The 4 Elementary Property Planning Safeguards for the Aged – New York Property Planning Lawyer Weblog – Aug 28, 2020

Elder Law Estate Planning is an area of ​​law that helps us maintain control over our lives and assets in four basic areas.

First, Elder Law plans a handicap, including designating people to make decisions for us when we become incapacitated. You choose the people to act on your behalf and avoid the government taking over your life in a “guardianship” process. Wills do not provide obstruction because they are plans for death. Living trusts, on the other hand, appoint trustees who manage matters of trust in the event of incapacity for work. Other documents required for disability planning are a power of attorney that names people to make financial and legal decisions, a health care proxy that names people who make medical decisions, and a will that expresses end-of-life decisions such as resuscitation.

Second, another protection of the earlier right is asset protection planning from the cost of long-term care. Plan A to protect assets from care and nursing home costs involves taking out care insurance. If you don’t have long-term care insurance, Plan B is the Medicaid Asset Protection Trust (MAPT), which protects the trust assets from nursing home costs paid by Medicaid after the assets have been in the trust for five years. The MAPT protects assets from home care costs paid by Medicaid after the assets have been in the trust for two and a half years.

Third, estate planning is death planning, which is the transfer of assets to our beneficiaries with the lowest legal costs, legal costs, taxes, and the savings in time and money in handling the estate. So often, signing a will leads to a feeling of satisfaction that the estate plan is solid and that matters are in order. Unfortunately, it is not widely known that wills are used in probate courts. Trusts avoid probate proceedings, save time and money handling the estate, and avoid costly, frustrating litigation when a disgruntled beneficiary “denies will”. If you are planning to disinherit a child, trust is much more secure than will that your wishes will be obeyed.

Fourth, another protection of estate planning is inheritance planning to preserve the inheritance in the family and protect the inheritance from divorces and child creditors. You can create an inheritance trust for each child. When the children receive the inheritance, they can spend it. If the child dies, the inheritance goes to the child’s children, your grandchildren, and not to your child’s surviving spouse, who could remarry and use your money with the new spouse. The Inheritance Trust also protects the inheritance from divorce and creditors of the child.

Trusts are no longer just for the super rich. In 1991, the American Association of Retired Persons (AARP) recommended that most families use trusts and no wills to save time, money and complications in settling the estate. The trend for more middle class families to use living trusts instead of wills was born, and what is known as the “living trust revolution” was born. The main advantage of trusts over will is increased scrutiny over the unfortunate circumstances of disability and over the inevitable event of our demise.