by Bill Miller | Aug 13, 2018 | Elder Care Planning, Elder Law, Estate Planning, Medicaid Planning, Medicaid Qualification, Nursing Home
Jackie wanted her mother to have the best care possible. At age 82, Mom needed more assistance than she could get at home, even considering the great in-home nursing options available. As Jackie looked for a nursing home for her mom, she wondered how much her mom’s long-term care would cost? She came face to face with reality: long-term care is expensive!
What are the chances someone will need long-term care?
According to federal government statistics, 20% of people age 65 will need long-term care for more than five years. And if you are 65 right now, you have an almost 70% chance of needing some form of long-term care.
The families of people needing long-term care are affected also. In addition to the stress of caring for another person, they must also find the right type of care. Family members also usually have to struggle to find a way to pay for that care.
What type of care is considered long-term care?
It’s not just residential care at your local nursing home. There are other options.
- In-Home Care. Most older people want to stay in their homes as long as possible. When they need extra nursing assistance, they can often hire skilled in-home care providers.
- Assisted Living Facilities. While this is residential care, as is a nursing home, the resident has greater flexibility and privacy. Assistance, often from a trained nurse, is available if needed.
- Residential Care. Sometimes this type of care if unavoidable. Residents of nursing homes may lose some privacy but make up for it with greater skilled nursing care.
So, how much does long-term care cost?
It depends on where you live and what type of long-term care is needed.
The following figures reflect the 2017 cost for long-term care in Alabama:
- $42,900 – In-home care
- $41,688 – Assisted Living Facility
- $73,000 – Nursing Home (semi-private room)
- $76,650 – Nursing Home (private room)
These costs, of course, are averages and the actual cost may vary. Costs are expected to increase over time.
Start Planning Now.
At Adams & Miller, P.C., we make it our business to put our client’s needs first. We assist our clients in making thoughtful decisions regarding incapacity planning. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. 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 | Aug 10, 2018 | Estate Planning, trust
David and Amy knew they needed a Will. At least, that’s what they thought. They made an appointment with an Alabama estate planning lawyer to discuss their Wills. Their attorney told them all about trust-based estate plans. David and Amy were surprised to learn that there were other options that better fit their lifestyles.
A Complete Estate Plan Revisited
More than a Will is involved when someone creates an estate plan. Typically, a general durable power of attorney and some form of advanced health care directive are signed along with a Will. And then there are trusts.
For some, a trust should make up the foundation of their estate plan. A Will is still necessary. However, the Will and trust work together and work for the testator.
Advantages to Trust-Based Estate Plans
All trusts involve the following parties:
- The Settlor or Grantor (sometimes more than one),
- At least one Trustee, and
- One or more beneficiaries.
The settlor sometimes also serves as trustee and is a beneficiary. It depends on the type of trust. There are various types of trust that each have a different purpose.
An estate plan that is based on a trust and not a Will offers some useful benefits:
- Avoiding Probate. A will-based estate passes through the probate court. Trusts typically do not. Instead, trust assets may pass directly to the beneficiaries upon the death of the settlor. This, again, depends on the type of trust and the terms contained in the trust document.
- Lowering Taxes. Some estates allow property transfers with little to no tax consequences. This tactic is especially helpful to larger estates.
- Asset Protection. Wills do not protect assets, particularly during the testator’s lifetime. A well-crafted trust-based estate plan, however, can safeguard assets both before and after the settlor’s death. Many asset protection trusts are irrevocable, which makes the trust impossible or at least very difficult to change.
- Protects Personal Information. Wills become part of public court records during probate. Trusts usually do not. A trust-based plan helps protect your personal information and that of your heirs.
Everyone still needs to have a Will. However, it does not have to be the foundation of your estate plan.
Talk to Your Attorney About Trusts.
Schedule a consultation with one of the attorneys at Adams & Miller, PC. You may be pleasantly surprised to discover the options available for your estate plan. Our phone number is 256-251-2137, or you may want to use the Contact Form on our website. We also offer free guides and videos about estate planning and trusts.
We have offices in in Anniston and Birmingham and assist clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.
by Bill Miller | Aug 7, 2018 | Business
A few years ago, Marty and his partners opened a business: The Choccolocco Metal Fencing Company. They chose to form as a limited liability company or LLC. Now, as their business has grown, they wonder if another business entity would better suit their needs. They begin to explore the idea of converting their Alabama business from an LCC to a corporation.
Deciding Factors
The limited liability company structure has become one of the most popular business entity types in the country. Corporations, however, have a long history and, for some, offer the best structure. Let’s compare LLCs to Corporations in a few key categories:
- Formation. To form an LLC, one or more owners (called members) file articles of organization and usually prepare some type of operating agreement. Corporations also file formation documents with the state in which they are located. Shares are issued to shareholders and a board of directors is appointed to manage the corporation.
- Liability. LLC owners have some protection from liability, while avoiding the double taxation of the corporate structure. Corporations also provide liability protection to their owners – the shareholders.
