by Bill Miller | Jan 25, 2021 | Blog, Elder Law, Estate Planning, Probate
If there were ever a year to buckle up and learn a little bit about estate planning, this is it. After all, while 2020 is behind us and hope is on the horizon the Covid-19 pandemic has made it amply clear that the future is uncertain and preparedness is the best defense. Estate planning plays a part in this. Not only does having a plan protect your hard-earned assets from avoidable taxes, aggressive creditors, and potential reckless spending by heirs, it also ensures your loved ones are spared the cost and burden of probate court should the unthinkable happen.
What Is Probate?
Probate is the state-run, court-sponsored process of authenticating a person’s last will and testament. It is the place that evaluates a passed loved one’s assets, pays their final bills and taxes, and distributes what is left over to beneficiaries. As simple as this all sounds, the reality is a minefield of contentious family decisions, legal costs, and changing legislation. Each state determines their own probate laws and they are subject to regular update and so attempting to administer probate yourself or with the help of an automated service is a gamble of both resources and time.
An experienced probate attorney can help you avoid all of this but the financial cost is often greater than organizing an estate plan and the emotional burden is untold.
Avoiding Probate
Hassle and associated fees are not the only reason to avoid probate; for some, they are not even the main reason. While awaiting probate, your heirs will not see a penny and may not have access to your accounts. They will need to pull from their own pockets to cover not only court costs, but property insurance, taxes and even storage fees until probate is officially opened. In present times, when so many peoples’ finances are already stretched to the limit, this can be devastating.
Another reason to skirt probate is that records are public and available to anyone to view. You would not want your bank balances shared openly while living and there is no reason you would want otherwise once you have passed on.
In addition to expediting the process and saving on the cost of distributing your assets, an estate plan that avoids probate is also private. It keeps everything in the family, literally.
The first step to getting an estate plan off the ground is to list all you own and organize a family meeting. Once you have addressed the delicate subject of inheritances and chatted about who might serve as executor, financial power of attorney, and medical power, the next step is to reach out to a trusted and experienced estate planning lawyer.
Your attorney, guided by your goals and wishes, ensures the rest is easy. In less time than you think and at a fraction of both the financial and emotional cost of probate, you’ll have your affairs in order and you’ll move on to living your life secure in the knowledge that at least one of the future’s big uncertainties no longer looms on the horizon.
To see how we can help you contact Miller Estate and Elder Law today!. You can also simply call us at 256-472-1900. Talk to you soon!
by Bill Miller | Jan 18, 2021 | Blog, Medicaid, Medicaid Planning, Medicaid Qualification
With 2020 now receding from view and an end to the Covid-19 pandemic (hopefully) in sight, that sigh of relief so many of us need is finally on the horizon. The New Year brings promise of better times and yet it would be foolish to forget the lessons of the last twelve months. Chief among these is that health cannot be taken for granted and having a plan to ensure access to care is essential. For millions nation-wide, this means organizing assets in order to qualify for Medicaid. After all, despite common misconception, Medicaid is the best way for many folks to gain the long-term care coverage they need.
Five Frequent Medicaid Myths
- Only Low-Income Adults Qualify
This is both the most common and most deeply-flawed misunderstanding on this list. First, nearly half (49.7%) of the 76 million Americans receiving Medicaid are children (which is part of why planning is essential for people of any age) and second, many millions of middle-income individuals may qualify with proper foresight.
- Gaining Coverage Means Hiding Your Assets
Not only is this notion mistaken, it is unethical. An experienced (and honest) attorney can walk you through such common practices as spousal income and asset transfers, annuities, Medicaid asset protection trusts, and qualified income trusts (to name just a few legal instruments). All of these both work to preserve your assets and are reported directly to Medicaid through the application process.
- Medicaid Means You (or Your Parents) Will Lose Their Home
This misconception is related to the above but because of its prevalence (and frightening nature) it deserves individual mention. Contrary to popular belief, Medicaid rules, in fact, aim to preserve the family home. What’s more, a well-organized plan can prevent the home from being lost in what is referred to as estate recovery when the person receiving benefits dies. While too much to get into here, an experienced attorney can walk you through all of the details.
- Medicaid Only Covers Nursing Homes
It is true that traditionally Medicaid has mostly paid for nursing home care costs and yet (because nobody wants to be in a nursing home) some states, including Texas, offer home and community-based services (HCBS) programs. These programs allow beneficiaries to receive care in their own home or community rather than in an isolated setting and strive to make lifestyle decisions in consultation with each individual’s unique needs.
