Walter D White A Professional Law CorporationEstate Planning Elder Law Lawyer Shreveport | Wills & Trusts2024-01-19T16:42:31Zhttps://www.nlalaw.com/feed/atom/WordPressOn Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=469722024-01-19T16:42:31Z2024-01-19T16:42:31ZLong-term care is prohibitively expensive
Even those who have consistently saved for retirement may not have nearly enough set aside to cover the cost of living in a nursing home or having a nurse visit them in their own home on a daily basis. Such services can cost thousands of dollars per month. Medicare typically does not cover long-term care costs.
People instead need to pay with their own resources or apply for Medicaid benefits. Unfortunately, Medicaid can be difficult to obtain without advanced planning. Not only do applicants need to meet very strict standards for their current income and total assets, but they also need to avoid large transfers right before they apply for benefits.
Medicaid professionals usually look back at a full five years of someone's financial transactions. Those who make gifts to their family members during that lookback period or who move assets into a trust could be at risk of a Medicaid penalty. The state can hold them personally accountable for a certain number of months of care costs based on the transfers they completed during the lookback period.
Those who carefully plan long in advance can potentially minimize the possibility of the state assessing a penalty. They can also protect their assets from estate recovery efforts after they die. Medicaid usually pursues reimbursement for long-term care coverage from someone's estate after a recipient dies. The state could even lay claim to someone's primary residence and assets that they earmarked for their children.
The only way to protect vulnerable assets from liquidation during probate proceedings is to plan before death, either by sharing ownership of those assets with another person or by transferring them to a trust. Proper long-term care planning both increases someone's chances of getting the support they need as they age and protects the legacy that they planned to leave after their death.
Addressing potential long-term care needs before someone requires support can be beneficial for them and the people they love. Seeking legal guidance is a good way to get started.]]>On Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=469712023-10-24T18:21:33Z2023-10-24T18:21:33ZWho should I name as my executor?
Most people choose a relative or a close friend to act as the administrator of their estate. The person you choose should be someone who fully understands and respects your wishes and those of your heirs. The executor should also handle your sentimental and real property more sensitively than a paid professional.
During the estate planning process, consider whether your chosen individual is up to the task of handling your assets, especially if you have amassed considerable wealth. Your executor should also have the time to settle your estate, which generally takes six to nine months and be able to follow all state laws and probate court requirements. This individual should also have an even temperament to deal with heirs who may be unhappy about the assets allocated to them. They should also be well-organized and have financial or legal experience. The last requirements are optional, but an executor should have more than a basic understanding of these issues.
Establishing your estate plan
Naming an executor is just one part of your estate plan. Consider other elements, such as creating various types of trusts, designating beneficiaries for investment accounts and creating power of attorney for financial and healthcare concerns. The last document can also include end-of-life directives.
Keep in mind that estate planning is a fluid process. You can modify your terms at any time. If you don't have a close friend or relative up to the task, you can name a professional or a bank to handle the job. Reviewing your estate plan every few years to ensure it meets your needs is also a good idea.]]>On Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=469702023-07-25T00:39:19Z2023-07-25T00:39:19ZName beneficiaries
Estate planning requires naming beneficiaries you wish to receive an inheritance. This could be your spouse or children; however, if you’re single without children, you can name your parents, siblings, other relatives or even a friend.
Name a contingent beneficiary
Most people automatically choose one person as the beneficiary to their financial accounts; however, life is often unpredictable, so it’s a good idea to name a contingent beneficiary. This secondary beneficiary can receive your assets if your primary one passes away prematurely. It’s a safeguard for a “just in case” situation.
Update for major life events
Updating your beneficiary designations is necessary whenever a major life event occurs. This includes marriage, divorce, remarriage, the birth or adoption of a child and death. You may also want to change your beneficiaries if you are suddenly diagnosed with a serious health condition.
Don’t name your estate
Sometimes, it might be tempting to name your estate as a beneficiary on one of your financial accounts. It’s better to avoid doing that because it could result in the account going through probate instead of directly to a person. This also carries other consequences; your financial account might be subject to hefty taxes, which could burden your survivors.
