What is Life Care Planning?
Estate Planning + Elder Law Equals= Life Care Planning
Elder law and estate planning are two concepts that are commonly confused. Nevertheless, these areas of law differ in important ways. Although there may be some overlap between them, it is essential to understand and utilize strategies from both fields to ensure a prosperous aging process and safeguard a family's heritage. So, dive in and learn what is life care planning and why you need it.
Estate Planning Concerns
Estate planning lets families:
Name guardians for minor children
Manage and protect valuable assets
Distribute property according to specific instructions after you die
Minimize potential estate taxes
Simplify or avoid probate
Distribute property to beneficiaries
Create a business succession plan
When we are young, we tend to focus on asset protection in our earlier years. We are building our legacy.
Elder Law Concerns
Elder law primarily deals with later stages in life. Elder law focuses on an aging individual’s needs while they are still alive, like:
Retirement goals
Paying for long-term care
Protecting the family if they become incapacitated due to an accident, severe illness, or reduced cognitive function
Accessing proper health care without depleting a senior’s resources
Protecting the legal rights of aging adults
Address the needs of persons with disabilities and war veterans, including their spouses, children, and caretakers
Seniors worry about protecting their legacy from medical costs, fraud, or abuse. They want to keep the family home for a spouse or the next generation.
What Is Estate Planning?
Estate planning is for adults of all ages. An estate plan determines what will happen to assets upon death. An estate planning attorney can use wills and trusts to ensure your wishes are followed. If there are minor children, a will identifies a guardian to guide and protect them through life until they become adults. Naming a guardian for minors is a crucial aspect of a will.
One way to prevent an estate from going through probate is to work with an estate planning attorney. They have the ability to arrange assets and property in a manner that bypasses probate. The implementation of revocable and irrevocable trusts can also minimize the amount of taxes owed, consequently allowing heirs to inherit more. Because the probate process can be an extended and costly one, it's important to avoid unnecessary expenses and complications by keeping as much of your assets out of probate as possible.
Heirs can inherit certain assets without the need for a will or trust by means of beneficiary designations. These designations pertain to various account types, including IRAs, insurance plans, and 401(k)s. It is crucial to review your current beneficiaries during significant life events, such as divorce or death, and make updates accordingly. Failure to do so could result in a court making decisions on the allocation of your funds if your beneficiaries are no longer living or have changed.
If you have a small business, estate planning is also relevant to the business’s future success. To ensure a smooth transition of ownership, a succession plan can be created to be used in the event that you are no longer able to run the business. If there is a family member or future owner who is interested in taking over, an estate planning attorney can help structure an inheritance using life insurance policies to balance inheritable assets among interested parties.
What is Elder Law?
Elder law centers on the future of seniors and their medical well-being. It considers factors such as long-term care to facilitate a comfortable and financially stable life for the elderly. The goal is to develop a plan to pay for future care that meets their comfort level while preserving as many assets as possible.
When it comes to obtaining government benefits like Medicaid without losing all of your assets, an experienced lawyer in elder law can offer expert guidance. They can also offer you support during crucial times such as Medicaid hearings and appeals.
As people age, they may find it harder to care for themselves and become vulnerable to abuse and exploitation. To prevent this, elder law attorneys can provide valuable assistance. Designating a durable power of attorney (DPOA) for property and financial affairs and another for health and well-being permits representatives to oversee and protect seniors when they are no longer able. DPOAs are documents used in estate planning.
Don’t have a power of attorney documents in place? An elder law and estate planning can assist with guardianship and conservatorship.
What is Life Care Planning?
As an estate grows in value and minor children become adults, it is important to revisit and amend your estate planning documents. Different life events like marriages, births, deaths, divorces, and substantial financial changes need regular reviews of your estate planning documents. Additionally, you may have to juggle between the needs of your children and aging parents. Estate planning shifts as estate planning attorneys consult with you on elder law matters.
Life care planning protects your assets, health, and legacy at every stage of life and addresses common concerns to avoid potential problems. Proactive planning is the key to living your best life, from raising a family to fears of declining health.
Ready To Start You Life Care Planning?
Are you ready to start your life care planning? Not sure where to start? Reach out to Kristen Mackintosh, The Happy Lawyer, for guidance. She has been through the process with her own father. Kristen understands what you are experiencing. More importantly, she can offer you guidance and direction so you and your loved ones are protected.
Contact her here for more information or to schedule a consultation.
