|
Ask the Expert: Keeping My New Year's Resolution
Q. I did my estate planning with your firm several years ago. Since then, so much has changed-- I got remarried, have two grandchildren, and I bought a new home. I promised myself that this would be the year that I update my estate planning documents (and convince my daughter's family to do their own planning). But it is now December 13, and I have not yet made my appointment. How can I get started with updating my estate planning and how do you charge for these kinds of updates?
A. Many people look for reasons to procrastinate when it comes to doing or updating their estate planning. However, it's important to move forward and move it back to the top of your list in the new year, especially since you've had some exciting changes in your life that will have a significant impact on your estate.
Once you have done your initial estate planning, an annual estate planning "checkup" can be just as important as visiting your doctor or dentist for an annual wellness visit. Vast sums of money have been lost through missed estate planning opportunities and family battles over documents that had not been updated. In addition, an annual estate planning "checkup" can flag tax saving opportunities and asset protection opportunities occasioned by changes in the law, the economy, and your personal circumstances.
Keep in mind that even if no changes are necessary, you should annually sign updated Powers of Attorney, because some financial institutions won't accept a Power of Attorney more than a year old. Similarly, the older an Advance Medical Directive is, the less likely it is that it will be honored by a doctor or hospital.
Don't let too much time pass between reviews of your plan -- the cost to your family if you neglect your plan could be disastrous.
You asked how you can get started. To begin the review process:
- Locate the originals (or copies) of your estate planning documents.
- Review the Estate Planning Summary (a one-page list, located at the front of the binder).
- Determine whether the people you originally named to handle your affairs upon your death or disability are still the people you want to take on these important tasks. (If changes are necessary, please do not make notations on any original document, although it is fine to mark up a copy.)
- Review the Article in your Trust which lists your Beneficiaries. Are these still the people who should receive your assets upon your death.
You also asked how much it would cost to update your documents. The good news is that because you're a member of our Lifetime Protection Program, there will be no charge for us to update all of your documents. Our Lifetime Protection Program allows you to update your planning documents once a year, helping to ensure that you aren't leaving unfinished business for your loved ones. By being a member of our Lifetime Protection Program, you are entitled to:
- Annual Review of your estate plan
- Free Modifications of any document if there are changes in the law, changes in your circumstances, or just changes in your wishes.
- Free Phone Calls at any time if you have a question about your existing estate plan.
- Free Seminars and Newsletters, which can both remind you to maintain your estate plan and help educate your family members and other loved ones about it.
- Free DocuBank Renewal. If you agreed to allow us to include your Advance Medical Directive in the DocuBank electronic registry, then we will pay your annual DocuBank enrollment fee. This ensures that doctors and hospitals will be able to immediately download your most recent Advance Medical Directive (and your important medical information) in an emergency.
- Electronic Document Storage and Distribution. Your signed Will, Trust, Powers of Attorney and other Estate Planning documents have been scanned into our electronic database (backed up daily by three redundant methods) and will be stored there for your future access as necessary. At your request, we can upload these documents Docubank so that you can retrieve copies for yourself. With your permission, we can also provide access to electronic copies to anyone who might need such access.
- Free Quality Referrals. I have been in practice in Northern Virginia for over 26 years, and I know the top professionals in all fields of the law.
- Personal Discounts. Lifetime Protection Program Members enjoy a discount on any additional or upgraded legal services our firm provides.
- Priority Service. Our Lifetime Protection Program clients always get priority service and receive our highest level of attention.
In addition, since you mentioned convincing your daughter's family to come in for estate planning, we offer family members of our Lifetime Protection Program clients a 10% discount for any legal services we provide.
For more information, please call Jeannie Farr at 703-691-1888 or email jeannie@farrlawfirm.com.
P.S. If a friend or a loved one doesn't have an estate plan, now is the time to get started. They can learn more at http://www.VirginiaElderLaw.com and call us at our Virginia Elder Law Fairfax office at 703-691-1888 or at our Virginia Elder Law Fredericksburg office at 540-479-1435 to make an appointment for a no-cost consultation.
