How NOT to Leave a Mess for Your Loved Ones

Article submitted by the Law Firm of Ambler & Keenan. They can be reached at 303-407-1542.

As we go through life, few of us plan to leave a mess to our heirs when we need care or after we are gone. However, we frequently see families struggling to get through problems that could have been easily avoided with some simple estate planning.

Problem: Often, people procrastinate in estate planning. The old adage that if you fail to plan, you may as well plan to fail, is true in estate planning. Families often realize that a Medical Power of Attorney or General Power of Attorney is necessary AFTER it is needed. Unfortunately, if the POA has not already been signed, a guardianship or conservatorship will be necessary to appoint someone to make decisions.

Solution: Make sure that powers of attorney are signed while you are healthy. Simple powers of attorney will avoid the expense and frustration of guardianship and conservatorship, and make it easy for a family member to make decisions when you need care.

Problem Often, people enter into lifetime transactions that they think will simplify things after their death. However, often these complicate matters more than anyone could have imagined. For example, adding a loved one to the title of the home to avoid probate can result in disqualification from Medicaid, unexpected capital gains taxes, and possible gift tax. Further, the loved one may not take care of the desired property, get divorced, or have problems with creditors. Any of these issues could put the home in jeopardy.

Solution: Check with your estate planning attorney prior to any significant lifetime transaction, such as changing title to property or signing a Will, Trust, or Power of Attorney, to avoid unnecessary taxes and expenses.

By seeking competent legal advice, planning, and communicating those plans you can avoid the problems that so often wreak havoc on families, their emotions, and their inheritances. A qualified estate planning or elder law attorney can help you every step of the way so that you can be sure that your plans don’t create unnecessary expense and complications for your loved ones.