Greg & Eugene discuss estate planning and make available a FREE digital version of the Magazine, the Elder Law Report . 2020 . Digital Edition. Get the magazine now at mcelderlaw.com/magazine.
Trusts are amazing tools that most people don’t really understand. That’s okay. There’s not a lot of info out there that explain them in terms that make sense. So, before you can determine whether a trust is right for you, let’s look at what a trust is.
The Trust
I always find it best to explain “the trust” by way of analogy. Imagine that you have a bunch of coins. Each coin represents something that you own—one of your assets. Let’s say that you have a bunch of coins and nowhere in particular to put them. So, these coins are strewn about and difficult to find. Not only are they hard to locate but their value and who they’re supposed to go when you pass away is not readily clear. You pass away with all these wayward coins and someone has to come in and find them all and also go through the process of finding the person they’re supposed to go to. We call that someone your “executor” and that process “probate.”
Now Imagine that all of those coins are in one place, like a treasure chest. In that chest, sitting neatly on top of the coins are a list of the coins and who they are supposed to go to. Further, a trusted individual has the key to the chest and they can pass out each coin to whomever it goes to immediately with no process necessary. We call that trusted person the “Trustee” and the lack of process “probate avoidance”.
This is how a trust works. Trusts also have other attributes where they can protect assets other than probate avoidance (think shutting the lid on that treasure chest and locking it); and leaving behind a legacy that the trust creator can control (think leaving each coin in a separate mini chest for each beneficiary).
Is a Trust Right for You?
The answer is one of my favorites to give: it depends. There are other ways to avoid probate than trusts, but they’re asset specific. For example, you can avoid probate with a bank account by adding a beneficiary. But that only applies to your bank account. A trust is a great tool to ensure all of your assets avoid probate.
There are also other ways to protect property but none so efficient and effective as the trust. Some people do not need trusts because they will simply not benefit. Maybe they have limited assets. However, most individuals can, in some way, utilize a trust to protect assets and ensure a retirement or inheritance is preserved. If you have significant money or property that you wish to protect, a trust is probably right for you.
If you have more questions about wether a trust is right for you give us a call at (704) 259-7040 or visit our website at www.mcelderlaw.com.
✅ The ELDER LAW REPORT . DIGITAL EDITION . 2020 Magazine is out!!! I have created a DIGITAL version of our MAGAZINE just for you. Go to mcelderlaw.com/magazine. We spent the last few months writing and editing this magazine just for you. The Elder Law Report Magazine is packed with great updates on the laws governing estate planning over the last year. We think you will love it! Enjoy your digital copy today.
✅ FEATURED CONTENT: – Build a Firm Foundation. – Is Your Trust Convertible? – 2020 Update! The Secure Act.
IF YOU’RE FAMILIAR WITH THE LADYBIRD DEED BUT WANT MORE INFO,
SKIP DOWN TO THE FREQUENTLY ASKED QUESTIONS SECTION.
“I don’t
want my home to get taken.” That’s a phrase I, as an elder law attorney, hear
every day. Understandably, most of my clients are concerned about what may
happen to their home if they were to need some type of long-term care. Many
folks tend to think that they cannot avoid being taken for all their
worth. Luckily, that’s not the
case.
To protect
the home, you have to know what the risks to your home are. Principally, they
are (1) paying for long-term care and (2) probate. Long-term care can be expensive,
and most people will need to qualify for some type of benefit like Medicaid to
avoid their assets being taken. Probate is the process where, after you pass
away, your assets pass to your heirs. It’s also the opportunity for creditors,
including Medicaid, to attach liens to property.
What’s the alternative?
Giving Your Home Away
A rather
prevalent misconception is the notion that you should give your home away after
you reach a certain age. The reasoning behind this notion is to avoid the home
being taken. And, while this is a strategy that is sometimes used, it’s not a
good strategy at all. First, if you give your home away, then you just GAVE
YOUR HOME AWAY! Traditionally not cool. You should be able to keep control over
your home and still keep it protected.
Second,
giving your home away triggers a lookback period—three years for assisted
living, five years for skilled nursing care. This means that you won’t qualify
for perhaps much needed benefits like Medicaid to pay for long-term care.
