Most families have no idea how quickly a health emergency can clean out savings accounts, lead to fights and send them to court to untangle legal headaches. Having an estate plan created by an experienced estate planning attorney can protect assets, reduce conflict and provide guidance for families through difficult times. The recent article, “5 Reasons You Need This Kind of Lawyer To Protect Your Family’s Money (and Your Peace of Mind)” from AOL explains how to address the family’s needs.
Nursing home care is expensive. Medicaid doesn’t cover care automatically. Depending upon where a person lives, nursing home care can range from $10,000 to $40,000 monthly. Having an estate plan in place before a health emergency can protect assets, so they won’t be counted when applying for Medicaid.
An irrevocable trust, also known as a Medicaid Asset Protection Trust, is a commonly used tool. However, it must be created and funded at least five years before care is needed. There are strict lookback periods for Medicaid, and each state has its own rules. The right plan depends upon each family’s situation. This is why an experienced attorney is needed.
Having to make money and caregiving decisions in an emergency can spark family battles. A better way to plan as parents age is to have a meeting with an experienced estate planning attorney to discuss wishes openly, allowing parents and adult children to participate in the discussion and plan. Having an attorney present provides a neutral voice and could keep discussions from becoming heated.
If a parent becomes incapacitated, someone still needs to pay bills and make medical choices. To avoid having a court make this decision, a Power of Attorney needs to be created so someone can step in and manage property and finances. A Health Care Proxy is also required to keep medical decision-making in the family’s hands, and not the courts.
An estate plan also coordinates wills, trusts and beneficiary designations to be sure all of these align. Without coordination, assets may end up in probate, diminished, or lost in disputes. An estate planning attorney’s guidance ensures that the estate plan reflects the person’s needs and hopes and protects wealth so it remains in the family.
The process begins with a consultation with an experienced estate planning attorney. They will ask a lot of questions about the family, finances and goals. The more information provided, the better the plan will be.
Don’t wait until a health emergency to address estate planning. The earlier the planning begins, the more options will be available.
Legacy One Law Firm, APLC is an estate planning and probate administration law firm in Los Angeles, California, serving families throughout the State. Schedule a quick and easy consultation with our estate planning attorney, Sedric E. Collins, Esq., or call 323-900-5450.
