Monthly Archives: July 2021

You are Never Too Young to Start Estate Planning 

Most people between their 20s to 40s think that they have their entire lives ahead of them. For this reason, most younger individuals do not engage in estate planning. Sadly, many older individuals hesitate to put together their estate plans. No matter how old you are, though, you have nothing to lose and everything to gain from putting together a solid estate plan.  There are several good reasons why a younger person should have an estate plan in place that includes an advance health care directive, a durable power of attorney, and a will and last testament, for starters. In the hopes of convincing younger individuals to engage in estate planning sooner, the following are some of the tricky situations that can be avoided by adequately planning for the future today.  The Capacity to Choose One of the most common reasons why people decline to create a will is that they believe they do not have enough assets to justify needing a will and last testament in order to pass them on. Another common reason why people decline to create an estate plan is they are not married and do not have kids, so they believe it is not important [...]

2021-07-23T15:18:30+00:00Tags: |

Estate Planning Challenges That Come With Cohabitation

Cohabitation without marriage has become an increasingly common way of life for people in the United States. For older individuals, cohabitation is often intended to be a way to enjoy the companionship of another without risking losing assets for the future generation. While attempting to preserve assets, however, cohabiting couples frequently overlook common pitfalls when putting together their estate plans. The following are some estate planning challenges that go hand-in-hand with cohabitation.  Challenges Involving Medicaid Cohabitation does not offer the same protections under Medicaid rules as marriage. Under Medicaid rules, a person must have less than $2,000 in resources to qualify for Medicaid. Some exceptions, however, exist to this rule which permit the protection of assets. One exception to this limit involves community spouses. When a person is institutionalized at a facility, the spouse who still resides at home cannot end up destitute. Substantial allowances are permitted for community spouses. Community spouse exemptions do not include unmarried partners who lived together. Allowances are only for spouses.  Lack of Legal Protection When a cohabiting person passes away, no legal system exists to protect the surviving cohabitor as if they were a surviving spouse. After all, when a married person passes away, [...]

2021-07-23T15:10:47+00:00Tags: , |