When Californians apply for Medi-Cal, which is our state’s version of Medicaid, they often believe that by listing their home as exemption, they are protecting it from being taken to repay the benefits they’ve received from Medi-Cal. However, that’s not the case. Just because an asset is listed as exempt on the application, that doesn’t mean that it’s exempt from benefits recovery action.

If you or a loved one needs to apply for the Medi-Cal program, there are ways to protect your home for yourself and your heirs. The people at Medi-Cal can’t offer advice on how to exempt your home from a Medi-Cal lien, but a California estate planning attorney with experience helping seniors with their unique issues can provide valuable guidance. Following are several options:

— An irrevocable living trust: This type of trust lets you protect your home from a Medi-Cal lien without having to give it to your children, who may not yet want it or be able to handle the mortgage. In California, unlike other states, you can’t be ruled ineligible for Medi-Cal because you transferred your home and other exempt assets before or during the Medi-Cal eligibility period.– Give the home to a family member: If you have a child or other trusted family member who’s financially able to afford the maintenance and taxes on the home, as well as pay any remaining mortgage, this is an option. However, the person to whom you give the house wouldn’t fare as well under the tax code as if he or she inherited it after your death.– Life estate: Under California law, a life estate allows a person to keep a property for the remainder of their life and then pass it to their heirs. This lets them avoid a Medi-Cal lien on the property, while allowing their heirs to take advantage of the Internal Revenue Service “step-up basis” so that they won’t be taxed on any increase in value of the property. They only face taxes on any increases from the property’s fair market value at the time of the homeowner’s death.

Your home is likely the single most valuable asset you have, so it’s important to protect it. That’s why it’s wise to seek legal guidance before applying for Medi-Cal.

Source: A Place for Mom, “How Can You Protect Your Assets from a Medicaid Lien?,” Kimberley Fowler, accessed Nov. 03, 2016

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If a parent dies and you’re the executor of the will, one of the first things you have to do is take stock of exactly what is in the house. The will may lay out what possessions go to which heirs, or it may give you more general directions about splitting things up evenly. Either way, protecting those assets after a parent’s passing is crucial, even if is means taking the drastic step of changing the locks on the family home.

Who has the keys?

One issue that can arise is that you may not actually know who has the keys. Was your parent’s key the last one left? Did he or she give keys to neighbors in case of an emergency? Were any friends and family members given these spare keys? Which of the other heirs have made copies over the years? If you know the answers and are 100 percent confident, you may be able to gather up those dispersed keys and be done with it, but it’s often easier just to change the locks so that you know beyond a shadow of a doubt that you and only you can go into the home.

Missing assets

If you don’t change the locks, you could start going through things and find out that certain assets are missing. Since you can’t guarantee that a brother, sister, or other family member didn’t come in and remove them before you started taking inventory, you then don’t know if the will is out of date – maybe your parent sold the assets at a garage sale years ago and forgot to update the paperwork – or if someone is trying to sneak specific assets out so that no one else can get them.

Asset arguments

These missing assets can also easily lead to arguments. If one family member decides to take something, but the will you’re trying to execute leaves it to someone else, you then face the complicated task of taking the assets back and giving them to the right person. Distributing assets from a centralized location can be hard enough when there are disagreements; it’s harder when you have to physically confiscate them first.

For example, maybe your father had an old sailboat. He decided to leave it to your youngest sibling since everyone else was already getting something with equal monetary value. That sibling is planning to sell the boat. However, your eldest sibling has memories of riding on the boat with dad and wants to keep it in the family for sentimental reasons. Without consulting the will, he or she takes the boat and brings it to a summer cottage. As you can imagine, going to retrieve it can be complicated, costly, and highly emotional. You avoid all of this if you make sure the right people get the right assets from the very beginning.

Telling everyone

If you are going to change the locks, experts note that you should tell everyone. Send a text message, an email message, or a letter. That way, you have it all in writing and you know everyone understands what’s going on. Tell them you want to protect the house from thieves – remember, you don’t know who has spare keys outside of the family – and get everything in order in a controlled environment. Telling them helps to keep lines of communication open, it keeps your siblings from feeling like you’re trying to pull a fast one, and it helps you execute the will quickly, efficiently, and accurately.

