Estate and Long Term Care Planning Michael B. Cohen Michael B. Cohen & Associates 12201 Merit Drive, Ste. 230 Dallas, Texas 75251 214-720-0102 www.dallaselderlawyer.com

What do you want to know?

Estate Planning Essentials Why do we do it? The family. What can be done? The rules. How do we do it? The secrets.

Definition of Estate Planning I want to control my property while I’m alive and well; and Plan for me and my loved ones if I become disabled.

Definition of Estate Planning Give what I have To whom I want, When I want, The way I want; and When I die, I want my assets to go to the people I love, without any delay.

Do I need… A will? A trust?

The Law You Need To Know! WILL RLT Ownership @Death Spouse/Beneficiary Joint Beneficiary IRA/401K LIFE INSURANCE ANNUITY PROBATE COURT TO FAMILY POD TOD ITF INDIVIDUALLY WILL TO THOSE YOU CHOOSE WHEN YOU WANT THE WAY YOU WANT IN TRUST RLT

Will Individually Owned Assets = Will = Probate

What is probate?

What is a trust? Two types of trusts: -Revocable -Irrevocable Testamentary Trusts Living Trusts -Revocable -Irrevocable

DIFFERENT TYPES OF TRUSTS IRR TYPICAL TRUST RLT MIT ALL Control ALL Income ALL Principal ALL Control ALL Income NO Principal (?) NO Control NO Income NO Principal

Keys to an effective estate plan Control of process What to do How to do it Personal instructions Proper asset ownership

TLC Estate planning strategy Personal planning goals Catastrophic illness protection Remarriage protection Creditor protection Divorce protection Values promotion

Federal Estate Tax Reduction Trustee instructions: Transfer up to the exemption equivalent to Family Trust, put any excess in Marital Trust Marital Family 1st $11,180,000 Excess Survivor may be Trustee and Beneficiary of both trusts.

Retirement Plan Overview Excise tax planning “Too soon” Premature distributions penalty 10% excise tax “Too little” Minimum distribution penalty 50% excise tax

Protecting Your Family * Providing for Your Needs Medicaid Eligibility Protecting Your Family * Providing for Your Needs

Medicaid Myths They can take your home. You have to give your assets away to protect them. If you give assets away you have to wait 60 months to qualify.

Medicaid Eligibility Income Limit: $2,250/month for single person Asset Limit: $123,600 (PLUS!) for well spouse Exemptions, exceptions, expansion

Medicaid Eligibility Exemptions: Home (must have intent to return home for singles) Car Personal effects Pre-paid funeral Pre-paid burial (up to $1,500)

Medicaid Eligibility Crucial Dates: Look Back Date: In nursing home AND apply Look Back Period: 60 months

Medicaid Eligibility Calculating the spend down Gifts Transfers IRS gifts vs. Medicaid gifts Transfers Compensated or uncompensated? Calculating the penalty period Monthly nursing home cost $5,179.50 (TX)

Medicaid Eligibility Long-Term Care Insurance Benefit or burden? 3 years or less Home care Investment? Guarantees results

Medicaid Eligibility Life Insurance Leverage estate money Shortens penalty period Wealth replacement or enhancement

Estate Planning Essentials Wrap-Up Why do we do it? The family. What can be done? The rules. How do we do it? The secrets.

Estate Planning Essentials Michael B. Cohen Michael B. Cohen & Associates 12201 Merit Drive, Ste. 230 Dallas, Texas 75251 214-720-0102 www.dallaselderlawyer.com