by Bill Miller | Jul 17, 2018 | Estate Planning
Watching a family fight over a loved one’s Will is heartbreaking. Take Marjorie J.’s family. When Marjorie passed away last year, she left behind a pretty nice estate. She intended her property and money to go to her family – or, at least, some of them. However, several people were shocked to learn they were not even mentioned in the Will and would receive nothing. They began to question whether Marjorie’s Will was valid. The stage was set for an expensive, disheartening courtroom battle.
If only Marjorie had known there were ways to avoid a Will contest.
Include a No-Contest Clause
Marjorie picked up a form to use for her most recent Will. The form was okay, as far as it went. However, it did not have a no-contest clause that could have headed off any future Will contests.
This clause states that anyone who challenges the Will loses their inheritance. No-contest clauses are usually upheld in court. Marjorie’s son, for example, files a lawsuit challenging her Will. He lost the lawsuit and the money he would have inherited.
One thing to remember if you want to put a no-contest clause in your Will: for someone to lose their inheritance, they must be receiving something. If you plan to use a no-contest clause, it’s best to leave a small sum to the people you think will contest the Will. This might discourage them from fighting it.
Communicate with Loved Ones
It is not always easy to talk about estate plans with family members. But it is necessary. Keeping your family informed can help manage their expectations. This is especially true if you plan to disinherit someone. In fact, failing to mention why you are disinheriting someone could lead to a Will contest.
For example, Marjorie had given her son a lot of financial support throughout the years. Her daughter had never needed any help, though. So, Marjorie left the bulk of her estate to her daughter to “even things out.” Had she explained this to her son, or even just mentioned it in her Will, he might have handled it better.
Explore Trusts
Sometimes a Will is not the best way to pass your property to your heirs. Trusts offer tax benefits and confidentiality. They are also less likely to be contested.
Marjorie did not speak to an attorney about trusts. She felt they were only for really wealthy people. However, passing her property through a trust may have been a better choice.
Consult with an Alabama Estate Planning Attorney.
The attorneys at Miller Estate and Elder Law have the experience you need to get the estate plan you deserve. Contact Miller Estate and Elder Law at 256-251-2137 to schedule an appointment or fill out our convenient Contact Form. We help clients in Anniston, Talladega, Birmingham, Gadsden and surrounding communities
by Bill Miller | Jul 13, 2018 | Medicaid, Medicaid Planning
Both Medicare and Medicaid are government programs that help eligible individuals with medical costs. Because of the similar names, though, people have trouble knowing which program they need. Let’s take a look at how each program handles two important things: eligibility and services.
Medicare and Medicaid Eligibility
Medicare is offered only to those 65 or older or people with End Stage Renal Disease (ESRD). Medicaid offers benefits from children to pregnant women to nursing home residents.
People can check online or with their local Social Security office to see if they are qualified for Medicare. Typically, most people are enrolled in Medicare Parts A and B when they turn 65.
The application process for Medicaid is more complicated. Benefits are based on income and resources. Medicaid looks back at applicant’s finances for five years from the date of application. Some applicants may find they are not eligible for benefits, or their benefits are delayed, because of transactions like transferring assets to their children.
So, a person over the age of 65 with limited income and resources might be eligible for both Medicare and Medicaid.
Medicare and Medicaid Services
Medicare is divided into four parts:
- Part A – Inpatient care at a hospital or skilled nursing facility.
- Part B – Some preventive care, outpatient care like doctor’s appointments.
- Part C – Advantage plans that combine Part A and Part B benefits, as well as the option to include drug coverage.
- Part D – Prescription drug coverage.
Medicare recipients choose which plan they want, usually based on their needs and how much they can pay for the premiums.
Medicaid, on the other hand, pays for care like that received at a hospital or skilled nursing facility, federally-qualified health center, rural health clinic, freestanding birth center, and so on. This is by no means a comprehensive list of the services offered by Medicaid. In fact, states typically offer the following programs to help the following groups:
- Children,
- Parents and caretaker relatives,
- Pregnant women,
- Elderly and disabled persons,
- Nursing home residents, and
- Patients with breast or cervical cancer.
So, Medicare and Medicaid both offer benefits that cover medical care. However, Medicaid benefits target segments of our population that may not be covered by Medicare.
Learn More About Medicaid Eligibility.
The attorneys at Miller Estate and Elder Law know how to help you with Medicaid eligibility. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. We also offer free workshops and guides with more information about topics that matter to you. Although we’re located in Anniston, we also help clients in the Birmingham, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Jul 10, 2018 | Business
Pete J. had always wanted to start his own business. He finally decided to take the plunge this year. After working for other companies for year, Pete knew that he would have to follow certain laws and regulations to get his business up and running. The first thing he had to learn was how to form a business in Alabama.
Alabama Business Entities
Understanding the different business structures allowed in the State of Alabama was important. There’s more involved than just whether you want your business to be called an “LLC” or a “Corporation.” Fortunately, Pete could choose from several types of businesses:
Sole Proprietorships have one owner. While sole proprietorships require very little paperwork and fees to form, there is no protection from liability. The business owner may have trouble raising capital and obtaining long-term financing. Still, some people may consider it their best option.
