I was working with a really nice family recently out of Baton Rouge. The husband and wife came into the office to visit with me, as well as their daughter. They were referred by their financial advisor who also works out of Baton Rouge. That financial advisor has a really good, trusting relationship with me and I’m fortunate that he entrusts his clients with me and our legal services. Nonetheless, the father was real clear about what their estate planning goals were. He said their main concern was to make sure they maintained their worth. Number two, they wanted to make sure there would be a fair distribution of their assets to their children when they pass away. And, number three, they wanted to minimize taxes.
So, we started talking about those things and you know, I thought to myself, he didn't bring up anything about potentially losing his assets if there was a nursing home situation. So, I brought it up and he said, “You know what? That's not something we've given a lot of thought to. It’s not something we've talked a lot about. Our plan is to stay out of the nursing home, but you never know. If our family can’t take care of us, we might have to go into a nursing home. So, protecting ourselves from that fits right in with our number one goal, which is maintaining our worth.”
They own a home and a couple of pieces of rental property, and they quickly learned that if there was a nursing home situation, they would have to sell all of their rental property and use all of the proceeds to pay for those nursing home expenses -- many thousands of dollars a month. So, they were real pleased and eager to get started on setting up a plan where they could arrange things so that no additional income tax would be due. There's not going to be any estate tax when they pass away. Everything's going to be arranged so that if in the future, there is a nursing home situation, that rental property and their life savings will be protected. They felt good about that. We started immediately and they are well on their way to having everything in order. So, if that's a concern of yours, the most important thing is addressing this ahead of time. If you'd like to have a conversation with us, feel free to let us know.