Why Single People in Worcester County Should Consider Estate Planning

When we typically think of estate planning, we see grandma and grandpa putting together a Will and possibly setting up some trusts for the following generations. It’s all about providing for our offspring, right?

Not necessarily. Even if you are single and/or have no children, a Worcester Wills and Estates lawyer like Attorney Kristina Vickstrom should still be in your plans. Why? Because estate planning is really about YOU.

While it is absolutely advisable for married people or those with children to work with an estate planning lawyer, it’s also just as important for single adults. After all, when a married person suffers a major illness, it’s usually pretty clear who will eventually take on their medical and financial responsibility. The water gets murkier for unmarried individuals.

If you were to suddenly become incapacitated, who would make your medical decisions for you? Possibly your parents would be called in to determine how your medical care should proceed. It might be your sibling. But what if you don’t get along with your brother? Even if your parent or sibling would be your first choice, that doesn’t mean that the courts would agree without having your wishes legally documented.

The person to make medical and financial decision on your behalf is whomever the courts decide! Again, it could be a parent, a sibling, some other relative, or even a court-appointed individual (a stranger!). While she was not single when she was hit with dementia, the children of the late signer, Etta James, fought repeatedly with their step-father over the management of her assets and health care. James should have documented her wishes and avoided a lot of the conflict, allowing her family to more fully enjoy her last moments.

Finally, who would have legal rights to your belongings, to your home, to your pets? You may think you know the answers, but without clearly outlining your wishes with a Worcester area Wills and Trusts attorney, you have very little control over the matter. Families can be torn apart by court battles involving an estate with no Will. Popular Swedish novelist Stieg Larsson, who died unexpectedly in 2004, had been living with his girlfriend of 30 years at his passing and had taken on no estate planning. A legal battlefield erupted over his assets, namely the rights to his successful publications. With the exception of an unfinished manuscript on a shared laptop, his girlfriend walked away with nothing and Larsson’s father and brother inherited everything. This also could have been avoided, or lessened, if Larsson had set up even the most basic of estate plans.

A single adult without children does not need to worry about creating guardianships and trusts to provide for his or her children, but it’s certainly a good idea to look out for yourself. Some of the basic legal documents any single person should have include:

• A Will to determine what will become of your assets in the event of your death.
• A Health Care Proxy to name the person you want making medical decisions on your behalf.
• A Power of Attorney for financial matters to name the person you feel should be responsible for your money if you are incapacitated.
• And possibly a revocable living trust to centralize management of assets if you become incapacitated and keep your assets out of probate if you should pass away.

These documents are crucial in ensuring that your wishes are met and that you have control over your future. One doesn’t need to a famous R&B singer or best-selling, author to need an estate plan. Everyone, including single people, in Worcester County, should consider estate planning.  Contact Vickstrom Law today to set up a consultation or to find out more information.

Photo courtesy of Bree Bailey

How Do I Bring Up the Topic of Estate Planning to My Parents?

In Worcester, just as everywhere else in the nation, there is a tendency for people to put off estate planning.  Elder law attorneys, like Kristina Vickstrom, recognize that there are multiple factors that lead people to procrastinate when it comes to the estate planning process.

One of the biggest factors, of course, is that most people don’t want to consider their own mortality, and estate planning forces you to do just that.  When it comes to adult children, we are just as guilty of not wanting to think about the inevitability of losing our parents, and therefore, we choose not to push them.

There are other complex reasons that come into play as well.  An adult child who wants to encourage his or her parents to set up wills and trusts may worry that the parent or other family members will mistake concern for greed.  If the parent has remarried, then even more complex family dynamics can come into play, with the adult child remaining quiet on the subject rather than creating waves.

Elder law attorneys understand these considerations and so many more, but we also know what happens when advanced planning isn’t given enough attention.  When a parent passes away or becomes incapacitated without an estate plan, the fallout can be devastating.  It may fall to the courts to determine who should be given power over medical and/or financial decisions for the parent, and the court’s opinion often does not reflect the wishes of those involved.

Really, having a plan in advance of a tragic event is the best way to ensure it will be handled according to your parents’ desires; and framing the request in this way can be helpful.  At a time in life when they are finding themselves with less and less control, it can be reassuring to know that some of the most important decisions regarding health, money, and property are theirs to make; and that when they can no longer make those decisions, substitute decision makers of their choosing are ready to step in.

In order for this to happen, though, parents need to meet with their elder law attorney while they are still able to make sound decisions and legally sign documents.  Again, most people don’t want to think about losing their mental acuity, but it can be very common.

