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hey everybody looks like relapsed Oh still got a few minutes to go I'm gonna go get a bottle of water and I'll be back so in the meantime if you have any questions feel free to type them in and I'll be back in a minute yeah hey if you can hear me give me a thumbs up or some kind of message swear I'll know that you can hear me speaking into my blue ball SoCo or whatever it's called all right okay just doing a little test here on the audio looks like we're we're in pretty good shape there give it a couple more minutes [Laughter] all right good looks like everything's all the technology the Wi-Fi is working great got my phone here so where I can read off some of the core all the questions that people ask me by email of also on the YouTube community tab we had a few people ask some questions there I'll get to all of those of course you can I guess ask in the live chat I'll be checking on that all right I got 11 o'clock straight up so let's get started and um all right so let me just kind of go over what we're doing here Wow is all I can say it's been been complete craziness out there you know as as well as I do I've been you know sitting at home watching the news I'm actually streaming this YouTube live from from my office and because just we have a couple of people who wanted to get some you know some stuff finished up and get some estate planning stuff signed and in place it was scheduled to take place today and I was scheduled you know weeks ago so we're gonna finish that up then we're gonna be you know heading home and complying with our Louisiana governors stay at home order really until April 13th unless we get get notice that that changes so from an office standpoint we're you know there's there's three of us and we'll be working remotely and checking the voicemail messages and our business is kind of conducive to to be in it being able to work virtually so but it is gonna be very different so we'll see what the future holds I know that you know some some people are worried you know as you know I here in our state we're seeing something like that last report 800 something plus coronavirus cases most of them in the in the New Orleans area I think has been 20 deaths in our state and then we're seeing you know New York City get hit really hard much less Italy and all those other countries that are getting hit so it's really a scary time from an estate planning side I mean they even you know I I don't know the thoughts been going through you know everybody's mind what if with or what happened to me what if what if I got sick you know even worse what if you know what if this thing were to get me and I were to pass away is there anything I should be doing just here at the last minute to you know prepare myself for that so we'll be talking a little bit about that answering questions in general I really have no agenda for this YouTube live and so just just like I put out in the communication just you know let's talk so but I do think while we're here I'm gonna give you some basics and answer a bunch of questions that have already been asked I think it should be educational for everybody and for most of you heck what else are you gonna be doing sitting at home except maybe watching The Price is Right all right so let's first go over I want to while we have everybody I want to go over where you can get more information some of you are aware and some of you have probably watched one or more of them but I've been putting out a lot of effort in the lasts well really about the last three or four years but really in the last three or four months been hitting it hard making all of these YouTube videos you're watching this live stream on a on a YouTube platform I've made about right now I think 390 YouTube videos most of them last anywhere between 5 minutes and 15 minutes long and I've made them on a multitude of topics so if you know after this whatever we call this thing this YouTube live you want to go find out more or maybe all your questions didn't get answered go check out the YouTube live it's under a channel called Rabelais estate planning LLC if you put in my name Paul Rabelais or just type in whatever your question is in the search bar under YouTube my videos will likely pop up I don't think any other estate planning attorney has put out malarious or has been watched more on on YouTube other than me so you know in questions related to wills and trusts and powers of attorney and probate and executor 'z and nursing homes and Medicaid and lawsuits and who should I do this who should I leave it to how do I leave it to these people all of those things that I see on a dated day to day basis I've made a video on on all of the common stuff and so you you know feel free to go check that out it's free and in fact a few people in the comments if you look through the comments to some of those videos you'll see where several people have said that they've been watched my videos I laugh every time I read that so but no it's a resource there for you to use by all means use it and then quite frankly if you want to you know subscribe to the channel that would be great give it give various videos the thumbs up constructive comments and the comments section those are awesome everybody benefits from that so use that as a resource another resource to get more information I have written a book it's called estate planning in Louisiana it's on Amazon it cost $20 it's starting to get a little outdated although not much has changed in the I guess it was maybe 2016 was the last edition I put out it was the fourth edition and I know that our estate tax laws have changed you know significantly since then other than that all of the kind of basic stuff really hasn't changed much so it's getting a little outdated probably due for a fifth edition coming here in 2020 or 2020 I still say if you want education go to the go to the YouTube videos they're free alright next thing I want to go over is I'm gonna just jump on some questions because I wanted to do I was gonna spend a few minutes talking about you know if you're know if you got nothing and you're worried all the health care stuff the living will the health care power of attorney all that some will or trust you know in the short term can can get you through some immediate needs I'm gonna come back to that to that in a minute and really focus on some of the questions alright so let me let me just hit these right here and some of these questions you're saying because they're on the live chat so Bob wrote Medicaid recovery is that at risk upon death or still exempt so before I answer any questions there's two things that make me a little bit queasy one is that estate planning rules can vary from do they do vary from state to state so I work in Louisiana help our Louisiana clients I've helped several thousand but laws vary from state to state and and so I I'm just giving you my disclaimer you know take what I'm about to tell you with a grain of salt if you're calling from a different if you're watching from a different state it may be different I'm gonna try to point out your state may be different but here's what it is in my state you need to check with someone in your state so it kind of concerns me when I'm answering questions that where the answers can vary based on where you live the other thing I'm a little worried about is you know when I've already had some questions from specific you know