By: Matthew M. Shafae, AttorneyLaw Office of Roy W. LitherlandThe future of Medi-Cal eligibility has been the subject of speculation for a little over a decade now. Will the California implementation of the federal Medicaid system, known as Medi-Cal, finally implement federal laws enacted back in 2005? And now, with a Republican president-elect and a Congress with a Republican majority in both houses, it appears Medicaid funding may be an additional topic for speculation. How will Medicaid … [Read more...]
Special Needs Trusts: Two Words to Say Fairness
By: Matthew M. Shafae, AttorneyLaw Office of Roy W. LitherlandSpecial Needs Trusts (also called Supplemental Needs Trusts) are specific types of trusts that allow a disabled person to be the beneficiary of a trust while not interrupting his/her eligibility to receive government assistance. Without a Special Needs Trust, persons with disabilities risk losing government benefits if they receive an inheritance, a personal injury award, or receive other funds.In 1993, the Omnibus Budget … [Read more...]
Exclusion of Gains from Sale of Personal Residence
By: Justin M. Kennedy, AttorneyLaw Office of Roy W. LitherlandI spoke with a client, William, the other day who shared that he purchased his home many years ago for fifty thousand dollars ($50,000). That same home is now worth an estimated one and a half million dollars ($1,500,000). If the home was sold today, the capital gains taxes would be calculated on the difference between the sale price ($1,500,000) and the basis in the property ($50,000), for a taxable gain of $1,450,000. At the … [Read more...]
Clayton Trust – The Advantages of the B-Trust
By: Justin M. Kennedy, AttorneyLaw Office of Roy W. LitherlandPrior to 2014, for married clients with estates valued at over one million dollar ($1,000,000), our office often recommended ABC Trusts. This trust structure was used to preserve the Deceased Spouse’s estate tax exemption. For much of that time, there was a one million dollar ($1,000,000) estate tax exemption. Utilizing the ABC Trust structure allowed you to double that, to be able to pass two million dollars ($2,000,000) free of … [Read more...]
Litherland Law Office 2017 Government Policy Forecast
By: Matthew M. Shafae, AttorneyLaw Office of Roy W. LitherlandElections have consequences. On January 3, 2017, the 115th United States Congress met for the first time, with both houses controlled by the Republican Party. On January 20, 2017, our Republican president-elect will be sworn in as President of the United States. For the first time in a decade, two branches of our federal government will be controlled by one political party. And this president will also have the opportunity to … [Read more...]
Advanced Medi-Cal Triggers – Spousal Election
By: Justin M. Kennedy, AttorneyLaw Office of Roy W. LitherlandWhile at an estate planning conference in November, one of the speakers discussed a planning strategy that may benefit many married couples. The planning strategy involves adding Advanced Medi-Cal Triggers to a married couple’s estate plan, specifically a Spousal Election to the Living Trust and testamentary special needs trust language within the Pour-Over-Will. For a married couple, upon the first death, the Spousal Election … [Read more...]
Transfer on Death Deeds
By: Justin M. Kennedy, AttorneyLaw Office of Roy W. LitherlandIn 2016, the State of California introduced a new Transfer on Death Deed (TOD Deed). When the TOD Deed was first announced, we advised our clients against using it. One of the many reasons against using the TOD Deed is that the property could be subject to a Medi-Cal Estate Recovery claim upon the owner’s death. As of January 01, 2017, so long as the TOD Deed has at least one living beneficiary upon the owner’s death such that … [Read more...]
What Happens to a Living Trust when a Spouse Passes Away?
In this blog article, we will address the issue of living trusts as they apply to married couples and what happens to the trust upon the passing of the first spouse.First, we will review the value of living trusts in general.Many people assume that a last will is the best choice when they are planning their estates. They believe that trusts are only useful for those who are very wealthy. However, this is not entirely true. While there are trusts that are utilized to meet the objectives … [Read more...]
Protecting Your Family in a Digital World
By: Justin M. Kennedy, Associate AttorneyLaw Office of Roy W. LitherlandWhile at a national conference, I heard a seminar on how to protect your family in a digital world. What follows are some of the tips and strategies provided by the speaker, Jeff Lanza, a Retired FBI Agent, on how to better protect yourself and your family:1. Do no click on links in emails from unknown senders.2. Even if you know the sender, you should be cautious before clicking links, as the sender’s account may … [Read more...]
Commonly Asked Medi-Cal Questions (An Elder Law Today Blog)
Q: Once I qualify for Medi-Cal, will the quality of long term care I receive be sub-standard?A: No. It is illegal for a long term care facility to discriminate against someone receiving Medi-Cal benefits. By law, Medi-Cal patients are to receive the same level of care as private pay residents.Q: Is a married couple always required to spend down one-half of their assets before qualifying for Medi-Cal?A: Not always. In fact, often times couples have over $100,000 and qualify … [Read more...]
