Vincent & RomeoVincent & Romeo2024-02-27T14:55:06Zhttps://www.elderlawcolorado.com/feed/atom/WordPress/wp-content/uploads/sites/1404240/2022/09/cropped-Vincent-Romeo-Siteicon-32x32.pngOn Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=507952024-02-02T15:49:00Z2024-01-24T09:31:12Zirrevocable and revocable trusts is essential. This knowledge can give you the basis to determine what types of trusts to include in your estate plan.
Revocable trusts
A revocable trust is flexible and can be altered or revoked at any point during your lifetime. This type of trust becomes irrevocable upon your death. The primary advantage of a revocable trust is that it enables your loved ones to bypass probate, which involves the court and is the legal process of distributing your assets. This can save your heirs and beneficiaries time and money. It also enables them to remain as private as they want about what they receive.
Assets in a revocable trust are still considered part of the trustor’s estate for tax purposes. The assets remain in your control, so they are not protected from creditors.
Irrevocable trusts
An irrevocable trust generally cannot be altered or revoked once you establish it. This means you relinquish control over the assets, and the trust is considered a separate legal entity.
The main advantages are the potential tax benefits and asset protection. These assets are generally protected from creditors because you do not have any control over them. The trade-off is the loss of control over trust assets.
Trusts are an effective tool in estate planning, but they are only one component of a comprehensive estate plan. When thinking about your own needs, you should work with someone who can help you to find ways to make your wishes a reality. This can give you the chance to care for your loved ones in the ways that you want and can give you peace of mind that your wishes will be honored.]]>On Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=507372023-12-20T10:04:52Z2023-12-20T10:04:52Zonly a third of adult Americans surveyed had estate plans in place.
The remaining two-thirds of adults risk having no control over their legacies. What happens if someone dies in Colorado without a will or other testamentary documents on record?
Colorado law has rules for this situation
If a person dies without a will (known as “intestacy”), the law, rather than the person’s wishes, determines how and to whom the property is divided and distributed. Intestate succession laws in Colorado provide very clear instructions for the probate courts and surviving family members of those who die intestate.
If the person who dies has a spouse who survives them, their spouse has the right to inherit from their estate. Any surviving children or parents may also have a claim to some of the property in an estate. The nature of the relationship between the surviving spouse and the children will determine the exact division of the estate resources. If the surviving spouse is also the legal or biological parent of those children, then the spouse receives the entire estate. If, however, the surviving spouse is a step-parent, then the surviving spouse may not receive the entire estate.
In situations where a person dies while unmarried and without any children, other family members, sometimes distant, may have the right to inherit from their estate. Colorado's law specifically describes the inheritance rights of descendants, parents, siblings and grandparents. In the relatively rare scenario where the state cannot locate any surviving family members after someone's passing, then the resources from the estate may eventually transfer to the state escheat account.
Creating an estate plan is a very personal process that usually reflects someone's personal values and the relationships that they have maintained with their family members. Investing the time and consideration necessary to create an estate plan gives you control over your legacy, avoid unintended results, and provide protection to your loved ones in the wake of a family tragedy.]]>On Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=497612023-11-21T06:40:50Z2023-11-24T06:40:17ZWhat is asset protection planning?
The goal of asset protection planning is to preserve the most valuable resources accumulated by an individual or couple when their financial circumstances change. Individuals in high-risk professions, like entrepreneurs, sometimes put together asset protection plans well before they think about retiring as a means of limiting their personal liability related to their profession.
Many others only start to worry about threats to their resources or their final legacy when they will no longer be able to work to maintain and afford those resources. Asset protection planning often involves making changes to how people hold title for their most valuable assets and diminishing their personal property. Property that does not belong to an individual is less vulnerable during litigation.
The creation of a variety of different documents can help protect people from incapacity, lawsuits and medical challenges as they age. People may use assets to fund a trust. They may also transfer certain resources to beneficiaries long before they die. The goal is to protect those assets from creditor claims in civil court while someone is still alive or in probate court after they die.
The exact strategy employed will depend on the nature of the resources, the age of the person planning and other details about their situation. Reviewing one's current finances and final legacy wishes may benefit those who wish to preserve as much of their resources as possible during retirement and after their passing.]]>On Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=497592023-11-21T03:20:30Z2023-11-21T03:04:36ZIssues with medication or hygiene
It can be difficult to keep multiple medications organized and to take them in accordance with a physician’s instructions. Someone who has repeatedly failed to take necessary medication or ended up in the hospital due to taking multiple doses of a drug too close together may need the structure provided by an assisted living facility for their own protection, or at a minimum, additional in-home assistance.
