Estate Planning FAQs
Wills and Trusts are vehicles for passing on your assets to those you choose. Many clients are concerned about the risk of funds they leave to their children being lost to their children’s creditors or spouses upon divorce or simply by bad decisions their children may make. For them, a family protection trust can provide the peace of mind they seek. In addition, proper planning will prevent the payment of unavoidable estate taxes upon your death.
A Revocable Trust may provide the answer. In addition, every client needs a durable power of attorney and health care advanced directive appointing a trusted individual to make financial and health care decisions for you when you no longer can yourself.
We have helped many parents of children with special needs planning for their children through the creation of a Special Needs Trust funded with life insurance or other assets.
Your greatest legacy is the children and grandchildren you raise, if any, and the memories you leave with your family, friends, and work colleagues. However, support of charities and an estate plan providing for your family and smoothly passing on what you leave behind will also contribute greatly for years to come for the legacy you leave and your family’s welfare.
Elder Law and Medicaid Planning FAQs
Not if you plan properly, the earlier, the better. There are a number of planning options available to spouses of nursing home residents to protect their financial well-being while qualifying their ill spouse for Medicaid to defray nursing home costs.
Medicaid Planning and Medicaid Crisis Planning are essentially the same. The difference is the timing.
Crisis Planning is the much more stressful and expensive option. Because trying to qualify for Medicaid when you’re also having to manage a nursing home transition, is overwhelming. It also means that loved ones often have to step in and handle the process because the individual needing nursing care may already be experiencing significant health challenges such as dementia or general decline. Crisis Planning is more expensive because all the time you’re working to become eligible for Medicaid, you also have to manage paying extremely high nursing home bills.
In contrast, Medicaid Planning is done ahead of time—well before the crisis is already upon you. Maybe you anticipate a scenario where you or a loved one will eventually need more care than can be provided at home. It’s much easier and more cost-effective to plan for Medicaid eligibility ahead of time so you can start protecting your assets as soon as possible.
Ideally, it’s better to plan ahead, so you don’t have to handle the demands of transitioning to a nursing home and paying their fees while you’re also in the process of becoming Medicaid eligible. But even if you’re in an urgent situation, Robert M. Goldberg & Associates can help protect your assets and make your savings go further.
Estate Administration FAQs
For many clients, the best solution is a Revocable Trust, often referred to as a living trust.
A “conservatorship” is used when a Proposed Ward has lost sufficient capacity to make and communicate significant responsible decisions regarding the management of their finances.
A “guardianship” is appropriate when a Proposed Ward does not have the legal capacity to make and communicate significant responsible decisions regarding their health and well-being.
Anyone can serve as a Guardian and/or Conservator with the exceptions of minors and persons who have a conflict of interest with the Proposed Ward. There is an order of preference the court lists when appointing a Guardian or Conservator. A person chosen by the Proposed Ward has first preference. Thereafter, the preferences are the spouse, an adult child, and then the parent.
To get a Conservator or Guardian appointed, you must petition the Probate Court in the county where the Proposed Ward lives. The Probate Court judge will review the petition and accept or dismiss it.
You don’t need an attorney to file for a Conservatorship or Guardianship; however these are legal proceedings requiring a hearing where evidence will be presented, and testimony taken. The Proposed Ward will have an attorney appointed to represent them. If you are not represented by an attorney, you will be expected to present the evidence in the appropriate manner.
Glossary of Common Terms
A will is a legally binding document dictating how you want your assets distributed after your death. In a will, you also appoint a personal representative of your estate, who is responsible for carrying out your final wishes. This document is a critical component of the estate plan.
When a person becomes incapacitated due to a medical emergency or decline in mental functioning, he or she can no longer care for himself or herself. Establishing a durable power of attorney protects your interests if you face this situation.
A power of attorney authorizes another person, the “agent”, to handle specific matters on your behalf, such as medical decisions or financial matters. When a power of attorney is durable, that means it remains in effect even if you become incapacitated.
A beneficiary is a person or entity who benefits from a will, estate plan, trust, insurance policy, or a similar financial arrangement. When creating an estate plan, you will need to name the beneficiaries by identifying who will receive certain assets. Many people name their children, spouses, and other relatives as beneficiaries, but you could also name a charity.
A Living Will is a legal document providing “clear and convincing evidence” about the care you want at the end of life if you cannot communicate those wishes at the time. This document will help doctors and caregivers determine what to do if you become terminally ill, suffer a serious accident, experience late-stage dementia, or are nearing the end of your life.
By creating a living will, you can reduce confusion and avoid unnecessary suffering,
Life insurance policies are often issued through employers or purchased privately by individuals. If you have life insurance coverage, you will need to ensure your account is in order and included in your final estate plan. You will need to name a beneficiary and include information on how your loved ones can access the policy following your death.
A Trust is a fiduciary relationship between three parties: the trustmaker (settlor, grantor, trustor), who creates the trust; the trustee, who is chosen by the trustmaker to hold legal title to trust property, and the beneficiary, the person for whom the Trust is created, who has the right to use and enjoy the trust property.
Many people establish Trusts to provide funds for their children, set aside assets for long-term care, and for many other Estate Planning needs. If you have a pet you want to take care of following your passing, you may want to consider Pet Trusts. By setting up a Trust for a pet or companion animal, you can designate a caretaker, set the terms of your pet’s care, and set aside funds for food, supplies, medical care, and other important costs.
