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Monthly Archives

November 2016

How to Use Advance Directives to Stop Financial Abuse of Seniors

By Asset Protection Planning, Elder Law, Estate Planning

Advance directives are documents that allow individuals to express their preferences and instructions regarding their healthcare and finances. Some advance directives include living wills, appointment of health care surrogates, and durable power of attorney documents. These documents are helpful in specifying your wishes for when you are unable to make decisions for yourself. By creating advance directives you can help prevent others from taking advantage of you and your assets in the event of incapacity.

When designating someone to fill these roles, it is recommended that you appoint someone trusted like a spouse, child, or a long-term friend. This person will make medical decisions for you, have access to records and finances, and will be given powers to act on behalf of you.

Living Will

A living will allows you to specify your wishes for life-prolonging procedures and end-of-life medical care.

Appointment of Health Care Surrogate

In this document, your health care surrogate has the authority to make medical decisions for you when you become incapacitated.

Durable Power of Attorney

A DPOA is used for making financial and legal decisions. While you are competent, you should designate an “attorney-in-fact” who will be given powers to act on your behalf.

Creating these documents is an important step in protecting you and your estate, and for ensuring safety and stability during times of incapacitation.

November 29, 2016
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What are alternatives to joint bank accounts?

By Asset Protection Planning, Estate Planning

While joint bank accounts can be a convenient and appropriate way for some individuals to title their bank accounts, joint ownership is not the best option for others. There are alternatives to joint accounts that can allow a trusted individual to have access to and properly manage your assets while you are alive.

One alternative to joint accounts is a durable power of attorney (DPOA). By signing a DPOA and filing it with the institutions where your accounts are held, your agent that you appoint in the DPOA can manage your finances for you, within the scope of your DPOA document. Your agent can still write checks and make withdrawals without your permission but they are legally obligated to make decisions in your best interest.

If your goal is to transfer the account to someone after your death without going through the probate process, then you can designate beneficiaries. The money from your accounts will pass directly to the individuals you designated without involving them in ownership while you are alive.

To review the title of your assets and whether it is consistent with your estate planning, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

November 25, 2016
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Florida’s process of determining adult incapacitation (in a nutshell)

By Elder Law, Guardianship

The process of determining an adult to be incapacitated can be extensive and challenging for loved ones to watch. However, it is a sometimes necessary task to undertake in order to protect and care for your loved ones.

In Florida, the incapacitation process typically begins with a family member or friend filing two petitions with a Florida Court: the Petition to Determine Incapacity and the Petition for Appointment of Guardian. A court appointed attorney is assigned to the alleged incapacitated person, however, the alleged incapacitated person may use his or her personal attorney.

After an attorney has been appointed, the members of a three-person examining committee must be designated. These individuals may be social workers, psychologists, physicians, or be of a different background. The committee is responsible for evaluating the individual and preparing a report that includes a mental, physical, and functional assessment. Each report must include a variety of evaluations such as a diagnosis, or recommended treatment, the ability to retain his or her rights, the extent to the incapacity, and the results of the examinations.

When the three-person examining committee members have finished filing their reports with the court, a hearing on the Petition to Determine Incapacity is held.

If you have questions about the guardianship process for potentially incapacitated individuals, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

November 22, 2016
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Iowa Nursing Home Case Raises Questions about Social Media Abuse

By Elder Law, Long-Term Care

According to an NPR article titled, “Social Media Abuse of Nursing Home Residents Often Goes Unchecked” a very disturbing incident involving social media abuse occurred at a nursing in Hubbard, Iowa. The article states that a certified nursing assistant sent a Snapchat photo of a resident covered in feces to six of her coworkers. After being fired from the facility, she faced no charges because it technically wasn’t against the law.

In Iowa, the law that protects dependent adults includes no mention of social media apps due to the fact that it was last updated in 2008. Because the photo the CNA took did not show the resident’s genitals, the CNA did not violate the law by committing sexual exploitation of a dependent.

