Massachusetts Estate Planning & Asset Protection Blog

A Married Couple's Asset Protection Journey

Posted by Dennis Sullivan & Associates on Thu, Aug 30, 2018

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At Dennis Sullivan & Associates we were fortunate enough to be able to help a married couple, both teachers, plan for their retirement and estate planning. After being referred to us by an independent financial adviser toward the end of their careers we advised that they may want to attend one of our Free Discovery Workshops on Estate, Trusts, and Asset Protection Planning.

After being impressed with what they learned at the Workshop they scheduled their complimentary meeting to have us review their existing wills, trusts, disability, and healthcare documents. They made it clear that they had long term care insurance that would cover only $100 per day for two years (At the time cost of care at a nursing home was roughly $400 per day). Therefore, they would have had to pay $300 per day had a situation arose in the near term. $300 x 365 = $109,500 annually for two years, a total of $219,000. After the first two years of coverage lapsed, they would be responsible for the entirety of the cost of care payments. If nursing home costs did not rise, at $400 they would be looking at a nursing home bill of $146,000 annually. For comparison, the rates today are in the neighborhood of $18,000 per month and are steadily rising.

Because of the high cost of in home care and a desire to maintain control of their assets and healthcare decisions they had us create for them an updated Revocable Living Trust as well as a new protective trust for their home and long term savings. Having a solid asset protection plan allowed them to decide to avoid paying over $15,000 every year to expand their long term care coverage from $100 to $250 a day, which was short of the $400 a day, cost at the time. They were pleased that this estate plan would protect their home, spouse, and life savings!

Over a decade later they remain clients and members of The Lifetime Protection Program as we help them strategically plan how their trusts and other life and death documents should function to preserve their capital.

As members of the Lifetime Protection Program, this retired couple enjoy many benefits. First, we helped them implement the proper healthcare documents for their children and grandchildren, over the age of 18, to ensure that in the case of an emergency; medical professionals would be able to disclose information to family members. This is a little known secret that you do not want to find out the hard way. [Please see our upcoming workshop schedule to discover more]

With healthcare documents in place, we were able to focus our attention on asset preservation and protection. As with most people that we help they were interested in ways to provide for the surviving spouse and ultimately, maximize the inheritances of their family members. Putting the deed to their home into their protective trust ensured that when their children inherited the property they would receive the step-up in basis as well as protecting the home against nursing home costs down the road. This alone will save their children from paying any long term capital gains if they sell the home at market value. Various gifting strategies, educational savings plans including a 529 account, were additional steps taken to reduce their overall estate tax levied by the Commonwealth of Massachusetts. An important step taken was to update their Durable Power of Attorney forms to provide maximum security in the event that either one of them lost capacity during their lifetime, and there were assets that were NOT included in their trusts. To discover more about trusts, life and death planning, as well our unique process and services visit DSullivan.com and sign-up for a free discovery session. You and your family will be glad you did for generations to come. This planning could save you and your family countless nightmares, heartache, and a significant amount of money. Click here to attend an upcoming workshop today or call 1-800-964-4295 to register.

Tags: grandchildren, care costs, step up basis, Inheritance, surviving spouse, Wills, irrevocable trust, trust, transferring, donations, charitable

Why Your Children and Grandchildren Should Have Healthcare Documents in Place

Posted by Dennis Sullivan & Associates on Fri, Aug 17, 2018

 

family

First, you may ask, what are the Healthcare Documents that you recommend?

At Dennis Sullivan & Associates we recommend to everyone over the age of 18 (clients, friends, and family members) have appointed people to make health care decisions, and to receive health care information.

This is especially crucial for those who have college students and young adults in their lives. Young adult children and grandchildren, often times headed away to college, need health care decision making documents in place. These documents include an Authorization for Release of Protected Health Information forms in place (HIPAA), and Living Will and Health Care Proxy.

An 18 Year Old Is An Adult!

Once you turn 18, you are legally an adult, and no one has any automatic right to any medical information. Medical professionals are obliged to withhold any and all medical information of yours from anyone who may be requesting information, unless you specifically grant them authority to release the information. Sometimes, young adults will let the doctor know that it is okay to share information with their parents or close relatives, but it may not come up when the young adult sees the doctor. If an 18 year old forgets or is unable to give their consent, medical professionals, by law, are required to withhold the information.

HIPAA

In the unfortunate event where a young adult is unable to give consent due to being unconscious or in a coma the only way for parents to gain this information is if their child has signed off on the Authorization for Release of Protected Health Information form (HIPAA). This allows a parent to get information from a college health center, and speak with the care team.

Health Care Proxy and Living Will

Terry Schiavo is the reason why the importance of a Living Will and Health Care Proxy gained national attention. A Living Will addresses end of life decisions including the permission/request to discontinue life support after an extended period if a person is in a persistent vegetative state. Terry Schiavo did not have a Living Will in place, and thus a decade long legal battle ensued between her husband and parents.

 

A Health Care Proxy designates an Agent that can make Health Care decisions on your behalf if you are unable to make the decisions for yourself. Examples of this could include being unconscious, lacking capacity, or being placed in a medically induced coma. A Health Care Proxy/Living Will and is essential because it names agents to make health care decisions if you’re unable to make decisions on your own.

The Health Care Proxy and Living Will give authority to a person (or persons) of your choice to make decisions if you are unable to.

In short, a HIPAA document will allow for those of your choice to be privy to medical records and a Living Will and Health Care Proxy will appoint an agent to be your medical decision maker in the event that you are unable to do so.

If you would like to implement these essential documents, call our office to schedule a consultation. Many of the estate plans we review are death plans. They are designed to solve situations that occur at death, avoiding probate and distributing the estate. While all these objectives are important, there is much more that is needed. One of the most important parts of planning focuses on how documents work while you and your family are living. To learn more about necessary elements of an estate plan, attend a complimentary workshop.

Tags: children, health, Health Care, HIPAA, health care proxy, grandchildren, power of attorney, Skilled Care

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