Creating wills and trusts and setting up powers of attorney and a health care proxy can give your parent the sense of control that they may feel slipping away.  During your discussions with your parent, it can also be helpful to point out that estate planning:

• Allows them to determine who they want to have in charge of their money
• Provides the opportunity to designate who will receive which assets (or none at all)
• Keeps the courts out of the process, or limits their involvement, saving time, money, and hassle for those left behind
• Ensures that THEIR wishes are the ones that matter
• Minimizes the taxes that will be paid out of the estae

Life is busy, and it’s easy to say that estate planning is something that we’ll get to “later.”  However, “later” doesn’t always come when you think it will.  Instead of leaving the decisions (and potential hassles) in someone else’s hands, empower your parents to have a say in their future and the future of their family. Contact Vickstrom Law today for more information about encouraging your parents to handle their estate plan and to set up a consultation.

Choosing the Right Executor for your Estate

In the event of illness or incapacitation, most individuals have an idea as to how health matters and property distribution should proceed. However, delegating complete authority over your estate administration to one individual to serve as Trustee, Personal Representative (formerly Executor in Massachusetts), and agent under a Health Care Proxy and financial Power of Attorney can be a significant and oftentimes difficult decision. Personal integrity, familiarity with the needs of your estate, financial knowledge, competency, and willingness to take on such responsibilities are the more obvious qualifications of a Personal Representative, but there other important considerations.

Paula and Don have approached an estate planning attorney to modify their Estate Plan after the tragic death of their eldest daughter. Paula contends that the couple should designate the next in birth order as the Personal Representative, having one of their twin daughters, Laura or Molly, named. Don argues that their youngest son, Bobby, a financial advisor, should assume the role as the more practical choice. Who should be selected?

Choosing the eldest child, regardless of his or her ability to do the job, is not always a smart decision. Paula and Don’s Personal Representative decision should not necessarily be based on choosing the closest in relation, but about ensuring that their wishes are carried out in a timely fashion upon death. Due to the intricacies that go with the job, the most competent person should be chosen.

However, considerable knowledge about financial matters (like Paula and Don’s son) is not necessary. A Personal Representative can always seek assistance from an attorney or accountant familiar with the probate process. A more important consideration is whether your Personal Representative  has had financial problems of his or her own. He or she must be able to handle the tasks of estate administration without unduly burdening personal obligations.

If Paula and Don decide to follow the birth order of their children in selecting a Personal Representative, it is worth noting that multiple fiduciaries can be named. Such co-agent relationships might not be the proper choice if you are trying to avoid family disputes. Giving equal authority tends to encourage disagreements. Further, having to act in unison can prove to be cumbersome and slow down the probate process, particularly if Co-Personal Representatives live in different states.

Out-of-state persons can be appointed as Personal Representatives. Especially in the age of e-mail, fax, and overnight delivery, there is no issue with choosing someone who lives out-of-state. Yet generally it is ideal to appoint a health care agent who lives close to you. Reviewing medical records, conversing with physicians, and formulating a true picture of your condition is much easier for someone who lives nearby.

Keeping in mind the discussed considerations, Paula and Don should remember that the role of a Personal Representative is not a simple task that can be accomplished by anyone. Because of the complexity and involvement of the probate process, only intelligent, dependable, and trustworthy people should be named as Personal Representatives. To consult with an attorney on who might be the appropriate Personal Representative for your unique situation, contact Attorney Kristina Vickstrom at Vickstrom Law.

I Take Care of My Mother. Can I Legally Get Paid for That?

As the number of family members providing care for aging parents increases, the solutions to find help with loss of income because of time off from employment for caregiving has become a major concern for many. The demands on both the time and energy needed to provide the needed care can make it impossible to maintain both a full time job with full time caregiving.

Angela is a registered nurse. Her mother, Renee, has been experiencing a gradual decline in her health due to her Alzheimer’s and stroke and recently moved in with Angela. Angela is taking more and more time off from work to give Renee the care she needs. Sometimes she misses out on important overtime that her household finances depend on. Angela started paying herself out of her mother’s account for the care that she gives Renee. She pays herself some weeks, and doesn’t on others, even though she is providing the same care.

It is understandable that Angela would want to be paid for the care she is giving her mother, especially when it is interfering with her current job. Also if it wasn’t for this care, Renee would be in a nursing home. But, Angela must be sure to go about getting paid correctly.

The National Family Caregiver Support Program was created by the federal government to support family caregivers. While reviewing this site, Angela found out where she can get respite care for Renee, so she can take a much needed vacation with her husband. She also discovered how she may get paid, without feeling bad about her mother’s dwindling funds, and how these payments can continue after her mother runs out of money.

