Traditional estate planning is not concerned with you while living, only after death.
Tag Archive for: probate
Truth Stranger Than Fiction…
(Spelling? Punctuation? Editing? No Can Afford!) (Warning: Not Legal Advice!)
Can a guardian evict/kick someone off of a property the guardian has no rights over?
I have been cleaning up a property that belongs to my great grandma who is now in a nursing home. I was verbally told that if I could clean the property up and work on paying the back taxes, I could work on owning the property. But now she is stating she never said that and told me my mother is not to be on the property when she never told me she couldn’t. I was would like to know where her rights as a guardian plays into this property. She does not own anything.
Shortest Answer: Yes. Absolutely.
Short Answer: You are more screwed than you have imagined.
Unkind Comments: 1. Next time, when lawyers and judges are talking, pay attention! And when you do not understand, ask questions! 2. “Verbally told”?!? Seriously? 3. A stitch in time saves nine. 4. An ounce of prevention is worth a pound of cure. 5. Kiss Great Grandma’s house good-bye. Also, you’ll never get paid for your clean up or back taxes. Also, your mom’s getting evicted.
Kinder, But Not Much Kinder, Comments:
1. You are not alone. Regular folks, just like you, lose houses, lifesavings, peace of mind, work, effort, blood, sweat and tears, in similar circumstances every day. Hundreds, if not thousands of times every day.
2. It’s not your fault that you did not know. After all, there’s no 2-hour, live, weekly call-in radio show that provides this information (except on WOOD 1300 AM and 106.9 FM; WKZO 590 AM and 106.9 FM; WHTC 1450 AM and 99.7 FM; various others). There are no free workshops every week the Good Lord brings, in Norton Shores, Grand Rapids, Holland and Portage. No free videos on the website whenever you want ‘em. And certainly, there’s no Michigan Elder Law Reporter to let you in on the secrets. 3. Middle-class families routinely get chewed up and spit out by the long-term care system, you have lots of company. 4. Getting Great Grandma to avoid nursing home poverty is not easy. 5. Cleopatra is not the only Queen of Dee-Nile (Get it? Dee-Nile = denial! Funny, eh.)
Long Answer: Can we unpack this suitcase of suffering sadness? This trunk of troubled tribulation? This package of perplexing pain? This valise of vigorous vivisection? This bag of the boggling blues? This container of cloudy consternation? Let us begin.
Guardian, Conservator, Probate:
What Is It All About?
1. Everyone is getting older.
2. Some older people lose their minds.
3. At age 65, you have a 70% chance of needing an average of 3 years of long-term care services. 20% will need more than 5 years of services. https://acl.gov/ltc/basic-needs/how-much-care-will-you-need
4. When people lose their minds, others must make their financial and health care decisions.
5. A few people take action to decide who will make their decisions if they lose their mind. These blessed few do Trusts, Powers of Attorney,
Designations of Patient Advocate. Mind lost? No probate. No problem. Thankfully.
6. Most people take no action. If you are in the majority and lose your mind, a Probate Court Judge will decide:
a. Whether you have lost your mind
b. Who makes health care decisions (Guardian) for you
c. Who makes money decisions (Conservator) for you
7. Judge decides on Clear and Convincing Evidence. Presented in open court. On the record. Which is not humiliating or degrading at all. Ever.
8. If you get better, you must convince the Probate Court Judge by Clear and Convincing Evidence that you are now OK. Which is not humiliating or degrading at all. Ever.
9. With a Guardian, you are a legally incapacitated person. You cannot make decisions for yourself. Your legal rights? Extremely Limited. Will anyone care what you say?
10. Your Guardian and Conservator files annual reports with the Court.
11. Will the Guardian or Conservator be a family member? Will you get a Public Guardian? Ask the Judge. You had your chance and blew it. Don’t worry. Be happy.
Great Grandma failed to plan. Great Grandma went to Probate Court. And now a Public Guardian will decide everything for Great Grandma. Will the Guardian be guided by the specific, unique needs and aspirations of Great Grandma’s family? Or will the Guardian faithfully follow Probate Court protocols, one size fits all, the law’s best guess as to what most families would mostly do?
You have 3 guesses. Guesses 1 and 2 don’t count.
How It Plays Out
Statement: I have been cleaning up a property that belongs to my great grandma who is now in a nursing home.
Response/Observation: Great Grandma is probably in a skilled nursing facility on Medicaid. Average monthly cost of a skilled nursing facility is $10,000 – 15,000 per month. At the former Kent Community Hospital, residential, high-level skilled care is more than $25,000 per month. If Great Grandma is not already on Medicaid, she soon will be. And if Great Grandma has money, why the “back taxes”?
The state does not joyfully pay for long term care through Medicaid. When the state pays, it wants its money back. The state (so far) won’t seize Great Grandma’s homestead while she is alive. But, after death, the state shows up in Probate Court, looking for its money. Everybody knows that “The House is Protected from Medicaid!” False! “Everybody” apparently does not know that the house must be sold to pay back the Medicaid. After Great Grandma has died. With some loopholes.
Oh. And thanks for “cleaning up” the property. Did you know you are doing that for free?
Statement: I was verbally told that if I could clean the property up and work on paying the back taxes, I could work on owning the property.
Response/Observation: Whoops! You did not know you were doing the work for free? The law says you cannot make a probate claim for services without a written agreement. And the agreement must be written before you provide the services. Without a written, binding contract the Probate Court Judge will not listen to your story. And if you get paid while Great Grandma is still alive, Great Grandma will get hit with a penalty period, be denied Medicaid benefits and the skilled nursing facility will not be paid.
Do skilled nursing facilities enjoy not getting paid? No, they do not. So Great Grandma’s nursing home now sues Great Grandma. And wins! Now Great Grandma’s house must be sold to pay the legitimate bill of the deserving nursing home. And Great Grandma is off the Medicaid until the money is all gone. And you will not see a nickel.
COMMON SENSE POINT:
What the heck does “work on paying the back taxes” or “work on owning the property” mean? In English? Even if you were “verbally told” these things? You are dealing with real money here… Long-term care is expensive. Government does not (usually) just give money away. You are not being serious here. Get serious!
Statement: But now [GUARDIAN] is stating she never said that
Response/Observation: Of course, the Guardian is denying ever having promised you the property if you cleaned it up! It is unbelievable that any Guardian with any sense of their fiduciary duty as Guardian would say such a thing. Not credible. And that’s why we write things down. Because maybe (however unlikely) the Guardian did agree to something like this. But no one will believe it.
In Merrie Olde England, 450 years ago, Parliament created the Statute of Frauds. To stop folks from cheating each other. Our Founding Fathers adopted the Statute of Frauds for American law. The Statute says any contract for land must be in writing. End of story. See you later. Done.
Statement: [GUARDIAN] told me my mother is not to be on the property when she never told me she couldn’t.
Response/Observation: I did not tell you that your mother could not live in my house either. That does not mean that she can.
The Guardian’s job is to preserve Great Grandma’s property and to use it for Great Grandma’s benefit. If the Guardian chooses to evict you from Great Grandma’s home, Guardian can do it. You have no right to control Great Grandma’s home. If you allow someone else into Great Grandma’s home without authority, the Guardian can evict them. Even if the squatter is Great Grandma’s grandchild.
Statement: I was would like to know where her rights as a guardian plays into this property. She does not own anything.
Response/Observation: The Probate Court gave Guardian all Great Grandma’s rights over Great Grandma’s home. That’s the whole point of having a Guardian. It is a big deal.
What Is That Sizzling Sound? It Is Your Lifesavings Imploding At $12,000 Per Month
Vaporized Like A Snowflake On A Hot Griddle
Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.
Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.
Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long- term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?
LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.
When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.
Is Now A Bad Time For A Real Solution?
Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all. It is possible that you do not believe in the passage of time or its effects on you.
Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?
Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?
Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.
The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?
NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.
Get Information Now. (800) 317-2812
Traditional Trust Planning Failure A Scam? Say It Ain’t So!
Traditional estate planning is supposed to avoid probate, save taxes, and dump your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.
Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.
Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long-term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?
LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.
When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.
Is Now A Bad Time For A Real Solution?
Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all. It is possible that you do not believe in the passage of time or its effects on you.
Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?
Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?
Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.
The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?
NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.
Get Information Now. (800) 317-2812
Traditional Trust Planning Failure A Scam? Say It Ain’t So!
Traditional estate planning is supposed to avoid probate, save taxes, and dump your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.
Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.
Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long-term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?
LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.
When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.
Is Now A Bad Time For A Real Solution?
Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all. It is possible that you do not believe in the passage of time or its effects on you.
Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?
Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?
Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.
The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?
NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.
Get Information Now. (800) 317-2812
Multi-Verse Of Madness? A Random Walk Through The Valley Of The Shadow Of Incompetence
The Original Three Stooges, At Least, Were Funny
Why is our world run by 3 old men with health issues and questionable mental capability? Three geezers with sufficient atomic and hydrogen bombs to erase humanity? Two of them with sugar plum visions of long-lost imperial splendor dancing in their heads. Willing to slaughter other folks wholesale. Two greedy, stuffed-up potentates. Dozens of minor characters in supporting roles have similar grandiose cloud cuckoo land delusions. Complete the picture with a cast of thousands eager to murder for earthly paradise.
Is it surprising that totalitarian tyrannies spew forth thieving tyrants? Isn’t that pretty much what they do? Murder, conquest, plunder, looting, and pillaging are part and parcel of the tyrannical deal. Successful crime proves that the “mandate of heaven” rests on the tyrant.
A couple hundred years ago, a few, very few, people decided to chart a different course. To depend on one another. And vigorous, unrestrained debate. Government based on the consent of the governed. A radical idea that regular folks had something to say. A nation free of tyrants. Composed of free people. Thinking, speaking, and acting freely. Naturally, “smart” people have been desperately fighting against this dangerous idea ever since.
The good and the wise know that too much talking is bad for the peasants. Commoners need a Ministry of Truth, Commission for the Public Good, Ministry for the Promotion of Virtue and Prevention of Vice, “Disinformation Governance Board.” Intellectual leading lights from Ivy League universities must ensure you do not think the wrong thoughts or say the wrong words. Or hear anyone who does.
Can the third decrepit old gentleman really be blamed for much of anything? As a two-bit grifting politician, he sold out for cheap long ago. Enabling family members’ dirty dealing with foreign countries and powerful corporations. Selling influence and access. Kickbacks to the “big guy”. Penniless politician to Bruce Wayne multimillionaire. His only surviving son condemned to a maelstrom of drugs and paid-for sex. Pitiful really. Charley McCarthy in the White House. Merely a marionette. Pathetic puppet, dancing to strange tunes.
Yet this superannuated reprobate has performed a valuable service. He proved the obvious: when America retreats, tyranny fills the void. Ask Finland. Ask Sweden. Two countries with centuries of neutrality. Comfortably secure under the American umbrella. Until now. Today they frantically clamor to join the NATO Neighborhood Watch.
Harry Potter Is To Blame!
Or Maybe It Is Doctor Strange’s Fault
Remember the Marvel superhero movie, Ironman? A science guy builds himself a metal suit that flies and blows bad guy stuff up. Cool. Remember Spiderman? Radioactive spider bite, science-science, teenager with spider powers.
Beats bad guys up. Even Superman had the whole red sun/yellow sun science explanation for superpowers. Not anymore. Today superheroes are all magic.
Remember the Harry Potter books and movies? How about the vampire and werewolf books and movies? Say or think the right thing and stuff just happens. All magic. All the time. Magical!
Have you noticed that magical thinking has taken over? Men become women by simply saying so. You don’t even need a fancy spell. Or surgery. Why tampons in the Mens Room? Because men now menstruate. And give birth. How does a man have ovaries and a uterus? Perhaps it helps to start as a woman. Astounding new world records in women’s sports? Perhaps starting as a man helps. Not even Supreme Court Justices can tell the difference. Abracadabra indeed!
Imagine an old, broken-down horse. Shabby. Weak. Shuffling. Re-living its days as a foal. Kept around from pity. Would you enter that horse in the Kentucky Derby? Or the county fair? You might if you believed in the power of magical thinking. You would just tell yourself, and everyone else, that your nag is really a thoroughbred racehorse at the peak of its powers. And if anyone disagreed, you and your friends could shout them down. Fairness requires hobbling all the other horses, since their actual talents and abilities are “unfair” to the nag. Who would enjoy such a race? What would the outcome be?
Is it ridiculous to think that magical thinking in the real world leads to disaster across the board? Would you like to drive across a magical bridge? Live in a magical apartment house? Why not? It’s only fair.
Magical Thinking: Consequences
BASIC PRICE INFLATION. In April 2022, the United States failed to set a new 40-year record high for inflation. At least it stayed above 8%, though, so all of you buying groceries on your credit cards… keep it up, you will have to…
Ivy League Necromancers first blamed the magic inflation on too many people buying treadmills. Then Congressional Conjurers claimed it was temporary. Next Sorcerers Senatorial blamed it on Russia’s Mad Monk Rasputin. Now our trusted Thaumaturges assert something else, but frankly, we have lost track.
Good News! The Ginger Oracle’s Replacement says Inflation will be cured! By raising taxes. We swear we are not making this stuff up. Here is what the federal Bureau of Labor Statistics says:
MORTGAGE INTEREST RATES. Mortgage rates continue to astonish, but the American Dream lives! “Homebuyers continue to show resilience even though rising mortgage rates are causing monthly payments to increase by about one-third as compared to a year ago,” said Sam Khater, Freddie Mac’s Chief Economist. Thank you, Sam! Great to see our public servants serving the public!
Hey Home Sellers! Interest rate increases caused monthly payments go up by ONE-THIRD… Could HOME PRICES be affected? What do YOU think? Can you pull a Homebuyer out of a hat? You may have to….
ONE MILLION DEAD FROM ELDER PLAGUE. Do you remember a politician who claimed he would stop COVID? Neither does the Washington Post. Or New York Times. Or the politician himself. He even forgot he was vaccinated. Oh well. Elections are supposed to be magic!
According to the Centers for Disease Control and Prevention, more than a MILLION AMERICANS have died from the virus of unknown origin. Widespread hysteria about the kids was manufactured by people who did not go to work, but still got paid. Fortunately for the children, the virus of unknown origin DOES NOT (hardly at all) KILL KIDS, but it is deadly to older folks. Almost exclusively.
From the very beginning the Reporter has described COVID as the “Elder Plague.” And that has NEVER changed. Here’s the current official CDC chart. Notice anything about deaths among kids ages 0-17? 0-29?
NEW RUSSIAN BEACH FRONT RESORT. In Ukraine, on the Black Sea, is a steel plant. You may have heard of it. Bombed for months. Blasted to smithereens. Now your best Russian friend and mine, Crazy Vlad, is repurposing this fixer-upper opportunity as beach resort. Come for Time Share Presentation, leave with new set of steak knives! Wow! Magic solves everything, no?