------
African Dwarf Frogs Explain-- When Generosity Could Disqualify You from Medicaid
Dear Ernie and Jannette,
My 80-year old mother, Fran, is a generous person. She told me that she gives small weekly gifts to her church, the local humane society, and to Alzheimer's research. She also has given $14,000 per year to each of her 5 grandchildren for the past 3 years. She has just gone into a nursing home and we want to protect what assets she has left and apply for Medicaid. Will her gift giving disqualify her from getting Medicaid?
Jen A. Russmom
----
Dear Jen,
Gift giving can be a risky venture for people who may need Medicaid coverage within five years.
Medicaid presumes that all gifts made in the 5 years prior to filing for Medicaid were made in contemplation of applying for Medicaid. Individuals seeking eligibility for long-term care Medicaid benefits must disclose all gifts made by the individual or his or her spouse within the prior 5 years.
Since your mother has a history of giving small weekly or monthly gifts to a charity, most Medicaid offices will not construe those to be disqualifying gifts. For instance, in Virginia, these types of regular gifts are not penalized so long as they are under $2,000 per year and there was a regular pattern of making this gift for years prior to applying for Medicaid.
As for the $14,000 annual gifts to 5 grandchildren for 3 years, that's $210,000 in gifting that will be severely penalized by Medicaid if she applies now, causing a penalty period of approximately 27 months, meaning she will be ineligible for Medicaid for about 27 months. It is possible that some or all of this gifting can be cured, and there are dozens of strategies that can be used to protect assets in connection with Medicaid qualification, so it is vital that you come in and talk with Mr. Farr before applying for Medicaid.
Whether to apply for Medicaid now and start the penalty period running or wait out the 5-year look back period before applying for Medicaid is a complex determination that depends in large part how much your mother still has in other assets.
For more information about gifting and Medicaid eligibility, read "Medicaid: The Perils of Gifting FAQ" on The Law Firm of Evan H. Farr, P.C. website.
Please also call us at our Virginia Elder Law Fairfax office at 703-691-1888 or at our Virginia Elder Law Fredericksburg office at 540-479-1435 to make an appointment for a no-cost consultation.
About Ernie and Jannette:
African dwarf frogs Ernie and Jannette have lived at The Farr Law Firm for about two years, and they belong to Evan and Jeannie Farr. They reside on Jeannie's desk, and love socializing with Big Red the Betta fish and greeting all of the clients that come to the firm.
|
Listen to Evan H. Farr, CELA being interviewed on 1500 AM (Federal News Radio) on Sunday, December 15 at 10:30 pm!
|
|
On Sunday, December 15 at 10:30 p.m, Evan H. Farr, CELA will be the guest on Federal News Radio, on a show hosted by Shirley Rooker, radio host and President of Call For Action, Inc. On her show, Ms. Rooker typically interviews top government officials, CEOs, and experts in their respective fields.
Tune your radio to WFED (1500 AM) or listen online. |
|
Find Us |
|
|
|
Upcoming Events |
All Fairfax events are at The Law Firm of Evan H. Farr, P.C., 10640 Main Street, Suite 200, Fairfax, VA 22030, and all Fredericksburg events at at 501 Westwood Office Park, Fredericksburg, VA 22401 from 10 a.m.-12 p.m. RSVP today! We hope to see you there.
---
Note: Our next Living Trust Plus: How to Protect Your Assets from the Expenses of Probate and Long Term Care seminars are on January 7,16, 21, or 30 in Fredericksburg and Saturday, December 14 (full), January 11, February 8 or March 8 in Fairfax. View the calendar of upcoming seminars and sign up here.
---------
Was this newsletter forwarded to you? Subscribe today to keep up with elder law news, "Ask the Expert" topics, and articles of interest for seniors.
|
|
Mailing Address |
|
Fairfax:
10640 Main Street
Suite 200
Fairfax, VA 22030
703-691-1888
Fredericksburg:
501 Westwood Office Park
Fredericksburg, VA 22401
540-479-1435 | |
