All adults should have certain legal documents prepared to protect themselves and their family. These documents will make sure your wishes regarding your estate are legally recognized and clearly understood. They will also minimize any conflicts and confusion among family members and health care providers in the event of serious illness or death. Here are the key documents you need along with some tips to help you create them.

Will or Trust: A will lets you lay out your wishes of how you would like your property and assets distributed after you pass away, whether it is to family, friends or a charity. A will also allows you to designate an executor to ensure your wishes are carried out and allows you to name guardians if you have dependent children.

In addition to a will, if you own real estate or have considerable assets, another option you may want to consider is a revocable living trust. This functions like a will but allows your estate to avoid the time and expense of probate (the public legal process that examines your estate after you die) and helps protect your estate’s privacy.

Do-It-Yourself Will: If you have a simple estate and an uncomplicated family situation, there are do-it-yourself resources that can help you create a will. To make your will legally valid, you will need to follow proper signing procedures, including having the required witnesses sign it with you. Many young families will start with a do-it-yourself will as a placeholder document until family circumstances change and they acquire significant assets. After several years, they may contact an attorney for a complete estate plan.

Advance Directive: An Advance Directive includes two documents that explain your wishes regarding your end-of-life medical treatment. One document is a living will which tells your doctor what kind of care you want to receive if you become incapacitated. The other document is a health care power of attorney (or health care proxy), which names a person you authorize to make medical decisions on your behalf if you are unable. Advance Directive forms can be found online and vary by state, so it is important to use the version specific to where you live.

If you have a serious medical condition, you may consider filling out Physician Orders for Life-Sustaining Treatment (POLST). This is a state-specific form that your doctor would fill out that translates your end-of-life wishes into medical orders to ensure your wishes are carried out.

HIPAA Release: A signed HIPPA form gives your healthcare provider permission to discuss your medical care and medical bills with those you designate. You may need specific HIPAA release forms for each of your medical providers. In some states, your Advance Directive will also contain a HIPAA release.

Durable Power of Attorney for Finances: A durable power of attorney allows you to designate someone you trust to handle your financial affairs if you become incapacitated. Another option is to make your durable power of attorney for finances effective when signed. Many individuals will create a durable power of attorney for finances that give immediate powers to a responsible person to help manage their funds and investments.

Get Help: If you want assistance or if you have a complicated situation, such as a blended family or considerable assets, you should hire an attorney. An experienced lawyer can make sure you cover all your bases – especially when writing a will or living trust – which can help avoid family confusion and squabbles after you are gone.

Costs will vary depending on where you reside, but you can expect to pay somewhere between $500 and $2,000 for a basic estate plan that includes a will, power of attorney and advance directive. If you want your estate plan to include a living trust, costs can run anywhere between $1,500 to $5,000 or more for complex estates.

The National Association of Estate Planners and Councils (NAEPC.org) and the National Academy of Elder Law Attorneys (NAELA.org) are two good resources that have directories on their websites to help you find an attorney in your area. If you are looking for affordable legal assistance, check with your state’s bar association for low-cost legal help in your area.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

As part of its ongoing awareness campaign, the Internal Revenue Service (IRS) Security Summit warns taxpayers and professional advisors to be aware of the latest email phishing scams. Because both tax advisors and individuals are active users of email, there is frequent opportunity for identity thieves to trick individuals into releasing confidential data.

The IRS previously noted that identity thieves have been relentless in exploiting and tricking taxpayers and tax professionals to disclose sensitive information. The IRS further noted that fighting back against phishing scams requires constant vigilance and urges tax professionals and taxpayers to take basic steps to protect their sensitive information.

There are several strategies that “bad actors”, or identity thieves, use to collect passwords, bank account numbers, credit card numbers or Social Security numbers.

1. 1. Trusted Source— A bad actor will pose as a familiar person or an individual from a reputable organization. They will then claim that he or she is a long-lost friend, a colleague at a former employer, a bank, a credit card company or even the IRS.

1. 1. Urgent Story— Another strategy is to write a story that pulls on your heartstrings and creates urgency. Some bad actors have written stories about friends or family members who have recently suffered from a disaster or are hospitalized and require immediate assistance. The story will also include a link to a document needed to provide help to that friend or family member.

1. Spear Phishing— A particularly successful strategy by the bad actor is to pose as a potential new client to a tax professional. To create a false sense of security, the individual exchanges four or five emails with the tax professional. After four or five emails, the guard of the tax professional is down, and the bad actor sends an email attachment that triggers the download of malware.

In these cases, the bad actor will attempt to have malware downloaded on to your computer through the click of links or opening of attachments. Then, the malware downloaded onto the computer of the individual or tax professional is designed to give the bad actor access to passwords. If the tax professional has client accounts with pending tax returns, the bad actor completes those returns and files them. However, the bank account information for the refund is changed to an account controlled by the bad actor.

Tax professionals have also been subject to ransomware attacks. With malware on the computer or network of the tax professional, the bad actor is able to encrypt all the business files. This is particularly effective because the tax returns will have due dates that need to be met. The bad actor then demands a cryptocurrency payment from the professional. If the ransom is paid, the bad actor may send a key to decrypt the files and allow the tax professional to meet the required tax deadlines.

The IRS urges all individuals with financial accounts to use two-factor authentication. Both individuals and tax professionals must have anti-virus software that is updated on a daily basis. Tax professionals should also encrypt the data and create daily backup files in order to easily recover files if their hard drives are encrypted.

