Crisis Planning

Most elder law revolves around planning ahead. This means proactive planning for the future, considering events that could possibly happen, and ensuring that the client is prepared, with powers of attorney, protection for assets, and other legal documents in place. Unfortunately, not every potential circumstance can be foreseen. Not only can they not be foreseen, but some circumstances can also arise suddenly and put the aging individual in a precarious position, with their assets, their health, and their safety at risk. In these cases, Rhodium Law provides crisis planning services which can help to ensure that a client who finds themselves at the center of such a crisis gets the immediate assistance they require to protect themselves and their assets and wealth.

Crisis planning is the legal process of confronting a sudden, unexpected circumstance and determining how to handle it without jeopardizing the individual’s financial stability. The sudden and unexpected circumstance could be a medical emergency, a need for long-term care, or another unplanned financial burden unrelated to the individual’s health. While proactive planning involves considering potential futures, the reality is that there are only so many possibilities anyone can think of. No matter how well-prepared an individual is, or how detailed their plans may be, chances are they may still face a crisis that they could never have foreseen.

Unfortunately, a characteristic of a crisis is that it requires immediate attention and planning. This means handling the crisis requires quick thinking, firm decision-making, and a thorough understanding of the crisis the individual faces. While many individuals may be prepared to think fast and make decisions, understanding their situation may prove more difficult, particularly if they have never dealt with this type of situation before. Without this understanding, their reactive decisions may put their hard-earned assets at risk when this is not necessary.

In a crisis, both the senior citizen and their family are likely to feel significant mental, emotional, and financial stress. They need to make fast decisions and act immediately on those decisions. As everyone knows, decisions made under mental or emotional strain may often lead to regret later, as clearer thinking reveals other options that may have had a more positive effect.

By consulting with an elder law attorney in a crisis, seniors and their families can benefit from unbiased, clear thinking and legal knowledge. At Rhodium Law, we are committed to bringing compassionate, knowledgeable thinking to help our clients find effective solutions that both protect the client’s interest and provide peace of mind that when the crisis passes, they will stll have a secure future.

An unexpected change in health or other sudden financial burden can place a major burden on both the individual in need and their families. While the decisions made during a crisis are generally reactive and focus on effectively managing the imminent issues, there is also a primary goal of ensuring that the client and their family receive the care and support they need while maintaining the client’s financial stability. This is done by focusing on five key strategies: Medicaid planning, asset protection, powers of attorney and guardianship, emergency estate planning, and long-term care planning.

Medicaid is the most commonly used alternative for paying for long-term care. Medicaid does have eligibility and income requirements, and often, people misunderstand these requirements to mean they must be nearly or completely financially insolvent. However, while Medicaid does limit income and resources, there are legal ways to meet the requirements without fully depleting the estate. With the assistance of an experienced elder law attorney, individuals can restructure assets, set up trusts, and spend down their assets in ways that are in compliance with Medicaid rules and do not leave the individual or their loved ones destitute.

Typically, asset protection is a proactive strategy that is intended to shield an individual’s wealth from potential liabilities and risks and create a robust barrier between that wealth and unforeseen events such as creditor claims, debts, or lawsuits. In a crisis, it becomes paramount to protect the individual’s assets to ensure that the individual or their loved ones can afford necessary care without completely depleting their resources. As part of crisis planning, an elder law attorney can assist the client with establishing irrevocable trusts, transferring the ownership of certain assets to others, and utilizing financial products that are uniquely designed to preserve wealth. By taking these steps, an individual can protect their estate from being depleted for long-term care costs and ensure there is a legacy to pass on to their loved ones.

Powers of attorney are often established as a proactive measure to protect the individual before they are incapacitated. Guardianships are a reactive measure taken to appoint someone to handle the individual’s affairs when they have already become incapacitated without a power of attorney already in place. When a crisis arises, the individual may not be incapacitated initially or at all. However, establishing powers of attorney for their health care and financial affairs can ensure that should the situation change, someone has already been appointed to handle these matters. In cases where there are no powers of attorney and the individual is already incapacitated, an elder law attorney can assist the family in navigating the guardianship process to ensure the protection of the individual’s rights and interests.

Whether the individual needs to create an estate plan or the crisis has brought to their attention that they need to update it, an up-to-date estate plan that reflects the individual’s current wishes is vital in a crisis. For that reason, we offer expedited estate planning services that can assist clients in writing a will, establishing trusts, and designating beneficiaries. Our rapid response can ensure that the estate is properly safeguarded and the individual’s loved ones have peace of mind and clarity.

Many times, the crisis that occurs is health-related. When this happens, the individual may need long-term care or they may realize that they may need long-term care someday and are not prepared for the expense. In either case, an elder law attorney can assist with this critical component of crisis planning. They will work with the client to ensure the client has a comprehensive plan for long-term care that addresses such matters as in-home care, assisted living facilities, and nursing home care. They will assist the client in evaluating the available resources, exploring insurance and other payment options, and creating strategies for paying for long-term care without jeopardizing the individual’s financial security.

When most people create their estate plan, it is generally with thoughts of good health, a comfortable retirement, and a solid financial legacy for their loved ones. They create an estate plan with intentions of traveling, relocating to a smaller home or a state with a lower cost of living, or other plans. Unless they have a known, specific health condition such as heart disease, diabetes, or a history of strokes, many do not put much thought into long-term care. They simply assume that they will live a long and happy life and die peacefully in their sleep - a hope that we all probably share.

This type of planning results in an estate plan that is not prepared to handle the extreme stress of a crisis, particularly a health crisis that results in the individual needing long-term care. The strategy they originally had no longer applies and the estate plan must be dismantled to create a new strategy that takes into account the new need for expensive long-term care.

Consulting with an elder law attorney can be vital to avoiding the depletion of the estate’s assets. Many people mistakenly assume they either have too much money to qualify for Medicaid or too little money to pay for long-term care insurance or other options. With the right guidance from a knowledgeable attorney, individuals can protect their assets while finding a way to pay for the care they need.