Key Takeaways | Your Estate Planning Options: What Is Best for You?
While a will is important, a comprehensive estate plan must also account for a person becoming incapacitated or incompetent.
Naming beneficiaries on accounts without a deeper plan can lead to assets going to unintended people, such as a child’s new spouse, instead of the desired grandchildren.
There is a major difference between a revocable and an irrevocable trust; a revocable trust offers no asset protection from nursing home expenses.
The first level of planning, which everyone should have, consists of an enhanced financial power of attorney, an advanced healthcare directive with a HIPAA release, and a last will and testament.
A will-based plan requires assets to go through probate, which can be expensive, time-consuming (9-18 months), and makes your financial affairs a matter of public record.
A revocable living trust allows assets to bypass probate, remain private, and provides future protection for beneficiaries against issues like divorce, creditors, or lawsuits.
For those concerned about nursing home costs, asset protection planning is necessary and typically involves an irrevocable trust or an asset protection deed.
To protect assets from Medicaid for long-term care costs, they must be transferred into an irrevocable trust at least five years before care is needed.
While a life estate deed can protect real estate from probate and Medicaid liens, it can be problematic if you later want to sell the property, as you’d need the cooperation of all the children on the deed.
The best estate plan is determined by an individual’s specific goals, such as whether they prioritize probate avoidance, beneficiary protection, or long-term care cost concerns.
Episode Notes:
Have you ever thought a simple will was all you needed to keep your family out of court, save your home from the nursing home, or ensure your money goes exactly where you want? The truth is, estate planning isn’t one-size-fits-all—and what you don’t know can hurt your loved ones when tragedy strikes. In this episode of the Miller Estate and Elder Law Podcast, we’re going to untangle the real options you have when it comes to protecting your family, your assets, and your legacy.
Here’s why this matters: When you’re gone or incapacitated, the last thing you want is your family caught up in expensive court fights, exposed to unnecessary taxes, or losing your hard-earned savings to a nursing home bill.
We’ll break down the three levels of estate planning: the pros and cons of a will-based plan, what a revocable living trust actually does to avoid probate and protect your heirs, and the asset protection powerhouses that guard family wealth from nursing home costs. If you’ve ever wondered whether you need more than just a will, what “probate” really means for your family, or how to stop your life savings from slipping through your fingers, start here.
Notable Moments:
(00:00) Do You Really Just Need a Will? The Big Estate Planning Misconception
(01:28) Why Thinking Only About “When I Die” Misses the Mark
(03:55) Are Your Trust Assets Truly Protected from Nursing Homes?
(04:52) Level One Planning: The 3 Estate Docs Everyone Needs
(06:36) What Happens Without a HIPAA Release or Power of Attorney?
(07:30) The Hidden Costs and Delay of Probate Court
(09:00) How a Revocable Living Trust Avoids Probate Hassles
(10:49) Special Protections for Children, Grandchildren, and Disabled Heirs
(12:19) Flexibility and Privacy: The Underrated Power of Trusts
(13:37) Asset Protection Planning: When Should You Consider an Irrevocable Trust?
(15:24) Life Estate Deeds vs. Trusts: Pros, Cons, and Pitfalls
(19:45) How to Decide Which Level of Planning Is Right for You
(21:10) Making an Informed, Proactive Choice for Your Legacy