Luckily, surviving spouses have some leeway. It’s still tricky to transfer from spouse to spouse. But the rules for spouses are different than non-spouses.

If you have more than one child, it may seem logical to name the estate as beneficiary. This is not always a good idea. In this case, your children will be required to take all of the money out of the IRA by the end of the fifth year after your death – missing the opportunity to accumulate interest and enjoy the tax sheltering benefit.

Owners of traditional IRAs must start taking required minimum distribution (RMD) when they turn 70 ½. Non-spouse beneficiaries must start taking RMDs upon inheriting. This means you can’t leave the entire amount in the account, allowing it to draw interest. The penalty for not taking RMDs on time is steep. A full 50% penalty on the amount that should have been withdrawn for the year!

Non-Spouse IRA Planning

Unfortunately, non-spouse beneficiaries can’t roll an inherited IRA into their own IRA. A separate account Inherited IRA must be set up and titled so that it includes the decedent’s name and the name of the person inheriting an indication of the purpose of the IRA. For example, it might say, “Rhonda Smith (deceased January 7, 2015) IRA for the benefit of Roy Smith.” If the account is split among beneficiaries, the original IRA must be split into separate IRAs and each one must be titled in the same manner.

To avoid this pitfall, name your children as beneficiaries of the IRA, and not the estate. By doing so, they will have a lot more flexibility. They can take annual distributions based on their own life expectancy which allows them to leave the money in the account and defer taxes.

Roth (not traditional) IRAs can usually be withdrawn tax-free. But, they’ll be prohibited from depositing them into their own IRAs and they’ll have to pay taxes on the whole amount.

Name Your Revocable Living Trust Beneficiary of your IRA?

The question of whether to name your trust as a beneficiary of your IRA money commonly comes up.  Unsophisticated estate planning lawyers or financial advisors will recommend you not to name your revocable living trust as a beneficiary.  However, if your trust is drafted properly, with the right language inside the trust, then naming your living trust is absolutely the best choice.

Legal and Financial Planning for Howell Clients

These issues above are just some of the traps you can fall in when inheriting an IRA. When it comes to transferring IRAs, it is critical to seek the advice of a qualified, experienced estate attorney in Livingston County. They can help you decide whether or not to withdraw the funds, set up a standalone retirement plan trust or set up an Inherited IRA.

If you have questions about how to inherit an IRA or if you want to make sure the beneficiaries on your IRA are set up correctly, give our Howell estate planning law firm a call at (888) 390-4360 for assistance.

The post Common Pitfalls of Non-Spouse Inheriting IRAs | Howell Estate Attorney appeared first on Michigan Estate Planning.

Unfortunately, court appointed conservatorships sometimes do not work out in the best interests of the conservatee or his or her family, so many Livingston County estate planning lawyers are often asked to advise their clients about the best ways to avoid a conservatorship. The simple answer is that advanced planning can almost always keep a person’s affairs out of the probate court, and the following are some of the tools Livingston County estate planning attorneys use to ensure their clients have a say in who will handle their affairs for them when they are no longer able.

Power of Attorney

A Power of Attorney is a document that grants an agent authority to act on behalf of a person (the principal) in various financial matters, such as paying bills, buying and selling real estate, or even conducting business dealings. Either a Springing Power of Attorney (in effect only if the principal is incapacitated) or a Durable Power of Attorney (in effect at the time of signing) could help avoid a Conservator of the Estate being appointed by the Michigan Probate Court as an agent has already been designated to handle these financial decisions.

However, there have been some cases where the agent has been accused of mismanaging financial affairs or decides not to act as Power of Attorney, thus leading to conservatorship hearings. Michigan estate planning attorneys advise their clients to choose someone who they can trust to handle their finances fairly, and to also be sure that the person being named on the document is aware of the situation and agrees to serve in that vital role.

