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An Estate Plan To-Do List to Get Planning Done

Even if your New Year’s resolutions have fallen by the wayside, don’t let the resolution to create or revise your estate plan pass without tackling it. A recent San Francisco Bay Times article, “Kickstart 2025 With 5 Estate Planning Resolutions to Secure Your Future,” offers a step-by-step list of the tasks to complete your estate plan.

Start by locating your estate planning documents. Review them to be sure they’re up to date. If your will includes people no longer living or beneficiaries you’re no longer feeling generous towards, you’ll need to make those changes.

Review your estate plan with an eye on the people you’ve named for specific roles. Will the executor or trustee be a good fit? What about the person you’ve named as Power of Attorney? Your estate plan should also include a Healthcare Proxy. As you age, you need to be sure the people in these roles can still physically get to the bank or the hospital and navigate online banking or healthcare portals on your behalf.

Digital assets are now part of everyone’s life. However, not everyone addresses their digital assets in estate plans. You’ll need to review and record your digital accounts, from emails to social media to cryptocurrency, and create a list of the accounts, login information and passwords. If you have two or three-factor identification, you’ll need to be sure your digital executor can access your mobile phone or email to confirm their identity. Many people use password managers to gather their information. However, a notebook will do as long as your digital executor knows its location.

If you haven’t reviewed your healthcare directives in a while, you’ll want to do so. Your wish to be kept off any life-support systems while in your thirties may have changed as you have gotten older. After COVID, many people who would have never wanted to be on a respirator learned that it was lifesaving, not life-ending. Speak with your healthcare proxy about your wishes, so they know what you want and your estate planning attorney to ensure that they are documented properly.

An experienced estate planning attorney can help you avoid or minimize the probate process. For instance, placing assets in a trust can take the asset out of your taxable estate if the right trust is used. The assets in the trust won’t go through probate and will remain private. If using Payable on Death accounts makes sense for your estate plan, be sure that the accounts you want to transfer to someone else on your death are titled correctly.

An estate planning attorney will guide you through the process to ensure that you have the right documents, so your loved ones can help you if you become incapacitated and know your wishes when you die. It’s a gift to those you love, easing their burden and building your legacy.

Reference: San Francisco Bay Times (Feb. 5, 2025) “Kickstart 2025 With 5 Estate Planning Resolutions to Secure Your Future”

Does Your Estate Plan Include Digital Assets?

Technology has changed many aspects of estate planning from the lawyer’s point of view. It’s as easy to meet with clients on a video call as in person, and documents can be reviewed and shared through a secure document portal. Estate planning attorneys now include digital assets as well as traditional assets, like real estate and financial accounts. A recent article from Cape Gazette, “Estate Planning for Digital Assets,” explains how to address digital assets.

The definition of digital assets itself is constantly evolving as new assets are added, but for the most part, they include:

  • Electronic communication: emails, social media posts, blogs
  • Reward programs: credit cards, airline miles, hotels.
  • Financial accounts: PayPal, Venmo, online investment and banking accounts
  • Digital asset collections: music, videos, photos
  • Intellectual property: domain names, articles, books, artwork, videos
  • Electronically stored data

The rules of ownership of data and the platforms holding the data are more complicated than most people think. The law attempts to balance the privacy of the original owner or creator of the data and a fiduciary’s need to access assets after the original owner’s death or incapacity.

Every time you create a digital asset, you are asked to agree to a contract, known as a Terms of Service Agreement or TOSA. This is usually presented as a long page of small type with a box to check to state you agree to the terms. With a single click, you’ve agreed to the terms of a legally binding contract prohibiting another person from accessing the account. Even if your executor or Power of Attorney has a username and password, they may not have the legal authority to access your digital accounts, although some states have passed laws to give fiduciaries some authority to access digital assets. Your estate planning attorney will know the law in your jurisdiction and incorporate this into your estate plan.

For your estate plan to protect digital assets, you’ll need to start by creating an inventory of all assets with this information:

  • What type of asset
  • Where it can be found (the URL address)
  • User name
  • Login information
  • Does it require two-factor authentication, which verifies the user using a text to a mobile phone or email address?