TOP 10 AMERICAN THEME PARKS. Because inquiring minds want to know, USA Today, a “newspaper” asked regular folks which were the BEST THEME PARKS. #1 is an aquarium which used to have whales in a tank, but not anymore. Winners include a brewery-sponsored park, another that smells like chocolate, and two with country music themes. But the “Happiest Place on Earth” was shut out. Maybe normal folks have had enough of rich people insults. Maybe, finally, “Ladies and Gentlemen! Boys and Girls! Children of All Ages!” isn’t the only thing headed for the garbage dump. Did they think they could magically wish away their customers? Guess so!
Why Can’t You Live In The Magic Kingdom?
Why are the magical thinkers so unhappy? Why does everything they touch turn to crap? Why are they angry? Why are they unable to hear anyone but themselves?
Are you opposed to living in the real world? Are you against your actions having consequences? Do you live to blame other people for your own faults and failings? Do the real abilities and accomplishments of others fill you with jealousy and rage? Are you so special that the world owes you a living? Are you a precious snowflake that all must admire? Are you happy and secure in your own talents and abilities and appreciative of others? Does Magical Thinking work for you? Do you think it would work for your kids?
Is it ridiculous to think that primitive humans, whose lives were “solitary, poor, nasty, brutish and short,” were still more grounded in reality than the politicians, intellectuals, and other talking heads who insist on one absurd foolishness after another?
It is a blessing to be middle class. No one worships you. You do not inspire fear, anxiety, or dread. Others will tell you the truth. And demand truth from you. We have our challenges to be sure. And the good news is that we are not surrounded by toadies lying to us about those challenges. Lucky you! Lucky me.
Traditional Planning Is Death Planning
Avoid Probate, Save Taxes, Get To Kids? And When You Die Broke, Drained By Long-Term Care, Probate Is Irrelevant
Traditional estate planning is supposed to avoid probate, save taxes, and dump your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.
Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.
Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long-term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?
LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.
When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.
Is Now A Bad Time For A Real Solution?
Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all. It is possible that you do not believe in the passage of time or its effects on you.
Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?
Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?
Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.
The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?
NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.
Get Information Now. (800) 317-2812
Like Driving Past A Car Wreck… Glad It Did Not Happen To You (Not Edited For Spelling Or Punctuation Or Anything Else) (Warning: Not Legal Advice!)
QUESTION: Can our disabled brothers legal guardian (also a family member and remainderman) terminate disabled brothers life estate?
Disabled brother is now in nursing home and will not return to family home which he has life estate in and is also in an irrevocable trust. There are many remaindermen, (large family) and all are in agreement to sell family home including our disabled brothers guardian. Another family member/remainderman wants to buy us out and move into home, hoping that we can all just sign off of house/ trust and quitclaim the property to her. Not sure if this is “allowable” or advisable. We also have concerns about potential “Medicaid recovery” if life estate is terminated while life estate holder is still alive.
Short Answer: Oh what a tangled web we weave, when first we practice elder law without a firm grounding in the fundamentals. Imagine sorting out this fact pattern after the family house was sold, money distributed, Medicaid denied, recriminations on all sides, nursing home lawsuit against disabled brother, allegations of fraudulent transfer against siblings, and a family feud ripe with recriminations echoing through eternity. In other words, the usual case.
Is it crazy to think it is not too late? Is it impossible for sweet reason and angelic actions to save the day? Must this family suffer?
Long Answer: There are several threads here that need to be disentangled. Let us begin with brother’s life estate.
LIFE ESTATE
In Michigan, “life estate” means that the person can use and live on the property for their entire lifetime. A life estate is valuable. How valuable?
Back in the day, we used to have hearings with expert witnesses and do future value projections based on life expectancy and then present value regression analyses. But in today’s modern world, Michigan makes it easy to figure out how much a life estate is worth. Get a copy of the Bridges Eligibility Manual 400, Exhibit II – Life Estate and Life Lease Factor Table (BPB 2022-07) (available online!). This Table lists ages from birth to 109 years old. For each age, there is a 5-digit life estate factor. You look up the factor that corresponds to the age of the person. Multiply the factor by the value of the real estate. Voila! That is the value of the person’s life estate.
IMPORTANT POINT: Life Estate values have nothing to do with the actual health of the Life Estate holder. Life Estate Value is all about chronological age. Birth certificate and calendar. Healthy or on hospice? Irrelevant.
A few examples. Let us suppose the family home is worth $100,000.
At age 2, the life estate factor is .99017. So, a two- year old’s life estate is worth $99,017. ($100,000 X .99017)
At age 109, the life estate factor is .04545. That means that the 109-year-old’s life estate is worth $4,545. ($100,000 X .04545)
At age 70, the life estate factor is .60522. How much is a 70-year-old person’s life estate worth? Correct! $60,522. ($100,000 X .60522)
What this means is that “if life estate is terminated while life estate holder is still alive” the life estate holder must be paid the value of the life estate as determined by the BEM 400 Life Estate Factor Table. Easy!
Let’s consider the flip side… the remaindermen.
If 70-year-old disabled brother’s life estate is worth $60,522, what are all the remaindermen’s interests worth, collectively? Correct again! $39,478. ($100,000 – $60,522) Divided by the “many remaindermen” of a “large family.” Betcha didn’t see that coming!
DISABLED BROTHER’S GUARDIAN
Disabled brother has a guardian. Does that mea we are in probate court? Yes! Does that mean that any sale of the property must be approved by probate court? Yes! Does that mean that we will have to pay an attorney to help us ask the probate court for permission to sell? No! Like plumbing and electrical work on your home, probate can be a “Do-It-Yourself” adventure. Emphasis on “adventure.” Can you steer your automobile with your feet? Sure! But that does not make it a good idea. Like do-it-yourself electrical work, plumbing, or probate. Jes’ sayin’.
Probate is required even if disabled brother also has a conservator for management of his assets.
MEDICAID RECOVERY
Remember how disabled brother got the money from the sale of the family home? If disabled brother was already on Medicaid, getting the money will boot him off. Until the money is all “spent down.” Or until the money is stashed in a Medicaid payback trust. Or a charitable pooled income fund. Or somewhere else where the other family members will not benefit.
Are there worse ideas than selling the family home before disabled brother’s death? Sure! You could invade Ukraine, expecting a liberator’s welcome. You could dump trillions of dollars into the economy, expecting no inflation. Spit into the wind. Tug the mask off the ole Lone Ranger. Mess around with Jim. Bad ideas.
When disabled brother dies, his life estate is over. No compensation. No estate or Medicaid recovery. The remaindermen get the remainder. All the remainder. Yay!
But in the meantime… You want to keep the family house occupied. Vacant houses have a way of burning down. Vacant house insurance is hugely expensive. Plus you still have to pay the taxes. And utilities. Mow the grass. Plow the snow. Paint it.
Why not let sister move in now, provided she pays all expenses? Subject to a written agreement? Give her a right of first refusal (not an option) so she may purchase the place after disabled brother’s death?
There are other possibilities. Leasing/subleasing.
Etcetera. But do not accept the assertion that it must be sold pronto. The family has options.
IRREVOCABLE TRUST
What’s going on with this?
Somehow there is an irrevocable trust blended into the mix. It is not obvious how that trust is being used, if at all. There are several possibilities. But a review of the trust would be essential to knowing what is going on.
Question: Can my father’s caretaker accept his entire estate? Can she be sued for selling everything? He is still alive. My dad signed over his house to his caretaker before she put him into an assisted living home. She then quickly sold it. He has 2 living children. Do I have any recourse now?
Short Answer: No, you do not “have any recourse now”. Sadly, a properly executed deed has consequences which cannot be undone. Even a deed that reverses the prior transfer has real world consequences that cannot be ignored. What consequences? [WARNING: LAWYER ANSWER TO FOLLOW] It depends.