clients that we've served and they ask a question maybe about their particular situation and their documents without me doing any research and kind of the best I can do there is just answer questions in general without doing all the research going back and reviewing my notes looking at all the documents that we prepare it so I'm gonna do my best but I want you guys to realize that I'm just kind of shooting from the hip here but I'm gonna do the best I can alright so question for Bob 401k Medicaid recovery is that at risk upon death or still exempt alright so this is one of those state issues here in Louisiana a 401k or an IRA from a standpoint of is it a countable and I know you asked about Medicaid recovery I'm gonna get to that in a minute but here in my state IRAs 401ks are a countable resource so if a single person has a 401k or an IRA and it's valued at $100,000 and they go into a nursing home and the countable resource limit is $2,000 they won't be eligible eligible for Medicaid until they spend that IRA that 401k down of course I'll have to take it out pay the pay the taxes maybe even pay the penalties if they're young and and spend that money until it gets down to $2,000 before they even qualify for Medicaid in Bob's case the question really was is and let me go back on the countable resource side I know that some other states have provisions and their Medicaid regulations that say if the IRA or 401 K is is in pay status meaning that Medicaid applicant is getting you know required distributions then I think it's it's not a countable resource if you're in another state and want to chime in feel free and then there's the question about a state recovery for those of you who the state recovery is it might be common for example when you have a married couple only one of the spouses goes into the nursing home that couple can have about a hundred and thirty thousand dollars of countable resources or less and the one who's in the nursing home would qualify for Medicaid the rationale there being the one who's staying at home needs something to live off of so they allow that couple to have about a hundred and thirty thousand dollars and then let's say the one who's in the nursing home qualifies for Medicaid Medicaid pays the nursing home expense and then after both spouses die Medicaid has it's estate recovery rights which allows Medicaid to take assets from the estate to pay Medicaid back for medicaid spent on the nursing home you know residents nursing home care now in again in our state of Louisiana Medicaid only has rights against the the probate estate or against the succession as we call it in Louisiana and that 401k unless it's payable to the state form 1k likely payable to you know individuals who were designated beneficiaries so in our state in Louisiana under our rules the state couldn't go get someone's IRA or 401k after they died that had designated beneficiaries because that asset was not a probate or succession asset which are our state's Medicaid estate recovery rights say that they can only pursue those succession assets all right so that was kind of high in there and I hope you're staying with me and and keep staying with me and keep bringing those questions on I've got questions on the live chat and I've got questions on the phone I'm gonna get to here in a second all right Wyoming is in the house all right great why I've helped some friends get a trust set up using a lot of your thoughts thanks so much Wow very good Ron thank you so much from Wyoming I never even dreamed someone from Wyoming where would watch my stuff so when you say you've helped some friends I guess you're just kind of a late person help and some others but you're smarter than them now that you've been watching my videos I guess so thank you Ron for tuning in all right let me get to I might get to my email questions and I'm gonna get to my YouTube community tab questions okay going back to there's three or four questions that I got by email once I put this out all right here's one so it says you know last week your video concerned who is responsible for repairs when a use of fracture weary occupies a house again a usufruct is a Louisiana term only if you don't live in Louisiana you're gonna say what are you talking about even if you do live in Louisiana you might say what are you talking about by the way I have a video that's titled what is a use of front you can look that up on YouTube I did not see anything regarding who is responsible for insuring the house and the contents the naked owners or the use of February our trust contains how you start until that but there's no mention of who is responsible for what please address the insurance issue in your live broadcast tomorrow okay so there's not there's a lot going on there so I guess I'm gonna start with the fact that it is it is not typical for people to have for example a trust and then say when one dies that surviving spouse for example has the use of rucked they they very well may have accomplished the same thing by using trust terms like the surviving spouse is the income beneficiary for life something like that so that's typically what we see when we use a trust we don't use the word use of Proctor we use other words and generally the result is maybe a spouse dies grants that surviving spouse through the trust you know that ability to to use the deceased spouse's share of the trust assets with the ability to may even make distributions to the surviving spouse from the deceased spouse's share of the trust for the surviving spouses health education maintenance and support to answer the question if if there's a house in a trust and rights are given to the surviving spouse or someone to continue living in that house for the rest of that person's lifetime it's going to be typically the deceased spouse's assets that are going to be used to maintain insure that house it certainly wouldn't be the responsibility of what I'll call the principle beneficiaries you know who's going to get that house after both spouses pass away so in a typical scenario it's the surviving spouse who has the right to live in the house in and the surviving spouse can use the assets of the deceased spouse to maintain insure that house now we do have a question and I mean in there talked about contents you know contents are different from house so maybe in the when the when the first spouse dies it could be possible that that spouse left ownership of the contents to the surviving spouse and in that case then the surviving spouse is the 100% owner of all of those contents and so you know there's it's going to be you know a surviving spouse or whoever the owner is of those contents can do whatever they want a lot of mouthful there so the deal is when you have a trust you're probably not leaving Yousuf Rock usufruct is more commonly used in a will where a spouse leaves usufruct of their real estate to their surviving spouse and then when the first spouse dies we've got to go through the probate to establish the surviving spouses use defrocked oftentimes to eliminates probate put the assets in a trust use words other than usufruct with which give that surviving spouse the right and certain in certain cases the obligation to live in insure maintain that home alright so that was another mouthful all right let me go back to chat here okay so Dee wrote what about the new IRA and 401k rules for children having with money in ten years so thanks D for that that's you