE Part 1? CLICK HERE to catch up!

This post, UPDATE Part 2, picks up right where Part 1 left off.

Have You Done This with YOUR Password?

We human beings are such predictable critters! The 2003 National Institute of Standards and Technology guidelines for passwords (authored by Bill Burr) led us astray and left our accounts vulnerable to hacking. In addition to what we covered in September’s post, is the thought that passwords needed to be changed frequently. How often have we been notified that, your current password has expired? Turns out that changing our passwords every 90 days made our accounts easier prey for hackers. Here’s how.

To keep OUR lives simple, we’d typically (and predictably) update our current password by adding something very simple – a single letter, number, or punctuation – to the end. Sometimes we might add our birth year, age, or other bit of personal info generally available as digital data points. These bits of personal info have been aggregated over time through multiple online sources and comprise a readily accessible digital database. Scary stuff.

Human nature also worked to our disadvantage because we believed in the invincibility of our STRONG passwords. We thought, “Why not use that ONE strong password for multiple accounts?” This further compounded our vulnerability.

It’s okay, we have some solutions ahead!

10 NEW Password Habits to Embrace

First, break yourself of ALL of the Bad Password Habits listed in last month’s post and replace those old habits with these NEW ones! In 2017, the National Institute of Standards and Technology updated their password guidelines to include things like these.

1. Use long 20-40+ character passwords
2. Use multi-word phrases (passphrases)
3. Use odd and obscure words
4. Eliminate all word pairings
5. Use words completely unrelated to each other
6. Separate these words with spaces
7. Create as much randomness as possible
8. Think of nonsensical words, phrases, or spellings that might only make sense to you
9. Include unrelated words from multiple languages
10. Above all else… Create maximum entropy!

What is Entropy in a Password?

Entropy references several things. In a nutshell, it quantifies how tough a password is to crack. It considers how random it is and how long it would take to bust through. In the “real world” you have likely seen a safe with a combination lock, the type you might see at a convenience store or jewelry shop. These safes have a particular rating from Underwriters Laboratories. For instance, a safe with a “UL TL 15” burglary rating means that, “The door successfully resist entry for a net working time of 15 minutes when attacked with common hand tools, picking tools, mechanical or portable electric tools, grinding points, carbide drills and pressure applying devices or mechanisms.”

Think of “bits of entropy” as the things that determine the “burglary rating” of your password. The MORE bits of entropy you have in your password, the harder it will be to crack your online safe. The recommendation for LONG passwords/passphrases comprised of random words = MORE entropy!

A Few More Things You’ll Want to Know

How do you put all this into practical application in a way that will keep you sane and protect your accounts from the ner-do-wells out there? Click through to November’s post where we wrap up this extended series on Password Security and give you simple steps to make those online accounts as safe as possible!

Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408-364-1234

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.