Advanced Estate Planning

Strategies for Irrevocable Trusts

While a Revocable Trust permits you to maintain full control (as Trustee) and have access to all your assets (as beneficiary), an Irrevocable Trust, once created, may prohibit your right to control the trust (as Trustee) or have access to your assets but you get to decide to what extent. It is a common misconception that irrevocable trusts, once created, cannot be changed. While that is true of many irrevocable trusts created to avoid taxes (tax reduction or avoidance trusts), it is not true of all irrevocable trusts. An irrevocable trust is a trust you create for the benefit of yourself or others, and once created, you, as Grantor, must give up your right to something.

Debtor/Creditor law provides that whatever you can get, your creditors can get. You can have known creditors (i.e., bank/credit card debt) or unknown potential creditors (unforeseen lawsuits, nursing home, and divorce). A typical “income only” irrevocable trust permits you to receive the income on your assets, but you must give up your right to your principal. In some irrevocable trusts, you can retain the right to change who gets your assets during your life and after your death, and you maintain 100% control of your assets until your mental disability or death (asset protection trusts). 

Tax reduction/avoidance trusts are much more restrictive than asset protection trusts. Typically, you cannot retain any right to control or access any of the assets in an irrevocable tax reduction/avoidance trust. There are many irrevocable trusts available that are quite flexible and grantor-friendly. You should consult a qualified estate planning attorney to get counseled on all your options before creating an irrevocable trust.

Legal Planning for Charitable Giving

Charitable giving techniques are typically used for those who have accumulated wealth that is subject to estate tax at death. 

The estate tax rates are as high as 40% and those who have worked hard to create and accumulate assets will opt to utilize charitable giving techniques to minimize taxation while creating a lasting legacy without necessarily depriving your family of benefitting from your assets. 

Charitable planning is also utilized to minimize income taxes (which can exceed 40%), and you can retain full control of your assets. Charitable planning can also be effective when selling your business. When properly utilized, you can avoid paying income taxes on the sale of your business when sold.

Utilizing a charitable giving plan enables the donor to direct the use of his or her assets that would otherwise go to the IRS. Your assets can be passed to your family, charities, or the IRS, but you must choose two out of the three. If you don’t, the IRS wins by default.

Business Planning and Succession

Professionals and business owners face unique problems when it comes to running their businesses and providing their services while protecting their assets for their families. Doctors, lawyers, accountants, and many other professionals are exposed to personal liability every day. Simply having a corporation for your business does not protect your personal assets.

There are unique asset protection trusts we can use so that you will have the comfort of knowing you won’t lose your house. We can make sure that your house and other personal assets will still be available for you and your family.

Gain peace of mind knowing you won’t lose your house if something goes wrong in your business! Complete our online form to request a free 30-minute consultation.

Legal Solutions for Medi-Cal / Long-Term Care

Medi-Cal

While in many states there is Medicaid, California has its own version known as Medi-Cal, which is funded by the federal government but is administered by the State. It provides help to pay for long-term care expenses of those who do not have much income or assets and if they do not qualify for insurance.

Unlike Medicare, Medi-Cal does not have a minimum age limit. Particularly, it will pay for long-term care in a skilled nursing facility, or pay to have caregivers come to your home and take care of you. The qualification requirements are much more restrictive than requirements for a nursing home, but can easily be met with some planning.

To qualify for Medi-Cal, you must be over 65 years of age, blind, or disabled. You may also qualify if you are under age 65 and disabled for two years. An application at the Social Security office will get your benefits started. Medi-Cal keeps track of the total amount of benefits it pays out over the lifetime of the recipient and attempts to recover that amount from the beneficiary’s remaining estate. A proper Medi-Cal eligibility plan will not only qualify an individual for Medi-Cal benefits but also provide asset protection from potential Medi-Cal estate recovery. 

When you need a local estate planning attorney San Diego, CA swears by, come to us. Our firm can prepare and implement effective asset protection plans for single or married Medi-Cal recipients. The needs of the elderly and disabled are not just financial. Every day brings issues concerning health, well-being, and proper care. Long-term care is provided to an individual who needs assistance performing basic daily living activities due to a chronic disease or disability. The cost of long-term care can take an emotional and financial toll on you and your family.

Long-Term Care

It’s important to start planning for long-term care now to make sure your loved one gets the care they may need in the future, which can be provided at home, in a community, in assisted living, or in a nursing home.

At the Law Offices of Antoinette Middleton, our local estate planning attorney in San Diego, CA gives you and your family the peace of mind that comes from knowing that your loved one is safe and getting the right care. We provide legal services to protect their assets, coordinate public and private resources to pay for long-term care, and assist with Medi-Cal to help you understand and make wise choices.

To learn more and for a free consultation, please fill out our online form.