Leaving your assets outright to your children is one of the major mistakes you can make. Using only a will is another. Finally, not avoiding probate is a serious concern.

1. Leaving your assets outright

Most parents want to leave something behind for their children when they're gone, but it's in your best interests not to leave those assets to your children directly. Consider using a trust, so you can have some control over when your children receive assets and how those assets can be used. Using a trust may also help your child avoid having to share the inheritance with his or her spouse.

2. Not having a will

A will is a necessity for many reasons, but the primary reason is because it's needed to avoid probate. A will also dictates your wishes with guardianships and other important decisions.

3. Not avoiding probate

No one should leave their children to face probate court when their will isn't complete or the estate isn't in order. When an estate goes to probate, the courts determine, based on state law, how to divide your assets and dole them out to your beneficiaries. This doesn't always work out in the way you would have liked and could be an added source of stress for your relatives.

It's difficult to make sure your estate is set up perfectly on your own, especially with frequently changing laws. Your attorney can help, so you can rest easy.

Source: Forbes, "7 Big Estate Planning Mistakes: Leaving Assets Outright To Adult Children," Bob Carlson, March 06, 2018

There is a good probability either you or someone you love relies on Medicaid. Therefore, it helps to separate fact from fiction. It is natural some myths have popped up because it is an extremely difficult field to understand. However, here are some of the most common misconceptions that persist regarding Medicaid. 

Myth #1: Medicaid is the same as Medicare

Perhaps this myth is due to the fact both programs sound similar, but Medicare is not a substitute for Medicaid. Medicare pays for health coverage for people over the age of 65 and people under the age of 65 who have disabilities. Medicare does not cover long-term care. Some people will require both Medicare and Medicaid. 

Myth #2: Medicaid is a national program

It is critical to understand Medicaid is not set up exclusively by the federal government. The federal government does share in part of the costs, but by and large, Medicaid is set up by each of the states. This is important if you have an elderly parent in a different state than the one you live in. You need to figure out the rules set forth by each of your states to ensure no one loses coverage. 

Myth #3: Everyone qualifies for Medicaid

There are many differences between Medicaid and Medicare. For starters, Medicare becomes available to practically everyone once they turn 65. However, the same does not hold true for Medicaid. The person receiving Medicaid needs to meet specific criteria, such as being unable to perform basic tasks such as bathing or dressing oneself. Additionally, the person needs to have a low amount in his or her savings account. Most people receiving Medicaid only have about $2,000 in savings. Medicaid is a safety net meant for the most vulnerable in society. 

Since you already have a trust or will, it's important to appoint the right trustee or executor. It's not as difficult as you may think.

First, you should consider someone who is not afraid to ask for help. Those who think they know everything about estate planning may be the same people who make significant errors. Choose someone who is willing to seek assistance when he or she is not sure what he or she is supposed to be doing.

Another thing to consider is how you know the other party. Is it a friend who lives close to you or someone who lives in another state? It's better to choose someone who is near you and able to administer your estate closely after your death. Additionally, choosing someone who is in good health helps guarantee that he or she will be available to take on the administrative duties when the time comes.

Finally, remember that you can change who you choose as an executor. There's no reason to think the person you choose today is the only person for the job years from now. Update your will and trust every few years, so it's up-to-date with your life and current needs. Our website has more information on what you should do if you want to update or create a will or trust now or in the future.

Financial abuse against elders occurs more often than you might think. According to the National Adult Protective Services Association, about one out of every 20 seniors become financial targets. The fact that many older citizens suffer from cognitive impairments or need assistance with daily living can make them easier prey. Your parent might become an unwitting pawn in a financial exploitation game in the following ways:

• A scammer posing as the IRS or a utility company might call and claim your parent owes them money and threaten to turn off the power or have your parent arrested if he or she does not pay immediately.
• Your parent might receive a letter or phone call falsely claiming that he or she has won the lottery and must pay a processing fee to receive the winnings.
• Door-to-door salespeople might speak to your parent about making “discount” home repairs, only to accept a deposit and then never return.
• A scammer might contact your parent by email, posing as a stranded or arrested child or grandchild pleading for money to get out of trouble.
• Your parent might be persuaded or forced under duress to give control of his or her bank accounts to someone whose only intent is to drain his or her savings.

Elderly people do not only face exploitation by strangers with criminal intent. In fact, most of the time it is a trusted person who ends up taking advantage of vulnerable seniors. For example, a family member, hospice caregiver or neighbor who is caring for your parent might falsely gain power of attorney or obtain access to your parent’s credit cards.

It may be difficult to think about, but if your parent begins to show signs of cognitive decline, it may be time to speak with an estate planning attorney about options to protect him or her.