To Fund or Not to Fund? (April Fools!)

Instead of telling you how to avoid probate, in honor of April Fools Day, we decided to provide you with a list of how to guarantee that your assets will go through the probate process when you pass away. 

• Own everything in your name only
• Fail to name beneficiaries on all of your accounts, no transfer on death designations either
• Don’t own anything jointly, and if you do own real estate jointly, have it owned as tenants in common (note that only sometimes does owning real estate as tenants in common make sense)
• Create a trust, but don’t put anything in it. We lawyers call it “the funding of your trust.” If you don’t put anything in your trust, there is nothing for your successor Trustee to distribute and then the assets go through probate. Your estate planning attorney should assist you with the funding of your trust.

Don't Believe Everything You Read

We recently read some excellent books that, while works of fiction, contained what might be construed as legal advice.

Unfortunately, the "advice" was not accurate!

In one instance, a father and husband was diagnosed with a debilitating disease. While the book depicted the ensuing family challenges in a touching and compassionate way, it did not portray accurately how the healthy spouse could protect assets for herself. 

Whether conveyed by a book, by the internet, or by someone who heard something from someone else, it is important to remember, don’t believe everything you read or hear.  

For example, in another instance a character within a story was a divorce attorney, but he provided advice to a couple facing long term care planning issues.  However, an attorney who handles divorces may not offer the best advice to a client who needs long term care planning advice, and vice versa. 

We strongly recommend that if you have an issue relating to elder law and/or long term care planning, and want to obtain the best result for your situation, consulting with an elder law attorney is crucial.

Special Needs Planning?

Many among us are unaware that an estate plan can include provisions for family members with special needs.

When families have concerns about the particular needs of disabled individuals, estate planning documents can be tailored to meet those needs, while still preserving an individual’s eligibility for government benefits, if that is an issue.

This includes the preparation of special needs trusts.

Family Caregivers - The Backbone of Long Term Care

It is a myth that most of the elderly are cared for by nursing homes or health care institutions, In fact, over the past several years it has been determined that over 80% of those who need long term care receive that care from unpaid caregivers.    That being the case, what can you do to make caregiving easier down the road?  

As a caregiver, the key word is plan:

1. Determine a starting point with respect to financial matters and care options
2. Learn about estate planning with respect to necessary documents and guardianship issues
3. Have a plan to take care of your self!
   
   

Read the full article...

Why So Many People Update Their Estate Plans Every Five Years

A common question from many of our clients involves identifying the right timeframe for updating an estate plan.
 
Generally speaking, there are three reasons whey plans should be updated on an approximate five-year cycle:

1. Changes in law, including tax laws
2. Changes in family situation
3. Changes in financial position

In some cases updates should be made more frequently, such as when changes in family situation occur including births, marriages, deaths, and so on. But generally speaking a five-year updating cycle is a good target.

Elder Law Fundamentals

When it comes to elder law, people are most often concerned about long term care planning for themselves as they age or for their aging parents. 

Many fear losing all their assets to a nursing home, and others need assistance with navigating through the complicated legal waters of Medicaid. 
 
Other fundamental components of elder law include:

• Protecting the at-home spouse’s assets and income
• Representation at elderly services or in court
• Long term care planning
• Addressing concerns about the high cost of nursing home care
• Reviewing long term care insurance plans
• Medicaid planning
• Assistance with the completion of the Medicaid application 
• Helping loved ones stay at home with home care assistance
• Caregiver help
• Planning for disabled individuals

3 Ways to Avoid Probate

There are a number of different ways of holding assets that will avoid probate.

The simplest is probably just joint ownership, such as a piece of real estate held as joint tenants or a bank account held jointly. This type of assets will pass automatically to the other joint owner when the first owner dies – but keep in mind, there will still be a probate at the second death.

Another way to avoid probate is by assets which have 'designated beneficiaries', such as an insurance policy or a retirement plan (such as an IRA). These assets will pass to those beneficiaries when the owner of the asset dies.

Still another way to avoid probate is to hold assets in a revocable trust.