Life Estate Deed
Life
estate deeds are awesome. But they are
“plan ahead tools.” Life estate deeds protect the home or any other property
and pass the property outside of probate. However, they need to be put in place
outside the lookback period. Thus, they
are great tools if you may not be in need of care within the next three to five
years. Finally, you give up some control over the property to whoever you name
as beneficiary. You don’t have the
freedom to. Do whatever you want with the property.
Ladybird Deed
The
Ladybird deed are the best of both worlds. They keep you in control over your
home and allow you to avoid probate with the property; thus, protecting the
property from estate recovery. We advocate that our clients should be able to qualify
for benefits like Medicaid, protect their homes, and avoid. Probate all while
keeping control. The Ladybird deed is the tool to accomplish that goal.
Frequently Asked Questions
1. Can I
still sell my home?
Yes. You do
not give up your rights to sell your home with the Ladybird deed.
2. Can my
children/beneficiaries sell my home?
No. They
cannot sell your home without your authority.
3. Can I put
a Ladybird deed on my home if it has a mortgage, homestead exemption, or land
use exemption?
Yes. The
Ladybird deed does not affect a mortgage, home equity line, or tax exemption on
the home.
4. If I am
in a nursing home, is it too late to put a Ladybird deed on the home?
No. It’s
not too late. Thankfully, you can put a Ladybird deed on the property at any
point in your life.
5. Does the
Ladybird deed need to be put on within three to five years of going into
long-term care?
No. This is
a common misconception. The Ladybird deed does not affect the lookback period.
You can utilize it at any time.
6. Will I
still be liable for the taxes on the property?
Yes. Since
you’re not giving away any interest in the property, you’re still liable for
all expenses with regard to the home.
If you have more questions about the Ladybird deed give us a call at (704) 259-7040 or visit our website at www.mcelderlaw.com.
ARE YOU READY? ARE YOUR AFFAIRS IN ORDER? Find out in this LIVE Estate Planning Seminar where Greg, Brenton and Hayden discuss all your FOUNDATIONAL DOCS that you need as well as Trusts and Lady Bird Deeds. Great FREE CONSULT offer within this seminar. Take advantage by calling: 704-749-9244 or online at mcelderlaw.com/estateplanning.
“Carpe diem.” The phrase made famous by the Roman poet Horus has been uttered as advice for centuries. We have long been told to seize the day and give little thought to the future. This is great motivational advice, but a meaningful life needs something more than motivation. It needs purpose.
That’s all well and good but how do
we find purpose? Well, I am no guru, but I find looking toward the future as a
useful exercise. Specifically, I like to imagine far into the future, even a
thousand years, and think about the type of impact I would like to make today
that will affect the next millennium.
This seems like a rather lofty
goal. That’s the point. We all have an opportunity in this life to positively
change the future forever. And change is not a rare instance. Think about all
the people in history, or in your family, that have shaped the world you live
in today.
Your impact doesn’t need to be
something that will be enshrined in the history books. In fact, most of the
impactful actions of our ancestors have been lost to history, but have an
impact, nonetheless.
Think about how you want your
family to look centuries from now. What type of effect would you like to have
on those people who share your blood, your genes, your family history? Would
you want them to remember you as someone who helped define their ancestral
history? Maybe your name will eventually be forgotten over the years, but your
choices, your, plans, and your actions will determine how those peoples’ world
looks—whether or not they’re good choices by the way.
That’s purpose. Looking toward the
future with the intent to shape it for the better is purpose. Many folks want
to have this sort of “impact” I’m talking about. However, many don’t know how
to begin.
It all starts with a plan. To have
a legacy, you must protect your legacy, and to have choices that impact the
future, you must make your wishes not only known but also set in stone. That’s
what estate planning is all about. We
focus not only on protecting you during your life, but also ensuring your
legacy, your, wishes, and the loftiest of your goals.
We are in the business of protection for the person and posterity. Let us help you fulfill your purpose. If you have questions about protecting your assets and legacy, give McIntyre Elder Law a call at (704) 259-7040 or visit our website at www.mcelderlaw.com.