Often overlooked, the Veteran’s Aid and Attendance pension benefit is a great source of money to pay family caregivers to provide care at home. This money is available to veterans who served during a period of war. Pension money is also available to the widows of these veterans. This benefit, under the right circumstances, can provide up to $1,949 a month in additional income to pay family members to provide care at home. Luckily, Angela’s late husband was a WWII veteran and she qualifies for aid. However, she must have a professionally drafted caregiver contract in place, get a medical evaluation, meet income and asset qualifications, and have proof of medical expenses and care needed.  

Alternatively, or sometimes in addition to, a long term care insurance policy covers home care and payment to the care giver from this source could be arranged. Some policies require the care provider to be through a licensed home care agency, but others will pay for individual aides certified as such. This would require some training by the family member to become certified, unless they had a nursing background, like Angela. Renee did not have a long term care insurance policy in place. However, there are policies that pay a daily benefit amount to the insured to use as they want to pay for their care.

In some cases the elder has the funds to pay for their own care. If a family member is giving care it is very important that a professionally drafted caregiver contract be in place. Without one, any payments could disqualify the elder from certain MassHealth/Medicaid long-term care payments. Lump sum payments for care and/or retroactive payments are never a good idea.

A caregiver contract prepared by an elder law attorney like Attorney Kristina R. Vickstrom, will be a signed and dated agreement will outline the services provided as well as the amount of pay for these services. The contract will eliminate questions about what is expected from both parent and caregiver as well as providing a legitimate contract and a clear and consistent payment record of services to qualify for MassHealth/Medicaid. The contact will be treated as an employer/employee relationship and payroll records must be kept with taxes paid. Retroactive payments for care-giving are almost never allowed when applying for MassHealth/Medicaid.

The family member providing such care, like Angela, can not only save their loved one from needing nursing home services outside of the home, but also could protect assets in the event that long-term care is needed in the future. Please contact Vickstrom Law to set up a consultation if you are interested in learning more about the right way to get paid to take care of your loved one.

Upcoming Long-term Care Planning Presentation at Dodge Park Rest Home

Fall Prevention in the Aging Population

From time to time I like to feature local experts with tips and advice for improving senior’s lives. This week’s blog is written by my colleague, Dr. Don Pelto of Central Massachusetts Podiatry. Dr. Pelto specializes in many foot ailments and writes about how you can be proactive by avoiding falls among elders.

Falls are a  major causes of injury in elderly people.  Hip fractures account for approximately 25 percent of injury deaths among those 65+, and 34 percent of injury deaths among those 85+.

Most falls happen in or around your house and can be life threatening.  For example, Mary Smith was seen in my office for a footcare visit.  I asked her, “Mary have you fallen recently?”  She said, “Well in fact I was walking around my house and was only going a short distance and not using my walker and I fell and hurt my hand but thankfully nothing was broken.” Mary said that she lost her balance quite frequently and that she had nearly fallen a number of times.

Mary’s situation is very common. Many times a fall can cause other problems that lead to problems that can be fatal over time.  There are many devices such as canes and walkers that can help the elderly live safer at home.  However, a new fall-prevention device has been developed that can be worn in regular shoes has been shown to decrease falls by 30-60 percent in the elderly.  It is typically covered by Medicare and Medicaid and is light weight.

If you would like to learn more about these braces visit www.fallpreventionbrace.com or if you would like to make an appointment to see a physician regarding obtaining these braces please contact Dr. Donald Pelto at Central Massachusetts Podiatry at 508.757.4003 or www.drpelto.com.  Dr. Pelto is a podiatrist working in Worcester, Massachusetts.

Grandparents Raising Grandchildren- Legal Options and Financial Support

With the decline of the traditional nuclear family, individuals over 50 are increasingly vested with responsibility for the caretaking of young children and adolescents. Financial problems are the primary cause of seniors having to assume more “traditional” child-rearing duties. Whether due to a divorce, military service, substance abuse, mental illness or other secondary issues, some adults may be unable or simply unwilling to be good parents themselves.