Partnerships have two or more owners and are fairly easy to form. However, at least one partner has unlimited liability and transferring or selling a partnership interest may be difficult.
Corporations are a separate legal entity apart from the owners. Liability is limited, and ownership interest is easier to sell or transfer. However, the corporation structure is more heavily regulated. Also, corporations are doubly taxed.
Limited Liability Corporations and Limited Liability Partnerships offer better tax status than a corporation with great liability protection.
Forming Your Business
The procedure used varies according to the business entity chosen.
Generally, the first steps are:
- Picking your business name.
- Filing a trade name or doing business as, although this is optional.
- Getting all licenses and permits needed for your industry.
- Applying for an Employer Identification Number.
Sole proprietorships and general partnerships do not have to file paperwork with the Alabama Secretary of State to start up. However, limited partnerships file a Domestic Limited Partnership Certificate in the county where they do business.
As we noted above, corporations require more work to get off the ground:
The corporation’s name must be available, meaning no one else is using it.
You must also file Articles of Incorporation, along with the Domestic Business Corporation Certificate of Formation and a Certificate of Name Reservation.
Choose a registered agent.
Prepare Bylaws. They don’t have to be filed with the State, but bylaws describe how a corporation will work.
It is critical to weigh the advantages and disadvantages of each type of business entity before choosing one.
Ready to Start Your Business?
At Miller Estate and Elder Law, we make it our business to put our client’s needs first. We assist our clients in making legal decisions regarding their business interests. 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 | Jul 6, 2018 | Estate Planning, Medicaid, Medicaid Planning
At age 98, Jamison truly is his family’s patriarch. His children want him to attend the annual family reunion. The problem? Jamison lives in Alabama. The reunion is in Texas. Although he does not live in a nursing home, Jamison requires some skilled nursing care and is legally blind. They are concerned that Jamison’s Medicaid benefits will not pay for medical services while he is away from Alabama.
Jamison’s family is right to be worried. Although the funds for Medicaid benefits come from the federal government, individual states manage Medicaid for their citizens. Jamison’s Medicaid benefits, then, are administered by Alabama Medicaid. Individual states are allowed to develop their own rules and regulations, as long as they comply with federal regulations.
It’s the Law
Federal law at 42 CFR 431.52 provides that state plans will pay for services provided to Medicaid recipients who are temporarily out-of-state. However, the following conditions must be met:
(1) Medical services are needed because of a medical emergency;
(2) Medical services are needed, and the beneficiary’s health would be endangered if he were required to travel to his State of residence;
(3) The State determines, on the basis of medical advice, that the needed medical services, or necessary supplementary resources, are more readily available in the other State;
(4) It is the general practice for beneficiaries in a particular locality to use medical resources in another State.
The law goes on. States are required to establish procedures so individuals who are eligible for Medicaid under another state’s program can receive medical services.
But It May Not Be Easy
Note that medical costs incurred during an emergency are covered. This means that individuals may be billed for services related to non-emergencies, unless that care fits the other criteria listed above. Also, the out-of-state provider has to enroll as a provider with the Alabama Medicaid Agency. And, finally, some services have to be pre-approved.
Medicaid Is a Complex Program.
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 | Jul 4, 2018 | Estate Planning
Sometimes an estate plan no longer fits. Your life changes, sometimes without warning, and you have to act fast. When this happens, you need to know how to revoke your estate planning documents.
Basic Estate Planning
Three documents typically serve as foundation for an estate plan:
- Last Will and Testament (“Will”),
- Durable Power of Attorney, and
- Medical Power of Attorney.
These documents must comply with Alabama law in the way they are drafted and signed. But did you know there are laws about how to cancel them also?
Changing Your Mind and Your Documents
You may have several reasons for modifying your estate plans. For example, major life events trigger estate plan reviews and those reviews may lead to major changes:
- Marriage,
- Divorce,
- Birth,
- Death,
- Change in financial status,
- Change in family relationships,
- Agents or personal representatives need to be changed,
- Moving to another state
So, if you experience a major life event – or just change your mind – how can you revoke estate planning documents you already have in place?
Last Will and Testament. It’s possible to make minor modifications to your Will by preparing and signing a Codicil. This becomes an addition to your Will. Generally, your previous Will is revoked by any new Will you sign. You can also revoke a Will by any of the following means: burning, tearing up, cancelling, obliterating, or destroying.
Someone other than the testator can destroy the Will. However, the testator must direct the destruction or consent to it willingly before two witnesses.
Durable Power of Attorney. Authority granted under a power of attorney terminates if the principal:
- Dies,
- Becomes incapacitated,
- Revokes the power of attorney,
- Provided a specific termination date in the power of attorney itself,
- Provided a specific purpose for the power of attorney that has been accomplished.
It will also terminate if the agent dies or becomes unwilling or unable to serve. In addition, a fiduciary or a court may terminate the power of attorney. And if the principal and agent were married, the authority is revoked if the marriage is dissolved or annulled.
Medical Power of Attorney. According to Alabama law, the principal can revoke a medical power of attorney in writing, signed and dated. The power of attorney can also be destroyed by the principal. There should be at least one witness age 19 or older and the principal should state his or her intention is to revoke their power of attorney.
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.
