Blogs from August, 2018

Many of us know someone who suffers with a form Dementia, the most common being Alzheimer’s Disease. Dementia in all its forms slowly rips independence away from those who suffer its ravages. While no amount of planning can eliminate the emotional pain encountered when a family member slips away, proper financial and legal planning can assist caregivers with the daily practicalities of life thereby alleviating a portion of stress and anxiety.

Caring for a person with dementia can last years, and there are few outside resources to help pay for this kind of care.

• Health insurance does not cover assisted living or nursing home facilities, or help with activities of daily living.
• Medicare covers some in-home health care and a limited number of days of skilled nursing home care, but not long-term care.
• Medicaid, which does cover long-term care, has very strict eligibility requirements; the person’s assets must be spent down to almost nothing to qualify.
• VA benefits for Aid & Attendance will help pay for some care, including assisted living and nursing home facilities, for veterans and their spouses who qualify.
• Those who have significant assets can pay as they go. Home equity and retirement savings can also be a source of funds.
• Long-term care insurance may also be an option, but many people wait until they are not eligible or the cost is prohibitive.

However, for the most part, families are not prepared to pay these extraordinary costs, especially if they go on for years. As a result, family members are often required to provide the care for as long as possible.

What Can Be Done to Support the Patient and the Family?

1. PLAN NOW! Having options—additional caregivers, alternate sources of funds, respite care for the caregiver—can help relieve many stressors. In addition, there are many legal options to help families protect hard-earned assets from the rising costs of long term care and to access funds to help pay for that care.
2. Watch for early signs of dementia. The Alzheimer’s Association (www.alz.org) has prepared a list of signs and symptoms that can help individuals and family members recognize the beginnings of dementia.
3. Seek assistance. Find out what resources might be available. We can prepare necessary legal documents that help maximize income, retirement savings and long-time care insurance as well as apply for VA or Medicaid benefits.
4. Take good care of the caregiver. Caregivers need support and time off to take care of themselves. Arrange for relief from outside caregivers or other family members.

Waiting too long to plan for the need for long-term care, especially for dementia, can throw a family into confusion about what Mom or Dad would want, what options are available, what resources can help pay for care and who is best-suited to help provide hands-on care, if needed. Having the courage to discuss the possibility of incapacity and/or dementia before it happens can go a long way toward being prepared should that time come.

We help families who may need long term care by creating an asset protection plan that will provide peace of mind to all. If we can be of assistance, please contact us!

So, do you have to hire an attorney to navigate the probate court process in Texas? Most of the time, yes.

Texas courts usually require an executor to be represented by an attorney in a probate matter because an executor not only represents himself, but also the interests of beneficiaries and creditors. Texas law only allows a licensed attorney to represent the interests of others, therefore, preparing and filing pleadings in a probate matter without the assistance of counsel would constitute the unauthorized practice of law. Although courts allow limited exceptions to this rule, the result is that executors in Texas almost always have to hire an attorney to navigate the probate process.

The following is an example from the Denton County Probate Court’s Local Rules, explaining that the court does NOT allow individuals to represent themselves (also called “Pro Se”) in probate matters before the court:

Schedule your complimentary probate consultation with Justin or Jacob and get your probate questions answered.

Not only do I have some good news, but I have good news coming from our Texas Legislature! In 2017, our representatives chose to clarify the Texas Estates Code regarding power of attorney so that things are easier for both the agent acting with power of attorney and the person accepting the power of attorney (like banks or mortgage companies). House Bill 1974 was signed into law and there are 3 changes that you need to know about.

1. Previously used forms may or may not have had a section that revokes prior agent’s authority when a new power of attorney form is signed. A new section of the law says that you must expressly revoke previous powers of attorney. What does that mean? Let’s say, 10 years ago you gave power of attorney to your brother, Abe. Since then, you changed your mind and decided that you don’t want him to be able to act as your agent, and you signed a new form making your sister, Abby your agent. Abe might still have the power to act for you. Updating your powers of attorney will ensure that the appropriate agent is making decisions on your behalf.
2. There is specific language in the law that gives options for the types of powers that you can give—or specifically not to give—your agent. What does that mean? Let’s say that you want your sister, Abby to be able to change the beneficiaries of your estate. You can now do that more easily! If you want to make sure that your brother, Abe is not allowed to amend your trust, you can do that more easily as well.
3. The experts in Texas probate law meticulously went through the existing law and suggested changes to our legislature so that things would be clearer, more effective, and give better protections for all parties. They suggested language that needs to be in all power of attorney forms beginning September 1, 2017. What does that mean? Let’s say that you are incapacitated, and your sister Abby needs to go to your bank to handle some business for you, and she takes an old power of attorney form that you signed prior to 2017. Legally, the bank has the right to refuse to let Abby act for you if the paperwork is confusing and/or has a certain amount of time to check with their lawyers before denying or accepting her power. However, if you have the new form with all the correct information included, Abby is less likely to run into problems.

This new power of attorney form—as well as other disability forms designed to carry out your wishes—are included in our estate planning packages. Schedule an appointment today so that we can personalize your documents to effectively protect you and your loved ones.