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*Links included in this brochure are included as a resource for your benefit. However, not all links are maintained, updated, or controlled by ALTCSPlanning.net; therefore we cannot guarantee the information found on all the websites is accurate, up-to-date and correct.
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2014
Edition
Helping Families Plan for Long Term Care since 2001
.
Providing the highest quality long term care planning
services in the State of Arizona since 2001.
Enter
The articles contained in this brochure were written
by Carol Aragon-Montgomery.
The information contained in this brochure is not
legal advice. It is intended to provide a general,
factual overview of some of the legal documents and
planning opitions available.
ALTCSPlanning.net is a private consulting firm that
charges $120.00*/** per hour for our consulations.
Our flat-fee long term care planning fees are based
on a sliding-fee schedule. Fees are subject to change
without notice.
Note: ALTCSPlanning.net is not a law firm and is not
employed by ALTCS or VA.
© 2014 Montgomery & Associates, Inc.
Brochure Design by Tiffany Aragon, Principal 602.615.8599
Finally!!
A one-stop resource for long term care planning!
* Our consultants can come to you; however, we charge a trip charge equal to $0.20 per mile (both ways).
** For appointments scheduled after regular business hours or on weekends, the hourly rate increases to $240.00 per hour.
480.464.4968
www.altcsplanning.net
Montgomery & Associates, Inc. is now doing business
as ALTCSPlanning.net
Next Page
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13-16
11-12
5-10
1-4
Who is ALTCSPlanning.net?
What are the pitfalls of applying on your own?
What is an ALTCSPlanning.net Initial Consultation?
What is ALTCS? (AZ Long Term Care System)
What is a Miller Trust? (aka: Income-Only Trust)
Breaking the ALTCS Myths
What is AHCCCS?
What is MCS? (Medicare Cost Sharing)
Which VA Benefits can help pay for long term care?
How can you plan ahead to pay for your long term
care?
• Self-Insuring
• Long Term Care Insurance
• Reverse Mortgages
• Mortgage Debt Reduction
Which legal documents to consider having in place?
• POAs--Financial, Medical, and Mental Health
• Living Wills and DNR Forms
• Deeds
• Living Trust and who should have one?
Table
of
Contents
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D
id you know that 1 out of 2 people will have a long term care crisis in their lifetime? These odds make it vital that you plan ahead. ALTCS Planning. net (formerly Montgomery & Associates, Inc.) is a long term care planning firm.You meet with CPAs and accountants for tax planning. You meet with financial planners to prepare your nest egg. You meet with funeral directors to plan your final services. Doesn’t it make sense to meet with a firm to look at the big picture of long term care planning?
But just what is a long term care planning and why would it be important to you? Long term care planning includes meeting with experts to help you gain understanding about your long term
care needs, putting in place the legal documents that allow someone to be “YOU” when you are no longer capable of making your own financial and/or medical decisions, and implementing financial strategies that will help you prepare for your potential long term care needs.
Long term care planning is for people of all ages. Raise your hand if you are age 18 or older!!! If you raised your hand, long term care planning is for you. The founders of ALTCSPlanning.net once worked for the state agency which determines eligibility for the ALTCS program. While in that role, they each found themselves frustrated with the fact that as state employees they were not allowed to provide information to the applicant that could help them be approved for the program the first time. Instead they had to deny applicants, sometimes more than once, and hope that the applicants or their family members would figure out things themselves.
More than half of the people who apply for ALTCS get denied. There is an obvious need for someone to take those applicants by the hand and help them understand why they got denied, work with them on options to resolve the denial reasons, and help them through the maze of government paperwork, toward a successful approval.
ALTCSPlanning.net has been in the long term care planning business for over 10 years. In that time we have educated over 2,000 families about their long term care options, retained over 1,000 cases for services, and received approval for benefits on over 975 cases. We are regularly requested as a key-note speaker and have shared our expertise at over 100 companies and organizations throughout Arizona.
Who is ALTCSPlanning.net?
