probate Archives - Page 3 of 3 - Lonich Patton Ehrlich Policastri

Planning Ahead for the Costs of Nursing Homes

July 13, 2011/in Estate Planning /by Michael Lonich

Nursing homes have become an important part of the way we care for our elders. With the population of those who are 65 and older rising, nursing homes will continue to play an integral role in our society. Assisted living, in any form, however, is a very expensive venture and many elders will not have the funds needed to afford this level of care.

“The average [] cost of a nursing home today is $6917 per month, and a typical Alzheimer’s patient will spend $395,000 for their nursing home care after diagnosis,” said Heiser, author of How to Protect Your Family’s Assets from Devastating Nursing Home Costs: Medicaid Secrets (www.MedicaidSecrets.com). That cost is only expected to rise as demand rises so it’s important that preparations begin early. Medicaid—a federal health program, managed by states, for people with low income—is a valuable resource; however, many people assume they cannot qualify for it.

It is important to understand the asset limits for those applying to Medicaid. In California, an individual may have up to $2000 in assets; a couple may have up to $3000. Moreover, some personal assets are not considered in determining Medi-Cal coverage. These include: your primary home, one vehicle, household goods and personal belongings, life-insurance policy with a face value of $1500/person, and prepaid burial plan and plots. The key to protecting your family’s assets from costly nursing homes is planning early and effectively.

If you are interested in learning how to plan for future costs of care, please contact the experienced estate planning attorneys at Lonich Patton Erlich Policastri for further information. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship

Predatory Unions: Protect yourself and Protect Your Family

July 8, 2011/in Estate Planning /by Michael Lonich

The elderly are a vulnerable population. The wealthy elderly, however, are even more at risk. It is not uncommon to hear horror stories of an elderly parent who marries their caretaker only to have their life savings steadily funneled to unknown sources, discovered only by family members after the death of the elderly. As baby boomers head into retirement, these “predatory unions” are on the rise, as highlighted recently in the Wall Street Journal.

Financial abuse is the theft or embezzlement of money or any other property from an elder. It can be as simple as taking money from a wallet and as complex as manipulating a victim into turning over property to an abuser. In the blink of an eye, an elderly parent may be left unable to provide for their own needs while children and family members may be left without an inheritance.

The most difficult challenge for the children of these elderly is objecting to the property consequences of a parent getting married once that parent dies. In most states, the inheritance rights of widows and widowers trump any estate plan—even if the new spouse wasn’t named in the will, and even if the marriage took place shortly before the death of someone unable to recall the union a few days later. In California, the inheritance rights of widows and widowers are substantial but not as extreme as those previously mentioned. The surviving spouse may receive up to one-half of the decedent’s community property, quasi-community property and separate property.

Estate planning, however, can still be a strong deterrent to elder financial abuse if drafted properly. Estate planning devices may include wills, trusts, powers of attorney, advance health care directives and joint tenancies. Children whose parents put their assets in a trust have a stronger line of defense when the parent marries late in life. Irrevocable trusts cannot be unwound during the parent’s life time, however, if a revocable trust is in place, the paid caregiver should not know about it.

If you are interested in learning how to better protect your own or loved one’s assets, please contact the experienced estate planning attorneys at Lonich Patton Erlich Policastri for further information. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

Trusts Offer Privacy During Probate

April 5, 2011/in Estate Planning, Probate /by Michael Lonich

Elizabeth Taylor recently passed away with an estate estimated to be worth anywhere from $6 million to $1 billion. Radaronline, an internet based tabloid, has obtained the Notice to Creditors filed with the Superior Court of Los Angeles. This document gives creditors notice that their client has passed away, allowing creditors the opportunity to file a claim against the estate requiring that payment be made before assets are distributed to the beneficiaries. The court filings reveal that Elizabeth Taylor’s trust was created June 23, 1998, a few months after she experienced a number of medical issues and underwent hip replacement surgery. Although information like this has been made public, tabloid sites such as Radaronline cannot obtain a complete copy of the trust from the court because the trust, unlike a will or the Notice to Creditors, does not become part of the public court file in California. Thus, the trust not only helps Elizabeth Taylor’s estate avoid probate, it also offers anonymity and privacy to Ms. Taylor and the trust beneficiaries. The privacy offered by trusts is an additional benefit that should be considered when determining the appropriate estate planning vehicles to use.

