Coffin, Coffin & BlackmanCoffin, Coffin & Blackman2024-01-09T20:45:16Zhttps://www.ccblegal.com/feed/atom/WordPress/wp-content/uploads/sites/1503840/2022/03/CCB-icon-logo-75x75.pngOn Behalf of Coffin, Coffin & Blackmanhttps://www.ccblegal.com/?p=467702023-10-09T08:02:12Z2023-10-12T08:01:33Zsound mind” and understood the provisions they included (or didn’t include) in the will. In legal parlance, these disputes may be concern the “testamentary capacity” of the person who wrote the will (the testator).
What does testamentary capacity mean?
When it is said that a will creator has testamentary capacity, this means that the person fully understands what a will is and the consequences of the provisions they include in it, including:
What their assets are and their value
Who their heirs and other beneficiaries are and their relationship to them
What they’re leaving to each beneficiary and the potential consequences of doing so
Which person(s), if any, they’re obligated to provide for in their will
That the document they sign correctly reflects their wishes
It’s important to note that there are different standards for capacity for other types of estate plan documents, such as trusts and power of attorney (POA) documents.
Minimizing the chances of a will challenge based on testamentary capacity
It always helps to talk with your loved ones about your estate plan while you’re developing it or soon after. You don’t need to provide details, but it will help if they understand your general reasoning (even if they don’t agree with it) and are comfortable that you’re not confused or the victim of undue influence by someone – either within the family or outside it.
You may also be able to ask your doctor to sign a document attesting to your testamentary or other required capacity to develop the documents in your estate plan. They may also be able to refer you to someone who can perform a thorough assessment to determine your capacity.
Seeking experienced legal guidance as you put your will and other estate planning documents in place or if you modify documents already in place can also help your loved ones have confidence that you were fully aware of the contents of your estate and the choices you made for passing them on. As a result, the chances that they’ll contest your wishes will be minimized accordingly.]]>On Behalf of Coffin, Coffin & Blackmanhttps://www.ccblegal.com/?p=467692023-07-11T06:05:04Z2023-07-14T06:04:12ZPutting assets into a trust
If you’re leaving money to your heirs, one of the best ways to control their spending is simply to put it money into a trust. Remember that you don’t have to leave it to them in your will, which would transfer it directly into their name. Instead, you can put money in a trust, name them as a beneficiary, and then name a trustee to oversee the distribution process.
An example of this is a discretionary trust. In a case like this, your trustee is the one who gets to make all of the decisions. You can pick someone who you know will only allow the types of spending you would have approved of. The beneficiary can then request distributions from the trust, but your trustee certainly does not have to grant them if the request would fund a purchase or endeavor of which you wouldn’t have approved.
You can also be more specific with trusts if you’d like. For instance, many people set up educational trusts designed to help cover the rising costs of college tuition. A trustee would still be involved, but they would have instructions about exactly what they should use the money for, rather than being allowed to use their own discretion.
Either way, you can see how beneficial a trust may be. Be sure you know exactly what legal steps to take to set one up if this estate planning opportunity appeals to you. Seeking legal guidance is a good place to start.]]>On Behalf of Coffin, Coffin & Blackmanhttps://www.ccblegal.com/?p=467682023-04-06T10:36:46Z2023-04-11T10:36:10Zspecial needs trust could be a viable option, but people too often convince themselves that it is too complicated to create a trust, often because of one of the two issues discussed below.
1. They worry about funding
One of the most common misconceptions that will prevent people from starting a special needs trust is the idea that they need a million dollars or more in liquid capital on hand to start the trust. Yes, it may be particularly easy for those with significant resources to fund a special needs trust, but the average parent can potentially put a trust together to support their child and fund it if they plan ahead.
In some cases, people will execute deeds so that their real property will transfer to the trust, thereby providing their child with both financial resources and shelter when they die. Other times, people may use life insurance proceeds to fund a trust. There are many options depending on someone's current financial services.
2. They don't know who to name as the trustee
A trust doesn't just safeguard resources. It also connects someone with a trustee that will oversee the distribution of those assets. Parents often question who could step into their role and provide guidance and financial support for their child.
The right choice will truly depend on the circumstances. Sometimes, it will be family members or friends that can provide the best support for someone with special needs. Other times, what they really need is a professional fiduciary to manage their resource.
Exploring every option with the assistance of a legal professional can help those who are hoping to create a special needs trust for the benefit of a loved one.]]>On Behalf of Coffin, Coffin & Blackmanhttps://www.ccblegal.com/?p=467542023-03-08T05:27:39Z2023-01-06T05:58:40Zqualify for Medicaid.
Medicaid approval preparation is best handled by skilled attorneys
Medicaid eligibility for many older adults requires strategic planning and implementation of the creation of documents to assist in the process. The attorneys at Coffin, Coffin & Blackman are highly skilled and experienced in assisting our clients in avoiding some of the pitfalls that can happen without proper skilled representation.
To have the best chance of avoiding penalties, and becoming eligible for Medicaid, contact our office and speak to one of our attorneys.
