Rowley Law

3 Essential Steps to Get Started On Your Estate Plan

You are not the only person putting of getting an estate plan. Many American’s do. In fact, a 2020 survey done by Caring.com found that only 47.9% of adults 55 years or older have any type of planning documents. But you should not keep putting it off. While no one wants to think about being ill or passing, if the pandemic has taught us anything it is that life is not a guarantee and it is best to be prepared.

A recent article from Kiplinger entitled “The Essentials You Need for an Estate Plan” takes a look at the three things you need to do get started on preparing your estate plan.

1. Write a Will And Update Your Beneficiaries. A basic will and beneficiary designations are your first steps to directing your assets to the people you want to inherit them. However you should know that a will does not help you avoid probate.
2. Make Sure You Have A Living Will. A living will is one type of medical directive, another is a Power of Attorney for healthcare. Even if you are young it is important to have a medical directive of some type. Neither your parents or spouse will be able to make medical decision for you without the proper planning in place.
3. Decide If You Need a Trust. Getting a trust is a great way to ensure you avoid probate. A properly funded and created trust will help make things easier and less expensive for your beneficiaries. It is also a private document. A will gets filed in the county where you passed away after your death. A trust on the other hand does not normally get filed with the courts.

Putting off getting an estate plan is easy, but the easiest choice is not always the right one. Speak with an estate planning attorney and get started today to give your loved ones peace of mind.

Reference: Rodeck, D. (2021). Kiplinger. “The Essentials You Need for an Estate Plan”. https://www.kiplinger.com/retirement/estate-planning/602643/the-essentials-you-need-for-an-estate-plan

Which is Best For You, Irrevocable or Revocable

No one's life is precisely the same as another person's. This adage is true for trust as well. There are many different types of trusts, all created for different purposes. This plethora of options can make understanding trusts complicated and confusing, especially if you and a friend or family member have similarly named trusts created for completely different reasons. A recent article for the Long Island Press, "Irrevocable or Revocable: Which Trust Is Right For You?" looks at the two major categories of trust and the benefits to be had from them.

Revocable trusts are the type of trust that can be useful to all most anyone. When funded properly, they help you avoid probate when you pass and direct your assets to the people you want to inherit them. In addition, they can be used for tax planning, marital planning, and many other planning concerns. They are also, as implied by the name, revocable. This means that at any time, you can change the terms of the trust or get rid of the trust if you no longer want it.

Irrevocable trusts, on the other hand, are, as the name implies, irrevocable. While some can be modified under certain situations, not all can.  Changing the terms or purpose of an irrevocable trust is difficult at best and impossible at worst. So it is best to be sure of what you want before making and fund one. However, an irrevocable trust can offer many forms of asset protection, including Medicaid Asset Protection.

Speaking with an experienced estate planning attorney about your goals and financial situation can help you determine what is best for you. But remember, Irrevocable vs. Revocable is only the first step in figuring out what type of trust will work for you. Many other components of trusts need to be considered to find what will work best for you.  

Reference: Cona, J. (2021). Cona Elder Law. The Long Island Press. Irrevocable or Revocable: Which Trust Is Right For You?. https://www.longislandpress.com/2021/08/06/irrevocable-or-revocable-which-trust-is-right-for-you/

Britney Spears, Guardianships and Power of Attorney

Britney Spears the woman, the icon, the legend. One of the most well known pop stars of our generation, Britney has dominated the stage for years. She has also been under guardianship for years. A recent article from Elder Law Answers “Britney Spears Case Puts Renewed Focus on Guardianships and Less Restrictive Alternatives” looks at options that could have saved Britney from the restrictions she has suffered under for years.

A guardianship or conservatorship is a legal relationship where a person , the guardian, is given the legal ability to make decision for another person, the ward. The ward loses all legal rights to make their own decisions under guardianship. In Britney’s case, she can decide what she can buy, which contract to take or even if she wants to have a baby.

Proper planning can be used to avoid this situation. A Power of attorney for property or healthcare can be prepared to name some to make or help make decision for you. They stop the court from needing to become involved and allow for the a trusted and chosen individual to step in when needed.

Britney has a long way to go to end her conservator ship that could have been made easier by basic estate planning. Speak with an experienced attorney to find out what you can do to avoid ending up in the same situation.

Reference: Elder Law Answers. (2021). Britney Spears Case Puts Renewed Focus on Guardianships and Less Restrictive Alternatives.  https://www.elderlawanswers.com/britney-spears-is-giving-the-country-a-crash-course-on-guardianship-18399

Understanding Probate Can Help You Prepare

Most people know that they need planning or some type. However most people don’t understand who planning works. A recent article form The New Enterprise entitled “Understating probate helps when drafting a will” takes a look at what a will is and why one is need.