- It Is Too Late to Gain Coverage
Regardless of your age, financial well-being, or medical history, it is never too late (or too early!) to initiate long-term care planning. While it is true that Medicaid employs a five-year look-back period when assessing an applicant’s financial eligibility, you may still gain access and retain significant assets with proper planning even if you need care now.
According to government data, a person turning 65 today has an almost 70% chance of needing some type of long-term care in their remaining years. Such care comes at an overwhelming cost and yet this need not be a burden if you have a plan in place. The simple act of getting started on building such a plan provides immense relief and if there’s one thing most people in the US need right now, it’s just that: relief.
Download our FREE Medicaid Planning in Alabama: What You Need To Know Guide to help you get the ball rolling toward a worry-free 2021! Contact us today to set up a consultation or if you have any questions.
by Bill Miller | Jan 6, 2021 | Blog, Elder Law, Estate Planning
Unless you are familiar with Tony Hsieh and his business approach, the connection between shoes and asset management might not seem obvious. Indeed, even if you do know a thing or two about the late former CEO of Zappos, you still might fail to see the connection. After all, what does your life’s work have to do with your footwear? Unless you have blown your savings into collector kicks, the truth is not much; however, if you are talking about the common ground between running a successful shoe enterprise and a successful estate and elder law firm, then the similarities are plenty.
Tony, who passed away tragically in late November founded the internationally-recognized online shoe retailer Zappos and in so doing left a legacy that can be counted not only in dollar signs, but in the much richer currency of human happiness. This is because Zappos is an outlier in the world of online retail. The company runs on ten core values which all, in some form or other, exist to ensure customers, as well as employees, vendors, shareholders and the community all leave any interaction with Zappos feeling happy. These values are the following:
- Deliver WOW Through Customer Service
- Embrace and Drive Change
- Create Fun and A Little Weirdness
- Be Adventurous, Creative, and Open-Minded
- Pursue Growth and Learning
- Build Open and Honest Relationships with Communication
- Build a Positive Team and Family Spirit
- Do More with Less
- Be Passionate and Determined
- Be Humble
Notably, nothing about shoes appears and there is not a single mention of profits. This is because, as the title of Tony’s book Delivering Happiness: A Path to Profits, Passion, and Purpose would indicate, happiness is profit, as well as so much more.
The lesson to be learned from Zappos applies at least as much to estate and elder law as to online retail. After all, an estate plan is only successful if one, it provides peace of mind to the person for whom it is prepared and two, eases the burden upon their family when they pass. These outcomes, peace and ease, are cousins of happiness and the cornerstone of a successful practice. When they are lost from sight, so too is an estate and elder law firm’s raison d’être.
Here at Miller Estate and Elder Law we take this to heart. Your happiness, as well as that of everyone involved in our operation, is fundamental. This is because when you leave our office, you do not leave with anything—not even a new pair of shoes—if you do not leave happy. Sure, we might secure your assets for future generations, ensure you have access to the care you need in old age, and help you in making the most of your life’s work (among many other services), but none of that is worth a great deal if you do not feel good doing it. Money and security mean little without well-being, after all.
In sharing this reflection, our goal has been to offer some insight into our practice. If you are reading this and happen to be a current or former client, hopefully all that has been said rings true. Whether this be the case or not, it would mean a lot if you could drop us a review on Google and AVVO. Reviews, both positive and negative, help us do a better job of helping you but more than that, they help other folks out there find services that are invested not only in raking in profits, but in nurturing happiness and building connection. Thank you!
If you would like to know how we can help with your estate plan, contact us today. You can also call 256-472-1900 to set up a consultation.
by Bill Miller | Oct 5, 2020 | Aging Parents, Blog, Nursing Home
While parents today may be generally informed that they could be liable for the debts of their children, they rarely consider whether they may actually find themselves on the hook for the debts of their parents. Did you know that over half of the United States have filial responsibility statutes on the books? This may come as a surprise to many people.
A filial responsibility law provides that an adult child has the responsibility to support his or her adult parent. The statutes vary between states. Arkansas requires only payment for mental health services and Connecticut only applies if the parent is under sixty-five. Meanwhile, a court in Pennsylvania entered a judgment of $93,000.00 against an adult son for his mother’s nursing home bill.
The positive news may be that, in most instances, these statutes are old laws that have not been repealed and are rarely enforced. Until they are removed from the books, however, the risk may be out there that these laws may be used as a collection tactic, as the gentleman in Pennsylvania discovered, much to his chagrin. Once one long-term care facility successfully utilizes the filial responsibility laws to collect from an adult child, it may only be a matter of time, until others follow suit.
The key takeaway here is to take a proactive, rather than a reactive, approach to filial responsibility laws. Having conversations with your parents regarding their finances, as well as, plans to cover the cost of a nursing home before the need arises, can be very important. If they have a long-term care policy, get a copy. It may also be prudent to be designated as their durable power of attorney to manage their finances should they become unexpectedly incapacitated.
