On the surface estate planning can seem like a purely financial endeavor. However, most senior citizens experience a gradual decline before they pass away. You are generally not completely healthy one day and dead the next.

There are certain contingencies that you face as you grow older, and comprehensive estate planning involves addressing these possibilities. This can be done in part through the creation of a revocable living trust.

The vehicle of asset transfer known as the revocable living trust is typically utilized as a probate avoidance tool. Probate is a legal process that enters the picture when you pass away in direct personal possession of property that you want distributed to your heirs.

If you just hold onto everything that you own and direct the transfer of these assets to your loved ones in your will property that is deemed probate property must pass through this process.

It can be time-consuming, and it can be costly. Plus, anyone can access the probate records and know everything about your final affairs.

When you digest the above you can see why people sometimes choose to avoid probate.

Another thing that makes revocable living trust so attractive is the fact that you can include an incapacity component. If you were to become incapacitated as a senior citizen there would be the need for a representative to make decisions in your behalf.

The state can be petitioned to decide who will make financial decisions in your behalf once you are incapacitated. If that’s doesn’t sound so appealing, you can create a revocable living trust and name a disability trustee.

This successor trustee that you are comfortable with would be empowered to handle the trust should you become incapacitated at some point in time.

We are grateful you follow us and value your comments and input.  You Can Also Find Us Online: Facebook | Twitter | LinkedIn Thanks again.

Ryan M. Denman and Dennis D. Duffy

Duffy Law Office

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Nobody wants to be placed into a difficult situation at any time, but if you knew that a distinct possibility existed that you could face a challenge you would probably want to plan ahead to the best of your ability.

With the above in mind you would do well to understand the widespread nature of Alzheimer’s disease among our nation’s elders.

The Alzheimer’s Association website is a good source of information about the disease, and the New York Times has also published an in-depth report that is invaluable for people looking for information about Alzheimer’s disease.

There is a lot of information to digest if you want to research the topic, but one thing is clear: Alzheimer’s disease strikes a high percentage of senior citizens.

Once you reach the age of 85 there is close to a 50-50 chance that you will have Alzheimer’s disease. The disease strikes one out of every eight people who reach the age of 65.

Given this reality you must plan ahead intelligently if you want to be comprehensively prepared for the future. This is going to include the execution of durable powers of attorney empowering individuals of your choosing to make decisions in your behalf should you become incapacitated.

Many people who suffer from Alzheimer’s disease require nursing home care, some for extended periods of time. This care is very expensive, and Medicare won’t pay for it. This is another consideration.

Our firm can help you prepare for the possibility of incurring these expenses while assisting in the execution of the appropriate incapacity planning documents. To schedule a consultation simply give us a call at (563) 445-7400. You can also request an appointment electronically by clicking this link: Davenport Estate Planning Consultation

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Making false estate planning and elder law assumptions based on incomplete or inaccurate information can yield significant negative consequences. In an effort to help our readers steer clear of some future difficulties we would like to take a look at the top three false estate planning assumptions.

False Assumption #1: I don’t need an estate plan because I am not rich.

This is a very common notion, but it is completely false.

It’s rather difficult to make it through life without earning any money, and a very high percentage of Americans own homes and have some savings. According to the Investment Company Institute, in 2011 51 million workers in the United States were active participants in 401(k) retirement savings plans.

If you are a childless orphan with no extended family or friends and you are penniless and living in a cave in the forest perhaps you don’t need an estate plan. However, if you’re like most ordinary Americans you do indeed have something to leave behind to your loved ones.

False Assumption #2: I don’t need to plan for possible incapacity because it is very unlikely that I will ever become unable to make my own sound decisions.

Alzheimer’s disease alone makes incapacity planning a must, and Alzheimer’s is not the only cause of incapacity. The Alzheimer’s Association tells us that around 45% of people who are 85 years old and older suffer from the disease. This is the fastest-growing age group that we have here in the United States.

False Assumption #3: I can plan my own estate using forms that I download off the Internet.

While you can download forms off the Internet and fill in the blanks, should you do so? If an estate planning attorney tells you that this is probably not a good idea you may question his or her motives.

However, last year the trusted and objective magazine Consumer Reports probed DIY estate planning with the assistance of three prominent legal professors. They stated that you’re far better off working with a licensed attorney if you want to make sure that your estate plan is properly instructed.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

The Terry Schiavo situation created a stark image for many people and drove home the point that if you do not want your life to be sustained artificially, then you need to create the legal framework for that ahead of time. The news gave many people the inspiration to create Living Wills. However, it is just a few years later, and those Living Wills might no longer be very effective.

