How Estate Planning and Elder Law Differ
Estate planning is appropriate in some form for everyone who has children or is over the age of 18; it sets forth the desires of the individual and answers: the question “Where do financial assets, personal property, real property, vehicles, or other items owned by an individual go when the individual dies?”
Elder law encompasses estate planning but also is often answering questions like: “How do I afford long term care?”, and “Doesn’t someone have to be completely out of money before they can apply for Medicaid.” Elder law focuses on protecting assets for personal care and support of dependents while the individual is alive and, where possible, protecting the inheritance for the individual’s heirs.
Where Estate Planning and Elder Law Overlap
Many of the documents used for elder law planning are also used in general estate planning. This includes: Durable Financial Power of Attorney; Designation of a Health Care Representative and Advance Directives; Last Will and Testament; and Trusts.
All adults over the age of 18 would likely benefit from the Durable Financial Power of Attorney, Designation of a Health Care Representative and Advanced Directives as the authority of a parent to assist with these matters ends when the child turns 18.
Trusts also play a role in general estate planning and in elder law planning, however, often the type of trust will differ to meet specific goals when dealing with elder law planning. The competent elder law attorney must understand general estate planning to know when and how to incorporate those documents into an elder law plan.
The Purpose of Elder Law Planning
The purpose of Elder Law planning is to ensure the client is provided with the correct estate planning tools in order to preserve assets and assist with quality of life. Elder law attorneys generally have some knowledge regarding many state and federal benefit programs that would assist the client with this type of planning.
Most elder law attorneys focus on the requirements of Medicaid and the impact on Medicaid guidelines when choosing estate planning tools and options. There are many decisions and options that are legal, moral, good for tax planning, good for estate planning, and simply don’t work within the Medicaid guidelines.
Proper guidance can include the timing and value of gifts one can make, the use of specialized asset protection trusts or special needs trust, and the use of other specialized tools to ensure compliance with all state and federal guidelines.
Protect Your Future and Your Legacy
At Burt Blee, our attorneys have the knowledge and experience to guide you through those difficult conversations regarding what kind of planning is appropriate at every phase of life. When the conversation turns to managing long-term care, ensuring an inheritance, or leaving a personal legacy, we can provide guidance on the appropriate types of estate planning tools to use to accomplish the unique goals of every client.
