How to Pinpoint Clients That Need Regular Estate Planning Vs. Elder Law Planning

In the practice of estate planning and elder law, the lines between standard estate planning and asset protection planning can easily blur. It is easy to place a family into the “elder law bucket” if they come in stating they have a loved one or spouse already in need of a nursing home or assisted living apartment.

The decision gets more difficult when a family comes in past retirement age but with no current health concerns. What is the best route forward?

Do you proceed with standard estate planning, focusing on continued asset growth? Or do you recommend an asset protection trust to start the five-year look-back period for future Medicaid planning?

Below are a few key conversations to have with your client to help determine the best route:

1. Do they have a plan for long-term care expenses?

It is important to know if your client is planning on moving into a care facility in the future. However, this is rarely the case, as few individuals anticipate needing a nursing home or assisted living facility. Instead, they often have other supports in place (or, unfortunately, no plan at all).

• Family Care Plan: If the client is planning on moving in with an adult child or having the child move in with them when care is needed, this can either alleviate the need for planning or be a key reason to put asset protection planning in place.

• Long-Term Care Insurance: Ask if they have purchased long-term care insurance and review their coverage details. With great coverage, they may not need to plan for these costs. However, these policies often have limits. An elder law attorney can use insurance as a tool in tandem with an asset protection trust to cover gaps.

2. What are your client's assets?

Some clients may have several millions to their name, affording them the ability to pay for their care in the future.  With nursing home care costing anywhere from $8,000.00 to over $18,000.00 a month (depending on location) you likely will have many families who need to do proactive planning.

• Property Ownership: Do they own multiple properties or acres of land? It is likely worthwhile to do asset protection planning for this property.

• Asset Type: Is most of their net worth tied up in stocks or qualified funds? Consider if it is best to recommend starting to move some of those assets into safer investments inside an asset protection trust. Alternatively, it might be best to wait and use qualified funds to pay for care and offset the tax liability.

Join us on Wednesday, February 18 at 11:00 AM CST to learn more on what to ask in a client meeting, or on a client intake form, to help sort out which families may benefit most from each type of planning.

We are honored to welcome attorney Todd Whatley, CELA, as our presenter on this topic. With over 20 years of experience in elder law and more than 15,000 client meetings under his belt, Todd has guided thousands of families through essential estate planning. From powers of attorney to complex Medicaid and asset protection strategies, Todd knows how to spot the life factors that dictate which planning techniques are best for his clients.

We hope you will join us for this educational opportunity and look forward to seeing you there!