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S
o often we listen to our friends and neighbors and believe their stories about their experiences. “So and so got qualified for benefits and they are millionaires.” OR, “I won’t qualify for help because I make too much money.” OR, “My friend gave away all of their money and the government pays for their care.” While it is great to talk with friends and neighbors about their experiences, the information you receive from them may not be reliable. In fact, it may not even be true.ALTCSPlanning.net consultants strip down the myths and provide you with the right information for your particular situation so that you can make informed decisions for you or your loved one.
You may be thinking, “The government programs are free, why should I pay someone to help me through the process?” Why, indeed! More often than not, you may have to apply several times before you understand what the government program requirements are and how to comply with them.
Government application processes can take 1.5 months to 6 months each time you apply.
If you are already paying for care, what good is free, when you end up
paying with your time and money anyway?
Do we charge a fee for this service? Of course! Our service has a cost; however, when you compare the cost of our service with the money and time you’ll save using our firm the benefits far outweigh the costs. Here’s what some of our customers have to say about our firm . . . “We appreciate the hard work and detail you put into this process and we are grateful to you. It’s been a long process but my mother is happy and safe and we appreciate you for helping make that possible.” – Haskins
family
“I wanted to take a moment and tell you how appreciative my family is for your services, you are always responsive to my questions and ‘on the ball.’ Having you guys around is worth every penny. Thanks Again.” – Hambleton Family
“Carol, you and George have been absolutely super. Should you wish any prospective customers to contact us for our assessment of your services, please do so in the knowledge that we will supply a glowing recommendation.” – Gundersen Family
With so much misinformation available and so many new companies cropping up claiming to be the experts, it is imperative that you meet with a company with actual experience and know-how. Our consultants have been on both sides of the desk and understand the system and can provide you with information to preserve some of your assets and position yourself to obtain a successful approval the first time you apply for the programs.
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What are the pitfalls of applying
for government programs on your own?
•
You may get denied by ALTCS or VA and not really understand
why.
•
You may have to wait until the application processing
timeframes are over before you even know there’s a problem.
The ALTCS application processing timeframe is at least 45 days.
The VA application processing timeframe is at least 120 days.
Can you afford to wait, not knowing for sure you will qualify?
•
You may be making life-changing decisions based on
misinformation, missing information, or miscalculation.
•
You may end up providing information that they really don’t need
to make their decision.
• You may end up timing your spend down wrong and cost
yourself the approval or worse yet, ineligibility for an extended
period of time.
•
You may be sold a product that you don’t need.
•
You may buy an annuity that supposedly fixes one problem
while causing another.
• You may not be told the long term implications of planning
decisions.
• You may increase your cost of care in the long run.
• You may be doing something that is not in your best interest.
• You may be convinced that a particular product will help you but
what you may not realize is that the person selling the product is
more concerned about the commission they’ll make.
•
You may affect the amount of money your spouse has to live on.
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What is an
ALTCSPlanning.net initial consultation?
WOULDN’T IT BE NICE TO GET THINGS RIGHT THE FIRST TIME?
An initial consultation is a meeting with experts to help you gain understanding about your long term care needs so that you can get it right the first time. The information
collected during a consultation is plugged into our system so that we can show you how your situation fits into the long term care planning picture.
Are you in the planning stages or implementation stages? What roads can you go down to achieve your long term care planning goals? What programs are out there to help you pay for your long term care? What other options are available to you? To better serve the public’s needs, ALTCSPlanning.net offers two types of initial consultations.
The first is a no-cost initial consultation.
This consultation is an opportunity for you to tell us about your situation and for us to do some simplified education about ALTCS and VA, the programs’ eligibility requirements, and their benefits. We also review all of the eligibility factors as they relate to you and provide a quick analysis of your potential eligibility for the programs. We can then provide a base fee quote so that you can know about what it will cost for our firm to assist you through the ALTCS and/or VA eligibility processes. No-cost initial consultations are conducted by phone only.
The second type is our $120.00*/** an hour full initial consultation. This consultation allows us to complete a more thorough, in-depth analysis of your situation and provide more detailed information and education about the programs and planning options available. Additionally, it presents an opportunity for you to get answers to all your questions. At the consultation, we review medical and financial information for you to determine if you can or should pursue privately paying for your care, pursue government benefits through ALTCS or the Veterans Administration,
or if you are just in a position to do some pre-crisis planning. Pre-crisis planning may entail financial planning and utilizing financial tools (insurance, investments, etc.) to
accomplish your long term care goals. If you’re pursuing governmental benefits, we evaluate the medical and financial requirements for AHCCCS / ALTCS / VA to determine if you are ready to pursue these government benefits immediately or if there are roadblocks or eligibility requirements that will need to be addressed before submitting an application.