Disinheritance
If you have a falling out with a close family member and want to disinherit them, you'll have to remove them as a beneficiary. The same applies if someone decides they don't want to receive assets from you for any other reason. Or you may have an estranged relative you're unable to locate; you may want to replace them with another beneficiary you have regular contact with.
Often, people disregard the importance of beneficiary designations. Paying close attention to them can lessen the burden on your loved ones.]]>On Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=469642023-04-20T21:01:31Z2023-04-20T21:01:31ZImportance of estate planning at any age
The truth is, you don't know what's going to happen. If the worst should happen and you don't have an estate plan, all your things would go through probate.
Sometimes all your belongings would go to your next of kin - your parents, a sibling, etc. However, the probate process could take a while without an estate plan. And if you don't have any direct next of kin, your belongings might not go anywhere.
Even if you have parents and siblings, things can get complicated if they live far away and you don't have an estate plan on file. This estate plan would allow you to provide contact instructions to your friends or the state.
Acting sooner rather than later
Starting your estate plan when you're young and revisiting it as you grow is considered the best practice. The first step for many individuals will be writing out a last will and testament.
Even when your things go through probate, having a will can make the process much quicker. When you start estate planning young and revisit it often, you can make any changes - like adding assets or removing an ex as a beneficiary.
Estate planning on a larger scale
If you have a larger estate, you may need more estate planning tools. In addition, as you grow older, you may consider adding more documents that appoint power of attorney and lay out advanced health care directives.
Estate planning can be a big undertaking. So it’s no wonder many singles put it off for so long. But starting early can save your loved ones a lot of grief when the time comes.]]>On Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=469632023-01-10T18:08:27Z2023-01-10T18:08:27Zwith an advance directive.
Deciding for when you cannot decide
Sometimes called a living will, an advance directive is a document in which you explain what sort of medical attention you would want in various scenarios. For example, you can decide ahead of time if you would want to be attached to a ventilator or feeding tube to prolong your life. Or if you would object to a blood transfusion, as many people do for religious reasons. These decisions are up to you, based on your personal values.
You can also create a healthcare power of attorney to choose somebody to make medical decisions on your behalf if you cannot make them yourself, such as authorization to undergo surgery. The person you choose to be your healthcare power of attorney can be virtually anyone you trust, such as your spouse or one of your adult children. As long as you are mentally able to make decisions about your own care, the healthcare power of attorney will not go into effect.
More than a will
Your estate plan can be as simple as a will, but it can be much more than that. A discussion with an estate planning lawyer can be the first step toward greater peace of mind for yourself and your family.]]>On Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=469592022-10-20T18:52:34Z2022-10-20T18:52:34ZPreparing yourself for the conversation
Preparing to explain your estate plans may mean understanding your estate planning goals and being able to articulate them clearly. You need to be able to explain why you're estate planning and what you hope to achieve. Your family members should also understand the distribution of the estate.
Have the conversation in the right atmosphere and time
Every family is different, so you'll need to gauge what will work best for yours. You might want to have the conversation over a nice dinner or during a family vacation. Make sure that everyone is relaxed and receptive to what you say.
Be open, honest and patient
Your family members need to know what your estate plan entails. Tell them about your will, your beneficiaries, and any other important details. This way, there won't be any surprises down the road. Also, note that your family members might not be ready to have this conversation immediately. And that's okay. Just let them know you're open to discussing estate planning whenever they're ready.
Underscore the importance of the conversation
Many people avoid estate planning because they think it's morbid or depressing. But it's important to remind your family members that estate planning ensures their wishes are acknowledged and fulfilled after you're gone. It's a way of showing them how much you care. Also, estate planning can be a way to resolve any lingering family conflict.
Whatever you do, avoid getting into a fight with your family about estate planning. Remember that your family members might have estate planning ideas that are different from yours. Therefore, it's essential to listen to their concerns and devise a plan to which everyone can agree.]]>On Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=469572022-07-23T22:42:32Z2022-07-23T22:42:32ZMake sure to review all plan documents
While a will or trust may be the foundation of your estate plan, it may not be the entirety of it. If you have a financial power of attorney, a health care directive or other estate planning documents, be sure to take a look at them as well. This will help to ensure that you don't have a dead relative named as your agent or a directive that no longer reflects your wishes.
Is your plan still viable in your new home state?