IN PERSON . VIDEO CONSULT . PHONE CONSULT
We are offering FREE CONSULTS during this crisis. Let us help you and your family today!
Brenton S. Begley Elder Law Attorney
Regards,
Brenton S. Begley
Elder Law Attorney
McIntyre Elder Law
“We help seniors maintain their lifestyle and preserve their legacies.”
Americans have fought for our rights for centuries. Now they are suspended. How could this shutdown affect your estate and your rights? Brenton and Greg discuss.
“You should seek balance in all things”. Someone important probably said that. Regardless of who did say it or what context they meant it, it’s a pretty good maxim. An extreme reaction tends to have extreme consequences. And, even if an extreme reaction is warranted, the it should be axiomatic that questioning an extreme reaction just comes with the territory.
Case in
point: “Shelter in Place”. Now, for whatever reason, this topic has become
politicized. That’s not necessarily bad
because it means people care. But because it has become politicized, and I want
people to keep reading this article, let me pose the real question with all
assumptions included. The real question is not should we lift the Shelter in
Place Order, but how do we open up the economy while protecting rights and
those who are the most vulnerable?
I read
somewhere onetime that for every 1 percent the unemployment rate rises, 40,000
people die—direct correlation. That’s not to mention, that economic strife
disproportionately affects minorities and the poor. Shutting down all
non-essential businesses because of the COVID-19 pandemic, whatever your
viewpoint, has certainty caused economic strife and we’ve seen unemployment
skyrocket, which begs the question, what will make us sicker?
Hardworking people are out of work
indefinitely. That not only means that they must struggle to provide basic
necessities for their families, it also means that the economy loses their
contribution i.e. taxes that supports our social safety net. The ripple effect
of shutting down an economy will be sending waves long after this pandemic is
over.
Let’s not forget, however, that
this virus kills people, especially the more vulnerable among us. After all,
the government is not just shutting down businesses for the heck of it. So, we
need to find a balance. We need to ensure that we do not trade one bad
situation for another. We may be out of the frying pan, but are we headed for
the fire?
There’s also the question of
individual rights. An executive order to shelter in place is, no matter which
way you spin it, a suspension of individual rights—even fundamental rights
afforded to us by the Constitution. Do we want a precedent? Do we want the
government having grounds to prevent freedom of assembly, freedom of speech,
freedom of religion?
Let’s look at where the rubber
meets the road. We’ve had concerns about police overreach in this country for
years. Luckily, police need probable cause to stop someone. Otherwise, anyone
could be harassed by law enforcement. Probable cause means reasonable and
articulable grounds that a crime is a foot. What about violation of a stay at
home order? Does that mean that anyone not at home can possibly be
violating the order, therefore providing probable cause for a lawful police stop?
Can the stay at home order provide a pre-text for police to “lawfully” violate
basic privacy rights?
I’m sure that the answers to the
questions may vary. We’re in uncharted waters and no one really knows the
answers. The important thing is that these questions be asked. I have learned
that to solve a problem, you focus on the solution. The problem we’re facing is
that we need to protect people from a pandemic, from infringement of individual
rights, and not tank the economy. What’s the solution? Is there a solution?
Maybe an extreme reaction is warranted. Perhaps we should focus on “flattening the curve” and let the chips fall where they may. What you, the reader, need to remember is that whatever you may think, someone is making the decision for you. Your voice matters. Add to the conversation, contribute to the narrative, and help solve the problem. Ask your friends, your family, your congressman. Ask them what the answer should be. Ask the important questions and remain vigilant of the fact that this is a novel problem. Nobody has the answers, no matter how emphatically, how loudly, or how bluntly they declare they do.
Brenton S. Begley Elder Law Attorney
Regards,
Brenton S. Begley
Elder Law Attorney
McIntyre Elder Law
“We help seniors maintain their lifestyle and preserve their legacies.”
SPECIAL Elder Law Report. Health Update from DeShay Oliver, the Interim Healthcare Director of Cleveland County, NC and then Greg, Brenton and Hayden talk about the Question: Can we reopen our society in a thoughtful way?
