(Islander Media Group, Inc.) - An estate plan is like an umbrella. If you have one, you aren’t going to need it. If you don’t, the skies will open up and a flash flood will occur. It’s Murphy’s Law. In my practice, it is almost always a calamity or a medical diagnosis that begins the process.
I’m guessing 35% of my clients plan ahead; otherwise it’s a phone call after a fall, heart attack or stroke. When that happens, everyone’s stress increases, and bad decisions are often made.
My legal practice is Elder Law, Estate, and Medicaid planning. The practice keeps me very involved in the elder community, which I love. Many of my clients or callers believe that an estate plan is for someone with a boatload of money and that’s not true. Prince and Aretha Franklin had millions of dollars, but no estate plan. In cases like that, the lawyers make the money. If you have $50,000 and no estate plan, the lawyers still make money, just less of it.
An estate plan can be created in many different forms, and depending on the amount of assets, no wills or trusts are needed. There is also the “if you sign you will die” superstition and people won’t sign a will or a trust for fear of death. This is after they’ve paid the lawyer!
The best real-world example is a businessman who sold his first company for millions and bought another with a partner. The partnership agreement required new estate plans for both men. One partner signed his, the superstitious one did not, and died two years into a very successful business. Again, the lawyers made all the money! Plus, his superstition was wrong, he died, whereas the other partner who signed his estate plan, is still alive.
Do not get caught up in the “do I need a Will or a Trust” hamster wheel. Just call someone you trust and start the process. You can always change your mind (unless it’s an irrevocable trust) and amend the document.
The other myth is “Medicaid is for poor people.” It is a fallback program for children and families who cannot afford medical care, and it’s also the best tool for elders without long-term care insurance who need twenty-four (24) hour assistance. Florida has several ways to qualify, including a program that allows Medicaid assistance in the home. There are several legal instruments for families (including those worth a million dollars or more) that can assist when a loved one has a medical calamity.
What’s important is that you do something. An estate plan sets you free to go live whatever life you wish. Your umbrella is with you, and rain or shine, you will be fine! Medicaid is the tool you use when twenty-four-hour care is necessary but unaffordable.
By H. Frances Reaves, Esq. / Special to Islander News
Aug 13, 2023
About H. Frances Reaves, Esq.
An estate and Medicaid planning attorney, Frances began her legal career as a litigator/lobbyist. After 15 years in Maryland politics, she moved back to Key Biscayne and founded Parent Your Parents, an Elder Advocacy group.
She was inspired by her parents’ struggle with the “Elder Bureaucratic System” and realized help was needed.
