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Making Plans

August/2013
How did it get so late so soon?
~Dr. Seuss
Beneficiary Protection Planning   

Protecting an inheritance from being lost in a divorce or to a beneficiary's creditors is a serious concern for many individuals. Many parents and grandparents fear that their children and grandchildren lack strong financial decision making skills. With divorce rates exceeding 50% nationally, many parents and grandparents worry that their inheritance may end up in the hands of a former spouse.

 

A properly drafted trust can help achieve protection of inheritance. This can be achieved at the most simplest level by allowing a beneficiary to leave assets in the trust until he or she wants them or at the most restrictive level requiring assets to be maintained in trust for a beneficiaries life. (read more) 

 

Revocable Trust Owning Residence
Recent Court Case Causes Problems for Medicaid Qualification 
A recent Ohio court case ruled that if a residence is held in a revocable trust, it is not exempt for Medicaid eligibility purposes. It also went one step further and rules that if the home is transferred out of the trust it can be considered an improper transfer under the Ohio Medicaid Rules.

 

Consider this example

 

Bill and Mary own a house worth $100,000 in trust, a car worth $4,000 and $10,000 in savings. Bill is placed in a nursing home. Mary would have to "spend down" $55,000 to qualify Bill for Medicaid. If Bill and Mary had owned the house jointly, in Bill's name or Mary's name, the house would be exempt under the Medicaid rules and Bill would qualify for Medicaid immediately.

 

While placing your house in your trust is generally a good idea to avoid probate, this case demonstrates why you need to look at the entire picture. Please contact me if you would like to discuss alternative ownership strategies to accomplish all of your goals.

 

Medicare and Muffins 
Turning 65 or retiring. Seniority Benefit Group is providing an overview of everything you need to know about Medicare as you turn 65 or plan to retire

 

McConnell Heart Health Center 3773 Olentangy River Road Columbus OH 43214

 

Tuesday, September 24, 2013, 7:00 to 8:00 pm. RSVP 614-799-1403.

 

Is It Time to Take Action?
Contact us and find out how easy it is to set your estate plan up. You'll sleep better at night knowing things are taken care of the way you want.
Welcome!

Elizabeth Schmitz practices estate planning, probate and elder law.  She guides families and individuals as they provide for themselves and their loved ones during all states of life.
In This Issue
Beneficiary Protection Planning
Revocable Trust Update
Medicare and Muffins
Take Action
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Contact Information
Elizabeth Schmitz, Attorney At Law
1900 Polaris Parkway, Suite 450
Columbus, OH 43240
614-785-4980