Estate Planning Misconceptions – Mistakes that Cost – Part 2

MISCONCEPTION #5: My spouse can manage my affairs if I’m incapacitated.  Often thought to be true but is actually false.  When you turn 18 years old, you are considered an independent person and are responsible for your own healthcare and financial decisions.  Planning is necessary to plan for the unknowns of tomorrow.  Who is looking out for you if you can’t regardless of your age?  You need to have a Durable Power of Attorney, Power of Attorney for Healthcare, a Medical Information Release, and a Living Will.

MISCONCEPTION #6: A Living Will is the same as a Last Will and Testament (Will).  False. They are not even closely related. A Living Will is also known as an Advance Directive and is a healthcare document to be used while you are living.  A Last Will and Testament is only used later.

MISCONCEPTION #7: A Revocable Trust protects my assets from the nursing home or Medicaid.  Unfortunately, false.  A Revocable Trust may make things worse for Medicaid crisis “planning.”  If you think you need Medicaid within the next 5 years, you are in crisis mode already.  If you have 5 years before you need Medicaid, then you are in planning mode and there are things that can be done to protect assets.

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from DeWitt Law Firm, PLLC