Apr
11
2017
0

How Much Are Probate Fees?

In California, Probate Code section 10810 statutorily sets the maximum amounts that executors and attorneys may be paid for their fees. The amount of attorney fees and executor fees are ordered by the court at the end of case. If the case is complicated, for instance where litigation is involved, the attorney can request that the court allow additional fees for the attorney’s extraordinary services.

The formula for calculating statutory fees for the attorney and for the executor are as follows: (1) Four percent for the first $100,000 of the estate; (2) Three percent for the next $100,000; (3) Two percent on the next eight hundred thousand dollars; (4) One percent on the next nine million dollars.

So for instance, if the amount probated is $100,000, the executor and the attorney can each be awarded $4,000 for their fees. If the amount probated is $200,000, the executor and the attorney can each be awarded $7,000 for their fees. The following chart reflects the statutory fees for the attorney and the executor for an estate with a value up to $5,000,000.

PROBATE ESTATE VALUES TOTAL ATTORNEY AND EXECUTOR FEES*
$100,000 $8,000
200,000 14,000
300,000 18,000
400,000 22,000
500,000 26,000
600,000 30,000
700,000 34,000
800,000 38,000
900,000 42,000
1,000,000 46,000
2,000,000 66,000
3,000,000 86,000
4,000,000 106,000
5,000,000 126,000

Please feel free to contact our office should you need help with a probate. This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com, we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help the older client and their families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Jan
13
2016
0

What To Do About Social Security Benefits After Someone Dies

We are often asked what should be done about Social Security benefits after someone dies. When a social security recipient dies, the Social Security Administration must be notified as soon as possible. The funeral home will usually make the notification to Social Security.  If the funeral home does not provide this service, then another family member or the surviving spouse must make the notification to Social Security.

You can visit the Social Security office in Walnut Creek at 1111 Civic Dr. #180 to let them know. You can also call Social Security at (800) 772-1213 to inform them.

Any benefits received for the month of death or for any months after the date of death of the recipient, must be returned to Social Security.  If Social Security benefits are paid by direct deposit into the bank, you will need to contact the bank and request that any funds received for the month of death or for any months after the month of the death, be returned to Social Security.  If a Social Security check or checks are received, do not deposit them, but instead return them to Social Security as soon as possible.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Nov
25
2015
0

Governor Brown Signs The End Of Life Options Bill

Governor Edmund G. Brown Jr. signed into law the AB-15 End of Life Options bill on October 5, 2015.  This is landmark legislation which allows patients who are terminally ill to receive lethal medications to end their lives at a time they choose. The law will become effective at a date to be announced during 2016. The bill ends with a sunset date of January 1, 2026, unless extended.

The bill states in part that “… an adult who meets certain qualifications, and who has been determined by his or her attending physician to be suffering from a terminal disease, as defined, to make a request for a drug prescribed pursuant to these provisions for the purpose of ending his or her life. The bill would establish the procedures for making these requests.”

In his signing statement, Governor Brown lamented that, “I do not know what I would do if I were dying in prolonged and excruciating pain. I am certain, however, that it would be a comfort to be able to consider the options afforded by this bill. And I won’t deny that right to others.”

For additional information please feel free to contact our office. This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Dec
31
2014
0

Mom Is Showing Some Dementia – Can we still create a long term care plan for her?

In my workshops, we talk about the Elder Care Journey. Along this journey, which I show on a chart, is an area called “Declining Senior With Memory or Mobility Issues.”  I reference this step along the Elder Care Journey as a DANGER ZONE. We know that mobility issues and falling oftentimes is the beginning of a downward slope for our older loved ones. A person with mobility issues but who still has good mental capacity can of course enter into a long term care estate plan. She can agree in the plan that if she loses capacity, her loved ones can proceed with asset preservation, possible gifting, transfer of her home for asset protection, and getting her ducks in a row for qualification for Medi-Cal, etc.

If she has lost mental capacity by the time she sees her elder law attorney, she will not be able to enter into such a plan. If there is a formal diagnosis for instance of advanced dementia, we of course will not be able to proceed. In that case, if she has the plain vanilla type of estate plan, which is more suitable for a younger person, the plan will most likely not have the powers to allow her fiduciary to complete gift transfers or to transfer the home to her spouse or her children for asset protection. In that event, we may need to go to court to obtain an order to reform her existing estate planning documents.

If Mom has some dementia, such as short term memory loss, she may still have sufficient mental capacity to enter into a long term care plan. We can usually tell through our interview and conversation with her if she understands what the plan is about. If we are not certain, we can ask her medical doctor whether he would be willing to confirm in a letter that she has sufficient mental capacity to create the estate plan.

The sooner the older client sees the elder law attorney, the better. It is never too late to do long term care planning, but it is much more expensive if we need to go to court to complete the planning.

For additional information, you can contact your elder law attorney Michael J. Young. This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the law offices of Michael J. Young, 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA http://www.WalnutCreekElderLaw.com, 925-256-0298,lawyoung1@gmail.com, we practice elder law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with Sustainable Estate Planning, long term care planning, asset protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order to help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension Benefit.

