Planning for long term care

Planning for longterm care
As the baby boomer generation gets older, there is going to be an increasing need for attorneys that specifically work in the area of estate planning for long term care. This is an area that i have become familiar with and although I wouldn't consider myself quite an expert yet, that is definitely what I am working towards.

I am competent to prepare estate plans for couples with less than 2 million dollars in assets. For clients with a net worth of over 2 million in assets, I work with another attorney who solely focuses in the area of "high end" estate planning.

If you or a loved one is getting to the age of 55 or older, it is time to start seriously considering an exit strategy. There are several questions you need to ask yourself:

1) Are you prepared in the event you need long term care?

2) Are you prepared in the event your spouse needs long term care? (Keeping in mind that medical facilities and nursing homes can come after you for the medical bills of your spouse- see blog posting from September 2, 2011.)

3) Do you have a succession plan for your business?

4) Will members of your family have the ability to pay off the family owned business if something were to happen to you?

5) If you dont have a spouse, children, parents, siblings, or grandparents that are still alive, do you have a will in place that specifies who shall be beneficiares of your estate?

6) Even if you do have the above family members, do you wish your estate to pass in a way different from the laws of intestacy? If so, do you have a will?

If you are unsure about the answers to any of these questions, or if you answered "no" to any of the above questions, I would be happy to discuss your specific needs in a free consultation.

Published with Blogger-droid v1.7.4

Probate: "Can there be more than one executor of an estate?"

Probate: "What does it mean when someone dies intestate?"

Probate: "What does it mean when someone dies testate?"

Probate: "Do I need the original will?"

Probate: "What are the duties of an Executor?"

Probate: "Do I need to insure estate assets?"

Probate: "How can I find out if there was a will?"

Probate: "How can someone see the will of a person who has died?"

Probate: "If a person lives out of state, can they still be names as the executor of an estate?"

Debt Collection: Being held liable for another's debt

Debt Collection: Being held liable for another's debt

I just found out that I have been giving out incorrect (or at least incomplete) advice regarding debt within a marriage, so I would like to set the record straight.  I used to tell people that they cannot be held liable for debts of their spouse as long as the spouse acquired that debt in their sole name.  This advice was usually given in an estate planning context- which is why this advice will hold true 95% of the time.  In law, as in life, there is always the other 5%.  As a whole, the statement that "one spouse cannot be held liable for the other's debt" is technically inaccurrate.

A spouse can be held liable for the other's medical bills if the following factors apply:

1) the patient spouse is unable to pay

2) the non-patient spouse is able to pay

If the above factors are shown, the non-patient spouse may be held liable for the patient spouse's medical bills unless the non patient spouse has been abandoned by the other spouse without cause.

As I stated earlier, I usually get asked about this subject in an estate planning context.  Once one spouse passes away,  it is rare for the creditor to collect and here is why:  In Ohio, the creditor's claim must be made against the decedent's estate within 6 months of the death.  If the creditor does not assert its claim within 6 months, the creditor's claim is barred against the estate.  Once the claim is barred against the estate, the above rule applies.

If I am the attorney with a case like this, I would first claim that the non-patient spouse cannot pay, especially now that the spouse has to pay for the cost of burying the other, but I would also claim that the patient spouse abandoned the non-patient spouse without cause (by dying).  I am not sure if this case has been litigated yet, but if not, it will be eventually. 

Even with the above caviat, it is safe to tell clients that as a general rule, they will not be held liable for the debt's of their spouse.  It is always important to seek the advice of an attorney if you find yourself in a situation where people are claiming that you are liable for another's debt.  Creditors (and others) like to tell family members that they will be held liable in an effort to collect.  Just because a creditor tells you this, it does not make it true.  Always seek the advice of a local attorney to address your specific situation.

Probate: "If I am named the executor of a will, do I have to serve?"