As you do this, be sure you know the rights, responsibilities and powers you have as an executor of the will. Don’t let anyone push you into anything that goes against the will, and be sure that you understand every detail in this legally-binding document.

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For California families who own farms or ranches, estate planning is essential to help ensure that the businesses they’ve worked so hard to build and maintain continue on successfully when they’re no longer around. However, as with all types of estate planning, too often it gets neglected.

Succession planning, just like all estate planning, involves contemplating one’s own death or at least a time when they’re no longer able to manage their affairs. Many people also put it off because they think it’s too costly. However, as one California estate planning attorney notes, failure to develop a plan “could be disastrous for heirs when it comes to control of the assets and taxes.” He says that leaving matters for your children to fight over in court “is about the worst thing you can do.”

In addition to laying out your intentions for your business and keeping the farm or ranch in the family, a properly-drafted estate plan can save your heirs from having to pay unnecessary taxes down the line. It’s essential, as with any estate plan, to keep it updated as changes to your family occur.

Estate planning for farmers and ranchers is unique because their children may not be willing or able to carry on the family business. For children who aren’t involved in continuing the family business, there are ways to leave them money, such as a life insurance policy or irrevocable life insurance trust.

A California estate planning attorney with experience in developing plans for farms and ranches can help you develop a plan that is right for your business and your family. By doing this, you help ensure that the land and business you love will be in good hands when you’re gone.

Source: AgNet West, “Succession Plans can Assure Farms Stay in the Family,” Oct. 20, 2016

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Too often, people who don’t have children don’t have a will or other estate planning documents in place. However, in many cases, these are the people who need them the most. Even if you don’t have children, you likely would prefer that other family members, favorite charities or even close friends get all of your money rather than have the government take a big chunk out of it, which could happen if you die without a will.

Even if you’re married, there’s no guarantee that your spouse won’t predecease you. You should have contingency beneficiaries if he or she is no longer alive when you die. The question to ask yourself, as one California certified public accountant puts it, is “If today were your last day on earth, who would get your stuff?”

Beyond designating who will inherit your assets, it’s also essential to have a health care directive in place as well as a durable power of attorney to carry out that directive. This may or may not be the same person you choose to be your POA for financial matters. Again, if you don’t have children, it’s particularly important to ensure that someone you trust will be taking charge of these matters. A health care directive allows you to lay out your wishes for your care if you’re not in a position to give direction yourself. It can and should include matters like what lifesaving measures you want taken (or not) and whether you wish to donate organs.

Along with your health care directive, your estate plan should include a Health Insurance Portability and Accountability Act form that allows your health care POA to easily access your medical records. This makes things more convenient for that person and prevents unnecessary delays and costs for the person overseeing your health care.

An experienced California family law attorney can work with you to help ensure that you have all of the documents in place to detail your wishes, as well as agents designated to carry them out. It’s important to have alternates in case the person you designate is unable to carry out that job. By having a detailed estate plan in place, you also help prevent inconvenience, expenses and often conflict for your loved ones in the days, weeks and months after you’re gone.

Source: U.S. News & World Report, “No Kids? You Still Need an Estate Plan,” Molly McCluskey, Oct. 14, 2016

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Estate documents are essential to uphold your voice on important matters and your family’s future after you have passed on. These documents should stay safe and easily accessible to your family when you can no longer be there to guide them. There is no point in having an  estate plan if no one will be able to find it. Here is what you should know.

Make copies of your estate documents

Over the years it is easy for papers to slip into the trash or be forgotten in a dusty box; that is why you should give copies to involved parties. Photocopies are better than nothing for reference. When you are signing the estate plan with your lawyer then you might as well create a couple more official copies.

Give the copies to your spouse and family members who will take over a majority of the estate once you are gone. Most importantly your executor and lawyer should have a copy of your estate plan. They will be able to distribute copies to anyone in the family whom is involved in the estate and also will have the power to enforce your wishes.

Store the original copy in a safe yet accessible location

Many people store their estate plan in the safest place possible without realizing that others might have trouble accessing it in the future. Some possible places to store your estate plan are:

Safety deposit box: A safety deposit box is one of the more popular options for estate planning documents. Many people do not know that if the account is only under their name that no one will be able to access it after they pass on without a court order. Only store your estate documents in a shared account. Make sure that your spouse or a family member has access.

