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The following is designed to provide accurate and useful information to educate and help in the initial stages of the estate planning and/or long-term care planning process. Please know that we are happy to meet and clarify for you how this information would relate to your personal situation. Feel free to contact our office to schedule an initial consultation. The following information does not in and of itself constitute legal advice or representation by the law firm.
Trusts
- minimize estate and inheritance taxes,
- avoid death probate (even in multiple states),
- determine who will handle your affairs, should you become incapacitated, in order to avoid having to go to court,
- control distributions to minor beneficiaries,
- structure distributions to younger adult beneficiaries beyond the age of 18,
- provide for special needs beneficiaries without creating benefit ineligibility,
- protect monies from creditors or divorcing spouses of beneficiaries,
- maintain financial privacy,
- minimize the stress that can be placed on family or friends,
- minimize administrative expenses,
- maximize privacy regarding creditors and/or disinherited individuals,
- expedite access to and distribution of resources, and
- provide you with control even in the event of your disability or death.
ALTCS
- Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years
- Women need care longer (3.7 years) than men (2.2 years)
- One-third of today’s 65-year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years
Distribution and duration of long-term care services
Type of care | Average number of years people use this type of care | Percent of people who use this type of care (%) | |
---|---|---|---|
Any Services | 3 years | 69 | |
At Home | |||
Unpaid care only | 1 year | 59 | |
Paid care | Less than 1 year | 42 | |
Any care at home | 2 years | 65 | |
In Facilities | |||
Nursing facilities | 1 year | 35 | |
Assisted living | Less than 1 year | 13 | |
Any care in facilities | 1 year | 37 |
Use the website’s left-side menu to click on and select topics regarding ALTCS.
- A good durable financial power of attorney which includes gifting provisions and long-term care planning powers is imperative to allow for successful long-term care planning in the future. Any powers which may be interpreted as a “benefit” to an agent acting under a durable financial power of attorney must be specifically listed (and acknowledged). An appropriate power of attorney will allow planning to go forward instead of requiring court approval, which can be costly and time-consuming.
- A living trust can be used, if you are married, as a tool to increase the amount of money that the spouse not applying for benefits (often called the “well-spouse”) will be allowed to keep when benefits are applied for. The living trust can also offer ease in transferring assets, etc., when the time arrives.
- A mental health care power of attorney is imperative in ensuring that if an individual’s behaviors are out of control, the individual can easily receive treatment in a geriatric psychiatric hospital setting.
The couple then must explore how to best “spend down” the one-half of the applicant’s estate to the $2,000 resource limit. These options are very fact-specific and best discussed with an elder law attorney. You may have an ability to “spend down” without actually spending any of the money.
- your specific care plan
- family dynamics
- taxes
- specific resources
- income
- your timing
- your health status
- your legal documents
Disclaimer
This information is not intended as legal advice and does not create an attorney/client relationship. The information provided on this site is as current and reliable as possible. No general information can replace a one-on-one conference with an attorney to discuss your particular and individual situation. This information by itself is not to be relied on to do legal estate planning or ALTCS planning.