Situation: Loving couple is not married
Problem: No legal rights to receive – no legal standing to ask for anything
Solutions:
Good: Leave money through a will
Better: Leave money in transfer-on-death, pay-on-death accounts or joint tenancy titling
Best: Leave money in a revocable trust
Situation: Couple has young children
Problem: Grandparents could fight over the children; minors can’t own cash or property
Solutions:
Best: Leave assets via revocable trust or a testamentary trust (avoids guardian ad litem appointment)
Best: Name choice of guardian in a will and standby guardian in a separate document
Situation: Couple has disabled child
Problem: If a disabled person receives money she or he could be disqualified from receiving Medicaid and/or Social Security benefits
Solutions:
Best: Leave assets via a Supplemental Needs Trust
Situation: Client has no children
Problem: Naming Agent for financial and health care decisions is not intuitive
Solutions:
Best: Identify a good Agent for Health Care Proxy and Power of Attorney
Situation: Client’s parent is aging; may have cognitive or physical impairment
Problem: May soon not be able to make financial or health care decisions
Solutions:
Best: Have Health Care Proxy, Power of Attorney, Will & account beneficiaries updated
Best: Begin Medicaid asset protection planning if suitable
Situation: Client is divorced
Problem: Former spouse is no longer an Agent or Beneficiary; goals have changed
Solutions:
Best: Have documents redrafted & account beneficiaries changed
Situation: Someone has children from a prior marriage
Problem: Potential for future dispute – both kids and second spouse want ALL the money
Solutions:
Good: Leave assets via Will
Better: Leave a “life estate” on real estate
Best: Leave assets in trust