After suffering ten years of domestic abuse at the hands of her husband, Jennifer finally filed for divorce and moved herself and her daughter in with her parents, Gerry and Donna Daly. Although the relocation was supposed to be temporary, Jennifer has exhausted her bank accounts, refuses to obtain employment, and has sunk into a deep depression. Gerry and Donna are proud, retired grandparents who want to ensure that their grandchild is raised with love, discipline, and opportunity. They have been expensing the household’s grocery bills and clothing for the child, as well as toting her from play-dates to extracurricular activities. The Dalys’ other children have begun to voice concern over their parents’ spending, noting that their income is supposed to sufficiently cover a two-person household and not be stretched to support a four person family. While Gerry and Donna understand their concern, they don’t believe in asking Jennifer and her daughter to leave and have the utmost confidence that Jennifer will get back on her feet. What are their legal and financial options?

Many times, the child-rearing duties that grandparents assume will cause a real strain on seniors’ budgets. Child care costs can grow exponentially dependent on the length of time a grandparent will be asked to assist in raising his or her grandchild. Given this responsibility, these seniors might consider obtaining legal authority to make decisions for that child – on important issues such as healthcare and schooling – and financial assistance from the State.

In Massachusetts alone, 67,781 children reside in grandparent-headed households. Although the Daly’s granddaughter is physically living in their home and they are raising her, Gerry and Donna do not have any legal rights or authority to make decisions on behalf of the children. Jennifer could sign a form giving her parents ‘caregiver authorization.’  This is a caretaking option provided by the Massachusetts Uniform Probate code and allows parents to authorize a designated caregiver to exercise “concurrent parental rights” on healthcare and schooling matters. Provided that the caregiver lives with the child, the authorization is valid for two years and does not require court approval. Caregiver authorization is an alternative to filing for Guardianship of a Minor, a court decree effectively suspending the rights of the parents and transferring them to a guardian entrusted with caretaking responsibility. Depending on Jennifer’s state, this may be necessary for the Dalys.

If you are on a fixed income and unable to get help from a child’s parents, the child may be eligible for payments from Massachusetts’ Transitional Aid to Families with Dependent Children and medical coverage through MassHealth. For further information on assistance through these and similar programs, consider reviewing the Massachusetts “Resource Guide for Grandparents Raising their Children.”

While it may be your desire to become legally and financially responsible for your grandchildren, you are not required to as a matter of law. It is ultimately up to the Commonwealth to assign custody to a suitable individual. However, if circumstances have placed your grandchildren in your home, it is helpful and oftentimes necessary to review your present legal options and to adapt an existing estate plan to ensure that the unique challenges of caring for grandchildren are addressed. Contact Vickstrom Law to your situation and get informed on your options.

What Really Happens to Your Estate if You Die Without a Will in Massachusetts?

Dying without a Will is called dying “intestate”. What this means is that your intentions as to who inherits your assets, who administers your estate, and who acts as guardians for any young children are determined by the Commonwealth of Massachusetts. It is often said that if you don’t have an estate plan, the Commonwealth has one for you. And as of January 2^nd, 2012, the Commonwealth has an updated plan for you! That’s when the last phase of the Massachusetts Uniform Probate Code (MUPC) takes effect.

It’s estimated that nearly 65% of Americans don’t have a Will. Fred is a healthy, vibrant sixty-five year old man. He exercises three times and week, and has made a conscious effort to eat well since his recent diagnosis of diabetes. After speaking with many close friends, Lenore, Fred’s wife, insists that they both create Wills. Fred insists that he is perfectly healthy, wishing to leave the issue of estate planning until he experiences further health problems. What if Fred was to die without a Will?

If Fred dies in 2012, or later, without creating a Will or using some legal method to transfer his assets, Massachusetts law, specifically, the rules of intestacy, determine what happen to your property. After payment of debts, expenses, administration and funeral costs, your property will be distributed to your heirs according to a predetermined legal formula. The problem is that the formula that the Commonwealth uses may not end up being how you would like your estate divided. If no relatives can found to inherit your assets, they are taken by the State.

Intestacy distribution, under the MUPC, specifies that if Fred dies leaving a spouse with no children and his parents are also deceased, his spouse receives everything. But, the same scenario if Fred’s father is still alive at his passing, Fred’s wife and father will each inherit from Fred’s estate.

What if Fred passed with a spouse and minor children? Then his spouse would inherit everything, regardless of whether his parents were still living. However, if one of his children was from a previous relationship, the current spouse and ALL of Fred’s children are heirs together and inherit a portion of his estate.

Despite the changes under the MUPC, Massachusetts Wills still have a spousal elective share clause, which means you can’t disinherit your spouse in your Will. In most cases the surviving spouse can elect to get the first $100,000 or $200,000 of the estate, plus a portion of the remaining property, instead of what their spouse left in their Will.

