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A Common Error to Avoid Probate

One common scenario that estate planning attorneys encounter is clients who believe that deeding their home to their children solves the problem of avoiding probate. Most retired individual’s main asset is their home, which many have paid their mortgage off.

Such a situation is common for many of our clients, and the attorneys at Skillern Law Firm almost always advise against it. There are several practical and legal reasons to keep your home in your name, some of which are discussed in this article  in the Huffington Post. The two main points that this article relates are property taxes and your child’s liabilities.

There are several more important reasons to avoid transferring your property rights to your child to avoid probate. These include:

  • The relationship with your child could go south, or change once you transfer all your property rights to him/her. It’s amazing how a relationship can change once money or any inheritance is involve. Once the house is in their name, they have all the legal right to the home, and there is no obligation for them to let you live in it or transfer it back to you if you ever change your mind.
  • If you have more than one child, this can put complications on some of your relationships with the other children, and it can create rifts between siblings. Putting your house in the name of one child can create relationship complications, but putting the house into all of your children’s names’ can create paperwork headaches, errors, and inheritance complications.
  • There are other ways to avoid probate. One of the easiest ways to avoid probate is to create a Revocable Living Trust.  You can read more about trusts on a previous post here.  Essentially, a Revocable Living Trust are flexible, customizable depending on your situation, and usually cheaper than what probate will cost your heirs.

Do not make a common estate planning mistake that could possibly cost you to lose your home and cause problems within your family. Contact Skillern Law to discuss how they can assist you to protect your family and heirs, as well as your assets, from probate, liabilities, and common misconceptions about avoiding probate.

Medicaid Planning – Planning for Your Future Health Costs

Skillern Law is excited to be adding Medicaid/Nursing Home Estate Planning to our practice areas. It’s a new type of estate planning in the law, and it’s becoming more and more important as the baby boomers are growing older. A lot of people do not know what it is or what it entails exactly. Let’s answer all those questions today on Tulsa Estate Planning Blog.

First of all, there are a lot of misconceptions about Medicaid and what it provides for. Medicaid is not a welfare program. It was before 1989, however Congress passed the Medicare Catastrophic Coverage Act in 1988 after Congress saw that Americans were getting older, and nursing homes were rising in costs. This act changed Medicaid to make it a Federal insurance program that helps middle-class America pay for long-term care costs.

Medicaid Estate Planning, or “nursing home planning” as it is commonly called, helps qualify a client for Medicaid benefits for future assistance. The planning helps qualify the future Medicaid applicant, which will help pay for nursing home costs, prescription drug costs, and medical expenses. Medicaid planning can help families save money from having to be spent on nursing homes and prescription drugs. This is especially true in the case of family held farms or businesses. Most people spend their lives paying into the Medicaid system, and Medicaid planning will help middle-class families from having to spend their retirement fund solely on health costs.

The essential thing to remember about Medicaid or nursing home planning is to get it done early. While there are planning methods to be used in “emergency 911” situations, that planning is expensive, can be time-consuming, and will not be able to get as much Medicaid help as early planning can. Preventative Estate Planning should happen years before the client is expected to be in need of Medicaid money. Typically, it is good to get done when you get your other estate planning documents drafted. At least five (5) years before an expected need, but the earlier the better in the case of Medicaid planning.

The exciting news is that Skillern Law Firm offers Medicaid, VA & Social Security Benefit planning in conjunction with Senior Resources & Benefits, LLC. Please feel free to look at SRB’s website here.   Set up an appointment today to discuss your options!

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