Planning for long term care continued…
Planning for long term care
As the baby boomer generation gets older, there is going to be an increased need for attorneys that specifically work in the area of estate planning for long term care. If you or a loved one is getting to the age of 55 or older, it is time to start seriously considering an exit strategy. There are several questions you need to ask yourself:
1) Are you prepared in the event you need long term care?
2) Are you prepared in the event your spouse needs long term care? (Keeping in mind that medical facilities and nursing homes can come after you for the medical bills of your spouse- see blog posting from September 2, 2011.)
3) Do you have a succession plan for your business?
4) Will members of your family have the ability to pay off the family owned business if something were to happen to you?
5) If you don’t have a spouse, children, parents, siblings, or grandparents that are still alive, do you have a will in place that specifies who will be the executor and beneficiary of your estate?
6) Even if you do have the above family members, do you wish your estate to pass in a way different from the laws of intestacy? If so, do you have a will?
If you are unsure about the answers to any of these questions, or if you answered “no” to any of the above questions, I would be happy to discuss your specific needs in a free consultation.
Top 10 Videos Of 2015 Probate Law: What happens if the executor of a will fails to perform his or her fiduciary duty?
In this video series, Tibbs Law Office is reviewing their top 10 videos of 2015, continuing with number 3, “What happens if the executor of a will fails to perform his or her fiduciary duty?”
For more online sources on this and similar topics, please visit our firm youtube channel at:
Tibbs Law Office, LLC
1329 East Kemper Rd. #4230
Cincinnati, OH 45246
I got into probate practice on accident. It all started when I worked for my previous employer as a law clerk (after I had taken the bar but before I had received my results). Our firm had received a telephone call from a client/investor. Our client had an investment property and the person staying in the property had passed away. Our client needed us to somehow get the property released from administration so that our client could re-rent the property without having to foreclose (actually, you have to open probate to foreclose but that is a long, complicated story. He definitely did not want to foreclose if he could avoid it).
Since working on that case (and since receiving my license) I have worked on several similar cases, I have administered several estates and now my firm is expanding into estate planning. A very common question that I am asked (usually from financial advisors) is about retirement accounts and probate. People want to know the following: if they set up their retirement account to transfer on death to the designated beneficiaries, will the beneficiaries still have to pay “probate fees and taxes” on that money?
If a retirement account is set up to transfer on death, that money is still taken into consideration for federal and state estate tax purposes. However, setting up the account so that it transfers on death, still keeps a considerable amount of money in the beneficiaries’ pockets. Attorneys fees are generally calculated as a percentage of the probated and non-probated estate. The percentage paid for non-probated property is much lower than for probated assets because the amount of legal work required to liquidate and distribute non-probated assets is much less. In addition, the fiduciary of the estate gets paid according to a percentage of the probated and non-probated assets. By keeping large accounts outside of probate, you are paying less to the attorneys and the fiduciary.
Transfer on death designations keep money in the family in other miscellaneous ways as well. Less paperwork will be required for filing, which saves the family money because probate courts generally charge per page. Also, if a bond is required, the bond will cost less. Bonds are required to be secured for double the amount of the probated assets; the more in probated assets, the more the bond will cost.