Locked safe: Another great place for your estate plan is a locked safe at home. Make sure the safe is both fire and water proof. It must be bolted to the ground or wall so that it cannot be stolen. If the box requires a lock combination then make sure to share that information with someone you trust.

If you have not yet created an estate plan then contact an attorney experienced in estate planning. They will be able to help guide you through the process and keep your documents safe.

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Most single parents have little time to think about estate planning. If they’re relatively young and healthy, many do not. However, things can change in the blink of an eye. That’s why it’s essential to ensure that you’ve made arrangements not only to ensure that your children are properly cared for, but that your assets go to the beneficiaries you wish.

It’s also essential to have legal documents in place to stipulate who will make health care and financial decisions for you if you are incapacitated and unable to speak for yourself. If you had an estate plan in place when you were married, that likely needs to be changed, unless you want your ex-spouse to make those decisions for you.

At the very least, everyone should have a will to stipulate whom you want to care for your children and how your assets will be divided. Don’t just assume that those things will be decided as you wish them to be. When someone in California dies without a will, these things end up being decided by courts, and the whole process can get messy and expensive for family members left behind.

Besides a will, if you’re single, it’s probably advisable to have a health care directive in place that details your wishes about who will make medical and end-of-life decisions. A durable power of attorney is the document you use to grant authority to someone to manage your financial obligations and assets if you’re unable to do so.

An experienced California estate planning attorney can help you determine which documents you should have based on your own unique situation. He or she can also provide advice on other actions that you should take to ensure that your wishes are carried out and that your family is saved time, money and conflict after you’re gone.

Source: Conejo Valley Happening, “The Money Savvy Mommy: Why You Need a Will,” Mira Reverente, accessed Oct. 13, 2016

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While most individuals are familiar with the secular features of an estate, they may not realize that their religious concerns can be addressed during estate planning. Religious practices and beliefs can serve as a guide in choosing fiduciaries, distributing funds and resolving disputes.

Here are three ways in which religious affiliation may be addressed in the estate:

1. Choosing fiduciaries

Those selected to promote the best interests of the estate and its beneficiaries can be chosen for adherence to a religious institution. Individuals with close ties to beneficiaries should be considered for the role because the fiduciary is responsible for keeping the beneficiaries fully informed of estate matters. Should the fiduciary be given the role of the trust protector, he can apply knowledge of religious practices to disburse funds or resolve conflicts along religious lines.

2. Disbursing funds

As a trust protector, the fiduciary may designate which funds will be used for tuition for parochial schools, mission trips, scholarships or donations to an organization that supports the goals of the religious institution. Additionally, he can determine which funds should be distributed according to religious requirements, such as tithing. Certain faiths have established protocol for disbursing an inheritance. Directions can be incorporated into a will to reflect religious directives.

3. Conflict resolution

Should conflict arise over the fund or asset disbursement, religious mediators can be used to resolve issues. Such intermediaries are responsible for resolving conflicts along three lines: the technical, humane and spiritual. Technical knowledge of mediation is used to guide the proceedings. The mediator also needs to be aware of the impact that emotional and personal issues have on the problem. While acknowledging the human element, the faith-based mediator ultimately relies on religious guidelines to establish a just outcome. For those of the Hindu, Jewish, Christian, Mormon or Islamic faith, the resolution of conflict will vary according to accepted religious laws.

Religious beliefs can also guide the drafting of living wills and investment protocols. Those interested in incorporating faith-based instructions in their estate should seek the advice of a knowledgeable attorney.

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Most of us have heard stories of young people who were left a considerable amount of money by their parents, and therefore never felt the drive to succeed on their own merits. Too often, it doesn’t end well for them.

That’s why many people who have a considerable estate choose to leave it to other beneficiaries, like charities. They want their children to work for what they have, just as they did. They know the satisfaction and self-esteem that this can bring.

It’s certainly laudable to leave a considerable portion of your assets to charities and others who are doing good work in the world. However, there are other options if you want your children to make their own way in the world and become financially and socially responsible citizens. One is to designate that they will not receive their inheritance until their retirement years.

One financial advisor explains that by leaving them money for their retirement, you’re still requiring them to strive for success, manage their money carefully to buy a home and put their kids through college. However, you’re also taking some of the burden of saving for retirement off of their shoulders.

