by Bill Miller | Jan 21, 2019 | Estate Planning, Uncategorized
A Trustworthy Person Standing in Your Shoes Right Now
Michael was having a wonderful time in Florida while he waited for his Alabama house to close. Unfortunately, he took a bad fall and ended up in a Florida hospital. He had his Alabama power of attorney, but the problem was that it was a springing power of attorney. The powers were only effective if Michael lost capacity. Michael’s capacity was fine, it’s just that he wasn’t in Alabama when an offer on the house came through.
Power of Attorney
A power of attorney is a legal document that allows someone else to stand in your shoes. It allows them to speak and act on your behalf. A document that is effective immediately – even if you’re perfectly capable of managing your own affairs at the time – is the better choice in most cases. Michael should have designated an Alabama agent with immediate powers. The document should be comprehensive enough to authorize the agent to conduct real-estate transactions on Michael’s behalf.
A document like Michael’s, however, that “springs” into life only on incapacity, would not serve him as he needed. And even if Michael had lost capacity, a doctor would still have to certify that he could no longer make his own decisions. This would cause delay and uncertainty, when swift action was required instead.
Get a Trustworthy Person to be Your POA
Many are concerned that if they have a power of attorney that is immediately effective, their agent will abuse privileges that aren’t even needed at the time. This is a sign, however, that they don’t trust that person. And after all, it’s better to be alert and aware if such a thing should happen, instead of discovering the problem only when you’ve lost capacity and it’s too late. Making sure to name a trustworthy person to serve as power of attorney is often better that using a spring power of attorney.
An experienced attorney can help you find your way through many such pitfalls. Please give us a call at 256 251-2137 to learn how we can help. You can also learn more about powers of attorney and other estate planning documents by getting a free copy of our book – The Basics of Estate Planning in Alabama by at www.AlabamaEstatePlanningGuide.com.
by Bill Miller | Sep 12, 2018 | Uncategorized
Generation X? Millennials? The Silent Generation? We’re fond of naming groups of people born during certain years. The largest group may be the Baby Boomers, who account for about 20% of the U. S. population. Born between 1946 and 1964, Boomers are reaching retirement age in record numbers. And, as boomers age, the possibility they will need some form of long-term care increases.
How many baby boomers will need long-term care?
According to some studies, about 70% of people over the age of 65 will need 24/7 care, either at home or in a nursing home. At this time, the baby boomer generation is somewhere between the ages of 54 and 72.
There are about 78 million baby boomers living in the U.S. right now, many over the age of 65. Baby boomers can expect to live a few years longer than their parents and grandparents. All this adds up to millions of people who may potentially need long-term care and for a longer period of time than previous generations.
When should a baby boomer start long-term care planning?
It is critical to start long-term care planning long before you need it. Ideally, baby boomers age 65 and older should already have a plan in place. However, people without long-term care planning are not without options.
One reason to start planning early is because of Medicaid. As the largest payer of nursing home costs, it is likely that baby boomers will need to be eligible for Medicaid benefits.
Is it ever too late to do long-term care planning?
Starting early is the best option. However, people of any generation can look into long-term care planning.
Many will need assistance paying for long-term care. Medicaid provides that assistance for those who qualify. But during the applicant process, Medicaid reviews the applicant’s records during the 60 month period prior to the application date. Planning ahead in this situation means avoiding certain kinds of property transfers and possibly establishing a trust. Since we cannot know when we will be incapacitated, if ever, then it is important to get this type of planning done as early as possible.
Learn More About Medicaid Eligibility.
The attorneys at Miller Estate and Elder Law know how to help you with long-term care 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 | 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 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 | Jun 10, 2018 | Uncategorized
Estate planning is unique in that it touches people at every stage in life, from a newborn infant to a 90-year old great-grandma.
Minors
Estate planning for minors may seem fairly simple. Children don’t need Wills and powers of attorney. What do they need, then? Well, they need parents who have taken the time to put together comprehensive estate plans.
In addition to preparing a Last Will and Testament that names a guardian for their child, parents can use durable powers of attorney, trusts, and other estate planning tools to provide for their offspring.
Young Adults
Adults over the age of 18 are less likely than older adults to have real estate and large savings accounts. Still, if they accumulate personal property, have bank accounts, and have definite ideas about medical treatment, they need to visit with an attorney to find out their options.
Middle-Aged Adults
This age group sometimes seems to get it from both sides: They may have both minor children and senior citizen parents to worry about. They are sometimes referred to as “the sandwich generation”. One of the most important things they can do is set up their estate plans so that their loved ones are taken care of if something happens to them. With careful planning, they can address their own potential long-term care or incapacity issues.
Senior Adults
Seniors are more likely to have estate plans than any other age group.
The issues most likely to be faced by the elderly include:
- Incapacity
- Long-term care
- Death
An up-to-date Will is a great first step, but there are other helpful documents. A power of attorney can save an elderly person from going through a guardianship or conservatorship. Medical powers of attorney and Living Wills allow individuals to state their preferences for medical treatment if they are not able to communicate. An attorney with elder law experience will be able to advise on other vital topics like how to pay for long-term care.
There is no one best age to take care of your estate planning.
Maybe you have an older parent facing elder law issues. Maybe you are looking ahead to your own future. Or you need to provide for young children. Either way, it’s important to know what rights and protections are available. Schedule a consultation with one of our attorneys and find out where you stand. Our phone number is 256-251-2137, or you may use the Contact Form on our website. We have offices in in Anniston and Birmingham, but also assist clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.
