INDUSTRY INSIGHT
ESTATE PLANNING
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A TO-DO LIST FOR THE NEW YEAR : Prioritizing Your Estate and Long Term Care Planning Goals
At the start of each new year , many of us make resolutions to improve our physical , financial , spiritual and / or mental health . However , statistics have shown that after just one month , only 64 % of people are still successful in keeping their resolutions — and after six months , there are only 46 % of people who are still hanging in .
One important item on your 2024 to-do list should be to schedule an “ Estate Plan Checkup ” and meet with an attorney to review your existing estate planning documents , or if you don ’ t already have an estate plan , to discuss your needs and create a plan . For families with young children , choosing a Guardian and Trustee are important components of your Will . As you age , it also becomes important to incorporate long-term care planning into your estate plan .
Long-term care involves not only a loss of personal autonomy ; it also comes at a tremendous financial price . Proper planning can help your family prepare for the financial toll and protect assets for future generations . Unfortunately , without proper planning , many people end up paying for nursing home care out of their own savings until they run out of money , at which point they can qualify for Medicaid .
THERE ARE ENOUGH WORRIES IN LIFE ...
CHOOSING THE RIGHT ESTATE PLANNING & ELDER LAW FIRM SHOULD NOT BE ONE OF THEM
For more than 30 years , Zacharia Brown has helped families to achieve their estate and long-term care planning goals throughout all the stages of their lives .
Estate Planning and Elder Law Attorneys www . ZacBrownLaw . com
McMurray / Wexford - 724.942.6200 • Murrysville / Versailles - 412.751.5670 Florida Offices - 239.345.4545
However , with careful advance planning , you can protect your estate for your spouse or children . And if you make a plan before you need long-term care , you may have the luxury of distributing or protecting your assets in advance . This way , when you do need longterm care , you will quickly qualify for Medicaid benefits . The following are some tools that can be utilized in an estate plan to prepare for Medicaid : n Trusts . One of the most important estate planning tools you can use is an “ irrevocable ” trust — a trust that cannot be changed after it has been created . In most cases , this type of trust is drafted so that the income is payable to you ( the person establishing the trust ) for life , and the principal cannot be applied to benefit you or your spouse . At your death , the principal is paid to your heirs . This way , the funds in the trust are protected and you can use the income for your living expenses . For Medicaid purposes , the principal in such trusts is not counted as a resource . And to avoid Medicaid ’ s “ look-back period ,” the trust must be funded at least five years before applying for benefits . n Annuities . Annuities are another tool married couples can use to prepare for Medicaid . In most states , the purchase of an annuity is not considered to be a transfer for purposes of eligibility for Medicaid but is instead the purchase of an investment . It transforms otherwise countable assets into a non-countable income stream . As long as the income is in the name of the spouse who is not in the nursing home , it ’ s considered non-countable . For single individuals , annuities are less useful , but if you transfer assets , you may be able to use an annuity to pay for long-term care during the Medicaid penalty period . n Protecting your home . After a Medicaid recipient dies , the state must attempt to recoup from his or her estate whatever benefits it paid for the recipient ’ s care (“ estate recovery ”). For most Medicaid recipients , their house is the only asset available , but there are steps you can take to protect your home . Putting your house in a trust can be a good option , but once a house is placed in an irrevocable trust , you cannot remove it . Another option is a life estate , which is a form of joint ownership of property between two or more people .
Make it a priority in 2024 to talk to your attorney about what your estate plan should include .
Christine Brown Murphy is a partner of Zacharia Brown PC , which is an Estate Planning and Elder Law firm . The firm focuses its practice on Medicaid eligibility , veterans benefits planning , estate administration , and estate planning including wills , powers of attorney , living wills , and trusts . Pittsburgh-area office locations include McMurray , Murrysville , McKeesport and Wexford . Contact information – Phone : 724.942.6200 Website : zacbrownlaw . com E-mail : christine @ pittsburghelderlaw . com
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