Jun
09
2014
0

How To Convert Your Life Insurance Policy To Help Pay For The Cost of Senior Care

Some of our clients have asked whether they should let their life insurance premiums lapse, as part of budgeting for the cost of care for their loved one. Many of our clients have been making premium payments on their life insurance policies for a long period of time.

My answer is to first find out whether their life insurance policy has a value that can be converted to a long term care benefit. As part of the process, we present a copy of the policy to a Life Care Funding Company along with a simple application. The company underwriters will determine whether they will make a cash offer to you for the purchase of the policy. If they make such an offer and you accept it, the cash is then placed into a benefit account that is professionally administered by the company.

 Payments from the benefit account are then made monthly to the care providers for the benefit of the individual receiving care. Payments can be made for instance to assisted living communities, nursing homes, retirement communities and home health care providers.  

Once the life insurance policy is converted to a long term care benefit, you will no longer make premium payments to keep the life insurance policy in effect.

For additional information, you can contact elder law attorney Michael J. Young. This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Mar
11
2014
0

No Look Back Period for VA Aid & Attendance

There will NOT be a look-back gifting penalty period for the VA Aid & Attendance Pension Benefit. On February 27, 2014, Senate Bill 1982, known as The Veterans Pension Protection Act, did not get the required votes to pass. One of the purposes of this bill, which also contained other provisions, was to help curtail some of the backlog at the VA for processing this benefit.

 Unlike Medi-Cal, VA does not have a look-back gifting penalty period for qualification for the Aid & Attendance Pension Benefit. As a result, you can theoretically gift all of your assets away today, and be eligible for this VA benefit tomorrow with no gifting penalty. California however has a 30 month look back penalty period for gifting for eligibility for Medi-Cal. Medi-Cal pays for nursing home costs, minus a share of cost contribution by the recipient.

 A problem has been that the 30 month look back penalty rules for Medi-Cal have often been ignored when large gifts have been made for qualification for Aid & Attendance. The result has been that if you make a big gift today in order to receive this VA benefit, you may have created a long period of ineligibility for Medi-Cal, by not following the Medi-Cal gifting regulations. Your elder law attorney will advise that any gifting made for qualification for the VA Aid & Attendance Pension benefit should coincide with the Medi-Cal gifting rules.

 If Senate Bill 1982 had passed, any gifts made within the last three years would be reported, and a penalty for eligibility would attach.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Feb
04
2014
0

Your Home Is Still An Exempt Asset for Medi-Cal Qualification

The home (principal residence) of a Medi-Cal applicant is still not counted as an asset for qualification for Medi-Cal if you take certain steps. In order to qualify the home as an exempt asset, the applicant must confirm in writing that he intends to return to his home after a stay in a nursing home. The home is also exempt for qualification if his spouse or a child under the age of 21 resides in the home. There are additional ways to confirm the home as an exempt asset for Medi-Cal qualification, but confirming the exemption is usually not a problem.

 Under the Deficit Reduction Act, which has not to date been implemented in California, we believe that a home will not be exempt if it has more than $750,000 in equity. However, to date this is not the law, and we will be sending out e-mail blasts when we get more information in this regard.

 However, just because the home can be made exempt for qualification for Medi-Cal, does not mean that the home is protected from a Medi-Cal lien after you die. If a Medi-Cal recipient dies with the home in his estate, the state will want to recoup its loss against the home. If a surviving spouse is in the home, the state will not pursue a lien until the surviving spouse dies. If the home is not in your estate when you die, the state cannot recover against it.

 There are techniques allowed under the Medi-Cal regulations which allow us to transmute (transfer) the home to a spouse prior to death without penalty, in order to avoid a Medi-Cal lien. We can also transfer the home to other family members or to third parties without penalty under the regulations. However, any such transfers must be done correctly under the regulations. When making such transfers, we must take into account capital gains and assessor re-assessment issues. At times “life estates” are reserved in the home to the applicant for tax purposes. Your elder law attorney can help you with your long term care planning regarding the home.

 This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Jan
28
2014
0

Financial Durable Powers of Attorney for Baby Boomers and Seniors Can Now Provide for Long Term Care Planning and Asset Protection

Financial Durable Powers of Attorney (Fin. DPA’s) for Baby Boomers and Seniors can provide for asset protection and government benefits planning. The language we use in Fin. DPA’s for long term care planning for baby boomers and seniors is very different from the language we see in the plain vanilla Fin. DPA’s which most people have.

Baby Boomers and seniors usually want to get our ducks in a row for possible qualification for Medi-Cal, which can help pay for our skilled nursing home stay if we run out of Medicare days. In addition, for wartime veterans, we want to get our ducks in a row for possible qualification for the VA Aid & Attendance Pension Benefit which can help pay for in home care and the cost of assisted living facilities. If we lose mental capacity, these extraordinary powers will allow your attorney in fact in your Fin. DPA, such as your spouse or child, to follow through with asset protection and government benefits planning according to your wishes.

The Uniform Statutory Form Power of Attorney that many people already have, does not contain the required language for asset protection. And, the majority of attorney created Fin. DPAs do not have this requisite language. As a result, if you become incapacitated and you do not have the requisite language in your Fin. DPA, your agent may be powerless to follow your wishes for asset protection.

