four Causes You Want a Customized Medicaid Planning Monetary Power Of Attorney | Rudder items

We all want to save time and money whenever possible. When asked whether the Wisconsin Standard Financial Power of Attorney is sufficient, I understand the motivation to get an important document up and running quickly and economically. The state form is legally valid and gives your agent certain powers to manage your finances.

However, when making complex financial decisions, such as those we often make when planning Medicaid and long-term care, the following four factors should be considered before deciding on the standard form.

  • Limited ability. When conducting Medicaid planning, there is often a need to give gifts in order to achieve specific goals. The standard power of attorney limits your agent’s ability to give gifts by requiring that gifts be below the annual gift tax exclusion (currently $ 15,000). While this restriction protects you from excessive gifting from your agent, it can limit your ability to participate in Medicaid planning. When planning Medicaid, it is often desirable to give gifts in excess of the $ 15,000 exclusion. A tailored finance power of attorney can offer both flexibility and protection. This may limit your agent’s ability to give gifts under normal circumstances and provide an exemption that allows your agent to give larger gifts under certain circumstances, such as giving gifts. B. When planning Medicaid.
  • No way to create trust relationships. The standard financial power of attorney allows your agent to deal with trusts that have already been created, but it does not allow your agent to create new trusts for your benefit or protection. However, planning Medicaid may require the use of certain trust relationships to protect your assets while gaining authority on Medicaid. A custom finance power of attorney can allow your agent to create irrevocable trusts, special needs trusts, or pooled trust accounts (such as Wispact) for you. This ability to build trust for your agent can be vital, especially when dealing with special accounts needs planning. If the power of attorney does not allow your agent to establish certain trust relationships, a guardian must be appointed to carry out this task.
  • No ability to classify property. For a married couple in Wisconsin, the ability to classify property as individual or marital is a key component of Medicaid planning. The standard financial authorization form does not allow your representative to enter into any type of prenuptial agreement. To properly plan Medicaid, a couple should have the ability to classify or reclassify property. Even some custom powers of attorney limit the types of matrimonial property contracts that can be entered into. You should therefore take an experienced senior bar exam or draft the power of attorney to ensure that your agent is given the necessary powers.
  • No possibility to change beneficiaries. Switching beneficiaries to life insurance, annuity, or retirement benefits is usually part of the Medicaid planning process. The standard financial power of attorney allows your agent to do many things related to these types of assets, but it does not allow your agent to switch beneficiaries. There are some assets that the state of Wisconsin must be listed as a beneficiary in order to qualify for Medicaid. If you are unable to make this change, you may not be able to get any benefits that you may need. A custom power of attorney would empower your agent to make the necessary changes.

Sometimes life can be more complicated than we prefer. While there is a time to simplify things and try to be frugal, sometimes it is preferable to pay for professional services to ensure that your agent can do whatever is necessary to ensure you get the care you need need. Before downloading the standard form and giving it a day of giving it a day, I recommend meeting with a qualified senior law attorney to discuss your own financial power of attorney.

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