Halloween May Be Scary, But Probate Could Be Your Worst Nightmare!

This is the story of Ella, a client in her mid-fifties whose father recently passed away and whose mother died when she was a child.  Her father’s Will stated that his estate, including real estate in Virginia and Florida, and $250,000 in additional assets, would be divided equally among his four children.  Ella’s sister, Christine, was the executor.  Upon their father’s death, Christine moved into the family home in Virginia, which she lived in rent-free. She deliberately delayed the closing of the estate for five years, which kept the probate going in both states and proved to be very costly.  All the while, Christine paid no utilities bills, wrote checks for food and other personal expenses using the estate’s checking account and bought many high priced items (cars and designer clothing).  She refused to give her siblings ANY information about what was going on concerning the estate.

How could this situation have been avoided?  If Ella’s father had a Living Trust at his death, the trust assets would have been quickly distributed to all of the siblings, according to the terms of the trust. There would not have been the five-year delay and the hefty fees of probate in both states, and Christine wouldn’t have been able to take advantage of the situation. 

At The Law Firm of Evan H. Farr, P.C., we would have recommended a Revocable Living Trust (RLT) for  Ella’s father, because he owns real estate in more than one state.  As was the case in Ella’s situation, without the RLT, the estate had  to go through probate in both states. An RLT could have provided how the real estate and other trust property would have been distributed at Ella’s father’s death, and saved his children a lot of time, emotional pain, and money. Read more about RLTs.

If you haven’t already done so, sign up for our newsletter today, and receive a fascinating four-part Special Report, entitled “Lessons Learned from Estate Planning Mistakes of Celebrities,” highlighting the true nightmarish probate stories of celebrities like Amy Winehouse, Michael Crichton, Etta James, and Whitney Houston.

P.S. There is still time to take advantage of your 10% discount off all planning in honor of National Estate Planning Awareness Week (Offer valid for the remainder of this month, from October 23-31, 2012). Call The Law Firm of Evan H. Farr, P.C. today at 703-691-1888.   Evan H. Farr on Google +

Alzheimer’s Study Shows Plaques May Exhibit Bigger Risks than the Gene Itself

According to the American Health Assistance Foundation, more than 36 million people suffer from Alzheimer’s disease, and the amount is projected to increase to 115 million by 2050. More than 100 years after it was first identified, scientists have yet to find a cause or a cure for the memory-robbing disease.

A recent student of 141 healthy subjects found that Alzheimer’s plaques may be bigger risks than the Alzheimer’s gene itself. Participants in the study who had clumps of amyloid beta plaques in their brains at the start of the research, had as much as a 20 percent greater decline in memory and thinking over an 18-month period than those with fewer plaques. Read the article.

Clearly more research is necessary into this devastating disease which affects one in eight people over the age of 65. The organizations that are conducting Alzheimer’s research in the U.S. are the Alzheimer’s Association and others, so if you are thinking of making year-end charitable contributions, you may want to consider donating to these worthwhile research endeavors. However, always beware of the negative affect that charitable giving can have on Medicaid qualification.

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Gray Divorce is Almost NEVER Required for Medicaid Asset Protection

Mark and Maura have been happily married for fifty-five years.  Mark suffers from advanced Parkinson’s disease and now needs a nurse to attend to his needs for most of the day.  Maura has been caring for him at home, but it is becoming clear that she will no longer be able to continue such care.  Mark and Maura have about $300K in cash and stocks. 

Maura comes to see me for Medicaid Asset Protection.  She heard from a neighbor that divorce is the only way she could get Mark qualified for Medicaid.   Fortunately, I explain to Maura that her neighbor is wrong, and she is greatly relieved.

For many people, marriage involves more than just finances, and the idea of divorcing a loving spouse of many years is unconscionable.  The healthy spouse, as was the case with Maura, may feel as if she is deserting her sick husband, and the couple will have to deal with the public nature of the divorce proceedings.

