Robbins Brook Talk

8/3/2019 Robbins Brook Talk

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Margaret A. HoagEckel, Morgan & OConnor

978-266-0101


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Durable Power of AttorneyHealth Care Proxy

WillNote: our discussion focuses on

Massachusetts law


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Specific to Mass, no formPrincipalis the creator; the attorney-in-fact

or agentacts on behalf of the principal

The principal gives power to makefinancial decisions to the agent

What makes it durable? The authority ofthe agent continues after the principal ismentally incapacitated.


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Revocable at any time so long as the principal ismentally competent; terminates upon the death

of the principal

Powers of the agent include power to sellreal estate, make gifts, etc.

How to choose an agent?

Someone you trustCan you have two agents?


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Adopted in 1990 by statute and specificform

Replaces the living willa living will isevidence of intent and therefore may be

desirable

Agent has authority to make health caredecisions for the principal but only afterthe principal can no longer make or

communicate decisions


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Revocable so long as the principal ismentally competent

Terminates upon the death of theprincipal

How does it work? You must have aconversation with your proxy to be sure

your proxy knows your wishes


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Not a legally binding document inMassachusetts; a proxy can override a

living will

Valuable expression of your wishes in theevent of a disagreement in the family

No standard format


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A will is a legal document which sets outwho will inherit your property, how they

will inherit it, and who will be in charge of

overseeing your estate

Can you use joint accounts instead of awill?


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Four Good Reasons to Have a WillAvoid intestacy in which the state determines

who inherits your property

Leave your money to your heirs in unequalshares or to persons outside the immediate

family/charities

Save money by waiving sureties on the bondName the person you choose to be the

executor of the estate


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Revocable means you can change or revoke atany time; sometimes called a living will

May not be necessary to avoid probate but stilla good idea to be sure you do not have probate

A good management tool Does not protect assets from creditors or

Medicaid

Marital trusts can be used to reduce oreliminate estate taxes


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Irrevocable means it cannot be changednor assets removed except within the

terms of the trust

May, in certain circumstances, protectassets from Medicaid, creditors

Real estate in an irrevocable trust losescertain benefits such as homestead, taxexemptions


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Both revocable and irrevocable trusts canbe used to hold assets for a disabled child

The type of trust to use depends uponthe benefits the child receives and whose

money is funding the trust


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Guardianship Legal process in which

a probate court judge

appoints a person tomake medical/personal

decisions for a

mentally incapacitated

person

Conservatorship Legal process in which

a probate court judge

appoints a person tomake financial decisions

for a mentally

incapacitated person


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ExpensivePublic

The incapacitated person has no say overwho will serve as the guardian or

conservator

The incapacitated person has no say overthe medical or financial decisions


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MedicareMedicaid

Department of Veterans AffairsLong Term Care InsurancePrivate Funds


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Federal entitlement programVery limited benefits, no more than 100

days upon release from a 3 day hospital

stay

Home care program very limitedWill pay for hospice


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These policies are designed to pay onlywhen Medicare pays and only covers the

co-payments and deductibles


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Joint state and federal programMust qualify under medical, income and

asset restrictions

Review of five years of finances, can bedisqualified for a transfer of assets for up

to five years

Upon approval, Medicaid will cover allexpenses in a nursing home and has

extensive home care program


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Rules changed substantially in 2006:You cannot qualify for Medicaid if you own a

home worth more than $750,000 without a

spouse or other exempt person living in thehouse

Five year look backOther rules tightened up


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A great option for young seniorsMany options and products

Must offer coverage of home care andassisted living

Purchase of a policy which pays $125/dayand is used for two full years in a nursing

home will avoid estate recovery againstyour home


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Has some limited nursing home benefitsVA nursing homes

Benefits available to veterans based uponservice-connected disability


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Put your estate plan in order!Durable Power of AttorneyHealth Care ProxyLong Term Care InsuranceConsult an elder law attorney concerning

protecting your assets or planning for a

disabled child


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Find an elder law attorney atwww.manaela.org or www.naela.org

Ask family and friends for a referralYour COA may have free meetings with

an attorney available


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Documents

Robbins Brook Talk