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SHOULD YOU WRITE DOWN YOUR OWN LIVING TRUST?

By JacksonWhite Elder Law Attorneys

People often wonder if they could do their own estate planning.  A will can have guardians chosen for your children if something should happen to you.  A trust can hold assets for your benefit if you are not capable of managing them yourself.   Even if it seems easy and a smart idea, there are many things that could go wrong with writing a will or trust on your own.  These bloopers can cost you a lot more than you saved in legal fees.

In 1984, a man set up his own trust using a three-page form he purchased at an office supply store.  He documented a deed to transfer his home into the trust, but accidentally dated the deed 1983.  In 2009, this man wanted to borrow against his paid off mortgage on his home.  However, the mistake he made back in 1984 prevented him from receiving a loan from the bank because he didn’t have a clear chain of title to his home.  The problem was fixed over the course of two weeks and cost him $2,000 in legal fees.  That was about twice the amount he would have had to pay back in 1984 if he had a firm do it for him instead.

To make sure you and your family members receive the best return on your investment, it is essential that you put some time into planning your estate. We service the whole state of Arizona including Phoenix, Mesa, Scottsdale, Stafford, and Tucson. 

Contact the Arizona estate planning attorneys at JacksonWhite to have your estate assessed during a free estate planning consultation! Call (480) 818-6912.

For more information about JacksonWhite Elder Law or to download any of their free resources, feel free to visit:
www.arizonaseniorlaw.com/resources
www.arizonalongtermcare.com

www.myAltcs.com

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ALTCS ~ Seniors and the Law

Seniors and the Law is authored by the attorneys at Jackson White Attorneys at Law and addresses legal issues that arise for the elderly and their families.  Questions can be sent to firm@jacksonwhitelaw.com.

Q:        I moved in with my mother about three years ago to provide her with care.  Since that time I have been able to attend to her needs, but I am starting to require some additional help.  I want to help Mom apply for the ALTCS program, but I hear that the state will take her home, which is troubling given that I currently reside in this home.  Is there advice you can offer?

Before I address your question, I want to address a piece of misinformation that seems to be guiding your assessment.  It is important to understand that the state never takes an ALTCS member’s home in exchange for ALTCS eligibility.  Rather, the general rule is that ALTCS can place a lien on an ALTCS member’s home if that ALTCS member’s spouse, minor child, or disabled child does not also live in the home.  The state can only enforce this lien upon the member’s death.

Assuming that you are no longer a minor child, then, ALTCS will likely attach a lien to the home if your mom qualifies for the program and if she is placed in a facility.  However, like most rules of generality, the rule that ALTCS can recover against the equity in its members’ homes does have a few exceptions.  One such exception seems to apply to the facts presented in the question above.

If the child of an ALTCS member has lived in that member’s home for a period of two or more years and has provided care to the ALTCS member that has kept that member from being institutionalized, the ALTCS member can transfer his or her home to the child without penalty.  ALTCS will need to examine the evidence before allowing this type of a transfer, but this is definitely worth exploring given the facts presented here.

           

Richard White is an elder law attorney at JacksonWhite Attorneys at Law.  For more information on Elder Law at JacksonWhite, please visit www.ArizonaSeniorLaw.com.

This article is provided for informational purposes only and is not intended to replace individual legal advice.

For more information about Jackson White Elder Law or to download any of their free resources, feel free to visit:  www.arizonaseniorlaw.com/resources

www.arizonalongtermcare.com or www.myAltcs.com