Estate Planning

Although no one wants to go to live in a nursing home sometimes there is no other choice.  Studies show that 1 in 4 will spend one year or more in a nursing home.  Financial and legal estate planning is essential especially in the case of a remaining spouse.   See Spousal Impoverishment Law. 

The easiest way to pay for long term care is by purchasing long term care insurance in your fifties.  Indiana offers a Partnership Policy that allows you some asset protection.  See Long Term Care Insurance.  Once you turn sixty five (65) you should consult the advice of an Elder Law attorney who specializes in long term planning for your estate, both legally and financially to properly plan for your future.   Elder Law attorney's work with the ever changing laws on a daily basis.  Since Medicaid has a five year review of all financial matters it is best to not make any transactions without the advice of a Elder Law attorney to avoid large penalties. 

Living Trust - Allows you to transfer ownership of property and assets to a trust which is administered by someone you appoint., including yourself.  There are both changeable and non-changeable (revocable and irrevocable) trusts, each of which have differing effects on taxes and government benefits.

Revocable Living Trust - A planning tool that takes the place of a will and avoids probate.  Transfers assets to a trust that is administered by a named trustee, which could be yourself.  Allows certain assets to be passed to children

tax free.  Allows you to control who you wish to receive your assets and who will manage and distribute them after your death or disability.  A successor trustee will assume management without need for legal guardianship.  It can be changed or revoked at any time. 

Estate Tax - Federal government taxes estates valued over a threshold amount.  Amount changes yearly.

Joint Tenancy -  Two or more people (such as a couple) own or hold title to an asset.  If held with right of survivorship, probates is avoided until the death of the last joint tenant/spouse.  There are pros and cons of joint tenancy which should be discussed with an attorney.

Probate - Court proceeding which arranges for resolution of all legal and financial matters of the deceased.  Title and asset changes are made according to the wishes in a valid will, or state directives in the absence of a will. Probate takes an average of nine to 24 months.  Fees include attorneys, court, asset appraisals and sometimes bond premiums (5-15% of estate value).  Information is public record Probate proceedings are required in every state in which property is owned.  Ways to avoid probates include joint ownership of all assets such as bank accounts, IRA's, life insurance or a house mortgage.  These will all go into probate, however, upon the death of the second spouse. Process to determine assets that are available in an estate that is left to heirs through a decedent's will.

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