Transfers and Trusts
Establishing a Medicaid trust is one of the more common ways that people make themselves eligible for Medicaid benefits later in life and also protect their property from estate recovery efforts after they die. Unfortunately, many people try to make decisions about these transfers with inexperienced professionals or non-attorneys. For the best results with relation to transfers and trusts, an attorney who specializes in Medicaid Planning such as those at Coffin, Coffin & Blackman, should be of the highest priority.
Proper planning with the skilled attorneys at Coffin, Coffin & Blackman can provide peace of mind, as well as the cost benefit of protecting the valuable assets which our clients have worked for.
]]>On Behalf of Coffin, Coffin & Blackmanhttps://www.ccblegal.com/?p=467512023-03-08T05:26:52Z2022-10-07T10:03:06ZMany people receiving SSDI can qualify
SSDI is not particularly generous, which means that even those receiving full benefits could still qualify for other needs-based benefits. Your eligibility for Medicaid benefits depends on your financial circumstances.
The state looks at both your income and your personal assets. If you receive SSDI benefits, you may actually have an easy time qualifying for Medicaid. Currently, Indiana will approve applicants with up to $16,971 in annual income. That is slightly higher than the annual income of the average SSDI recipient as of April 2022, which is $16,332.
Of course, that does mean if you have supplemental income, you may be dangerously close to the financial cutoff for Medicaid. If you do not receive SSDI benefits but instead qualified for Supplemental Security Income (SSI), your qualification for SSI should also immediately qualify you for Medicaid coverage.
SSDI will eventually become retirement benefits
As you think about your possible future need for Medicaid coverage, it is important to recognize that when you reach retirement age, your SSDI benefits will become retirement benefits. You also need to learn about how the penalties work when you apply, as you could have to pay for months of care out of pocket if you don't plan ahead.
Understanding how much you will receive from SSDI and other sources of income will be crucial for the Medicaid planning process.
]]>On Behalf of Coffin, Coffin & Blackmanhttps://www.ccblegal.com/?p=467452023-03-08T05:50:29Z2022-07-29T19:04:11ZNot all trusts are the same
Keep in mind that not all trusts are the same, and some are better than others for Medicaid planning purposes.
The right kind of trust is one that takes all of your family’s interests into consideration. Unfortunately, there are many entities within the elder community who may attempt to advise you and your family as to which type of trust would be best for you. It is our experience at Coffin, Coffin & Blackman, that many families are unfortunately given the wrong kind of advice that is potentially harmful to their interests and in the long term can hurt them rather than help them.
Our attorneys at Coffin, Coffin & Blackman are highly qualified, with over 45 years of experience, and current on all applicable laws with regard to the creation and administration of complex trust instruments.
Before you make these important decisions for your family’s financial future, call us today. At Coffin, Coffin & Blackman, we are pleased to help you navigate these crucial steps.
Roger T. Coffin, AttorneyLisa A. Blackman, AttorneyCoffin, Coffin & Blackman
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]]>On Behalf of Coffin, Coffin & Blackmanhttps://www.ccblegal.com/?p=467442023-03-08T05:27:22Z2022-04-14T03:59:55Zland into a trust could potentially prevent third parties or family members from splitting the farm up or forcing its sale in the future.
Divorce wreaks havoc on farmland
When a farming family goes through a divorce, one spouse may want their share of the property's value. They feel entitled to it because they have worked on the farm for years and share few other valuable assets with their spouse.
However, the land they want to claim may have been in their spouse's family for three generations and provides for many people. Although the property belongs to the whole family, one divorcing spouse could cause the sale or at least refinancing of the land. Such changes could be devastating for the family. When the land is in a trust, it will be much harder for a spouse to claim it from the courts, as neither they nor their ex directly own the property, nor did they acquire it with marital assets.
Trusts protect you from creditor claims, too
If the land is in your father's name and he needs Medicaid to pay for his nursing home in his last years of life, the state could come after the property and force its sale to recoup those Medicaid benefits.
Hospitals and other private creditors could also bring a claim against real estate owned by an individual. Holding property in a trust makes it much more difficult for creditors to seek the land or its value in a lawsuit.
Establishing a farmland trust is a smart way to protect your land from outside claims and preserve it for generations to come.]]>On Behalf of Coffin, Coffin & Blackmanhttps://www.ccblegal.com/?p=464072023-03-08T05:27:08Z2022-01-21T21:33:47ZHow a succession plan helps you pass on a farm
A succession plan gives you a formal method of passing on your farm to your heirs while allowing them to continue running it. You can pass on a business in a few ways, either by allowing an heir to take over before you retire, passing on the business at death or selling the business to another party.
As for other real estate, like your home or vacation home, you may want to consider placing those assets into a trust to pass them on to your heirs. You may also consider adding an heir as a co-owner, so the home is in their name, or use a qualified personal residence trust to move a home into their name later.
Why do you need to plan in advance to pass on your farming business or real estate?
It’s important to set up a succession plan and to have an estate plan in place to make sure your heirs face minimal taxation when you pass on a business or piece of real estate. If you’re passing on a business, starting succession planning can help you bring someone into the business and teach them how to run that business prior to you retiring or passing away.
Planning in advance for either of these circumstances lets you do what is best for you and your family, so you know that your assets will stay in the family and be used for the purposes that you intended. It’s a good idea to start with a basic estate plan for personal property and to use succession planning to address how you’d like to pass on your business to those who will run it in the future.]]>