After completing a thorough evaluation, we assess a fee based on the types of things that need to be accomplished to facilitate long term care planning or government
assistance. These types of consultations can be conducted by phone or in person. The same fee applies to either option (phone or in-person).
*We do offer an option for our consultants to come to you; however, we do charge a trip charge of $0.20 per mile round trip.
**For appointments scheduled after regular business hours or on the weekends, the hourly rate increases to $240.00 per hour.
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What is ALTCS?
(Arizona Long Term Care System)
ALTCS is an acronym for Arizona Long Term Care System. ALTCS is a division of AHCCCS (See page 9 for more information about AHCCCS). ALTCS can help you pay for long term care expenses if you qualify for the program.
There are three sets of eligibility criteria: Non-financial, Medical, and Financial. On the Non-financial side of things you must:
• Be linked to the program through age or disability • Verify Citizenship or Qualified Alien status • Verify your identity
• Verify your Social Security Number • If married, verify your marital status
• Be living in an ALTCS approvable living arrangement • Apply for all potential benefits
• Assign your rights to health benefits to AHCCCS
• Pass the Pre-Admission Screening process (see medically eligible requirements below)
In order to be medically eligible for ALTCS, the applicant must meet or exceed a combination of functional and medical factors as established by the Pre-Admission Screening process. The applicant must need long term care at a level of care comparable to that provided in a nursing facility, but which is below that of an acute care setting, hospitalization or intense rehabilitation, and above that of a supervisory/
personal care setting.
An individual who meets ALTCS criteria for Title XIX eligibility will present with a combination of the following needs or impairments:
• Requires nursing care by or under the supervision of a nurse on a daily basis; • Requires regular medical monitoring; Impaired cognitive functioning;
• Impaired self care with activities of daily living; • Impaired continence;
• Psychosocial deficits.
And, on the Financial side of things you must:
• For single applicants: Have income below the current income limit of $2163.00* per month AND countable assets below the current resource limit of $2000.00.
• For married applicants where the spouse continues to reside in the community: Have a combined income below the current income limit of $4326.00* AND countable assets less than $23,448.00**. **For couples whose assets are greater than
$23,448.00, an ALTCS Resource Assessment may need to be completed to determine if you can keep more (up to $117,240.00). This may present an opportunity to save precious assets.
• For all ALTCS applicants (single or married): Have no transfers of assets in the past 5 years that create a period of ineligibility for long term care.
*Those with income greater than these limits may still qualify using a Miller Trust (aka: Income-Only Trust. For more information about the Miller Trust see the next page.
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What is a Miller Trust?
(aka: Income-Only Trust)
What is a Miller Trust (Income-Only Trust)?
An income-only trust is an actual trust document that meets the Special Needs Trust provisions of the Arizona Revised Statutes. It is a tool used to help people who are over the ALTCS income limit qualify for the benefits when they would normally be denied.
If I create a Miller Trust (Income-Only Trust) will I be income eligible for ALTCS?
No. Unfortunately, that is just the first step. Not only must an actual Miller Trust document be created and signed, but also a bank account in the name of the trust must be opened and funded. Funding the trust means actually depositing the income assigned to the trust into the trust account in the month the income is received.
If I put my income into an Miller Trust (Income-Only Trust) will I have any money to live on?
The income placed into a Miller Trust is allowed to be disbursed for personal needs, food, clothing, shelter, medical expenses, share of cost, and other allowable disbursements (see trust provisions for a complete listing). The beneficiary (through the trustee) can use the money to live on. Keep in mind that the total disbursements for food, clothing, shelter, and payments directly to the beneficiary are counted toward the current income limit, so the totals disbursed for these items must remain at or below the current income limit ($2130 for year 2013).
If I pass away who gets the money left in the trust?
The first named beneficiary of the trust is AHCCCS. If there are funds beyond what is due to AHCCCS still left in the trust, the remaining funds may then be disbursed to your rightful heirs.