You’ll also want to review each digital asset to see if there is any provision for assigning someone to manage your account in case of incapacity or death. Some of the larger platforms offer this ability, which is far easier than going to court to obtain photos from a loved one’s cell phone.

Another step to protect your digital assets is to name a digital executor through a Power of Attorney, so they can act on your behalf. It would be prudent to ensure that the POA includes a specific provision expressly providing the authority to access digital assets. This is required in some states.

Your estate planning attorney will help you protect your digital assets as part of creating a comprehensive estate plan.

Reference: Cape Gazette (Feb. 7, 2025) “Estate Planning for Digital Assets”

Elderly Parents Moving in with You? Steps to Prepare

Many families choose to care for elderly parents at home rather than placing them in assisted living or nursing facilities. While this arrangement can provide emotional and financial benefits, it also brings new challenges. Preparing in advance helps ensure that the parent and the rest of the household adjust smoothly.

Assessing the Level of Care Needed

Before moving a parent in, evaluating their physical and medical needs is essential. Some seniors require only minor assistance, while others may need daily help with mobility, medication management and personal care. Consulting with a healthcare provider or elder law attorney can help determine the necessary level of care and support.

Making Home Modifications for Safety and Accessibility

Bringing an aging parent into your home requires thoughtful adjustments to ensure their safety and comfort. Falls and mobility challenges become more familiar with age, making modifying the living space to reduce risks essential. A thorough home assessment can identify hazards such as slippery floors, poor lighting, or narrow doorways that may create difficulties.

A key priority is ensuring that essential rooms—like the bedroom and bathroom—are accessible. If possible, a ground-floor bedroom should be designated to eliminate the need for stairs.

Modifying Bathrooms and Kitchens

Bathrooms often require the most modifications and pose a high risk for falls. Installing grab bars near the toilet and shower, using a walk-in bathtub or shower with a bench, and placing non-slip mats on tile floors significantly improve safety. Kitchens should also be adjusted for ease of use by keeping frequently used items within reach and ensuring that appliances are simple to operate.

Making Elder-Friendly Passageways

Entryways and hallways may need modifications to accommodate mobility aids. A ramp may be necessary if the home has steps at the entrance. Doorways should be wide enough for walkers or wheelchairs, and any uneven flooring should be smoothed out to prevent tripping hazards. Smart home technology, such as voice-activated lighting and motion-sensor nightlights, can also enhance safety and convenience.

Establishing Legal and Financial Plans

Caring for an aging parent brings financial and legal responsibilities that require careful planning. Without a structured approach, unexpected medical needs, rising expenses, or legal barriers can create unnecessary stress. The first step is to review your loved ones’ healthcare coverage, including Medicare and Medicaid eligibility, to determine available services and benefits.

If your parents have long-term care insurance, they should evaluate it to understand what costs will be covered for in-home care or assisted living. You should also consider other potential funding sources, such as veteran’s benefits.

Update Estate Planning Documents

A financial power of attorney ensures that someone can manage the parent’s finances, pay bills and make legal decisions if the parent becomes incapacitated. Similarly, a healthcare proxy allows a trusted individual to make medical decisions in accordance with the parent’s wishes. If a will or trust has not been updated in years, now is the time to ensure that assets are protected and distributed according to the parent’s current preferences.

Setting Boundaries and Managing Family Dynamics

Living with an aging parent can impact family relationships. Establishing clear expectations for daily routines, privacy and caregiving responsibilities helps prevent stress and conflict. If multiple family members are involved, discussing how responsibilities will be shared can ensure that caregiving does not fall entirely on one person.

Starting the conversation can be challenging, but you don’t have to do it alone. Call our law firm today to schedule a consultation and take the right step toward multigenerational living.

Key Takeaways

  • Assessing care needs is the first step: Understanding a parent’s medical and daily living requirements ensures the right level of support.
  • Home modifications improve safety and independence: Small adjustments, such as grab bars and accessible rooms, reduce fall risks and make living spaces more comfortable.
  • Financial and legal planning prevents future issues: Reviewing insurance, estate documents and caregiving costs ensures long-term stability.
  • Setting boundaries maintains family balance: Open communication and shared responsibilities prevent stress and ensure a smooth transition.
  • Advance preparation makes caregiving more manageable: Thoughtful planning leads to a safer, more supportive home environment for both parents and caregivers.

