With Long Term Care Insurance we are planning for
the last years of life. It is necessary to
know the fundamentals of Estate Planning.
Please check with an attorney for more detail discussion
on these terms.
Wills:
A
Will or testament is a legal declaration by which a person, the testator, names
one or more persons to manage his or her estate upon his or her death and
provides for the transfer of his or her property to specified beneficiaries
Trust:
The most common Trust is a Revocable Living Trust.
It represents a private contract between the person or persons creating it and
the person or entity they choose to be their Trustee. It does not require court
involvement to authorize, create or oversee its administration. It is
"Living" as it is prepared and used during the life of the person(s)
creating it by transferring an asset into it also referred to as “funding” the
trust. When it is funded, the trust is legally in existence and has
"life". Once funded, the trust can serve many family and estate tax
planning needs. Assets can be added to it at anytime, whether during your
lifetime or upon death. The Trustee is responsible for holding, managing and
distributing the assets in the trust based on the rules you establish when you
create trust. A Trust can avoid the need for court involvement such as a
probate.
Special Needs Trusts:
Special
needs trusts allow a disabled beneficiary to receive gifts, lawsuit
settlements, or other funds without losing eligibility for “needs based” government programs. The trusts are written so that
the funds will not be considered available to the beneficiary when determining
eligibility for public benefits.
Advanced Medical Directive:
They enable you to
designate a trusted individual as your agent to carry out your specified health
care decisions including the decision to maintain or withdraw life support in
the event of your incapacity.
Powers
of Attorney:
Allow a trusted person designated
by you, to manage your financial affairs in the event of your incapacity. They
can be very broad or limited to a specific transaction and can be drafted to
last for a specified period of time or indefinitely
Medical-Planning:
Planning & Application:
Medi-Cal is a needs-based medical government program in the state of California. It is based on disability and
financial needs. The State program is administered by the California Department
of Health Care Services, which is administered locally by the Department of
Social Services. Attorneys assist clients in gaining eligibility for Medi-Cal
long-term care (for those who require skilled nursing care) as well as Medi-Cal
for those who are residing in their own homes.
Estate Recovery:
After a Medi-Cal
beneficiary passes away, the State of California is entitled to repayment for
the benefits paid during the life of the beneficiary also known as estate
recovery. It is critical that beneficiaries and their families discuss the
regulations regarding estate recovery during the life the beneficiary to
explore the ramifications of actions taken or not taken while their loved one
is receiving Medi-Cal benefits.
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