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ESTATE PLANNING & PROBATE
Do you recognize these terms? Do you understand their meaning? Do you know how they might affect you and your property? Who makes decisions for you if you become disabled? Do you ever think about who might inherit your property at your death? Have you made plans for such an event? What kind of medical treatment would you want if you faced a terminal illness or disease?
If you answered no or “I don’t know” to any of these questions, you may find the following discussion important to you and to your family.
Estate Planning is a method of planning for the distribution of your property and for the care of your person and your property during your lifetime. Properly devised, it allows you to choose what persons will receive what portions of your assets and the time each person will receive them. It allows you to delegate such authority to trusted persons of your choosing. A good plan also enables you to save on state inheritance taxes and federal estate taxes.
Proper estate planning begins with a triangle of basic documents: a will, a durable power of attorney, and a medical directive (living will). Properly drawn, a will or testament gives directions to others how you wish your assets to be distributed at your death. In the absence of a will, the state has created default rules for such distribution which may not conform to your wishes.
But a will does not assist you if you become mentally or physically disabled. What if you suddenly discover that you cannot handle your financial affairs or your physical well-being? A properly drafted durable power of attorney transfers your authority over your person and your assets to a person whom you trust implicitly to handle for you. In the absence of such a document, the State again has prepared default rules which require litigation in the courts to appoint a guardian who then must seek court approval to make whatever decision is necessary for your person and your assets. It takes time and money to accomplish these things. A durable power of attorney survives your disability, and it allows your appointed agent to act in your place on all matters affecting your person and your estate. It terminates at your death, but then the dispositions in your will take over.
Neither the will nor the durable power of attorney will help you when it comes to deciding about your medical treatment. What happens when you become afflicted with a terminal illness, a disease, or some malady resulting from an accident? What happens to you if you are unconscious and cannot speak for yourself? What kinds of medical treatment do you want in these situations, and what treatments do you want to prevent from occurring? You can answer all of these questions through a properly drafted medical directive, or living will. You can appoint some trusted family member or friend to act in your behalf to make these decisions when you cannot. You can direct what types of treatment you will accept, and what treatments should not be given. Again, if you do not have such a document, the State has prepared its own set of general rules for medical facilities to follow, and these rules may not be to your or your family’s liking.
Have you given any thought to what it takes to qualify for Medicaid in connection with placing one of your elderly loved ones in a skilled nursing facility? Did you know that Louisiana requires you to liquidate many of your property interests or to assign your rights to these interests to the facility? Are you aware that Federal and State rules provide that a lien can be placed on your property interests if you die while a resident of a skilled nursing facility for reimbursement of Medicaid payments to you or on your behalf?
For more information on these matters, call us for an appointment to discuss your particular situation. We have over forty (40) years of experience in assisting people in creating their individual estate plans, no matter how large or small. People value what they have been able to accumulate over their working lives, and they want some assurance that these things will not be lost due to bureaucratic rules and regulations.
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