Collecting Social Security Disability Insurance (SSDI) benefits when you are unable to work can indeed be challenging. Each year, approximately two million people apply for SSDI, but more than two-thirds of them are denied. While reasons for denial vary, the leading reason is that applicants fail to prove that they are disabled and unable to work. Here are some steps you can take that can help improve your odds of approval.

Are You Disabled?

The first thing you need to determine is if your health condition qualifies you for Social Security disability benefits. Eligible health conditions typically include physical or mental impairments that are severe enough to prevent individuals from working in their current or past line of work for at least a year.

There are no benefits available for those who have a short-term or partial disability. To qualify for benefits, your disability must prevent you from working at the substantial gainful activity (SGA) level. If you are still working despite your disability, and you are earning more than $1,620 ($2,700 if you are blind) a month on average in 2025, your application will be denied. However, if you are not working or are working but earning below those limits, your application may be considered.

Your skills, education and work experience are also factors. If your work history suggests that your disability does not prevent you from performing a less physically demanding job, your application may be denied. To help you determine if you are eligible, use the SSA Benefit Eligibility Screening Tool at SSAbest.benefits.gov.

How to Apply

If you believe you have a claim, your next step is to collect your personal, financial and medical information to prepare for the application process. You can apply online at SSA.gov/disability or call 800-772-1213 to make an appointment and apply at your local Social Security office.

If you schedule an appointment, a “Disability Starter Kit” will help you get ready for your interview and will be mailed to you. If you apply online, the kit is available at SSA.gov/disability/disability_starter_kits.htm.

It currently takes six to eight months from the initial application to receive either an award or denial of benefits. The only exception is if you have a medical condition that qualifies you for a “compassionate allowance” (see SSA.gov/compassionateallowances), which fast tracks cases.

If Social Security denies your initial application, you can appeal the decision. However, with a huge backlog of people waiting, it can take around 10 months or longer to appeal the decision and another seven to 12 months to get a hearing if reconsideration is denied.

Get Help

You can hire a representative to help you with your Social Security disability claim. By law, representatives can charge the lesser of 25% of past-due benefits up to $9,200 if they win your case.

It is advisable to hire a representative at the start of the application process if your disability is difficult to prove, such as chronic pain. If your disability is obvious, you may want to consider initially working without a representative to avoid paying the fee. You are allowed to hire a representative later if your initial application and first appeal are denied.

To find a representative, check with the National Organization of Social Security Claimants’ Representatives (NOSSCR.org) or National Association of Disability Representatives (NADR.org). If you are low-income, contact the Legal Services Corporation (LSC.gov/find-legal-aid) for free assistance.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

July is a great month to consider plans for charitable gifts in 2025. These gifts could include an IRA charitable rollover, a gift of cash or a gift of appreciated stock or land.

1. IRA Charitable Rollover — The IRS refers to the IRA charitable rollover as a qualified charitable distribution (QCD). An individual over age 70½ is permitted to make a transfer directly from his or her IRA custodian to a qualified charity. The transfer is not included in taxable income. If the IRA owner is over age 73, the distribution may fulfill part or all of the IRA owner’s required minimum distribution (RMD).Because many individuals have invested their IRAs in stocks, bonds or other securities, it may be necessary to exchange the IRA stock or bond accounts for a money market fund prior to the distribution. Most IRA custodians require a QCD to be paid from a money market account or similar fund. With equities markets at high levels, some individuals may choose to transfer funds from equities to a money market fund early in the year to prepare for their IRA charitable rollover.There are some limits for the IRA charitable rollover. The IRA owner must be at least age 70½ and the maximum transfer in 2025 is $108,000. The transfer must be to a qualified exempt charity and may be for a designated purpose or field of interest fund. However, it may not be to a donor advised fund (DAF) or supporting organization (SO). In addition, transfers may not be for a charity dinner or other event that involves a partial benefit to the donor. The entire QCD must be for a qualified charitable purpose.
    
2. Gifts of Cash — In 2025, individuals who itemize deductions may deduct charitable gifts of cash up to 60% of their contribution base, which is usually their adjusted gross income (AGI). While the 60% limit is substantial, some generous individuals give more than this and may carry forward and deduct the excess gift amounts over the next five years.
    
3. Gifts of Stock or Land — With substantial increases in value for both stocks and real property, many donors will find that a 2025 gift of appreciated property is attractive. A gift of appreciated stock or land provides two benefits for the donor. First, the donor may receive a charitable contribution deduction for the fair market value of the stock or land. Second, the charity is tax-exempt and therefore the donor is able to bypass tax on the capital gain.

If the donor purchased stock seven years ago for $10 per share and it is now worth $50 per share, the donor would pay capital gains tax on $40 if he or she sold the stock. However, by giving the stock to charity, the donor may receive a deduction for the $50 in value and bypass the tax on the $40 of potential gain. Because the donor is receiving both the deduction and capital gain bypass benefits, this type of gift is permitted to 30% of adjusted gross income (AGI). Once again, if the value is in excess of this limit, it may be carried forward for an additional five years.

For example, Mary Smith has adjusted gross income of $100,000 this year and makes a gift of appreciated stock with a fair market value of $40,000. She is able to deduct $30,000 and carry forward $10,000 and deduct that amount over the following five years. 

Editor’s Note: Summer is a good time to make plans and consider the options for gifts in 2025.