know all about the secure Act which was passed in late December and took effect far for IRA owners who died on January 1st 2020 moving forward so I'll touch on that under the old rules first of all the age where required distributions must begin has been pushed back from 70 and a half to 72 and the rules that apply when you leave your IRA to your spouse haven't changed that money goes into a you know husband dies with a half a million dollar IRA names his wife as the primary beneficiary he dies it goes into an IRA that she owns and those those rules haven't changed but when the wife dies and she has her three children for example as the beneficiaries to receive the IRA when she dies those rules have changed significantly under the old rules if the wife had died before January 1st of this year the children could take required distributions over their remaining life expectancy so if there were 40 when mom died the kids starting the next year could take distributions probably well for their remaining life expectancy which could be for another 40 or 50 years but under the new secure act the children must take all of those taxable distributions within 10 years after mom dies so it just it in some cases speeds up how quickly the IRA must be distributed you know in a you know with taxable income to the children after that surviving spouse dies often it isn't a case because we joke around t
e office you know the biggest question the kids seem to have is is do we take the money out before they bury mom or after that after we bury mom so you know with with inherited money I know this is not the case in all cases but inherited money just you know it isn't it doesn't earned money and often it isn't appreciated yes the ones who have a lot of careful planning and forethought those kids often do take those distributions over their life expectancy but now they'll be forced to take them out over ten years there is a bit of a delay because a child could wait until the tenth year to take any distributions and take it all out ten years later so there is even more opportunity to defer the start of the distributions but it's all going to come out in ten years okay so thanks for that question Dave let me go back to the questions here good another good question we get this from time to time what are the implications if a couple who created a trust together divorce alright so again there's all kinds of different trusts there's all kinds of different state rules but let's talk about the typical scenario john and jane they're happily married they set up a trust they put all their assets in their trust and their trust says you know when one of them dies things are for the surviving spouse after they both pass away things are for the kids think so much the reason they did at rustics because they didn't want the surviving spouse or the kids to have to go through you know the court process of getting an estate settled when assets are in your name when you die assets in the trust avoid Allah alright and then but after they set it up they get divorced so most trusts and you'll have to look at the language most trusts say that that at least here in Louisiana we live in a community property state so couples own community property married and the spouses may each own separate property and typically when assets are transferred into a trust like that they retain their community or separate property status although there is there is the possibility that a spouse may have separate property let's say they inherited a hundred thousand dollars in a bank account and the minute they get it it's their inherit and it's their separate property but if they commingle those funds with other funds that they have with their spouse it's likely to become community property and so even in a trust if separate property gets commingled with community properties like them likely to be commingled so when that couple gets divorced they likely you know split the community property and then the spouse if a spouse had separate property and the trust that spouse would would you know that that property would be removed from the trust and owned by the spouse who put it in the trust as their separate property so that's a good question thank you for that question moving on here all right okay so in a minute I might answer a couple more questions I might go back to kind of your oh my gosh I'm stuck for three weeks I got no I got no estate legal affairs in order what do I do do I do anything do I do nothing or is there something I can do quickly I'm gonna get to all that in a minute alright but going back to a couple of more questions got several kind of ten part question here okay but most of them are gonna be fairly quickly answered but they're all good questions okay and so says mr. Rabelais thank you for doing this I as well as many others your expert guidance on estate planning I am still not certain that I have a good understanding of fully funding your revocable living trust we get a lot of questions about what is trust funding mean or what does it mean to fund a trust we get that a lot I have the following situations and wonder if the items that have beneficiary is defined or in proper order looks like it's somebody from Louisiana because they talk about their primary residence and put in quotes Louisiana but let me go through the list here and a bunch of these questions can be asked answered with one answer so the the first four things that types of assets that they asked about were IRAs they were IRAs that had different types of underlying assets in the IRA account but one was IRA indexed annuities have beneficiaries define IRA brokerage accounts have beneficiaries define IRA rates have beneficiaries defined IRA managed investment fund accounts have beneficiaries defined okay so every IRA the IRA owner when they established the IRA account they in in 99.9 percent of cases unless there's just a screw-up they designate beneficiaries of that IRA whether the underlying assets in the IRA are annuities stocks managed investments REITs it doesn't matter there's going to be a beneficiary name and as long as there's a beneficiary named all that stuff those IRAs don't need to go into the trust don't need to be retitled into the name of the trust funding a trust means titling assets that are in your name that need to go into the trust is funding the trust you know another word for that is retitling the trust or retitling the assets into the name of the trust but an IRA really it can't be owned by a trust an IRA has to be owned by an individual yes a trust can be named as a beneficiary of an IRA but the iyer and an IRA owner can't transfer their ownership interest to a trust so it is it is not typical to fund a trust with an IRA so that answers the first bullet for the next is talks about a this one here you know everything seems to get tricky but this is where it gets tricky non IRA managed investment fund account have beneficiaries defined okay so many people own their retirement savings in their IRAs and you know many many retirees at the brokerage institution they have their IRA perhaps it's a traditional or Roth or both and then they also have a caller the non IRA call it an individual brokerage joint brokerage account that's that's a separate account that's not part of their IRAs and their IRAs have beneficiaries so this separate non IRA account here's where it gets tricky in many other states outside of Louisiana they allow you to