Elderly Divorce To Protect Assets – Did you know that nursing homes are some of the biggest lenders you are likely to encounter in your lifetime? It’s true, and the average American is bound to bear this common financial burden at some point. The latest monthly costs calculated by the Genworth Cost of Care Survey for Orlando, Florida are truly shocking. Genworth estimates the median monthly cost at $3,700 for an assisted living facility and $9,125 for a semi-private room in a nursing home. The reality is that the primary source of funding for most people will be Medicaid. To benefit from this service, certain things must be proven, concerning the assets and the annual income. Aubrey Harry Ducker Jr. Along with other respected senior attorneys, they have provided a helpful resource to help in this situation. Read on to learn more about Medicaid eligibility requirements and asset protection strategies.
Although end-of-life care has become one of the biggest expenses people face, only 10% of the population have long-term insurance. For the other 90%, Medicaid should be the sole basis for footing the bill. However, Medicaid is a means-and-needs based program. In other words, anyone who applies must meet certain criteria in terms of their ability to pay for their treatment. This includes, in particular, their personal assets and their annual income. Depending on the state, applicants must demonstrate limited resources and low income to qualify.
Elderly Divorce To Protect Assets
To make sure your assets are safe for your family, a trusted attorney can help. With practice and a basic understanding of the Medicaid Asset Protection process, you can make sure it gets done. There is a complex process of preparation, planning and finally strategizing that your trusted attorney can use. Indeed, it is important that all middle-class Americans find protection for their assets. Professionals who work with seniors and their families can successfully avoid the potentially devastating costs of nursing homes and long-term care. With their estate planning strategies and knowledge of different types of trusts, lawyers like Aubrey Law protect your family.
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Medicaid rules and regulations change and evolve with time and population. For this reason, it is important to always stay up to date in order to plan successfully. Aubrey H. Ducker Jr. I recently had the honor of participating in an educational resource available to all seasoned attorneys. This latest continuing legal education program from the National Business Institute provides an overview of asset protection concepts and strategies. By using this practice-based resource, senior attorneys can legally and ethically protect assets while enabling Medicaid eligibility. It includes a set of crisis management tools that will prevent and correct any unintended loss of profit for the client.
This presentation of information is invaluable and essential for senior lawyers thanks to its 6 hour duration. Read the summary of this legal guide to providing asset protection strategies and ensuring proactive eligibility for Medicaid:
Since 1999, our attorneys have been assisting clients in family, elder and probate matters. Are you dealing with probation, child custody or recent divorce issues? If you are looking for legal advice, contact the law offices of Attorney Aubrey Harry Dicker Jr. Our offices handle all types of legal representation, from family law to elder law. Call us today at (407) 647-7887 or send us a message. Aubrey Harry Ducker Jr. Attorney. It serves Altamonte Springs, Longwood, Maitland, Orlando, Oviedo, Winter Garden, Winter Park and Winter Springs and surrounding areas. Beneficiaries are common designations in retirement accounts, wills, and trusts, so chances are you have one. In the event of a person’s death, a beneficiary receives income from a financial product or vehicle. When life changes such as divorce, death, wealth accumulation, restriction of eligibility for government programs, etc. occur, a simple instruction to name a beneficiary can suddenly become complicated.
Keeping your beneficiaries informed is part of your estate planning and financial wellness routine. However, revising your plans can be overlooked during emotional challenges, such as in the case of a divorce. Existing life insurance policies, an IRA, or an old 401(k) can still list your ex-spouse as the beneficiary. Some states now automatically terminate a former spouse’s beneficiary status when the marriage is legally dissolved, but others do not.
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If you are or are going through a divorce, the wealth accumulation in these types of accounts may be best used to supplement your retirement, or the account may have a death benefit that increases over time that you want to keep. Also check any policies provided by the employer that may have named the ex-spouse as a benefit, as many people overlook this.
When naming your beneficiaries, consider whether receiving the money is truly beneficial, as there are instances where it could inadvertently have a negative financial impact. An example is the case of a person with special needs. Beneficiary status and any inheritance may exclude them from government support programs. Or a person on Medicaid must leave the program until the assets are spent, then reapply for the benefit program.
Another example of negative financial impact is the inheritance of multiple siblings, one being wealthy and the others not. Although dividing your property equally between three siblings may seem like the right option, it may not be. Wealthy siblings may see their tax liability increase due to inheritance and lose money if they move to a higher tax bracket. In addition, the other two brothers may have greatly appreciated and benefited from the extra money inherited. A well-to-do child may receive an inheritance or other physical asset to compensate for the extra payment from others.
Some estate plans are very simple and only one person benefits. For example, this person may receive a tax-free death benefit or have a retirement account transferred directly to the surviving spouse’s name. But personal and family situations are often complicated. Or you want to distribute resources unevenly or differently.
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An estate planning attorney can help you understand how to use a life insurance policy as the beneficiary of your estate. Without careful planning, your life insurance death benefit can leave the estate in probate and be tied down with tax and debt issues. It can be even trickier to include retirement accounts or other financial assets, especially if they cross the federal tax-exempt threshold of $12.06 million in 2022.
Naming your children as beneficiaries, especially on life insurance policies, is quite common, but without proper planning there are potentially negative consequences. If your children are between the ages of 18 and 21 (depending on the state), they can receive direct benefits. Often a young man does not know how to handle a sudden large inheritance. Judicial guardianship through a trust can be an advantageous solution.
A trust may also allow children who are under the age of majority to inherit the benefit after their death. A trust can properly manage the finances of your minor children with an appointed trustee, often the name of a legal guardian. A legal entity to support your minor children is much better than leaving the money to another family member to take care of your children. There is no legal guarantee that the person who inherits the money will use it to benefit your children.
Lack of communication creates problems. Inform your family and loved ones that you are making them beneficiaries, as this could increase your tax burden or disqualify a loved one from government support programs. Financially well-off heirs may prefer to inherit family rather than money.
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Advising heirs on beneficiary status and subsequent changes also manages their expectations. If someone loves you but will not receive a death benefit, they are usually worried about change. Communicating changes in the recipient’s status can help prevent hurt feelings and family conflict.
As the value of your estate increases, questions such as who benefits from what and how your estate plan fits into your family system become increasingly complex and often require adjustment. Be sure to define beneficiary status in your estate plan in a truly beneficial way and review it often to ensure it reflects changes in your life circumstances. For more information and questions about your personal situation, contact our office at 302.651.0113. Farm and Family: Security trusts, business entities, prenuptial agreements, and liability insurance coverage are ways to protect your assets.
Long-term care implications: When planning an estate, remember to include long-term care costs. Often this risk is overlooked in the discussion. Consider income-generating assets or long-term care insurance to cover these potential expenses.fizkes/Getty Images
I’ve been talking to people a lot lately about how to protect assets. Risks that cause concern often include lawsuits, divorce, bankruptcy and loss of life. For each of these risks, there are options to protect assets for you and your family. These options may include security funds, business entities, prenuptial agreements, and personal injury insurance.
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