Spendthrift: Spending Like a Queen

Posted by on Jan 28, 2014 in asset protection, Trusts |

queen2A REPORT for Britain’s House of Commons shows that Queen Elizabeth may be tugging on the purse strings just a little too strongly, demonstrating a bank balance that has dropped from £35 million to £1 million in just over a decade. Apparently, the Queen’s financial advisors have failed to properly control her finances.

Just about every family has one of these not-so-savvy-spenders, who often end up in vulnerable situations as a result of “failure to property control finances.” When strategizing your asset protection plan, it is very important to factor in these super-squanderer’s, in what we so conveniently call a “spendthrift trust.”

 

 

A Spendthrift Trust is set up to provide for your big-spender-beneficiary, but the beneficiary is prohibited from having in control over the distributions. Future claims against your not-so-frugal-friend will only be able to reach the distributions; thus, the trust must be structured so that the Trustee makes discretionary distributions. Mandatory distributions are not protected because any potential creditor can effectively obtain access to all of the funds. Furthermore, if the Trustee is also a beneficiary,  creditors have the same rights to it as the beneficiary, because they can compel the beneficiary to distribute. However, if the beneficiary holds a power over trust distributions, subject to ascertainable standards (Health, Education, Maintenance, and Support; a/k/a “HEMS”),  a claimant cannot force the distribution. Ultimately, it is very important to include the proper language in the trust, to ensure that your assets receive maximum protection. Please keep in mind, if you are  fraudulently hiding money from creditors, you will lose that protection (ex: have notice of lawsuit and then make an irrevocable spendthrift trust).

 

If you have a super-spender-queen in your family, be sure to protect the royal crown! For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

It’s a Wild world. Are you protected?SM

 

 

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Oscar Nominations – Surprised?

Posted by on Jan 16, 2014 in asset protection, Trusts, Wills |

JLThe Oscar nominees for the 86th Academy Awards are in,  including Cate Blanchett, Sandra Bullock, Meryl Streep, Christian Bale,  Leonardo DiCaprio, and Matthew McConaughey. There’s no denying that these nominations do not come to a surprise to anyone, beyond the GEICO caveman living under a rock. While the Academy Awards provide us with the expected, it is unlikely that life will follow suit; as the unknown future is full of surprises.

Fortunately,  there are plans you can set in place to ensure that you maintain control in the event of life’s unexpected surprises. The following 5 documents can be incorporated into your estate plan, to allow you the same comfort and control that you had in predicting the preceding nominees:

 

1. Living Trust – the best way to maintain control over all of your assets and distributions, while avoiding the hassle, expense, and lack of privacy associated with probate.

2. Assignment of Property – this is exactly that, assigning your property to your trust. In other words, placing your property into the trust. This includes both real & personal property. A trust does not do anything for you if there is no property in it.

3. Last Will & Testament – this is your traditional will that is used upon death to distribute property to beneficiaries, specify last wishes, and name guardians for minor children.

4. Durable Power of Attorney – this allows you to designate and authorize someone to legally act on your behalf, in the event that you become incapacitated.

5. Combination Living Will & Designation of Healthcare Surrogate – this outlines important healthcare decisions in advance, and appoints a healthcare surrogate to make healthcare decisions for you when you become unable to do so yourself.

 

For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

It’s a Wild world. Are you protected?SM

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Health Care Preventive Methods – Are You Prepared?

Posted by on Jan 9, 2014 in asset protection, estate planning, Trusts, Wills |

 

whitehouseThe White House has announced that Obamacare will cover breast cancer prevention drugs for women who have an increased risk of breast cancer due to age, family history or other factors. Such “chemoprevention” drugs will be covered without a co-pay or other out of pocket expense to the patient. This change has resulted from a recommendation from the U.S. Preventative Task Force, composed of independent volunteer physicians and academics, for the exact purpose of recommending which preventive services to offer patient. These preventive methods are much like estate planning, as risks are evaluated to determine what plan is necessary to mitigate or prevent an undesirable result. If you are at “risk” for sickness, incapacitation, or death, you will benefit from the following documents:

1. Living Trust – the best way to maintain control over all of your assets and distributions, while avoiding the hassle, expense, and lack of privacy associated with probate.

2. Assignment of Property – this is exactly that, assigning your property to your trust. In other words, placing your property into the trust. This includes both real & personal property. A trust does not do anything for you if there is no property in it.

3. Last Will & Testament – this is your traditional will that is used upon death to distribute property to beneficiaries, specify last wishes, and name guardians for minor children.