make certain designations on those non IRA accounts Tod transfer on death so John has a non IRA account in his name transfer one death to his two children fifty percent each here in Louisiana though Louisiana law doesn't recognize those Tod transfer on death designations joint tenants with rights of survivorship designations that virtually every other state honors so here's where it gets tricky some of the national brokerage firms will permit its Louisiana customers to title their non IRA brokerage accounts and include that Tod designation on there however when you die you know if your trust beneficiaries because you have a trust and you're asking the question about about funding your trust if those trust beneficiaries are different than the people that you designate as beneficiaries on that transfer on death form there could be a potential problem so we do think that you ought to retitle those non IRA as you call it managed investment fund account you know fund that in your trust or retitle it so that the title of that account is titled in the name of your trust which that title might be something like John Smith as trustee of the John Smith trust okay moving on a number six life insurance you have beneficiaries defined that doesn't need to go into your trust under normal circumstances you've got a bank checking operating account titled simply in your name again it gets tricky with bank accounts a lot of people who have their main checking account and they do some they do their estate planning and they set up a trust to avoid probate they don't like the concept of having to get a new checking account titled in the name of their trust because they've got all their bank bank draft stuff direct deposit bank draft stuff going into and out of their personal check account but if that personal checking account is in your name only it'll be frozen when you die and your your survivors will go through lawyers like me enough to go through the courts to get access to it so some people in fact a lot of people have done this before they even come into the office to talk to me about it a lot of people even even before they come in they they go talk they bring their child their adult child to the bank and they add their child as a signer on their bank account still your money still your social security number on the account but that additional signer has access to those funds when you pass away the accounts not going to be frozen so we see people and you're asking a question here about funding your trust we see many people with trusts still keep their personal checking account in their name but make sure through some vehicle child as a signer or I know certain banks in Louisiana permit this p OD designation payable-on-death another tricky scenario but a lot of our clients have set it up that way that's a way for people to gain access to your funds after you pass away without having to go through all the court an attorney involvement okay because just a couple more here then we're moving on bank checking emergency fund account title the name of my revocable living trust there you go so that's taken care of that account won't be frozen when you die whoever is the successor trustee of your revocable living trust can present that trust instrument to your bank when you pass away and the bank will give access to that account to your successor trustee without needing all the courts and lawyers to get involved oh by the way having to get anything done through the court system right now boy that's that's a tough one I don't know the details what I hear is that courthouses are open for emergency filings only maybe it varies from parish to parish but yeah some things are going to sit for a while my number nine my primary residence Louisiana's title name and my revocable living trust good so when you pass away if you're survivors need to sell your home for example your successor trustee of your trust could sell your house the day or the week after you pass away without you know all of the typical delays when it's in your name and your family's got to go through the court process which is shut down right now in order to get that house retitled Texas farm acreage in the process of being surveyed and deeded will be titled the name America living trusts okay so there there you have it hope that helped and initials easy e easy how about that easy initials easy easy just made it easy for his heirs don't all of you laugh at the same time to that joke alright moving on to other questions okay see what we got here [Music] we're gonna go with I want to say so here's a question you know is there an additional fee if a client wants to come into office and ask advisor questions about enacting estate procedures is the designated estate custodian allowed to talk to you also that's a tough one I really don't understand what's going on here my kind of fallback answer is contact the office Brooke who feels all of the incoming calls there are many many circumstances with existing clients where we're either Brooke can resolve a question quickly or Brooke can ask me and get a question resolved quickly so in that case that's pretty easy then there are other cases when people call the office and there needs to be more involvement it's really done on a case-by-case basis the very first words of the of the question where is there an additional fee it really all depends on the circumstances and what someone is requiring so I I would just say you know get get the process started by both things sometimes things get resolved without you know without people having to pay for services sometimes things are more complex and so you know so legal services are necessary and of course fees result accordingly we always let people know in advance what those are before anybody can missed anything so tough tough one to ask here and so I'd say you know when you say estate custodian I don't even know what really that means or to ask advisor does that mean lawyer so a lot of unknowns there so I just gave you my my kind of default answer okay do you have boy here's a good one do you have any do you have any advice about today's stock market crash this shouldn't change anything with the trust so that is that is huge D and as I pull this stuff up Dow Jones Industrial down 664 points down to 18,500 that is that is awful and you know when it was just in recent months the Dow Jones Industrial Average was was around 30,000 now it's down to 18,000 that is that is a tremendous loss of wealth causing great stress to many people out there quite frankly including myself and so there are many people who we haven't heard all the stories yet but I know that there are many people out there retirees who retired last week last month last year five years ago and had an expectation that they would have X dollars and now they have X dollars minus 30 or 40 percent and so now they're worried that their money is going to run out it's awful let's all hope for everybody's sake that this problem that we're going through with the corona virus is short-lived so the economy economy can get back businesses can get back and people's portfolios can start going back in the right direction but it is it is awful all right now how does that affect people's people's trust is a very good question you know your question that that shouldn't change anything with the trust and the answer is it shouldn't and in in the overwhelming majority of cases it won't because most people's