If you are approaching the estate planning process for the first time, you may have a number of important questions. This area of law can be quite confusing for newcomers – and building an estate plan might seem like a daunting prospect. That being said, you do not need to become a legal scholar simply to engage in the estate planning process. Once you understand the basics behind this process, it becomes easy to move forward with confidence – whether you have a Master’s degree or you’re a hardworking tradesperson. One of the best ways to learn more about estate planning is to book a consultation with a qualified estate planning lawyer. During this meeting, you can ask any questions you might have about the process. Here are a few examples of questions you might have:
Do I Need a Will or a Trust?
Many estate planners are not quite sure whether they need a will or a trust. These are two different estate planning tools that serve different purposes – and it is important to distinguish between them.
A will is considered the bare minimum when it comes to estate planning. Everyone needs a will – regardless of your wealth. A will is one of the easiest and most affordable legal documents you can create, and it covers the basics of inheritance, debt payments, and certain medical choices. An estate planning attorney can help you create a will within a short timeframe.
On the other hand, a trust offers an additional layer of control for estate planners. With a trust, you can enjoy a certain level of flexibility when it comes to not only who receives certain assets but how these people inherit your property. While a will is fairly limited in this regard, you can create a trust that specifically targets your unique needs and priorities. There are all kinds of different trusts – too many to list here. Examples include pet trusts, living trusts, charitable trusts, and much more. While a will only goes into effect after your passing, some trust can become active while you are still alive.
So which one do you need? Once again, everyone needs a trust. For more advanced estate planning needs, you might choose to establish a trust – but it is not necessary in the same way as a will.
When Should I Change My Estate Plan?
You should consider changing your estate plan when you experience major life changes. For example, you might get divorced. If this is the case, you should quickly alter any wills, trusts, and other estate planning tools that mention your ex. If you leave these matters unaddressed, your ex could inherit your fortune against your wishes.
Other family changes may also cause you to change your will. For example, you may disapprove of a grandson’s choices in life – causing you to remove him from your will. You might also make certain changes to your will if your child marries the wrong person or becomes divorced. Finally, you will need to update your will if certain beneficiaries pass away before you do.
You might also consider changing your will if your financial situation changes. Perhaps you started a new family business within the past five years – and your current will does not stipulate who should gain control of the enterprise after your passing. Maybe you recently decided to invest in cryptocurrencies – and your current will does not even mention these assets. Of course, the loss or sale of certain assets might also necessitate changes to your will. After all, your beneficiaries cannot inherit assets that no longer exist.
As a general rule, some recommend that you update your will every five years – just to be on the safe side. If you are not quite sure whether you should change your will, you might consider discussing the matter further with an estate planning attorney.
Is Estate Planning Only for Wealthy Americans?
No, estate planning is not reserved for wealthy Americans. Everyone should have some kind of estate plan in place – even if they have absolutely no assets to speak of. In fact, those who plan to pass away while in debt should consider making an estate plan to reduce financial burdens for their beneficiaries. By creating a simple estate plan, you can avoid leaving your loved ones with excessive amounts of debt. Furthermore, wills can help designate medical choices and representatives if you become incapacitated. This is useful regardless of your wealth level.
What Happens if I Pass Away Without a Will?
If you pass away without a will, you will have died “intestate.” This means that your estate will be handled by the probate court – and your family will have no control over who gets what. Instead of controlling who receives assets, your family will be forced to watch as your fortune is divided in a completely arbitrary manner according to a set formula. Usually, this means that spouses, children, and parents inherit most of the fortune, with other valued family members receiving very little. Often, this process can cause the wrong assets to fall into the wrong hands.
How Can I Provide for a Financially Irresponsible Beneficiary?
If you want to ensure the financial security of a loved one who struggles to manage their money, you might consider a spendthrift trust. This estate planning tool ensures that the beneficiary will always have enough money to survive – but not enough to spend excessive sums on irresponsible endeavors like gambling, pyramid schemes, or substance abuse.
Contact the Elderly Care Law Firm Today
If you have been searching for an estate planning attorney, look no further than the Elderly Care Law Firm. We have been helping estate planners understand this process for many years, and we will gladly answer any questions you might have. Estate planning should be easy and accessible for everyone – regardless of your financial status or education. With our help, you can learn more about estate planning and choose a plan that fits your unique circumstances. Get in touch today to discuss the most appropriate course of action.