The rules of intestacy may appear confusing and difficult to apply given your unique situation. It is always best to determine how you would like your assets to pass through a properly executed Last Will & Testament, or even a Trust. In this way, you can ensure that family members you are not close with do not end up inheriting through your estate. You may also provide for step-children in the case of blended families.

The best way to truly ensure that your family is protected and that your estate is distributed the way you want it is to consult with a knowledgeable attorney’s office, like Vickstrom Law, who specializes in Estate Planning.

Marrying Later in Life: Do I Need a Prenup?

Welcome to the new singles scene. With the average life expectancy in the United States about 78 years old, people are living longer and healthier lives than ever before and more and more seniors are falling in love. However, what can be a thrilling and romantic time for an older couple can also be an anxious time for family members that have expectations regarding inheritance. It is worth noting that once married, a spouse will automatically inherit, at the very least, a portion of deceased partner’s estate, unless measures are taken to avoid this.

After her husband of 49 years passed away, Louise never thought she would remarry. After six months she met Frank, a man fifteen years younger, who occasionally accompanied Louise to dinner and church. About a year and a half after her husband died, Louise called her daughter, Emily, saying she’d been scoping out wedding venues. Prior to the wedding, Emily pushed that the couple sign a prenuptial agreement. Her mother had considerable assets and she worried that Frank might be after her money. Louise brought the concerns to Frank, who balked at the idea, declaring that their marriage would endure forever. After some discussion, Louise became adamant, wanting to preserve some assets and family property for her children as a condition of the marriage. Ultimately, the prenup was a deal-breaker; Frank was either interested in little more than her wealth or was too hurt to come to turns with the reality of their relationship.

Without a prenup in place, your new spouse could invalidate your previously existing estate plan. For example, suppose Louise intended her home to pass to Emily. With improper estate planning and no prenup, Frank could inherit her house and pass it on to his heirs when he dies. Disinheriting her children would probably not have been Louse’s intention.

One common perception of a prenup is that the agreement entails fear that a marriage will fail. Why draft a prenup if two individuals love and trust one another? Frank may have had these concerns. While a premarital agreement might feel unsatisfying, over one-quarter of senior marriages do end in divorce. With accumulated resources and descendants, a prenup can ensure that a spouse’s separate assets will pass to his or her own loved ones upon marriage dissolution. Though it may not seem fitting with the romance of a wedding, think of a prenup as an open and honest disclosure of both parties’ assets and agreement as to their distribution.

A prenup is not an estate-planning tool and may not take precedence over a will or trust. The married later in life couple must also be sure to implement a solid estate plan to ensure their joint wishes are not undermined by the surviving spouse. To ensure that your prenuptial agreement is valid, it must be in writing, signed voluntarily, read and understood by both parties, disclosures must be open and honest, and the agreement must be fair and not contain illegal provisions. If you have already remarried and did not negotiate a prenuptial agreement, these issues may be resolved with a post-nuptial agreement and through proper estate planning.

Contact Vickstrom Law for more information concerning prenuptial or postnuptial agreements as well as proper estate planning for later in life marriages.

Protecting the Family Cottage from a Medicaid (MassHealth) Spend Down through an Irrevocable Trust

An irrevocable trust is an excellent tool when preplanning for Medicaid benefits.  Anything that is put into the irrevocable trust is protected from a Medicaid spend-down if five years pass from the date of the transfer.

For example, Alice Smith, a 77-year-old widow, wants to protect her family cottage from potential long-term care nursing home bills and preserve it for the benefit of her four children and their immediate families.  To do so she would need to establish an irrevocable trust, fund it with the cottage property, and have five years pass from the date of the transfer.  Additionally, to ensure her children have sufficient funds to maintain the family cottage, Alice also simultaneously transferred $250,000 of cash assets into the trust.  Finally, in order to bullet-proof the plan in the event of an accident, Alice purchased a traditional long-term care insurance policy which will provide her with five years worth of long-term care benefits, including home health, assisted living, and nursing home care.  The long-term care insurance policy also offered a full return of premium rider in the event that she passed away without using any of the coverage.  After such an event, the annual premiums would be refunded to her revocable living trust.

With the above plan in place, Alice was confident that her wish to have the family cottage remain in the family for many years to come would be long lasting.  Notwithstanding the above, Alice understood that when the maintenance funds ran out that a financial problem may soon develop.  However, to avoid a point of impasse among her children, Alice designed the trust so that if a financial problem persisted for more than 90 days, the trustee was directed to sell the property, giving each child an equal share of the sale proceeds.

This week’s blog originally appeared in a blog from Kraus Financial Services and can be viewed here.