Creating your estate plan is a process, and you may get confused along the way.  We’ve taken the time to outline 6 important tips so that you can reach your goals more easily.  Take a look at some of the information below.  If you have any questions, or if you’d like to create an estate plan, meet with an estate planning attorney.

• Get the help of a professional. An attorney will be able to guide you throughout the process and will be able to give great legal advice.  You want to make sure that your plan meets all of your needs and is legally valid.
• Don’t be afraid to ask questions. Your attorney is there for a reason.  It’s important to understand all aspects of your planning.  If you’re unsure about a document’s use or a certain estate planning tool, ask your attorney to explain it.
• Start as early as possible. If you can, start planning now!  You want to make sure that you always have a plan in place.  Just because you’re young doesn’t mean that you don’t need an estate plan.
• Explore all of your needs. Take the time to really think about your estate planning goals.  This will allow you to create an estate plan that really works.
• Regularly review and update. Your estate plan will need to be reviewed periodically throughout your lifetime.  As you go through life’s many adventures, your needs will change.  Take the time to make sure that your plan is always current.
• Communicate with your loved ones. It’s important to let your loved one’s know that you’ve done your planning.  This will not only bring you a greater sense of peace of mind, but it will also help to relax your loved ones.

Taking the time to create an estate plan will allow you to always be protected.  If you have any questions about the estate planning process, or if you’d like to create your estate plan, consult with a qualified estate planning attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

Unless properly funded, your revocable living trust doesn’t control most of your property.  If you spend hours with your estate planning attorney making important decisions and pay legal fees, you likely want your revocable living trust to work.

If your property bypasses your trust, it doesn’t work.  Your entire plan fails because your assets did not pass through your trust, gaining all those wonderful trust benefits.

What assets your revocable living trust controls

Your revocable living trust controls those assets funded into the trust.  This means that the title of the asset is the name of the trust.

For example, your bank account is not in your name, it’s in the name of your trust:

Jack C. Sprat, Trustee, or his successors in trust, of the Jack C. Sprat living trust, dated April 15, 2011.  Or, something like that.

As long as the title holds your name, “living trust,” and, hopefully, the date of execution, your asset has been funded into your trust.  Computer fields at the bank and other institutions require abbreviation.  That’s okay.

What assets your revocable living trust does not control

Everything else.

• Joint tenancy assets
• Assets with beneficiary designation
• Assets held in trust for a beneficiary
• Assets that have a POD or TOD (i.e. payment or transfer on death) designation
• Asset in your individual name (unless you have a pour-over-will; and, then, assets have to go through probate to get into the trust.)

How do married couples own most, if not all, of their assets?

Consider the house, bank accounts, and investments accounts.  Most married couples own these assets jointly.

Consider retirement accounts and life insurance policies.  Most married couples name their spouse as the beneficiary of these assets.

All this means that most of the assets married couples own, aren’t controlled by their revocable living trusts.

All your planning is for naught if you don’t own your assets in an appropriate way.  If you have a revocable living trust, make sure that it’s fully funded.  Ask your estate planning attorney for guidance.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

Choosing a nursing home is a big deal.  We know that you’re concerned about quality of care, finances, and balancing all of life’s challenges.

To make choosing a nursing home a little easier, we’ve listed more than 19 things to think about.  If you have questions or need more guidance, feel free to telephone our offices.

1.  Is the nursing home certified by the state?  Is the facility administrator also certified?

2.  Is the nursing home near loved ones and favorite activities?

3.  Can the nursing home meet changing medical needs?  How often will your loved one be seen by a doctor?

4.  Do the residents of the nursing home look cared for and happy?

5.  Are bathrooms readily available in shared areas?

6.  What is the visitor policy?  Can visitors stay overnight?

7.  How’s the food?  Is the kitchen clean?  Are dinner trays cleaned up soon after meal time?

8.  What kind of entertainment and activities are included?

9.  How are the individual rooms?  Are they comfortable, private, and clean?  Can residents control heating, cooling, and airflow?

10.  How does the facility smell?

11.  Are there rooms that can be reserved to welcome guests?  Can snacks and drinks be offered?

12.  How much does the facility cost?  What services are extra?  What insurances are accepted?  What if your loved one runs out of money?  Will you have to hire an additional caretaker?

