Mon 24 Oct 2011

Special Needs Trusts: Managing to Protect Loved Ones with Disabilities

Posted by John L. Arenz J.D. under Financial Education, Investing and Wealth Management
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Some have heard of Special Needs Trusts, but do not fully understand their significance. A Special Needs Trust is like an ordinary Trust in that it acts as a container to hold property and assets for someone else’s benefit. However, a Special Needs Trust is carefully drafted to protect an individual who has a disability and who depends on receiving financial and personal support from the government. In many cases, that person’s receipt of benefits from the government is contingent on how much that individual owns (assets) and how much he or she earns (income).

There are two types of Special Needs Trusts. The first, known as a Self Settled Special Needs Trust, is funded with the assets of the individual with a disability. This is used when the individual in question has assets either through inheritance or as a result of a personal injury settlement. The second type of trust, known as a Third Party Special Needs Trust, is funded with the assets of another person, usually a family member or close friend, who wants to support the individual with a disability. In either case, it is critical that assets and income from the Special Needs Trust are not distributed directly to the beneficiary. Assets and income distributed directly to the beneficiary creates a risk of reducing or eliminating that beneficiary’s eligibility to receive government benefits. Moreover, assets must be distributed for specific purposes and not at the beneficiary’s direction.

There are a variety of government benefits and services offered to individuals with disabilities. These include Supplemental Security Income (SSI), Medicaid, Public Housing, Veterans benefits, and food stamps. In some programs, federal law controls who is eligible to receive benefits, and in others like Medicaid, state law controls these requirements. The rules and procedures differ between programs and change frequently. It is imperative that each member of the team charged with handling the management of a Special Needs Trust understands the laws and the latest developments in special needs planning and administration.

The concept of a Trust can be difficult to understand for someone who is not regularly working with one. Adding into the mix tax laws, fiduciary duties, and reporting requirements, an inexperienced Trustee can quickly become overwhelmed. Special Needs Trust administration adds another layer of complexity because improper management could cause the beneficiary with the disability to lose his or her eligibility to receive government benefits. For this reason it is crucial to appoint a professional Trustee who is experienced in special needs planning and administration.

The Wealth Management Group at United Bank & Trust is proud to offer you licensed and experienced trust administrators. We specialize in serving as trustee of a variety of trusts, including special needs trusts, irrevocable trusts, and revocable grantor trusts.

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Fri 14 Oct 2011

National Save for Retirement Week: October 16 – 22

Posted by Tonia-Marie Wander under Financial Education, Investing and Wealth Management
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When it comes to saving for retirement, there is never a better time than today to assess your prospects toward meeting your goals. And with our nation’s leaders declaring Oct. 16 through Oct. 22 as National Save for Retirement Week, you have a great opportunity.

National Save for Retirement Week is the first congressionally endorsed, national event formally calling on all employees to take full advantage of employer-sponsored retirement plans.

Experts predict that retirees will need from 80% to 100% of their pre-retirement income to maintain their lifestyle after retirement. Yet, surveys show that most Americans remain unprepared for retirement.

Many workers already participate in company sponsored retirement plans, which provide a foundation for retirement saving. And many workers will also be eligible for Social Security benefits at retirement age. But, that may not be enough. They will need to add additional retirement savings in order to live comfortably and securely during their retirement years – to fulfill their dreams.

For many Americans today it is important to begin saving for retirement – or increasing contributions to meet their goals. National Save for Retirement Week is dedicated to showing how important it is meet retirement objectives by contributing regularly and investing wisely for the long term.

Here are a few simple examples of what it takes to prepare for when it’s time to retire:
• Save just $10 per week in a deferred compensation plan for 40 years and earn an average rate of return of 7 percent, and you will have an account with over $100,000. That just shows the power of tax-deferred savings.
• If you start a little later, don’t be discouraged. You can still save more than $73,000, by setting aside $60 a month in a tax-deferred savings account for 30 years and at a 7 percent return.
• If you are saving now, and you increase your contributions, you can really make a difference in your final total. Over 30 years, adding $25 to your $100 biweekly contribution can increase your account from $264,327 to more than $330,409, assuming you earn 7 percent.
• Saver’s Credit. Sometimes saving seems really hard, especially if your income is limited. The government has a special Saver’s Credit just for you. If you are eligible, you can actually receive money back when you file your tax return.