Reference: AgingCare “Preparing for a Parent Living with You”

What are the Biggest Mistakes People Make with Estate Plans?

Ask any estate planning attorney for a horror story and step back as they come flooding out. Moms who leave millions to a veterinarian to care for a beloved cat or uncles who grabbed and kept a half-million-dollar insurance policy intended for a son are just a few examples.

When your estate plan isn’t properly prepared, many things can go wrong, according to a recent article from Kiplinger, “Wills Gone Wild: How to Avoid Estate Planning Disasters.” Assets can end up with the wrong people, or beloved children can be disinherited entirely. A bungled do-it-yourself will can lead to a distant cousin inheriting your entire estate, while a life-long partner ends up homeless and impoverished.

If you intend to protect those you love, you’ll need to sit down with an estate planning attorney and create a last will and testament and other estate planning documents. Without a will, you can be sure family discord will follow your passing.

Aretha Franklin provides one lesson on what happens when there’s no formal will. Not one but two handwritten or holographic wills were found in her home in Detroit after she died. One, dated 2010, was found in a locked cabinet, while the second was found under a couch cushion, dated 2014. There were four sons, and all disagreed about which one was valid. The matter went to court, with a judge ruling the 2014 will was valid. Not all states accept holographic wills and leaving more than one copy around the home doesn’t guarantee anything but a family fight and legal expenses.

Many people are testing online wills. However, the unintended consequences are very costly for loved ones. One father decided he would create a will without an estate planning attorney. When he died, instead of dividing his estate equally between three adult children, all his property and assets went to the children and the grandchildren. Each of his three children had children, so what he intended to be a simple three-way split ended up being divided into many small gifts.

Second and subsequent marriages can complicate estates. Estate planning attorneys all have stories about remarried people who want their estate to go to the new spouse but forget to take care of their children from the first marriage. When the second spouse inherits the entire estate, it’s easy enough to rewrite the will, and the deceased spouse’s kids are disinherited. A surviving spouse is under no legal obligation to maintain an old will or to give assets to stepchildren. Estate planning attorneys know how to use trusts and other strategies to protect the surviving spouse and the biological children.

Pets are often part of estate planning disasters. One attorney tells the tale of a client estranged from her only child, a daughter. She wanted to leave everything in her estate to her cats. However, something went very wrong, and her veterinarian inherited $3.5 million. In this case, the vet was an upstanding citizen and worked with an estate planning attorney to ensure any monies left after the death of the cats went to animal charities. However, there was no legal requirement for the vet to do so.

Elderly people are often preyed upon by their trusted caretakers. One horror story concerned two elderly men who lived together and shared a home care nurse. When one of the men was hospitalized, the caretaker and her husband came to the home and exploited the second man. The caregiver convinced the elderly man to make her a beneficiary of a $500,000 CD and joint owner of a lakefront vacation home.

When it comes to estate planning, the only way to avoid a nightmare legacy is to meet with an experienced estate planning attorney and have an estate plan created. Estate planning attorneys have seen more wild tales than you can imagine and can ensure that you don’t become one of them.

Reference: Kiplinger (Jan. 29, 2025) “Wills Gone Wild: How to Avoid Estate Planning Disasters”

Inheriting a Business? Here are Pros and Cons to Consider

Receiving a family business as an inheritance can be both an honor and a burden. While it offers the potential to continue a legacy and build financial security, it also requires strategic planning, management skills and a clear understanding of the company’s financial health. Many heirs struggle to continue operating the business, sell it, or bring in outside management. Evaluating the pros and cons can help determine the best course of action.

The Benefits of Inheriting a Business

A well-run business can provide long-term stability, employment opportunities and financial growth for both the heir and future generations. Some key advantages include:

  • An established customer base and brand reputation, reducing the need for extensive marketing efforts
  • Immediate cash flow and ongoing income, depending on the profitability of the business
  • The opportunity to modernize and expand the business while preserving family heritage

Continuing operations may be a strong option if the business is financially healthy and aligns with the heir’s skills and interests.