4. Durable Power of Attorney – this allows you to designate and authorize someone to legally act on your behalf, in the event that you become incapacitated.

5. Combination Living Will & Designation of Healthcare Surrogate – this outlines important healthcare decisions in advance, and appoints a healthcare surrogate to make healthcare decisions for you when you become unable to do so yourself.

 

While you often cannot prevent incapacitation or death, you can always be prepared for it! For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

It’s a Wild world. Are you protected?S

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Long Term Home Care: Reduce Costs & Enhance Medicaid Eligibility

Posted by on Jan 6, 2014 in Elder Law, estate planning, Trusts |

hairyarmOn any given day, there are over 150,000 Floridians receiving home care services. Such care ranges from homemaker/companions to registered nurses, providing services of everything from meal preparation to medical treatment. When structuring an arrangement for long term care, the individual’s environment plays a critical role in their quality of life, as studies have shown that patients recover faster in the comfort of their own homes.

There are a variety of factors that should be considered in order to structure a cost effective arrangement for home care, while both enhancing the older adult’s quality of life and preparing for future medicaid eligibility. Often, when an older adult is in a condition of health that does not require medical nursing care, a family member or friend will assist with personal care. This can become quite burdensome for the relative or friend, who must balance daily obligations with the responsibilities of caregiving. As a result, many have turned to personal care agreements (a.k.a. personal services contacts), allowing the older adult to contract with a relative/friend for services rendered. The caretaker is compensated, the older adult receives necessary assistance, and the payment is considered a transfer of value (not a gift); thus reducing the older adult’s countable assets, and enhancing Medicaid eligibility.

A personal care agreement should specifically address the duties of both parties, and structured in a manner that ensures legal enforceability. The agreement should be in writing, signed before the services are rendered, and the compensation must be reasonable (in comparison to what other third party caregivers are charging for the same services).

A personal care agreement is an excellent tool for older adults who wish to use a family member or friend as a caregiver, while accelerating their Medicaid eligibility. For these arrangements to work effectively, it is very important that the contracts are drafted properly. For this reason, older adults that are looking into a personal care agreement should consult an attorney who is familiar with elder law issues to first determine whether the agreement is appropriate under the circumstances, and to further ensure that it is structured to enhance all potential advantages.

For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

It’s a Wild world. Are you protected?SM

 

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New Year’s Resolutions: Lose Weight, Lift Weights, Don’t Wait!

Posted by on Jan 2, 2014 in asset protection, Trusts |

resolution

According to statistics published by the University of Scranton, approximately 45% of Americans make New Year’s Resolutions, and the most popular goals are health related (approximately 38%). While weight loss books are flying off the shelves, and gym attendance is at an all time high, we should not forget to pre-plan for sickness as well as health. It is critical to have an asset protection plan in place in the event of a long-term care illness, such as dementia, Alzheimer’s, stroke, etc. A properly drafted irrevocable trust can be utilized to ensure future eligibility for Medicaid, in the event that you are in need of long-term care.

The first hurdle in Medicaid eligibility planning can be avoided by simply starting early. All transfers made subsequent to January 2010 have a five year look-back period. Any gift made within 5 years of the application results in a penalty period; effectively delaying your ability to receive Medicaid coverage. This can result in an unwelcome depletion of your assets, so it is important to plan ahead.

A medicaid trust effectively allows the Settlor (the creator of the trust) to make a transfer to the trust, while maintaining control over who will receive income from the trust principal. With an outright gift, the donor gives up complete control, and with it the ability to determine a successor beneficiary. An irrevocable trust, on the other hand, allows the settlor to name successor beneficiaries; whether it be a charity, a continuation in trust for the benefit of descendants. Furthermore, the Settlor can retain the right to receive income. This decision should be made with caution, as any interest the Settlor retains in the trusts income will be counted for Medicaid eligibility purposes. Even if the Trustee does not make distributions to the Settlor, the power alone is sufficient for inclusion when calculating the applicant’s income. There are a variety of factors that should be weighed when making decisions regarding distributions to the Settlor; thus, it is important to have the assistance of an attorney that can design the trust to enhance the benefits and mitigate the pitfalls in relation to your exact estate.

Ultimately, a Medicaid Trust allows you to maximize future eligibility for Medicaid, while protecting your assets,  mitigating the loss of control, and ensuring an inheritance for your beneficiaries. 

 

So Lose Weight, Lift Waits; but Don’t Wait to Plan Ahead! ! For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

It’s a Wild world. Are you protected?SM

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