Have you ever had a neighbor or a friend tell you to make it simple and just add your child’s name to the deed of your house?  When you die the home will pass automatically to the child without the need for probate.  Well that is true.  If you add your child to the title of your house as a joint tenant with rights of survivorship at your death, your home will immediately transfer to your child and avoid probate…but, what about when you are living?  What risks do you face by adding another person’s name to the deed to your home?  What if your child get sued or becomes ill?  The child’s creditors can come after your home to settle the lawsuit or medical bills.  What if you want to sell or mortgage the home?  You will have to get your child’s permission to do that.  And what if your child does not think that selling or financing the home is a good idea?  Your child can prevent you from doing that!  I have even encountered a situation where a child sued his parent to force a sale of the parent’s home.

Although joint tenancy offers some short-term solutions, in the long run it poses a host of problems that can cost you many times the expense and headaches you thought you were going to avoid.  There are other ways to ensure your child or children inherit your home while avoiding probate and without exposing yourself to their problems.

Come to one of our informative estate planning seminars to find out the best solutions for you and your family.  Then you may have some good advice to share with your friend!

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Follow the link to listen to last nights broadcast of Your Estate Matters with Attorney Colleen Sinclair Prosser.

Joint Tenancy

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Don’t forget to tune in today to WNAV Radio on 1430 AM or 99.9 FM @ 3:50pm to listen to Your Estate Matters. Today’s topic “Joint Tenancy” with Attorney Colleen Sinclair Prosser.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

During the estate planning process, your estate planning attorney will ask you to answer questions and you, in turn, will have many questions of your own.  This line of communication is important in the designing, drafting, and implementation of your estate plan.

Just like a medical doctor needs to know your background and symptoms, your attorney needs to know your background and legal “symptoms.”  The more information you provide, the better your estate plan will fit your needs.

Here is a list of things your estate planning attorney needs to know:

• Name and nickname; previous names used
• Address, telephone, email, and any other contact information
• Your marital status and whether you’ve been married previously
• Whether you have children, including step-children and/or adopted children
• The size of your estate and what individual assets you own
• Whether you have other estate planning documents or prenuptial/postnuptial agreements
• Whether you own a business
• Whether you have any health concerns
• The names of trusted helpers (executors, guardians, power of attorney agents, and trustees)
• The names of beneficiaries
• Your estate planning goals
• Whether you regularly gift assets and have used any of your unified credit amount
• Whether you have specific special assets that you would like to give to specific beneficiaries
• Whether you would like to give gifts to beneficiaries in asset protection trusts, as opposed to outright

If you have questions about these estate planning questions, consult with a qualified estate planning attorney.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Follow the link to listen to last nights broadcast of Your Estate Matters with Attorney Colleen Sinclair Prosser.

Your Estate Matters

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Don’t forget to tune in to WNAV Radio on 1430 AM or 99.9 FM @ 3:50pm to listen to Your Estate Matters. Today’s topic “Preparing for your Estate Planning Consult – What your Estate Planning Attorney will need to know” with Attorney Colleen Sinclair Prosser.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Please tune in to WNAV Radio on 1430am or 99.9fm on Monday @ 3:50pm to listen to Your Estate Matters with Estate Planning and Elder Law Attorneys, SinclairProsser Law.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Last year, the Department of Health & Mental Hygiene and Department of Human Resources collaborated to develop strategies to address the delayed processing of long term care applications.  The Deficit Reduction Act of 2005 lengthened the 36 month look-back period for initial long term care applications to 60 months prior to the month of the initial application.  This resulted in an increased workload which translated into the delay.  As of May 1, 2011, applicants will no longer be required to provide 60 months of bank and financial statement in order to evaluate the look back period.  The following documents are now required:

1)      An exact copy of the federal tax returns (all forms and schedules) as filed and processed with the IRS for the current tax years and the preceding four years.

2)      Bank* and financial statements** for the month of application

3)      Bank* and financial statements** for the month prior to the month of application.

4)      Bank* and financial statements** for the last five years of the anniversary month of application.

*    Bank statements include credit union accounts.

**  Financial statements include, but are not limited to, trust funds, IRA or Keough accounts, stocks or bonds, money market funds, CD’s, etc.  Online bank and financial statements are acceptable.

Also, as of January 1, 2012, the Community Spouse Resource Allowance increased to $113,640.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

The way you choose to title your property can have far-reaching consequences.   Not only are there different ways to hold property but your ability to control the property may be limited and you may not even realize it.

One way to hold title is as “Tenants in Common”. I often see this type of titling used when siblings or heirs inherit property from the settlement of an estate.  What makes tenants in common unique is if you own the property with one other person, you only own the percentage designated – let’s say 50%.  You do not have rights of survivorship to the other person’s share, which means you will not automatically receive the property upon the death of the other tenant.  You may receive it through a will or the laws of intestate succession, but that can be lengthy, expensive and subject to claims of the decedent’s creditors.

If you were unaware of your interest in the property, as was the case with my client, then you may find yourself in a quandary.  Let me give you the facts.  Ms. Woods (the names have been changed to protect client anonymity) owned a home with her sister, Ms. Silver.  Ms. Silver went into a nursing home as a private pay patient; meaning that she was not receiving any government or other assistance towards the cost of her care.  Ms. Silver died without a Will, leaving an $80,000 debt to the nursing home.  My client, Ms. Woods, came to my office upon receiving a Notice of Court Hearing attempting to force the sale of her home to satisfy the claim of the nursing home.  I explained to Ms. Woods that she only owned 50% of the house and since this was the only valuable asset her sister left, the nursing home had a right to file a claim against the estate and petition the court to force a sale of her house. The bottom line is that if the intent of the parties is to create rights of survivorship, it needs to be expressed in the way it is titled in the deed.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

If you haven’t yet taken the time to create an estate plan, you may assume that you don’t really need a plan.  Many people incorrectly assume that a plan is not needed; but, the truth is, it is!  Take a look at 3 more reasons why most people need an estate plan.  If you have any questions, or if you’d like to commit to your estate plan affairs, contact an estate planning attorney.

• A plan makes it possible to avoid probate. Many people have intentions of avoiding the entire probate process. This is because it can take a long time, cost a lot of money, and makes your affairs public.  If you want to keep all of your affairs private and make sure that your loved ones will receive your assets quickly after your death, you may want to include probate avoidance techniques with the use of an estate plan

• With a plan, it’s possible to protect loved ones with special needs.  This makes it possible to leave a protected inheritance behind, so that you can ensure that a loved one is always cared for.  If you have a loved one with special needs, you can utilize special needs planning techniques to ensure that your loved one has the support that is needed, without sacrificing his or her Government benefits.

• You can use planning to prepare for future costs. An estate plan is not just about protecting yourself today or making sure that you affairs are handled after death.  With a plan, you can prepare for future expenses, before they occur. Have you taken the time to consider retirement planning or long term care planning?  This is an important aspect of estate planning, that many people need to consider.

These are six reasons why you may need estate planning. Don’t put off your planning.  Make sure that you’re always protected throughout life’s many misadventures.

If you have any questions about your estate plan needs, consult with a qualified estate planning attorney.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.