Longer Answer: Is it possible that the caregiver may be sued or prosecuted for financial abuse of the elderly? Is it possible that Father was incapacitated or mentally incompetent at the time he signed the deed? Could those be grounds to throw it out? What if Father was coerced into signing by undue influence, would those be grounds as well? Perchance. Maybe. Possibly. Mayhap. Hmmmmm, tugs at goatee…
How can you prove that Father was consistently and continually mentally incompetent? Or coerced? Were you there the whole time? When he signed? These are difficult cases. Difficult to forget about apparent injustice. Difficult to remedy the injustice. Difficult to know if there was any injustice at all. Difficult to reconcile when the “bad actor” is a family member.
Is it crazy to think that it might just possibly be helpful to have had some professional assistance in this sort of situation? Maybe possibly a few bucks and hours now to avoid big bucks and years of woe in the future? Asking for a friend…
Father, it seems, was mentally competent and had the legal ability to sign. Adults can choose. Poorly. With disastrous consequences.
You may not believe it, but some folks with signs of developing dementia are propped up by gangs of greedy grasping gargoyles intending to gorge on ill-gotten gains. Despicable devils who deny demonstrable incoherence, impulsiveness, and inconsistency. For their own putrescent purposes. How can such evil exploiters exist? Trust the evidence of your own eyes if you doubt it.
Actions have consequences.
Question #1: Can my durable POA withdraw from my IRA and sell my home if I become incapacitated?
Question #2: Can I specify what accounts he can access?
I have two stepchildren. I will probably make one of them my durable POA—but I don’t want them to be able to access certain accounts that I have… if I become incapitated-nor do I want them to sell my home. Hopefully, I would have enough in my bank account to cover medical bills.
Question #3: Can I specify in my will what accounts the POA would have access to withdraw from? I am concerned about abuses as I have heard some horror stories and I have no children of my own or close friends. Question #4: Would I be better off getting a bank to manage my affairs?
Answer #1: Powers of Attorney always depend on the authority you write into them. You can limit the ability of the Agent under the POA however you choose. Generally, to be effective, you want your Agent to be able to access your Individual Retirement Account and to deal with your home.
Answer #2: Yes, you can limit the Agent’s access to specific accounts.
Answer #3: Horror stories are real. Financial abuse of older folks is also all too common. The good news is that there are professional trustees and fiduciaries who will not steal your money. So if you do have some question about the stepchildren, do not appoint them as your trustees or executors or agents or patient advocates or any other position of responsibility.
Answer #4: You may “be better off getting a bank to manage [your] affairs.” Professional trustees vary widely in their commitment to service and delivering value. Your friendly neighborhood elder law attorney (should) have plenty of experience with a range of professional trustees and banks. Why not ask? However, do not use an attorney as your trustee. The trustee function is fundamentally different than the lawyer function, in my opinion. A focused, professional trustee will do that job with much greater efficiency and at less cost than the typical attorney. But you still need to take care that you have the right trustee, and your attorney can be very helpful in that regard.
Is Now A Bad Time For A Real Solution?
Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?
No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.
The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?
“Everybody’s Got A Plan… Until They Get Punched In The Mouth”
—Iron Mike Tyson, Philosopher
Why Do 96% Of Trust-Based Estate Plans Fail?
You Paid Good Money, Why Did You Get Such A Lousy Plan?
Your Banker, Accountant, Insurance Agent, Tax Preparer, Financial Advisor, Attorney All Know Your Trust Won’t Work… Why Aren’t They Telling You?
“No plan of operations extends with certainty
beyond the first encounter with the enemy’s main strength.”—Von Moltke the Elder, German Field Marshal
Is it easy to plan for the future? How can we anticipate changes in the law, changes in the rules, changes in our health? Sure, you like Von Moltke The Elder your kids now, but what if one of them [Fill- Creative Commons In-The-Blank]? Do things always turn out just as you expect?
For example, let’s say you are evil. And decide to invade a neighboring country. Seems like a good idea to you. Everybody thinks it’ll be super. Plus, everybody says the people in that neighboring country will welcome your bullets, bombs, death and destruction. They simply cannot wait for you to rescue them from independence. So you plan. Poorly. Who needs extra food rations or ammo? Not us! Instead, your invading soldiers pack their dress uniforms for a Victory Parade. What? Me worry?
What if things do not go according to your plan? What if you get punched in the mouth? What if your invasion takes days rather than hours? Weeks rather than days? Thousands of your guys dead? And your missiles are falling on maternity hospitals? Plus you have run out of gas, your vehicles break down, and your tires are falling apart? And because your military radios don’t work, you use open access civilian walkie-talkies. Your economy in shambles? Then what, Mr. Evil Invader Guy? Are you in deep trouble?
Maybe. But what if your primary geopolitical adversary is a corrupt career grifter whose primary skill is steering bribes to family members? What if this opponent was also an aw-shucks front for multinational corporations? What if he was well known for plagiarizing the homespun life stories of other politicians? Lucky you, Mr. Evil. Maybe you’ll be OK.
Of course, that is all so unrealistic and fantastical, it could never happen in real life. Ha ha. Mr. Evil invading a sovereign country in the heart of Europe… ridiculous! Bumbling, ineffective opposition who claims “I maybe Irish, but I’m not stupid!”… preposterous!
And since we are being so silly and ridiculous, let’s add a few more what-if’s, shall we? What if that grifting politician was also suffering from the onset of dementia? And what if the second-in-command was also a grifter, as well as a national embarrassment and disgrace? And what if the next backup replacement was, of course, also a grifter, but over 80 years old with mannerisms indistinguishable from public drunkenness? Absurd, of course, Mr. Evil Invader Guy would sure have to be lucky!
Too outlandish. But remember what Yogi Berra said:
‘It’s tough to make predictions,
especially about the future!’
What if you seek normalcy? You have had enough excitement. All you want is for things to go smoothly. Calm. Peaceful. Simple. So you plan for peace. To run things, you hire a guy who says he is a no malarkey, down-to-earth fella. And you believe him.
All of a sudden, Mr. Evil appears. Wars erupt. Prices skyrocket. Food shortages are threatened. People getting shot in the streets. Atomic war back on the table. People at each other’s throats. And all you did was hire a nice old man to take care of things for a little while so the world could simmer down. So much for your plans.
Planning is tough. No kidding. It takes a lot of work to make things work. As the Dread Pirate Roberts, a/k/a Farmboy Wesley, said to Princess Buttercup:
“Life is pain, highness.
Anyone who says differently is selling something.”—William Goldman, The Princess Bride
Why Your Trust Will Fail, Despite Your Best Laid Plans
Your trust will fail because you will not retitle your assets to the trust. That is it. Simple. In your trust binder is a memo telling you to put your stuff into the trust. You did not do it. That is how your assets will wind up in probate. That is why your trust will not avoid probate. And because you got the memo, it is all your fault.
You have heard all this before, right? Boring! So let’s go to the next level.
How Ladybird Deeds Cost Regular Folks Millions Of Dollars
How A Ladybird Deed May Cost You $68,500 Warning: This Part Is Really Confusing
Seems like lots of folks are doing ladybird deeds. Also known as “enhanced life estate” deeds. Or “transfer on death” deeds. There are many reasons to avoid ladybird deeds, except in precise circumstances. Unfortunately, many folks (including so-called elder law attorneys) think these deeds are “Medicaid-friendly.” They cannot tell you why these deeds are so “friendly”, but they will repeat the phrase endlessly.
We are not getting into all the reasons ladybird deeds are disastrous. Like a laser beam, our focus is how the misguided ladybird deed can cost a married couple $68,500. And why the hapless, hopeless person who told you to do a ladybird deed should stick to doing something else. Like drunk driver defense or something…
As you know, this blog is an infallible source of witty repartee, banter, life lessons, and easy-to-understand concepts. What follows is none of that. So do not complain to me if you keep reading.
