As an attorney who designs estate plans, handles after-death issues and counsels clients on disability and long term care issues, I see hard working and honest people in my office shocked when they discover their previously prepared estate planning documents are poorly drafted. The documents have not been prepared to protect them from financial ruin should they have the misfortune of suffering a stroke or a major illness such as Alzheimer’s or some other catastrophic disease. They were not advised about capital gains issues, estate administration, or estate tax planning. They were not advised of the importance of “funding” their trust. They did not receive customized legal documents for their particular situation. They did receive “push button, one-size fits all” boilerplate documents, which creates havoc when the need for the documents arises in a critical situation.
I see it all the time and it frustrates me terribly. The inferior quality of some of these legal documents makes matters worse in an emergency situation.
• Dad has a stroke and requires skilled nursing care. Medi-Cal long-term care benefits and asset protection are needed. Loved ones learn that the Power of Attorney does not provide the powers needed for this situation.
• Mom is hospitalized and a loved one needs to make immediate and critical medical decisions. The Advance Healthcare Directive does not provide the powers needed to make these decisions.
• Parents die and their estate must go through probate because the trust was never funded. Heirs pay excessive court costs and taxes due to the poor or non-existent advice previously provided to them. Adults and children with disabilities lose their public benefits because the parents did not set up a proper special needs trust. It goes on and on.
It is so much easier to have a proper and customized estate plan designed for you by a qualified lawyer. It is difficult, expensive and sometimes impossible to fix the problems caused by improperly and poorly written documents. You must get proper advice because there is a lot at stake. Ask questions about wills and trusts, funding your trust, probate, and estate administration. Have you inquired about trusts for your kids so they don’t blow their inheritance? What about long-term care benefits such as Medicare, SSI or Medi-Cal? Do you have a disabled family member? What about capital gains taxes, and estate tax issues? All these issues and much more go into designing a “comprehensive estate plan.” It is up to you to obtain advice from an experienced and qualified lawyer.
For more information, please call the Law Office of Jane M. McNamara at 661-287-3260.