Estate planning is the process of creating a legal plan for the distribution of your assets after death. It is an important part of financial planning and can help to ensure that your assets are distributed according to your wishes.
Estate planning can also be a valuable tool for preserving family harmony during difficult times. When a loved one passes away, it is natural for grieving family members to experience a range of emotions, including sadness, anger, and resentment. These emotions can sometimes lead to conflict over the distribution of the deceased’s assets.
Harmony-centric estate planning is an approach that focuses on minimizing conflict and maximizing family harmony. It involves working with an experienced estate planning attorney to create a plan that is fair and equitable, and that takes into account the needs and desires of all family members.
Here are some tips for harmony-centric estate planning:
Communicate with your family. Talk to your family members about your estate planning plans and get their input. This will help to ensure that everyone is on the same page and that there are no surprises after your death.
Be fair and equitable. When distributing your assets, try to be fair and equitable to all of your family members. This does not mean that you have to give everyone the same thing, but it does mean that you should take into account the needs and contributions of each family member.
Consider your family dynamics. If you have a history of conflict within your family, you may need to take special steps to avoid conflict after your death. For example, you may want to consider creating a trust or appointing a neutral trustee to manage your assets.
Work with an experienced estate planning attorney. An experienced estate planning attorney can help you to create a harmony-centric estate plan that meets your specific needs and goals.
If you are concerned about preserving family harmony during difficult times, you should consider harmony-centric estate planning. By working with an experienced estate planning attorney, you can create a plan that is fair and equitable, and that takes into account the needs and desires of all family members.
Example of how harmony-centric estate planning can help to preserve family harmony:
Consider a family with two adult children, Alice and Bob. Alice is married and has two children of her own. Bob is single and has no children. Alice and Bob’s parents are concerned about preserving family harmony after their death.
They decide to work with an estate planning attorney to create a harmony-centric estate plan. In their plan, they leave their home to Alice and Bob jointly. They also create a trust to hold their other assets, such as their savings and investments. The trust is designed to benefit Alice and Bob equally.
If Alice and Bob decide to sell the home, they must agree on a price and a buyer. If they cannot agree, the home will be sold and the proceeds will be divided equally between them. The trust also requires Alice and Bob to agree on how the trust assets should be distributed. If they cannot agree, the trustee will make the decision.
This harmony-centric estate plan helps to ensure that Alice and Bob will have to work together to make decisions about their parents’ assets after their death. This can help to minimize conflict and maximize family harmony.
If you are concerned about preserving family harmony during difficult times, you should consider harmony-centric estate planning. At Elder Care Law Firm, we specialize in creating harmony-centric estate plans that meet the specific needs and goals of our clients. We understand that every family is different, and we take the time to get to know our clients and their families so that we can create a plan that is fair and equitable to everyone.
We also understand that estate planning can be a complex and daunting process. That’s why we work closely with our clients to explain all of their options and to help them make the best decisions for their families.
If you are interested in learning more about harmony-centric estate planning, please contact Elder Care Law Firm today. We offer a free consultation so that you can learn more about our services and discuss your specific needs.
A last will and testament is a critical part of any effective estate plan. All responsible estate planners striving to protect their fortunes should establish a will as the absolute bare minimum. At the end of the day, a will is a rather straightforward document that lays out exactly how a testator wants their assets to be distributed among beneficiaries. It may also include certain medical directives. But despite the relative simplicity of these documents, testators may have various questions about wills. Here are some of the most common queries:
What Happens if I Do Not Establish a Will?
If you fail to establish a will before your passing, you will have died “intestate.” This means that the probate court in your state will distribute your assets to beneficiaries according to a set of pre-set guidelines. This is sometimes referred to as the probate process. In other words, you will have absolutely no control over how your assets are distributed. Even if you verbally expressed the desire for certain beneficiaries to inherit assets, the state will disregard these wishes and stick to its guidelines.
The specific intestate guidelines depend on your state and your family’s situation. Secession is a term that refers to the “hierarchy” assigned to various family members. Some will always inherit assets first, while others may inherit nothing at all. Generally speaking, surviving spouses of the decedents inherit assets first. Other high-ranking beneficiaries include children, parents, and siblings. To determine the specific order, refer to the specific laws within your state.
Some testators may be perfectly fine with these guidelines. However, you may find that the time it takes to check the intestate guidelines in your jurisdiction is equal to the time it takes to establish a will. Establishing a will also comes with additional advantages, such as medical directives. It is also worth noting that situations may change drastically within just a few short days. You may separate from your spouse and pass away days later. In this case, your spouse would likely inherit assets first despite the marriage being over. To avoid situations like this, it makes more sense to write a clear will rather than trusting the intestate guidelines.
