- You have no estate plan! I cannot think of a reason why any adult should not have at least a Last Will and Testament, durable power of attorney, and advance directives (healthcare documents: living will [do you want artificial life support?] and healthcare power of attorney). If you die or become incapacitated without having any of these documents, state law controls what will happen, not you (through your documents) or loved ones. This could cause unnecessary and unexpected costs, delays, and loss of privacy.
- If any of these have occurred to you or, if married, to your spouse: marriage, death, birth, divorce, second marriage. These occurrences call for a review of your estate plan. Not reviewing your will and/or trust after any of these events could lead to unintended beneficiaries or fiduciaries.
- Speaking of fiduciaries…review the people you designate as fiduciaries in your documents, such as executor of your will, trustee of your trust, guardian of your children, agent in your powers of attorney, to name a few. Are they still alive? Are they still capable of serving? Do you still want them to serve?
- Review your beneficiaries. Review who you listed to inherit from you. Are they still alive? Do you still want to bequeath to them, or add additional beneficiaries? You should definitely review life insurance and retirement plans and other assets that have beneficiary designations, since the person you name on such a designation will inherit regardless of what your estate plan states.
- Your current plan is more than a decade old. There have been many tax and other changes that could affect older plans, but a major change with my practice is that my clients now plan for their “digital assets.” What happens to your pictures on Shutterfly, or your Facebook and LinkedIn accounts? What happens to money in your etsy or ebay store’s PayPal account? Do you want your spouse to have access to your Facebook account at your death? Or your emails? These “assets” should be reviewed, and you should consider what you want to happen to them at your death.
- Trust funding. There have been so many people who have created a trust plan but did not fund the trust, which meant at death the trust was useless. You must fund a trust, which means you put assets into the trust—typically by re-titling or deeding assets from you personally, to you as trustee of your trust. You can fund while living, or set it up so that this funding occurs at your death.
- Beneficiary becomes disabled. If a beneficiary has become disabled, or you wish to provide for a beneficiary who is disabled, then it is paramount that you discuss special needs planning, such as a special needs trust, with your attorney. Leaving assets directly to a disabled beneficiary could jeopardize certain benefits they might receive, such as Medicaid.
If you would like to discuss your estate plan, contact me at firstname.lastname@example.org.
A child or adult with a disability can now save money without jeopardizing means-tested benefits with Ohio’s STABLE account.
“ABLE” accounts permit an individual with a disability to save money without having the savings jeopardize certain benefits such as Medicaid and Supplemental Security Income (SSI). Historically, to receive Medicaid, SSI, and other benefits, you had to have a very minimal amount of savings, typically $1500-2,000. Now, an eligible person with a disability can save money without worrying about losing these necessary benefits. Ohio’s version of this special savings account is called a STABLE account.
STABLE account specifics:
- STABLE accounts permit you to deposit up to $14,000 a year into an account that you choose from accounts with varying investment options.
- To be eligible for opening a STABLE account, the person with a disability had to have onset of the disability prior to age 26.
- Additionally, the person must be either entitled to SSI, or entitled to Social Security Disability Insurance (SSDI), or have a condition listed on the Social Security Administration’s “List of Compassionate Allowances Conditions,” or can self-certify (see website for requirements to self-certify).
- You do not need to reside in Ohio to open a STABLE account—enrollment is open to eligible people nationwide.
- A person with a disability can open their own account. A parent, legal guardian, or agent in a power of attorney authorizing actions with STABLE accounts can also open an account for an eligible person.
Contact me at email@example.com with any questions.
A friend is facing the prospect of having to consider assisted living for her mother. “Mother” is friendly, enjoys people her age, and although she loves all five of her grandchildren she does not want to live with them. She wants to remain at home but, because of dementia, she needs a “memory care” facility. She finally agreed to other living arrangements after forgetting about a pan of food frying on the stove and nearly burned her house down.
Addressing these issues before there is an immediate need for assisted living is preferable because an elder law attorney can work with you to qualify for Medicaid without losing much of what you own. To qualify for Medicaid you must have no more than $1,500 in assets. What you have, after considering exempt assets and other factors, must be “spent down.” Taking this journey without an attorney is, in this attorney’s opinion, a poor decision. Many people who decide to apply for Medicaid sell their home, mistakenly believing it will be taken–it is typically an exempt asset. Unfortunately, then, the proceeds from the sale of the home (an asset that was previously exempt) are then a countable asset which will increase the amount you must spend down.
Takeaway: if a loved one will be entering a nursing home or assisted living facility, and will need to apply for Medicaid, consult with an elder law attorney. The money you pay for the attorney’s counsel will likely not come close to the money and assets you will protect if applying for Medicaid.