I call this the “Pump Up the Pie” technique. If you can have half a pie, do you want a small pie or a big pie to start? I say, let us make the pie as big as possible. This technique has saved hundreds of families well over a million dollars: Background: How It Usually Goes, The $68,500 Mistake!
1. A married couple. John and Jane. (Or Jane and Jane, etc, it’s up to you.)
2. John and Jane own a house worth $137,000. Ladybird deed to the kids. Or a trust.
3. John and Jane have a checking account with $139,000.
4. John has dementia, needs skilled long-term care, checks into a Skilled Nursing Facility (“SNF”) for the duration. At $12-$15,000 per month.
5. Jane says “Oh dear! How will I pay?”
6. The Protected Spousal Amount – Minimized By Poor Planning
a. SNF social worker says, “Jane, what do you and John own?”
b. Jane: “House with ladybird deed.”
c. SNF Social Worker: “We don’t care about that. Homestead with or without ladybird deed is exempt. What else?”
d. Jane: “Checking Account with “$139,000.”
e. SNF Social Worker: “Well, John gets to keep $2000. And you can keep one-half of what is left! Your Protected Spousal Amount, that you can keep, is $68,500.”
f. Jane: “What?”
g. SNF Social Worker; “After you ‘spend down’ to $68,500, Medicaid will pay the bills.”
h. Jane; “Oh happy day! I thought I’d go bankrupt!”
i. SNF Social Worker: “Yes, happy days are here again.”
7. Jane pays the SNF the $68,500 and 4 months later, John is on Medicaid. With a dodgy roommate. And one shower a week. And laundry service that lost all his clothes, but provides others “just as good.”
8. Jane is entitled to the “Minimum Monthly Maintenance Needs Allowance” and gets some of John’s income through the “Community Spouse Income Allowance” so she can make ends meet, month to month.
SUMMARY: When a married person needs Medicaid to pay for long-term care, the Community Spouse can keep one-half of the lifesavings up to a maximum of $137,000 (for 2022). Remaining lifesavings go to the facility for care of the Institutionalized Spouse (Or other spend-down.)
NOTE: Is it obvious that lots of details are being left out? Well, lots of details are being left out.
Planning Ahead: Do No Harm, Preserve Lifesavings
Here’s how we get John the Medicaid benefits that he and Jane have earned, without calamitous “spend-down” of lifesavings security.
1. A married couple. John and Jane. (Or John and John, etc, your call.)
2. John and Jane own a house worth $137,000. Deeded to their basic, vanilla, nothing special, garden variety, revocable living trust (“RLT”).
3. John and Jane have a checking account with $139,000.
4. John has dementia, needs skilled long-term care, checks into a Skilled Nursing Facility (“SNF”) for the duration. At $12-$15,000 per month.
5. Jane says “Oh dear! How will I pay?”
6. The Protected Spousal Amount – Maximized by Brilliance
a. SNF social worker says, “Jane, what do you and John own?”
b. Jane: “House that is deeded to our RLT.”
c. SNF Social Worker: “Oh no! That is terrible! When a house is deeded to an RLT, it is NOT exempt. It counts just as if it were cash! So sad… What else?”
d. Jane: “Checking Account with “$139,000.”
e. SNF Social Worker: “Well John gets to keep $2000.”
f. SNF Social Worker: “Now we have to figure out how much you can keep as your Protected Spousal Amount. Let’s see, there is $137,000 of house that counts like cash, PLUS, $137,000 of real cash. That is a total of $274,000. And you can keep one-half! You can keep $137,000.”
g. Jane: “That’s great! With a ladybird deed I could only keep $68,500.”
h. SNF Social Worker: “Yeah, but now you have to sell the house. And give us the money.”
i. Jane: “Urk!”
7. Jane has a Special Telephone Conversation with her Attorney from the parking lot:
a. Jane: “#@*^%#!!! $@!#$%!!!”
b. 20 minutes later…
c. Attorney: “Jane?”
d. Jane: “I can’t believe you cost me my house! You are Mr. Evil. -)<>(-@#$!!”
e. Attorney: “I may be Irish, but I’m not evil.”
f. Jane: “Prove it!”
g. Attorney: “Because the house was in the trust on the first day of continuous care, which is also called the Initial Asset Assessment Date, or the snapshot date, the house counted as cash.”
h. Jane: “I already know that you hellhound!”
i. Attorney: “Because the house counted as cash, your Protected Spousal Amount (aka Community Spouse Resource Allowance) is maxed out at $137,000.”
j. Jane: “Enough with the double-talk you shifty shyster. You cost me my home!”
k. Attorney: “No, not at all… because we anticipated this situation and wrote the trust and the powers of attorney as we did, you can now deed the house out of the trust to you and John.”
l. Jane: “So what?!”
m. Attorney: “So now, the house is not countable cash, it is exempt homestead once again!”
n. Jane: “You mean it just disappears?”
o. Attorney: “No, we account for the house to the Medicaid folks, but now it is exempt homestead, because it is in your name and John’s.”
p. Jane: “David, is this legal?”
q. Attorney: “Oh yes, Bridges Eligibility Manual 405 says ‘Converting an asset from one form to another of equal value is not divestment even if the new asset is exempt.’ We are converting your home from countable asset to exempt homestead.”
r. Jane: “I think you’re giving me the old razzamatazz!”
s. Attorney: “What we have done together is a plan that just saved you $68,500, because John immediately qualifies for Medicaid without any spend down.”
t. Jane: “That’s OK, I guess.”
8. What if Jane dies first?
a. Jane: “But what if I die first? Then John owns the house and all the assets and they all melt away like snowflakes on a hot griddle!”
b. Attorney: “Good point. So here’s what we do next:
i. Deed the house from John to Jane, only.
ii. Amend the RLT to provide that at Jane’s death, if John is still alive, the RLT assets, including house and money, all go to a new trust established by Jane’s will.
iii. Deed the house from Jane to the RLT, but NOW using a ladybird deed. This way the house does not actually transfer until Jane dies. This way the house does not count like cash.”
c. Jane: “Why do I have to do a new trust established by my will? That sounds like make work for you lazy lawyers!”
d. Attorney: “Honestly, I don’t know why they make us do it this way, but BEM 401 says the trust must be “established by a will” or all the assets will count against John.”
e. Jane: “But you keep saying that wills mean probate!”
f. Attorney: “Yes, there is a two-page filing in probate court to set up this trust for John, but no inventory or accounting. Simple and quick. First with experience and quality.”
g. Attorney: “Now all the family assets are held for John’s benefit.”
h. Jane: “That’s OK, I guess.”
9. What happens when John dies?
a. Jane: “So what happens to the leftovers after John dies?”
b. Attorney: “The trust in your will says to put the assets back in the original trust after John dies, so the distribution to your kids and beneficiaries stays private and out of the probate court.
c. Jane: “Well, you certainly seem to have thought of everything!”
d. Attorney: “Yes, we are amazing!”
If you are still reading this, you may be getting the idea that there’s a lot going on here. And you would be correct. The bigger question: Is it worth it?
Even If This All Works… Is It Worth It?