Many spouses want to leave wealth to more distant relatives. For example, you may want to leave the bulk of your fortune to a grandson or a nephew. These relatives rank quite low on the hierarchy according to intestate guidelines, and a will represents the only reliable way to make sure they inherit the assets.
On a more general note, dying without a will effectively guarantees disputes among family members. Even if family members normally get along, disputes over money can cause serious rifts that may never heal. Establishing a will alongside an estate planning attorney helps prevent these arguments, ensuring that you leave behind your wealth and not lasting bitterness.
How Do I Make a Valid Will?
The requirements for a valid will vary depending on your state. Generally speaking, wills are only valid in written form. A verbal will is not acceptable in American probate courts. Wills must also be signed by the testator (the person writing the will). In addition, each testator must write their will with a “sound mind.” This means that they must understand what they are doing. A person with cognitive limitations may still write a valid will as long as they understand the purpose of this document.
A person of sound body may not be intoxicated, however. Certain mental health issues may also raise questions about the testator’s mind. Notable examples include dementia, Alzheimer’s, brain damage, and conditions of that nature.
Wills may also require witnesses, and these witnesses must also be of sound mind as they watch the testator sign their will. The witness must then provide a signature that states they have seen the testator sign the document and that the testator was of sound mind at the time of the signature.
A valid will can be handwritten or typed. If the will is handwritten, it may constitute a “holographic will.” In this case, witnesses may not be required – and the will may be valid as long as it is signed. The logic here is that because the will is handwritten, it is obviously the work of the testator and not a fraudulent document. In addition, the handwritten nature of the document implies that the testator was of sound mind at the time of its composition.
To receive more guidance on the composition of valid wills, be sure to get in touch with a qualified estate planning attorney. An attorney can write your will for you, and it is still valid despite it being written by someone else.
What is the Difference Between a Will and a Trust?
Wills and trusts may accomplish similar goals, but they are different estate planning tools. A will controls which assets are distributed to which beneficiaries, while a trust can also determine how these assets are distributed. In other words, trusts provide more options. Trusts are managed by trustees.
Who Makes Sure My Will is Carried Out?
Wills are handled by executors and the probate court. Estate planners can choose their own executors, and these individuals are tasked with making sure the terms of the last will and testament are carried out.
At What Age Should I Write a Will?
Anyone can write a will after they turn 18. The sooner you create a will, the better. As you age, questions may be raised about your cognitive ability and general health. This may make your will more likely to be challenged.
Book Your Consultation with the Elderly Care Law Firm Today
If you have been searching for an estate planning attorney who can assist you with your last will and testament, look no further than the Elderly Care Law Firm. Over the years, we have assisted numerous estate planners with various important steps, including the establishment of effective, accurate wills. We know that while this article covered many topics, you may have many additional questions about the overall process. The best way to answer these questions is to book a consultation with us at your earliest convenience. During this initial meeting, you can clarify points of confusion and receive targeted advice based on your family’s unique circumstances. Reach out today to get started.
Most people assume that enjoying the full benefits of Medicaid is as easy as signing on the dotted line – but it is not that simple. In order to get the most out of Medicaid, you need to plan out your future carefully. Because even though Medicaid is designed to help vulnerable patients, there is a right way and a wrong way to approach this source of funding. Fortunately, there are many steps you can take right now to plan for Medicaid and ensure the best results. You can start by learning more about this planning process.
Let’s review the significance of Medicaid planning and learn how it can help individuals and families prepare for the high costs of long-term care – while safeguarding their assets and financial security.
How Do I Plan for Medicaid?
One of the first steps of Medicaid planning is to figure out where you are even eligible for this source of coverage. Contrary to popular opinion, finding out whether you are eligible is not a simple process. The eligibility rules are vague and unclear. To make matters worse, these rules are constantly changing – sometimes several times in a single year. Finally, each state has its own unique rules regarding Medicaid eligibility. This makes online research very difficult since most articles contain generalized, vague information that does not apply to your specific state. Finding out whether you are eligible is easier if you work alongside someone who truly understands the Medicaid system.