An estate planning attorney can explain the filial responsibility laws in your state to you and your parents. In addition, the attorney can discuss options to safeguard against liability under these laws, such as Medicaid eligibility, long-term care insurance, life-insurance policies with long-term-care benefits or even the possibility of a reverse mortgage on your parent’s home. For more questions on this topic and related matters, please reach out to our office to schedule an appointment.
by Bill Miller | Sep 14, 2020 | Blog, Medicaid, Medicaid Planning, Medicaid Qualification
Medical emergencies can strike without warning. Martin’s family learned that when he suffered a major stroke and landed in the emergency room. He needed skilled, 24/7 nursing care. Unfortunately, he had never done any Medicaid planning or even wondered, “Do I qualify for Medicaid.” His family had to scramble to find ways to pay for his care until his Medicaid application was processed. Don’t be like Martin. As you consider whether you might qualify for Medicaid for the Elderly & Disabled or Institutional Medicaid, think about the following questions.
Do I have a physical or mental condition that meets Medicaid requirements?
To receive Medicaid for Institutional Care, you must be in the hospital, a nursing home, or an ICF-IID facility. Medicaid usually needs to see a doctor’s diagnosis for this type of care for it to be covered.
To receive Home and Community-Based Waivers, you must be “elderly, disabled, homebound, mentally disabled, or have certain medical diagnoses…”
As Medicaid caseworkers review your application, they will review your medical records to make sure you meet the medical requirements for the appropriate program.
Do I meet residency requirements?
Since Medicaid is a joint federal-state program, each state has some flexibility in how it manages its own Medicaid program.
To receive Alabama Medicaid benefits, you must be a resident of Alabama. Also, you must be a U.S. citizen or a qualified non-citizen.
Do you meet Medicaid’s income and resource limits?
These limits vary from program to program. However, the income and resource limits for E&D and Institutional Care are:
• Income limit: $2,030 per month
• Resource limit: $2,000 as of the first day of each month.
There are special rules for married individuals. When deciding whether you qualify for Medicaid or not, talk to an experienced Alabama Medicaid lawyer to make sure.
Answer the Question, “Do I Qualify for Medicaid?”
Discuss your circumstances with an experienced Alabama Medicaid lawyer.
Contact us at 256-472-1900 for a free consultation. The attorneys at Miller Estate and Elder Law know how to help you with Medicaid planning and with estate recovery concerns. Miller Estate and Elder Law is located at 818 Leighton Avenue in Anniston, but we serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
Also, receive a free download of Medicaid Planning in Alabama: What You Need to Know by completing the brief form below:
by Bill Miller | Sep 7, 2020 | Blog
Did you know that, at last count, there were nearly 29,000 assisted living facilities in the United States? Collectively, these facilities accommodate more than 996,000 licensed beds. This means there are plenty of options for older adults who can no longer live on their own, but do not yet need a nursing home. Even so, convincing an older loved one it is time to make the move may be easier said than done. Here, let us discuss three signs that time is at hand.
1. Your loved one needs more help doing certain things than he or she did before. One of the most obvious signs that it may be time for an older loved one to transition into assisted living can be if he or she is having difficulty doing certain things. Consider helping an older adult make this transition if he or she needs a lot of help with:
- Shopping (for groceries and other necessities)
- Household chores
- Making meals
- Personal hygiene
- Managing finances
2. There are significant behavioral changes that put the older adult at risk. A noticeable change in behavior can be another indication that it may be time for an older adult to move into an assisted living facility. This may be especially true if the new behavior potentially or actually puts the senior or caregiver at risk. These changes may occur gradually or suddenly, or as the result of certain medical conditions or because of a general cognitive decline as someone ages. Examples may include, but are not limited to, increased aggressiveness, forgetfulness, or the tendency to wander.
3. You can no longer cope physically, emotionally, or financially. If you are an adult child and/or family caregiver, you clearly have a vested interest in helping your loved one maintain their independence as long as possible. Even so, there may come a time when you can no longer cope. You may have difficulty coping financially, emotionally, or physically. If looking after an older adult becomes too much, it may be time to think about having him or her move into an assisted living facility.
This all being stated, no two sets of circumstances are exactly the same. The decision to move into an assisted living facility may be difficult, or an older adult may embrace the opportunity. In any case, it can be important to consult an experienced elder law attorney. He or she can help the senior and his or her family understand and plan for this transition. As always, you can turn to us with any questions or concerns. Just call our law office to arrange an appointment. We look forward to hearing from you.