Imagine that your dad is a high-flying politician. That you are a crack-smoking, self-indulgent, profane, idiot who likes to video his sex and drugs and rock n roll on his laptops. And then lose various laptops at least 3-4 times. Imagine that you can break all the rules because you funnel the back channel bribe money to Pops. Welcome back my friends to the show that never ends… Money just keeps flowing…
Well, if that is you, what does $68,500 mean? Seriously, $68,500 is last night’s bar tab, not including the broken furniture or “room service.” To some people, $68,500 is not much. Certainly nothing to worry about. But what is $68,500 to Jane? John is not around to fix things. Not here to cut the grass. Or shovel the snow. Not running errands anymore. How is Jane supposed to cope? Especially with her financial security cut in half? What is $68,500 to Jane? It is making sure John gets all the care he needs… whether Medicaid will pay or not. That money is a lifetime of blood, sweat, tears, and coupon clipping. Common sense frugality that provided a comfortable way of life. That should not be sacrificed because some clown with a shingle or a shiny website can’t be bothered to learn how this stuff really works.
Can You Really Do That? Is That Legal?
Faithful readers know that we do not write the rules, we merely read them. And report the results to you. Not making stuff up. Whose fault is it that nobody told you about these things? Sure, the blame game is pretty popular with some folks. We think it is better to light one candle than curse the darkness. Let’s take it from here without the coulda, shoulda, woulda, shall we?
This “Pump Up the Pie” technique has been used by many families over the last 30 years. Saving millions. Legal? As the day is long. Approved repeatedly over the decades by the Michigan Department of Health and Human Services. Because it is the law. Of course, applications must documented to a fare- thee-well. Hundreds of pages of audit-proof financial records. So, yes, you can really do that. If you do it correctly.
Why Would Medicaid Let You Get Away With Such Pie-Racy?
Is it piracy when the State lets you keep some of what you have earned? Is it ridiculous for you to get a bit of return on your tax dollars? Do you deserve nursing home poverty?
Of course, the State answers, “Yes, yes, a thousand times yes!” to these questions. So why do they allow us to Pump Up the Pie? Who knows? Probably because most families are not aware of it and do not get to keep as much as they should. It is not that big a deal for them. It is a big deal for you, and that is what LifePlanning™ is all about.
Is Now A Bad Time For A Real Solution?
Do you have all the answers? Maybe you do not see any problems at all. Is it possible that you do not believe in the passage of time or its effects on you?
Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?
Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?
Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.
The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?
NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.
Get Information Now. (800) 317-2812
Simple Questions… That Nobody Asks Until It Is Too Late.
Things Everybody Takes For Granted… But Shouldn’t
Would You Happily Put Your Kids In The Back Seat Of A Pinto?
Eyewitness: “the car exploded “like a large napalm bomb” when it was hit”
Why does anyone plan their estate? Why did you spend all that time and money for a will or trust? If you are like most people, you plan ahead for peace of mind. Sure, the future is uncertain, but we are not helpless. Estate planning and elder law can ensure that our life’s work will serve us. And our families or loved ones. Too bad most planning does not work that way.
What does everybody know about the Ford Pinto? It was a good-looking car. Economical! Popular in the 70’s. Millions sold. But it had an unfortunate tendency to explode on impact, engulfing its passengers in a gasoline fireball. With disastrous consequences for all concerned. Yikes!
I love my 1956 Chevrolet BelAir. Less than 26000 miles on the odometer. All original, from the canvas “carpet” to the radio with tubes rather than transistors. But the dashboard is painted steel, no padding. Seatbelts? Not in 1956. The steering column is solid metal. That ends in a point. Disturbing tendency to turn the driver into a shish kebab in a head-on collision. Airbags not invented yet. Whoops!
I do like to drive my BelAir… it is not a museum piece. But I drive it carefully. Cautiously. Defensively. With my kid in the backseat.
Today’s cars are loaded with airbags, mirrors, collision avoidance systems, backup cameras, beepers, buzzers, bells and whistles. New cars have airbags all over the place. Some slam on the brakes automatically. The Caddy even tightens your seatbelt before a crash. Nothing to worry about. Whew!
Your Estate Plan Is An Edsel
Most estate planning is like the Edsel. Obsolete from the get-go. Answering the wrong questions. And doing it poorly.
The Wrong Goals: Avoid Probate. Save Taxes. Get It to the Kids. These things all happen after you die. But you are not dead yet. Shouldn’t we be a little concerned with what happens before you die? Maybe taking care of you is the best way to take care of them.
How do you feel, loading your kids into the backseat of a 1975 Pinto? Taking them to school. Driving around town. Going to see grandma. Safe? Secure? Or are your eyes locked on that tiny rearview mirror. Fearfully scanning for danger?
Why Is LifePlanning™ Never Obsolete?
LifePlanning™ is not a Pinto. Or a 50’s Edsel. LifePlanning™ is focused on you. On the real concerns that affect you and your family. Incapacity. Dementia.
These dangers are real. Ignore them if you like. At your peril. That is what the Pinto folks did. With explosive results. You can take an outdated, obsolete approach. With an estate plan that has not evolved since the 1950’s. Resulting in Nursing Home Poverty. No choice for you. No legacy for the kids.
LifePlanning™ maximizes the things that are most important to you. We all have to go sometime, but why rush it? Why not remain alert? Independent? Engaged? Aware? In charge? Why shouldn’t your choices matter? Refuse to let others decide “what to do” with you! Reject dependence.
LifePlanning™ gets you the benefits you have earned, while preserving life savings. Not for the kids, but to supplement those earned benefits. Eight thousand dollars a month ($8,000/ month) for assisted living. Fifteen thousand ($15,000/month) for skilled care. Who can afford it? Medicaid is the way America pays for long-term care. Medicaid wants you broke. Medicaid is the government solution.
LifePlanning™ says OK! You earned the government solution. But since when was the government solution adequate? Why did you work? Take overtime? Save and invest? You do not have to settle. You can make your lifesavings work for you while receiving the benefits you earned.
Is A “Pinto” Plan “Good Enough” For Your Spouse And Family? For You? Why Don’t You Deserve “Cadillac” Planning? Is The “Cadillac” Plan Too Good For Your Spouse? Your Family? Why?
Thousands of middle-class families have used LifePlanning™ to get the peace of mind that comes from loading your family into the safest, most comfortable vehicle possible. Without thorough planning you will spend yourself into Nursing Home Poverty. You get what they feel like giving.
Not what you have earned. Not what you want. Not what you deserve. With a whimper, not a bang. Quieter than a flaming fireball of dramatic death, but just as devastating. To you. To your family. Are you really opposed to getting a small return on all the tax dollars you paid in?
Without LifePlanning™ , you are driving a Pinto. Do not have good answers to the questions. No one has your back. Maybe things will work out. Maybe you will get home today. Maybe. Why not be sure? Do you think security is a bad thing?
LifePlanning™ preserves your lifesavings. You never go broke. Your earnings serve you throughout your lifetime. And that means…
You stay home. Longer. You get the help you need, that your spouse needs. Clear-eyed. Relevant. Participating in your own care.
The Choice Is Yours. Does Quality Of Life Matter To You?
We Wasted 2021. See It Through in ‘22!
Last year, the number of regular folks planning their futures dropped. Significantly. Fewer people focused on planning ahead, LifePlanning™. I fear 2021 was a year of wasted opportunity for regular families. Devastating.
Get the information you want. In- person workshops and one-on-one meetings. Recorded and live-streaming webinars. Like you, we have never stopped serving. As you seek out new ways to accomplish your life’s work, we are on the same journey. By your side. Making the rules work for the people who play by the rules.
Sixty minutes to personal control. Now and as long as you wish. Because you earned it. Avoid Nursing Home Poverty. Thousands of middle-class families have learned and use these techniques. Why not yours?
Got Questions? Get Answers!
Get Answers Now… The Call That Changes Your Life…
(800) 317-2812
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To Your Particular Questions Whatever It Takes To Serve!
Are You Against Peace of Mind?
What Is A Will? Probate – Who Cares?
What Is A Trust? Why Do Trusts Routinely Fail?
Why Don’t They Ever Talk About The Real Problem?