Does an attorney have to create the Miller Trust Document?
No! A certified legal document preparer (CLDP) can create the trust for you and at a fraction of the cost of most law firms. ALTCS Planning.net employs Carol Aragon-Montgomery, a CLDP.
What is the cost of an ALTCSPlanning.net Miller Trust?
$250.00 - $750.00 We guarantee that if you need the trust this week we will fit you into our schedule*.
*If the current month’s income has been spent we will schedule you for the week in which the next month’s income will be received.
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Myth: (noun)
A fiction or half-truth, especially one that
forms part of an ideology.
Myth # 1:
Only An Attorney Can Assist You with ALTCS Planning.
The last few years has created an
abundance of law firms who state that they specialize in ALTCS planning. The truth is that our ALTCS planning firm has more
experience assisting families with their
ALTCS needs than most attorneys in the
state. At this brochure’s printing, our staff
have a combined 47+ years experience. We have also found that many of the firms that decide to do ALTCS Planning eventually
stop offering that service. Several of those firms now refer potential ALTCS planning customers to our firm.
Myth # 2:
ALTCS Planning should cost $8,000 and up.
You can pay $8,000 and up to have a law firm perform ALTCS planning if you would like, but we think that the money saved using us should be spent on your family. Our fees are many times 30%
to 50% less than our competitors. This doesn’t
mean you get 30% to 50% less work, it just means you pay less, so your loved ones have more. In some law firms, the attorney himself or someone in the firm may be a registered securities agent, which means if he or she recommends an annuity for your loved one, the firm may be collecting a sizeable commission on top of the ALTCS planning fees.
Ask any attorney to disclose all commissions paid to them
or to their staff. To check if the attorney or staff you are working with is a registered insurance agent, go to http://app.az.gov/id/lookup/producersearch.
Breaking the ALTCS Myths
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Myth # 3:
ALTCS takes your house, car, and belongings once you qualify for help.
This is not always true. Although states are mandated to perform “estate recovery,” this doesn’t happen until after the death of the ALTCS member. We can provide information about exemptions and waivers from estate recovery.
Myth # 4:
If I have given away money or assets, I won’t qualify for help for at least 5 years.
This may not be true. There are several sets of rules used to determine if a period of ineligibility exists. Meeting with our consultant will help you know if your gift will cause ineligibility for the program, how long that period may be, and if the period can be reduced or eliminated.
Myth #5:
My father is currently in an assisted living home, and I was told he won’t qualify for ALTCS.
Anyone can apply for the program at any time regardless of their living arrangement. However, to be approved, an applicant must reside in an assisted living home that has an AHCCCS Provider ID number.
Myth #6:
I don’t want mom to live in a nursing home, and that is all ALTCS will pay for.
ALTCS pays for and will provide services in nursing homes, assisted living homes and centers, foster care homes, and even in your loved one’s home.
Myth #7:
My mother makes too much money to qualify for ALTCS services.
Although ALTCS has income qualifications, a person can set up an Income-Only Trust (also known as a “Miller Trust”) and still possibly qualify for services. Miller Trusts at most law firms can cost more than $1000.00. Our Miller Trust can be purchased for between $250.00 - $750.00* and is time tested with ALTCS having been used to obtain income eligibility for hundreds of customers.
*See page 6
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9
What is AHCCCS?
What is MCS?
AHCCCS (Arizona Health Care Cost Containment System) is Arizona’s version of Medicaid. It was established by the State of Arizona to provide health care for Arizona residents. There are five health insurance programs available under the AHCCCS Administration:
• Arizona’s Medicaid • KidsCare
• Health Insurance for Parents • Medicare Cost Sharing • Healthcare Group
The Centers for Medicare and Medicaid Services (CMS) is the federal agency that oversees the Medicaid programs. Medicaid is a jointly funded, Federal-State health insurance program for certain low-income and needy people. It is also known as Title XIX of the Social Security Act, which provides for federal grants to the states for medical assistance programs. AHCCCS is responsible for submitting a written State Plan, which assures that Arizona’s Medicaid program will be administered in conformance with the federal requirements of the Social Security
Act and provides a basis for Financial Federal Participation (FFP). For more information about AHCCCS, visit their website at www.AZAHCCCS.gov.
