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SENIOR LIFE ODYSSEY: Are you an elder law expert?
Have your Facebook friends ever sent you one of those quizzes? The ones that promise to tell you how smart you are, which movie star you’re most like, or whether you’re “a kid who grew up in the ’50s?” Well if you’re a senior citizen, here’s a true/false quiz that will tell you some important facts about “elder law.” What you don’t know can hurt you.
Look carefully and you’ll see that every one of the statements in this quiz is false.
1. A person with power of attorney can handle your affairs when you die.
False. A power of attorney expires when the person who granted it dies. The person who handles your affairs after you die is an executor or personal representative.
2. A Living Will tells your loved ones “who gets what” when you’re gone.
False. A Living Will has nothing to do with distributing your assets when you die. Instead, a Living Will is a document you use to say whether you do or don’t want life support used at the end of your life.
3. It’s a good idea to put your kids’ names on your bank account.
False. Adding your kids’ names to your bank account makes them part owners, even while you’re alive. If they ever get sued, go through a divorce, or have creditors come after them, part of what you thought was your account may be at risk. Giving your children power of attorney, rather than making them part owners, is a better way to give the kids authority to help manage your account. Making your account “payable on death” will mean the account goes automatically to the people you choose when you die, without them having to go to court.
4. Taxes are going to take a big piece of your estate if you don’t make proper plans.
Unless you have property in another state and/or your estate is worth more than $12.9 million, this is false. The Indiana Inheritance Tax has been repealed. And the federal Estate Tax does not affect estates smaller than $12.9 million.
5. If I don’t include my spouse in my will, he or she will get nothing.
False. In Indiana, even if you don’t leave your spouse anything in your will, he or she is still entitled to a $25,000 “spousal allowance.” He or she can also “take against the will” and claim a significant share of your estate. (The solution can be a pre-nuptial agreement.)
6. A handwritten will is valid in Indiana as long as it is notarized.
False. A handwritten will can be valid in Indiana, but it must be signed by two witnesses, not notarized. There are other requirements for a valid will in Indiana, so making a “do-it-yourself” will isn’t really a good idea.
7. As long as my will says who’s to receive my estate, it doesn’t matter who’s the beneficiary on my life insurance.
False. Your will only controls assets you own individually, and which do not have a beneficiary or “payable on death” designation. If your will says one thing, and a beneficiary designation says something different, that asset will go to the designated beneficiary – not to the person named in your will.
8. Only wealthy people need trusts.
False. Trusts can be useful, even to people who have a relatively small estate. Trusts can help you avoid probate, protect you from long-term care costs, and protect your children and grandchildren from losing their inheritance to divorce, creditors or lawsuits.
9. You have to be poor to receive Medicaid benefits.
False. Medicaid is a government program that can help pay for home healthcare or long-term care in a nursing home. The law allows even people with considerable assets to qualify for these benefits. An elder law attorney can show you how to qualify without giving up what you’ve worked hard for all your life.
10. If you need long-term care and can’t pay for it, they’ll take your house.
False. Going into a nursing home is not a reason to lose your house. The State of Indiana won’t take your house, and neither will the nursing home. Your house might have to be put up for sale or rent if you’re not married and you move from your house to a nursing home. The rules are complicated, so speak to a professional who deals regularly with Medicaid issues in order to protect your home.
This overview is provided as a public service, not as legal advice to any individual. Be sure to speak with qualified professionals who can answer your questions, analyze your situation and give personalized advice.
Michael Goss and Adam Goss are the attorneys of Goss Law, a Greencastle firm that focuses on elder law.