Wouldn’t it be more cost effective to skip law school and start ripping off people as soon as possible?

I mean really! Why shell out the big bucks for a law degreewhen you just plan on ripping people off. There is a name for people like this: criminals…. From Today’s New Haven Register:

Attorney accused of using dead aunt’s ATM card:

NEW BRITAIN (AP) — A Vernon attorney is facing charges of forgery, larceny and theft and other charges after police say she withdrew money from her dead aunt’s checking account and used her debit card at Kmart, Target and Toys “R” Us.

Thirty-three-year-old Heather Kaufman’ aunt died in December. According to court documents, Kaufman allegedly used her aunt’s debit card days to make cash withdrawals and shop. They say she also wrote a $1,000 check to her boyfriend.

Court documents show that Kaufman told police that the check and cash withdrawals were to help defray funeral expenses. She says the purchases were for presents for family members that the aunt would have wanted them to have.

A relative assigned by a probate judge to handle the estate told police that more then $3,000 was missing.

So Many Roads: Baby Boomers move from “Ohmmmm” to “Oh, my aching back”

The new mantra of the baby boomer generation is beginning to sound something like:  “I’m getting older, I’m not in the best of health, I’m worried about the costs of long term care, and I’m scared to death.”  This is the kind of stuff that keeps people (including myself) up at night.  It’s enough to make you crazy.  I wish that I could tell my clients not to worry, that it’s going to be alright, but often times it’s not alright, the effects of aging take over and many people end up in a nursing home and then the financial pain begins.  A long term stay in a nursing home can completely exhaust your estate, leaving nothing for your heirs.

The sooner you plan for this possibility the better.  Time can be both your worst enemy and your biggest ally, depending on how you approach the problem.   Often I am contacted by the families of people who are literally on their way to a nursing home- at this point time is not on their side.  Sure, we can preserve some assets but only a fraction.  I call this approach the “emergency planning mode.”  It is kind of like being on a game show, but the prize is your own “stuff” and you win by getting the privilege of keeping some of your own “stuff.”  Emergency Planning Mode is, of course, not the best approach to the problem.

The best time to plan is well in advance of needing nursing home care.  Given enough time and proper planning all of your assets can be preserved and sheltered from the costs of nursing home care.   Many people utilize irrevocable trusts to protect and preserve assets long term.  This is the best option for dodging the nursing home cost bullet, which can be financially devastating for you and your family.   Irrevocable trusts are also a great way to avoid probate and to ensure that you can pass something on to your heirs or favorite charity.

If you’re worried about the cost of long term care, get out in front of the problem.  Make an appointment with a qualified estate planning attorney and see what can be done to protect your assets.   Just because you can’t take it with you doesn’t mean that you have to give it to the nursing home.

If anybody would like to discuss their options, please contact my office for a free estate planning consultation:  203-234-7400.  If a one on one with an attorney is too much to start,  my firm will be hosting asset protection seminars in October and November,  please contact my office to reserve your spot.

Are You Planning On Dying or Living?

At least once a week a client comes into my office desperate to execute a Last Will and Testament as soon as possible. This may be motivated by an upcoming vacation, or a recent death in the family, among other things. If you are planning on dying soon, a Last Will and Testament is a must have. Wills contemplate your demise and fall under the category of “Death Planning.” Death planning takes care of your estate after you pass away. One important question for people to consider is: What if you plan on living? Wills take care of your affairs after you pass away, but what happens if you don’t die but become incapacitated in some way? Incapacity does not just strike the elderly; it does not discriminate between old and young. Planning for incapacity is what I like to call “Life Planning.” Life planning takes on many different forms. One of the core documents in a “life plan” is a Durable Power of Attorney. A Durable Power of Attorney is a written legal instrument in which you (the principal) appoint another person or institution (the attorney-in-fact or agent) to act on your behalf. By appointing an attorney-in-fact or agent you are NOT giving up the right to also act on your own behalf as you would normally. You are merely deputizing someone else who can also act as you would.

If a person becomes incapacitated and has not executed a Durable Power of Attorney, the Court can appoint someone to act on their behalf, similar to the way an agent acting under a Power of Attorney would act. The Court appointed person is called a Conservator. There are two types of Conservators: Conservators of the Person and Conservator of the Estate. Often the two roles will be filled by the same appointed person. There are two types of Conservatorship proceedings: Voluntary and Involuntary. In a Voluntary Conservatorship the individual to be conserved knows that they are having difficulty managing their affairs, and requests that the court appoint someone to assist. In an Involuntary Conservatorship someone other than the individual to be conserved requests that they be appointed because they believe the individual is unable to manage his/her affairs.

The process of having yourself or someone else conserved is quite complicated and certainly more expensive than executing a Power of Attorney. The major advantage in having a Conservator appointed is that the Court oversees the actions of the Conservator through periodic accountings and reviews. To involuntarily conserve an individual the court must find clear and convincing evidence that the person is incapable of caring for himself/ herself, and is unable to manage his/her financial affairs. Involuntarily conserving an individual involves several attorneys and doctors, as well as multiple hearings at the Probate Court.

The Conservatorship process can be costly and time consuming. Conservatorship proceedings can be avoided by executing a properly drafted Durable Power of Attorney. Plan for the future but don’t forget to plan for the present. A balanced plan should reflect both “life” and “death” planning.