Challenges of Business Inheritance

Not every business remains profitable or easily manageable after the original owner’s passing. Some common challenges include:

  • Unexpected tax liabilities and debts that may reduce the business’s overall value
  • Disputes among family members or co-owners about management and decision-making
  • A lack of experience or desire to run the business, making ownership stressful or unmanageable

Without a clear succession plan, inheriting a business can lead to operational difficulties, financial strain and legal complications.

Key Considerations before Accepting Business Inheritance

Before deciding, assessing the company’s financial health, legal obligations and long-term viability is essential. Steps to take include:

  • Reviewing business financial statements, including debts, assets and tax obligations
  • Determining whether to manage the business personally, hire outside leadership, or sell the company
  • Consulting with business law and financial advisors to understand legal responsibilities and tax implications

Each option has risks and rewards; seeking professional guidance can help avoid costly mistakes.

Key Takeaways

  • Inheriting a business can provide financial stability: A successful company with an established customer base can offer long-term income.
  • Legal and financial risks must be assessed: Understanding debts, taxes and ownership responsibilities is crucial before taking over operations.
  • Family conflicts may arise: Disputes among heirs or co-owners can complicate decision-making and business management.
  • Selling the business may be a viable option: If running the company is not practical, selling it can provide financial liquidity while preserving the value of the inheritance.
  • Professional guidance helps avoid mistakes: Consulting with legal and financial guides ensures a smooth transition and informed decision-making.

Reference: City National Bank “Inheriting a Business? Here Are the Pros and Cons”

Where Should I Keep My Will?

A will is only useful if it can be found after death. If misplaced, locked away without access, or accidentally destroyed, the probate court may proceed as if no will exists, distributing assets according to state law rather than the decedent’s wishes. Proper storage balances security and accessibility, ensuring that the document is protected but readily available when needed.

Best Places to Store a Will

With an Estate Planning Attorney

Many people choose to leave their will with the attorney who drafted it. Law firms typically store wills in fireproof safes, ensuring that the document is secure and intact. If the will’s validity is questioned, an attorney can verify its authenticity. However, this option is only effective if family members or the executor know which attorney holds the will.

In a Fireproof and Waterproof Safe at Home

A home safe provides security while allowing immediate family access when needed. It should be fireproof and waterproof and placed in a location known to the executor. If the safe requires a key or code, at least one trusted person should have access. Without access instructions, a locked safe can delay probate and require court intervention.

With the Probate Court (Where allowed)

Some states allow individuals to file their will with the local probate court for safekeeping. This ensures that the document is secure and legally recognized. However, this method requires updating the court file when revisions are made. If this step is overlooked, an outdated will may be used in probate.

Registered with The U.S. Will Registry

Registering your will with The U.S. Will Registry helps ensure your loved ones can locate it when needed. Even if you store a physical copy safely, family members may forget its location, misplace it, or accidentally discard it. By registering, you clearly record where your will is stored, preventing unnecessary stress and delays in settling your estate. The U.S. Will Registry also offers free online storage, giving you extra security and peace of mind.

Where Not to Store a Will

In a Bank Safe Deposit Box

While safe deposit boxes provide strong security, they can cause delays. Banks typically seal a box upon the owner’s death, preventing the executor from accessing the will without a court order. If choosing this option, the executor should be listed as a co-owner with access rights.

In an Unsecured Location

A will should not be stored in a desk drawer, filing cabinet, or with other household papers. These locations increase the risk of loss, accidental destruction, or intentional tampering. A digital copy is insufficient, as most states require the original, signed document for probate.

Ensuring the Will Can Be Found

Regardless of where the will is stored, the executor and at least one trusted person should know its location. Keeping instructions in a separate estate planning file and other critical documents ensures the will can be located and used immediately.

Key Takeaways

  • Proper storage prevents legal complications: The probate court may distribute assets according to state law if a will is lost or inaccessible.
  • An attorney’s office offers security and authentication: Keeping a will with an estate planning attorney protects it from loss and helps verify its validity.
  • A fireproof home safe balances security and access: A well-placed, fireproof safe ensures that the will is protected while remaining available to the executor.
  • Safe deposit boxes can cause probate delays: If an executor cannot access a safe deposit box, a court order may be required to retrieve the will.
  • Family members must know where the will is stored: Informing the executor and key family members of its location prevents confusion and unnecessary legal delays.