estate planning documents are general in nature and the effect of those estate planning documents are just you know whatever I own when I die it goes for my spouse whatever I own when I die it goes to my kids equally whatever I own it when I die I leave five percent to each of my grandchildren and I leave the remaining 80 percent to my children equally and those things that all you know works just fine regardless of the flux situations and value of what someone owns now where it potentially could affect things and this is where you know we you gotta be real careful because the more particular people get in their estate planning program the more risk that something goes wrong so the the grandfather who's sitting there on his you know 1 million dollar portfolio and he has six grandchildren and he says I want to leave a hundred thousand dollars to each of my six grandchildren and then I'll leave the rest to my two children equally I've got a million dollars so if I leave a hundred thousand dollars to each my six grandchildren and I'll leave the rest to my children my children will each get two hundred thousand dollars and my grandchildren will etude six hundred thousand dollars but when he dies either because of the stock market crash or he spent money on maybe long-term care or health care needs let's say he dies and he only has you know four hundred thousand dollars in his estate well he doesn't even have enough to cover the specific the six specific $100,000 bequests so those will get reduced proportionally each of the grandchildren will get $75,000 that'll make up the four hundred thousand dollars and his children will get nothing so to the extent you've gotten real specific with that or intend to get real specific you know be real careful I would say in general if you're gonna leave in a mount to grandchildren or do you leave them an amount when it's when it's just a kind of a token amount I leave five thousand dollars I want to acknowledge this person so I'm gonna leave them a thousand four or five thousand dollars but that grandfather who wanted to leave a hundred thousand dollars to his six grandchildren each and the rest to his kids maybe he should have done it all in percentages where he left the grandchildren a percentage and the children of a greater percentage so that way you know it would have worked out better so but really with the decline in value of things it really doesn't effects people you know people's trust programs now the other area where it can affect people is in the estate tax area but that affects so few so sometimes people's the quests are tied into the estate tax exclusion amount which is eleven point five eight million dollars and so when that's the case maybe significant fluctu
tions in value mate affects people's estate planning decisions good question D all right do you serve clients outside of Louisiana Natalie thanks for the question general answer no you know I'm a lawyer I'm licensed to Louisiana I give advice to people in Louisiana so there we go alright alright so we have these not we have Bank stock held in a subchapter probably properly meaning subchapter S the bank is a sum as a subchapter S corporation and the bank doesn't want to rename it as in the trust what happens when both spouses die well if if the bank refuses to retitle your bank stock really you're asking me if the stock is still in your name when you die then they'll they'll need to be a probate or a succession if it's in Louisiana to transfer that bank stock assuming you have a pour-over will which you probably do if you have a trust and I'll get to pour over well in a minute assuming you have a pour-over will which just about everybody who has a living trust also as a porter will that poor will says if I wanted to anything in my name wouldn't I I leave it to my trust so that way if you do own the bank stock in your name and you pass away there'll be a probate necessary to transfer that stock from your name to the trust and then your successor trustee can disperse all of the trust assets to your beneficiaries so that's the deal there all right let me go back to my email questions stock market hey gain 100 points since we last checked at 566 down 18 607 never thought we'd see and see those deaths just awful be happy to hear your comments on the stock market as well everybody's worried about it it's awful okay on the live chat feel free go on back to my email questions [Music] I may have got them all so I need to go to my YouTube community tab questions okay let me go here I'm losing my signal is it me or your broadcast if anybody else is losing a signal let us know in the live chat otherwise it's probably you but it could be me all right so let me go to the YouTube community tab questions okay this one's a doozy see I'm currently going through a situation where the power of attorney Health has signed her name on the deed to the house I was told the power of attorney for health can't transfer property in their own name can you discuss this vs when she transferred the property in her own name my mother was in a rehab facility and dosed up at the time so I read the quite it's a it's you know you can read the question if you go to my youtube channel and the community you'll read it so there's a lot going on there so let me let me do my best alright so if if someone and we're gonna get to this in a minute we when we talk about you know what what you should have in place right now or maybe even what you could get in place while everybody's staying at home and but anyway let me let me get to the question so it's weird this one's a lot of issues here so look looks like mom gave a healthcare power of attorney or signed a healthcare power of attorney let's say to a daughter which basically the mom signed a healthcare power of attorney that says in general if I can't make my medical decisions for myself I appoint my daughter whoever to make them on my behalf and the person who asked the question is saying well the daughter used that healthcare power of attorney to put the daughter's name on the house so that doesn't make any sense because a healthcare power of attorney doesn't give anyone the authority to put someone's name on a house that's that we may be having the financial or property power of attorney question about that but certainly not with a health care power of attorney so just that daughter would not have the authority to do it this the second issue that pops in my mind is if you do give someone power of attorney their underlying obligation under you know power of attorney law is they're given the authority to do things on your behalf but they must do things that are in your best interest so someone using a power of attorney to take assets out of your name and put them into their name that's that's a violation of the obligations that an agent has using a power of attorney so we got more problems there not to mention if the mother was in a rehab facility I don't know if that's really relevant to my legal answer here so that's what we got going on all right another question from Gloria should I record with my County a certificate of trust for my home does that make it easier for my children to sell the property or or is that unnecessary alright so again when you talk about County and when you talk about certificate of trust you're talking probably from a state outside of Louisiana but I think you know I can speak generally here so when someone has a a trust that's