Once you have figured out the eligibility factor, you can continue to plan by reviewing your financial situation. Sometimes, becoming eligible for Medicaid is easier if you rearrange your finances a little. For example, you may have the ability to transfer a certain number of funds to an irrevocable funeral trust. This might lower your “countable assets,” thereby making you eligible for Medicaid when previously you would have been denied. Again, qualified Medicaid planners (such as elder care lawyers) can help you assess these potential strategies.
You might also need to determine exactly how many spouses need medical care. Do you only need Medicaid for your own coverage, or do you need to get coverage for you and your spouse? Your planning strategy should change depending on your situation. For example, certain “spousal impoverishment” rules apply if two spouses apply – but these rules do not apply if you simply need Medicaid for yourself. Finally, you should also figure out whether you’re eligible for both Medicaid and Medicare since this is possible in many situations. There are obvious benefits of “dual eligibility,” as this gives you more coverage.
How Can I Prepare to Apply for Medicaid?
If you’re getting ready to apply for Medicaid, one of your first steps should be to gather the important documents you need. These include:
Documents that prove your age. This could be a birth certificate or a driver’s license
Proof of citizenship. Only US citizens and lawful permanent residents qualify for Medicaid
Financial documents. These might include:
Paycheck stubs
Statements of retirement assets
SSI income statements
Bank statements
Stocks/Securities statements
Life insurance statements
Pension checks
Income tax returns for the past 5 years
Deeds to any property owned
Property tax bills
Registration documents for any cars you own
Prepaid funeral contracts
IRA account statements
Annuity statements
Proof of residence
Marriage certificate
Spouse’s death certificate (if applicable)
Veteran’s papers (if applicable)
Power of attorney
Financial authorization form
Lease agreement for an apartment (if applicable)
Of these documents, your financial documents are perhaps the most critical. This is because Medicaid is geared towards people who fall under a certain level of wealth. If you cannot prove that you fall within these parameters, you will not be approved.
That being said, there are many assets that do not factor into your eligibility calculations. Because these assets do not count towards these calculations, they are called “non-countable assets.” Examples of non-countable assets include:
Holocaust restitution payments
Personal belongings
Household furnishings
One automobile
Prepaid funeral arrangements
The primary residence
Although these assets are non-countable, it’s still a good idea to provide the state with documentation that details them. The state needs to decide whether these assets should be considered in regard to Medicaid eligibility.
Are There Any Downsides to Medicaid?
Another important aspect of Medicaid planning is deciding whether this option is truly right for you. There may be situations in which Medicaid does not provide you with the greatest level of financial security. For example, you might be in a situation where you can continue to generate serious income despite your retirement or your disability.
In this case, you would need to forgo this income in order to continue Medicaid coverage. If you do the math, you may learn that Medicaid just is not worth it. That being said, it is important to note that you may still be allowed to carry out some work or generate a certain level of income without your Medicaid coverage being affected.
You should also know that Medicare has fewer providers in its network compared to other health insurance networks. This means that your options may be more limited if you receive Medicare – but it does not mean that you will have difficulty accessing care. In the end, only a licensed professional can help you weigh up these pros and cons.
Where Can I Find a Lawyer Who Can Help with Medicaid Planning?
Planning for Medicaid can be challenging – but you do not need to do this alone. With help from a qualified Medicaid lawyer who understands elder care law, you can approach this planning process in an efficient, confident manner. Reach out to the Elderly Care Law Firm today to get started with an effective action plan. We can also help you plan for social security, estate planning, and many other important sources of funding. We know how critical Medicaid can be for the average patient, and we know how crucial it is to maximize your benefits. Book your consultation now, and you can do just that.
While each living will is unique, there are a few features that every living will should include. First, you might choose to write a “standard direction” which states that you do not want your life to be prolonged unnecessarily if there is zero chance of survival. You should then go into specifics about individual treatments, such as dialysis or ventilation. Make sure to mention whether you would like your body or organs to be donated.
In addition, you can choose whether you’d like to die at home and whether you would like to avoid invasive procedures. Finally, you can mention any religious or spiritual considerations that should be taken into account. Last but not least, you must sign your living will for it to be valid. Not only that, but other people must witness you signing the document and provide their own signatures.
Who can help me get a living will?
An elder law attorney is the best choice for help with drafting a living will. While you do not need a lawyer to create a living will, they can help you avoid common mistakes while laying out all your concerns in a valid, proper manner.
Are living wills popular?
Living wills are popular among all Americans – not just seniors. According to a recent study, living wills became more popular from 2005 to 2020. The current data shows that 72% of Americans aged 65 and older have living wills, while 52% of Americans between the ages of 50 and 64 have living wills. Despite this slight rise in popularity overall, living wills are declining among younger individuals.
