Name Inheritors in Your Living Trust

Digital assets defined:  “Digital assets” means any type of valued material that you can only access electronically with a username and password.  The phrase does not refer to real-world monetary assets, such as bank and stock accounts, or credit card and other debts, even if you can use a username and password to view balances, make payments, or transfer funds. It only refers to purely electronic information, data, and possessions.   

Do not list in will:  It is not a good idea to provide any detailed information about your digital assets in a will.  Because a will ends up being filed in probate court and is accessible by the public, adding detailed info could create a risk of identity theft.

Use living trust and separate access lists:  The ideal alternative is to use a living trust and separate access lists that are referenced in the trust.  In the living trust document, list the categories of your digital assets — such as computer or tablet program accounts, electronic book accounts, game accounts, email accounts, photo accounts, social networking accounts — along with the name of the person or persons you want to inherit the assets in each category.  If you want the inheritor to do something specific with an account, such as provide other persons with copies of photos, or save copies of your blog postings for children or grandchildren, explain your wishes in your living trust.  Make a separate access list for financial accounts. 

Keep an Updated Access List of Digital Asset Accounts, Usernames and Passwords

Keep digital asset access list:  Keep a separate “digital asset access list” of your digital accounts with usernames and passwords, and update it as often as you need to.  This list should also include any username and password needed to access your desktop computer, laptop, and cell phone.  You should give a copy of the current digital asset access list, with the current date prominent at the top, to your San Diego Law Firm attorney to place in his or her file with your living trust.  You should also keep a copy of the updated list in your safety deposit box and at your home in a fireproof safe or lockbox to which your spouse or domestic partner also has a key. 

No notification of death:  Many accounts, such as Gmail and Facebook, prohibit access by any person other than the one who set up the account, and make no provisions for inheritors to access accounts after death.  For this reason, it is advisable to add a specific instruction to your living trust and to your digital asset access list that no digital asset account providers are to be notified of your death, and that instead you want all digital assets and information contained in the accounts to be accessed and, depending on the account, either the account contact information changed to that of the inheritor, or if that is not possible, the assets transferred to the inheritor or the information saved and given to the inheritor, and the account closed.  Otherwise, the inheritors can face an expensive battle in probate court to gain access to these accounts.

Financial Account Usernames and Passwords Must be Handled Separately 

Not digital assets:  Monetary assets in bank and brokerage accounts, credit accounts like charge cards, payment processing methods like PayPal, and customer accounts at online stores like Amazon are not digital assets.  Usernames and passwords for these accounts simply provide an additional way to access funds and charges information, process charges, and buy goods and services. 

Keep separate financial access list:  Usernames and passwords for financial assets, credit, payment processing, and store accounts should be kept on a separate dated financial access list in your will and trust file at your attorney’s office.  A copy of this list can also be placed in your safety deposit box and at your home in a fireproof box to which your spouse or domestic partner also has a key.  Because all assets and debts become part of your estate when you die and must be tracked for purposes of estate tax and income tax returns, bank and brokerage accounts must be handled as required by law through probate or living trust administration, and any credit card charges must be paid before any assets can be distributed from your estate.  

Immediately change email account:  It is a good idea to instruct your executor / administrator to immediately set up a new paid email account at a site like usa.net for the sole purpose of continuing to receive your financial account notices, including notices for payment processing and merchant accounts like PayPal and Authorize.net.  The executor should be asked to change the email address on all financial accounts to the new address immediately, to prevent anyone from fraudulently accessing your financial accounts once you are gone.

Customer purchasing accounts:  Your customer accounts at stores that do not contain any digital assets (such as electronic books) will need to be closed or transferred into the sole name of your spouse or domestic partner.  Accounts with digital assets in them should be handled as explained below.

Name a Digital Assets Executor/ Administrator

Name digital executor:  If the person whom you have named to act as your executor or estate administrator is not technically savvy, you should also name a trusted person who meets that criterion to act as your digital assets executor or administrator.  If the estate executor or administrator requires, this person can assist them in changing the email addresses for financial accounts to the new email address; otherwise, this should not be part of the digital assets executor/administrator’s tasks.

