Estate Planning for Low Income Seniors PPT

7/27/2019 Estate Planning for Low Income Seniors PPT

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Estate Planning forLow Income Seniors

An Introduction

Sarah Shena, Kings/TulareArea Agency on Aging

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First Things First:

Whos in the audience? How manylistening have done estate planning?(AHCD &/or Financial POAs? Wills?

Trusts?)


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Overview

Sense of urgency depends onage/health (& sometimes culture)

Issues are more complicated thanmost clients expect.

Boomer clients aremore likely to useInternet resources.

Culture

Health

Net-

work

DebtsAssets

Law

AgePlanFamily

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Overview, p. 2

Typical scenarios:

Independent couple that arrives alone

Couple that brings (or is brought by) oneof their kids

Spouse who comes alone (CAUTION: otherspouse may disagree or be dementing)

Single person (alone)

Single person who brings (or is broughtby) a kid or friend


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Gathering Client Information

Who is the Client? (Clarify at start)Is translator needed? Advisable touse kid?

Client Capacity

Capacity to do what?

Sometimes client/family will raise issue.

See Resources list re assessment

resources.

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Gathering, cont.

Nature of Family

Partner (reg. domestic, marital,nonmarital)?

Child(ren) & child(ren) of deceasedchild(ren)?

If child comes w/parent, do you need release

to answer childs questions later?Are any disabled according to SSA? If so,Special Needs Trust may be warranted.


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Gathering Client Information, p. 2

Assets & Title InfoCash or equivalents

Vehicle(s)

Manufactured home

Real property (aka real estate)

Other

Knowing title is crucial; Will cannot

control accounts that have jointowner or beneficiary designated.

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Gathering, cont.

Debts

Medi-Cal?

Mortgage or reverse mortgage?

Existing estate plan

Does client have (or remember

having) Will, Advance Health CareDirective, POA for finances, orTrust?


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Gathering, cont. (sample)

Asset Title

House H&W, JT

Checking W, H as bene

Savings H&W, no bene

IRA W, H as bene

Car H&W

Motor Home H

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Gathering Info, cont.What does client want?

Clients can propose verycomplicated schemes but are usuallyopen to alternatives.

Emphasize practicality (e.g., if step-siblings dont get along, dont makethem co-executors; if oldest is

terrible at paperwork or doesnt getalong well with the other kids, useanother for executor)


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Gathering, cont.

May need to remind client: beneficiarydesignation or joint ownership trumps anystatement in a Will.

Avoid trap of whatever you think is best

OK to say Some clients but give morethan one example. Explain default plan(intestacy scheme).

Beware if someone client brought to

appointment is making suggestions!

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Reviewing OptionsConsider simplest possible tool thatachieves clients goal(s)

Beneficiary designation

$ & stock accounts (Caution client whowants to designate, or has designated,one child of several. Often this meansthe designee is supposed to share withsibs)

Vehicle (one owner to one bene.), VC4150.7

Manufactured home (HCD form 488.4)


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Options, cont.

Statutory Will, cont.Allows client to

nominate asset custodian for benes up to 25(client picks age, 18-25), & guardian forminor children, if applicable,

nominate executor (1, & 2 alts), and

waive bond.

Does not provide for unequaldistribution, except of cash (rare), or co-executors.

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TYPE OF ASSET TOOLS FOR DISTRIBUTION

Trust(Aka Living Trust, RevocableLiving Trust, or Probate-Avoidance Trust)

In Charge = Trustee

Real Estate

In Charge =Executor

Will


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Example

Marina and Sam come to appointmentwith their daughter, Yelena, who helpsMarina complete intake form. Yelena walkswith braces and is their only child.

Yelena reports that her parents own adebt-free manufactured home and havesmall checking account.

Marina says she wants to leave the homeand all her assets to Yelena, who has alearning disability.

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Example, p. 2 Questions/ConcernsDoes either Client have capacity? (Whydidnt Sam offer info? Why did Marina needhelp with form?)

What is Clients partner status?

Who is on title to manufactured home?

Caution when there is a disabled child;avoid benefit interference, or advise client

in writing to seek advice about planning toavoid it. (Senior Legal Hotline may be good

source.)


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Example, p. 3 (Concerns, cont.)

Why doesnt Marina want to leave allto Sam?

If spouses want each other asexecutor, who can be alternate? Is

Yelena able?

Would you have different concerns ifMarina & Sam had three children andall other facts remained the same?

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Preparing Documents

If you are going to do estate planning, havea basic Will form for use when StatutoryWill is not useful.

Discuss importance of finishing the task. Ifpossible, welcome calls w/questions later.

If document not completed in office, givewritten instructions (incl. definition of

witness)Be prepared for clients who cannot read orwrite


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Vocabulary

Bond: Insurance executor must buy forprotection of the heirs (unless waived bytestator)

Estate: Assets client leaves at death,minus debt

Right of representation: How clients usuallywant grandchildren to inherit if clients childdies before client. Childs kids(grandchildren) share equally whateverwould have gone to the child.

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Other Resources

Assessment of Older Adults withDiminished Capacity, by ABA Comm.On Law & Aging (www.abanet.org/aging)

Alzheimers Diagnostic ResearchCenters (I refer to UCSF Fresno center)

Nolo.com (articles re topics like

difference between Will & Trust)California Advocates for NursingHome Reform (& CANHR.org, (800)


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Where to Get More Info, p. 2

California State Bar websitepamphlets (www.calbar.ca.gov, ororder [email protected])-- Click Public Services, Consumer Information.Titles include Do I Need An Estate Plan?,Do INeed A Will?,Do I Need A Living Trust?,andFAQs -- Statutory Will Form.

Senior Legal Hotline website(seniorlegalhotline.org), Fact Sheets,

Guides & Legal Forms (incl. Yourhealth care: Who will decide if you can't?)

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Thank you!

Sarah ShenaKings/Tulare Area Agency on Aging

[email protected](559) 730-2551