Most people I meet have a basic estate plan that is designed for younger people. The plan typically consists of a revocable living trust, pour over wills, financial durable powers of attorney, and health care directives. These plans were typically designed some years ago. The emphasis on that planning was to ensure that if the parents died, their children would be taken care of through resulting trusts that would be funded upon the passing of both parents. Trustees and guardians were appointed to take care of the children. The surviving spouse would be taken care of through the trust and with the purchase of life insurance that would take care of the surviving spouse and pay off the mortgage if one spouse died.
After the children grow up and move out, the emphasis for our planning changes. We begin to think about our health care needs as we grow older. We begin to wonder how we will be able to pay for the costs of in-home care, assisted living facilities, a board and care home and a possible nursing home stay. We also want to be able to protect our assets. Our estate plan that was created when we were younger is no longer adequate for us. Now that we are older, our estate plans should be converted to long term care plans, with the help of an elder law attorney. This planning takes into account qualifying for government benefits such as Medi-Cal, which can pay for a stay in a skilled nursing facility, and the VA Aid and Attendance Pension Benefit, which can help pay for in-home care or assisted living facility costs. This planning may also utilize a new kind of life insurance, which has a long term care rider. Instead of just paying a death benefit to your spouse or loved one when you die, the long term care rider can be utilized during your life to pay for in-home care, assisted living facilities, a board and care home and a possible nursing home stay. This type of policy is much easier for the older client to qualify for than traditional long term care insurance. Moreover, we want a plan that will help to preserve our assets for as long a possible as we get older.
The modern developments in estate planning for the older client involve asset protection, and a plan to determine how an increased need for care will be paid for over time.
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.