Power of Attorney Did Not Grant Power to Create a Trust
How can someone create a trust? It seems like a trick question. In Arizona, someone can create a trust by signing a trust document, transferring assets, or by making a will with trust provisions. Arizona even permits someone to just declare a trust exists. But can an agent under a power of attorney create a […]
Medicaid Reimbursement Claim Must Be Filed in Time
If a person over age 55 receives long-term care from Medicaid the state may make a claim against their estate. The Medicaid reimbursement claim may seem like a pointless thing. After all, in order to qualify for Medicaid benefits the patient must be impoverished. So why would they have a probate estate anyway? A Medicaid […]
A Spendthrift Trust Might Be Reachable by Creditors
The whole point of a spendthrift trust is to protect the trust’s assets from the beneficiary’s creditors. The name hints at the purpose: the point is to protect someone who can’t control spending. Even if the necessary protection is from himself or herself. Generally, a spendthrift trust can work very well for its intended purpose. […]
Ambiguous Residuary Clause in Will Causes Difficulty
Your will should accomplish at least three simple things. It should identify who will manage the estate (the “personal representative”, in Arizona). The will should identify individual items, dollar amounts or percentages that are to go to particular recipients. Finally, the will should include a “residuary clause” — a statement about who will receive the […]
Even Without State Statute, Court Approves Trust Decanting
VOLUME 24 NUMBER 18 When a trustee transfers assets to a new trust with the same beneficiaries (but different terms), it is often called decanting. “Decant” is an analogy: the trustee is, in a sense, pouring trust assets from an old vessel into a new container, and improving the quality of the trust in the […]
Husband’s Interest in Trust Not Divided in Divorce Proceedings
AUGUST 22, 2016 VOLUME 23 NUMBER 31 Carl and Debbie (not their real names) were married, and have two children together. After more than a decade together, Carl filed for a divorce in their home state of Massachusetts. In the course of the divorce action, the court was required to divide Carl and Debbie’s assets […]
Conservator’s Accounting Approved in Contentious Proceeding
APRIL 11, 2011 VOLUME 18 NUMBER 13 The Montana Supreme Court identifies him as “J.R.” to protect him from public identification, but it is possible to get quite a feeling for him, his family and the two different conservators appointed to handle his finances. In 2006, when the legal proceedings started, J.R. was 78 years […]
Reverse Mortgage Danger Signals
SEPTEMBER 13, 2010 VOLUME 17 NUMBER 28 This week’s Elder Law Issues addresses a problem that is increasingly common in the senior community: the aggressive sale of reverse mortgage arrangements to homeowners who may not really need or benefit from such a financing technique. We saw the following list of danger signals for reverse mortgage […]
Why Do I Have To Complete That Darned Questionnaire?
MAY 31, 2010 VOLUME 17, NUMBER 18 You have made your appointment to discuss estate planning. Our office has sent you a reminder letter, an explanation of what will happen when you get here, a map with parking instructions — and an 8-page questionnaire, asking for all sorts of details about your family, your assets […]
