Estate Planning and Elder Law

A mortgage is a legal document that creates a lien on a property as security for a loan. It is not a type of estate planning document.

A living trust is a legal document that transfers assets to a trustee, who holds and manages them for the benefit of the beneficiaries. Living trusts can be used to avoid probate, provide for the management of assets during incapacity, and reduce taxes.

A will is a legal document that directs how a person's assets will be distributed after death. A trust is a legal document that transfers assets to a trustee, who holds and manages them for the benefit of the beneficiaries. Wills are revocable, while trusts are generally irrevocable. Wills distribute assets to beneficiaries outright, while trusts can provide for the management and distribution of assets over time.

The executor is the person who is appointed by the testator to administer the will. The executor is responsible for gathering the testator's assets, paying debts and taxes, and distributing the remaining assets to the beneficiaries.

A durable power of attorney is a legal document that allows someone to make financial, medical, and legal decisions on behalf of another person who is incapacitated. Durable powers of attorney are often used to provide for the care of an elderly or disabled person.

A health care proxy is a legal document that allows someone to make medical decisions on behalf of another person who is incapacitated. Health care proxies are often used to provide for the care of an elderly or disabled person.

A conservatorship is a legal proceeding in which a court appoints a person to manage the financial affairs of another person who is incapacitated. A guardianship is a legal proceeding in which a court appoints a person to make personal care decisions for another person who is incapacitated. Conservatorships are typically for adults, while guardianships are typically for minors. However, there are some exceptions to these rules.

Medicaid planning is a legal strategy that helps people qualify for Medicaid benefits, protect assets from nursing home costs, and reduce taxes. Medicaid planning can be complex, so it is important to consult with an attorney who is experienced in this area of law.

Probate assets are assets that are subject to probate, which is the legal process of administering a will and distributing the deceased person's assets. Non-probate assets are assets that are not subject to probate, such as assets that are held in a trust or that have a beneficiary designation.

The federal estate tax exemption is $12.06 million for 2023. This means that a person can pass up to $12.06 million to their heirs without paying federal estate tax.

The generation-skipping transfer tax is a tax on gifts and inheritances that skip a generation. For example, if a grandparent gives money or property to a grandchild, the transfer is subject to the generation-skipping transfer tax.

A qualified personal residence trust (QPRT) is a type of trust that allows a person to pass their home to their heirs without paying estate tax. QPRTs also provide a lifetime income stream for the person who creates the trust and protect the home from creditors.

A charitable remainder trust (CRT) is a type of trust that provides a lifetime income stream for the person who creates the trust, a tax deduction for the person who creates the trust, and a benefit to a charity.

A dynasty trust is a type of trust that is designed to pass wealth to future generations without paying estate tax. Dynasty trusts are often used by wealthy families to preserve their wealth for future generations.

An irrevocable life insurance trust (ILIT) is a type of trust that is used to remove life insurance proceeds from the taxable estate, provide a death benefit for the beneficiaries, and protect the life insurance proceeds from creditors.