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Who Handles My Affairs If I Am Unable to Do It?

One of the cornerstones of elder law planning involves a durable power of attorney that helps you safeguard against a possible inability to manage your own affairs. Many people are familiar with the benefits of having a will to allow smooth distribution of assets upon death. Others, however, skip out on planning for a possible disability that could render them unable to manage their personal, financial, and business affairs. While you’re aware of the benefits and are of sound mind, it’s a good idea to establish a durable power of attorney so that your interests are protected. canstockphoto0953453

A durable power of attorney allows you to name the person who will manage your affairs in the event of a disability. This eliminates the necessity of otherwise having a guardian appointed to help you, which requires a court procedure. Since disability can happen as a result of numerous causes, like old age, an accident, illness, or an injury, it’s simply prudent to think about who can help you manage your affairs. While disability is something that no one wants to consider, it’s a possibility that should be safeguarded against. Even if you’re approaching old age in relatively good health, you should contact an elder law professional to set up your durable power of attorney sooner rather than later.

Our offices can help you today-send us a message at info@lawesq.net.

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Benefits of an Annual Business Protection/Continuity Planning Review

Business owners are continually focused on managing risks, expanding the company, and enhancing profitability. As your company grows, it’s especially important to look at your vulnerabilities on a yearly basis to evaluate the plans you already have in place as well as future plans you may need. canstockphoto8307303

One of the primary reasons to do this every year is that your tolerance for risks you’ve identified in the past may have shifted, opening your eyes to new challenges. There are a few key questions you can ask during this annual assessment for risks and vulnerabilities, including:

  • Have you taken any actions during the past year to reduce some common risks?
  • Have your risk environment changed due to alterations in your facility or surrounding location?
  • Has the environment changed such that previously identified “low risk” concerns should now be a higher priority?
  • Has the external environment altered to impact your profitability or existence, like new transportation types, regulations, or population changes?
  • Has the structure or size of your company changed such that you may want to reconsider the internal structure and the tax implications associated with it?
  • What challenges have you found yourself facing as a business owner, and can outside experts help you manage those challenges?

Business protection planning is an important part of being able to succeed over the long run. To meet with our planning specialists for your first annual review meeting, get on the calendar by reaching out to info@lawesq.net.

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Estate Tax Repeal Bill Likely Headed for a Vote

In early March, Representatives Kevin Brady and Sanford Bishop introduced an estate tax repeal bill currently known as HR 1105. Although this isn’t the first estate tax repeal bill to appear as possible legislation, it’s quite likely to head to the House floor for a vote. It would be the first estate tax repeal bill in the last decade to make it that far. Changes on Pocket Watch Face. Time Concept.

While the specifics of the text inside are not released yet, it’s anticipated that it would suggest amending the Internal Revenue Code to repeal generation-skipping transfer and estate transfer taxes. It’s also expected that a maximum 35 percent gift tax rate would become permanent alongside a $5 million lifetime gift tax exemption.

Repealing the estate tax does have traction in the public, especially because it’s perceived to be so harmful to American businesses and farms considered the backbone of the economy. Combined with the fact that the estate tax brings in under 1 percent of the government’s revenue, the Representatives who introduced the bill believe that it’s time for changes with the estate tax. The bipartisan legislation has already moved though subcommittee hearings, a Senate introduction of the bill, and the vote on the House floor.

To learn more about possible changes in the estate planning sphere, contact us to set up a meeting for review of your plans. Reach out to us at info@lawesq.net.

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Should I Just Give My Assets to My Kids To Qualify for Medicaid?

In the event that you or your spouse are facing a long-term care crisis and are concerned about spending down your assets quickly in order to qualify for Medicaid, it’s important to be aware of some of the potential pitfalls of acting too fast without carefully considering your options.

Individuals who are not familiar with the Medicaid qualification process might think that it’s a safe bet to pass on assets to children in order to reduce the volume of assets linked to the individuals attempting to qualify. Passing on these assets to children may be done with good intentions, but it can actually do more harm than good if you’re not careful. canstockphoto1739163

One of the disadvantages associated with transferring these assets is that doing so gives you no control over them in the future. Imagine a scenario where the child is sued and all of the assets are taken. Although this can be disheartening to think about, it’s also important to consider that giving away too many assets in an attempt to qualify for Medicaid can actually trigger a penalty. Medicaid looks back at gifts over the previous five years to determine if an individual has attempted to disperse assets in order to qualify for the government program. Since Medicaid is geared towards low-income individuals, if it is found that you transferred assets too aggressively in an attempt to qualify, a penalty may be calculated to determine the amount of nursing home care that could have been paid for with that gift. The applicant will be ineligible for Medicaid during a particular period if this is determined.

While Medicaid is a critical program for most individuals facing a long-term care crisis, you need to apply for it and prepare for it under the guidance of an experienced elder law professional. Don’t take any actions until you’ve consulted with an expert- email us at info@lawesq.net.