5 Myths About Elder Law

There are many misconceptions when it comes to elder law and estate planning. Significantly, this misinformation can lead to costly mistakes and disputes among your loved ones. It can also result in poor planning, loss of your hard-earned assets, and unnecessary court involvement. By working with an experienced elder law and estate planning attorney, you can gain the knowledge you need to make informed decisions and avoid the pitfalls that could result in an unintended outcome. 

Here are five common myths about elder law: 

Myth #1: I Don’t Need an Estate Plan

One of the biggest myths about elder law is, “I don’t need an estate plan.” Regardless of the size of your estate or family circumstances, having at least a last will and testament in place is vital to ensure your wishes are carried out after your passing. If you do not have the proper legal documents in place to distribute your property in accordance with your wishes, intestate law would apply — and the results may not be what you had intended. 

Myth #2: I Can Wait Until I’m Older to Begin the Estate Planning Process

People mistakenly think estate planning is just for seniors. However, this is one of the most common myths about elder law. While the unexpected can happen at any age, it’s never too soon to start planning for the future. In fact, even if you have no assets at the time, you should start estate planning at the age of 18. Notably, if you become injured in an accident, an advance healthcare directive and powers of attorney can ensure you receive the medical treatment you wish, and the person you choose will make decisions on your behalf. 

Myth #3: Medicare Will Provide Coverage for My Long-Term Care Costs

You shouldn’t assume that Medicare will cover your long-term care costs. Generally, this program only provides benefits for short-term, medically necessary care — such as rehabilitative services following a hospital stay. It does not cover the costs of long-term care services to assist with activities of daily living, or the expenses associated with nursing home care. 

It’s essential not to confuse Medicare with Medicaid, which is a needs-based program and typically covers long-term care services. However, it’s critical to keep in mind that Medicaid requires advance planning in order to meet the eligibility criteria. A five-year look-back period is applied to any asset transfers to ensure individuals do not intentionally deprive themselves of assets to qualify for the benefits. 

Myth #4: I Can Draft My Estate Plan Without an Attorney

Another common myth about elder law matters is that you don’t need an attorney to draft an estate plan, especially with the increasing availability of online estate planning tools and DIY platforms. Although these options may seem appealing, it’s important to keep in mind that they can come with a number of risks. DIY estate planning tools do not allow for the customization that an attorney can provide or take the intricacies of the law and complexities of your situation into account. 

DIY estate planning tools are no substitute for the legal counsel, knowledge, and strategy an attorney can provide. In fact, there are many different types of estate planning vehicles that can be used to achieve your objectives. A comprehensive estate plan can include the following: 

• A last will and testament — While a last will and testament is the foundation of every estate plan, it isn’t the only document that can be used.
• Trusts — There are a wide range of trusts that can be used to carry out your wishes. Not only do certain types of trusts minimize estate taxes, but they can protect your assets and help your loved ones avoid the probate process.
• Beneficiary designations — Beneficiary designations can be used on bank accounts, life insurance policies, retirement accounts, and certain other accounts to bypass the probate process in connection with those assets.
• Incapacity planning documents — In addition to having the necessary documents in place to ensure your wishes are met when you pass away, a thorough estate plan should include a plan for incapacity. This can allow you to dictate who will make medical and financial decisions on your behalf if you are unable to do so due to illness or injury. 

An attorney can evaluate your specific situation and advise which estate planning documents you should have in place. They can also assist you with complex matters such as tax planning and Medicaid planning — which needs to be done years in advance. 

Myth #5: My Family Will Make the Right Choices for Me

Emotions can run high among your loved ones in the event of your incapacity or passing. Leaving important decision-making up to your family can not only result in conflict, but your wishes may not be carried out. In addition, informal agreements made with your family are not legally binding. It’s crucial to have the necessary legal documents in place to provide your family with clear guidance — and avoid the potential for misunderstandings, resentment, and court involvement in resolving family disputes. 

Contact an Experienced Michigan Estate Planning Attorney   

If you would like to learn more about estate planning, a skillful attorney can discuss your options and draft a comprehensive estate plan that will give you peace of mind. We invite you to contact Estate Planning & Elder Law Services today to learn more about how we can help. Our attorneys provide trusted counsel to individuals and families for a wide range of estate planning and elder law matters.