Source: AHCCCS Eligibility Policy Manual Chapter 100
The MCS (Medicare Cost-Sharing) programs are administered by AHCCCS. They include the QMB, SLMB, and QI-1 programs. These programs do not cover long term care expenses; however, they do increase your monthly net income since the State of Arizona pays for your Medicare Part B premium each month you qualify for one of these programs. That can mean and extra $1,258.80 in your pocket over the next 12 months.
The Qualified Medicare Beneficiary or QMB program pays for Medicare Part A and B premi-ums, co-insurance (that is the 20% that Medicare doesn’t pay of the Medicare assignment amount), and the annual Medicare deductibles. The monthly income limits change annually in April. At this time, the monthly income limit is $958.00 for a single individual and $1293.00 for a married couple. Individuals that have Medicare only and apply and qualify for QMB can continue to use any doctor or hospital they choose - they do not have to switch to AHCCCS/ Medicaid approved doctors. However, for individuals who want to have full medical benefits and enroll with an AHCCCS/Medicaid health plan can qualify if they have income within the same limits as the QMB program.
The Specified Low-Income Medicare Beneficiary or SLMB program pays for a member’s Medicare Part B premium. The monthly income limit range is $958.01 to $1149.00 for a single individual and $1293.01 to $1551.00 for a married couple.
Like the SLMB program the Qualified Individual-1 or QI-1 program pays for a member’s Medi-care Part B premium. The monthly income limit range is $1149.01 to $1293.00 for a single individual and $1551.01 to $1745.00 for a married couple.
Please note that there is a $20.00 deduction from your total gross monthly income to deter-mine if you qualify so if your gross monthly income (that’s the amount you get before anything is deducted from your income) is just up to $20.00 over the limits stated, you still may qualify for one of these benefits. Also, any interest or dividends received from investments or savings DO NOT count against the total gross monthly income limits stated AND there are NO asset or resource guidelines that must be met to qualify for these benefits.
You can download and print the MCS application by visiting the AHCCCS website:
http://azahcccs.gov/applicants/application/AcuteCare.aspx and clicking on the link: Application for AHCCCS Health Insurance and Medicare Cost Sharing Programs.
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Can VA Benefits
help you pay for long term care?
If you are a Veteran or widow of a Veteran who served at least 90 days active duty with at least one day served during a war-time period, and you were discharged other than dishonorably,
AND . . .
If your assets (not necessarily including your home and automobile) are just enough to cover 12 months of expenses or less;
AND . . .
If your income each year is less than the threshold set by the Veterans Administration (minus unreimbursed medical expenses)
NOTE: The Veterans Administration can use the actual cost of
unreimbursed medical care minus 5% of the Maximum Annual Pension Rate to offset your annual income. Medical care may include, but is not limited to, monthly charges by assisted living or nursing facilities, adult care home, costs of doctor’s appointments and non-reimbursed prescription amounts, medical supplies, eye glasses, hearing aids, travel to medical appointments, etc.)
THEN . . .
You may be eligible for a cash benefit from the Department of
Veterans Affairs (VA). You can use this cash to help pay for your long term care expenses.
THOSE THAT . . .
Have a medical diagnosis by a doctor (yours and/or the VA doctor) that states that you cannot live independently and need regular assistance and care MAY QUALIFY FOR MORE!!!
ALTCSPlanning.net initial consultations can help you determine if you may qualify for any of these types of benefits. We can help you perfect your application to improve your chances of approval the first time you apply.
Call TODAY to schedule your initial consultation! 480.464.4968
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How can you plan ahead
to pay for your long term care?
If statistics hold true, 1 out of 2 persons will have a long term care crisis in their lifetime. Rather than hoping a government program will exist at the time you need help paying for your long term care crisis, plan ahead. There are several options for this. We will touch on four options here: Self-insuring, Long Term Care insurance,
Reverse Mortgages, and Mortgage Debt Reduction.
