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7/27/2019 Estate Planning for Low Income Seniors PPT
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5/21/2009 1
Estate Planning forLow Income Seniors
An Introduction
Sarah Shena, Kings/TulareArea Agency on Aging
5/21/2009 2
First Things First:
Whos in the audience? How manylistening have done estate planning?(AHCD &/or Financial POAs? Wills?
Trusts?)
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5/21/2009 5
Overview
Sense of urgency depends onage/health (& sometimes culture)
Issues are more complicated thanmost clients expect.
Boomer clients aremore likely to useInternet resources.
Culture
Health
Net-
work
DebtsAssets
Law
AgePlanFamily
5/21/2009 6
Overview, p. 2
Typical scenarios:
Independent couple that arrives alone
Couple that brings (or is brought by) oneof their kids
Spouse who comes alone (CAUTION: otherspouse may disagree or be dementing)
Single person (alone)
Single person who brings (or is broughtby) a kid or friend
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5/21/2009 7
Gathering Client Information
Who is the Client? (Clarify at start)Is translator needed? Advisable touse kid?
Client Capacity
Capacity to do what?
Sometimes client/family will raise issue.
See Resources list re assessment
resources.
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Gathering, cont.
Nature of Family
Partner (reg. domestic, marital,nonmarital)?
Child(ren) & child(ren) of deceasedchild(ren)?
If child comes w/parent, do you need release
to answer childs questions later?Are any disabled according to SSA? If so,Special Needs Trust may be warranted.
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Gathering Client Information, p. 2
Assets & Title InfoCash or equivalents
Vehicle(s)
Manufactured home
Real property (aka real estate)
Other
Knowing title is crucial; Will cannot
control accounts that have jointowner or beneficiary designated.
5/21/2009 10
Gathering, cont.
Debts
Medi-Cal?
Mortgage or reverse mortgage?
Existing estate plan
Does client have (or remember
having) Will, Advance Health CareDirective, POA for finances, orTrust?
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5/21/2009 11
Gathering, cont. (sample)
Asset Title
House H&W, JT
Checking W, H as bene
Savings H&W, no bene
IRA W, H as bene
Car H&W
Motor Home H
5/21/2009 12
Gathering Info, cont.What does client want?
Clients can propose verycomplicated schemes but are usuallyopen to alternatives.
Emphasize practicality (e.g., if step-siblings dont get along, dont makethem co-executors; if oldest is
terrible at paperwork or doesnt getalong well with the other kids, useanother for executor)
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Gathering, cont.
May need to remind client: beneficiarydesignation or joint ownership trumps anystatement in a Will.
Avoid trap of whatever you think is best
OK to say Some clients but give morethan one example. Explain default plan(intestacy scheme).
Beware if someone client brought to
appointment is making suggestions!
5/21/2009 14
Reviewing OptionsConsider simplest possible tool thatachieves clients goal(s)
Beneficiary designation
$ & stock accounts (Caution client whowants to designate, or has designated,one child of several. Often this meansthe designee is supposed to share withsibs)
Vehicle (one owner to one bene.), VC4150.7
Manufactured home (HCD form 488.4)
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5/21/2009 17
Options, cont.
Statutory Will, cont.Allows client to
nominate asset custodian for benes up to 25(client picks age, 18-25), & guardian forminor children, if applicable,
nominate executor (1, & 2 alts), and
waive bond.
Does not provide for unequaldistribution, except of cash (rare), or co-executors.
5/21/2009 18
TYPE OF ASSET TOOLS FOR DISTRIBUTION
Trust(Aka Living Trust, RevocableLiving Trust, or Probate-Avoidance Trust)
In Charge = Trustee
Real Estate
In Charge =Executor
Will
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Example
Marina and Sam come to appointmentwith their daughter, Yelena, who helpsMarina complete intake form. Yelena walkswith braces and is their only child.
Yelena reports that her parents own adebt-free manufactured home and havesmall checking account.
Marina says she wants to leave the homeand all her assets to Yelena, who has alearning disability.
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Example, p. 2 Questions/ConcernsDoes either Client have capacity? (Whydidnt Sam offer info? Why did Marina needhelp with form?)
What is Clients partner status?
Who is on title to manufactured home?
Caution when there is a disabled child;avoid benefit interference, or advise client
in writing to seek advice about planning toavoid it. (Senior Legal Hotline may be good
source.)
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Example, p. 3 (Concerns, cont.)
Why doesnt Marina want to leave allto Sam?
If spouses want each other asexecutor, who can be alternate? Is
Yelena able?
Would you have different concerns ifMarina & Sam had three children andall other facts remained the same?
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Preparing Documents
If you are going to do estate planning, havea basic Will form for use when StatutoryWill is not useful.
Discuss importance of finishing the task. Ifpossible, welcome calls w/questions later.
If document not completed in office, givewritten instructions (incl. definition of
witness)Be prepared for clients who cannot read orwrite
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Vocabulary
Bond: Insurance executor must buy forprotection of the heirs (unless waived bytestator)
Estate: Assets client leaves at death,minus debt
Right of representation: How clients usuallywant grandchildren to inherit if clients childdies before client. Childs kids(grandchildren) share equally whateverwould have gone to the child.
5/21/2009 26
Other Resources
Assessment of Older Adults withDiminished Capacity, by ABA Comm.On Law & Aging (www.abanet.org/aging)
Alzheimers Diagnostic ResearchCenters (I refer to UCSF Fresno center)
Nolo.com (articles re topics like
difference between Will & Trust)California Advocates for NursingHome Reform (& CANHR.org, (800)
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Where to Get More Info, p. 2
California State Bar websitepamphlets (www.calbar.ca.gov, ororder [email protected])-- Click Public Services, Consumer Information.Titles include Do I Need An Estate Plan?,Do INeed A Will?,Do I Need A Living Trust?,andFAQs -- Statutory Will Form.
Senior Legal Hotline website(seniorlegalhotline.org), Fact Sheets,
Guides & Legal Forms (incl. Yourhealth care: Who will decide if you can't?)
5/21/2009 28
Thank you!
Sarah ShenaKings/Tulare Area Agency on Aging
[email protected](559) 730-2551