An estate plan is a comprehensive plan for what to do when you are incapacitated or otherwise unable to manage your affairs. It also provides for who will manage your estate upon your death and how you would like to distribute your assets after your death. A will is merely a document that provides you the opportunity to name a personal representative and a method of distribution of your assets upon your death.
No, in fact, a will is only effective when the Probate Court provides authority to the personal representative named in the will or otherwise names and empowers a personal representative.
It depends–The Probate process has pros and cons. It is not, however, the scary, avoid-at-all-costs process that some make it out to be. In some cases, it may even have benefits. You should have a thorough discussion about what your goals are to determine whether avoiding probate is an important goal of your estate plan.
A trust is a legal document that is effective immediately upon signing that legally manages all the assets that are assigned to the trust. It only works if it is properly funded. A trust can, but does not have to, continue for many, many years after your death.
A trust only controls those assets that are owned by the trust. Therefore, funding is the legal process by which assets are retitled or transferred from your name to the name of the trust.
This seemingly simple question is the heart of the discussion between you and your estate planning attorney. Both have benefits and drawbacks. The decision to choose one over the other should be made based on the type of assets you own, the estate planning goals you have, and any family issues that exist. The answer to this question is one of the recommendations you estate planning attorney is trying to determine.
Up until 2012, a large portion of an estate planning attorney’s job was to help his clients to avoid paying estate taxes. In 2012, the estate tax jumped to ,120,000 (in 2016 it is ,450,000). Additionally starting in 2011, one spouse may pass their exemption to the other spouse. This is called portability. This same principle involved in portability is ultimately part of what the estate planning attorney sought to accomplish through the use of AB trusts. These are no longer necessary—for tax purposes.
Life Care Planning is a holistic approach to the care needs of elders. We focus on maximizing the quality of life and independence while preserving assets from the high cost of care. We provide assistance with legal, financial, and care related challenges elders face.
To be eligible for Medicaid, an individual must be both financially eligible and medically eligible. Medically, the individual will need to show that they medically require the service. In the case of long-term care that means that the person has difficulty or is unable to perform normal activities of everyday life. To be eligible financially, an individual must have $2,000, a house, and a car.
Long-term care insurance provides coverage for long-term care expenses.