There are many resources available on the Internet to provide you with the information you need to plan for retirement. Here are a few sites that will help you get started:
• Social Security Administration – You will find calculators to determine what your benefit will be, information on how to apply for benefits and other information about the government retirement system.

• American Savings Education Council – A useful calculator helps you estimate how much you need to save to meet your retirement goals as well as a number of savings tips and useful brochures.

If you would like assistance in establishing your retirement savings goals, please contact me at United Bank & Trust. I am here to help.

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Fri 23 Sep 2011

Reason #3 Why United Bank & Trust Is Supporting the Big House Big Heart Race!

Posted by Pam Jones-Sexton under Banking, Health Care Services
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First, we covered the U-M Cardiovascular Center, then the U-M Program for Neurology Research & Discovery, and finally let’s review the importance of C. S. Mott Children’s Hospital and Women’s Hospital.

The leaders and best are about to get even better with the opening of the new University of Michigan C.S. Mott Children’s Hospital and Von Voigtlander Women’s Hospital. This state-of-the-art facility will help us continue to evolve, transform and drive the future of children’s medicine and pregnancy and childbirth care. The goal is to deliver the best in patient and family-centered care for you and your family.

The new hospital, by the numbers:
• 12-story inpatient wing and a 9-story outpatient wing
• 1.1 million square feet
• 348 beds, including 50 private maternity rooms within the Women’s Hospital Birth Center and 46 private NICU rooms for families to celebrate the birth of their new babies
• 16 operating rooms and 2 interventional radiology rooms
• The new hospital features a breathtaking two-story lobby offering entertainment and other activities, opening into an outdoor garden park and reflection area
• In addition to the Ronald McDonald House located around the corner from the hospital, families will also be able to utilize a new in-hospital Ronald McDonald House offering 12 rooms with private baths for families needing short-term lodging to be near critically ill children
• The new facility has its own dining area with food available for both in-hospital dining as well as take-out for families and visitors to take home on busy days
• Families can take advantage of a peaceful meditation space, gift shop, family workout room and an indoor playground!
• Families and visitors will also find Welcome Assistants stationed just off the elevator on every floor to help visitors find their way to clinics and patient rooms

The existing facility will be used to benefit the entire Health System. The space will be used for additional faculty offices, clinic facilities, family space and much more to support the growing needs of UMHS patients.

And these are just a few more of the reasons why it’s important for United Bank & Trust to support Big House Big Heart and for the community to be part of making a difference!

Help raise more money for the Big House Big Heart run. Become a fan of United Bank & Trust on Facebook, and United will donate another $1 for every new fan!

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Wed 14 Sep 2011

Tips for Creating a Successful Business

Posted by Kenny Leonard under Banking, Small Business
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I came across these 10 tips for creating a successful small business – and while I am sure there are numerous top 10 lists with the same subject matter – I thought this did a good job encompassing a lot of things that I as a lender look for when meeting with potential borrowers.

10 Tips for Creating a Successful Business

#1- Understand that you as the business owner are responsible for everything that happens in your business. You cannot delegate that responsibility.
#2- The attitude of the business owner is reflected in the employees working in the business. If you don’t like the attitude you see in your employees – look in the mirror.
#3- Personal growth and business growth are not the same but they are closely related. When you stop growing as a person you stop growing your business.
#4- Know that you don’t know everything. It is not possible. When you come to that realization, investing in trusted advisors makes so much sense and it becomes an easy decision.
#5- Life is short. Enjoy what you do and others will see that and be attracted to you. It is fun to work with and be around someone who is positive and excited about what they do. If you don’t like what you do, find something else to do.
#6- Give others credit for their contribution to your success. Everyone loves to be a part of something bigger than themselves and to be recognized for their contribution to the overall success of the organization.
#7- Know that your success is tied directly to how well you motivate, manage, inspire, sell and encourage people. Your success, especially as you grow your business comes through the performance of others.
#8- If you can’t measure it how do you know it works? Measure everything.
#9- You must understand how the business you are creating will help you create the life you want. There can be no misunderstanding. True success lies in creating a business that is consistent with and supports the life you want to create.
#10- Develop a passion for your work and have fun!