In a divorce, there is also always the possibility that the judge will not order a division of property in accordance with the parties' desires or even in accordance with the parties' written agreement.  A divorce may be worthwhile only if a judge grants all of the assets to the healthy spouse.  Yet a judge may be unwilling to do so if he feels that the sick spouse with high medical costs deserves more.  The judge may also view the parties' agreement as an act intended for Medicaid eligibility only and may be unwilling to use court authority to help the healthy spouse engage in Medicaid Asset Protection.

There is also the issue of incompetence.  Getting a divorce is much more complex when a guardian has to be appointed by the court for the spouse who is no longer competent.  Legally, it would be the guardian’s duty to act in the best interest of his client only and he or she would not be as worried about the best interests of the healthy spouse. If this is the case, it could be difficult for the couple to obtain their desired financial outcome.

The Law Firm of Evan H. Farr, P.C. helps couples like Mark and Maura obtain Medicaid assistance without having to divorce or deplete their life savings.  With proper planning, a spouse who is able to stay at home can retain all of the couple's assets and most or all of the income while Medicaid takes care of the nursing home.  We aim to ensure that the spouse who is remaining at home is able to maintain his or her dignity and standard of living.  Read more about the services we offer to help couples in similar situations.
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National Estate Planning Awareness Week is This Week!

If you haven’t heard, this week, October 15 through 21, is National Estate Planning Awareness Week! The concept was created by the National Association of Estate Planners and Councils as a call to action, because estate planning is one of the most overlooked areas of personal financial management today.

More than 120 million Americans do not have estate plans to protect themselves or their families from the unexpected. Overlooking estate planning results in many wasted dollars and hours of frustration and emotional hardship each year that can be minimized with advanced planning and action.

If you do not have an up-to-date estate plan and you happen to get sick and cannot take care of your own financial affairs, or if you suffer an untimely death, the courts will appoint someone to manage them for you. The person they appoint may not be who you had in mind to take care of these important matters.

Whether a simple trust or a more complex strategy is what you require, an estate plan should be an essential part of your lifetime planning. For peace of mind, the time to address or update your estate plan is now. If you live in Virginia, DC, or Maryland, call the Law Firm of Evan H. Farr, P.C. today to set up a free consultation.

Special Offer: Take advantage of 10% off all planning for the remainder of this month (October 18-31, 2012) in honor of National Estate Planning Awareness Week.
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The Need for Transparency in Medical Care

Currently in the U.S., patients are unable to find out details, such as a surgeon's rate of complications or the mistakes a hospital makes. The type of data that may influence a patient’s medical treatment decisions is unavailable, except subjective values such as a hospital’s reputation among specialists.

Dr. Marty Makary, a cancer surgeon and author of "Unaccountable: What Hospitals Won't Tell You and How Transparency Can Revolutionize Health Care," is calling for an end to the silence that often protects incompetent or careless practitioners and hospitals alike. His commendable goal is to reduce the over 9 million patients harmed or killed every year in the United States by medical mistakes.  Unfortunately, through predictably, he is facing resistance from hospitals and medical professionals.  Click here for an article about Dr. Makary’s struggle.

We here at The Law Firm of Evan H. Farr agree that there should be transparency in healthcare, similar to the transparency of information that is readily available for nursing home care. Nursing homes are currently rated annually by Medicare, and the quality of care ratings for more than 17,000 nursing homes is available publically on the web on Medicare.gov’s Nursing Home Compare website.  Evan H. Farr on Google +

Giving New Meaning to Freezing an Estate

An Estate Freeze is usually an estate planning strategy whereby an estate owner aims to freeze the value of certain assets for estate tax purposes.
Check out this interesting article about an entirely different type of estate freeze.  Jeffersons' actor Sherman Hemsley.   Apparently Hemsley was found dead in his home and his body has remained frozen at a funeral home until the rightful heir(s) of his estate can be sorted out.   Yet another important reason for proper estate planning.