Self-insuring or setting aside a portion of your income now for future use requires patience and dedication to the long term goal. If you have 20 years to achieve the self-insuring goal and the average amount needed to provide for your future long term care needs is about $69,000.00 per year (average of 4 years) and you are able to earn a rate of return of 10%, in today’s dollars you would need to save $363.46 per month. If, however, you have 40 years before the potential need for long term care, then you can reduce the monthly contribution to $43.64. By starting early, you reduce the hit on your budget by $319.82 per month. If that doesn’t convince you to start saving early . . . Well . . . There’s another alternative: Long term care insurance.
Long term care insurance may be right for you IF . . .
• You have not been diagnosed with a long term care illness. • You have significant assets or income you want to protect. • You can pay the premiums without financial difficulty.
• You want to stay independent of the support of others or stay independent of Medicaid assistance.
• You want to have flexibility of care in the setting of your choice.
Long term care insurance policies may cover:
• Nursing facility care • Home health care • Respite care
• Hospice care
• Personal care in your home
• Services in adult care homes or assisted living facilities
• Adult day care
Reverse Mortgages can be a viable option to fund or supplement your long
term care needs, too. Reverse mortgages are available to those who are 62 years or older who have equity in their home. With a reverse mortgage, the home owner can continue to live in their home as long as they want. The reverse mortgage does not require monthly mortgage payments. There are no income qualifications for this type of loan. A reverse mortgage can provide easy access to the equity in their home.
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Reverse mortgages may be tax-free (consult a tax advisor for more information about this) and the monies can be received as one lump sum, or in regular monthly payments as long as the owner lives there, or in regular monthly payments for a fixed period, or in a line of credit, or any combination of these. Once you qualify for Medicaid / ALTCS, you can continue to draw the equity each month to supplement your in-home care needs and it will not impact your eligibility for the program. The draw is not considered income and as long as you spend the draw before the end of the month, the draw doesn’t count as a resource.
Mortgage Debt Reduction can be used to increase your net worth and reduce your expenses earlier so that you can self-insure, or pay for long term care insurance, or have full equity available in your home should you decide to do a reverse mortgage. Here are some ways to reduce your mortgage debt.
1. MAKE EXTRA PRINCIPAL PAYMENTS AS YOU ARE ABLE TO
Even making random extra principal payments to your mortgage can help you to reduce your mortgage debt. The extra payments are applied to your principal amount due and will reduce the total number of payments due to the mortgage company and thus reduce the interest you pay on the home.
2. MAKE CONSISTENT MONTHLY EXTRA PRINCIPAL PAYMENTS
This allows you to reduce principal amount due every month and will reduce the total number of payments due to the mortgage company and thus reduce the interest you pay on the home.
3. MONEY MERGE ACCOUNT
This software along with a HELOC helps you make your monthly income work for you to help reduce your debt without adding extra principal payments out of your pocket.
4. IF YOU WILL ONLY BE IN HOUSE 5 YEARS OR LESS, CONSIDER
AN INTEREST ONLY LOAN – TAKE THE DIFFERENCE AND INVEST IT FOR YOUR FUTURE.
This allows you to use the compounding interest effect to work for you during those years when a traditional mortgage is paying interest only anyway.
5. DEBT-STACKING
This plan allows you to take the regular payment that you were making to another debt (that you paid off) and add it to another debt you are still making payments on. Once that other debt is paid off you add both regular payments you were making and add it to another debt that you still owe. This causes all debts to be paid off faster and thus you eventually are adding that to your mortgage and you haven’t affected your monthly budget.
Let our financial planning division help you to assess if self-insuring, long term care insurance, reverse mortgages, or mortgage debt reduction might be right for you.
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Which legal documents to consider
having in place?
A very important part of your long term care planning is having your paperwork in order. Did you know by not putting your wishes in writing the court system may have to become involved in every aspect of your financial decisions and
medical care? Wouldn’t you rather be the person who makes those decisions? You can! There are documents that you can sign which name someone you trust to be YOU when you are no longer capable of acting on your own behalf.
For example: One of our customers was a 23-year old recent college
graduate who was in a severe car accident. We met with her parents shortly thereafter. She was in a coma and unable to express her wishes. Because she had not put her wishes in writing, her parents spent over $10,000.00 to have the court appoint them as her conservator and guardian to manage her finances and to make decisions regarding her health care. This could have been avoided had she taken the time to put her documents in place. She was young and probably believed that nothing like that would ever happen to her.