Other times, there may be issues with an individual’s personal hygiene, or the cleanliness of their house, which will give family members pause. Older adults may struggle to remember to apply deodorant, brush their teeth or comb their hair. They may avoid showering or bathing because of the fall risk. Or they may not be able to maintain their living space, which may be yet another sign that outside help may be necessary.
A failure to meet responsibilities
Many older adults still have to regularly pay bills. They need to pay for their utilities every month or risk having the electricity shut off in their homes. They need to pay rent or mortgage costs and provide for the needs of their pets. Family members finding past-due notices for financial accounts in the mail or realizing that pets look unhealthy or unkept can be the wake-up call the family needs to recognize that their loved one is not capable of managing their own affairs anymore.
A fall or similar incident
Sometimes, it takes a medical emergency for family members to act. An older adult who has lived independently for years may fall down and break a hip. Not only will they need support as they recover from their injuries, but they will also require more support when they fully recover. Someone who has fallen is at increased risk of a fall in the future, and the family members of that person may not be able to provide the daily support that is needed for the individual’s safety and well-being.
Recognizing the early warning signs is the first step in considering whether it may be time to consider a move to an assisted living facility. If ignored, the individual may be subject to financial exploitation, injury and accelerated physical and mental decline resulting in placement in an even more restrictive environment, such as a nursing home.]]>On Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=497322023-10-18T18:37:07Z2023-10-18T09:34:08Zsigns of financial exploitation? If your loved one has a pile of unpaid bills and is going without, the issues may be obvious, but if you are unsure, consider some of these indications of trouble.
1) Unexplained financial transactions
Most seniors have predictable expenses, so the sudden appearance of unfamiliar charges, transfers of funds and checks written to people that you do not recognize are an immediate red flag. Unless your senior has an immediate and clear explanation, this is a definite concern.
2) Sudden changes in legal documents
It’s wise to suspect some sort of coercion when a senior suddenly makes major changes to their will, trusts or powers of attorney designations, especially if they seem hesitant to explain their reasoning. If their new documents seem to give one person an extraordinary amount of control, that is suspect.
3) Significant gifts or excessive fees
Be wary if a senior suddenly makes a significant cash gift to a caregiver for no particular reason or a caregiver, business associate, repair professional or spiritual advisor seems to be charging exorbitant fees for their services. Even if your senior is happy to pay them, this can indicate that they simply are not aware that they are being exploited.
4) Missing money or other items
When a senior’s prized possessions, collections or jewelry go missing, that is definitely a cause for further inquiry, especially if the senior seems confused about the situation or does not remember what happened to the assets.
If you are concerned about an elderly relative’s well-being and suspect that financial abuse is occurring, it may be time to explore options such as guardianship or financial conservatorship. Both can put a halt to financial exploitation and better protect your loved one’s interests.]]>On Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=495922023-08-23T19:14:55Z2023-08-23T19:14:55Zonly 1/3rd of people in the United States have a plan in place. Listed below are a few of the most common reasons.
Procrastination
Many people delay estate planning because they believe they have plenty of time. It can be difficult to commit to choices when you are in good health and believe you will remain so well into the future. The reality is that no one knows how long they have before they pass away or become disabled. Establishing a plan early can provide peace of mind.
Thinking that estate planning is only for wealthy individuals
Many individuals mistakenly believe that estate planning is only necessary for the wealthy. Contrary to that popular belief, estate planning can hold significant importance for everyone. Regardless of your financial circumstances, it is important that your assets pass to those who you want to receive them, or that you have designated a person you trust to act on your behalf should you become disabled.
Fear of facing mortality
Thinking about end-of-life matters can be uncomfortable, leading some individuals to avoid the topic altogether. Even if difficult, it is a gift to your loved ones by making the transition easier and not making them have to guess.
The complexity of the process
Estate planning can seem overwhelming due to the various legal documents and decisions involved. People sometimes claim that they have no idea how to get started, even though they may want to. It may not be that complex and an experienced attorney can guide you through the decision-making process.
Changing family dynamics
People may postpone estate planning due to evolving family situations, such as divorce or estrangement. The truth is that these types of life events are when plans really need to be established. Amendments can be made at any time as wishes and circumstances evolve.
What are your options?
It is important to overcome these barriers and recognize that moving ahead with estate planning is a necessary undertaking. It can help you protect assets, understand different tax implications, provide for your loved ones and help ensure that your wishes are carried out. If you have not yet made an estate plan, seeking legal guidance from an experienced attorney can help you begin the process and ensure your plans will be legally enforceable and adaptable to future life changes.]]>On Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=495202023-08-16T12:53:25Z2023-08-16T12:53:25ZWhat Is A Power Of Attorney?