Read More . . . Evan H. Farr on Google +

Virginia Medicaid Asset Protection Attorney: "9 Tips to a Healthy Aging Process"

Physically, Mentally, and Financially

September 10, 2012

The month of September brings a welcome relief from the hot summer days. Cool breezes and colorful foliage appearing on the trees entice one to walk and bask in healthy fresh air.

September has also been designated as “Healthy Aging Month” with encouragement to seniors to renew their attitudes towards better eating, exercise, and mental stability. With the nation's senior population growing there is more focus on programs to help seniors remain healthy and active as they age physically, mentally and emotionally.

The Farr Law Firm is a Fairfax Estate Planning firm.  It also is very well known for elder law services, including Medicaid Asset Protection.  When seniors take care of their long-term planning and "get it out of the way," some level of stress is usually eliminated.

WebMD's online magazine's feature article by Matt McMillen focuses on the "September National Theme" with “tips to stay at your peak!"

1. Get moving
Exercise regularly to maintain a healthy body and brain.

2. Stay social
Take a class, volunteer, play games, see old friends, and make new ones.

3. Bulk up
Eat beans and other high-fiber foods for digestive and heart health.

4. Add some spice
Add herbs and spices to your meals if medications dull your taste buds.

5. Stay balanced
Practice yoga or tai chi to improve agility and prevent falls.  Here is a great starting point for yoga beginners, yoga for seniors.

6. Take a hike
Brisk daily walks this September can bolster both your heart and lungs.

7. Sleep well
Talk to a sleep specialist if you don’t sleep soundly through the night.

8. Beat the blues
If you’ve been down for a while, see a doctor. Depression can be treated.

9. Don’t forget
To aid your memory, make lists, follow routines, slow down, and organize

Opportunities for seniors to use their work experience and talents in volunteer work benefit not only them but their communities as well.  Many seniors take educational courses to improve their minds and seek out opportunities to use this new-found knowledge in productive ways.  In another direction, senior sport programs have been developed that encourage those who miss their days on the basketball court or playing other sports to take it up again. The National Senior Games Associations sponsors a competitive Senior Olympics.

There is no limit to what a healthy attitude can accomplish.

100-year-old Virginia, who suffers from glaucoma, received her first computer, an iPad. With the zoomable screen it is ideal for her to read books (she's read 2 already) and write limericks (she's composed 12).

An article this month on the Mayo Clinic website titled “Healthy Retirement” states that:

“Most adults spend years looking forward to a healthy retirement. Whether you're still planning your retirement or you're ready to make the change, there's much you can do to ensure a healthy retirement.

Start by learning what to expect as you get older, from changes in muscle mass and sex drive to vision and cardiovascular health. After all, your dreams for a healthy retirement likely depend on good health. Then consider ways to maintain a healthy retirement, from reducing your risk of falls and staying safe behind the wheel to improving your memory.

Another important aspect of healthy retirement is long term care. Consider your options now — including type of long term care, as well as how to pay for it — to help prevent hasty decisions later.“

A new population of seniors and those nearing senior status are looking for some type of financial support to maintain their quality of life and pay for eldercare during their final years of life. The need for some form of long term care will happen to 3 out of every 5 people. Paying for this care can be devastating for those who are not prepared.

Planning for the final years of life by dovetailing government programs, with your assets and other funding sources is a vital, yet complicated necessity. The National Care Planning Council's “Life Resource Planning System” relieves some of this burden by providing recommendations pertaining to any or all of the items below that may be important to your living out the rest of your life in dignity.

• Identify government income and care support programs
• Protect and preserve assets
• Facilitate favorable outcomes for health, medical issues and final preparations
• Maximize family and community support
• Find the right living arrangements

Healthy aging – physically, mentally and financially – is a definite “can do” with all the resources available to seniors and a little planning for the future.

Evan H. Farr on Google +