For instance, we may want to transfer (transmute) the title of our home from the ill spouse to the well spouse, or to a child, during our lives, for asset protection purposes. For many of our clients, the home is their largest asset. Most of our clients want their home to ultimately transfer to their children without government liens attaching. They also want their children or heirs to receive the home with a full step up in basis when they die, so that there will be no capital gains to pay if the home is sold upon the death of the maker of the Fin. DPA.

Most Fin. DPAs do NOT have this specialized language which is required to accomplish these goals . In addition, for long term care planning, the language in the Fin. DPA is coordinated with the language in the revocable living trust, to provide additional options for asset protection. You should contact your elder law attorney for advice for long term care planning and to review your existing estate plan.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Jan
10
2014
0

FIVE THINGS BABY BOOMERS AND SENIORS CAN DO TO GAIN PEACE OF MIND FOR SURVIVING THEIR RETIREMENT YEARS

Many Baby Boomers and seniors are concerned about surviving their retirement years. Many have not been able to save adequately, have suffered losses in the stock market, and do not have pension funds sufficient to meet their future needs. Most are concerned about health care issues, and how their nursing home costs would be paid for if needed. They also want to leave a legacy to their loved ones.

First: Update your estate plan to a Long Term Care Plan. Most of our clients do not have long term care insurance to pay for a stay in a nursing home. Fortunately however, California has Medi-Cal, which will pay for a stay in a nursing home provided that you qualify. You can now set up a long term care plan, as part of your estate plan, to provide for asset protection and qualification for Medi-Cal. within the state regulations. For veterans, the plan will also help for qualification for the VA Aid & Attendance Pension Benefit to help pay for in home care and assisted living facilities. Your plan will also confirm your overall desires regarding  how your assets will be spent for your care at home and otherwise.

Second: The home is often our clients’ largest asset. You can take steps now through your estate planning documents to assure that your home will pass to your loved ones as a legacy, without a Medi-Cal lien, so that the state will not be able to recoup any nursing home payments it has made for you.

Third: Change your life style just a little bit, and try to keep more of what your earn. I recommend reading The Millionaire Next Door by Thomas J. Stanley in this regard. Stanley gives examples of how changing your lifestyle somewhat, and giving up certain luxuries, will allow you to put more money into your retirement accounts on an ongoing basis. As you get older, cut back on certain expenditures, and put what you save into your retirement accounts. Go out to fancy dinners less often, put off buying a new car, and put those savings into your retirement account.

 Fourth: We still have Social Security. Some analysts say that the program can pay for benefits for the next 25 years for the general populace. There also seems to be a consensus of opinion, that any changes in the law should not affect Baby Boomers. Although you can begin taking benefits at age 62, this could be a 25% reduction of what you would receive if you waited until you are 66. If you wait until age 70, this could raise your benefit by another 8% per year, so wait longer if possible.

 Fifth: Stay physically active and you will most likely remain healthier and live longer. Try to increase the number of steps you take every day. It has been said that sitting is the new smoking. Get up and walk around for ten minutes every hour. This will also make you more productive. 

* This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers and families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

Nov
04
2013
0

Peace of Mind Now For Baby Boomers and Seniors Facing Retirement

A big issue now facing Baby Boomers and seniors is, surviving in retirement. We should have our “Ducks In A Row” now regarding health and financial issues, and there are many things we can do.

 Most of our clients do not have long term care insurance to pay for a stay in a nursing home. If they do, the policy would probably not pay the full cost. Fortunately however, California has Medi-Cal, which will pay for a stay in a nursing home provided that you qualify. You can now set up a long term care plan through your elder law attorney, as part of your estate plan, to provide for asset protection and qualification for Medi-Cal. For veterans, the plan will also help for qualification for the VA Aid & Attendance Pension Benefit to help pay for in home care and assisted living facilities. Your plan will also confirm your overall desires regarding how your assets will be spent for your care at home and otherwise. If you lose capacity, your loved ones will have the authority to follow through with your plan.

 The home is often our clients’ largest asset. You can take steps now through your estate planning documents to assure that your home will pass to your loved ones as a legacy, without a Medi-Cal lien, so that the state will not be able to recoup the nursing home payments it has made for you.

 Many Baby Boomers’ do not have sufficient savings to live on through retirement. The stock market has hurt many portfolios in the past. Fortunately however, Social Security is still in existence. Some analysts say that the program can pay for benefits for the next 25 years for the general populace. There also seems to be a consensus of opinion, that any changes in the law should not affect Baby Boomers, and that the fund will be available for them. Although you can begin taking benefits at age 62, this could be a 25% reduction of what you would receive if you waited until you are 66. If you wait until age 70, this could raise your benefit by 8%, so wait longer if possible.

 For additional peace of mind, you can change your life style just a little bit, and try to keep more of what your earn. I recommend reading The Millionaire Next Door by Thomas J. Stanley in this regard. Stanley gives examples of how changing your lifestyle somewhat, and giving up certain luxuries, will allow you to put more money into your retirement accounts on an ongoing basis.

 This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers and families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

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