I won’t comment on every item but here are a few of my additional thoughts on some of them.

#2- When I take a tour of a business, be it a manufacturing facility or a restaurant, you can tell a lot by how the employees greet you, how they are walking, talking and interacting with each other. Do they look like they enjoy what they are doing? Do they take pride in what they are doing? How do they interact with the business owner?
#4- As soon as a business owner isn’t willing to listen (or at least consider) advice from his or her trusted advisors, I become worried about the ability of their business to survive. Whether the trusted advisor is an attorney, CPA, banker or (most importantly) an employee, a business owner must know that there is always a better way to do things, and sometimes it’s the key employee or trusted advisor who comes up with the best ideas. No matter how incremental the idea, there is always room for improvement. Feelings of contentedness and complacency oftentimes become the ‘tipping point’ leading to the failure of a small business.
#5, 7, 9- All speak about passion and attitude. People want to follow people that inspire them and want them to succeed. Whether it is a neighbor friend or an employee trying to help people be and do better goes a long way.
#6- In his book, “Good to Great” Jim Collins talks about how great leaders, “…look out the window (at others) when there is a success and in the mirror (at yourself) when there is a failure….” A leader who gives credit out to the team when there is a success is easy. But taking responsibility for the team when something goes wrong is where the rubber meets the road. Without a leader who will support a team in a failure the team will begin to self destruct, point blame, and become dysfunctional.

As an SBA lender in the banking industry, we deal with a lot of start up businesses; and being able to identify some of these characteristics in a potential borrower/business owner adds to the lending decision.

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Fri 26 Aug 2011

Another Reason Why United Bank & Trust Is Supporting the Big House Big Heart Race!

Posted by Pam Jones-Sexton under Banking, Health Care Services
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Last month we covered the U-M Cardiovascular Center, as part of our series on United’s commitment to this year’s Big House Big Heart event, please click here to read our first installment.

Let’s now focus on the U-M Program for Neurology Research & Discovery. This program is led by Dr. Eva Feldman and is made up of a team of 30 scientists who collaborate to understand and find new treatments for a wide variety of neurological diseases, including ALS, diabetic neuropathy, Alzheimer’s disease and muscular dystrophies.

As the population ages, it is currently estimated that one out of two individuals will need to see a neurologist in his/her lifetime.

Neurological diseases are one of the most common causes of patient morbidity and loss of quality of life. These life-altering conditions result from the deterioration of the nervous system. Some commonly known neurological diseases include ALS (Lou Gehrig’s Disease) and Alzheimer’s Disease. Although there are currently no cures and few treatments, recent scientific advances provide us with hope for a better understanding of these diseases and potential treatments.

ALS (Amyotrophic Lateral Sclerosis)
ALS accounts for 80 percent of motor neuron disease, and occurs in 3-5 people per 100,000. This disease of the late middle-age is progressive and results in death within five years of the first sign of symptoms. Although the causes of ALS are largely unknown, it probably arises through a combination of genetic factors and environmental stress.

Alzheimer’s Disease (AD)
AD is a neurological disorder characterized by slow and progressive impairment of cognitive function and affects up to four million Americans. This debilitating disease typically begins with symptoms include changes in language skills, decision-making ability, judgment, attention and memory loss, including signs of forgetfulness, untidiness, confusion, restlessness and lethargy, and deficiency in decision making.

These symptoms are followed by a second stage in which patients lose interest in their surroundings and are often confined to a wheelchair or a bed. The final stage includes emptiness of the mind, the loss of control of all body functions and severe brain damage leading to death.

Anyone who has had a loved one suffer from either of these diseases knows the pain and how important it is we support work that is going to find the cure.

Dr. Feldman is on the forefront of applying stem cell research to human disease; most notably she is the Principal Investigator of the first clinical trial of intraspinal transplantation of stem cells in patients with ALS. Dr. Feldman’s laboratory has begun the work of adapting this therapeutic approach for patients with Alzheimer’s disease.

And these are just a few more of the reasons why it’s important for United Bank & Trust to support Big House Big Heart and for the community to be part of making a difference!

Remember, you can help raise more money for the Big House Big Heart run. If have yet to do so, click here and become a fan of United Bank & Trust by liking us on our Facebook page. We will donate another $1 for every new fan to the Big House Big Heart event!

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