Planning for the Golden Years

The Golden Years are the years we look forward to. After working to retirement and raising a family, the Golden Years are known as the time to relax and enjoy the hobbies that bring you joy in life. Being comfortable financially for those times takes preparation. This preparation takes time and thorough research in order to achieve what you want and what is ultimately best for you.

Planning is important

What to Consider With An Estate Plan

If you have a current estate plan, are all your current wishes included in the current plan? Does it minimize costs? Does it reduce time delays? Minimize the tax liability? Maximize privacy? Provide for management? These are all questions to consider when reviewing your estate plan or creating a new one.

Documents to include in Estate Plan

• Power of attorney
• Health care directives
• Community property/pre- or post-nuptial agreement
• Pour over will
• Certificate(s) of trust
• Funding documents

Power of Attorney

POA's are described as written authorization to represent or act upon another’s behalf in private affairs, business or some legal matters. A durable power of attorney remains in effect even if the “grantor” becomes mentally incapacitated. A durable power of attorney gives the power to grant gifts, to access retirement benefits, to sell real estate, and to create a trust in order to become Medicaid-eligible.

Guardianship

Guardianship is a legal relationship between an individual (guardian) who has been given legal authority and duty on behalf of another individual (ward) who lacks sufficient capacity to manage his or her own affairs or make and communicate important decisions.

Guardianship is important because you again, protect your loved ones, ensure quality care of that individual, and guarantee financial stability.

For a guardianship, a protector may be declared by a judge in order to protect and manage the financial affairs or everyday care of another individual. Guardians can oversee only the “estate or manage the health care, daily activities and living arrangements. Those that have physical or mental disability such as Dementia often have a guardianship in place to take care of those needs.

In order to grant guardianship, it must be processed through the courts. It can be costly, because of court dates. However, it is sometimes the best option for those that need it.

Living Trust

A living trust can be single or joint. A Living Trust has three phases:

• Phase 1: Grantor(s) have management
• Phase 2: Survivor or Trustee has management
• Phase 3: Beneficiaries receive property

A trust can be funded by real estate, bank accounts, stocks, bonds, all property or a plan of distribution.

Special Needs Trust

A special needs trust protects the future well-being, education, healthcare and living arrangements of an individuals with special needs. The trust complements government benefits. It also protects gifts, the future, and protects trust assets from subject to credit seizure.

Who qualifies?

• Disabled individuals under 65
• First-party trust
• Funds can be used for anything Medicaid does not cover

Medicaid

When it comes to planning for care when you are older, alternative types of living including nursing homes, assisted living, and others. The average American spends approximately $8,365 per month on nursing home care and the average stay at a nursing home is approximately 835 days or 2.3 years. In total, that is $230,874.

Medicaid planning is important because you are able to plan for how much you have to pay for a nursing home facility and how much Medicaid will be needed to continuing living at that facility.

The National average cost of nursing home care is $70,000. For in-home care is $120 - $150 per day, and assisted living care can range from $24,000 - $50,000 per year.

Veteran Assistance

For Veterans, pensions are available for veterans over the age of 65. There are three classifications for pensions:

• Basic
• Household
• Aid & Attendance

For Aid & Attendance, the veterans must be honorably discharged, served at least one day during wartime, living in an assistance facility, paying for long-term care, and claimants receive a cash payment.

Disability compensation is not limited by veteran’s income or assets. A surviving spouse or dependents may qualify for Dependency and Indemnity Compensation (DIC). Spouses of wartime veterans may be eligible for up to $1,949 per month. Surviving spouses of a veteran may be eligible for $1,056 per month. The requirements of these extra benefits is wartime service or the widow of a veteran, medical expenses, and assistance needed.

How much will this cost me?

A consultation with a lawyer can cost up to $500. However, there are lawyers that offer free consultations to determine what your situation holds. A consultation for an estate plan can range from $100 to $8,000, depending on the lawyer and situation for the estate plan.

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