Living Will and Designation of Healthcare Agent

The Living Will and Designation of Healthcare Agent are documents which lay out what type of medical care a person wants and who should make medical decisions for that person in the event of incapacitation. Once again, the Health Care Agent should be someone who understands the importance of this role and can be trusted to make important medical decisions on behalf of the principal. Otherwise, the Probate Court may have to appoint a Conservator of the Person.

Designation of Conservator

Even if both the Power of Attorney and Health Care Agent documents fail in their intended purposes and a conservatorship must be put in place, there is still one document which can help to ensure that a person is placed under the care of a conservator of their own choosing instead of someone appointed by the Probate Court. The Designation of Conservator is a document in which a person can name the agents he or she would like to serve as either Conservator of the Estate, Conservator of the Person, or both. The Designation of Conservator is presented to the Probate Court during conservatorship proceedings to inform the judge that the conservatee made a decision of sound mind to appoint specific people to these conservator roles. Livingston County estate planning lawyers find that Probate Court judges often appoint those named in the Designation of Conservator, as the document allows the conservatee to make his or her wishes known even if he or she is incapacitated.

If you have any questions about how a Livingston County estate planning attorney can help avoid a conservatorship, please contact us at (888) 390-4360 to set up a consultation.

The post Livingston County Estate Planning Attorney: How to Avoid a Conservatorship appeared first on The Elder Care Firm.

Vacation homes don’t just come with the baggage you pack to spend a family holiday on the lake, in the woods, or on the coast; they also come with a lot of emotional history. By working with a Livingston County wills and trusts administration lawyer, those leaving the vacation home behind can take this history into consideration. They may be best served to really spend some time taking their heirs’ perspectives into consideration when determining how the home should be handled.

For some family members, the vacation home may be an important part of family history, full of memories and personal rites of passage. These folks might prefer that the property be safeguarded in some sort of trust or passed as-is to heirs in a will. On the other hand, there may be family members who are less emotionally attached to the home and see it as their parents’ investment in a stable financial future. These family members would be more inclined to sell the property and share the proceeds.

There are plenty of other aspects of the situation that the original owners would want to explore with a wills and trusts administration lawyer in Brighton. For example, would any potential heirs be financially able to maintain the property, pay taxes on it, etc? If not, then it may be time to consider either selling the vacation home or finding a means to fund the trust so it can meet these obligations.

Other thoughts to keep in mind:

• Do heirs live close enough to the vacation home to actually use it?
• Could you leave the vacation home to those who would most appreciate it and balance that with a different inheritance for others?
• Is there someone you could name as a trustee who could oversee the property on behalf of the trust?
• Would it be possible for some family members to buy others out of their portion of the property?
• Could the property be rented out when not in use by family members as a way to support its own upkeep?

Because there are so many variables that can come into play—money, grief, family tension, tradition, etc., etc., dealing with a vacation property during estate planning is something that is probably best done under the guidance of an experienced wills and trusts administration lawyer in Brighton, Michigan. For additional questions about estate planning in Michigan or to speak with a will or trust lawyer, contact our office at (888) 390-4360 for assistance.

The post Dealing with a Vacation Home During Wills and Trusts Administration in Livingston County appeared first on The Elder Care Firm.

Howell Elder Law Attorney

One of the more difficult topics that Howell elder law lawyers and their clients must discuss is the potential need for nursing home care. However, talking about it and knowing the options is actually one of the things that can make things easier. With the help of a good elder lawyer in Howell, seniors and their adult children can plan ahead to remove fear and uncertainty about the future.

One of the most compelling reasons for pre-planning nursing home care is the fact that the senior can be thoroughly involved in the process. Far too often, Howell elder lawyers work with families where the person in need of care has experienced physical or mental impairments that keep them from being able to make their own decisions. Whether they are incapacitated and unable to communicate or their cognitive functions have deteriorated due to dementia or other problems, the result is that they cannot make important choices or have their true wishes known.