typically all very private information but when they transfer their home to their trust they typically in many state laws if not all state laws require this they require that you have it written here certificate of trust in Louisiana we often call it an extract of trust some some call a short short document needs to be recorded in the land or real estate records where you live so that if you or when you die your successor trustee goes to sell your property the title examiner's can look in the and records and see who has the authority to transact the real estate on behalf of the trust so if if John and Jane Doe have their living trust their houses in their trust a extract or certificate of trust would have been recorded in the real estate records saying that John and Jane are the trustees of the trust and when John and Jane both died their son Fred is the successor trustee John and Jane died Fred goes to the sell the house the buyers title examiner goes and checks the land records sees that Fred is the successor trustee because that's what it says on the extract or the certificate of trust making it easier for Fred to sell the house after John and Jane pass away so that's a good question from Gloria and again check with your state rules but that's the that's the general discussion there all right do question from from Ron from Wyoming hey Ron do nursing homes have a certain number of maximum Medicaid residents they deal with that's tough question and I don't know if I even know the exact answer I'm just going to give you my my experience answer all right so I'm gonna start with the basics so and in communities there are assisted living facilities and there are nursing homes and and then and then there's a mix but we'll get to that a minute so assisted living facilities those are all private pay facilities and if someone lives in an assisted living facility Medicaid is not paying for out they're paying you know they're paying rent they're paying for whatever services they get those are all private pay facilities when someone needs that skilled care above and beyond what the assisted living facility provides then they often go into that skilled care or come on they refer to nursing home and not every nursing home is a Medicaid facility most of them are I know in my community there's I think two that are exclusively private pay and then there's maybe 20 that are that have residents some of whom are Medicaid recipients because they qualify based on their assets and income and others who are private pay residents because they don't qualify for Medicaid based on their assets and their income so going back to Ron's question the nursing home has a certain number of maximum Medicaid residents that they deal with I don't know that's that's a good question I just know that here when when when they're just boys there seems to be enough facilities to to handle all of the people who qualify for Medicaid so I think about 75% of the nursing home residents in Louisiana are on Medicaid about 25% or private pay but I would you know up in Wyoming check with people who know better there I don't even have the perfect answer for you here in Louisiana all right mb says thanks for the good info alright so what I want to do now is I want to go back to that emergency stuff this is the kind of this is the I'm I'm holed up in my house I procrastinated for years on getting any kind of legal affairs in order now I'm being told to stay home there's this coronavirus going around I don't have it I don't show any symptoms but I might get sick I might get the corona virus I'm and I'm and even if I don't get the corona virus I'm not getting any younger so I want to make sure I make things easy for my family what do I need to do so that's what this discussion is about I guess I'll go into just the immediate oh shoot I got nothing in place and I might get sick and so is there anything I can do quickly to get things in order make it easier for my family and then maybe long-term stuff we'll talk about that for a minute okay so yes Nika Nika B so many people have procrastinated and so here's the deal if and and I suspect there's a group of people out there that are holed up in their house they're like I'm not worried about estate planning I'll get through this and I'll deal with it later and it's just it's just how they feel and right wrong or indifferent and then there's other people who are like oh you know I'm meant to do it but I didn't it was on my list and based on life events I kind of wish I would have and I'd kind of like to know what I should do now so I would say the the very basics if you want to get just some basic things in order to get things squared away for your family let's talk about on the healthcare side first because there's mainly two things that you can do there and relatively easy that can make things much much easier for your family in the future whether you get the coronavirus or whether you live another you know 30 years and go from there so virtually everybody when they put their legal affairs in order from a healthcare perspective they do two things they do a healthcare power of attorney and they do a living will the healthcare power of attorney sometimes it's called a medical power of attorney sometimes it's called a health care proxy HIPAA authorization and then there's a separate living will or living will declaration so let me talk about the living will first so the living will that's the everybody confuses it so you know I know when I ask people you know going through the process hey if you're you know in a surgery or you're sick and you can't make your routine medical decisions who do you want to make them for you and they'll say well don't don't want to name a son because it will pull the plug right away that's different so the living will is is where you don't appoint someone to make that you know take me off of life support machines decision if I'm a vegetable with no chance of recovery the living will is where you make that decision yourself and you direct that your family and your doctors honor that decision so what's usually expressed something like if I'm in a vegetative state there's no chance of recovery the machines are serving only to artificially prolong the dying process I direct that my family my doctors under my wishes that that the life support machines be withheld or withdrawn but I have enough medication to be comfortable so that's the living will and here in Louisiana it's it's fair really easy to do it you don't even have to have it notarized it does need to be witnessed by two people who are not you know family members who can't inherit from you so that one's fairly easy to do if I was really on my game I'll give you a site but you could probably go online dig around and find Louisiana living will form if that is a concern to you and and get that signed in the presence of two non-family member witnesses and that piece could be in effect that one's really easy to do then the other health care piece is that health care power of attorney that's the scenario where you're not necessarily on life support and you're not a you know in a vegetative state with no chance of recovery but you're just you're alive but you're in a condition where you can't make your own medical decisions and doctors and health care providers need to know who to talk to about your treatment decisions maybe you have dementia maybe you have Alzheimer's maybe you're in a surgery maybe you're