Worst Mistakes of
Medicaid and Estate Planning
By
The Law Offices of Jerold E. Rothkoff
SOME MISTAKES OF
MEDICAID AND ESTATE PLANNING COMMITTED BY SENIORS ARE:
- Failure to obtain early competent
advice and sign legal documents prepared to fit your family’s needs.
Family agreements are preferred to Probate administration.
- Listening to the layman myths of
Medicaid Planning, which are usually erroneous and could cost your family
its home and assets.
- Believing that a Will will avoid
probate. In fact, a Will requires probate and the delays and expense that
go with it.
- Naming one child as a co-owner of
real estate or bank accounts, and believing that the Will (which requires
equal distribution between all children) controls the distribution. The
Senior’s co-owner or beneficiary on the account or deed controls.
- Failure to use a Quitclaim Deed
in the proper circumstance - such Deed is inexpensive and if done
correctly could avoid Medicaid claims and Probate administration.
- Failure to have Powers of Attorney
in place as part of your Estate Plan. The financial and/or medical Power
of Attorney will assist you in Medicaid Planning.
·
Using form wills bought at a store, without consulting an Elder
Law lawyer. Trouble abounds in these documents. It is penny-wise and
pound-foolish.
- Failure to obtain a Revocable
Living Trust (RLT), in order to avoid probate and manage your affairs if
you become incapacitated. Husband and wife can protect each other, and
provide for children.
- Failure to use Trusts, in order
to avoid excessive Federal and State Taxation of their estates.
- Failure to use the tools of
Medicaid Planning while you are in a pre-crisis stage.