Wills and Estate Planning: Forman Law Group, P.A.

— Fred J. Forman
Forman Law Group, P.A.

Q. What Medicaid planning tools need to be looked at before using an irrevocable trust?

A. Tools may include purchasing long term care insurance, irrevocably prepaying funerals, paying off mortgages on principal residences, making major repairs to the principal residence, purchasing a larger or more accessible home for the community spouse, transferring the home to a minor or disabled or blind or caregiver child, renting out a home to qualify for a lower reimbursement rate, purchasing exempt items (such as clothing, furnishings and a new vehicle), investing money in a child’s home and living with that child for 2 years, purchasing a single pay immediate annuity (SPIA), establishing a family limited partnership/limited liability company, etc. This is often not enough, however, to bring the applicant within the asset limit required to qualify for Medicaid.

Q. What should a good estate plan consist of?

A. As an attorney, I am often asked what a good, thorough and comprehensive estate plan should include. It should include the following:

Having guardians in place for your minor children or disabled adult children;

Making sure that if you become mentally disabled and cannot make decisions for yourself, the people you select can legally make medical, end of life and financial decisions on your behalf;

Making sure that when you pass, your estate can avoid the expense, delay and hassle of probate while keeping the identity of your assets private (and while protecting inheritances against lawsuits, divorces, etc.);

Eliminating or reducing estate taxes;

Planning for the potential costs of long-term care;

Planning for the succession of your business, if applicable; and

Protecting yourself from losing assets while you are living/lifetime liability protection.