under medication so that's that's what the healthcare power of attorney for is for and so that's where if and you appoint people who would have the authorization to make those decisions if you're married you may appoint your spouse and you may appoint your spouse first and may appoint a child or children as the backups we tend to suggest that people not appoint you know for people having to work together to make your medical decisions because sometimes medical decisions need to be made quickly and so if you want to appoint for people to make those decisions we sometimes we say that you know the four can make it but acting jointly or separately meaning any of them would be authorized to talk to health care providers and allow you know treatment to take place all right so that one is a little more difficult to implement immediately because virtually every health care power of attorney is written in a way where it needs to be notarized and witnessed by two people so now I was was kind of researching some of this before we started in theory a health care power of attorney does not need to be notarized to be valid but to be you know to have have the right effect a third party like a hospital is going to have to honor it and the hospitals are probably so used to seeing the notarized witnessed we call it authentic act documents with all of the health care health care authorizations in there including all of the HIPAA authorizations that while it may be valid a third party like a hospital may not honor it unless it's done with the notary and witness stuff that is so typical of healthcare powers of attorney so but nonetheless another one that's fairly simple and you know but you've got to track down a notary I guess if you were wanting to get it done immediately I don't know you know some some of these Walmart's and grocery stores of the world have notaries I don't know if they have those now some you know there's in every community there's mobile notaries who will come to your house to when you need to notarize something I don't know if they're doing that under this environment that we're in with a coronavirus but those are some things those are the couple of health care things that you can do it early quickly on the on the financial and kind of the business the property the asset side there's a couple of things that if you're trying to get some things done quickly here's here's what you got there all right so there's the there's the financial power of attorney sometimes called the property power of attorney the general power of attorney the durable power of attorney all of that is if you get to a point where you're not able to deal with your accounts and sign your name or sell your vehicle or even sell your home if that weren't necessary and you were alive this is where you can designate people to do that for you most people if they're married they appoint their spouse maybe appoint an adult child or you know children is the backups and so that really is something that every adult needs to have in place if you don't have that in place and you know you need to transact your IRA because assets need to be managed or distributions need to be made then and you don't have that power of attorney in place then somebody's gonna have to sue you in a what we call interdiction proceeding other states call it a guardianship proceeding it is a really legal nightmare when the courthouse is open and you get sued you get an attorney appointed for you delays have to run you have to be examined by doctors court hearings take place a judge has to declare you legally incompetent take your capacity to do things for yourself away from you judge has to appoint a legal guardian for you in many many many cases all of that can be eliminated if you had signed this no financial power of attorney authorizing the people that you'd want to be able to do that kind of stuff for you so that also I would say you know that one that one does have to be at least here in Louisiana what's called an authentic act notarized and then two additional witnesses because if our laws
ay if if someone's going to sell a piece of real estate on your behalf using the power of attorney that real estate transaction is done in in the presence of a notary and to witness so the power of attorney authorizing someone to do that has to be in that same form so again though with notaries around and you know notaries are kind of readily available mobile notaries some retail establishments I don't know if they're available right now today or especially starting after five o'clock with the stay at home order that we have in Louisiana starting at 5:00 p.m. today I don't know how that stuff's going to be available but that's and then the other is kind of quickly getting something done is that that will or trust scenario so when people are in an emergency and they want to do something fairly quickly we see we typically see those people getting wheels done and they just leave the assets and their name they realize there's going to be a probate or a succession to get them transferred but the reason people do wills at the very last moment couple of reasons one is if you don't have a will and you pass then your state determines who gets your stuff and your plan is likely to be somewhat different than what the state says who should get your stuff here in Louisiana particularly from married couples our state really favors the descendants over the spouse most people who are married they want to give their surviving spouse more rights than what these intestate you know without a will without the give more right their spouse than the laws that apply when you don't have a will give this give this surviving spouse so so it is important for further that reason so you get to control who gets what you've worked for and then maybe even just as important in your will you'll have an executor designation and an alternate executor designation where you'll designate who will be in charge when you pass away of making decisions of how your stuff gets you know handled and managed from the time that you die until it does get you know dispersed to the people that are named in your will that's that's a really important designation you know having the right person do that can be life changing versus having the the wrong person do that life change I know I believe it's 26 states I'm talking about the emergency you got to do something fast 26 states permit Louisiana calls Ola graphic other states call it holographic wills where people can can write their own wills and their own handwriting nothing notarized nothing witnessed so that's that's the piece that's available for someone to do you know without having to get any outside help or assistance the concern over handwritten wills always has been it hasn't been how do we make it valid at least here in Louisiana just needs to be entirely you know dated written and signed in your own head but the question and the the knock on handwritten wills has always been the the lay person isn't trained to have the language set up to be you know just right so that it doesn't create more problems than then they're not doing anything to begin with so I mean I will mention be anxious to to hear some comments on this i-i've been working for the last probably six months I plan as and give me your feedback in the live chat it is just if there's some interest there or if you'd be interested in seeing something like that I've been working