Transfer assets to inheritors:  The digital executor should be instructed to get the access list of digital assets (but not the one of financial accounts) from your attorney and to transfer the digital assets to the inheritors you have named.

Electronic books:  Electronic books that have been purchased for a tablet, such as electronic books for Amazon’s Kindle, Barnes and Noble’s Nook, or for the iPad, generally cannot be inherited, returned, or sold.  Instead, the executor should remove the credit card or banking account information on file with each such vendor, change the account owner’s name, street address and email address for that book vendor to those of the inheritor of the device, and change the username (if possible) and password.  Any steps beyond that should be left up to the inheritor.  It is not necessary for your estate to become involved in a dispute with an heir who wants to continue using your reading device with its books intact.  If you have multiple devices tied to the same book vendor account, though, you should name a single inheritor for that book vendor.  Otherwise, one inheritor will get a device with books with the new account username and password tied to their own personal account information, and any others will get only their device with no books.

Computer programs:  Computer programs that have been licensed and installed on a phone, tablet or computer generally cannot be removed from that device and reinstalled elsewhere. The same is true with stock photos or illustrations that have been licensed from a vendor like istockphoto.com.  For accounts with vendors of these items, your executor should again remove credit card or bank account information, change the account owner’s name (if possible), street address and email address to that of the inheritor, and change the username (if possible) and password.  Then the tablet or computer can be given to the inheritor with the new username and password and a notation as to their email account associated with that vendor (as some inheritors may have more than one email account).

Games:  Games purchased for some gaming devices like GameBoy can be sold or inherited.  Likewise, some online game assets, such as those acquired for EverQuest, can be sold or traded; others, like livestock illustrations on Farmville, cannot presently be transferred.  The information for these accounts should again be changed as per the book instructions, above. However, some game accounts, such as those at Farmville, as of this writing are tied to social networking accounts such as Facebook which the digital executor will close.  If so, the digital executor should arrange for the sale to a third party, or transfer to the inheritor, of any transferrable game assets, and after notice to the inheritor, close those game accounts.  The non-transferrable game assets will be unavoidably lost.

Nonsalable creative material:  For accounts to which you have uploaded your non-salable creative material, such as blog posts, photos, illustrations, or coding suggestions, your digital executor can download the material to a computer and copy (burn) the information files to a DVD or flash drive.  Once the inheritors have confirmed that they have received their DVD or flash drive and can open it and access or view the digital assets, the accounts should be closed. 

Salable digital assets:  If you have created a salable and valuable asset, such as a popular blog, website, or short computer program for websites, or own the license to a valuable unused domain name, you should provide separate instructions for selling this item and returning the sales price received, along with proof of the payment amount, to the office of your probate attorney or living trust attorney at San Diego Law Firm, and to your estate executor / administrator.

Avoid Relying on Online Digital Asset Tracking Services

There are nearly a dozen websites at this writing that offer to let you set up and store all of your usernames and passwords along with various other information you might want your inheritors to have.  All of these websites have the same problem:  there is no way to ensure that their operators will still be in business when you die.  There is also no way to ensure that the data you save on them will be completely hacker-proof.  For this reason, San Diego Law Firm does not recommend relying on online asset tracking services.

Call San Diego Law Firm for Living Trusts that Protect Your Digital Assets

San Diego Law Firm is a paperless law firm that keeps all files in an electronic format with continuous off-site backup.  We are comfortable and familiar with handling, accessing, and safeguarding all types of digital assets, and our experienced will, living trust, and probate attorneys can easily tailor your living trust to protect your digital assets from loss after you die to the full extent possible. We will provide fixed-fee estimates for any of our will, living trust, probate, and living trust administration services once we know what your situation requires, and we offer evening hours so you can see us without taking time off from work.  Please call us for an appointment at (619) 794-0243.  We look forward to helping you.

1.  Direct Deposit and Automatic Deductions

An elderly person who is receiving social security and/or a government or military pension can have the checks directly deposited to his or her bank. This will help prevent checks from being stolen, misplaced or destroyed. Monthly bills, such as those for utilities and a mortgage, can be automatically paid from the same account. An elderly person who is ill or has limited mobility may also wish to set up a joint account to give a highly trustworthy family member access to some of the elderly person’s funds, so the family member can purchase services and items for the elder. 

