How To Decide on a Long-Term Care Facility for Your Loved One

Determining whether to place a family member or loved one in a long-term care facility is extremely difficult, as is finding the right place. Unfortunately, most people are unable to offer full-time care due to their own circumstances and a long term care facility can really be the best option.

In order to find an appropriate long term care facility, you need to do your research. Pinpoint your loved ones’ needs and level of care, as well as your particular family circumstances. Some long-term care centers are focused on memory care, while others are centered on behavioral issues and assisted living. In addition to finding a home that fits the individual’s needs, you also want to take into account if you prefer them to live in the same area they do now or closer to family. Other considerations could include if pets are allowed, if special dietary needs can be accommodated, and services offered. 

The next point to consider is the cost of the facility. This can be hard if the individual does not have the ability to pay for their care. Long-term care facilities can have a monthly cost of up to $10,000 depending on what is needed.

The real deciding factor will be physically visiting various facilities and asking questions. It is important to know about the staff since they are the ones ensuring your loved one’s safety and well-being. Be aware of the overall cleanliness, if other residents seem happy, how many events are scheduled daily, and so forth. There are many aspects that can be easily overlooked but are vital when making a final decision. Questions to ask the administrator and the staff could include the ratio of staff to residents, if there is a daily routine, if there are any additional community fees, and if religious services are held at the facility.

We have expertise in all areas of estate planning and elder law. Feel free to call Tresp Law, APC today at (858) 248-2779 or email us here if you need legal advice or guidance related to this critical life decision.

Irrevocable vs Revocable Trusts: a Primer

Trusts are legal vehicles that allow a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. All trusts have three main aspects including the grantor, the beneficiary, and the trustee. The grantor is the person or entity that created the trust, the beneficiary receives or benefits from the assets held in trust, and the trustee manages the assets of the trust and distributes them to beneficiaries according to the grantor’s wishes. 

A revocable trust, often called a “living” trust, may be amended or revoked. This includes naming different beneficiaries or trustee(s) and having the option of transferring assets out of the trust. Revocable trusts are primarily used to avoid court-supervised probate proceedings after the grantor passes away. If you, the grantor, can no longer manage your finances due to incapacity or death, your trustee takes over and manages assets according to the terms of the trust, and the trust becomes irrevocable.

Beyond strictly an estate planning tool, irrevocable trusts can be a tax planning tool. Since some irrevocable trusts remove all incidents of ownership of the assets from the grantor, the transfer thereby can effectively remove the trust's assets from your taxable estate. Tax rules vary by jurisdiction, but generally the grantor can't receive those benefits if they are the trustee, which means the grantor won’t effectively have control of the assets. The assets held in the trust can include business interests, investment assets, cash, life insurance policies, cryptocurrencies, and more.

Tresp Law, APC has two locations in Southern California and a team of experienced attorneys with exceptional knowledge about estate planning, estate administration, and trust and probate litigation. Contact Tresp Law, APC today for a free consultation by calling us at 858-248-2779 or email us here.

Special Needs Trusts

A Special Needs Trust allows a person with a disability to receive essential government benefits such as Medicaid and Supplemental Security Income while also being able to benefit from assets held in the trust. There are two types of special needs trusts, a first-party trust, and a third-party trust. 

A first-party special needs trust also called a “self-settled trust,” is established by the individual with a disability who is also the trust’s beneficiary. For the assets included in a first-party trust not to count for Medicaid or Supplemental Security Income, it is required by law that the trust must be created and funded while the beneficiary is under the age of 65. The trust must also be irrevocable and provide that upon the death of the beneficiary, that Medicaid will be reimbursed. Finally, the trust must also be administered solely for the benefit of the beneficiary. Typically with a first-party social needs trust, the funding comes either from a personal injury settlement or an inheritance directly received by the beneficiary. 

A third-party special needs trust, also known as a “supplemental needs trust” is funded with assets not belonging to the beneficiary, and no assets belonging to the beneficiary can be used to fund the trust. Typically, funds come through inheritance, and proceeds of life insurance policies. A third-party special needs trust has no provision to repay Medicaid upon the termination of the trust, but instead, the person who created the trust chooses how it is distributed upon the death of the beneficiary. 

Tresp Law, APC has two locations in Southern California and a team of experienced attorneys to represent you in estate planning, administration, and trust and estate litigation. Call Tresp Law, APC today at (858) 248-2779, or click below to schedule a consultation.

What Does it Mean to be Executor of an Estate?

The Executor of an Estate is the person named in the Decedent’s will to bear the fiduciary responsibility of carrying out the wishes of the Decedent as described in their will. Typically the Executor of the estate is a family member or some other person close to the Decedent, and that family member can be left with much on their plate depending on how much planning was done prior. In order for an Executor of an Estate to be validly appointed, they need to file a Petition for Probate and be appointed by the court. 

The Executor carries out many tasks following their appointment, including paying off creditors, filing final tax returns, and issuing notices of death. Typically when one has a will, the deceased names an executor of an estate. However sometimes the person named in the will is deceased or does not want to serve, and sometimes the Decedent has no will at all. In those cases, a judge names someone to this role. Rather than being called an “Executor,” however, this person is called either an administrator or personal representative.

Executors must do what is in the Estate’s best interest. They cannot prioritize their own interests over those of the Estate. They cannot override the will, refuse to pay creditors that are legitimate or withhold the inheritance of a beneficiary. Court supervision of the probate process ensures faithful execution of the Executor’s duties and responsibilities.

An Executor may not take money from the estate or make any beneficial distributions, or pay themselves for their duties before all necessary steps have been completed in the probate administration and an order is issued by the presiding judge. Additionally, the Executor cannot sell assets of the estate for less than market value. The Executor is also not allowed to sell themselves assets for less than their worth, called self-dealing. 

There are many crucial duties when serving as the Executor of an Estate, and if not carried out properly, the individual serving in that capacity will be subject to legal repercussions. Representation by competent counsel is critical, and the payment of legal fees in the representation of an Executor comes from the Estate itself.

At Tresp Law, APC, we have expertly handled hundreds of probate administrations, expeditiously. Additionally, we are experienced litigators representing countless beneficiaries and fiduciaries in contested probate cases. Understanding the issues that lead to litigation puts us in the best position to ensure our clients avoid contests.

Call Tresp Law, APC today at (858) 248-2779, or click below to schedule a consultation.