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Obsidian Planning

Obsidian Market Update 09/02/2023

Economic Update

Basic Protections for Adult (18+) Children 

It’s every parent’s nightmare to learn that one of their adult children (age 18 and older) has been hurt in an accident. The nightmare gets worse when, in most states, parents are told “Sorry, under HIPAA (Health Insurance Portability and Accountability Act of 1996), we can’t share any information.”

Included protecting personal health information (PHI), such as lab results, records, and x-rays, is protecting the financial information associated with it. Meaning: Without written permission from the child, parents and guardians have no access to financial information associated with the child’s care.

If, heaven forbid, a child were to die, things can get even more complicated, especially if that child has assets. Laws vary from state to state but generally, if a person dies intestate (without a will) with less than $100,000 in assets, family members can file a form (often through a bank) then collect and divide the assets after administration costs, taxes (if any), and any creditor claims are deducted.

If an adult child is single, has property and children, the assets are typically spilt equally and distributed to the children. If that single adult child has no children, his or her parents receive the assets. If the parents are deceased, his or her estate is divided among siblings. If an adult child is married or in a domestic partnership, the distribution process becomes even more complicated.

When we review and offer recommendations to protect our clients’ children or grandchildren, at a minimum we suggest assigning HIPAA authorization to a trusted person (that could mean parents or grandparents) and executing a healthcare power of attorney. A financial power of attorney and a simple will may be appropriate depending on the situation.

HIPAA applies in all states, but laws regarding intestacy vary. We can help you understand the laws in your state and suggest ways to protect your adult children or grandchildren in nightmare situations. A simple signature on the necessary forms can shrink nightmares into bad dreams.



Is Your Wardrobe Fall-Ready?

If you haven’t been in a clothing, department, or discount store in the last few weeks, you may not realize that next to the Halloween and Thanksgiving decorations are clothes for fall. That change of season, fashion experts suggest, is a great time to perform a wardrobe re-set.

In addition to eliminating items we don’t wear, a re-set goal can be the creation of a “capsule wardrobe:” 10 to 20 pieces (think jeans, t-shirt, blazer, trench coat and dresses that accessorize up or down) that coordinate with each other and fit your lifestyle.

If you want to add or replace items, investing in classics that are built to last can be a great yet (usually) expensive option. In the past several years, however, many rental and resale websites have popped up that cater to those who occasionally want to add high-end or on-trend items to their capsule wardrobes without the high-end price, or place a premium on sustainability, or are allergic to hearing Christmas-carol background music before Columbus Day. These groups are growing as experts expect the digital fashion rental market to double in value from $1.3 billion in 2021 to $2.8 billion in 2030, and the online resale market to reach $38 billion by 2027.


TD Ameritrade to Schwab

It’s Happening!

If you currently receive statements from TD Ameritrade, please take a moment to read this article and a more detailed version in our July 8 newsletter.

This is Account Conversion Weekend! We’ll admit, it doesn’t have the ring of long weekend or holiday weekend, but it’s one we’ve been anticipating for months. Schwab started transitioning all account information from TD Ameritrade yesterday at 8:30 p.m. (Eastern) and will complete the process by September 5 at 5:00 a.m. (Eastern).

If any trades were executed September 1 expect to receive a confirmation in the mail. If you have any questions about the conversion process, please don’t hesitate to call our office.


How We Help

Purposeful Planning for Blended Families

Estate planning for couples in or forming blended families is more complex than it is for most never-divorced couples with children because there is a host of variables to consider. For example, both spouses, or only one, may come to a second marriage with children. Spouses may or may not have children together. One spouse may be involved in a family business, while another has inherited wealth. These family structures and situations impact estate planning, of course, but no less importantly do the values of the spouses.

We help soon-to-be and already-married couples identify their values, communicate effectively, and create plans—prenuptial agreements and/or estate plans—to protect and pass wealth to the heirs they choose. We have long experience working with couples, so please don’t put off this important planning.

Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Securities are offered through Triad Advisors, member ​FINRA/SIPC.​ Obsidian Personal Planning Solutions, LLC, and Obsidian Personal Planning Solutions, Inc, are not affiliated with Triad Advisors.

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