2.  Bill Paying Service

A daily money manager or an accounting service can pay monthly bills that cannot be set up for automatic payment.  Bills such as those for cleaning and gardening, and even bills for occasional expenses such as plumbing repair or window washing, can be paid by the bill paying service.  A bill paying service is typically used when family members live some distance away or work long hours.  The service is typically given a separate checking account for this purpose, and the account is then monitored online by a family member.    

3.  Representative Payee for Government Benefits

The Veterans Administration and Social Security Administration can name another person to be a representative payee to receive funds for the elderly person, after investigating whether this would be in the best interests of the elder. The representative payee (also called a substitute payee) is then responsible for helping the elder manage their funds.  Some public and private pension plans also allow for a representative payee.

4.  Durable General Power Of Attorney for Financial Management

If the elderly person is not mentally incapacitated, he or she can sign a durable power of attorney for financial management.  This document gives a named person, the agent, the power to make financial decisions on behalf of the elderly person if and when the elderly person becomes incapacitated or incompetent.  This type of document should only be given to highly trustworthy persons, as untrustworthy agents have been known to steal the funds of the elderly person once they are in possession of a power of attorney for financial management.

5.  Revocable Living Trust

If the elderly person is not mentally incapacitated, he or she can also execute a revocable living trust prepared by an attorney.  This allows someone named in the document to carefully manage the elder’s assets, which are put into the name of the trust, only if and when the elder becomes mentally or physically incapacitated.  Trust assets commonly include valuable property and financial assets, such as a home, mutual funds, and other investments.

Call San Diego Law Firm for Legal Alternatives to Conservatorship

San Diego Law Firm’s experienced California trust and conservatorship attorneys can help you select the best means to protect the finances of an elderly family member who is no longer able to manage their finances without assistance.  We prepare each document to fit your family’s exact situation, and we can update any documents you already have.  We provide flat-fee estimates for all of the services explained above once we know what your situation requires.  Please call us for an appointment at (619) 794-0243.  We look forward to helping you.

 1.  Calculate the value of the assets

In calculating the value of the deceased’s assets and real estate, all items are included except:

•  Vehicles, trailers, mobile homes, manufactured homes, commercial coaches, truck campers, floating homes, and vessels without documents;

•  Unpaid salary of any amount owing for services in the armed forces, and up to $5,000 owing for services from other employment;

•  Joint tenancy property, life estates, and property passing outright to a surviving spouse;

•  Multiple-party accounts that pass on death directly to another party on the account; accounts that were payable-on-death to another person; and all real estate or other assets held in a living trust.

Real estate that does not fall into one of these categories must be appraised by a probate referee, and this appraisal must be used to calculate the property’s value. 

2.  Prepare an affidavit

The next step for the inheritor is to prepare, or have an attorney prepare, a notarized affidavit – a written statement under oath – that they are entitled to the property of the deceased.  The affidavit must include various other statements that the law requires, including a truthful statement that no other person has a right to the deceased’s interest in the described property.

Numerous items must be attached to the affidavit.  These include:

•  A certified copy of the death certificate; :

•  Evidence that the decedent owned the property (e.g., stock certificate, bank passbook, storage receipt)

•  Reasonable proof of the identity of the persons signing the affidavit (e.g., notarized affidavit, driver’s license)

•  An inventory and appraisal of all real estate, if any, owned by the decedent in California

The affidavit must be presented to banks, brokerage firms, and other businesses or individuals holding the deceased’s assets in order to take possession of those assets.

3.  Change title to assets

If the deceased had assets with a formal title, such as real estate or a motor vehicle, the title must be changed into the inheritor’s name. Otherwise, the inheritor will not be able to sell or refinance these items. 

To transfer real estate, an affidavit must be filed within six months after the death with the Superior Court in the county where the deceased lived.  If the deceased was not a California resident, the affidavit may be filed in the county where the property is located. No hearing is set after this filing.