Reference: The U.S. Will Registry (Oct. 24, 2024) “Where to Store Your Will to Ensure its Security”

Think of Estate Planning as a Gift to Loved Ones

When you think of a gift for your family, you might think about matching sweaters or a family vacation. However, the gift of an estate plan will be remembered because it demonstrates your ability to take care of your family and could help build wealth across generations. A recent article from CNBC Money Report, “Here’s why estate planning is a gift to your family,” explains how this works.

Remember, there’s no relationship between creating a will and signing documents and something happening to you immediately afterward. This notion keeps many otherwise responsible adults from taking care of their estate plans. Don’t fall prey to it.

Another point is that families fight over money and possessions, even when relationships are good. Without clear instructions provided in an estate plan, a family undergoing the loss of a parent is vulnerable to fighting and litigation.

You’ll want to have a Last Will and Testament and, depending on your situation, possibly trusts, a Power of Attorney for financial and legal matters if you are incapacitated and a Healthcare Proxy (sometimes called a Healthcare Power of Attorney), so someone can make medical decisions and talk with treating doctors in case you can’t communicate.

What happens when there is no estate plan? The courts will make all of your decisions, regardless of the wishes of your loved ones. Your entire estate will go through probate, and a stranger could be named to take charge of it, with a hefty fee to compensate them for their services.

If you have minor children and no will, the court will name a guardian to raise your children. Will it be someone you would have picked or your distant cousin who lives hundreds of miles away? There’s no way to know.

Assets titled properly or those with a named beneficiary will go directly to those named on the accounts without going through probate. This is one of the attractions of trusts, which never become public.

Part of creating an estate plan includes reviewing your accounts and beneficiary designations to ensure that the people named as your beneficiaries are still correct. If you have any old accounts you haven’t looked at in decades, now is the time to ensure that you’re not leaving your pension to an old college pal—unless that’s your intention.

Estate planning is about empowering the present and planning for the future. Chances are you’ve read many news articles about celebrities with massive estate problems because they failed to plan. Leaving a mess for your family to deal with is probably not the legacy you had in mind.

Give yourself and your loved ones the peace of mind knowing you’ve taken care of your estate plan. Be remembered as someone who cared enough to do the right thing. Consult with an experienced estate planning attorney today.

Reference: CNBC Money Report (Jan. 7, 2025) “Here’s why estate planning is a gift for your family”

Estate Planning Adds a Fresh Start to New Year

The first quarter of any year is always busy at estate planning attorney offices when people are catching up with the creation of an estate plan or revisions they meant to get done before the year ended but didn’t get around to finalizing. A recent article from the Press-Telegram, “New Year, new motivation for your estate plan,” shares some pointers for how to get this important to-do done.

The article is very clear: first, find an attorney. You aren’t expected to walk into an estate planning attorney with all the information you need or the answers. Their title, after all, is “counselors.” They help people work through all of the details. Most experienced estate planning attorneys also have organizers they provide to help guide you in listing assets, family members and ideas about what you’d like your plan to achieve. An estate planning attorney will keep you focused and organized.

Most people meet with two or three attorneys to see who they are most comfortable with. Is the office convenient for you, or can most discussions take place by phone or video chat? Did they explain how their own process works? Did they answer all of your questions? Were you treated with kindness? Or, if your estate is complicated, did they understand the complexity of your estate and the challenges about which you are concerned?

The article explains how searching for the least expensive attorney can create problems in the future. You want a professional with experience and understanding of estate planning techniques and the nuances of estate planning. For the same reason, don’t try doing your own estate planning with an online platform. These platforms have narrowed options down to the simplest and most common, and you won’t get the guidance you need regarding whether these are the best options for you.

The recent Los Angeles fires are a dramatic reminder of how quickly everything can change. If you don’t have a will, power of attorney, health care directives and trusts, and something unexpected occurs, what will happen to your family and your property? Who will know what you want regarding healthcare if an illness or accident occurs, and you can’t communicate your wishes?

Knowing where your estate planning documents are and sharing their location with people you trust is an oft-overlooked part of estate planning. If your documents are hidden deep within your home, will the person you named as a healthcare proxy be able to access these documents in a timely manner? Who knows the combination if they are locked up in a home safe?

