At CLA financial services, we understand that as we live longer, we also become subject of mental illnesses that can impair our ability to make decisions for ourselves. Mental Incapacitation affects everyone as we get older. Unfortunately for many, it will get severe enough to a point that we won’t have the cognitive ability to make decisions for ourselves.
Most of us know someone suffering from Alzheimer or sever dementia and understand the problems that come with it. Many of those suffering from such illnesses have to move in with their children or into a nursing home to care for them. Unfortunately, when this happens, a guardianship has to be done in order for a judge to appoint a person to act on behalf of the affected person. Guardianship is also known as “Living Probate”. A Guardianship proceeding takes place in the same court as probate as much of the issues are the same. The judge has to evaluate the person’s mental abilities through doctor testimony and, if needed, will assign a guardian to handle the affairs of the person. Usually, a spouse or child will be appointed as the guardian. However, if no spouse or child is available, the Judge will have to decide who will serve as guardian, who may include a sibling, state employee, attorney or people who specialize in acting as guardians. The guardian, with the judge’s oversight, will then have control over all the assets, much like an executor does when someone dies with a Will or intestate. Every year, the guardian has to go before the judge to show what has happened over the year, he basically has to give an accounting over all the transactions that have occurred. If the judge believes the person has done a good job, he will reappoint the guardian for another year.
This can be a very time consuming and expensive process, even more than probating a Will. Costs for attorney and doctors add up quickly and the yearly accounting to the judge can be very stressful events for our loved ones. Many people don’t realize that guardianship can be completely avoided. For example, persons with a properly funded living trust can avoid guardianship since the trust “owns” all the assets. If you become unable to handle your own affairs, the successor trustee, a person you appoint, simply takes over management of the trust. While a living trust appears to be a complex estate planning tool, the truth is, with proper assistance, a living trust can be a valuable estate planning tool for every person. At CLA Estate Services, we help seniors understand the basics of how a trust works and how it can benefit them.
You Want to Ensure That Your Surviving Spouse or Heirs Will Have Access to Your Full Assets
Many seniors believe that joint tenancy laws and joint accounts are enough to ensure that their surviving spouse or heirs will have access to the money they need for bills and living expenses. Unfortunately, in some states, even joint accounts can be locked when an estate goes into probate.
In addition, joint accounts can have severe consequences, especially if you include your children on the accounts. There are other options to ensure an orderly transfer of your assets to your surviving spouse and heirs. At CLA Estate Services, we help you understand the pros and cons of various estate planning tools in order for you to make a more informed decision.
You Want to Ensure That Your Estate Won't be Diminished by Your Care and Expenses
The possibility of long term care or catastrophic illness is a very real one - one in three seniors will require long term care before the end of their lives. The costs of medical and long-term care can erode the value of your estate and leave your heirs with nothing but bills for your care. CLA Estate Services discusses the different alternatives available to help reduce this burden on your estate.
For more information about senior estate planning and asset financial advice, contact a CLA Estate Services to find out about the various ways that conservative planning can preserve and protect your assets.
Most of us know someone suffering from Alzheimer or sever dementia and understand the problems that come with it. Many of those suffering from such illnesses have to move in with their children or into a nursing home to care for them. Unfortunately, when this happens, a guardianship has to be done in order for a judge to appoint a person to act on behalf of the affected person. Guardianship is also known as “Living Probate”. A Guardianship proceeding takes place in the same court as probate as much of the issues are the same. The judge has to evaluate the person’s mental abilities through doctor testimony and, if needed, will assign a guardian to handle the affairs of the person. Usually, a spouse or child will be appointed as the guardian. However, if no spouse or child is available, the Judge will have to decide who will serve as guardian, who may include a sibling, state employee, attorney or people who specialize in acting as guardians. The guardian, with the judge’s oversight, will then have control over all the assets, much like an executor does when someone dies with a Will or intestate. Every year, the guardian has to go before the judge to show what has happened over the year, he basically has to give an accounting over all the transactions that have occurred. If the judge believes the person has done a good job, he will reappoint the guardian for another year.
This can be a very time consuming and expensive process, even more than probating a Will. Costs for attorney and doctors add up quickly and the yearly accounting to the judge can be very stressful events for our loved ones. Many people don’t realize that guardianship can be completely avoided. For example, persons with a properly funded living trust can avoid guardianship since the trust “owns” all the assets. If you become unable to handle your own affairs, the successor trustee, a person you appoint, simply takes over management of the trust. While a living trust appears to be a complex estate planning tool, the truth is, with proper assistance, a living trust can be a valuable estate planning tool for every person. At CLA Estate Services, we help seniors understand the basics of how a trust works and how it can benefit them.
You Want to Ensure That Your Surviving Spouse or Heirs Will Have Access to Your Full Assets
Many seniors believe that joint tenancy laws and joint accounts are enough to ensure that their surviving spouse or heirs will have access to the money they need for bills and living expenses. Unfortunately, in some states, even joint accounts can be locked when an estate goes into probate.
In addition, joint accounts can have severe consequences, especially if you include your children on the accounts. There are other options to ensure an orderly transfer of your assets to your surviving spouse and heirs. At CLA Estate Services, we help you understand the pros and cons of various estate planning tools in order for you to make a more informed decision.
You Want to Ensure That Your Estate Won't be Diminished by Your Care and Expenses
The possibility of long term care or catastrophic illness is a very real one - one in three seniors will require long term care before the end of their lives. The costs of medical and long-term care can erode the value of your estate and leave your heirs with nothing but bills for your care. CLA Estate Services discusses the different alternatives available to help reduce this burden on your estate.
For more information about senior estate planning and asset financial advice, contact a CLA Estate Services to find out about the various ways that conservative planning can preserve and protect your assets.
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