Key Estate Planning Mistakes Seniors In Oklahoma Should Avoid

In this article, you can discover…

• Why it’s crucial to update your estate plan. 
• How to properly designate beneficiaries and avoid family stress. 
• The importance of an advanced healthcare directive. 

When Should I Update My Estate Plan, And How Will These Updates Help My Family?

As time goes on, people and their circumstances change naturally. Some individuals will take action to improve their lives by getting a better job or stepping away from drugs and alcohol or an unhelpful partner, while others may move in a different direction. As some of your loved ones grow older, you may notice people who you never dreamed would have had a problem begin to decline in their health and behave differently. Conversely, some of the younger loved ones in your family who previously needed guidance will mature and be able to handle their own affairs. 

As these life events occur, they can serve as an important reminder for us to make any needed adjustments to our estate plans. For instance, you may have an inheritance for a loved one that is being held in a trust that will be distributed in small amounts over a number of years. However, this arrangement may no longer be necessary once this individual has become an adult, finished college, and developed a stable family dynamic. In cases like these, it may be wise or even urgent to make changes to your estate plan to account for these life changes. 

Alternatively, if a loved one happens to be in an unstable relationship where they are compromised by the influence of an abusive spouse, it would be urgent to restructure your estate plan. This ensures that any money allocated for this loved one will not be delivered while they are still in a position to have their inheritance taken up by their abuser and their family. 

Unfortunately, however, it can be difficult as a parent or caretaker to accept that your children and loved ones may have serious issues that require us to change your estate plans to account for these life changes. With this in mind, it is important to remember that by failing to restructure your estate plan, you could be both wasting your money and contributing to the hardships of your loved one. 

What Are The Risks Of Failing To Plan For Long-Term Care Costs?

Statistically, we are told that a majority of us will require long-term care in our lifetimes, with costs typically accumulating to astronomical levels. Staying in a long-term care facility can easily cost hundreds of dollars per day, and this rate can be enough to destroy any financial plan when multiplied by months or years of ongoing care. 

However, the unfortunate truth is that a large number of people cannot qualify for the purchase of long-term care. For example, even though I am barely in my 60’s, I suffer from significant back issues that have reached a point where I may require long-term care. Unfortunately, I will not be able to purchase long-term care insurance, as the insurance companies will not want to sell these policies if they know that I may require certain ongoing medical attention. 

For this reason, it is crucial that I handle my estate planning in advance so that I can allocate funds for the care of my wife and children in the event that I am no longer able to actively support them myself. 

If you fail to plan for this properly, your loved ones’ finances may be completely devastated due to the exorbitant expenses associated with long-term care. While it may require significant financial planning in advance, this scenario can be addressed with proper preparation. 

Attorney Terrell Monks is a seasoned lawyer based in Edmond, OK who has helped countless clients just like you navigate the intricacies of estate planning. With well over 20 years of qualified experience, Terrell is prepared to assist you in creating a comprehensive estate plan so that you can move forward with peace of mind that your family will be taken care of.

Still have questions? Ready to get started? Contact Oklahoma Estate Attorneys today to schedule an initial consultation.

What Are The Consequences Of Not Designating Beneficiaries Correctly?

Designating beneficiaries on properties and accounts is one of the most difficult challenges that you will face when you are planning. For example, you may believe that your child is going to inherit your money no matter what if you list them as a beneficiary on your financial accounts. However, if your child predeceases, your accounts may flow back into your probate and cost your family thousands of dollars in additional costs that could have been avoided. 

For this reason, it is best not to rely solely on beneficiary designations. Instead, you should consider combining designations with legally binding trust agreements to maximize the chances that your family will receive a maximum benefit at minimum expense. 

Additionally, we find that families occasionally designate children or grandchildren as beneficiaries on an account. This can mean that when it is time for the money to reach the beneficiary, it will cause the beneficiary to have too much money to continue receiving Medicaid, education assistance, or SSI benefits. 

Sometimes, this can lead to the beneficiary having to spend all of their inheritance to replace lost Social Security benefits, giving all of those assets to the government instead of your intended family member. Planning ahead with tailored trusts can help your special needs loved ones avoid these costly losses.

How Can Having A Durable Power Of Attorney Save My Family Time, Stress, And Money?

Generally, we can avoid guardianship lawsuits if you have a durable power of attorney in place for your business affairs as well as a durable medical power of attorney. These powers can help us manage your affairs and reduce the amount of money you need to give to long-term care facilities. This will help to ensure that your family receives the maximum amount of funds when you are no longer able to take care of them. 

The costs associated with a guardianship can easily add up to thousands of dollars, and the process can take months or even years, but a durable power of attorney can help you avoid those costs. 

Additionally, if the power of attorney is drafted carefully by a qualified estate planning attorney, provisions will be included that will allow a Medicaid planner to minimize your financial losses and maximize your Medicaid benefits in the event that you become ill and require long-term care. This is a powerful tool that many attorneys and their clients are unaware of, causing it to be overlooked rather frequently.

How Can Failing To Create An Advanced Healthcare Directive Lead To Complications?

A growing number of Americans are ending up spending hundreds of dollars per day to receive long-term health care. This is due to us living longer and having medical care that can help us to stay alive, whereas, in the past, this has not always been possible. Sometimes, patients will be able to rehabilitate and return home, but other times, this will not be an option. 

If you require long-term medical care, you can greatly reduce the financial impact of your time in a facility by preparing for long-term care expenses and factoring Medicaid into your estate plan. Planning in advance will help you maximize the benefits that Medicaid will pay toward your care. This can improve your family life by reducing financial stress and mitigating the pressure on your spouse and children while you are being cared for.

Talking about issues like these can be very uncomfortable, meaning that, unfortunately, these discussions are often avoided. You would be wise to seek out a certified Medicaid planner as early as possible and keep up-to-date with your plan as time passes.

Still Have Questions? Ready To Get Started?

For more information on Common Estate Planning Errors For Seniors, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (405) 754-4166 today.

Attorney Terrell Monks is a seasoned lawyer based in Edmond, OK who has helped countless clients just like you navigate the intricacies of estate planning. With well over 20 years of qualified experience, Terrell is prepared to assist you in creating a comprehensive estate plan so that you can move forward with peace of mind that your family will be taken care of.

Still have questions? Ready to get started? Contact Oklahoma Estate Attorneys today to schedule an initial consultation.