Estate planning documents are often needed in an emergency. Make sure the people who will be using them can find them. Some estate planning attorneys provide clients with a binder and a thumb drive, so documents can be easily stored and shared. Where should the binder go? Don’t put this in a safe deposit box. If the safe deposit box is in your name and you are incapacitated or have died, no one will be able to retrieve the documents.

You hope you won’t need estate planning until your eventual demise. However, as we know, life happens, and the documents could make managing your affairs far more manageable for those you love. Start the new year off right by taking care of your estate plan and, by extension, your loved ones.

Reference: Press-Telegram (Jan. 19, 2025) “New year, new motivation for your estate plan”

What Does a Special Needs Trust Pay?

A special needs trust (SNT) is a financial tool designed to provide for individuals with disabilities without affecting their eligibility for government benefits such as Supplemental Security Income (SSI) and Medicaid. These programs have strict asset and income limits, meaning direct financial gifts or inheritances can disqualify beneficiaries from receiving essential support. By placing funds in an SNT, families can ensure that their loved one’s financial security while maintaining access to necessary benefits.

Allowable Expenses for a Special Needs Trust

Trust distributions must follow specific rules to avoid impacting eligibility. Understanding what an SNT can and cannot pay for helps trustees manage funds appropriately and ensure that they enhance the beneficiary’s quality of life. As such, planning should use special needs trust funds to supplement government benefits, not replace them.

How to Support Housing and Living Arrangements

While an SNT can pay for housing costs such as rent or mortgage payments, doing so may reduce SSI benefits because the Social Security Administration considers it “in-kind support.”

You can avoid reducing cash benefits by paying for housing-related expenses instead. These include accessibility modifications, utilities, taxes and insurance.

Paying for Medical and Health-Related Expenses

Medicaid covers many healthcare services. However, an SNT can pay for additional medical care not covered by government programs. Some of these gaps in Medicaid that an SNT can cover include:

  • Out-of-pocket medical costs and copayments
  • Specialized therapies (occupational, speech, physical)
  • Dental and vision care
  • Alternative treatments (acupuncture, chiropractic care)
  • Medical devices and equipment (hearing aids, prosthetics)

Funding Personal Care and Support Services

An SNT is broadly clear to fund personal assistance that improves daily living for the beneficiary. These include in-home caregivers and companions, respite care, meal delivery and transportation services.

Recreation, Travel, and Social Activities

Quality of life extends beyond necessities. A special needs trust can pay for activities that promote personal enjoyment and social engagement, including:

  • Vacations, travel expenses and accommodations
  • Membership fees for gyms or clubs
  • Hobbies such as art, music, or sports lessons
  • Concert, theater and event tickets

Education and Vocational Training

Many individuals with disabilities benefit from continued education and skill development. SNT funds can cover

  • Tuition for private schools or specialized education programs
  • Job training and certification courses
  • Tutoring and life skills coaching
  • Assistive technology for learning

Transportation and Vehicle Expenses

Reliable transportation is essential for independence. SNT funds can be used to:

  • Purchase or modify a vehicle for accessibility
  • Cover gas, insurance and maintenance costs
  • Pay for rideshare services, taxis, or public transportation passes

Assistive Technology and Communication Devices

Technology plays a significant role in supporting individuals with disabilities. SNTs can fund:

  • Computers, tablets and adaptive software
  • Wheelchairs and mobility aids
  • Smart home devices for accessibility (voice-activated systems)
  • Cell phones and internet services

What a Special Needs Trust Cannot Pay

Some expenses can jeopardize government benefits if paid directly from an SNT, including:

  • Cash gifts to the beneficiary: Direct cash withdrawals may be counted as income and reduce benefits.
  • Groceries and food expenses: SNTs can only cover these costs in specific circumstances.
  • Direct rent or mortgage payments (reduces SSI benefits if improperly structured)
  • Basic medical care covered by Medicaid

Trustees should work with a special needs planning attorney to avoid penalties and ensure that funds are managed appropriately.