You need to review a will, trust or other plan documents when moving across state lines. This is because your new state may require a will be signed by two witnesses instead of one or require that all plan documents be typed instead of written by hand.
Keep an eye on your financial plan
Over time, you may open a number of bank, brokerage or other types of financial accounts. Reviewing these accounts can help to ensure that you remember to account for them within your estate plan. It also gives you an opportunity to add or edit beneficiary designation forms or make other decisions that may allow your plan to achieve its goals.
Staying on top of your estate plan may make it easier to care for dependents when you are no longer able to. It may also ensure that your affairs are settled in a timely manner, which may prevent conflicts between family members.]]>On Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=468062022-04-19T20:30:37Z2022-04-19T20:30:37ZDo you want to avoid probate?
An effective way to avoid probate is to place assets into a revocable living trust. Assets that are titled in the trust's name are held outside of your estate, which means that they don't need to be distributed at the time of your death. You may also be able to avoid probate by attaching a transfer on death (TOD) designation to items such as bank accounts, cars or other eligible property.
Are you looking to make gifts or reduce your estate tax obligation?
A trust may also be an ideal estate planning tool to use if you want to make gifts or reduce your estate tax obligation. If either of these apply to you, it may be best to create an irrevocable trust. Although you have less control over the assets that are transferred from your estate, this lack of control makes it harder for creditors, the government or others to invalidate the document.
What else might you add to an estate plan?
A financial agent may be able to manage your finances while you are incapacitated for any reason. A medical agent may communicate with your doctors to ensure that you only receive the treatment that you would have asked for if you could speak on your own.
When structured correctly, an estate plan makes it easier to manage your affairs before and after your death. Furthermore, an estate plan that is structured properly is less likely to be challenged, which means that there is a lower risk of family infighting after you pass.]]>On Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=468052022-01-14T21:55:57Z2022-01-14T21:55:57ZYou can be the trustee and a beneficiary
One of the key benefits of a revocable trust is that you can serve as a trustee and name yourself as a beneficiary. This means that you have a greater level of control over trust assets even though you don't technically own them. However, this also means that these items are more likely to be vulnerable to creditor claims because you still have control of them.
Revocable trusts become irrevocable at the time of your death
A revocable trust cannot be changed after your death. An exception to this rule is if both you and your spouse both serve as trustees. In such a scenario, your spouse oversees the document and can still make changes to it. When your spouse passes away, the trust is frozen and will be administered by a successor trustee.
Trusts generally take effect as soon as they are executed
One of the biggest differences between a will and a trust is that a trust will take effect as soon as it is executed. Therefore, it can serve as a powerful estate planning tool during your lifetime as well as after you die. For instance, if you become incapacitated, the trust may provide a source of income to pay bills or otherwise provide for your needs.
A revocable trust may be an effective way to manage your affairs now and in the future. Ideally, you will review your trust on a regular basis to ensure that it still meets your needs and conforms with state law. Assuming that this document is structured properly, it may allow assets to be distributed without the need for probate.]]>On Behalf of Walter D. White, A Professional Law Corporationhttps://www.nlalaw.com/?p=467732021-10-13T05:24:33Z2021-10-13T05:24:33ZCyber assets can have significant value
You may not be able to touch them, but various cyber assets, including cryptocurrency, represent considerable wealth and should be part of your estate plan. Digital assets present unique problems when it comes to estate planning. For one, if you don't tell anyone that you own them, they can be lost forever after you pass away. Digital assets include cryptocurrencies and concurrency blockchain tokens. Learning how to incorporate them when you can to transfer or gift your wealth can present significant challenges.
However, as with assets you can physically touch or bank and investment accounts, you should devise a plan to transfer your crypto wealth upon your death. That may not seem much for small-time investors of Bitcoin or other cryptos, but think of what those investments were in 2010. They were tiny, and for some investors, that initial sum has produced considerable wealth.
Protecting your crypto wealth
The critical thing to remember is to include your cryptocurrencies and other similar assets in your estate planning process. You don't necessarily need to tell your hirs that you own cyber wealth, but if you have it, you need to plan on how you will pass it to them.
Take your time and discuss how and to whom you want to pass on cyber assets, even if the amount isn't significant. It can end up being an important part of your legacy.]]>