When Should You "Service" Your Estate Plan?

If you own a car, then you know that periodically it needs to be serviced. After a certain number of miles or time period you know you need to get an oil change, rotate the tires, check the fluids, etc. in order for your car to function properly. If you own a new car, it probably came with a recommended service schedule and the car has an irritating light that turns on as a reminder that service is due (or maybe even overdue). You are aware that if you keep driving your car without servicing it, chances are it’s going to have problems and will not work properly.

Like your car, your estate plan needs “servicing” in order for it to function properly when you need it. Your estate plan is a snap shot of you, your family, your assets, and laws that were in effect at the time you created your estate plan. The only constant in this life is change. Everything changes over time and so should your estate plan. It’s unreasonable to think that the estate plan you created when you were newlyweds or new parents, will be effective now that your children are adults, or you are retired surrounded by grandchildren. Over the years, your estate plan will need servicing; it will need periodic check-ups, tweaking, and possibly even a replacement.

So how do you know when your estate plan needs servicing? Just like your car has certain mileage checkpoints, your estate plan should have event checkpoints. Any change can prompt a check-up on your estate plan; for instance changes in your health, marriage status, financial security, employment, retirement, changes in laws, etc. It is wise to review your estate plan on a yearly basis. A good reminder might be to review your estate plan around annual events, i.e. the New Year, birthdays, anniversaries, holidays, etc. If any changes have taken place in your life, you should contact your estate planning attorney for a check-up. Some changes to your estate plan may simply require adding an amendment to your will, known as a codicil or an amendment to your trust. Adding yearly checkpoints to review your estate plan, will assure you that it will run smoothly when you need it most.

How You Qualify for VA Benefits May Have a Negative Impact on Your Qualification for Medicaid Benefits

My clients hear it time & time again from VA Agencies: "you don't need an attorney to qualify for VA Aid & Attendance benefits; someone from our office can help you complete the application." My response is yes, they will help you complete the application, however they will not provide you with any guidance on what action you need to take in order to qualify for these benefits. On the other hand, an elder law attorney not only advocates to qualify you for VA Benefits; most attorneys will be vigilant that the planning used to qualify you for VA Benefits does not disqualify you from Medicaid, if you should need it in the future.

It's common for third parties to suggest gifting your money to adult children in order to meet VA asset limitations. Unfortunately, if within the next five years the veteran should require additional services in the assisted living facility or long-term custodial care in a nursing home, he or she discovers that THE RULES FOR OBTAINING MEDICAID BENEFITS ARE VERY DIFFERENT FROM THE RULES FOR OBTAINING VA BENEFITS. It is wise to consult with an elder law attorney to avoid making decisions that may be detrimental to you and your family.

Veteran's Aid and Attendance

Did you know that there are benefits available for long term care for veterans? The program is called "Aid and Attendance" and it is available to a veteran or surviving spouse of a veteran who requires asssistance in their daily living. The veteran or surviving spouse must be disabled but the disability does not have to related to service in the war. There are some income and asset limits, but unlike Medicaid planning, there is no penalty for transferring assets. For more information contact Law Offices of Minerva Vazquez Bailey at (954) 342-4077.