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Queen Elizabeth’s School of Estate Planning: 3 Lessons to Learn

Queen Elizabeth’s School of Estate Planning: 3 Lessons to Learn

by | Oct 4, 2022 | Blog, Estate Planning

Estate Planning

As you might imagine, the royal estate of Queen Elizabeth II was massive, with an estimated value of about $27 billion. Personally, the Queen’s net worth was around $500 million. The bottom line: a huge transfer of wealth is about to happen.

The good news is that, as you might expect from British royalty, the Queen’s estate plan was a masterpiece. Not only did it account for a plethora of diverse assets—trusts, real estate, a family business, fine art, jewelry, and even assets owned by separate trusts—but it was impeccably maintained to address the many changes that occurred throughout the duration of her life.

We may not have royal estates, but we can certainly learn from the Queen’s savvy approach to estate planning. Here are 3 estate planning lessons fit for a queen (but applicable to you, too):

1. Have your documents in order. An effective estate plan includes more than just a will or trust. Important documents, like a Durable Power of Attorney or Advance Directive for Healthcare, should also be in place. Beyond having the right series of estate planning documents, making sure your loved ones know where to find them, as well as what their responsibilities may or may not be in administering your estate, is of equal importance.

2. Make regular updates to your plan. Estate planning isn’t a set-it-and-forget-it activity. As your life changes—for example, you have children or grandchildren, get married or divorced, or lose a loved one—your estate plan needs to be updated accordingly. Because the Queen’s life was lived more publicly than most, we know of several occasions where updating her estate plan became a matter of prudence.

3. Talk about your wishes before you pass away. Let your family and loved ones know how your assets will be distributed (and why), so you can answer their questions and prevent family squabbling later down the line. The Queen famously communicated her desire for Prince Charles’ wife, Camilla, to be referred to as the Queen after her death. While that is a decision that Charles could have made as King, knowing that he has his mother’s blessing to refer to his wife as the Queen must provide a sense of relief.

Preparations for Queen Elizabeth’s death started decades ago, and—if you have the foresight—you’ll follow suit and begin preparing for your own death decades before it happens. However, we don’t’ always know how many decades of life we have left, so the best way to protect your loved ones and legacy is to start planning now.

Contact Miller Estate & Elder Law

Miller Estate & Elder Law is here to guide you through the estate planning process. Whether your estate is massive and complex, or small and simple, we can help design a plan that is fit for a queen (or king). Complete the brief form below to contact us today!

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Who Holds the Power, and When? Beneficiary Designations vs. Wills

Who Holds the Power, and When? Beneficiary Designations vs. Wills

by | Sep 22, 2022 | Blog, Estate Planning

Beneficiary Designations vs. Wills

When it comes to estate planning, many people are content to draw up a will and leave it at that. That can be a big mistake. The fact is that a will is just one of many necessary estate planning tools, and if you ignore the other documents and designations, your assets could end up going to the wrong person after you pass away. This is especially the case when it comes to beneficiary designations, which hold more power over the distribution of certain assets than your will does.

What is a Beneficiary Designation?

A beneficiary designation is a stipulation that allows you to transfer certain assets directly to a specific person when you pass away. Typically, a beneficiary designation is used on bank accounts, retirement accounts, or life insurance policies. In most cases, a beneficiary designation names a specific individual, but you can also designate your estate as a beneficiary. A beneficiary designation supersedes any directive that may appear in your will, so whoever you name as a beneficiary on your bank or retirement accounts, or on your life insurance policy, will be the person who receives those assets.

Four Common Mistakes to Avoid When It Comes to Beneficiary Designations

1.  Failure to name a Beneficiary. If you don’t designate a beneficiary on your accounts, then the estate automatically becomes the beneficiary. This means that your assets will be distributed according to your Will.  If you have no will, then the laws of the State of Alabama determine who gets those assets.  When that happens, your assets may very well wind up going to someone who you did not intend to receive them.