If you are interested in learning more about the probate process or how a trust might fit into your estate planning needs, please contact San Jose Probate Attorneys at Lonich Patton Erlich Policastri, LLP. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

Choosing the Right Executor

March 31, 2011/in Estate Planning, Probate /by Michael Lonich

Recently, the New York Times published an interesting article advising individuals on how to choose the right executor for an estate. An executor is an individual responsible for an estate before the estate is closed (transferred to its beneficiaries).

The author indicates how estate planning in 2011 is particularly burdensome on executors because of the recent tax law changes President Obama signed in December of 2010. In short, portability (the ability to pass the federal estate tax exclusion to a surviving spouse, described in a previous post), must be if at all exercised by the executor. This new responsibility coupled with the traditional responsibilities of an executor will require an organized and honest individual who has the best interest of your beneficiaries at heart. The article continues with other practical considerations when choosing an executor including why a professional or a family member may be a more suitable executor, for the full New York Times article click here.

Additionally, it is a prudent idea for individuals to review their estate planning documents because of the recent estate planning changes in 2011. Currently the new tax laws affecting Estate Planning are only set to be active for 2011-2012.

If you are interested in learning more about Estate Planning, please contact San Jose Estate Planning Lawyers at Lonich Patton Erlich Policastri, LLP. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

Automatic Temporary Restraining Orders

December 2, 2010/in Family Law /by Julia Lemon

Automatic Temporary Restraining Orders

Once a divorce or legal separation is filed, a set of Family Law Automatic Temporary Restraining Orders (ATROs) take effect. There are four standard mutual restraining orders that take effect automatically when the petition for dissolution is filed (as to the petitioner) and when the petition for dissolution is served (as to the respondent). The restraining orders restrain both parties from doing the following:

Removing the parties’ minor child(ren) from the state without the prior written consent of the other spouse or a court order.
Transferring, encumbering, concealing or disposing of any property, real or personal, community or separate, without the written consent of the other party or a court order.
Insurance Coverage – Spouses are prohibited from changing beneficiaries, altering, canceling, borrowing against, cashing, or transferring any insurance including health, automobile, life, and disability insurances. This means that you cannot, for example, cancel your spouse’s health or auto insurance or change the beneficiaries of any life insurance policies during the pendency of a dissolution proceeding.
Creation and Modification of Non Probate Transfers: Both spouses are prohibited in creating non probate transfers or modifying a nonprobate transfer in a manner that affects the disposition of the property subject to transfer, without the written consent of the other party or a court order. A non probate transfer includes revocable trusts, a financial institution pay on death account, Totten trust, and transfers on death registration of personal property. This does not include wills.

Spouses are also required to notify the other spouse of extraordinary expenditures at least five business days in advance and to account for these expenditures to the court. They are, however, allowed to use community, quasi-community, or their own separate property to pay an attorney.

It is important to speak to your attorney to determine what is within your purview to create, modify or change while your divorce or other legal action is pending.

For more information about divorce and restraining orders, please contact the divorce attorneys at Lonich Patton Erlich Policastri. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

The Proper Estate Plan May Help You Avoid the Expense and Hassle of Probate

November 23, 2010/in Estate Planning /by Michael Lonich

If you are trying to decide what estate planning instruments you need in order to meet your goals and to avoid the cost of probate, you might want to look into the revocable trust. A revocable trust is the primary testamentary transfer device used by professional estate planners in California. A revocable trust can be used not only to manage your property during your lifetime, but it also serves to distribute your assets upon your passing.

There are several key advantages of a trust. First, it avoids probate. Probate is the court-supervised process of distributing a deceased person’s assets according to their will or California intestacy law. This process can sometimes take over 6 months to complete and can be expensive. For example, the estate of a person with only a will operating to distribute their assets after death would have to carry the costs associated with providing and preparing the initial petition, petitions for instructions, and the petition for final distribution. In addition, costly court hearings to discuss creditor (and other) issues may be required.

Second, a trust can help to maintain confidentiality regarding your assets. Probate proceedings are a part of the public record. This means that anyone is able to access the information in the record regarding your assets and their distribution. If privacy is important to you, a trust can help you achieve greater (but not necessarily complete) confidentiality.

Third, a trust also serves property management functions during your lifetime. With a trust in place, there is no need to incur the costs and inefficiency associated with a formal conservatorship in the event of your lifetime disability or incapacity. In addition, a trust is useful as it provides for long-term continuity for handling your assets.

For more information about wills and trusts, please contact our San Jose estate planning lawyers at Lonich Patton Erlich Policastri for more information. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

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