Planning for Nursing Home Costs in Howell

An additional problem that pre-planning solves is that nursing home care is often needed on very short notice, as the result of an unexpected illness or injury. In the midst of a medical crisis, most families would prefer to already have arrangements in place so they can simply focus on treatment, recovery, or long-term care.

Understanding the importance of pre-planning is a great starting point. The next step is to familiarize yourself with some of the conversations you and your elder lawyer should have. For example, an attorney will talk clients through the alternatives to nursing home care in order to determine what is really the best option for you. Instead of a nursing home, it’s possible that you might be better served with in-home care or at an assisted-living facility.

Howell, Michigan Elder Lawyer

A Howell, Michigan elder lawyer with extensive experience in the Livingston County area will also have first-hand knowledge regarding the reputation and levels of care available from various local caregivers and institutions. The entire process of researching, selecting, applying to, and paying for nursing home care is complex. It’s not something that most people can navigate easily.

Pre-planning with an elder lawyer can remove some of the mystery and also gives you the opportunity to compare facilities and negotiate prices. Each of these things gets considerably harder when being done in a rush on the heels of an illness or accident.

Plan with the Best; Certified Elder Law Attorney

The thing to keep in mind is that a Howell, Michigan Certified Elder Law Attorney (CELA)  is able to focus on the needs of seniors. From pre-planning for nursing home care to qualifying for Medicaid to setting up a smart estate plan, the attorney has specific knowledge of the issues that directly affect our older generation and can provide solutions to problems that haven’t even arisen yet!  Many lawyers say they do estate planning and elder law in Howell, Michigan, but there is only one Certified Elder Law Attorney.  Isn’t your family worth working with the best?

The post How to Pre-plan with a Howell Elder Law Lawyer For Nursing Home Care appeared first on The Elder Care Firm.

Howell Elder Law Attorney

One of the more difficult topics that Howell elder law lawyers and their clients must discuss is the potential need for nursing home care. However, talking about it and knowing the options is actually one of the things that can make things easier. With the help of a good elder lawyer in Howell, seniors and their adult children can plan ahead to remove fear and uncertainty about the future.

One of the most compelling reasons for pre-planning nursing home care is the fact that the senior can be thoroughly involved in the process. Far too often, Howell elder lawyers work with families where the person in need of care has experienced physical or mental impairments that keep them from being able to make their own decisions. Whether they are incapacitated and unable to communicate or their cognitive functions have deteriorated due to dementia or other problems, the result is that they cannot make important choices or have their true wishes known.

Planning for Nursing Home Costs in Howell

An additional problem that pre-planning solves is that nursing home care is often needed on very short notice, as the result of an unexpected illness or injury. In the midst of a medical crisis, most families would prefer to already have arrangements in place so they can simply focus on treatment, recovery, or long-term care.

Understanding the importance of pre-planning is a great starting point. The next step is to familiarize yourself with some of the conversations you and your elder lawyer should have. For example, an attorney will talk clients through the alternatives to nursing home care in order to determine what is really the best option for you. Instead of a nursing home, it’s possible that you might be better served with in-home care or at an assisted-living facility.

Howell, Michigan Elder Lawyer

A Howell, Michigan elder lawyer with extensive experience in the Livingston County area will also have first-hand knowledge regarding the reputation and levels of care available from various local caregivers and institutions. The entire process of researching, selecting, applying to, and paying for nursing home care is complex. It’s not something that most people can navigate easily.

Pre-planning with an elder lawyer can remove some of the mystery and also gives you the opportunity to compare facilities and negotiate prices. Each of these things gets considerably harder when being done in a rush on the heels of an illness or accident.