2.  Not Naming a Contingent Beneficiary. What happens if your designated beneficiary dies, becomes incapacitated, or simply does not wish to receive the asset? If you haven’t named a contingent beneficiary, then your assets will, again, be distributed by the estate executor…the same as if you hadn’t named a beneficiary at all. Therefore, it’s important to account for all possibilities.

3.  Failure to Account for All Your Assets. Many people have more accounts that are subject to beneficiary designations than they realize. Whether it’s an IRA, a 401 (k), or a mutual fund account, it’s important that every asset for which you can designate a beneficiary be considered. Make a list of all your assets, and then check each one to be sure you’ve prepared properly for what will happen to them.

4.  Not Updating Your Beneficiary Designations. Life is full of changes: people pass on, children are born, we fall out with our friends. Similarly, beneficiary designations should change in accordance with our life circumstances. Every time a major life event happens, you should update all of your estate planning documents. You should also review your beneficiary designations periodically to be sure that your assets will not go to an unwanted recipient.

Make Sure Your Estate Plan is Up-to-Date

As important as it is to make sure all relevant accounts name a designated beneficiary or beneficiaries, it can also be a lot to stay on top of. Therefore, it is highly recommended that you seek out an experienced estate planning attorney who can help review your estate plan as needed. We recommend an annual review to ensure the accuracy of your plan, as well as to make updates as dictated by changing legislation or tax law.

Contact Miller Estate & Elder Law

At Miller Estate and Elder Law, we have many years of experience with estate planning and beneficiary designations. Give us a call at (256) 251-2137 to speak with a member of our legal team, or contact us using the brief form below.



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Healthcare Proxy, Durable Power of Attorney & HIPAA Authorization: 3 Estate Planning Documents Your College Student Needs

Healthcare Proxy, Durable Power of Attorney & HIPAA Authorization: 3 Estate Planning Documents Your College Student Needs

by | Sep 20, 2022 | Blog, Estate Planning, Healthcare Proxy

healthcare proxy

As your child heads off to college, you may have a lot on your mind. Not only is the process of choosing and applying to college a stressful one, but the campus visits and Target shopping sprees in preparation for their segue into higher learning can leave you feeling overwhelmed and emotionally drained. While we don’t want to add another stressor to your plate, there is one important college planning to-do that is too often overlooked: estate planning.

You have spent the majority of your life making medical, legal and financial decisions for your child, but once your child reaches the age of majority—18 in most states (19 in Alabama) —you will lose that control. Without a healthcare proxy, durable power of attorney and HIPAA authorization, you may not be able to gain access to their medical records or finances…even if you are largely responsible for funding their college education!

Estate planning for 19-year-olds is much less complicated than planning for those who are married, have children, or have accrued a complex array of assets. However, it is equally important to do so. If your child is involved in an accident and becomes incapacitated, having these three essential documents in place will ensure that (a.) you have access to their medical records and (b.) are able to make medical and legal decisions for them.

Healthcare Proxy

If your child is injured or becomes seriously ill to the point they are unable to make their own medical decisions, you will not automatically be allowed to make those decisions for them. By drafting a healthcare proxy (also referred to as a medical power of attorney or advanced medical directive) your child can grant you access to their medical records, and legal rights to make medical decisions on their behalf. Without a healthcare proxy in place, you may need to petition the courts to gain access to your child’s medical records, or to make healthcare decisions on their behalf.

HIPAA Authorization

HIPAA regulations prohibit the disclosure of medical records, and, as a result, deny parents’ access to such information for their adult child. Due to this, parents should obtain a blanket HIPAA authorization from their child if they want the option of being apprised of their adult child’s health records. The HIPAA release is an important part of the estate planning process and may be incorporated into the health care proxy.

Durable Power of Attorney

The durable power of attorney is similar in function to the healthcare proxy. It will allow your child to name an agent—you, or another trusted family member—who can make financial and legal decisions on their behalf, should they become unable to do so. Many parents don’t think their adult children have enough financial resources to warrant a need for a durable power of attorney, however without this important document, you will not be able to communicate with banks, universities, or other related institutions on their behalf…even if you are the one footing the bill for their college education!

