Recently, your grandma hasn’t been herself. She was always a quiet and calm woman, but now she seems very unsettled. Whenever you visit she spends her time pulling dirty boxes out of the basement and distributing old clothes, toys, notebooks, and tools to you and your other family members. She has been talking a lot about “when I go.”
You know this change has been prompted in part by you grandpa’s death. Grandpa died two years ago, and in the last year Grandma has become obsessed with old pictures and stories. Her living room is full of cluttered memorabilia she has unearthed from the basement. While you’re interested in learning your family history, you’re concerned because it’s all Grandma wants to talk about.
She has also been worrying a lot recently. She worries about Uncle Bob and who will take care of him. She worries about Uncle Carl and his finances, and she worries that your mom will be left with the burden of caring for all these things after Grandma passes away.
You try to insist your grandma not worry so much, but one afternoon as she is napping you and your spouse see that she has brought up a big red binder marked “Estate Planning Portfolio.” You have been talking about setting up an estate plan yourselves so you look through the binder, perusing Grandma’s trust. These documents were signed three years ago, when Grandpa was first sick, and as you read them you become increasingly concerned. Perhaps Grandma is right to worry so much.
Legally speaking, things went smoothly after Grandpa’s death. However, things were much simpler after Grandpa died; all the assets were transferred to Grandma. You start thinking about what will happen when Grandma dies. The house, her finances, the car, the dog….all of these things will have to be divided equally among your mom and her two brothers.
This worries you. When Grandma and Grandpa first signed their trust your uncles were both thriving financially and physically. Since then, Uncle Bob has had a heart attack and now he needs medical care which he cannot afford without government assistance. If Uncle Bob inherited the assets as currently drafted, he would lose his Medicaid and his inheritance would all go to pay for his care.
Uncle Carl’s wife lost her job a year ago, and his family has been struggling to make ends meet on Carl’s salary. It would be terrible if his inheritance were lost to their creditors.
Grandma was also right about your mom. As the older sister, you know your mom would take responsibility for her brothers and use her inheritance to help Bob and Carl stay afloat.
You decide to talk with Grandma about her estate plan. You make a list of things to discuss with Grandma:
1. A Special Needs Trust for Uncle Bob
2. Asset Protection for Uncle Carl
3. Update who is to manage the assets if she becomes incapacitated or upon her death
4. Update who is to manage her healthcare if she becomes incapacitated
5. My Legacy Workbook (to preserve the stories and photos she keeps finding in the basement)
You know once Grandma has been in for a review with her estate planning attorney she will be able to stop worrying so much about her children, and will be able to enjoy her old age better. Also, once she has a workbook to keep old stories and photos maybe she’ll let you get a word in edgewise at the dinner table!
Not every family is like yours, and so every family’s conversation with their estate planning attorney will be different. But it is easy to call your estate planning attorney and set up a free trust review appointment. Once it’s done, everyone will feel much better.
Compliments of the Law Offices of Daniel O. Hands, P.C.