Plan with the Best; Certified Elder Law Attorney

The thing to keep in mind is that a Howell, Michigan Certified Elder Law Attorney (CELA)  is able to focus on the needs of seniors. From pre-planning for nursing home care to qualifying for Medicaid to setting up a smart estate plan, the attorney has specific knowledge of the issues that directly affect our older generation and can provide solutions to problems that haven’t even arisen yet!  Many lawyers say they do estate planning and elder law in Howell, Michigan, but there is only one Certified Elder Law Attorney.  Isn’t your family worth working with the best?

The post How to Pre-plan with a Howell Elder Law Lawyer For Nursing Home Care appeared first on The Elder Care Firm.

This was driven home the other week, when a friend referred one of his friends to The Elder Care Firm.  We scheduled a free phone consultation and he had a sad story to tell.

His sisters had hired another elder law attorney in Brighton and had been charged over $13,000 to do Medicaid planning for their parent. Unfortunately, not much was done, the case dragged on, and the family didn’t get the results they had paid so much money for.

While this story was about a Brighton elder law attorney, it could be about any elder law attorney in Livingston County, Howell, Novi, Milford, South Lyon or surrounding communities.  Any attorney can say they do elder law, but how can you tell a “quality” elder law attorney from a run-of-the-mill general practitioner.

Not All Elder Law Attorneys are Created Equal.

Elder law attorneys can put together slick marketing and reports on elder law.  We have some nice reports.  But just because an attorney has a report on a subject, doesn’t mean they are an expert or that they even wrote the report in the first place.  Maybe that attorney is great at marketing, that doesn’t mean they are a great elder law attorney.

Is Your Attorney a Certified Elder Law Attorney?

There is really only one “gold standard” in estate planning and elder law.  That is the Certified Elder Law Attorney (CELA) designation.  The National Elder Law Foundation is the only national certifying program for elder law and special needs planning in the nation and is approved by the American Bar Association.

The National Elder Law Foundation first certified elder law attorneys in 1994, and now over 20+ years later there are over 400 CELAs across the nation.  There is only 17 in the State of Michigan and only one in Livingston County, including Brighton, Howell, Hartland and the surrounding areas.

Why Work with a Michigan Certified Elder Law Attorney (CELA)?

It’s important to work with a Certified Elder Law Attorney because when you’re working with a Michigan Certified Elder Law Attorney you know you’re working with the cream of the crop when it comes to elder law.  Think of CELAs as the top 1% of estate planning and elder law attorneys.

You have the confidence of working with an elder law attorney who has completed a riggorous full day examination and demonstrated that their law practice is actually focused on estate planning and elder law.  Once certified, your Certified Elder Law Attorney must continue to practice primarily elder law and complete continuing education specifically targeted to advanced practitioners.

Is Your Livingston County Elder Law Attorney at Thought Leader Among his Peers?

Most of the thought leaders across the nation in estate planning and elder law are Certified Elder Law Attorneys.  In my own practice, as a CELA, attorneys across the nation pay to learn from me and co-counsel with my firm.

You Deserve the Best Elder Law Attorney

It’s hard to judge quality, so let the National Elder Foundation certification process do it for you.  You deserve the best, you deserve to work with a Certified Elder Law Attorney.  To learn more about the National Elder Law Foundation or the Certified Elder Law Attorney (CELA) designation, click here nelf.org.

The post Brighton Elder Law Attorney…Gone Bad appeared first on The Elder Care Firm.

Selling the Home with VA Benefits

VA Benefit, but are concerned about what to do with the home.

The typical scenario is that mom was living on her own.  She breaks her hip.  Goes into the hospital, is discharged to a nursing home for rehab, covered by Medicare.  Then from the nursing home the family scrambles to find where she should go, because she can’t go home.

The family decides on an assisted living for mom’s long-term care.  At this point, with mom paying $3,000 per month in long-term care costs, the family struggles to find ways to pay for long-term care.  They discover the little known VA Benefit that can help pay for long-term care for a surviving spouse.  This year that benefit would be $1,149 per month.