Why Are They Misleading You?
Is Now A Bad Time?
American Middle-Class Values Are Universal
The Future Is Middle Class
Sometimes do you feel surrounded by gloomy complainers who think you should be as anxious and angry as they are? At Christmastime, they complain about everything: gift-giving is bad, Christmas dinner is sinfully extravagant, family time is traumatic. Sad. Proof positive that misery loves company.
Gloomy Gus and Miserable Mary take especial twisted delight in accusing you of all manner of wretched, greedy, evil behavior. Your joy in simple pleasures both infuriates and depresses them. They have “issues.” Every glass is half-empty. All emotions are tainted. Lurking beneath each good deed is a selfish and unworthy motive. The pinnacle of their dismal happiness is to accuse America of unique and awful sin. COVID responses have only deepened their malaise.
What rubbish! Just as your (vaccinated!) immune system rapidly isolates and destroys deadly viruses and bacteria, we need to inoculate ourselves against this deeply stupid and self-destructive whining. Childish and immature? Yes. Infantile and unserious? Definitely. That does not mean we can ignore this injurious infection. Sunshine is the best disinfectant!
Is everything bad and getting worse? Are you an awful person? It is easy to observe that throughout human history, humans have wanted the same things. Why do they ridicule the notion that we are all the same underneath?
You spent a lifetime working and saving. You paid your bills. You raised your kids. You showed up. Nose to the grindstone. Happy warrior. Fighting the good fight.
Lucky for you, you are an American. Being an American means that your efforts count. You can get stuff. And keep it. And enjoy it. Some people like snowmobiles. Other people like Precious Moments™ figurines. Bowling balls and pool cues. Snap-on Tools™. Surf boards. Quilts. Pottery. We like our stuff. It is good to get stuff. The more stuff, the better.
Abundance. Prosperity. Wealth.
How do I know that it is good to get stuff? Look around. Everybody, in every country, around the world, is trying to get stuff. Stuff like yours. Stuff we take for granted.
It starts with sanitation. Toilets. Clean water. Pretty soon folks want electricity. And a bank account. For their savings. Then cell phones. Then McDonald’s™ hamburgers. Then a place to call their own. Then a house. And a car. Health care too. People like to live. They like to live with their stuff. It’s not just you.
Everybody’s doing it.
How do I know? Glad you asked…
Extreme Poverty Almost Gone
The world is becoming middle-class. America just got there first. Not getting blown up in WWII probably helped. Working really hard and believing the America Dream also helped. And now, according to the Bill and Melinda Gates Foundation, in the 2020 Goalkeepers Report, the world is catching up.
Worried about Extreme Poverty? It is practically a thing of the past. Look at the graph. Go to the website. All good news!
Got Personal Hygiene?
Get Running Water and Toilets…
What about safe water? Again, check out the chart. More people than ever are living healthier lives. Who knew that things were so good? The truth is that other folks want the same things you do. And, like you, they are willing to work to get those good things. Is it ridiculous to think that other people want flush toilets, clean water, and a place to wash their hands? Did you think anyone was choosing to wash in sewage?
Who Needs Banks and Banking Services The Most? Poor Folks
And what about money? Once again, trust your own eyes. Even in the poorest countries. Even the poorest people in those countries. 30% of the poorest people in the world have bank accounts. A safe place to store the fruits of their labors. Giving them a way out of poverty. Promising them a brighter future.
The job is not done. Not by a long stretch. Be of good cheer. Progress is tough to derail. Not even the COVID pandemic or some of the hysterical reactions to it have significantly slowed the train. So. Let the nattering nabobs of negativism tell you how bad everything is… Then give them a reality check. Pow! Right in the kisser. Metaphorically. Rhetorically. Confidently.
The future is middle class.
Middle class folks want to make things better for the family members they leave behind. It is a new kind of problem for most people. Including most Americans.
You Got Stuff, You Die Who Gets Your Stuff?
The Last Will and Testament
Funny thing about stuff. It lasts longer than you do. What happens then? The answer to that question is the beginning of estate planning. For a very long time, only the pashas, potentates and princes had anything worth having. But that began to change. Slowly at first, but eventually lots of folks had stuff that was still around after they were gone and still useful.
Who gets it? That was a big problem. The answer was a new kind of court, the probate court. A special place where all this could be settled out.
Along with getting stuff for themselves, folks wanted to give the next generation a leg up. They wanted to say who would get the left-overs. And that’s where wills come in.
Your Last Will and Testament is simply instructions to the probate court. That is it. Your Will only works if it goes through probate. Lots of people will tell you, “I don’t have to worry about probate, I have a Will!” And now you know better.
How much does it cost to probate your leftover stuff? A frequently cited number, attributed to AARP, is 4-10% of the value of the estate. That seems about right to me.
Why so expensive? Because you left a big mess. While you are alive, your name is on your stuff. You are large and in charge. It is as if you were carrying items around in a store. In your arms. As long as you are steady on your feet… no problem. But if you slip and fall… Whoops! There goes all the stuff you were carrying. And now you have made a big mess. You were in complete control of your stuff. Now nobody is in control. Stuff goes flying. Good luck sorting it out. Nice easy job, cleaning up the mess.
But cleaning up the mess is exactly what the probate court does. The probate court is a janitor. Your will is simply a note found in the mess. Let’s hope the janitor finds the note. And reads it. And follows it. And is not distracted by everything else going on…
Probate is not a curse inflicted on innocent people by a vengeful deity. Probate is the necessary and unavoidable consequence of the rise of the middle class. Together with a failure to plan ahead.
You Got Stuff, You Die Who Gets Your Stuff? The Trust
Is it ridiculous to think that most people would rather not lose 4-10% of their leftover life savings? Are you opposed to keeping what you have earned? Maybe then avoiding probate would be a good idea. Are you against finding better ways to get the job done? I didn’t think so…
That’s where the trust comes in. Trusts hold your stuff, like a shopping cart at the store. You are in control.
Put things in. Take things out. Re-arrange. It is all up to you. The key is that when you “slip and fall”, your possessions are in the cart. Sure, you went flying. Call the EMTs! But your stuff remains in the shopping cart/ trust. No fuss. No muss. Nothing for the janitor to do. Your successor trustee steps up and divvies up the stuff to your deserving and grateful family members. What could be easier? Are you surprised that trusts are so popular?
The Huge Dirty Secret of Trust-Based Planning
Is it ridiculous to think that a highly profitable industry based on cleaning up messes might want to go on cleaning up those messes? Can continue collecting those fees? If you were collecting 4-10% of folks’ leftover lifesavings, would you be in a rush to cut off that gravy train? Is it bad to wonder why 90+% of trusts fail? Is it cynical and ill-natured to wonder whether the astonishing failure rate of trusts has anything to do with probate industry profits?
Why do trusts fail harder than the Wizard of Oz? The simple reason, which is well-known to your banker, insurance agent, financial advisor, attorney, and anyone else with the slightest familiarity, is that hardly anything gets into the shopping cart.
You paid for a bright and shiny new trust/shopping cart. And that is what you received. It is beautiful! Leather binder. Lots of pages. Wow! And it is empty. And you are still carrying all those items around in your arms. So when you slip and fall… oopsie! All your stuff STILL goes flying, STILL makes a huge mess, STILL requires probate.
How Do They Get Away With Such Piracy?!
How does the probate industry get away with it? Simple. In that fancy binder of yours, there is a memorandum/ letter/instruction booklet/ brochure. In that document, the responsibility of getting your stuff into your trust is placed squarely on your shoulders.
Did you know that? Would it be a waste of your time to, right now, dig into that fancy binder and find that memo? It is in there, I promise.