As with all estate plans, it’s important to discuss this type of plan with your children. They should understand what your goals and wishes are for them. You don’t need to tell them exactly how much money their inheritances will involve.

Depending on how the money is invested, it could be worth considerably more once they receive it than it does at the present time. However, knowing that they’ll have a comfortable nest egg can help them spend more of their earnings to have a more comfortable lifestyle leading up to their retirement.

Your California estate planning attorney can help you draft or change your estate plan to help your children and other loved ones benefit from the assets you’ve accumulated while working to help ensure that they don’t derail their opportunity for an independent, productive future.

Source: Kiplinger, “How to Help Your Children Financially Now Without Giving Them Any Money,” Bruce S. Udell, accessed Sep. 28, 2016

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It’s a reality of life: you watch your parents age, and as they do so, they become less able to do things on their own. If your parent is also dealing with dementia or Alzheimer’s, it can be heartbreaking to watch. Not only is their physical ability declining as they age, but their cognitive functioning is becoming less and less strong. You worry about keeping him or her safe, and wonder if a nursing home with 24-hour care would be the best for his or her health.

Some parents can be stubborn and refuse to go to a nursing home, especially if they are at the point of incapacitation, when they don’t understand the decision at all. It may be helpful to have a conversation with their doctor to fully understand their medical state, and then decide what is best for them. If you need to begin making their health care, personal and financial decisions for them, an attorney can help you set up a conservatorship.

A conservatorship is set up when an adult is unable to take care of him or herself or their own finances. A court can appoint you or another family member as the conservator, which is the person who manages your parent’s living arrangements, medical needs and decisions, personal care and other things like financial decisions.

Where can I start if I am interested in setting up a conservatorship for my parent?

Your parent’s doctor can evaluate his or her ability based on age, disability or disease such as Alzheimer’s. A geriatric psychiatrist may also need to give an opinion. The report from the doctor or doctors can be submitted to the judge handling the conservatorship case, on a form called a “capacity declaration.” The declaration includes the doctor’s opinion on your parent’s lack of physical ability or mental capacity. Sometimes, a judge does not need a doctor’s report in order to see that your parent has lost his or her capacity.

A probate or estate planning attorney can help you find out what other initial steps to take to get the ball rolling in doing what’s best for your parent. Although it can be difficult to think of your parent’s declining abilities, there is hope for you to be able to give them the best scenario for their care and living arrangements.

What are the benefits of setting up a conservatorship?

Because your parent has lost his or her capacity to perform basic life functions or manage his or her care or finances, there are many advantages to them in having you become their conservator. In addition to helping you get them into a safe and caring nursing home, other benefits are:

• Improving the quality of life for your parent
• Doing what’s best for your parent’s personal affairs
• Staying on top of your parent’s finances so there are no negative financial consequences due to their incapacitation
• Protecting your parent’s assets and estate
• Protect your parent against elder abuse

Putting your parent in a nursing home can be one of the toughest decisions you make, even though you know it is what is best for them and their health. Retaining an attorney who is skilled in the area of conservatorships can make the process much less stressful, so you can focus on you and your parent’s health and happiness.

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When you sit down with your estate planning attorney to draft your will and other estate documents, you may go in with the presumption that you will leave each of your children an equal share of your estate. However, equal isn’t necessarily fair.

There are many reasons why you may determine that it’s appropriate to leave some children more than others. For example, you may choose to leave one child more money, property or other assets if that child has:

— Taken a larger role in caring for you and/or your spouse as you’ve gotten older

— A larger family to care for or has had to struggle more to make ends meet

— Special needs that require caregivers and/or other treatment

— Participated in building a family business, perhaps for little pay in the early days

— Received more financial help from you over the years than the others

Sharing your wealth with your children doesn’t have to wait until you’re gone. If you’ve got enough saved up for your own retirement and care, you may choose to disburse some of your funds to your kids earlier.

You may start out with an equal amount designated for each child, both during your life and as an inheritance. If one child needs money earlier, you may choose to provide them some of that allotment sooner rather than later.

Every family is unique. It’s best to discuss your wishes for your adult children and their needs with your California estate planning attorney. He or she can help you determine the best way to fulfill your goals for your family.

Source: Green Bay Press-Gazette, “Dividing your estate: Equal isn’t always fair,” Carissa Giebel, Sep. 26, 2016

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