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@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• When Kansas City residents consider creating an estate plan or need answers to elder law questions, there are certain myths that usually become an issue
Elder Law Myths
@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
Elder Law Myths
• The reason there are misconceptions regarding elder law is that most people are unfamiliar with this particular area of the law
• In this presentation, we will dispel many of the common myths regarding elder law issues
@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
Spouses are not always automatically authorized to handle each other's affairs
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
Spouses are not always automatically authorized to handle each other's affairs
• A common fallacy is that spouses will automatically have the authority to take over each other's affairs, if the need arises
• However, that is not true in every situation
• If there is an account that is not in your spouse's name, you may not automatically be able to gain access
• One of the most important estate planning tools, for this reason, is a power of attorney
5 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
The need for a power of attorney
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• A power of attorney is required in order to provide authority to someone else to manage your affairs in the event you are unable to do so
The need for a power of attorney
@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
The need for a power of attorney
• Establishing a power of attorney is particularly important as we age, as the aging process often leads to the decreased ability to handle your own affairs
• Therefore, even if you are married, you need to take the steps necessary to create a power of attorney
8 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
You cannot simply give away your house or property in order to qualify for Medicaid
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• Many people are under the impression that they can simply give away their assets in order to qualify for long-term care coverage through Medicaid
You cannot simply give away your house or property in order to qualify for Medicaid
@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
You cannot simply give away your house or property in order to qualify for Medicaid
• This myth often causes the most trouble for clients
• Although to qualify for Medicaid benefits, you must meet certain asset restrictions, it is important to remember Medicaid imposes a five-year asset transfer restriction
• In other words, if you apply for Medicaid and you transfer assets in order to qualify within the previous five years, you will not qualify
11 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
You don’t have to have a big estate to need estate planning
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• Unfortunately, many clients believe that because they aren't particularly wealthy, they don't need a will, or that they can't afford an estate plan
You don't have to have a big estate to need estate planning
@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
You don't have to have a big estate to need estate planning
• But the truth is, regardless of the size of your estate, dying without a plan can have many unintended consequences
• As your elder law attorney will tell you, if you die without a plan, your property will be distributed to your heirs based on the laws of intestate succession in your state
• If you have an estate plan, however, you have the opportunity to determine who will be the beneficiaries of your estate
14 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
Intestate succession is inadequate
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• More importantly, laws of intestate succession do not provide for special circumstances (such as incapacity or a minor beneficiary)
Intestate succession is inadequate
@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
Intestate succession is inadequate
• With a written plan, you can include specific provisions to deal with these issues
• Finally, intestate succession laws do not deal with the custody of a minor child in a case where both parents die
• With a will, you have the opportunity to designate who should become guardian of your minor children, if necessary
17 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
Starting the estate planning conversation with your parents
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
Starting the estate planning conversation with your parents
• Bringing up the need to plan for death with your parents is typically not an easy thing to do
• The first step, before you actually start the conversation, is to talk to all family members involved to make sure you are all in agreement about what is needed
• Resolve any disputes ahead of time so that you can approach your parents with a united front
• Doing so should reduce the risk of putting your parents on the defensive
• The next step is speaking with an elder law attorney to discuss the necessary components of the plan
19 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• Balancing the need of an aging parent to be independent with the need to maintain their health and safety can be a huge challenge
Determining how to balance autonomy with safety
@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
Determining how to balance autonomy with safety
• The best way to approach this challenge depends on the particular issues in your family
• In some cases where guardianship becomes necessary, or is simply anticipated, the possibility of losing independence can be overwhelming or disconcerting
• Guardianships should never be sought simply because a parent makes a decision you disagree with or based on a specific disability or medical diagnosis
21 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
Contact us! If you have questions regarding elder law myths, or other estate planning matters, contact Gaughan & Connealy for a consultation by calling us at (913) 262-2000.