Our longer life expectancy is a mixed blessing. As the average age of our population increases, so do the incidents of stroke, Alzheimer’s, Parkinson’s and other catastrophic illnesses. These terrible diseases take their toll on the victim as well as the family members who must make important decisions regarding the care and welfare of the ill person. In addition, due to death or illness of a parent or spouse, many of our clients are thrown unwillingly into the position of Trustee or Executor. I have seen many underestimate the job, and make costly mistakes involving deeds, taxes, and other issues, only to seek legal help after these mistakes were made. I have seen adult children embroiled in bitter feuds and litigation, focusing on their sibling’s improper handling of the parent’s care, or after-death matters. Here are a few of the basic things you should know to help your family in troubled times:
• If you are over 18 years of age, you must have an Advance Health Care Directive.
• Is there a comprehensive Durable Power of Attorney document? A well-written and complete power of attorney is critical, and should contain language regarding Medi-Cal planning, long-term care and asset protection.
• Is there a Trust? If the family member is incapacitated, what does the Trust language say about the legal power provided to the successor trustee?
• If there is a Trust, are the assets properly “funded?” Is the deed titled correctly? If not, expect a probate proceeding. Are the brokerage accounts and bank accounts titled in the trust? Are the beneficiary designations correct on the IRA’s, 401(k) plans, life insurance and annuities?
• Remember, Medicare only pays for a maximum of 100 days in a skilled nursing facility. There is a co-pay after day 20. Skilled nursing facilities average from $4,000 per month to $16,000 per month for more advanced care. Most families are caught unprepared for this financial burden when a parent or spouse is suddenly the victim of a stroke or other catastrophic event. Hopefully, the parent executed a proper durable power of attorney with complete powers for Medi-Cal and public benefit planning.
• If there is a death, do you know what your legal duties are as Trustee? No matter how small the estate is it must be administered properly. Proper legal and tax advice is critical.
As we plan for the upcoming holidays, we should also plan to talk with our loved ones about these important issues.
For an appointment, call the Law Office of Jane M. McNamara at 661-287-3260.