What happens when you decide against CPR in your living will?
If you state that you do not wish to receive CPR in your living will, medical professionals will not try to perform CPR on you. This means that you will be allowed to pass away naturally if you stop breathing or your heart stops beating. People often choose to refuse CPR in their living wills because they are approaching the end of their life, and they do not wish to continue with a condition that shows no sign of improving. In other words, they are choosing to leave this world on their own terms.
What’s the difference between a DNI order and a DNR order?
DNI stands for “Do Not Intubate,” and a DNI order prevents medical professionals from placing the patient on a ventilator. On the other hand, DNR stands for “Do Not Resuscitate,” and it means that medical professionals cannot perform CPR on the patient. Both are similar concepts, and these orders allow patients to choose the circumstances of their own passing without unnecessary discomfort and pain.
How will medical professionals know about my living will?
The best approach is to make sure that your family doctor, your lawyer, and your family members have access to your living will. In many cases, medical professionals will access your living will through your medical records – although they may need special permission to access these files.
How is a living will different compared to a normal will?
A living will is not the same as a normal will because it covers different areas of estate planning. The official term for a “normal” will is a “last will and testament.” This estate planning tool covers mostly decisions about your property, your beneficiaries, and your inheritance. On the other hand, a living will covers only subjects related to preferences about healthcare decisions. These are called “living” wills because they can be very useful while you’re still alive. On the other hand, a “last” will only goes into effect when you pass away.
What can I do with a living will?
You can state your preferences for many future medical treatments with a living will. Perhaps most importantly, you can decide when and how you’d like to pass away. For example, you can state when you’d like doctors and your family members to “pull the plug,” so to speak. You can also state which treatments you’d like to refuse, perhaps due to religious objections. Another popular subject in living wills is organ donation, and you can decide ahead of time whether certain organs will be donated when you pass away.
What can’t I do with a living will?
It’s important to understand that living wills have certain limitations. Living wills do not allow you to request certain treatments ahead of time. You can only refuse treatments if you face a life-or-death situation. In addition, you cannot refuse care for pain relief with a living will, and you cannot refuse food or drink. A living cannot nominate someone to make decisions on your behalf, and it cannot provide help if you wish to commit assisted suicide. Finally, living wills cannot help you refuse treatment for mental health conditions.
You might be wondering why these limitations are in place. It mostly has to do with the legal and ethical obligations of medical professionals – including the age-old tenant: “Do no harm.” Writing down that you’d like to refuse pain relief is one thing, but forcing someone else to put you in a painful situation can violate their Hippocratic Oath. Furthermore, medical professionals are most qualified to make decisions about your healthcare. Even if you request a certain treatment ahead of time, a doctor might not agree that this is the right choice.
What happens if I don’t get a living will?
If you do not get a living will, you will be unable to communicate your wishes if you ever become incapacitated. There are several ways in which this might happen. You might fall into a coma, or you might be placed in a medically-induced coma. You might suffer some kind of brain injury that puts you in a vegetative state. You might be anesthetized at a time when doctors must make quick decisions about your medical treatment. If they cannot consult you about these decisions and there is no living will available, they will simply choose the option that seems best.
Estate planning is not just for the rich or retired. It provides instructions should you become incapacitated or how to care for minor children. More importantly, it becomes a living document as assets fluctuate and conditions change. Without it, acquired assets can wind up in probate for years while ex-wives, children and business partners all via for inheritance of the assets. With a little planning, you can avoid having your assets tied in probate while the court determines the distribution of your assets.
The first step is to have a will or trust. They have their differences and share some similarities and which is appropriate for you will take some analysis. One basic distinction between the two is that a will does not take effect until the owner dies, while a trust becomes effective once it is signed. This usually avoids the property being tied up in probate as things get sorted out. Once the will or trust is completed, then an executor or power of attorney makes sure that the assets are distributed as instructed. For instance, the beneficiary may not be entitled to assets until she/he reaches the age of 21; Or the owner may become incapacitated and has the power of attorney to carry out final decisions.
Proper estate planning is an intricate process that requires delibrate planning to maximize tax benefits and avoid any confusion. We here at Elder Care Law Firm would love to take the time to go over your unique situation and start an Estate plan for you. You can learn more about us at https://www.elderlycarelawfirm.com/estate-disability-planning/.