However, the VA Benefit has an asset test and the home is an exempt asset so it doesn’t count towards the asset test.  But if mom qualifies for the VA Benefit, without any planning, then she has less than $30,000 in her name.  As the assets dwindle covering the short fall they look to sell their home.

Wouldn’t Selling the Home Disqualify Mom from her VA Benefits

Wouldn’t selling the home disqualify mom from the VA Benefit?  Not if the family takes legal steps to protect the VA Benefit.  The family, prior to sale, would consult with a VA elder law attorney who would then create a Veterans Asset Protection Trust and deed the home to the trust.  Once the home is deeded to the trust, the home could be sold, and the proceeds of the sale would be available to help pay for mom’s long-term care in her assisted living.

Another Benefit of Placing the Home in a Veterans Asset Protection Trust

Not only would mom be able to maintain her VA Benefit as a surviving spouse of a veteran, she would also be able to protect the proceeds of the home from Medicaid or Nursing Home spend-down.  The assets in a Veterans Asset Protection Trust do not count towards the Medicaid asset limit of $2,000, assuming mom makes it long enough without needing Medicaid.

This means that mom, if she needs nursing home level care can qualify for Medicaid to have Medicaid pay her base level of care, while having a pot of resources in her trust to improve her quality of life and pay for additional services.

Next Steps to Protect the Home

If you have a loved one who needs long-term care, could qualify for the VA benefit, and want to sell the home–but are afraid to because of a loss of VA Benefits, then give us a call (888) 390-4360.  The Elder Care Firm is the only law firm in Livingston County with a  VA Accredited Certified Elder Law Attorney.

The post How to Sell a House and Protect Your VA Benefits appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

Selling the Home with VA Benefits

VA Benefit, but are concerned about what to do with the home.

The typical scenario is that mom was living on her own.  She breaks her hip.  Goes into the hospital, is discharged to a nursing home for rehab, covered by Medicare.  Then from the nursing home the family scrambles to find where she should go, because she can’t go home.

The family decides on an assisted living for mom’s long-term care.  At this point, with mom paying $3,000 per month in long-term care costs, the family struggles to find ways to pay for long-term care.  They discover the little known VA Benefit that can help pay for long-term care for a surviving spouse.  This year that benefit would be $1,149 per month.

However, the VA Benefit has an asset test and the home is an exempt asset so it doesn’t count towards the asset test.  But if mom qualifies for the VA Benefit, without any planning, then she has less than $30,000 in her name.  As the assets dwindle covering the short fall they look to sell their home.

Wouldn’t Selling the Home Disqualify Mom from her VA Benefits

Wouldn’t selling the home disqualify mom from the VA Benefit?  Not if the family takes legal steps to protect the VA Benefit.  The family, prior to sale, would consult with a VA elder law attorney who would then create a Veterans Asset Protection Trust and deed the home to the trust.  Once the home is deeded to the trust, the home could be sold, and the proceeds of the sale would be available to help pay for mom’s long-term care in her assisted living.

Another Benefit of Placing the Home in a Veterans Asset Protection Trust

Not only would mom be able to maintain her VA Benefit as a surviving spouse of a veteran, she would also be able to protect the proceeds of the home from Medicaid or Nursing Home spend-down.  The assets in a Veterans Asset Protection Trust do not count towards the Medicaid asset limit of $2,000, assuming mom makes it long enough without needing Medicaid.

This means that mom, if she needs nursing home level care can qualify for Medicaid to have Medicaid pay her base level of care, while having a pot of resources in her trust to improve her quality of life and pay for additional services.

Next Steps to Protect the Home

If you have a loved one who needs long-term care, could qualify for the VA benefit, and want to sell the home–but are afraid to because of a loss of VA Benefits, then give us a call (888) 390-4360.  The Elder Care Firm is the only law firm in Livingston County with a  VA Accredited Certified Elder Law Attorney.

The post How to Sell a House and Protect Your VA Benefits appeared first on The Elder Care Firm.