These estate planning documents are relatively quick and painless to create. Your college-aged child will only need to make a few decisions about who they want to name as appointees. Hopefully none of these documents will be needed, but if unexpected tragedy strikes, you’ll be glad you have them on-hand.

Contact Miller Estate & Elder Law

At Miller Estate & Elder Law, we can make the process of drafting a healthcare proxy, durable power of attorney, and HIPAA authorization fast and efficient. Contact us using the brief form below and a member of our team will reach out to schedule an initial consultation.



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Should I be Thinking About Medicaid Asset Protection Planning?

Should I be Thinking About Medicaid Asset Protection Planning?

by | Sep 7, 2022 | Elder Law, Medicaid Qualification

Medicaid is a federal program administered by the states that helps individuals who meet certain asset criteria pay for long-term care costs. Because Medicaid is a means-tested program, certain financial conditions must be met to qualify, which means that it is important to plan ahead. Unfortunately, people often wait until it is too late and a sudden illness, disability, or other crises occurs before planning for long-term care. Medicaid crisis planning is a strategy that can help you qualify for Medicaid, without experiencing financial ruin.

Long-term care is expensive, and these costs only continue to increase. The average life span of adults is also increasing, which translates to more years of care at increasingly higher rates. Without a plan in place, these costs could be financially devastating. In fact, without proper planning, your life savings could be wiped out within months of needing long-term care.

Due to Medicaid’s strict eligibility requirements, many individuals fail to meet the income and asset requirements, but still cannot afford the cost of healthcare on their own. Medicaid planning is a way to assess an individual’s situation and devise a strategy to help qualify for Medicaid if it becomes necessary.

Two popular strategies employed to meet these financial qualifications are:

  • Spend Down
  • Medicaid Asset Protection Trust

The spend down strategy is a way to reduce countable assets by carefully spending excess funds on things like medical expenses, home improvements, prepaid funerals, etc. To prevent applicants from simply giving away their money or resources to qualify for Medicaid, the federal government implemented the “look-back period.” Each state’s Medicaid program uses slightly different eligibility rules, but most states examine all of a senior’s financial transactions dating back five years from the date of their application. If a transaction is found to be in violation, the applicant will be assessed a penalty.

When it comes to the length of the penalty period, there really is no limit.  It is based on the amount of money given away during the last 5 years.  Unfortunately, if a senior has gifted their assets during the look-back period and requires nursing home level care, this will have to be paid out of pocket until the penalty period runs out and they become eligible for coverage.

The other problem with the spend down strategy is that your assets are depleted.  As an individual, you can only have $2,000 in countable assets!  A more favorable strategy to spending all of your assets is to implement a Medicaid Asset Protection Trust (MAPT).  A MAPT is exactly as it sounds – a trust designed to protect assets from being counted for Medicaid eligibility. When planned properly, an MAPT protects the home, other properties, and investments.  When designed properly and in advance, the assets in the trust will go to your heirs instead of having to spent on nursing home care.

The trust must be irrevocable for exemption from Medicaid’s asset limit. This means that the trust cannot be cancelled or changed. Once the assets are transferred into the trust, they no longer belong to the individual, nor can that individual regain ownership of the assets. If the assets are in a revocable trust, Medicaid considers the assets to still be owned by the Medicaid applicant. This is because they still have control over the assets held in the trust.  As a result assets in revocable trust do not provide the necessary asset protection from long term care costs.

Planning well in advance of the need for long-term care is the best course of action when considering a Medicaid Asset Protection Trust.  Transfers of assets to MAPTs do not result in immediate Medicaid qualification as they are subject to the 5 year look back as well.  The advantage is that if the assets have been in the MAPT for 5 years, they are not counted by Medicaid.  Therefore, the sooner you do the planning and get the MAPT set up, the more likely your nest egg will be protected if you need long term nursing home care down the road.

