INDUSTRY INSIGHT
ELDER LAW
SPONSORED CONTENT
What You Don ’ t Know CAN Hurt You
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 ( or your spouse ’ s 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 .
When naming a POA and executor , it ’ s best to name the oldest child , just to avoid hurt feelings .
Fact : The job of the POA ( your “ power of attorney ,” the person who can make legal and financial decisions for you ) and executor requires intelligence , persistence and honesty . Having the wrong person in those roles will just increase hurt feelings .
I ( and my spouse ) have to be completely destitute to qualify for Medicaid and VA benefits .
Fact : Not true . An elder law attorney can help you protect your funds . This is something to discuss when you have your will done .
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 excess of $ 5.5 million . And third , you can always give away as much of your money as you want .
Doctors will read and follow my living will .
Fact : They may , and they may not . Your health care decision maker will be your advocate , to be sure your wishes are understood and honored .
I don ’ t need a living will because my family already knows what I want .
Fact : Your living will makes your wishes clear to everyone , even the cousin out in California who wants you to have all the life-sustaining
extreme measures possible . When decisions are made , they will be your decisions , saving your family from anger piled on guilt , piled on top of grief .
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 .
Olds Russ is a general practice law firm in Shaler . Partners Ed Olds and Carolyn Russ have each been practicing law for more than 30 years . The practice is both a neighborhood practice — particularly in the areas of estate planning , estate administration and elder law — and a statewide practice in specialized areas such as employment discrimination , education law and civil rights . Olds Russ is committed to building relationships with clients that will last a lifetime .
Shaler | Spring 2017 | icmags . com 11