Personal Representatives, Trustees and Guardians
Selecting an executor or trustee
Whether you choose a will or a living trust, you also need to select someone to administer the disposition of your estate — an executor or personal representative and, if you have a living trust, a trustee. An individual, such as a family member, a friend or a professional advisor, or an institution, such as a bank or trust company, can serve in these capacities. (See Planning tip 3.) Many people name both an individual and an institution to leverage their collective expertise.
What does the executor or personal representative do? He or she serves after your death and has several major responsibilities, including:
- Administering your estate and distributing the assets to your beneficiaries,
- Making certain tax decisions,
- Paying any estate debts or expenses,
- Ensuring all life insurance and retirement plan benefits are received, and
- Filing the necessary tax returns and paying the appropriate federal and state taxes.
Whatever your choice, make sure the executor, personal representative or trustee is willing to serve. Also consider paying a reasonable fee for the services. The job isn’t easy, and not everyone will want or accept the responsibility. Provide for an alternate in case your first choice is unable or unwilling to perform. Naming a spouse, child or other relative to act as executor is common, and he or she certainly can hire any professional assistance needed.
Finally, make sure the executor, personal representative or trustee doesn’t have a conflict of interest. For example, think twice about choosing an individual who owns part of your business, a second spouse or children from a prior marriage. A co-owner’s personal goals regarding the business may differ from those of your family, and the desires of a stepparent and stepchildren may conflict.
Selecting a guardian for your children
If you have minor children, perhaps the most important element of your estate plan doesn’t involve your assets. Rather, it involves who will be your children’s guardian. Of course, the well-being of your children is your priority, but there are some financial issues to consider:
- Will the guardian be capable of managing your children’s assets?
- Will the guardian be financially strong? If not, consider compensation.
- Will the guardian’s home accommodate your children?
- How will the guardian determine your children’s living costs?
If you prefer, you can name separate guardians for your child and his or her assets. Taking the time to name a guardian or guardians now ensures your children will be cared for as you wish if you die while they are still minors.
Contact us regarding these decisions. We will analyze your specific situation and provide guidance in these matters.
Contact us now and someone in our office will respond the following business day.
From the blog
Related Resources or Events?
Life Care Planning Model
Front Description
Subtitle
More content...
Frequently Asked Questions
There are basically five ways that you can pay for the cost of a nursing home:
- Rely on Medicare— Medicare does pay for some nursing home care as long as you are receiving rehab or certain skilled services. Medicare does not pay for long-term (or custodial) care in a nursing home.
- Use Long-Term Care Insurance– If you are fortunate enough to have this type of coverage, it may go a long way toward paying for the cost of the nursing home.
- Pay With Your Own Funds– This is the method many people choose first. Quite simply, it means paying for the cost of a nursing home out of your pocket. Unfortunately, with nursing home bills averaging between $8,000 and $10000 per month in our area, few people can afford a long-term stay in a nursing home.
- Apply for VA Assistance – This type of benefit may be available to someone over 65 years of age or is disabled, who either served in the military or is a surviving spouse of someone who served in the military. VA special pensions can help pay nursing home bills. Hurley Elder Care Law attorneys are accredited with the VA to provide more information on VA special pensions.
- Apply for Medicaid– This is a primarily federally funded and state administered program that pays for the cost of the nursing home if certain asset and income requirements are met.
Medicare is the federally-funded health insurance program primarily designed for individuals over age 65. There is a limited long-term care component to Medicare. In general, if you have had a hospital inpatient stay of at least three days, and then you need to go into a skilled nursing facility (for rehabilitation), then Medicare may pay for up to 100 days of skilled nursing care. If you have met the proper criteria, Medicare will pay the full cost of the nursing home stay for the first 20 days and will continue to pay the cost of the nursing home stay for the next 80 days (but with a deductible that’s $185 per day in 2021). In order to qualify for coverage, however, the nursing home resident must continue to meet Medicare criteria. It is never possible to predict how long Medicare will cover the “rehabilitation.” From our experience it often falls far short of the 100 day maximum, but they cannot end coverage because you have “plateaued.” Also be aware that if you have a Medicare Advantage Plan, your coverage may be even more limited. Medicare Advantage Plans must offer nursing home coverage, but they can offer these benefits differently than traditional Medicare. Medicare only pays for limited nursing home care. If you need long term care in a nursing home, you will have to use your own income and assets, long term care insurance, VA benefits, or Medicaid to pay for care.
Medicaid is a means-tested, government-provided health insurance benefit. It is the largest payer of nursing home care in Georgia. It is also commonly misunderstood. For instance, many people believe that they may have too much income for Medicaid. It is true that Georgia has an income cap. For 2021, that income cap is $2,382. This cap, however, does not mean that if a person makes over $2,382/month that he/she cannot qualify for nursing home Medicaid in Georgia. For nursing home residents that have an income higher than the $2,382 income cap, they must use a Qualified Income Trust (or Miller Trust).
No, this is simply not true and even though some families do spend virtually all of their savings on nursing home care, Medicaid does not require it. There are a number of strategies that can be used to protect your family’s financial security. In addition, there are also many assets that are considered exempt for Medicaid eligibility purposes.
A Miller Trust is an Irrevocable Qualified Income Trust. The Miller Trust specifically allows people who cannot afford nursing home care, but who have a monthly income that exceeds the Medicaid income cap, to be eligible for Medicaid coverage. The trustee is typically a family member, and the Medicaid applicant is the trust beneficiary. The Miller Trust serves no purpose other than being a tool for Medicaid qualification. We call it the extra “hoop” that has to be jumped through.