- Taxes. LLCs are pass-through businesses. Income ‘passes through’ to the owners, who declare it on their personal tax return. Corporations, as separate entities, are taxed on their profits. Shareholders will also pay tax on any dividends they receive.
An LLC can convert to another business entity type, including corporate.
Steps to Take
According to Alabama law, all of the members of an LLC must approve of the terms and conditions of the conversion. Then, the LLC can do the following to convert:
- Get a name reservation certificate for the new LLC from the Secretary of State.
- File a certificate of formation, a statement of conversion, along with the name reservation certificate, with the Secretary of State’s office.
Please note that it is not necessary or recommended to terminate your LLC prior to converting it.
Once the corporation is formed, the owners have a few more things to do:
- Prepare corporate bylaws,
- Elect officers and directors,
- Hold your initial meeting of the Board of Directors,
- Issue stock certificates,
- Change documentation to reflect the new name,
- Decide whether to file an S corporation election with the IRS, and
- Plan to file your first annual report with the state.
Property, debts, and liabilities of the LLC transfer to the new corporation.
Talk to an Attorney First.
Forming or converting a business may sound simple, but every case is a little different. Make sure your company meets all legal requirements to avoid trouble down the road.
The attorneys at Adams & Miller understand the business needs of their clients. Contact Adams & Miller, P.C. 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 | Aug 3, 2018 | Estate Planning
Would you hire a heart surgeon to wire the electricity in your home? When you’re dealing with something important, really important, that could affect your life and your loved ones, you need help from someone who specializes. If you’re wondering whether you need to hire an Alabama Estate Planning attorney to put together your estate plan, the answer is “yes!” And here’s why:
Estate Planning Is Not a Deck
Do-it-yourself works for some projects, but not others. Building a deck on the back of your house is one thing. Building a future for your family and yourself is entirely different.
An experienced estate planning attorney will see the big picture. He or she will analyze the moving parts of your life and get them humming along in sync. For instance, naming beneficiaries for some of your financial accounts is recommended. However, it can throw the rest of your estate plan out of whack. One heir could accidentally receive a bigger or smaller piece of the pie if your plans are not carefully crafted and updated regularly.
Plan for the Future
Writing a Will using an online website gives you a very simple estate plan.
But you need more than a Will.
A Will does not plan for possible incapacity or disability. It only takes effect upon your death. A complete estate plan addresses potential problems head on. In some cases, a Will-based estate plan may not even be the right option for you. Some estate plans are founded on trusts. Some of those trusts help provide income during retirement or prevent you from being disqualified for Medicaid.
Get the Right Asset Protection
Not all asset protection strategies work for all people. Any trusts or other asset protection vehicles should be crafted by an attorney who knows Alabama law.
And there’s more than one type of trust – which one might you need? Trusts can be complicated and lead to completely unintended consequences. Talk to your estate planning lawyer to learn what’s right for you.
Estate Planning Can Have Life-Changing Consequences.
Isn’t it best, then, to hire an Alabama estate planning attorney to get the right advice?
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.
We also offer free workshops and resources.
by Bill Miller | Jul 31, 2018 | Medicaid, Medicaid Planning
Moving grandfather to the nursing home was hard enough. But applying for Medicaid at the same time? Very stressful, but it is even worse if you submit incomplete or incorrect paperwork. This could delay much-needed Medicaid benefits. Read on to learn more about the supporting documents to submit with a Medicaid application.
The Application
Medicaid consists of more than one program. For example, there’s a program for children and a different one for nursing home residents.
Alabama Medicaid maintains online applications, as well as forms that might need to be attached. Paper applications are available at local Medicaid offices.
Sometimes documents must be attached to the application. For example, if the applicant needs an authorized representative to help with the application, Appendix C should be attached to paper applications.
Make sure you use the right application, filled out completely with all attachments.
The Supporting Documents
The first thing to understand is that Medicaid wants documents going back five years from the date of application (the Look Back Period). The applicant should submit bank statements or balances (monthly for the first 12 months of the Look Back Period, quarterly for months 13-24, and June and December for months 25 through 60). Medicaid will also want to see proof of gross income, including VA benefits, Social Security benefits, rental income, pensions and retirement funds, wages, and interest. In addition, some or all of the following documents from the Look Back Period will be required:
| Annuities |
Life insurance policies |
Power of attorney |
| Long-term care policies |
Receipts and titles |
Bonds |
| Wills |
Trusts |
Social security card |
| Promissory notes |
Stocks |
Burial contracts or policies |
| Conservatorship papers |
Property deeds |
Medicare care |
| Loan documents |
Retirement account statements |
Any other documents that are requested |
| Guardianship documents |
Medicare Part D policies |
|
The applicant should keep copies of all supporting documents, as well as the application and any correspondence sent or received.
Sound Complicated? It is, but We Can Help.
The attorneys at Miller Estate and Elder Law assist clients with applying 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.