A Power of Attorney for Property is a very flexible and inexpensive method for one person (‘the “principal”) to give another person (the “agent”) legal authority to manage some or all of the principal’s financial affairs. The agent has the obligation to make decisions based on the preferences of the principal and the authority granted in the document. An agent may not override the wishes of the principal.
Financial Responsibilities
An agent is a "fiduciary," which means that the agent must act with the highest degree of good faith on behalf of the principal and in accordance with the principal’s best interests, not the agent’s interests. The law holds the agent to the “prudent man rule,” which means that the agent must exercise “due care” and manage the principal’s funds not as if they were the funds of the agent but with the care needed for managing funds of another. The agent should avoid speculative investments, even if the agent would be willing to take more risk with his or her personal funds. In general, the agent has authority to do whatever the principal may do - withdraw funds from bank accounts, trade stock, pay bills, cash checks - except as expressly limited in the power of attorney. When transacting business on behalf of the principal, the agent must use the principal's finances as the principal would use them for the principal’s own benefit. It does not, however, transfer liability from the individual to their agent, which means that the agent is not personally responsible for paying nursing home bills from the agent’s own funds.
Exceptions
There may be some instances that result in the agent being held responsible for nursing home bills. This includes self-dealing, borrowing funds and failing to use the principal’s funds to pay for their care when funds are available. If there is any unlawful behavior on the part of the power of attorney, this is grounds for liability.
Even though, as an agent under the power of attorney, you are not personally responsible for paying for nursing home bills, a nursing home may still attempt to obtain payment from the agent. Fortunately, having a power of attorney to act on behalf of someone else does not mean you are personally liable for that person’s financial obligations and you can certainly refuse to pay.]]>On Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=494942023-08-16T13:09:21Z2023-08-02T03:28:40ZThe Medicaid estate recovery program
Many older adults turn to Medicaid when their health declines, as Medicare does not cover extensive nursing support or long-term care. In Colorado, your home equity usually will not prevent you from qualifying for Medicaid benefits when you need financial assistance to pay for your care. However, under the estate recovery program, following your death (and your spouse’s), the state can lien the home (as well as file claims against other assets) to recoup the Medicaid expenditures made on your behalf. There are planning strategies designed to avoid this result, but they can be complicated, and should always involve assistance from a qualified elder law attorney.
Any personal creditors
The state of Colorado is not the only party that could force the sale of real property during probate proceedings. Creditors owed money when you die have a right to repayment from your estate before beneficiaries receive any property. This can include mortgage lenders, credit card companies, hospitals and any other creditors, all of which diminish your legacy.
Addressing Medicaid and asset protection needs in advance can benefit you and your heirs if you have property that you want to pass on to the next generation.]]>On Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=495362023-08-16T13:08:34Z2023-07-21T05:32:28ZThe state can make a probate claim related to benefits
Federal law requires that every state participating in the Medicaid program seek repayment from the estates of Medicaid recipients following their death. Under the estate recovery program, state Medicaid agencies are permitted to file a lien against the real estate of the Medicaid recipient or to file a claim in the estate of a deceased Medicaid recipient in order to reimburse the agency for some or all of the medical assistance funds expended on behalf of the Medicaid recipient. This is true even if repayment requires the sale of the deceased recipient’s home and the liquidation of all of their remaining property so that their loved ones inherit nothing, in as much as probate claims and liens of valid creditors, including the state, take priority over inheritance rights.
Therefore, advance Medicaid planning is not only beneficial for the individual needing care but also as a way to leave a meaningful legacy following their death. Seeking competent legal guidance is generally a good place to start.]]>On Behalf of Vincent & Romeo, LLChttps://www.elderlawcolorado.com/?p=495332023-06-26T07:05:20Z2023-06-29T07:04:43Zsome characteristics that you may want to consider.
They are trustworthy
Trustworthiness is key. This person is going to make critical decisions on your behalf. You’re giving them an unparalleled amount of legal power. They need to be someone who will actually make decisions with your best interests in mind.
They are relatively close
You may want to select someone who is at least relatively close to home. Some parents are tempted to choose an adult child who lives in another state. But this can be problematic because there can be delays when trying to contact the agent. Many medical decisions need to be made as soon as possible in the event of an emergency.
They’re willing and able
Finally, you need someone who is willing and able to take on this role. As far as being willing is concerned, remember that even a very capable individual may find making these tough choices too difficult. On the other side of the coin, you also need someone who is intellectually capable of understanding the medical decisions that have to be made and working with your team. You certainly don’t want to pick someone who doesn’t want the job or someone who is going to be overwhelmed and confused by all the technical details.
Setting up your plan
Choosing the right person for the power of attorney is just the first step. Next, you need to know about all of the legal options you have and how to officially set up this designation and the rest of your estate plan. Seeking legal guidance is a good place to begin.]]>