Comparing Elder Law and Estate Planning

Comparing elder law and estate planning - what’s the difference? Estate planning and elder law play different roles, while sharing some common ground. Despite these distinctions, both are crucial for safeguarding both you and your loved ones. While they often intersect, there are some nuances to consider.

Elder law and estate planning may have distinct purposes, but they share equal significance for those who wish to achieve peace of mind through efficient legal preparation. Notably, elder law provides assistance during a person's lifetime, while estate planning takes effect after death by using pre-existing wills, trusts, and other legal structures. Despite the divide, both serve as valuable tools for individuals seeking to navigate the complexities of legal preparation.

Many law groups provide both elder law and estate planning services. This overlap of law practice specialties can create confusion, particularly because elder law attorneys also participate in estate planning (elder law estate planning). However, not all estate planning attorneys take part in aspects of elder law.

Elder Law Focuses on Seniors

The concern of elder law is to ensure older adults can live their most healthy, protected, and financially secure lifestyles as they age. Planning may include anticipating future medical needs such as long-term care, qualifying for Medicaid without depleting all assets, creating a living will, and legally naming individuals to guide your medical decision-making if you become incapacitated.

Elder law extends its services beyond the elderly population and addresses the concerns of disabled individuals and war veterans. It also lends its support by aiding in cases of conservatorship or guardianship as required.

Areas of elder law specialization include:

·         Asset protection

·         Long-term care planning

·         Elder law trust administration

·         Decision making for an incapacitated person

·         Estate planning and settlement

·         Disability and special needs planning

·         Conservatorship or guardianship

·         Elder abuse

Elder Law May Involve Many Family Members or Caretakers

In the field of elder law, the involvement of close family and friends is a common strategy for attorneys. Ensuring the well-being of an elderly loved one is typically a collaborative effort spanning multiple generations and encompassing a range of concerns, from medical and financial to long-term healthcare and emotional support. Day-to-day needs such as transportation, grocery shopping, and attending medical appointments also factor into creating a safe and fulfilling aging experience. Taken together, these elements contribute to a holistic and secure environment for senior living.

Elder law can also address veteran benefits, family home protection, special needs loved ones, estate administration, probate, and long-term nursing home care claims.

Looking at Law from a Senior’s Perspective

Comprehensively, elder law focuses on legal issues, complex regulations, and laws that vary by state that impact seniors. An elder law attorney has a unique understanding of the personal impacts aging brings and how it can physically, socially, and financially affect your loved ones, making them vulnerable. They are familiar with the various circumstances and decisions confronting older loved ones. The approach is holistic.

Throughout their lives, seniors are supported in managing legal affairs and accessing crucial resources such as social workers, healthcare providers, and psychologists. Trusted family members are tasked with assisting seniors in arranging long-term care and taking care of their financial obligations.

In truth, elder law is essential to all seniors, not just those with complex life situations, and will require refinement of goals as you age. Whether you want to protect yourself and your assets, address your special needs, a second marriage, high-value estate, or adult children who are financially irresponsible, an elder law attorney can help you manage the processes within the confines of the laws in your state.

As you grow older, elder law can shield you from the potential risks and vulnerabilities that may arise during your sunset years.

Estate Planning Basics

Conversely, estate planning concerns asset protection, retirement planning, business succession planning, and distribution of estate assets after your death. Estate planning also concerns minimizing taxes after your die, identifying a personal representative to carry out your estate plan, and navigating legal tasks. Your estate plan also seeks to simplify probate requirements, name guardians for minor children, and prepare long-term assistance for loved ones with special needs.

Essential aspects of a comprehensive estate plan include:

·         Your will and perhaps a pour-over will

·         A health care proxy

·         A power of attorney

·         Your living will

·         A trust – revocable living trust or irrevocable

·         Estate tax returns

·         Documents for transfer of assets

When it comes to planning your estate, your attorney can provide you with valuable assistance in several important areas. They can advise you on choosing representatives and trustees, selecting a suitable guardian for your minor children, ensuring that your IRA, 401(k) and life insurance beneficiaries are properly identified, devising a solid succession plan for your business, helping with the distribution of personal property, and even recommending charitable organizations that may benefit from your contributions.

Estate Planning Requires Periodic Review

Regularly reviewing your estate plan is crucial since it's not a task that's done just once. Life events such as purchasing stocks, selling or buying a property, going through a divorce or getting remarried, experiencing the loss of a loved one or gaining a new family member, like a child or grandchild, can all trigger changes to your estate plan. Thus, it's essential to keep revisiting it.

If you do not develop a complete plan to manage your estate assets after your die, the probate court will take over the process of your property distribution. State intestacy laws will apply in the absence of a will to identify inheritors. If you skip estate planning, you will forgo your opportunity to provide for family and loved ones as intended.

Estate planning empowers you to determine the destination of your wealth, nominate guardians for your young children, and specify the treatment you desire in case of an incapacitating illness through a living will. It also affords your loved ones the ability to bypass the cumbersome and costly probate procedure.

As you grow older, discuss with your loved ones what you require. Locate an estate planning attorney who is knowledgeable about eldercare planning in your area. It's important to find someone who is a good match and establish a secure and comfortable rapport with them, so that you can create a personalized plan for your remaining years according to your needs and wishes.

Need Help Navigating Elder Law?

If you would like to learn more about elder law or see if we would be a good fit for one another, please reach out to me. I would love to sit down with you.