Call San Diego Law Firm for Help with a Small Estate

One of the great advantages of the small estates procedure is that attorneys’ fees are not set by law and are very reasonable. Although transferring a small estate is something you can handle yourself if you have time to fully research the law, it is generally not a good idea.  The terms are technical and the legal requirements must be followed to the letter, whether you fully understand them or not. It is very is easy to make mistakes and to overlook things that must be done, such as giving notice to creditors and filing a final income tax return for the deceased with payment of any taxes due from the deceased’s assets before they are distributed.

San Diego Law Firm has years of experience in handling all types of inheritance procedures.  When it comes to a small estate, our San Diego probate attorneys can make sure that every “i” is dotted and every “t” is crossed so that you can avoid probate and legally take title to assets and property you have inherited without worrying about later being held responsible for claims against them.

Our small estate fees are reasonable, and we provide considerate, caring customer service at all times.  We offer evening appointments so that you do not need to miss work.  Please call San Diego Law Firm at (619) 794-0243 to schedule a consultation. We look forward to helping you.

1.  A will.  This document says who will inherit your property and possessions, and who will be your minor children’s guardian if you and their other parent have both died. It can also provide that life insurance proceeds and other assets will be transferred into a uniform trust for minors, to be used for your children’s care and education, if both parents have died.  This is the single most important legal document your family needs, and it can be short and to the point if your situation is simple. 

2.  An advance health care directive. It outlines what medical procedures you want taken if you are too ill or injured to state your wishes yourself.

3.  A health care power of attorney.  This permits your spouse / domestic partner to authorize medical treatment and receive medical updates for you if you are unconscious or too injured or ill to communicate.

4.  A Durable Financial Power of Attorney.  This allows your spouse or domestic partner to handle your finances and property if you become incapacitated. It is not appropriate for every couple, and it should never be given casually to other members of your family.

5.  A method for your spouse / domestic partner to avoid probate:

      a.  A revocable living trust  – if you own a house, brokerage accounts, and other assets, this document puts them into the name of your living trust, with you named as the trustee who has complete power to buy, sell, and transfer these assets as you wish.  Your spouse / domestic partner, another trusted person, or a bank trust department is named as the substitute trustee who can take over if you die or become incapacitated.

      b.  If you have few or no assets, you can get by with other legal mechanisms which will not help if you become incapacitated, but will help your spouse / domestic partner avoid probate if you die.  You can deed your home to a “tenancy by the entirety” of yourself and your spouse or a “joint tenancy with right of survivorship” of yourself and your domestic partner, and that person will automatically inherit all your interest if you die.  Vehicle titles can be placed in joint tenancy, and bank and brokerage accounts can either be owned jointly, or be made “payable on death” to your spouse / domestic partner or other person you choose.

6.  A letter of instruction. This provides funeral and other related instructions for your survivors.  It should also contain essential information they will need, such as the location of your key papers, your bank and brokerage account information, the name of your attorneys, and a contact list.  If you have a pet, this letter should include care instructions and your veterinarian’s name.

7.   Safe document storage:  keep signed copies of the above items at your attorney’s office and at your home in a fireproof box to which your spouse or domestic partner also has a key.  In addition to the above documents, your fireproof box should include copies of other financial and legal documents, such as a pet trust, life insurance policies, deeds, car titles, military records, birth and marriage certificates, divorce decrees, insurance policies, and real estate deeds, along with information about your bank and other accounts, retirement plan, any prepaid funeral plan, and long-term debts such as mortgages and car loans. This information is likely to be needed by your attorney and your executor, who must distribute your property and notify your creditors after you die.  

Call San Diego Law Firm for Legal Documents to Protect Your Family’s Future

Providing for your family’s future is a gift of love to those closest to you.  Making sure you and your spouse have basic legal safeguards in place can give you great peace of mind and make sure your family is fully protected if anything happens to you.  

San Diego Law Firm’s experienced will, trust, and probate attorneys can help you create a good plan to protect your family if you are no longer here. We prepare each will and trust document to fit your exact situation and your wishes, and we can readily update any documents you already have.  We can provide flat-fee estimates for all of our will and trust services once we know what your situation requires.  Please call us for an appointment at (619) 794-0243.  We look forward to helping you.

