So how old should you be before you have a power of attorney?
Hi, I'm Nicole Wipp, the founder and lead attorney of the Family and Aging Law Center.
I'm sitting here in my car after I literally just got out of court in that building right there today, and I got so inspired to make this video because of what happened in court today.
You know, the reason that I was there is because I was representing a woman that is younger than me. She has a husband that got in a terrible car accident, and now is completely unable to make any decisions for himself related to finances and related...
When a person has a loved one in rehabilitation or in long term care, understanding how guardianships and powers of attorney really work is essential – even if the loved one is competent to make their own decisions. As clients frequently note to me, it’s what you don’t know that can hurt you.
A guardianship is a court procedure through which a person or organization is given the responsibility to make decisions about the medical care of another individual (but to be clear – only medical, not financial. The financial court proceeding is known as a conservatorship). In order to have a Guardian appointed:
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In Part One, we covered what a guardianship is and why a guardianship is not the best solution for most people. Understanding how guardianships and powers of attorney really work is essential when a loved one is in rehabilitation, or in long term care, – even if the loved one is competent to make their own decisions. As clients frequently note to me, it’s what you don’t know that can hurt you.
The benefits of pre-planning are numerous. Ultimately, having good powers of attorney in place is a cheaper and easier option that places the least amount of burden on the family and provides more options. Additionally:
In our family estate planning & elder law office, we often find that people have misconceptions about estate planning that they get though the internet, their friends, and even other professionals. There are various problems with the Part 2 topics below, but the most fundamental one is that believing any one of them may lead to bad decision-making.
4. Talking about estate taxes is a waste of time.
For a majority of Americans, in the current tax year, estate taxes are not an issue – the exemption is currently at 5.49 million dollars. Every dollar above that exemption amount is taxed at a 40% tax rate for estate or “inheritance” taxes. So for those that have less, estate taxes aren’t an issue. This year.
That being said, Congress can change the estate tax exemption (they say they won’t – do you believe anything Congress says these days?). Unless you know that you will die in 2017, you can’t know...
I’m not an Elder Law attorney – and I don’t play one on TV. That being said, I’ve had the pleasure of working at the Family & Aging Law Center since December of 2015. What I’ve learned has been eye-opening – even shocking. As a well-educated person, I always thought I knew just enough about estate planning and elder law. I was wrong.
~Julie Taylor
First, I’m going to tell you a little bit about what I’ve learned about long term care in Michigan – which is, for most, also surprising. Generally speaking, the cost of skilled long term care can range anywhere from $8,000 - $14,000 a month (or more!). Shocking, isn’t it? I don’t know about you, but I certainly don’t have that kind of money! If my husband or I were ever faced with one (or both) of us needing care, I wouldn’t want to see everything we’ve worked for disappear. Even worse, what happens after our life savings goes to the cost of care?...
A: The short answer is, you need a financial POA in the event that you become unable to manage your own finances. Even though you may think you have everything “taken care of” through joint ownership, it isn’t that simple. For example, you cannot own most tax-deferred assets, such as IRAs, jointly. A beneficiary designation doesn’t give power to your beneficiary during your life. A financial POA, when done properly, also enables a person you trust to apply for important health care benefits (if you need them) and it enables them to preserve your money in times of crisis. Without proper planning, your loved ones will need to go to court in a process called...
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