Carol Aragon-Montgomery is a Certified Legal Document Preparer at ALTCS Planning.net and can prepare the legal documents listed in this article.
Here is information about the types of legal documents you may want to have prepared for you to sign. The documents may include: Financial Power of Attorney, Medical Power of Attorney, Mental Health Care Power of Attorney, Living Will, Pre-Hospital Medical Care Directive, Living Trusts, Last Will & Testaments, and Beneficiary Deeds.
FINANCIAL POWER OF ATTORNEY
THIS IS A DOCUMENT THAT ALLOWS YOU TO APPOINT SOMEONE TO HANDLE YOUR FINANCIAL AFFAIRS ON YOUR BEHALF. • You will want to choose someone you trust to make your financial decisions.
• A durable financial POA means that the document continues to be legally valid even if you become incapable or unable to handle your finances.
• You can make this document effective immediately or only upon your incapacitation.
• You may want to name one or two alternate agents in case the first person designated is unavailable or unable to act as your agent.
• To be valid this document must be witnessed by someone not related to you AND notarized.
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MEDICAL OR HEALTH CARE POWER OF ATTORNEY
THIS DOCUMENT ALLOWS YOU TO APPOINT SOMEONE TO HANDLE YOUR MEDICAL CARE AND HEALTH CARE DECISIONS ON YOUR BEHALF IF YOU
BECOME INCOMPETENT OR INCAPACITATED.
• You will want to choose someone you trust to honor your personal wishes with regard to your health care and health care treatments.
• It is only valid when you are incompetent or incapacitated and unable to express your own health care wishes.
• You may want to name one or two alternate agents in case the first person designated is unavailable or unable to act as your agent. • To be valid this document must be either witnessed by one person not
related to you OR notarized.
MENTAL HEALTH CARE POWER OF ATTORNEY
THIS DOCUMENT ALLOWS YOU TO APPOINT SOMEONE TO HANDLE YOUR MENTAL HEALTH CARE DECISIONS ON YOUR BEHALF AND ALLOWS THAT PERSON TO ADMIT YOU INTO A PSYCHIATRIC TREATMENT FACILITY IF YOU BECOME INCOMPETENT OR
INCAPACITATED. • You will want to choose someone you trust to honor your personal wishes with regard to your mental health care and mental health care treatments. • It is only valid when you are incompetent or incapacitated and unable to express your own mental health care wishes.
• You may want to name one or two back-up agents in case the first person designated is unavailable or unable to act as your agent.
• To be valid this document must be either witnessed by one person not related to you OR notarized.
LIVING WILL
THIS DOCUMENT ALLOWS YOU TO EXPRESS WHICH MEDICAL TREATMENTS YOU WANT OR DON’T WANT AT THE END OF YOUR LIFE. • A living will informs your family and loved ones what YOU want and how you
wish to be treated at the end of your life.
• To be valid this document must be either witnessed by one person not related to you OR notarized to be valid.
Legal documents information is continued onto page 15.
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Pre-hospital Medical Care Directive (DO NOT RESUSCITATE)
THIS DOCUMENT INFORMS EMERGENCY MEDICAL PERSONNELREGARDING YOUR WISH TO NOT BE RESUSCITATED.
• This document lets emergency personnel know NOT to use equipment, drugs, or devices to restart your heart or breathing.
• It must be on letter-sized orange colored paper or wallet-sized orange colored paper to be valid.
• You must attach a picture or complete personal information with your physical description.
• It must be signed by you in front of a witness.
• It must be signed by a witness AND health care provider acknowledging that you understand the consequences of using this form.
LIVING TRUST
THIS WRITTEN AGREEMENT SETS FORTH WHO WILL MANAGE THE ASSETS PLACED IN IT DURING YOUR LIFETIME, IN THE EVENT OF YOUR
INCAPACITY, AND UPON YOUR DEATH.
• A living trust avoids the cost and delays of probate. Upon your death (and your spouse, if married), your Successor Trustee can distribute the assets almost immediately and with little or no additional expense (other than typical costs such as real estate commissions, etc.) Court supervision is not required. • A living trust avoids conservatorship if you become incapacitated.
