Life is an unpredictable journey, filled with twists and turns when we least expect them. Amidst this uncertainty, one undeniable truth emerges: the importance of meticulous planning, especially concerning our health and well-being. Therefore, one indispensable tool for estate planning is the Living Will, otherwise known as an Advanced Care Directive.
In estate planning, two standard legal documents frequently discussed are Wills and Trusts. Both serve as crucial tools for distributing assets and ensuring the well-being of your loved ones. However, they both have distinct characteristics and functions. Below, we will explore the key differences between Wills and Trusts and how they impact your family’s future.
Nursing homes are expensive and can often drain your retirement savings. However, this does not have to be the case. Protecting your assets with irrevocable Trusts can shield you and your family from the high costs of nursing home care.
TennCare and Medicaid Annuties are treated in one of two ways: income or resource. In a previous blog post, RETIREMENT ACCOUNTS OF THE COMMUNITY SPOUSE, we explained how resources are either considered countable or exempt by TennCare/Medicaid. A TennCare/Medicaid applicant can transform an annuity or retirement account from a countable resource into an exempt one. However, the process to do this is both time and rule sensitive.
When a married couple considers paying for long-term care with TennCare/Medicaid, they are split into two categories: Institutionalized Spouse (IS) and Community Spouse (CS). It is essential to understand the differences between the two when Spousal Planning for TennCare/Medicaid. Specifically, the IS is applying for TennCare/Medicaid benefits while the CS is not. Under the same application, Medicaid always determines whether spousal resources are countable or exempt. As you would expect, countable resources can prevent eligibility, but exempt resources do not. Traditionally, retirement accounts, such as IRAs and 401Ks, for the IS are always countable resources for qualification purposes. On the flip side, the CS’s retirement accounts did not count if the CS was taking monthly payments equal to a required minimum distribution (RMD).
People often ask, “Do I need a Will?” If you do not have one, you will not be in control of what happens to your assets upon your passing, and you could leave your family in a challenging mess. Delaying these thoughts is human. You may feel uncomfortable about having a Will drafted because thinking about your death may feel scary. Also, you may feel overwhelmed about making so many decisions at once. And, as attorneys, we understand. This is why we are here to help make drafting a Will more manageable.
Having a Will drawn up allows you to control who will receive your assets upon your passing. If you do not have a Will when you die, the law will determine who receives your property. The Will also allows you to name who will be in charge of administering your Estate upon your passing. This will include paying your debts, collecting any assets owed to you, and distributing any of your property. If you do not have a Will, the Court will decide who will administer your Estate without your input. Also, in a Will, you can name who you want to be the Guardian of your minor children. And all of these are important things to have outlined.
Are you a step-parent who helps your spouse, the biological parent, raise your step-child? And, do you wish to formalize your relationship with this child through step-child adoption? Taking this step means the child will legally be your child. Here are a few things to consider before doing so.
For a step-parent to adopt a child, the other biological parent’s parental rights will need to terminate. In some cases, the biological parent may consent and allow the adoption. However, if consent is denied, termination of parental rights must be legally proven. Therefore, understanding Tennessee Law to identify the appropriate legal grounds is essential to step-child adoption. Once the termination takes place, the step-parent adoption can proceed.
Are you getting married and want to protect your assets? Then, you should be considering a pre-nuptial agreement. This is a negotiated document signed by a couple before their marriage. The document will typically lay out ownership of property, money, and assets. Additionally, the document will be binding in Court provided the document is entered into freely, knowledgeably, and in good faith. All assets of both parties must be fully disclosed, or the document will not be considered enforceable. And, each person must have an attorney to ensure each one has full knowledge of what is going on. As well as what is being signed. This helps ensure the agreement is enforceable.
A Power of Attorney (POA) is a legal document giving certain powers to someone you appoint to act on your behalf. This document will specifically lay out the powers given to the person you appoint. Before signing a Power of Attorney, you must know there are two types of power of attorney you can sign. A Healthcare Power of Attorney allows you to appoint someone to make healthcare decisions for you. A Durable Power of Attorney will appoint someone to handle everything else for you, such as making deposits, paying bills, filling out insurance paperwork, etc. Signing a POA ensures that someone you trust will manage your financial affairs and make healthcare decisions if you cannot do so for yourself. Preparing this legal document is vital if you foresee health problems affecting your ability to handle matters for yourself in the future.
Although only one spouse’s name appears on the Deed to the property it does not mean that spouse is the sole owner. If acquired during the marriage, each spouse has an ownership right in the property. Regardless of how the property is titled. This means a spouse is still entitled to their equitable share of the property in a divorce proceeding. A spouse can also have a marital interest in any property acquired before the marriage. If the property was acquired pre-marriage and a spouse’s name is not on the property, that spouse may still have an interest In its appreciation. This appreciation would most likely be evaluated since the inception of the marriage. If a spouse has contributed to the property in any way, they can potentially claim an interest in it. It is essential to understand what your rights are regarding property titles and divorce.