Ten Critical Estate Planning Questions

1. Do you know what will happen to your property upon your death and who would carry out your wishes?

2. Do you know who would take care of your minor children and do any of them have special needs?

3. Would you want your property distributed to your children at age 18 or would it be better if the property was held in trust for their benefit and distributed to them when they are older?

4.  Have you adequately planned for special family circumstances such as a second marriage or do you or your spouse have children from a prior marriage that require special planning or wonder about what would happen to your property if it goes to your spouse who may someday remarry?

5.  Do you wonder who would be in charge of managing your assets and financial affairs if you become incapacitated?

6.  Have you planned for how you would pay for long term care if you need help living at home, in an assisted living center or at a nursing home?

7.  Do you have living will and health care power of attorney to be sure you get the medical treatment you want if you are incapacitated?

8.  Would you be interested in avoiding the expense and time involved in probating your estate?

9.  Have you reviewed your life insurance needs and beneficiary designations to be sure they meet your needs and again are consistent with you overall estate plan?

10.  Do you own a business or other investments or have tax issues that might benefit from more sophisticated estate planning strategies?

The above questions illustrate there is more to think about than you may realize.  We understand how to be sure your estate plan achieves your objectives.  Contact us for a free consultation.

Why You Need an Estate Plan

If you don’t have a will and other estate planning documents to specify your intent and desires after your death, you really do need to prepare one. Although it is understandable to procrastinate, failure to adequately plan can have disastrous consequences, both personal as well as financial, for your family.

Every individual actually has an estate plan. If you don’t take the time to prepare your own estate plan, the State of Idaho will do it for you.  So the question is not whether you will have an estate plan, but whether you will have an estate plan that does what you want it to do.

Preparing a Will

At a minimum you need a will, a legally binding document that addresses how your assets will be distributed at your death and names a personal representative who will assist with the administration of your estate.  The will might even create a trust to hold property for minor children, as well naming a guardian for them.

One other thing to consider.  A will outlines your wishes about the distribution of your property after death, but generally a probate will still be required.  Depending on your circumstances, this may or may not be a problem.  You may want to consider a living trust.

Advantages of a Living Trust

A living trust creates a trust that can hold ownership to your real property and assets. When you create a Revocable Living Trust you transfer ownership of your assets to the trust. It is important to understand that you do not need to relinquish any control. You and possibly your spouse can act as trustee. You can still buy, sell, borrow or transfer property in the trust. And the terms of the trust can be changed during your life if you change your mind.

The advantage is that when the assets are in the name of the trust there is no need for probate. After your death, the trust identifies the person who will act as successor trustee. The trust gives that person the right to manage and distribute the assets in the trust as you have directed in the trust agreement.

Whether or not a living trust makes sense for you depends on your personal situation. The potential advantages of a living trust include:

• If an illness or accident leaves you incapacitated, your successor trustee can handle your financial affairs without the need for a court appointed conservator.
• If the beneficiaries of your trust are minor children, the trust can continue to hold the assets until they reach a more mature age.
• If you transfer all your property to the trust, it avoids the delay and legal expenses of probate. And your estate plan is not a matter of public record.

Durable Power of Attorney

A will does not help if you become incapacitated due to an illness or accident. You need a separate durable power of attorney.  A durable power of attorney appoints a person to act as your agent on your behalf.  The agent can use your funds to pay your bills, obtain services for your benefit and even make basic health care decisions for you.

You may want to create a durable power of attorney that will only go into effect in the event you are incapacitated or when some other stipulated event or condition occurs. This is called a springing durable power of attorney.  A durable power of attorney may be revoked by you at any time, so long as you are competent to do so.

Living Will & Health Care Power of Attorney

A living will lets your health care provider know the kind of life support treatment you would want in case of a terminal illness or injury.  However, it only applies to life support in terminal situations.  You also should have a health care power of attorney, which lets you give legal authority to another person possibly your spouse or an adult child, to make any health care decision for you - including the use of life support - if you become unable to do so yourself.

Long Term Care

Like most people, you have probably not taken time to plan ahead financially for your (or maybe your parent’s) long term care needs. Or you may think that Medicare, Medicare supplemental policies or standard health insurance policies will cover the costs of long term care services provided in settings such as nursing facilities or assisted living residences. Unfortunately, they don’t and as a result many people are needlessly impoverished each year by the costs of long term care.

Long term care insurance is an excellent way to protect yourself from these expenses, but finding a good policy is a complex task. You really need to talk to your financial planner or insurance agent about the advantages of long term care insurance in your particular situation.

We think you should also consider the following before making a decision:

• Check to make sure the insurance company you are considering is financially secure.
• Make sure the insurance agent is licensed to sell long term care insurance in your state.
• Review all the details and options of the policies. Do not rely solely on the marketing materials or outline of coverage.
• Make sure you understand all the provisions before you purchase any policy.
• Discuss policies with family members and others whose opinions you respect.
• Don't be pressured into making quick decisions.

Selecting the right long term care insurance policy will offer you and your family financial security, peace of mind and choice in care settings for the future.  We have the knowledge to help you make the right choice.

Qualifying for Medicaid

If you don’t have long term care insurance and end up in a nursing home the financial cost can be devastating. In fact, many people just end up paying for nursing home care out of their savings until they have exhausted their savings and can qualify for Medicaid. We can help you avoid this result.

Careful planning, whether in advance or in response to an emergency, can make all the difference in the world. However, the rules as to whether or not you qualify for Medicaid are very complex. We understand the rules and can help you qualify for Medicaid while protecting your assets to the greatest extent possible. Please contact us for a free consultation to find out what the best course of action is for you and your family.