There are many specialized asset-preservation strategies, some involving a combination of trusts, partnerships, and corporations. You’ll want to plan, though, before the need arises.  If you transfer assets into a trust, a family limited partnership, or a corporation after a lawsuit is filed against you or your business, a court will likely treat the assets as though they were still in your name.

Here are three of the most common asset-preservation trusts:

1. Irrevocable life insurance trust.  In the United States, life insurance proceeds from a policy you own are counted as part of your estate for federal estate tax purposes, even if the proceeds are payable directly to your beneficiaries.  In addition, the cash value of the policy can be attached by creditors.

Both of these problems can be solved by putting your life insurance policy into an irrevocable life insurance trust.  You can fund the policy premiums with annual gifts to the trust. There will be no estate tax on the proceeds if the policy is put into the trust at least three years before you die. If the policy is put into the trust before any claims arise against you, the trust will also protect the cash value of the policy from your creditors. After you die, the trust will receive the insurance proceeds and will invest them for the benefit of the persons (usually, your spouse and children) you have named as “trust beneficiaries.”  A side benefit of this is that the policy proceeds can be held until any of the named beneficiaries, such as children or grandchildren, reach a certain age chosen in advance by you. 

2. Grantor-retained annuity trusts.  This trust is typically set up with a transfer of cash to the trust.  The cash is then invested.  As the “grantor” establishing the trust, you specify that you will receive an annuity at a specific rate – typically, around 6% – for a set number of years.  You can also specify that if you die first, your spouse will receive an annuity.  When both you and your spouse die, the remainder is then paid into trusts that will be automatically created for your children, or anyone else you specify.  Creditors cannot attach any funds other than the annuity payable to you each year.  Creditors can never attach the principal of the trust.

A variation on this trust exists where you anticipate that you may become the target of lawsuits – for instance, if you are a doctor who performs high-risk procedures.  Then the annuity can be made payable to your spouse, completely protecting it from creditors.  You can specify that if your spouse dies first, you will receive the annuity.  Although your annuity will then be available for creditors to attach, the trust principal will still be preserved.

3. Family limited partnership trust.  A family limited partnership trust usually combines business operations with asset protection and estate planning, and typically involves layering at least two entities.  First, assets are put into a family limited partnership.  These assets usually include your business, or the stock of your business.  Because creditors could foreclose on a partnership interest owned by you, the partnership is instead owned by a family trust.  In your status as trustee of the family trust, you control the trust, and therefore, the partnership, and therefore, your business.  This is a complicated but very flexible arrangement which can protect different assets from creditors, and each asset can be governed by its own terms.  It can also minimize estate tax if carefully drafted.

Asset protection is a complicated area of law, and each person’s finances, tax situation, and business must be considered on its own merits. If you would like the experienced business and estate planning attorneys at San Diego Law Firm to evaluate your particular situation for the suitability of asset-preservation strategies, please call us for an appointment at (619) 794-0243.  We look forward to helping you.

●    Disagreements over how property and assets in a living trust are distributed

●    Claims of wrongdoing in making or changing a will or living trust, such as undue influence that led to a spouse or child being disinherited

●    Claims that the trustee breached his or her legal obligations (fiduciary duties) to act in the beneficiaries’ best interest, such as by being careless or disloyal

●    Disagreements over improper trust administration of debts

●    Disputes over inheritance, including will contests

These probate, estate, or trust disputes carry the potential to permanently jeopardize family ties, but mediation offers the opportunity to reach a peaceful agreement.  It’s a given that everyone will have their differences, and mediation takes into consideration everyone’s goals to find solutions that can be mutually accepted.  Not only is probate and trust mediation a good alternative because of family concerns, but it almost always faster and less expensive than having a judge decide the issue. 

Keep in mind that the mediator is not your lawyer.  In other words, the mediator doesn’t represent you and can’t give you legal advice, which is why parties generally have their own attorneys.  Preparing for mediation is critical, and when representing you, San Diego Law Firm will always work to strengthen your legal position and your bargaining power. 

We understand the stresses you’re under, especially if you’ve recently lost a loved one, and we’re here to help with the legal challenges.  As experienced wills and trusts attorneys, we’ll work to maximize your options and give you the advice you need during mediation to make informed decisions.  We’ll also prepare or carefully review any mediated agreement and ensure it’s properly handled so it becomes a binding court judgment. Contact San Diego Law Firm’s skilled trust and probate lawyers at (619) 794-0243.