13.  What’s the staff to resident ratio?

14.  Are the nurses and support staff calm and friendly, or harried?

15.  Are the nurses’ desks organized and clean?

16.  Is there a separate dining room or are all meals taken in one’s room?

17.  Are televisions and phones available in each room?

18.  Does the facility appear to be well maintenanced and well lit?

19.  Are your questions happily answered?  Do you feel welcomed?

If you have questions about choosing a nursing home, consult with a qualified elder law or estate planning attorney.  And, best of luck with your decision.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

If you have elderly parents, you probably have many concerns about their wellbeing.  It is a good idea to regularly check up on your parents to make sure that they are able to care for themselves properly.  When checking up on your parents, make sure to do so with care.  You do not want to make your parents feel badly about their lifestyle or needs.

Take the following issues into consideration when keeping an eye on your parents.

• Are your parents able to take care of themselves on a daily basis?
• Do your parents seem to struggle with certain tasks?
• Is their home taken care of and regularly cleaned?
• Are there any safety conditions inside or outside of the home that may result in serious harm or injury?
• Do your parents seem afraid to ask for help?
• Are your parents struggling to pay bills and other expenses?
• Are your parents able to cook and prepare food?
• Are their medications up to date?
• Do your parents take care to make sure that they attend regular doctor appointments?
• Are they able to keep up to date with their financial affairs?
• Do you think that your parents are being scammed?
• Are your parents taking care to stay healthy?
• Are your parents making smart decisions?
• Do your parents have a proper estate plan in place?
• Do you know where their estate planning documents are located?

It is important to make sure that your parents are able to care for themselves.  If you feel that your parents may need help with certain tasks, it is important to express these concerns respectfully.  With a proper plan in place, your parents may be able to take care of themselves and live a healthy life.

If you have any questions about the needs of your elderly parents, consult with a qualified elder law attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

As the baby boomer, generation begins to retire the concern about the need for long-term care increases. Long-term care is expensive. In Florida, the average costs are as follows:*

• Avg. Daily Nursing Home Rate : Private $223
• Avg. Daily Nursing Home Rate : Semi-Private $204
• Avg. Monthly Cost in Assisted Living Facility: $2768
• Home Health Aide Average Hourly Rate: $18
• Homemaker Services Average Hourly Rate: $16
• Adult Day Services Daily Rate: $61

The rates for care in Miami and Orlando are higher than the state averages. The costs for long-term care in Florida are similar to the national average.

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In Alabama, the average costs are as follows:*

• Avg. Daily Nursing Home Rate : Private $164
• Avg. Daily Nursing Home Rate : Semi-Private $155
• Avg. Monthly Cost in Assisted Living Facility: $2244
• Home Health Aide Average Hourly Rate: $23
• Homemaker Services Average Hourly Rate: $22
• Adult Day Services Daily Rate: $31

The rates for care in Birmingham and Montgomery are higher than the state averages. The costs for long-term care in Alabama are lower than the national average.

Medicare only pays the full cost of nursing home care for the first 20 days; after that, Medicare will pay for a portion of the cost up to the 100^th day of care. Payment for nursing home care by Medicare after the 100^th day stops. In addition, Medicare will not pay for care in an assisted living facility, continuing care retirement community or adult daycare. Medicaid funding for these services depends on the state.

This means that most of the cost for long-term care will be out of pocket, unless you purchased long-term care insurance.

Long-term care insurance is probably the best option to cover costs of long-term care. However, it is impossible to buy when you need it. Many employers are offering long-term care insurance as part of a benefit package. If you have young adults just entering the work force advise them to take advantage of this insurance while they can get it for less expense. You could also consider asking your employer to provide it as part of your benefit package in lieu of a raise; it could save you both money.

*Source is National Clearinghouse for Long-Term Care Information

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

Many people believe planning for the care of a beloved pet that is alive at their death is an important part of their estate planning. Before the passage of Pet trust laws, it was difficult to leave funds to care for a pet because the common law considers pets to be chattel. It was illegal to make the pet the beneficiary of a trust.

Florida and Alabama have enacted trust laws that are based on the Uniform Trust Code. In essence these statutes allows for the creation of a pet trust with the following provisions.

• Animals must be alive during the settlor’s lifetime
• The trust terminates on
  • The death of the animal that is the beneficiary of the trust or
  • If created for more than one animal when the last surviving animal dies
• The settlor can appoint a trustee to enforce the trust or a trustee can be named by the court.
• Property of the trust can only be used for the purpose of the trust unless the court determines that the trust property value exceeds the amount needed for the care of the animal.
• Property not needed for the intended use of the trust will be returned to the settlor. If the settlor is deceased, it will be distributed to the successors of the settlor.

The Pet trust follows the same formalities of basic trusts. Property must be adequately titled unless the grantor leaves a significant amount of money to fund the trust. Setting up a pet trust is not a do it yourself proposition. The counsel of an attorney experienced in this area of the law is advisable to insure that the trust meets the needs of the pet and achieves your goals in establishing it.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.