estate planning

[thebuchanan]

My father passed away about 6 months ago and my 85-year-old mom wanted to get her estate prepared so her 5 children would get equal inheritance. We made an appointment with a recommended estate-planning attorney and thought we were going to prepare a simple will. He recommended a a) Simple Will $275.00, b) Durable Power of Attorney $195.00, c) App of Healthcare $195.00, d) Pourover Will $275.00, Medical Income Only Trust (Irrevocable Trust) $1,950.00, and a e) Deed of Conveyance $275.00. I'm sure he explained all of these items but we were so overwhelmed with so many unfamiliar terms that we did not understand much of what was said. Additionally we were informed the hourly fee was $305.00 per hour so we panicked and failed to ask necessary questions. Mom & Dad were modest people and when mom heard these kind of fees she couldn't get out of the attorney's office soon enough. After the first visit of $650.00 she has forbid us to contact him with any questions as she fears the additional charges.

We are trying hard to accept the recommendations and want to proceed but don't understand everything. We are aware of the Medicaid 5 year look back and willing take our chances as mom is in good health and her family has long life lines.

The attorney recommended the house ($85,000.00) and some money (?) be put in the Irrevocable Trust. Mom's savings of $120,000.00 of various types of low risk accounts have the 5 children as equal beneficiaries, payable on death, where allowable. Our areas of concern is our 1) lack of understanding of an Irrevocable Trust, 2) What is a Deed of Conveyance, 3) Why a Pourover Will?

At times we wonder if all of this is overkill for the circumstances. All mom has is the house, savings, and very used car. There are no valuables of any kind; jewelry, coins, antiques, silverware, nothing.

Please give us some advice. Regards.

 

[army judge]

If the attorney's fees frustrate and worry you, think about the confusion and costs, if the will ( and estate planning) are done poorly.

If, on the other hand, all of you trusts the others, then why worry about all of this? When mom, sadly has been called home, all of you can divide her assets accordingly, absent rancor and feuding.

If, one or two of you won't play nice, paying an attorney now, will avoid problems later.

As far as understanding what the attorney has done, a good attorney is none to happy to make sure you all understand what has been done. So, why not look for another attorney that will be more client focused?

 

[thebuchanan]

Thank you

The reason I mentioned the fees, etc was to set the tone of the mindset of our mother and the fact that we have been living under a rock when it comes to these matters. We don't expect any problem with us 5 children as we are on the same page in every respect. But we all realize the importance of planning ahead. This all comes down to the Medicaid planning with the Irrevocable Trust to avoid the depletion of her assets should she have to rely on Medicaid in her final days at a nursing home. She is ready to proceed with the I.T., PoA Finance, PoA Health, Living Will, and Simple Will. We don't understand the need for a Pourover Will or know what a Deed of Conveyance is. That's why we are asking. Regards.