by Bill Miller | Sep 10, 2018 | Uncategorized
Pobody’s Nerfect. Oh, that should be nobody’s perfect. Let’s face it: we all make mistakes. Some of those mistakes are small, with no lasting impact – easy to overcome. Other mistakes have a lasting effect, not only on us but on our children, too. Estate planning errors tend to be big errors. Let’s look at 6 estate planning mistakes:
#1. Failing to Keep Your Estate Plan Up-to-Date
A Will or estate plan that might have worked 20 years ago probably won’t work for you today. Why? Because things change. Estate plans should be reviewed and changed as often as necessary. Ask yourself these questions:
- Has anyone in my family been born, passed away, married, or divorced since I wrote my Will?
- Has my financial situation changed?
If you answered yes to either of these questions, it’s time to review your estate plan.
#2. Failing to Use a Trust.
Trusts are not for everyone. But many people who need a trust don’t know it. It’s a common myth that only rich people need trusts.
A trust may offer benefits like tax reduction, probate avoidance, asset protection, privacy, incapacity planning, and support for a loved one with special needs.
Talk to a qualified Alabama estate planning attorney to learn your options.
#3. Failing to Account for Personal Property and Business Interests.
If your estate plan is old, it’s likely that you have obtained or sold personal property that throws your old estate plan out of balance. It’s also possible that you may need a trust to protect and transfer property and business interests to your heirs.
Take special care with your estate plan if you own business interests. Your family and your business partners may be adversely affected by your ancient or nonexistent estate plan.
#4. Failing to Plan for Medicaid or Incapacity.
Estate plans tackle issues about death, but also about life as a disabled or incapacitated person. If your estate plan consists of a simple Will you wrote yourself, potential incapacity is probably not covered. Concerns about incapacity that require long-term care increase as we age. However, young people are susceptible to life-changing injuries also.
A complete estate plan will include a durable power of attorney and a health care power of attorney. Both of these documents address incapacity issues head on.
#5. Choosing the Wrong Executor.
People typically name an executor and a successor executor in their Wills. It may be tempting to name your favorite cousin as your executor. However, just because he makes the best barbecue in the state doesn’t mean he can handle probating your estate. Choose someone who is responsible, at least a little financially savvy, cares about your family, and is willing to serve if called upon.
#6. Hiding Your Estate Planning Documents
You may develop the greatest estate plan, one that checks all the boxes. You know your family will be well cared for. However, your estate may be thrown into chaos if no one can find your carefully drafted estate planning documents.
It is true that important documents should be stored in a safe place. However, make sure at least two people know where your estate planning documents are stored. Also make sure your family knows you have an estate plan and has the name and phone number of your attorney.
The Biggest Mistake? Not Having an Estate Plan.
Schedule a consultation with one of the attorneys at Miller Estate and Elder Law, and find out where you stand. Our phone number is 256-251-2137, or you may want to use the Contact Form on our website. We have offices in in Anniston and Birmingham and assist clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.
by Bill Miller | Sep 7, 2018 | Medicaid
Most people have heard of Medicaid. Most people know that Medicaid is a massive program funded by the federal government. However, these three little known facts about Medicaid are important to help you understand how Medicaid might help you.
#1 – Medicaid Pays for a Limited Number of Doctor Visits
Becoming eligible for Medicaid benefits does not mean you can go to the doctor any time you want. Well, you can go but Medicaid typically pays for only 14 doctor appointments per year.
However, if you need to see the doctor more than 14 times a year, check with your local public clinics and federal health clinics. Otherwise, additional office visits will be self-pay.
Eye care and dental care appointments are separate from general office visits. Medicaid pays for one exe exam every three years. Most dental services are covered for Medicaid recipients.
