Page 28 - September 2019 FOP Newsletter

Are your assets secure?
Today, you face risks at every turn, from law- suits to the high cost of long-term care, auto and home accidents or years of probate.
All too often, we settle for basic insurance and fail to consider the importance of com- prehensive protection. In other cases, all we need is the best legal document.
Firearms
Being the police 24/7 carries a significant risk of liability, especially for the use of your firearm while off duty. You can and should have firearm insurance for your protec- tion. Check out the benefits plan website for more infor-
mation.
Long-term healthcare
Will you need it? If we make it to age 65, 70 percent of us
FOP
Benefits Plan
TOM TUOHY
It is not worth rolling the dice and sacrificing your savings or hard-earned assets. And, it is next to impossible to keep up with what you do need for protection, es-
pecially since it changes without any warning.
Homestead real estate
If you are married and currently working, your principal place of residence should be titled in tenants by entirety (TBE), which protects your marital property from the creditors of one spouse.
Investment real estate
Your renters can sue you for a variety of reasons, primarily for injuries suffered as a result of property defects both inside and outside the residence.
First, be sure you have the right coverage and are not overpay- ing. Call the FOP Benefits Plan for a free quote. Your group rate discounts can save you hundreds of dollars per year.
Second, eliminate any personal liability concern by holding ti- tle to any investment property in either a corporation or limited liability company (LLC). Your benefits plan offers reduced rates for the organization and registration of those business entities.
will need some long-term healthcare. And even though only 40 percent of people will require inpatient nursing care, all long- term healthcare is expensive.
There is a now a hybrid insurance policy offered exclusively to members of the benefits plan that provides long-term care insur- ance and, if not accessed, can be converted to life insurance at your death.
Automobiles
The most common auto policy written today is the same as it was 25 years ago ⁠— $100,000/$300,000.
You are insured up to $100,000 in protection for damages you or a covered driver on your policy causes as a result of negligence and $300,000 per occurrence.
However, if the damages exceed that amount, you are person- ally responsible. Even a minor accident can result in a heart at- tack, broken bone or herniated disc.
Umbrella insurance costs an average of $200 per year for an ad- ditional $1 million in liability protection for each covered vehicle and residence.
Through the benefits plan, members save an average of $466 per year for comprehensive auto and home coverage by A-rated insurance companies.
Living trusts
At the end of your life, or if you become incapacitated, any property or bank accounts in your name are at risk of probate.
• A will must be probated. The rule is that no one can legally sign your name. Therefore, at your death or incapacity, all assets in your name are subject to the full probate process, which averages 18 months and is costly.
• A living trust completely avoids probate.
• A living trust estate plan includes both healthcare and finan-
cial power of attorney documents, as well as a last will and testament for guardianship of minor children and to pour- over any assets still in your name at your death, out of pro- bate.
A revocable living trust is a written, legal document that allows you to privately and efficiently pass your assets (real property, bank accounts, stock, saving certificates, personal property, etc.) to your family, friends or charities after your death ⁠— outside of probate court.
Your life insurance policies and deferred compensation ac- counts can name your living trust as beneficiary, subject to es- sential tax considerations.
Call my office today to lock in your FOP 50 percent reduced rate for a living trust.
Registration in the benefits plan for FOP members and family is free. For assistance or more information, visit www.fopbene- fitsplan.com or call 1-866-729-5454.
Tom Tuohy is the founder of Tuohy Law Offices and the FOP Bene- fits Plan. He has been a police lawyer for 36 years. His father was a CPD detective, and his grandfather was CPD Chief of Major Inves- tigations. You can reach Tom at 312-559-8400. Visit www.fopbene- fitsplan.com or call 1-866-729-5454 for assistance with registering.
28 CHICAGO LODGE 7 ■ SEPTEMBER 2019