Warning: Your Children’s Futures are at Stake

 

Have you ever thought about what would happen to your minor children if you died without a Will? Many young families do not think about the consequences of such a tragedy. We all assume that we will live forever into our golden years, all the while running the risk that our children may become wards of the state.

 

 

 

At the very least, every couple should have a Will in place when they start a family. A Will provides provisions for who would take legal responsibility and care for your children should such an unthinkable tragedy occur. Without that, the grandparents may fight each other in court for guardianship. A Will provides clear directions as to whom you would trust and rely upon to love and care for your child in the event of your untimely death. Children do not have any say about who they want to be their guardian to take care of them until they are in their teens. So just imagine if your child were put with a stranger, with a family member you did not trust, or worst yet, one that lived far away from where your child has established friends, only to ripped away in the midst of tragedy.

 

Guardianship proceedings are costly and emotional. When a guardian is appointed by a Court, the Court can require the guardian to make periodic reports back to the Court. All of this can easily be avoid by setting forth the guardianship provision for your children in your Will.

 

And did you know, that any assets that your child would inherit would be held in Trust by the Court until the minor reached age 18, at which time all of the assets would be turned over directly to your child! No one would be able to access those assets to use them for your child’s needs. When you die without a Will, there are no options left for your family. They have to follow the plan that the State has for your assets and estate.

 

You can have great peace of mind in knowing that should something unpredictable happen, a Guardian can access money from your estate to provide for your children, and your children will not be at the center of a controversy amidst the grief and heartache they are already suffering by losing their parents. Call (888) 787-1913 to schedule an appointment or to register for an educational seminar with Thomas Walters, PLLC. For more information, go to www.twestateplanning.law.

The Real Truth about Medicaid Planning

With the recent find of a $1 million in gold coins while scuba diving, I was reminded of a story someone once told me. Their father had several hundred thousands of dollars in coins. Many years ago he had created a trust to protect his hard earned money from nursing home poverty, but he chose not to put the coins into his trust. When the time came to apply for Medicaid, his family was faced with either telling the truth about the coins as one of his countable assets, or intentionally omitting them in the Medicaid application. If Medicaid was made aware of it, the family would have to spend those funds on nursing home care before Medicaid would cover the nursing home expenses.

 

The consequence of not disclosing the asset to Medicaid could result in fraud charges against the family members that completed the application. All the gentleman had to do to protect his coins was to include them in his irrevocable trust. Now, his family was faced with losing a valuable treasured family heirloom, or potential prison time if they were caught withholding information about a countable asset.

 

It is easy to list valuable assets like jewelry, paintings, coins, guns, and have them protected in an irrevocable trust for Medicaid planning purposes. To do anything else is to knowingly accept the risk of losing the asset. Make sure when you plan to protect your life savings from nursing home poverty, you consult a reputable estate planning attorney. To learn more, go to www.twestateplanning.law. To register for one of our estate planning seminars in cities throughout North Carolina, call (888) 787-1913.

5 Hidden Dangers of Joint Ownership with a Child

A common question I am asked is whether probate can be avoided if assets are owned jointly with a child. I would like to share just four of the disastrous reasons why you should not add a child’s name to the title of an asset just to avoid probate.

 

1. If your child is a joint signer on your checking account and they have a judgement against them or a creditor is trying to collect a debt from them, your bank account is now wide open for the taking!

 

2. If you add your child to the title of your home and they decide to sell the home after you pass away, they will face issues with capital gains tax.

 

3. When the time comes for you go into a nursing home, the addition of a child’s name to an asset title may be viewed by Medicaid as a gift. Medicaid could penalize you by forcing you to use the asset you were trying to protect, in order to pay for your nursing home care.

 

4. If the joint owner of an asset, such as your spouse or child, dies before you, you will be left with an asset solely in your name, which will then have to go through the probate process.

 

5. If your child jointly owns an asset with you, that asset can now be considered a marital asset for them as well! In other words, if they get a divorce, what you thought was only your asset could be given to your child’s ex-spouse through the divorce judgment, which means you lose it!

 

The only way to avoid the probate process despite life changing events such as death, divorce, sale of assets, or addition of assets, is to have those things properly titled in the name of a trust. Attend one of our free educational events and learn more about how simple it is for you and your family to avoid the probate process, save all of your assets for your loved ones and avoid the expense and hassles of court.

 

Contact the law firm of Thomas Walters, PLLC, at (888) 787-1913 or for more information, visit www.twestateplanning.law.

Could Your Estate be a Windfall for the Wrong People?

I was talking with a grandmother recently about the devastating loss of her adult son, Bill. She explained that she was in shock because her grandson was not entitled to any part of Bill’s estate. After asking a few questions, I understood why.

 

Bill had died without a will. Bill’s son, Jason, was his only child. By law, Jason was not entitled to any part of his father’s estate because he had been adopted by his mother’s new husband. Oftentimes, people do not think about the impact adoption has on their final wishes. If Bill had put an estate plan in place and specifically named Jason as the heir, then it would have been a different story.

 

The law firm of Thomas Walters, PLLC focuses on all aspects of estate planning, including trusts, wills, disability documents and probate. There is no better time than the present to put things in place so that the right people will inherit your hard-earned assets. Contact us today at (888) 787-1913 to schedule an appointment or register at www.twestateplanning.law to attend one of our upcoming educational events and learn more about putting the right plan in place for you and your family.