Medical technology is rapidly blurring the lines between what is a terminal condition with no chance of recovery and what isn’t. Living Wills tell doctors what not to do if you have such a condition. However, the technology is developing so quickly that doctors cannot easily make the judgment call today. New technology often creates a glimmer of hope for recovery, however slight.

If you have a Living Will, you should review it with an attorney to see if there is a way that you can make it effective in the face of advancing technology. You should also create a Health Care Power of Attorney so that a trusted person can make medical decisions when you are not able to do so. Tell him or her what you wishes are in different scenarios, so that those wishes can be communicated when the need arises.

We are grateful you follow us and value your comments and input.  You Can Also Find Us Online: Facebook | Twitter | LinkedIn Thanks again.

Ryan M. Denman and Dennis D. Duffy

Duffy Law Office

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

If your beneficiary has a substance abuse problem, an inheritance may make the addiction worse or even kill them.  At the least, the inheritance is likely to be squandered.  If your beneficiary has an addiction such as drugs or alcohol, pass the inheritance in trust, never outright.

How Outright Inheritances Work

Outright gifts pass into your beneficiary’s individual name.  They are within your beneficiary’s full control, to be spent any way he deems appropriate.  This may mean that the inheritance is spent on drugs, alcohol, or “friends.”  Outright windfalls such as inheritances are typically gone within 18 months.

In addition, an outright inheritance can be seized by creditors in divorce, bankruptcy, malpractice, car accident, and medical crisis law suits.

How Inheritances in Trust Work

Inheritances in trust for a beneficiary, who has a substance abuse problem, are not given directly to the beneficiary.  Instead, an independent professional trustee makes distributions for the beneficiary’s needs, but not to the beneficiary directly.

The trustee may pay the beneficiary’s medical bills, rehab costs, tuition, landlord, grocery bills and the like.  The money doesn’t go into the beneficiary’s hands so it’s not used to fuel an addiction.

In addition, the inheritance in trust is protected from divorce and lawsuits.

If you have a beneficiary who suffers from an addictive disease, consult with a qualified estate planning attorney to protect both your beneficiary and your money.

We appreciate you following us and value your comments and input. Please provide your thoughts by using the comments section on our blog page.

You Can Also Find Us Online: Facebook | Twitter | LinkedIn

Thanks again.

Dennis D. Duffy

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

You can make health care decisions ahead of time and one important medical choice is whether or not to have a living will. Just about 99% of our clients choose living wills when we explain the truth about living wills.

Is a living will right for you? It’s up to you to decide. Here’s the truth.

• A living will document is designed to avoid medical heroics such as life support machines.
• A living will is an advanced medical directive, meaning that you are providing or withholding informed consent for a later time.
• A living will allows you to stay in control.
• A living will is designed to keep you comfortable but not to artificially extend your life.
• A living will is only effective if you are in an end-stage medical condition, irreversible coma, or persistent vegetative state.
• A living will is only effective if it’s in writing and your treating doctor has a copy of it.
• A living will can not be overturned or disregarded by your medical power of attorney agent(s.)
• A living will removes the burden of having to decide whether to “pull the plug” from your loved ones’ shoulders.
• A living will may avoid family discord, in the event family members disagree as to whether life support should be continued.
• A living will may prevent your estate from being squandered on useless medical procedures.

If you have questions about livings wills, consult with a qualified estate planning attorney.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Living probate occurs when an individual becomes disabled and doesn’t have a comprehensive up-to-date estate plan in place.  “Disability” means that the individual cannot handle his or her finances and daily business affairs.

A comprehensive up-to-date estate plan includes a financial/general durable power of attorney, health care power of attorney, living will, and HIPAA release.  It may also include a revocable living trust.  In addition, if you have minor children your plan should also include a stand-by guardian designation and first responder authorization.

If you don’t have the legal documents in place that you need, a living probate is necessary.  Living probate is a court guardianship process; in some states that process is called “conservatorship.”

Living probate is a loss of control because the court takes over your finances.  The court freezes your assets and the appointments a guardian, which may or may not be a family member or someone you know.  The court may appoint a stranger, a local attorney to be the guardian/conservator.

Living probate is expensive because it’s a court supervised process and the guardian/conservator has to report back repeatedly to the court and seek permission for actions.

