The not-so-obvious but critical issues to consider.
Part 3
Special Considerations for special families and individuals.
When I started practicing elder law and estate planning, my clients were almost all husband and wife with 2 or 3 shared children. There were very few who were divorced or cohabiting; almost no second marriages and almost none who had children from multiple marriages.
I think you will agree that the world has changed and so has my practice. My clients consist of people who are widowed, divorced, remarried, never married, with children, without children, cohabiting, blended families and on and on.
Not surprisingly, elder law, estate planning and asset protection for long term care have become more complicated and important as our family units have changed and we live longer. Some planning essentials overlap all groups such as planning for long term care needs and preparing a durable power of attorney, However, here are a few tips for those of you who may have special considerations.
This is a group of people formerly called elder orphans. These are people with no spouse or children. Planning for these clients is very important because they may have limited support systems. For these clients, we investigate long term care insurance, senior living communities, preneed funeral and support services in the community. We also suggest that a Geriatric Care Manager be considered. If all this is in place, we ensure smooth transitions on the elder care journey.
The fact that you might be supporting your teenager or paying tuition does not mean they are not legally adults. It is critical that everyone over the age of 18 have a Durable Power of Attorney in place in case of incapacity. Otherwise, if there is an accident or illness, privacy laws do not permit parents to receive any information absent a Durable Power of Attorney.
This is crunch time. If you are elderly and ill it is essential to have an up to date health care directive and durable power of attorney. It is equally as important to let your family know of your wishes as well as where copies of the above documents can be found. It’s time for the family to have a “conversation” and make sure everything is in place for the unknown journey before us. This scenario is one of the most common in my office and we use this opportunity to make sure everything is in order, documents are prepared, assets are located and the title is checked etc.
Since documents can only be signed by competent adults it is imperative that families address elder law issues before it’s too late.
If you are young and single with material possessions or wealth you should write a Will and/or Trust. Without this planning, your possessions and wealth may pass through Florida’s intestate laws which prescribe who your possessions will go to. By writing a Last Will and Testament you will be able to designate who shall receive your assets and possession. By using a trust, you can also avoid probate.
If you have committed to a life partner but are not legally married, planning is critical. You want your documents and account titles to be clear as to who will be inheriting. A will and a trust are probably essential. This gives you the flexibility to provide for your life partner if you choose and to provide for the family as well in an orderly fashion. A common issue may also be allowing the partner to reside in the home after the first one’s death. Discussing this can prevent hard feelings and shattered expectations down the line by both family and partner. You also have the flexibility to make changes as time goes on.
Planning for couples who have shared children is usually, but not always, the most straightforward. However, not all children are created equal. Discussing the needs and issues of each child allows us to properly prepare for them down the road and protect their assets from creditors, ex-spouses, and taxes, to name a few.
These clients share some of the same concerns as my solo adults since they must think about a support system when one or both are unable to care for themselves.
In the case that both you and your spouse die simultaneously, your Will will include a provision for the appointment of a guardian for your minor children. If you do not have a will and fail to name someone as guardian of your children, a court may appoint someone you might not have chosen. The guardian that you choose to appoint should be over 18 and willing to assume the responsibility. The guardian’s duties are related to personal care, custody, and control of your minor children. Prior to choosing a guardian, you should talk to the potential guardian about what you are asking of them before naming that person in your Will.
Other estate planning tools that you should consider creating is a trust for your children and purchasing life insurance. A Trust is important because in the event you and your spouse both die simultaneously, you will want to have the assets that you intended to leave to your children to directly benefit them, but not to go directly to their control. The trustee you name can be the guardian or it can be someone else or a professional.
A life insurance policy is also a great estate planning tool because the named beneficiaries of the policy are able to receive the policy without it having to pass through probate or a trust can be the beneficiary and the funds held for the children. It is a great way to ensure that your loved ones receive financial support when you are no longer able to provide it for them.
In blended family situations, when you have children from previous marriages, it is especially important to consider estate planning. It is important to make sure that your children from a previous relationship receive their inheritance and any property as you have planned for them to receive.
This is just a quick overview of some special considerations for special families. Knowing what your goals and concerns are, knowing your family makeup and helping you to make informed decisions that provide peace of mind is what we are committed to doing for our families. We look forward to working with you.
