On December 20th, 2019, President Trump enacted the Setting Every Community Up for Retirement (“SECURE”) Act. Effective January 1, 2020, the SECURE Act, among other things, changed the age at which you are required to start taking your required minimum distribution (“RMD”) from your individual retirement accounts (“IRAs”). Read more
As an elder law attorney, I am frequently asked questions, the answers of which have been taken for granted during the ordinary course of business. The common denominator among these questions surfaces from a misunderstanding of words and phrases used daily. I thought it would be a good idea to write a piece explaining some of the words and terms we use that generate questions, ultimately assisting you in moving forward with your estate planning, or perhaps, reviewing the plan you have already put in place. Read more
I’ve seen plenty of families disinherit a disabled child by leaving the family assets to non-disabled children under the theory that those assets will be used to take care of the disabled child. This is unnecessary and riddled with complexities. For instance, what happens if you leave your assets to your daughter thinking that she will take care of your disabled son and then your daughter dies, gets divorced, spends the money or becomes disabled herself. Read more
The need for a guardianship really depends on the facts and circumstances of each case, however, many guardianship cases result from the absence of a properly drafted power of attorney (“POA”) and statutory gifts rider (“SGR”). In order to sign these documents, one must possess contractual capacity. Most people diagnosed with the onset of dementia or Alzheimer’s still have contractual capacity. If, however, a diagnosis is received mid to late stage, capacity might be diminished. Determining capacity from a legal perspective involves the judgement of the attorney and follows a series of questions asked by the attorney.
The underlying circumstances giving rise to the need for a POA, SGR or guardianship are usually centered around financial transactions. For instance, a person having Alzheimer’s might need care, whether at home or in a nursing home, and in order to pay for the exorbitant costs of such care, Medicaid eligibility is sought. Medicaid eligibility involves accessing the applicant’s financial assets and moving those assets to family members or trusts. If the applicant no longer has the requisite capacity to sign a POA or SGR, which would give another person the ability to handle these financial matters, a guardianship is needed.
Guardianships can be avoided with advanced planning. If you or someone you know has the onset of a cognitive impairment, it is imperative that you contact us to draft a POA and SGR. In the absence of those documents, we can be retained to commence a guardianship proceeding.