INDUSTRY INSIGHT
ELDER LAW
SPONSORED CONTENT
Common Misconceptions About Estates and Elder Law
Estate lawyers hear all kinds of“ facts” that aren’ t really facts at all. The following are some of clients’ most common misconceptions.
My will controls how all of my assets will be distributed at death.
Fact: Your will controls your“ probate estate.” This includes assets that you own in your name alone and that don’ t have beneficiary designations. Your will does not apply to jointly owned assets and accounts where you have named a beneficiary, like IRAs and bank accounts.
If I don’ t have a will, my spouse gets it all.
Fact: If you don’ t have a will and don’ t have any children, yes, your spouse gets it all. The same is true if you own everything jointly with your spouse. But if you have assets in your name alone and you have children, your children may get part of your estate.
Probate is expensive and drawn out and difficult.
Fact: In Pennsylvania probate is inexpensive and usually straightforward. It also offers your heirs some protections. excess of $ 5.5 million. And third, you can always give away as much of your money as you want.
If something changes in my life, I can always change my documents then.
Fact: Maybe, and maybe not. Stroke, dementia, coma... there may be health reasons why you would be unable to change your documents. The goal is to prepare documents now that will be good for the rest of your life.
These are just a handful of the misconceptions people have about their estate and nursing home planning. Honestly, lawyers go through law school, attend continuing legal education classes, and spend hours and hours researching clients’ problems. Don’ t feel bad if you don’ t know everything. An elder law and estate lawyer will be happy to apply all that training and experience to your particular situation.
If I go into a nursing home, the nursing home will take my house.
Fact: The nursing home will never take your house. Your family may have to sell it to help pay for your care. And if you receive Medicaid to help pay for your care, after you die the state will have a claim against your estate, just like a doctor would have a claim. If your house is part of your probate estate( see the first paragraph above), it may have to be sold to repay the state. There are many exceptions, though, that allow the house to stay in the family.
You can give away $ 14,000 a year without it affecting your eligibility for Medicaid. And you can’ t give away more than that.
The $ 14,000 figure has to be the most misunderstood number ever. First of all, that number has nothing to do with Medicaid. The number for Medicaid is $ 500. If you give gifts totaling more than $ 500 in any one month during the five years before you otherwise qualify for Medicaid, your qualification will be delayed. Second, the $ 14,000 figure really just matters to people who have assets in
Attorneys Claire Saenz, Jeanne Marquette, and Nora Peace recently joined the firm of Olds Russ, with offices in Shaler and Wexford. The firm offers both a neighborhood practice— particularly in the areas of estate planning, estate administration, elder law, and real estate— and a statewide litigation practice in areas such as employment discrimination, education law, and civil rights. Olds Russ Saenz Marquette & Peace is committed to building relationships with clients that will last a lifetime.
Hampton | Summer 2017 | icmags. com 25