#2 – Medicaid Might Pay for Transportation to Doctor Appointments
In general, Medicaid benefits include ambulance transportation when medically necessary. However, many people don’t know that Medicaid’s Non-Emergency Transportation Program may also cover transportation to and from scheduled appointments. There are some limitations, though:
- Visits must be medically necessary;
- The Medicaid recipient must be unable to find or pay for other forms of transportation; and
- The transportation must be approved by Medicaid five (5) days before it is needed.
If you may need this program, check out the FAQs or call 1-800-362-1504.
#3 – Medicaid Is the Nation’s Largest Primary Payer for Long-Term Care
As the baby boomer generation hits retirement age, more people will need some form of long-term care. The cost of that care continues to increase, and many people are just not prepared for it.
In this current climate, Medicaid has become the source of long-term care funds for many people. However, although 72.2 million people qualified for Medicaid in 2016 (including children and caregivers), the application process is long and hard. Many people are denied benefits.
Not Everyone Qualifies for Medicaid.
At Miller Estate and Elder Law, we help clients with long-term care planning and the Medicaid application process. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. Download a copy of our free guide, What You Need to Know About Medicaid Planning in Alabama.
We have offices in Anniston and Birmingham and we assist clients in the Leeds, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Sep 5, 2018 | Uncategorized
Choosing a business structure is one of the first and most important decisions a new business owner makes. In general, a business can operate as a corporation, partnership, limited liability company, or sole proprietorship. When starting your business, it’s important to ask, “Is a sole proprietorship right for me.”
Will a Sole Proprietorship Cause Your Business to Take Off?
Like all business entities, sole proprietorships have advantage, including:
- Formation. A sole proprietorship is the easiest kind of business to form. For example, it is usually not necessary to file any documents with the Alabama Secretary of State. New companies may register their business name, but that is optional. Other entities, like corporations, have to file forms with the Secretary of State and may be required to renew their registration annually.
- Management. A sole proprietorship might be the best option for you if you prefer flying solo. There’s no one to negotiate with or disagree with your choices. The owner is completely in control.
- Taxes. Sole proprietorships are pass-through entities. This means business does not pay taxes. Instead, the owner claims the company’s profits on his or her personal income tax return. Under the new tax bill, most sole proprietors receive about a 20% deduction from taxable business income.
However, sole proprietorships may not be right for everyone.
When a Sole Proprietorship Is Not the Best Solution
Like all business entities, sole proprietorships have disadvantages, including:
- Management. Going it alone can be lonely! With a partnership or corporation, there are other owners to help carry the load. Sole proprietors, though, shoulder all the responsibility of forming and managing the business.
- Liability. Some business owners enjoy limited liability because of the business structure they have chosen. Sole proprietors, however, are personally liable for most, if not all, claims against their business.
- Capital. Sole proprietorship typically find it more difficult to raise money for the business. Without shareholders or contributing partners, the sole proprietor usually borrows money. Some financial institutions are leery of this. Also, the business owner often uses personal property for collateral.
Review Your Estate Plans Regularly.
The attorneys at Miller Estate and Elder Law understand the estate planning needs of their clients. Contact Miller Estate and Elder Law at 256-251-2137 to schedule an appointment. Though our offices are in Anniston and Birmingham, we help clients in Talladega, Gadsden and surrounding communities.
by Bill Miller | Sep 3, 2018 | Elder Law, Medicaid, Medicaid Planning, Medicaid Qualification
Joe recently learned that his mother, Lillian, is applying for Medicaid. She lacks the funds and insurance to cover the cost of her 24/7 nursing care. Lillian was suddenly thrown into a world of procedures and terms that she did not understand. Joe felt a little helpless himself. His mother needs Medicaid and he does not what he can do to help her.
Help with the Medicaid Application Process
The Medicaid application process is complicated, complex, and frustrating. It’s also necessary. Medicaid is the largest payer of nursing home costs in the United States. In addition, a majority of people age 65 plus will need long-term care.