on building this this website for the states that permit people to handwrite their own wills where it's got all the forms all the sample provisions it's got some video instruction it's got some written instruction so people will be able to you know do their own handwritten will under those circumstances and really it's set up for the for the simple matters you know you want to leave everything to your kids equally you want to leave things in percentages you want to leave things to your spouse or even you wanna leave things in a trust for your spouse so that your spouse can use it and then when your spouse dies it goes back to your kids or maybe you want to make a couple of specific requests I want to leave my car to this person I want to leave $10,000 to this person and I want to leave the rest to my children equally we can show you how to do that in an handwritten format if you're in one of the 26 states that permits that I know some of those 26 states include course Louisiana Texas California New Jersey and and then there's others as well so if if you'd love to see some feedback just cuz I've been working so darn hard on it as to whether that would be of something that would be of interest to you okay and then moving forward let's assume that we get get beyond all this coronavirus stuff and you want to do you know you kind of want to do it right take your time not in a rush like some people are right now what's what are some of the considerations there so preferably maybe three of the biggest considerations when we when we do it right kind of take our time is some people want to avoid probate some people want to avoid losing what their life savings in their home if they go into a nursing home and some people's emphasis is avoiding taxes and so let me just touch on those when we when we touch on what you know some people say you know I want to make it easy for my spouse and kids or whoever I leave behind I don't want them to have to go through any kind of you know bureaucracy red tape government interference so a lot of people set up these living trusts makes it makes this settlement process simpler because you'll designate a trustee who will handle your trust assets when you die and they'll have immediate access to be able to first access to your trust beneficiaries in accordance with the terms of this trust instrument that gets prepared on your behalf so that's a big one and I would say don't try to do that like in five minutes or less I did write another ute I mean didn't make another youtube video in fact in the last seven days of my 390 videos it's been my number one watched video in the last seven days it's titled how to make a valid will in four minutes or less and it talks about you know me it shows me just sitting down a and handwriting a will using the right terms for a hypothetical gentleman named will will writer so for your viewing enjoyment feel free to take a look at that but that you know that handwriting a will doesn't get into the probate avoidance scenario that so many people wish to have the other scenario that takes a little more time they get implemented is the I don't want to lose everything if I get sick and I go into a nursing home that's a middle-class problem the very very wealthy they can afford the the care that they need the very very poor they're going to qualify for Medicaid and get the care that they need in a nursing home the middle class the people with two three four hundred thousand dollars they're going to get wiped out if they have any kind of extended nursing home stay because they won't qualify for Medicaid and they'll have to deplete what they have down to $2,000 or less before they do qualify for Medicaid so they'll lose everything and the potentially they lose their home when they died due to Medicaid estate recovering the rights that we talked about earlier and the youtubes life here so many people and you know this takes some careful thought and takes you know got to do it right they'll create let's call it a family trust lots of videos I made on that so feel free to you know search protect from nursing home irrevocable trusts Medicaid planning Medicaid eligibility on my youtube channel and you can watch lots of videos there but many people do transfer assets to a very particular kind of trust and it removes those assets from being a countable resource don't have to be consumed if you went into a nursing home there's a 5-year deal there so you know people today they're not anxious to protect stuff if they go to a nursing home because of the you know five-year waiting period people today are worried about I need Affairs in order you know today in case I get sick tomorrow so this nursing home stuff is probably going to be put on the back burner until we get past all of this disaster that we're in and people can focus more on on long-term protection and then a third issue is the taxes and some people come in correctly when I bring up taxes they'll say well not a problem for me because I don't have anywhere near these estate tax limits whether it's 3 million or 5 million or 11.5 8 million which it is but nonetheless even though you don't have a large estate your estate is likely to have both income tax and capital gains tax consequences so again in the interest of time I'm gonna refer you to my videos lots of videos the the double step-up in basis not a term you hear much income taxes on IRAs versus non IRA assets step-up in basis all those are things you ought to make yourself familiar with so that you can structure a plan that works for you and and you know keeps what you have in your family ok let me go back let's see here the Baba alright thanks for highly recommending Paul's book really helped me get my thoughts organized okay very good okay all right so with that being said our and ten okay very good so we're gonna shut it down and I will likely do this one more time during our stay at home order I'll announce a little bit more and be able to answer more questions I hope this has been helpful been helpful to me in the meantime number one number one goal of all goals stay healthy keep yourself health healthy and keep yourself from getting infected and keep yourself from infecting others so even though I don't like the fact that I'm gonna be staying at home for three weeks and probably not getting out much at all I'm gonna make the best of it just like everybody else should do spend time with family take advantage of my free time to be able to work on things that I've been meaning to work on but have it and but number one stay healthy number two I guess just a little bit of the salesman in me wants to say that if if you do live in Louisiana and you want to have a talk me and my two employees are gonna keep going we're gonna do the work that we can do we're gonna total our thumbs a little bit because nobody's coming in although our business is conducive to working virtually if you want to talk about some stuff you can go to our website Rabelais estate-planning calm and there's a button you can click that will take you to my calendar for you to schedule just an introductory call that may last 15 minutes or less where you can you know arrange a time for me to call you I'll call you from my home you'll likely be at home and just start a discussion about whatever it is that bothers you from an estate planning perspective so just know that that that is out there if you need it alright y'all take care we'll see you next time