In addition, living probate is public, which means that anyone can witness the testimony describing why you should be ruled incapacitated.  For example, a social worker, family member, or medical professional may testify that you don’t know the day of the week, you don’t recognize family members, you get lost driving or walking home, you are violent when you get confused, you can’t pay your bills, and the like.

Living probate, the guardianship or conservator process can be avoided if you have the right estate plan in place and your trusted helpers (i.e. successor trustees, health care agents, financial power of attorney agents, and stand-by guardians for minor children) know about it.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

You have sought effective legal advice and created a valid and legally binding living will with the assistance of your attorney. Your living will contains instructions to your attending physician that in case you become terminally ill, your wishes are to decline life-sustaining medical procedures.

In Iowa, a life-sustaining medical procedure is one that requires medical intervention to prolong the process of dying while terminally ill or to restore your necessary bodily functions or vital signs. Without medical intervention, you will surely die. Examples of life-sustaining procedures include medically resuscitating equipment that uses artificial or mechanical means to restore your vital functions. In 1992, the Iowa legislature included feeding tubes designed to provide your body with necessary nutrition and hydration to keep you alive. 10 years later, the Iowa legislature what procedures are defined as resuscitation procedures. These include using any medical means to sustain, restore, or supply your vital functions. They include defibrillation, emergency chest compressions and intubation to deliver hydration and nutrition. The legislature also included cardiac restoration drugs intended to resuscitate you during cardiac arrest.

However, the term “life-sustaining” does not include medical procedures that are not delivered to resuscitate your vital signs but merely delivered to alleviate your pain or provide you with comfort during a physically painful condition.

If you do not have a living will or advance directive, then under Iowa law, your doctor can make medical decisions before at least one other witness, in participation with certain individuals. The individuals who can participate in decisions regarding medical treatment during a terminal illness include an individual with a power of attorney to make healthcare decisions, a guardian appointed by court, your spouse, your adult children, your parents or adult siblings. Iowa law follows an order of precedence giving respective priority to these individuals. As such, you should understand the statutory order of precedence by contacting our office or another Iowa attorney specializing in this area of law.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Not to be confused with a living trust, a living will is a written document that allows you to control medical decisions for your medical treatment if you are unable to make those decisions. Referred to as a “living will,” the document allows you to control your medical decisions if you are no longer capable of making those decisions due to mental or physical incapacity. Also known as an “advance directive,” federal law requires hospitals and nursing homes to notify you of your rights to execute a living will to help you during a terminal illness or disability.

Because of the legal complexities and seriousness of living will directives, you should seek advice from an Iowa attorney familiar with the Iowa laws regarding legally binding advance directives or living wills.

State laws govern the legal requirements to create a valid living will. You can create a living will in Iowa if you are at least 18 years old and mentally competent to create one. You must sign your living will or advance directive in front of a notary or two independent witnesses who are each at least 18 years old. If you can find two witnesses who are not family members, it is better to use those two independent witnesses. Your physician or other healthcare provider cannot serve as a witness. Your witnesses or notary must also sign your living will in your presence. You must be able to sign your living will voluntarily. This means that you cannot be under duress, under the influence or mentally incompetent. You must know that the document that you are creating and signing is your living will affecting your decisions regarding your future medical care.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Once you create your living will with the assistance of an Iowa attorney with specialized knowledge, your attending medical physician or other healthcare professional should know of its existence. You are legally responsible for giving it to your doctor to notify him of your medical wishes if you become too ill to make them.

Your living will can contain specific instructions about which types of medical treatments are acceptable to you. You can specify life-saving measures that physicians may take to save your life during a terminal illness. You may also specify which types of medical treatments you do not want in case of a terminal illness or during the dying process. If you do not want physicians to use any life-prolonging or life-sustaining medical treatments, you must specify your wishes in your living will.

Under Iowa law, a medical illness is terminal if your attending doctor decides it is. An independent physician must substantiate your attending physician’s diagnosis of the existence of a terminal condition. They must memorialize their decisions in writing for your medical records. A terminal illness is one that is medically incurable without other life-sustaining medical procedures. If a doctor cannot keep you alive without medical intervention, your illness is terminal. If your condition is irreversible and will lead to death without medical intervention, your condition is terminal.

Once you present your living will to your physician, your physician must act upon it and comply with your healthcare instructions if you become unable to make those decisions.

If you are mentally able to make other decisions that are contrary to your directives within your living will, you must be able to make them. For example, if you decided to instruct doctors to withhold life-saving medical treatments during a terminal illness, and you suddenly change your mind while you are dying, you must be able to change your mind if you are still mentally competent.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.