Structuring SNT Distributions Properly

Because direct payments to the beneficiary can affect government benefits, funds from an SNT should be paid directly to service providers, vendors, or businesses instead of being given in cash to the individual. For example, rather than providing the beneficiary money for a new wheelchair, the trustee should pay the wheelchair provider directly.

Why Proper Management of an SNT Matters

Managing an SNT incorrectly can lead to Medicaid disqualification, SSI benefit reductions, or unnecessary taxation. To ensure compliance, trustees should:

  • Keep detailed records of all trust transactions.
  • Consult an estate planning attorney before making large purchases.
  • Work with a financial advisor to maximize the trust’s longevity.

Protecting a Loved One’s Financial Future

A special needs trust is one of the most effective ways to provide long-term financial security for individuals with disabilities. By ensuring that funds are appropriately used and distributed wisely, families can enhance their loved one’s quality of life while safeguarding their eligibility for critical government benefits.

Key Takeaways

  • Enhances Quality of Life: An SNT covers non-essential expenses like education, travel and recreation without affecting government benefits.
  • Healthcare and Housing Considerations: The trust can fund medical treatments, assistive devices and home modifications but must be cautious with direct rent payments.
  • Proper Distribution Is Essential: Funds should be paid directly to providers rather than given to the beneficiary as cash.
  • Avoids Benefit Reductions: Misuse of SNT funds can disqualify beneficiaries from Medicaid and SSI.
  • Professional Guidance Is Recommended: An estate planning attorney can ensure proper administration and compliance with benefit eligibility rules.

Reference: Special Needs Answers (Oct. 30th, 2024) “What Can My Special Needs Trust Pay for Without Affecting My Disability Benefits?”

Living Your Best Life Solo? You Still Need an Estate Plan

Whether relying on informal networks of “found” family, trusted friends, or professionals, solo agers must plan for the inevitable aging events. A recent article, “Solo Aging: Planning for Your Best Life,” from The National Law Journal, shares the details.

Most importantly, decisions about health care and end-of-life care need to be documented as part of your estate plan, and a person you trust implicitly needs to be named in the role of your healthcare proxy. You’ll need to make sure they are comfortable in this role and willing to enact your wishes, even if they disagree with them. They will also need to have access to the estate planning documents needed, including a Healthcare Power of Attorney, Living Will, HIPAA Release and any other documents your state may require.

You’ll also want to have a Power of Attorney prepared by an experienced estate planning attorney, naming a primary and a secondary person to manage your financial and legal life if you become incapacitated. If your candidates are around the same age as you, remember they may not be able to act when you need them to, so, if possible, name younger people to serve if they cannot.

Think beyond the basics. Depending upon where you live, you may want to have a POLST (Practitioner Order on Life-Sustaining Treatment) or MOLST (Medical Orders for Life-Sustaining Treatment) to state your wishes regarding life-sustaining treatment. Some people do not wish to have CPR performed on them in the event of a cardiac arrest and have a DNR (Do Not Resuscitate) document.

You’ll want to have a financial care plan to address emergencies. Seniors 65 and older are nearly 70% likely to need some long-term care in the next two or three decades of their life. If you don’t already own a Long-Term Care insurance policy, it’s time to consider whether you can purchase one. These are now often sold as part of a life insurance policy.

A last will and testament is needed to direct the disposition of your possessions after you die. If you don’t have one, your state’s laws will govern who receives your assets. Even if you have a long-standing relationship with a partner or best friend, they have no legal rights to inherit your property. A distant relative may be located by the court and inherit everything you own instead.

A last will is used to name an executor to manage your estate. This person will be responsible for more than distributing your assets. They are also tasked with gathering information about financial accounts, applying for a tax ID number for your estate bank account, gathering assets and placing them into the estate bank account, paying your final taxes, notifying Social Security of your passing, and filing an estate tax return.

Today’s estate plan includes planning for digital assets, so your social media accounts, emails, online photos and videos, gaming, subscriptions, cryptocurrency, and all other digital accounts are managed.

For the solo ager, having an estate plan protects you while you are living and protects your estate after you have passed. It takes some extra steps when compared to the planning done by married people. However, the peace of mind of expressing your wishes is the same, and you deserve this.

Reference: The National Law Journal (Jan. 10, 2025) “Solo Aging: Planning for Your Best Life”

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