At Miller Estate and Elder Law we have extensive experience advising clients on Medicaid planning. Contact us today so that we can help you qualify for Medicaid, while also protecting your assets and your loved ones.

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What is a Medicaid Crisis and What Are Your Options?

What is a Medicaid Crisis and What Are Your Options?

by | Aug 20, 2022 | Asset Protection, Elder Law, Long-Term Care, Medicaid Planning

Imagine that your parent or another aging loved one suddenly finds themselves in need of nursing home care. If they haven’t already planned for the potential cost of long-term nursing care, they could find themselves in an incredibly compromised and vulnerable position. Because of the strict income and asset limitations that dictate who is eligible for Medicaid, your parents (or even you) may end up blowing through your life savings in order to pay for the cost of long-term care.

It is well known that Medicaid has a 5-year lookback period, so those who find themselves in immediate need of long-term care often assume there is nothing they can do to get qualified.

Fortunately, that is a myth. With the help of a qualified elder law attorney, Medicaid Crisis Planning could help you or your loved ones preserve some of their assets while becoming eligible for Medicaid.

What is Medicaid Crisis Planning?

About 70 percent of American seniors will need some type of long-term care planning, many of whom will find themselves in nursing homes. Because of the high nursing home costs—the median annual cost of a private room in a nursing home is over $100,000—it is important to meet with an elder law attorney to work out a detailed plan to prepare for this situation long in advance.

If, however, you find your loved one facing an unexpected health emergency that will likely require nursing home care, you do have options. For people who have assets significantly higher than the Medicaid threshold, the best of these options is Medicaid Crisis Planning. Medicaid Crisis Planning is a way to avoid spending down your entire life savings when faced with an immediate or near-immediate health situation.

How Does Medicaid Crisis Planning Work?

With Medicaid Crisis Planning, the person facing a nursing home visit gifts a large part of their assets—sometimes up to 50 percent—to a Medicaid Asset Protection Trust, or in some cases directly to a child or another loved one. The rest of the person’s assets are then converted to an income stream through a Medicaid Compliant Annuity (or in some states a promissory note) After these transfers are completed, the patient applies for Medicaid to cover the nursing home cost.

In most cases, the application will be approved subject to a penalty period.  That penalty period is based on the amount of the gift they have made to their child or other loved one (and any other transfers for less than fair market value that have been made in the past 5 years). During this period of ineligibility, (penalty period) the person will privately pay for nursing home care using their monthly income, as well as the funds produced by the annuity or payments from the promissory note or annuity. Once the ineligibility period has expired, Medicaid will start paying the monthly nursing home bill.

While the applicant will need to use some of their life savings initially, in the long-run, they will be able to salvage some of what they’ve worked a lifetime to accrue.

Long-Term Care Planning

With proper long-term care planning, you and your loved ones can be protected from having to spend down your entire life savings when faced with an unexpected nursing home admission—without the need for Medicaid Crisis Planning. An elder law attorney will help you protect your assets and guide you through which financial moves to make (or NOT make) as you age. For example, it may be advised that you set up a Medicaid Asset Protection Trust or purchase assets that are exempt from Medicaid.  This can prevent you from incurring a penalty, should you need to apply for nursing home Medicaid in the future.

The sooner you start planning for the cost of long-term nursing care, the better.  As it goes, an ounce of prevention is worth a pound of cure.

Whether you are interested in long-term care planning or find yourself in need of Medicaid Crisis Planning, it is important that you work with an experienced estate and elder law attorney. Elder law matters are as complicated as they are essential, so choosing the right professional can make all the difference.

At Miller Estate and Elder Law, we have many years of experience with long-term care planning and Medicaid Crisis Planning. Call (256) 251-2137 to speak with a member of our legal team today or contact us using the brief form below.


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256-472-1900

bill@millerestateandelderlaw.com