A durable power of attorney is a document that gives another person the authority to manage your affairs even after you become incapacitated.

The four ways are:

1. Private pay
2. Veteran’s benefits
3. Medicare
4. Medicaid through the Illinois Department of Public Aid

If you are concerned about having too many assets to qualify for Public Aid, you can keep a substantial amount through the use of an OBRA trust.

A power of attorney for health care designates an agent to make medical decisions for you, whether death is imminent or not. A living will is a directive to healthcare providers that you do not want extraordinary measures used to prolong your life. We always use a living will in conjunction with a power of attorney for health care as a safety net in cases where the agent is unable to act.

An executor must file the will, gather estate assets, pay creditors, file taxes, and distribute remaining assets. If the estate is modest, a family member or friend may suffice. For substantial estates, a bank or trust company may be more appropriate due to the complexity. A trustee has similar responsibilities and may manage funds long-term, which also favors appointing a professional.

Unless your estate is valued under $50,000 or consists solely of Illinois real estate, a living trust is likely beneficial. A Living Trust can:

1. Reduce probate costs
2. Avoid the need for a guardian if you become incapacitated
3. Maintain privacy
4. Minimize estate taxes through A/B trust structures for married couples

Normally, receiving assets directly may disqualify a disabled person from government assistance. However, by using an OBRA trust or a third-party special needs trust, assets can be managed for the beneficiary without impacting eligibility.

A couple came to our office with a $3 million estate including real estate, IRAs, a 401(k), and other assets. They had three children, one of whom was disabled.

We recommended A/B trusts, a charitable remainder trust, gifting strategies, and an irrevocable life insurance trust. These measures saved them approximately $1.28 million in estate taxes if both passed away in 2001.

We advised titling retirement accounts to reduce income taxes upon the surviving spouse’s death. Trusts were structured to stagger payouts, avoiding large lump sums to young children. For their disabled child, we set up a special needs trust.

They followed our plan and gained peace of mind knowing taxes were minimized and their children’s futures were secure and tailored to individual needs.

Leaving clear, written instructions about your final ceremonies and the disposition of your body can provide peace of mind for both you and your loved ones. By doing so, you alleviate the burden on your survivors, sparing them from making difficult decisions during an emotionally challenging time. Additionally, having your preferences documented means your wishes are respected and executed according to your desires, minimizing potential disputes among family members.

The location of your final arrangement instructions is key to keeping them readily available when needed. It is recommended to store these instructions in a secure yet accessible place. Consider providing a copy to a trusted family member, executor or attorney who can make sure that your wishes are followed. Additionally, informing your loved ones about the location of these documents will help them access the information without delay.

It might seem convenient to include your final ceremony preferences in your will, but it is not advisable. Wills are often not read until after the funeral services have taken place, which means that your instructions may not be discovered in time to be of use. It’s crucial to have a separate document that can be accessed immediately following your passing so your wishes are known and followed promptly.

Failing to leave written instructions regarding your final ceremonies and the disposition of your body can lead to uncertainty and potential conflict among your family members. In the absence of your specified wishes, state laws typically dictate who has the right to make decisions about your remains. This often starts with your spouse or registered domestic partner, followed by your children or parents, which can lead to disagreements if multiple parties are involved.

A comprehensive final arrangements document should include several key elements for clarity and completeness. These elements might encompass your preference for burial or cremation, choice of mortuary, embalming decisions, desired type of casket, details of any ceremony you wish to have, names of pallbearers, transportation logistics and the specifics of any grave marker. Including these details allows all aspects of your wishes to be clearly communicated and respected.

Mortuaries, also known as funeral homes, offer a range of services to facilitate the respectful handling of a person’s remains. These services generally include collecting the body from the place of death, storing it until burial or cremation, organizing burial or cremation services, conducting memorial ceremonies, and preparing the body for its final disposition. Mortuaries can also arrange for transportation to the burial site.

Choosing cost-effective mortuary services and burial arrangements often involves careful research and comparison. Joining a funeral or memorial society can be a valuable step, as these organizations provide resources to help you find reputable local mortuaries. They often advocate for simple, affordable arrangements that meet your needs without unnecessary expenses. If you prefer to research independently, compare service options and costs among various providers and avoid prepayment plans that might not align with your preferences.

By addressing these fundamental questions, we at Wilson & Wilson Estate Planning & Elder Law LLC aim to assist you in making informed decisions about your final arrangements so that your wishes are honored and your loved ones are supported during a sensitive time. For personalized guidance, don’t hesitate to reach out to our team of experienced professionals.