by Bill Miller | Aug 17, 2018 | Estate Planning, Special Needs, trust
Julia’s daughter, Jenna, is a happy 17-year old woman. She participates in social activities, attends school, and has a job despite being born with multiple birth defects. While she’s satisfied with the progress Jenna has made, Julie is worried about her future. She wonders if her daughter’s needs can be anticipated and provided for in her estate planning.
The Basics
Typically, an estate plan consists of a Will, a durable power of attorney, and an advanced health care directive like a health care power of attorney. But complete estate plans address all of the testator’s needs and some people need more than the basics.
Julia can provide for Jenna in her Will. She could also have Jenna’s inheritance transferred to a trust for her benefit.
Extra Protection
Parents of a disabled child may have options that ensure their child’s future support.
- Special Needs Trust. This type of trust may calm at least some of Julia’s fears. The trust would be funded with money and assets that a trustee could use for Jenna’s support. However, if the trust is not properly drafted, it could reduce or eliminate Jenna’s eligibility for public benefits like Medicaid.
- Medicaid Income Trust. Also known as a Miller Trust or a Qualified Income Trust, Jenna can transfer some of her monthly income to this trust to remain below Medicaid’s income limits.
- ABLE Account. Julia might consider setting up savings plan called an ABLE account. ABLE stands for Achieving a Better Life Experience. Anyone can contribute to Jenna’s account, and the funds will be used for Jenna’s support.
- Guardianship. Jenna will be considered an adult at age 18, even though she has the mental age of a 10-year old child. If she has not already done so, Julia should talk to an attorney about setting up a guardianship for Jenna. Although disabled people often need to be as independent as possible, they remain vulnerable to people who may take advantage of them.
It can be difficult to find a way to provide for a disabled child’s future while preserving eligibility for public benefits and their own independence.
Consult with an Alabama Estate Planning Attorney.
Another thing Julia could do? Provide a letter of intent for future caregivers that gives instructions for Jenna’s care. While not technically an estate planning document, Julia can keep this letter with her important papers.
The attorneys at Adams & Miller have the experience you need to get the estate plan you and your loved ones deserve. Contact Adams & Miller, P.C. 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 | Aug 15, 2018 | Elder Law, Estate Planning, Medicaid Planning
Ned was a prominent business man in the community before suffering a devastating stroke. Sally was young and carefree, until she was involved in a catastrophic car accident that nearly took her life. And Jane’s mother, Lucy, was near death and worried about where all her property would go after she passed away. These individuals have something in common: they were involved in emergencies that could have been helped – or were helped – by estate planning.
The Need for Incapacity Planning
Ned and his family had absolutely no warning before he fell ill. One day he was running his business and planning a vacation with his wife. The next, he was lying in the Emergency Room. His family did not know where to turn when handling his complicated finances and his business interests.
Ned had never signed a durable power of attorney, which would have remained active even after his incapacity. If he had, his family would have known who was responsible for taking over his financial affairs. He also had never put together any business succession plans with his associates. They were left scrambling for ways to keep the companies afloat.
The Need to Make Health Care Decisions
Sally’s injuries were life-threatening and life-changing. If she lived, she would face a tough road ahead. Her family had many tough decisions to make – but no one was authorized to make them.
She also had never signed a durable power of attorney or a health care power of attorney. Because Sally was over age 18, her mother was unable to make medical or financial decisions for her. The medical issues were the most pressing. Her doctors needed to talk to someone who could make decisions about Sally’s care. Finally, Sally’s mother was forced to start a court proceeding to become her guardian and conservator.
The Need to Have a Plan
Jane’s mother would be entering a hospice soon. She knew she was not going to survive her liver cancer. Jane wanted her mother to be as comfortable as possible, but something was bothering Lucy. She had never made a Will. It was important to her that she use her last days to make a good plan for her estate and her heirs.
Jane contacted an attorney who met with her mother. Because her mother was still mentally alert, she was considered to have the capacity to prepare her Will. She knew who her beneficiaries were, and what property she owned. The attorney prepared the Will, which Lucy signed a week before death.
Good Estate Planning is Key.
We can’t always know when something bad is going to happen to us. However, we can have plans in place that will handle those bad times if they come.
The attorneys at Adams & Miller, P.C. know how to help you with estate planning. 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 | 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 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 27, 2018 | Estate Planning, Probate
Josiah M. had few possessions when he died, though he had many loving friends and family. He lived in a rented independent living facility, owned one car, and had several small bank accounts. His family began the process of probating his estate. His attorney suggested they take the small estate probate route.
Probate occurs when a judge determines that the Will of a deceased person is valid. It also refers to the administration of the estate whether a Will exists or not. Many people try to avoid probate proceedings because they can be expensive and lengthy.
A Fairly Easy Solution
Sometimes the person who passed away, the decedent, does not own much property at the time of death. Even then, some of the property they own may not become part of their probate estate.
A surviving spouse or one of the heirs can file a petition for summary distribution of the decedent’s personal property. Note that real property – like homes or land – cannot be transferred through a small estate proceeding.
Summary distribution can be requested under certain circumstances:
- The value of the estate does not exceed $25,000.
- The decedent was an Alabama resident at the time of death.
- A petition for appointment of personal representative is not pending or has not been granted.
- It’s been at least 30 days since the notice of filing was published.
- Funeral expenses have been paid or arrangements have been made to pay them.
- A probate judge has determined succession if the decedent did not leave a Will.
- Decedent’s Will, if any, has been filed in the office of the judge of probate.
- Notice of filing the petition has been published in a local newspaper or posted at the courthouse.
- All claims against the estate have been paid or arrangements have been made to pay them.
For people trying to probate a small estate, this procedure provides a faster, easier way to settle the estate.
Use the Right Probate Procedure When the Time Comes.
Josiah’s family was able to file a petition for summary distribution of his estate. He did not own real property and his probate assets (excluding bank accounts and insurance policies with named beneficiaries) were worth less than $25,000. His estate met all the other qualifications, also.
The attorneys at Miller Estate and Elder Law assist clients probate whether the estate is large or small. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. Although we’re located in Anniston, we also help clients in the Birmingham, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