Joe can help Lillian find the right Medicaid program. For example, she probably needs either Medicaid for the Elderly and Disabled or Medicaid in the Nursing Home. He can read over the eligibility requirements and find the right application. They can apply online or using a paper application. Then, he can help her with one of the most difficult parts of the application process: finding the documents that go with the application.
Help Gather Supporting Documents
Medicaid requires a long list of supporting documents some spanning the 60 months prior to application, including:
Bank statements, annuities, life insurance policies, promissory notes, loans, property deeds, Social Security card, power of attorney, Will, trusts, long-term care insurance policy, Medicare card and Part D policies, just to name a few.
As Joe started helping Lillian gather documents, he was grateful that his mother was so organized. Many of the documents they needed were filed at her home. Other records required them to contact banks, financial institutions, and so on. Lillian signed a durable power of attorney that allowed Joe to get some records for her.
Help Find an Alabama Medicaid Attorney
It helps to have someone on your side who knows how the Medicaid system works. If an application is denied, naturally the applicant’s benefits are delayed. And, if they have an immediate need for Medicaid funds to cover their care, well, someone has to pay for it. The applicant or family members may be forced to pay substantial amounts for long-term care that could have been covered by Medicaid. That’s why it is so important to get the application right the first time.
Joe found a good elder law attorney for Lillian. In addition to helping get Lillian’s Medicaid application together, they were able to handle other estate planning issues:
- They set up a Miller Trust to handle monthly income in excess of Medicaid resource limits,
- Prepared and signed a durable power of attorney and health care power of attorney, and
- Helped Joe get his own estate planning and incapacity planning in place.
Sometimes You Just Need a Helping Hand
The application process for Medicaid is a difficult path for most people to navigate. The attorneys atMiller Estate and Elder Law use their skills and experience to make the experience a little less difficult.
For a free consultation with an experienced Alabama attorney, contact us at 256-251-2137 or use our convenient Contact Form. We have offices in Anniston and Birmingham and serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Aug 31, 2018 | Elder Law, Medicaid, Medicaid Planning, Medicaid Qualification, Nursing Home
It’s a cold, hard fact. Many people in the United States need long-term care at some point in their lives. It’s also true that this care is expensive.
How many people really need long-term care?
As our population ages, the number of people in need of skilled nursing care will skyrocket. Today, roughly 70% of people who are age 65 will need some form of long-term care in their lifetimes.
Also, age is not the only reason people need long-term care. About 8% of people age 40-50 year age group need long-term care due to a disability. And 69% of people age 90 and up are likely to suffer from one or more disabilities.
Long-term care is expensive. How do people pay for it?
There are basically three ways to pay for this type of care:
- Self-pay, which may use up all your savings and resources.
- Long-term care insurance, which can be difficult to get as you get older.
- Public benefit programs like Medicaid.
So, it’s important that you be able to qualify for Medicaid.
That requires planning.
And Medicaid planning should take place years before you need care.
If I won’t need long-term care until I’m 65 or older, why plan now?
Medicaid programs pay more long-term care expenses than any other group. This means it’s critical that you be able to qualify for Medicaid. The whole application process is complicated and frustrating. Not everyone qualifies for Medicaid, leaving their families struggling to find other ways to pay.
The reason to start planning now is because Medicaid doesn’t just look at your current financial picture when considering your application. They actually look at financial records starting from 60 months prior to the application date. During that time, you may have transferred money or property to family as an early inheritance or just a gift. That kind gesture could reduce or eliminate your eligibility for Medicaid.
The Good News.
There are ways to prepare for Medicaid, well in advance of the time you need it. It’s complicated, but we can help.
The attorneys at Miller Estate and Elder Law assist clients just like you apply for Medicaid benefits. We also help with Medicaid planning and estate planning. For a free consultation with an experienced Alabama attorney, contact us at 256-251-2137 or use our convenient Contact Form.
We also offer free guides, videos, and workshops.
We have offices in Anniston and Birmingham and serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
