Planning During A Crisis
Planning During A Crisis
A common misconception about Medicaid is that, to become an eligible Medicaid recipient, you must first spenddown all your assets. This is not true. There are a variety of planning strategies used by professionals to preserve a portion of your assets, even if there is an imminent need for long-term care.
At Sarringhaus & Scott Co., LPA, we strive to educate our clients about their options. Planning can be an intimidating endeavor, especially when you or a loved one is in imminent need of long-term care. Current care costs are upwards of $300.00 per day. So, to avoid spending all your hard-earned money on care, important planning decisions need to be made fairly quickly. We at Sarringhaus & Scott Co., LPA, understand the pressures and stresses of these circumstances, as some of us have experienced similar situations in our own lives. We will take our time to explain the recommended planning strategies in a step-by-step process and provide you with enough information necessary to make an educated decision in a time sensitive situation.
Again, you do not need to spend your life savings on your cost of care. If you or a loved one are a current resident at a long-term care facility, it is not too late to plan. We can still preserve a portion of your assets, while still ensuring that you continue to receive the care you need.
Planning for the Future
Establishing a well thought out estate plan can provide tremendous relief for yourself and your loved ones, especially during your final years. General estate planning techniques prepare for the now. The considerations are, at this moment right now, who would you want making decisions on your behalf and to whom would you like to leave your assets. It is important to also consider the various “what ifs” that may become your reality in the future.
Elder law practitioners utilize estate planning techniques and documents but add language that gives your named agents the ability to engage in additional planning techniques, should you need long-term care in the future. This type of planning focuses on preservation of your assets and planning for the possibility of incorporating Medicaid as a payer if your care needs call for professional assistance in the future. The attorneys at Sarringhaus & Scott Co., LPA, take care to listen to your goals, and build your estate plan with the mystery of the future in mind.
Estate and asset protection planning techniques and tools are used to meet a broad spectrum of individual needs. Many younger couples begin with just the basic documents: healthcare directives, financial powers of attorney, Last Will and Testaments and a Transfer on Death Designation for their home. Having a Will provides them a vehicle to name a Guardian of their minor children, should both parents experience untimely deaths. However, these documents do not protect you from all the “what-ifs” that Elder Law attorneys plan for. The only way to reach this protection is through the creation of a Trust.
A key tool used in estate planning is the creation of certain Trusts. There are three main types of Trusts most utilized to solve for the most common estate planning goals and concerns: Irrevocable Asset Protection Trusts, Revocable Living Trusts, and Supplemental Needs Trusts. Depending on the goals and needs of the individual or family, the type of Trust recommended for each specific situation will vary.
For instance, elderly individuals may be more likely to utilize an Irrevocable Asset Protection Trust to begin planning in the event that they need long-term care in the future. Families with children that have disabilities may decide to create a Supplemental Needs Trust to provide for their child while allowing them to maintain ongoing benefits like Medicaid and Social Security Disability. Other individuals create Trusts to simply protect their families from the stress and expense of dealing with probate after their death. Others may want to include provisions in their Trust to avoid distribution of inheritance outright to certain beneficiaries, and instead continue to hold it in Trust. The planning possibilities seem endless when utilizing Trusts, and in many ways, they really are.
Our team of professionals at Sarringhaus & Scott Co., LPA are dedicated to your needs. We provide step-by-step legal services and clear guidance and support in what may be a very difficult time for you and your family. We understand that planning for the future is uncertain and may be uncomfortable. No matter the situation, we are committed to providing you with a solution that is in your best interest.
