Little did they know

My wife & I recently saw a movie, which had the above statement in it. As I continued to watch the movie, I couldn't help but think about how many time this statement rings true in so many of the people I counsel in regards to their Estate Plans. Every week I encounter folks who have been misguided, misinformed, or just plain out right lied to for the sake of someone wanting to sell a product to them. The product may even be something that could actually enhance the estate, but if it is implemented at the wrong time, it could become a detriment to the overall estate planning process. Let me share a true story with you about a couple who really go messed up by listening to the wrong advice.

Dick & Jane (names have been changed for privacy) have been married for over 45 years, have two grown children living in other states, and have lived a very prosperous and healthy life together. Recently, Dick's health took a turn for the worse, early dementia & Alzheimer's began to set in. Jane is fulfilling her spousal commitment to her husband, many well meaning friends & relatives are all willing to offer their advice on how this is going to affect her financially. One well meaning individual said that if she would start giving away the estate, she would someday be able to qualify Dick for the State & Federal government assistance programs. But she would have to take care of him for three years before she could ever request such government assistance. Jane respected this individual very much & set off to put the plan into motion. She started gifting some of her cash assets to her children, hoping that if she ever needed funds in the future, they would be more than happy to help their loving mother. Well, one long hard year now has passed & Jane is just plain worn out from the constant 24hr supervision over Dick. He is getting too much for her to handle on a daily basis, but she has to hold on for another two more years. Jane's health is now starting to take a turn for the worse, because of the wear & tear on her own body, she says "I need help & cannot continue this way!" Little did she know that the advice she was given was incorrect!

If you have an area of concern in your life that you are either dealing with or going to be dealing with, it is beneficial to speak with someone who knows what to do about whatever the situation may be, not just listening to a well meaning friend or family member. If you need heart surgery, do you go to your brother-in-law? NO... Why?...because, little does he know! There are specialists all around us in life for many different areas of concern, we need to start listening to the right voices, now back to our story.

I had the distinct pleasure of being introduced to Jane by a concerned friend who happened to be a client of ours for several years & knew from her own personal experience, how we had helped her. After listening to Jane's situation we began to formulate the correct plan of action for her. First of all, there is no look back or waiting period for gifts between spouses. There was no need to give anything to the children. Dick could have been admitted to the nursing home right away. Jane could have been spared all the additional stress & wear & tear on her body, and yes Dick's nursing home bill would be subsidized from the State and Federal government programs, thereby allowing Jane to continue living a normal financial life. "Oh, Little did she know but..."

Now Jane is able to relax knowing that the financial burden has been removed & that Dick is in the right place where properly trained people are giving him the best of care. Jane has asked that I share her story, "so others will never have to go through what I did; let them know there is an answer".

Please don't wander around in life listening to well meaning people who may have incorrect advice...

Go to the expert!

Article by Bobby King Certified Estate Planner