The memo is how the probate industry turns your kids’ righteous indignation at having to pay for probate into sheepish surrender. It was Mom and Dad’s fault! They did not follow the instructions! Aww gee! Heh heh… betcha ya didn’t see that coming!
What if there was a law firm that did the hard work of tracking down your assets with you and getting them into the trust. Would you be surprised if the process took longer? Would it be a shock that it cost more? Would you be against getting what you paid for?
Would you be surprised to learn that there is no free lunch?
American Middle-Class Values
Are The Wave Of The Future
Do you reject the idea that a rising tide lifts all boats? Is it too farfetched to think that today’s “rising tide” are the peaceful virtues of the middle-class lifestyle? Rapidly spreading across the globe. Raising hundreds of millions, billions of our sisters and brothers out of poverty. On to the path for a better life.
Our better future has its enemies. Craven, miserable, alive only with jealousy and envy. You extend the helping hand of friendship; they see only the claw of exploitation. You offer to help build, construct, improve, they seek only to tear down, demolish, devastate.
You are winning. Ever more desperate, they are losing.
Peace of mind and security are waiting for everyone who embraces productive work. While you are here. And after you are gone. Waiting for you. You have a choice. Despite what “everybody else” says.
Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.
No Poverty. No Charity. No Waste. It is not chance. It is choice. Your choice.
Get Information Now. 800-317-2812
Your Estate Plan Is Doomed | Why Your Trust Will Fail | What Everybody Knows And No One Will Tell You
Why People Do Estate Planning
Nobody likes estate planning. Estate planning is like castor oil when you were a kid. You had to take it. It was supposed to be good for you. Not sure how or why. But it was unpleasant.
Like insurance, but worse. With insurance, you must have coverage. Just in case. Same with estate planning. You do not want to, you are not sure why you have to, but you must.
If you are like most folks, you do the estate planning because:
1. You have stuff now. House, money, investments.
2. You know you will die. At some point.
3. You think you will have some leftover stuff when you die.
4. You like some people. Spouse. Kids. Friends. Charities.
5. You do not want the government to get your stuff.
6. You want the people you like to get your stuff. Because why not?
Has anyone told you that you are likely to die without stuff? Without leftovers. Has anyone told you that long-term care will drain you dry? If there are no leftovers, why bother? Now you know. Consider yourself told.
Death Is Not The Problem
Some folks believe we will all pass over the Great Divide to the Other Side. Glorious! Other folks hold that sooner or later the organic metabolism that makes up your consciousness will cease and that will be that. Food for worms and nothing more. There are many variations on this basic theme.
Death is not your main problem. Those who survive you will figure out what to do with your remains. And whatever is left of your stuff. This can be done well or poorly. Mostly poorly.
Great families make great plans. Truth to tell, it is not that hard to do it right. But you are not going to see it anyway. Not really your primary problem.
Life Is The Problem
In the Army, I often heard (and often repeated) that, “There are no problems, just opportunities to excel!” Your life is your opportunity. And middle-class folks like you tend to make the most of the gift. That is great. You are independent. You did the work. You get to make choices. Until you cannot.
If you are like most people, you think that tomorrow will be like today. Pretty much. You handled things today. You will handle things tomorrow. And the next day. And the next. But that is not accurate. For most of us, at some point, we will not be able to carry on as we have. That is the castor-oil reality. And most estate planning has nothing, zero, zip, zilch to help you deal with this new, inevitable situation.
LifePlanning™ Is The Solution
LifePlanning™ is focused on you here and now. How do you maintain your independence? How can you stay in control and in charge for as long as humanly possible? Your freedom is what planning should be all about.
The Secret Truth: LifePlanning™ Is Like Hearing Aids
Why do folks buy hearing aids? Did you know that the #1 reason has nothing to do with chirping birds or adjusting the TV volume? The real reason is something no one will admit. It is kind of embarrassing. That is how you know it is true. Folks buy hearing aids because if you cannot hear, your kids will believe that you cannot think. And that is the first step to the kids “helping” you to give up your freedom. The first step to “we can’t trust mom and dad with the kids.”
The real reason for LifePlanning™ is to keep your edge. You do not need lectures. You do not need to hear how nice it is to live at Shady Acres. You do not need another Shady Acres brochure. You want to keep your home. And live there. And you might need some help with that. LifePlanning™ is how to get the help to keep your independence.
Your Trust Will Fail
You went the extra mile. Spent the extra dollars. Got the big binder. Got a trust. Everything is all good now, right? Not so fast.
Everybody knows that trusts fail. Almost all the time. Your financial advisor, insurance agent, banker, accountant. They all know that you will not re-title your assets to the trust. Sure, you will get some stuff in there. Maybe. Most folks have very little in the trust. One survey says 96% of trusts do not avoid probate.
The Institute for Continuing Legal Education gives out certificates to attorneys who want to practice estate planning. Including trust planning. Lawyers who want to be certified must take a whole raft of courses to get that piece of paper. When asked recently about the problem of trusts that do not avoid probate, the instructor was clear. “That is what the pour over will is for. No problem.”
Think about this. The instructor is a highly qualified and experienced estate planning attorney. Partner in a huge, prestigious multi-state law firm. This person is teaching would-be estate planning attorneys that going through probate is no big deal. Did you think that the whole point of the trust was to avoid probate? Whoops. Besides, probate is not that bad… they say…
Your LifePlan™ Will Not Fail
LifePlanning™ means your funding coach works with you to get the job done. To help make sure that your assets are safely in the appropriate trust. It is not easy. It takes time. Two months on average. But there are no shortcuts. No easy way out. And everyone knows it.
LifePlanning™ Is The Solution
LifePlanning™ is the way you keep your stuff. And at the same time, qualify for the government benefits you have earned. Focused on you here and now. By acting early, rather than waiting until the last minute, you will qualify for benefits that may mean you never need residential long-term care. Let’s face it, who can afford the $9000-$12,000 to $15,000 per month costs of skilled nursing? Even a little at home care is ruinously expensive at $30 – $50 per hour.
LifePlanning™ gets you what you have earned. Assistance to stay at home. Health care that keeps you healthy, active, engaged with your grandkids. Free to be your best self.
LifePlanning™ Prevents Tragedy
Nothing is more tragic than one spouse dying while caring for the other. The other spouse now faces institutional care. Which their spouse sacrificed everything to avoid. And that is what happens 40-50% of the time. LifePlanning™ supports the caregiver as well as the disabled spouse. Getting necessary benefits. Staying home. Maximizing potential. Living life to the full.
I Don’t Want Government Help!
Middle-class folks are independent do-it-yourself types. Government hand-out? Perish the thought! Understandable. But.
Government demands taxes. You pay taxes. You never thought you would see any of that money again, right? No return on that investment. This is a return on that investment. Unusual times.
That is the LifePlan™ approach to estate planning and elder law. You paid in, why shouldn’t you be paid back? If you need it. When you need it? Learn more. You can do this.
Secure Your Independence Today… Get Started
COVID flaring up again. Isolation for holidays. Merry Christmas? What are we waiting for? Isn’t today is the best time to plan? Begin by calling the LifePlan™ Hotline: 800-317-2812.
Get Information You Need: Your Life, You Choose!
COVID has not gone away. New challenges arise daily. The risks to your freedom to choose, to your ability to keep what you have earned and built have not gone away. And neither have we. It is your stuff… protect it. And yourself. With complete control. LifePlanning™ means your choices matter, whatever life brings.
How can LifePlanning™ protect your middle-class life savings? How to get this information?
Are you like thousands of Michigan families who played by the rules and earned homes, cottages, farms, lifesavings? Would you like the rules to work for you, for a change? Why wait until it is too late?
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