The most simplistic definition of a will is a formal documents that express a person’s wished for the distribution of their property after death.  The will, some times called a last will and testament should not be confused with a living will, which is a document that indicates a person desires regarding end of life decisions.

It is important to understand that having a will does not stop you or your loved ones from having to deal with the courts to transfer assets when a person passes. Instead, a will is the planning tool that tells the courts where you want your assets to go. Assets that are not transferred outside of probate court, will flow through the will to the named beneficiaries.

Without a will any assets that end up being probated, or transfer by the court, will be distributed based on your state’s intestacy laws. Which could result in your assets being distributed to people you did not want to have them.

Speak with an attorney to understand the planning options that would be best for you.

Reference: Griffin, C. (2021). The News-Enterprise. “Understating probate helps when drafting a will”. https://www.thenewsenterprise.com/features/seniors/understanding-probate-helps-when-drafting-will/article_407ff10e-6c3e-5237-8c0e-c5959a9fa3cd.html

COVID Brings Changes to Nursing Homes

The pandemic changed life for everyone. But Nursing home residents took an especially hard hit. The pandemic caused many resident of care facilities to be essential locked away from family and friends. Not allowed to have visitors or even leave the facility. A recent news article form USA Today entitled “After pandemic ravaged nursing homes, new state laws protect residents” looks at changes being made to the law in Connecticut to protect the elderly.

According the article, under new enacted Connecticut law,  care facility residences can now designate an “essential support person” who will be able to come the facility and help provided care and support the resident even during an public health emergency. Not only that but, the article states that Connecticut has ruled the residence of care facilities will also be given free internet access and digital devices to allow the residents to have virtual visit with their families and friends, while also allowing for video cameras to be placed in the rooms of care facility residences to allow their loved ones to monitor the resident’s well-being.

These changes will help to make care facility resident a lot more connected, even if the doors to their facilities become barred again.

Reference: Jaffe, S. (2021) Kasier Health News. USA Today. “After pandemic ravaged nursing homes, new state laws protect residents”. https://www.usatoday.com/story/news/nation/2021/08/17/new-state-laws-spurred-covid-aim-protect-nursing-home-residents/8161942002/

4 Advantages to A Revocable Living Trust

So you heard of trusts and you think they are only for rich people. But that is not true. There are many different types of trust and they can be used to help people with many different things. A basic revocable living trust can be useful for you even if you don’t own much. An article form Kiplinger “What is a Revocable Trust and Do I Need One” looks at four advantages to having a basic revocable living trust as part of your estate plan.

1. No Probate Court. A revocable living trust that is properly created and funded with you assets, be the vast or scant, will avoid the time consuming and expensive process of having to probate your assets after passing.
2. Avoid Conservatorship. If your revocable living trust owns any of your assets, and you becomes incapacitated your Trustee, the person you appoint to be in charge of your trust, can step in and take care of those assets without needing to go to court.
3. Revocable living trusts are very flexible and are able to be changed after you sign them. That means if something changes in your life, your revocable living trust can be updated to reflect that.
4. Unlike a will, a revocable living trust is a private document. That means that not just anyone can get a copy. This makes sure that your wishes stay private and can also help protect your heirs from people who might target them.

A revocable living trust can be useful to many people. If you are worried about privacy, having the ability to change your mind, avoid court control of your assets and avoid probate a revocable living trust may be the right choice for you. Speak with an experienced estate planning attorney to find out how a revocable living trust can help you.

Reference: Ruce, P. J.D, L.L.M.(2019). Kiplinger. What is a Revocable Trust and Do I Need One. https://www.kiplinger.com/article/retirement/t021-c032-s014-what-is-a-revocable-trust-and-do-i-need-one.html

Elder Law Keeps Your Golden Years Golden

You may not have heard of elder law before and you may not think it is something you would need. But before you make that decision, that a recent report from Genworth found that seven out of ten people will end up needing long term care services in their life time. In addition,  as pointed out in a recent article from the Sentinel, “Elder Care: May is Elder Law Month”, the majority of the cost for this long term care will not be covered by insurance.

This is where elder law is important. Elder law is a complex practice that combines legal  and financial issues while also considering social and moral issues as well. Elder law attorney focus not only on the estate planning and estate administration need for the aging, but also tend to work with other professional and members of the care team for the client to maximize a client’s quality or life and help to make sure their needs and desires are meet.

No one wants to think about what happens when they can’t take care of themselves any more, but speaking with an attorney experienced in elder law can help to ensure that your golden years stay golden.

Reference: Kaslow, K. (2021). The Sentinel. “ Elder Care: May is Elder Law Month”. https://cumberlink.com/news/local/neighbors/elder_care/elder-care-may-is-elder-law-month/article_aa31cd39-f4d7-5261-8026-a78d8f34d286.html