August 2023
A loved one with special needs may require the help of government benefits such as Supplemental Security Income and Medicaid. However, your relative could lose out on these benefits without a special needs trust. When someone with special needs receives an inheritance or a monetary gift, it can cause the individual to become ineligible to receive further benefits. Placing inheritances and gifts into a special needs trust may avoid this. A special needs trust has special language that makes it an effective and useful tool. Giving trust control to another person A special needs trust is one that the beneficiary does not control. Your special needs relative cannot be the trustee of the trust or exercise any direction over the trust, such as altering the terms of the trust or abolishing it altogether. The idea of a special needs trust is that the beneficiary does not own the assets in the trust. This helps ensure that the government does not count it in a means test which could disqualify your loved one from benefits. Limitations on trust payments It also matters how your special needs relative spends the trust money. If government benefits pay for shelter, food and medical benefits, the trust should not go toward those expenses. When you establish a trust, you can use the trust documents to direct your trustee to make payments for specific expenses. These can include dental costs, rehabilitation services or any medical treatment not covered by existing benefits. Crafting the trust with the right language helps ensure your disabled loved one can utilize all sources of financial help to their fullest and avoid a possibly disastrous loss of benefits in the future.
Writing a will is one of the most basic components of an estate plan. However, according to a survey by Caring.com, a senior living referral service, nearly two-thirds of U.S. adults do not have a will. What happens to your estate if you die in Washington state without a will? Intestate succession rules If you die without a will in Washington state, the intestate succession rules determine who inherits your estate. Who gets what part of your estate depends on who your surviving relatives are. When you have a spouse If you have a surviving spouse, your spouse will get the largest share of your estate. The exact share depends on whether you have surviving children, grandchildren or parents. If you have no surviving children, grandchildren or parents, your spouse inherits the entire estate; otherwise, your spouse inherits three-fourths of the estate, and your other heirs get an equal share of the remaining estate. When you have children but no spouse If you have children but do not have a surviving spouse, your children will each receive an equal share of your estate. If any of your children have died, their share of the estate goes to their children. When you are unmarried without children If you do not have a surviving spouse, children or grandchildren, your estate passes to your parents. If only one of your parents is living, that parent receives the entire estate. If both parents are alive, then they split your estate equally. Succession rules for siblings and other relatives If you die without any surviving spouse, children, grandchildren or parents, then your estate may pass to your siblings or other surviving relatives. If the state cannot locate any surviving relatives, your estate will pass to the state of Washington. While the state has a process to distribute your assets if you die without a will, creating a will and taking other estate planning steps provides peace of mind that your estate will pass to who you want it to.
The safety and well-being of our loved ones, especially the elderly, is paramount. It becomes a concern when those we care about may fall victim to scams specifically targeted at their demographic. As people grow older, they sometimes become more susceptible to manipulation and fraud due to factors such as cognitive decline, isolation or unfamiliarity with new technologies. It is important to stay informed about the types of scams that typically target elders. This awareness can help prevent your loved ones from becoming victims and ensure they maintain their financial independence and quality of life. Telephone scams Telephone scams are common and often target the elderly. Scammers may pose as representatives from an official institution, like a bank or the IRS, to trick the elderly into revealing sensitive information. They might also pretend to be a family member in need of immediate financial help. Internet fraud The increasing use of the internet by elders has led to a rise in internet fraud. Scammers might send emails appearing to be from a legitimate source, requesting personal information. They can also trick elders into downloading harmful software that allows the scammer access to their personal files. Medicare and health insurance fraud Healthcare-related scams are especially prevalent. In these scams, fraudulent individuals may pose as Medicare representatives to get elders to give them their personal information. Or, they might offer unnecessary services or fake healthcare services and charge them to the victim’s insurance company. Homeowner scams In homeowner scams, scammers may offer home improvement services, insist on immediate payment and then fail to deliver on the work. In other instances, they might trick elders into signing over the deed to their home under the guise of assisting with property taxes or mortgage payments. Protecting your loved ones from these common elder scams requires staying vigilant and taking preventive measures. Keep open lines of communication with your loved ones about their interactions and transactions. Encourage them to verify any suspicious calls or messages with you or another trusted family member before providing personal information or making any payments.
