Eric Jones Law

While estate planning may seem arduous or unnecessary now, there are numerous reasons as to why you should plan your estate and keep your estate plan up to date. Your estate has been accumulating for your entire life, and without sufficient planning, the State of Ohio may be in charge of the distribution of your wealth. There are several documents with which you should be familiar prior to beginning your estate plan.

 Will

Managing a will should not be neglected as it is extremely imperative. A will is a document which details the distribution of your property and owned interests following your death. Even if the amount is trivial, anyone who owns real or personal property should have a will. The inheritance laws of Ohio will delegate the distribution of your property if you do not have a will, as you will be considered to have died intestate. There are several drawbacks of dying without a will, such as: no control over how your property is distributed and having a judge decide the guardian of your children. Additionally, this will cost your heirs excess time and money to go through the probate process.

Living Will

In the event that you are not able to speak for yourself, it is critical that you have a living will to communicate your desires regarding life support and medical treatment to your health care providers and family members. Prior to going into effect, a living will generally requires doctor verification that you either have a terminal illness or are permanently unconscious. The use of a living will is reserved for the event that your ultimate recovery is beyond the bounds of possibility.

Durable Health Care Power of Attorney

In the event that you are unable to communicate wishes regarding your health care, The Durable Power of Attorney for Health Care designates an Attorney in Fact to make those decisions for you.  While this document also can relate to life termination and lifetime healthcare decisions, it differs from a living will in that a living will applies only to end of life circumstances, whereas a health care power of attorney covers all other medical-related decisions whenever you are unable to communicate your wishes yourself.  If you have both a living will and a health care power of attorney, the living will takes precedence regarding life termination decisions, while the health care power of attorney allows the attorney in fact to make decisions such as the access and release of medical records, the employment and termination of health care personnel, and choosing a health care facility. A general durable power of attorney is more common than a limited durable power of attorney; the difference lies in that a limited durable power of attorney regulates specific areas such as investments, property, and health care decisions, whereas a general durable power of attorney may permit your agent to perform every act which may be legally performed by you. It is essential to note that once named, your general durable power of attorney can make business decisions for you regardless of disability, incapacity, or incompetency. It is, therefore, in your best interest to be cautious when choosing your general durable power of attorney.

Revocable Trust

A document which provides for the management of the trust grantor’s property is called a Living Trust or Revocable Trust. The Trust directly affects only property which has been transferred into it and can control management of the property both prior to and following the grantor’s death.  Because of this, a Revocable Trust can serve as the substitute of a Will. While alive, the grantor has the freedom to add and withdraw property, change beneficiaries, or entirely revoke the trust. Trusts are advantageous for grantors who have younger beneficiaries, as they can be designed to stagger or delay the distribution of assets. Additionally, trusts are also useful for elderly grantors as well as those who are incapacitated and no longer wish or are able to manage their affairs.

Thursday, September 22, 2011

Author: Brett E. Schmied

Disability is something most people do not like to think about.  But the chances that you will become disabled probably are greater than you realize.  Studies show that a 20-year-old worker has a 3 in 10 chance of becoming disabled before reaching full retirement age.  As a result, the Social Security Administration has instituted two programs in order compensate individuals who become disabled prior to reaching full retirement age.

Social Security Disability Insurance (SSDI), also known as Title II, is a disability benefit amount based on payments previously made into the Social Security system by a worker who has become disabled.  Therefore, the worker’s benefit amount is based on that worker’s earnings record.  In order qualify for SSDI, an individual must have earned enough “work credits.”  An individual worker must have 20 work credits within the past 10 years in order to be eligible for SSDI.  A worker can earn a maximum of four work credits in each calendar year.  Simply stated, if an individual has worked 5 of the last 10 years, they will likely be eligible for SSDI.

An individual will have to become disabled before their work credits drop below 20 within the past 10 years.  Individuals who receive SSDI are eligible for Medicare; however, Medicare eligibility does not begin until the individual has received SSDI benefits for 24 months.  No application is necessary for Medicare because eligibility occurs automatically in month 25 of receiving SSDI.  For more information on Medicare, please visit www.medicare.gov.

Supplemental Security Income (SSI), also known as Title XVI, is a federally financed, needs-based benefits program.  SSI guarantees an income for individuals with low income and resources on the basis of age, blindness, and disability.  The eligibility requirements are very different from SSDI.

First, there is no requirement that an individual earn any work credits.  SSI is a need-based program.  In order to qualify for SSI, a recipient must meet the following five criteria: (1) Categorical; (2) Residential; (3) Citizenship or Alien; (4) Resources; AND (5) Income.

(1) The individual needs to be at least 65 years old, blind, or disabled.

(2) The individual must have resided in the USA for at least 30 days.

(3) The individual must be a citizen of the USA or a qualified alien.

(4) The individual must have under a certain amount of resources.  A resource is defined as cash on hand, other than personal or real property, that an individual has some level of ownership and maintains some level of control. For an individual, the SSI resource limit is $2,000 in countable resources.  For a couple, the SSI resource limit is $3,000. Certain resources can be excluded including, but not limited to, the SSI recipient’s home, automobile, and personal/household goods.

(5) The individual must make under a certain income.  Income is anything an individual receives in cash or in kind that can be used to meet ones needs for food, clothing, and shelter.  Almost all income is countable, although there are some exclusions and deductions.  Income reduces the maximum monthly benefit to which a SSI recipient would otherwise be entitled.  Common sources of income include, but are not limited to, wages, tips, alimony, pensions, worker’s compensation benefits, unemployment benefits, among others.

Unlike SSDI, SSI recipients will likely not qualify for Medicare.  On the other hand, SSI recipients are likely immediately eligible for Medicaid but will need to apply for it.

Please contact us at (877) SSD-IWIN or email consult@ericjoneslaw.com for additional information.