• A living trust keeps your estate affairs private.
• To be vaild this document must be signed by all Trustors AND Trustees AND notarized.
LAST WILL & TESTAMENT
THIS DOCUMENT SETS FORTH WHO WILL MANAGE YOUR ESTATE UPON YOUR DEATH AND EXPRESSES HOW YOUR ESTATE WILL BE DIVIDED (WHO ARE YOUR HEIRS AND WHAT THEY WILL INHERIT). • A last will & testament must be probated and becomes public record. • A last will & testament can name guardians for your minor children. • A last will & testament can be challenged.
BENEFICIARY DEED
• A beneficiary deed allows a person in Arizona who owns real property to name a beneficiary ahead of time to allow real property to pass to an heir without probate.
• To be valid a beneficiary deed must be notarized AND recorded before the death(s) of the real property owner(s).
Check out http://www.altcsplanning.net/fees/legaldocumentfees.html for a list of our current legal document fees.
Let us know if you are a college student (with a college student ID) or a current active military family and receive a 10% discount on our already low prices.
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The Living Trust:
Who Should Have One?
The living trust has become one of the most useful tools in estate planning. I am frequently asked by customers, “Is a trust right for me?” Below are the guidelines I have developed to help individuals determine if they should create a trust.
1. If I want to avoid probate for my heirs, is a living trust the best tool?
WHEN YOUR GOAL IS TO MAKE YOUR AFFAIRS SIMPLE AND CONVENIENT FOR YOUR HEIRS, A LIVING TRUST IS THE BEST TOOL TO USE.
CAVEAT: A person who is untrained or unskilled in estate planning sometimes
recommends joint tenancy as a way to avoid probate. However, the pitfalls of joint tenancy are numerous and serious. A living trust does not have any of those pitfalls.
2. If my goal is to keep my affairs private, is a living trust appropriate?
WHEN YOUR GOAL IS TO KEEP YOUR WISHES PRIVATE AND NOT SUBJECT TO CHALLENGE, A LIVING TRUST IS AN EFFECTIVE TOOL TO USE.
3. If we want our children to inherit without death taxes, should we have a living trust?
IF YOU’RE MARRIED AND YOUR GOAL IS TO MINIMIZE TAXES FOR YOUR HEIRS, A LIVING TRUST (AB TYPE) IS THE BEST TOOL TO USE, BUT ONLY IF YOUR NET ESTATE IS GREATER IN VALUE THAN THE AVAILABLE TAX EXEMPTION OR IS LIKELY TO EXCEED THAT VALUE WHEN YOU ARE BOTH DECEASED.
CAVEAT: A living trust can only shelter a certain amount; it cannot avoid estate taxes above that amount.
NOTE: An estate with a net value of less than $2 million in 2007 is not subject to estate taxes, even without a trust. Even though estate tax planning can be accomplished by a will, that will must be probated in order to save the taxes. It is the combination of avoiding taxes and probate which makes the living trust so attractive.
4. If one of our goals is to protect the greatest amount of wealth for the surviving spouse, can a living trust help us?
FOR A COUPLE WHO WANTS THE GREATEST LEVEL OF PROTECTION FOR THE SURVIVING SPOUSE SO THAT ASSETS CAN BE USED EXCLUSIVELY FOR THAT SPOUSE, A LIVING TRUST IS AN APPROPRIATE TOOL.
CAVEAT: Not all living trusts have creditor protection for the surviving spouse; the level of protection varies from state to state. There is no creditor protection in the living trust for the couple while both spouses are living.
5. Is it true that a living trust can also save income taxes for the surviving spouse?
FOR A COUPLE WITH APPRECIATED ASSETS WHO WANTS TO OBTAIN THE INCOME TAX ADVANTAGES OF COMMUNITY PROPERTY, A LIVING TRUST IS THE BEST TOOL TO USE.
Creating a living trust is one of the most important things you will do in your life. It is a gift that you give yourself and your heirs: the gift of knowledge & your wishes in writing!
CALL 480.464.4968 TO CREATE YOUR LIVING TRUST. Source: http://www.q4bcenter.com/Trust-Who.pdf