This story raises concerns for other states and their handling of senior abuse. In Florida, and in most states, there is no mention of social media apps. Although there is a clause that includes exploitation by photography, it only qualifies if the genitals or other private areas are shown.

To find a solution to this problem, try contacting your representatives in order to create legislation that properly addresses this issue.

November 18, 2016
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Changes in Estate Tax Law Alter Use of Bypass Trusts

By Asset Protection Planning, Elder Law, Estate Planning, Tax Law

In 2013, changes were made to estate taxes and now few people are subject to federal estate taxes. For those who die in 2016, the first $5.45 million of an individual’s estate is exempt from federal estate taxes, which means that up to $10.90 million is exempt for a married couple’s estates.

With these changes it now may be that a bypass trust is unnecessary for someone’s estate. Due to the restrictions put in place on the bypass trust, the surviving spouse has less control over the assets.

However, a bypass trust is still useful for estates larger than the current estate tax exemption. Additionally, even married couples who have less than the exempt amount of assets may still choose to use a bypass-style trust in order to provide for a surviving spouse’s income needs during their remaining life while still protecting an inheritance for children from a prior marriage.

To see a bypass trust would be appropriate for your family and financial situation, call our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

November 15, 2016
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What is a Bypass Trust?

By Asset Protection Planning, Estate Planning, Tax Law

An estate planning tool that couples have utilized for years is the bypass trust. The trust is a long-term planning device that allows a spouse to leave property that will not be subject to estate taxes when he or she passes away.

For couples that plan their estates together, they can make sure that the property will be taxed only once between the two of them by leaving it in a bypass trust. In order to keep the trust from being taxed when your spouse dies, you must ensure two provisions in your documents—you must limit your spouse’s power to access the trust during his or her lifetime and you must restrict your spouse’s power to distribute assets upon his or her death.

These conditions must be in place to satisfy the rules set up by the IRS. However, you may give your spouse the right the withdraw principle for his or her health, education, and support. You can also appoint him or her as trustee of the bypass trust. While your spouse is not allowed to give the assets to himself, his estate, or his estate’s creditors, you can grant him the right to name specific individuals in his will who will succeed to the trust upon his death.

November 11, 2016
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Sharing Caregiving Responsibilities with Siblings

By Long-Term Care

According to a U.S. News & World Report article called “Dividing the Caregiving Responsibilities Between Siblings,” it is common for members of the baby boomer generation to find themselves caring for their parents, financially and emotionally. While historically the eldest daughter may have been the one traditionally left with these responsibilities, these circumstances are changing with women’s advancement in the workplace and the geographical space between families.

In order to divide the responsibilities of caring for parents between siblings, there are certain steps families should follow. Despite most families living in different locations, there are ways for siblings living away from elderly parents to help. They can call parents regularly, pay bills online, or make visits here and there.

November 8, 2016
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What is an Incentive Trust?

By Asset Protection Planning, Estate Planning

An Incentive Trust is a tool used to encourage certain positive behavior in beneficiaries. Some of this behavior may include earning a college degree, maintaining employment, or abstaining from drug or alcohol use. Typically, the beneficiary would be paid a certain amount from the trust upon completing those obligations, or the trust would match a dollar of income for every dollar the beneficiary earns.

Oftentimes, the incentives included in the trust can include specifications such as maintaining a certain grade point average or passing a drug test. Also, you can encourage beneficiaries to participate in charitable activities so money could be distributed for working for a foundation.

While incentive trusts can encourage good behavior, they can also impose rigid rules that could end up working to the detriment of your beneficiaries.

November 4, 2016
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Can conveyance of property by Lady Bird deed avoid subjecting the property to probate?

By Asset Protection Planning, Estate Planning, Probate

A big advantage of signing a Lady Bird deed is that it avoids probate of the property after you pass away. In many states, including Florida, there is a Medicaid estate recovery program that seeks reimbursement from probate assets if you received benefits during your lifetime. But with a Lady Bird deed, the property is considered a nonprobate estate and the beneficiaries can inherit the property without having to reimburse the government for Medicaid benefits that you might have received.

November 1, 2016
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