Lowcountry Elder Law & Estate Planning

When one believes his or her estate is in jeopardy because of an imminent prospect of placement in a long-term care nursing facility, improvident decisions are often made out of fear, or upon erroneous, but well intentioned advice. The costs of nursing home placement can be devastating to any estate, costing between $60,000 to $90,000 per year. So there is reason for concern,

A recent case in Ohio illustrates the dangers of gifting upon

Yes. And No. It depends on what you are trying to protect your assets from.

Does a Revocable Trust protect my estate against taxes? Not necessarily.

First, there are no South Carolina Estate taxes. Federal Estate Taxes are imposed only on larger estates (in 2009 that amount was $3,500,000. Congress will soon decide on a new level of estate taxation)(article amended 3/11/10). Estate taxes are a concern for a relative small segment of population (less than 1%) and only high net worth individuals need to engage in trust tax planning. It is unlikely that the average resident needs such "asset protection" from estate taxes. But married couples can, if they elect to do so, use specialized Living Trusts to shelter large amounts from taxes. But, A Revocable Living Trust is not

This is the most frequently asked estate planning questions I'm asked. Understandable, since so many clients in the area are from other states.

The standard answer sounds easy, but is not as simple as it seems.

The basic rule is: If a Will would be legal and valid in the state where it was signed, it is valid in SC. So, for the most part, just because you move to SC from another state you do NOT need another Will prepared.

But here's the rub...in order to know whether an out-of-state

There is no doubt that the REVOCABLE Living Trust (RLT) has wide ranging popularity in South Carolina.  The probate process can be onerous and expensive, and a REVOCABLE Living Trust is oftentimes (not ALL the time) the best way to avoid the probate process. But there is another type of trust that can provide the benefit of probate avoidance, and add an extra layer of protection to your assets- The IRREVOCABLE INCOME TRUST.

The best way to understand the IRREVOCABLE TRUST is to compare it against the REVOCABLE LIVING TRUST (RLT).

There will be another free seminar at SUN CITY (BLUFFTON), Pinckney Hall, on August 12, 2009. 10:30 a.m.

The last 2 seminars were "sold out" and I expect this one to fill up fast too.

Call 843-757-5294 to reserve a seat. 

PLEASE do not go to the the seminar without a reservation. The folks at Pinckney Hall were nice enough to open the room up and provide more chairs. But they warn that they cannot do this every time.

A frequent request from clients is “Can you please add my children to my Deed”.

MediCAID is a government program that will pay for the cost of nursing home care for those who can qualify medically and financially.  Medicare may pay for the initial part of nursing home stay, but Medicaid is a long-term payor. For single persons, the rule is rather simple. Eligibility is established when cash assets are reduced to $2,000. For married couples, the rules are different and a bit more generous, but, can be harsh nonetheless. Particularly if your spouse is in a SC nursing home.

In 49 states a healthy spouse can keep the marital home (if equity is less than $500,000), and, up to $109,560.00. The only state that deviates from this is…South Carolina. 

The Palmetto State only allows the healthy spouse to keep the marital home and $66,480.

The assets that can be kept by the healthy spouse is called the Community Spouse Resource Allowance, or “CSRA” for short. Why SC has seen fit to be so harsh, when the other 49 states are not, is not clear. It is probably saving taxpayers some money but it is also impoverishing many healthy spouses who still have a their own lifetimes to worry about how they will support themselves. The major reason for the deviation is that the other states choose to allow the CSRA to increase every year to reflect cost-of-living allowances. When the CSRA rules were established in 1988 the CSRA  amount was $66,480. Georgia, for example, allows the healthy spouse to keep the larger $109,560 amount, and has increased the CSRA amount every year since 1988 to reflect inflation’s impact on the CSRA.

Strategies are available to reduce the impact of this harsh rule and careful planning and understanding of the Medicaid rules are essential. 

Of course having updated and professionally prepared estate planning documents is important.  As important, and often overlooked, is choosing the right place to keep your signed Will located.   With Attorney- Some clients believe that keeping a Will in the drafting attorney’s office is required, or, is always the best location. This is not necessarily true. An attorney may offer to safekeep your Will but it is not required.  If the attorney does keep the original Will, a copy ought to be provided to the client. Attorneys (like clients) move, retire, and pass away unexpectedly. This can make tracking down a Will very difficult.                                                                 Read More Below

Today's Island Packet reports on a great new charitable, volunteer staffed program to help Seniors age in place.

It is called Safe Harbour program and enlists neighbors in lending a hand in completing chores around the house for older citizens that could otherwise not be completeted by the older homeowner.

Read more about it here:   www.islandpacket.com/news/local/story/839814.html

If I can obtain some contact information on the program (sponsored by the Beaufort County Coalition for Aging in Place) I will post. (if any readers know more, please email BTreacy719 at aol.com )