The Estate of Stoker

The Estate of Stoker case involved a rogue will that Steven A. Stoker dictated to a friend.  It purported to give his estate (his personal property and real estate) to his two children. The original will, which had left everything to Stoker’s old girlfriend, had been destroyed. A recent Wall Street Journal article reported that the California Court of Appeal upheld Stoker’s rogue will despite its various spelling errors and his failure to observe typical legal requirements, such as having a witness sign the will at the time he signed it and declared it to be his will. Ultimately, the legal issue was whether the new, handwritten (“holographic”) will was valid and authentic. The friend who wrote down the will as Stoker dictated it to her did not sign the will as a witness, but testified that she saw Stoker sign it and also watched him urinate on the old will before throwing it into the fire. This case was the first of its kind to have the courts apply the “harmless error” rule to uphold a revised, but legally defective, will.

Harmless Error Rule

The California Probate Code, section 6110, contains the “harmless error” rule.  It says that if there is no evidence of fraud or duress (pressure) on the maker, a document or writing that updates or adds to an existing will can be treated as if it had been properly prepared, even if it does not meet all the formal legal requirements.  However, it must be proven by clear and convincing evidence that, when the maker signed the will, he or she intended the document or writing to be his or her will.

Effect of the Stoker Decision

For most people, this would seem like a great decision.  From the looks of it, people can now draft a document by hand, and as long as they intend for that document to be their one and only will, it is. The problem with this line of reasoning is that the courts need to apply the harmless error doctrine in court, and hold a trial if there is any disagreement between the persons affected, before deciding whether to uphold the new will. The court will also have to decide whether there is any evidence of fraud with respect to a rogue will that updates or adds to an earlier will. In short, if you write a rogue will, it will cost your heirs – the people you are leaving your possessions and property to – a lot more time and money arguing in a trial about whether the rogue will is valid than it would have cost you to avoid this problem by having a lawyer prepare one or two proper signed and witnessed legal documents.  In the Stoker case, the man’s children only inherited after paying substantial attorneys’ fees and enduring a long delay in probating their deceased father’s estate.

Call San Diego Law Firm for an Affordable New or Updated Will 

If you are considering changing or updating your will, or are interested in having an initial will drafted, contact one of our experienced will, trust, and probate attorneys at San Diego Law Firm.  We can draft an affordable will and legally valid living trust for you, along with other helpful legal documents that will protect you and your property.  These documents can also help your children and/or other heirs avoid the time and expense of probate.  Please call us at (619) 794-0243 to schedule an appointment today.  We look forward to helping you.

Requirements for Trustee Removal

California probate law says that a trustee can be removed for reasons specified in the trust document, or by the California Superior Court acting on its own, or by a “petition” (formal legal request) filed by a person named in the trust as a “beneficiary” to inherit some or all of the trust’s personal property, money, and/or real estate.   Some of the common reasons a trustee is removed are: 

●             The trustee is not following the exact directions of the trust;

●             The trustee is insolvent (broke) or otherwise unfit to administer the trust;

●             There is more than one trustee and they are not cooperating with each other, in a way that hurts the administration of the trust;

●             The trustee doesn’t do the administration in the way the law requires, or has refused to take on the job;

●             The trustee is being overpaid, when taking into account the value of the trust assets and the trustee’s responsibilities.

Trustee Responsibilities

California probate law lists things the trustee must do when managing and administering a trust. The trustee must give all the beneficiaries an annual accounting, which is a report on the assets, debts, and amounts received and spent by the trust.  The trustee must also give the beneficiaries a report with details of the terms of the trust and a report of the trustee’s actions in administering the trust.  The trustee must act prudently when investing living trust funds; they cannot be put into risky investments.

Often, a beneficiary decides to remove a trustee because the trustee is either not doing what the living trust document requires, or is not providing complete information to the beneficiary about the trust property, how trust property was invested, and/or how much and when the trustee was paid by the trust.  If the trustee and beneficiary are no longer communicating well, or are not in agreement on how the trust property should be administered, the next step for the beneficiary is to seek legal advice and help from an experienced probate attorney.

Petition for Removal

If the trustee and a beneficiary cannot agree on how the trust is to be managed and administered, that beneficiary can ask the court to remove the trustee, which means order the trustee to give up all control of the trust property.  This is done by hiring an experienced probate attorney to file a court petition requesting that the trustee removed.  The petition is accompanied by a signed declaration from the beneficiary stating the facts showing the reasons why the trustee should be removed. If the court grants the petition, it will remove the trustee and appoint another person as the new trustee.

California probate law concerning trustee removal is complicated and not easy to understand. If you are a beneficiary of a trust, and are concerned that the trustee may be mismanaging trust property, our experienced will, trust, and probate attorneys can advise you on your options.  If you decide the trustee should be removed, we can handle all the court paperwork and hearings.  Please contact San Diego Law Firm today at (619) 794-0243 to schedule an appointment.  We look forward to helping you.

Medi-Cal considers its payments to be a loan, and if no Medi-Cal planning is done, Medi-Cal will seek to recover its payments from any assets that remain after the death of both the ill person and their spouse.Medi-Cal planning involves a series of careful legal steps to help an ill person qualify for Medi-Cal while keeping as many assets as possible for the use of the ill person, their spouse, and any dependent children. The planning also focuses on a process to transfer assets to the children before the death of the ill person and their spouse, so as to protect those assets from later Medi-Cal reimbursement claims.

If you think it is likely that you, your spouse, or your parent will need nursing home care within the next few years, now is a good time to begin Medi-Cal planning; the sooner planning begins, the greater the protection that can be obtained.

San Diego Law Firm has years of experience handling Medi-Cal planning  and can help you with each step of the process.  We can prepare all necessary legal documents, help you qualify for Medi-Cal while protecting your assets, arrange for transfer of title to assets, protect you as much as possible from income, gift, and property tax consequences of Medi-Cal asset transfers, and develop a strategy that ensures your stability in the present and protects your family’s future inheritance.  If you are considering nursing home care for yourself or a family member and would like to qualify for Medi-Cal payments for that care, or if you are already struggling with a Medi-Cal application, please call San Diego Law Firm today at (619) 794-0243 to schedule an appointment.  We can help you.

The reality is that most people underestimate the cost of long-term care, or assume their family members will be able to handle their needs.  The cost of a nursing home can easily exceed $100,000 per year.  Medicare only covers 100 days of care, while Medicaid only covers care if the person has few assets.  The enormous costs of nursing homes can quickly drain a person and/or their family’s life savings.

Medi-Cal planning offers a solution to the difficulties of paying for long-term care.  If a person qualifies for Medi-Cal, the program will pay for them to be in a nursing home as long as the person’s health requires skilled nursing home care.  In order to qualify for Medi-Cal, the person’s liquid assets must be below a certain limit. 

San Diego Law Firm’s attorneys are experienced in Medi-Cal planning and can assist you or a family member in qualifying for Medi-Cal by helping you convert your liquid assets into exempt assets.  Exempt assets are not counted in determining your Medi-Cal eligibility.  By using your liquid assets to pay off loans and bills, pay for necessary expenses, or purchase an annuity that complies with Medi-Cal restrictions, you can save yourself and your family hundreds of thousands of dollars. 

It’s important to note that Medi-Cal considers the money it pays to nursing homes to be loans.  After a person dies, Medi-Cal will attempt to recoup the money from the person’s estate.  However, there are precise legal steps that can be taken while the person is alive to protect their assets.  If this is done, the assets can pass to the family members and be exempt from Medi-Cal collection.

Medi-Cal law is complicated and constantly evolving with new legislation and health care reform affecting many aspects.  It’s critical to use an attorney who understands the details and specific requirements of the law in order to get the benefits Medi-Cal planning can offer.  Planning for long-term nursing care for yourself or a loved one not only saves money, it also provides peace of mind that is priceless.  If you would like to know more, or to find out if Medi-Cal planning is right for you or someone in your family, please contact one of San Diego Law Firm’s skilled Medi-Cal planning attorneys by calling 619-791-0243 to set up an appointment.