Does state take everything if catastrophic illness occurs?
My mother is seriously concerned about losing all her assets in the event she suffers a catastrophic event ,i.e., stroke, alzheimers, etc.. She believes that if this were to occur, the state would automatically get everything (home, invest,ents, car, etc)she has ever owned. Is this true? If so, what can be done to prevent it?
After reading many posts here, it seems a durable power of attorney might be one way of stopping this – she also has a living will (she doesn’t want to be resuscitated in event of heart attack) and a will that – will the POA make her sleep better and allay her fears?
TIA
Re: Does state take everything if catastrophic illness occurs?
The state does not take everything, but they can take control of her assets by appointing a conservator (which could be you, but not necessarily). This could require extensive legal fees.
What she probably needs is a revocable trust, which would allow her to appoint another trustee who could control her assets, based on the instructions in the trust.
Go to my website at http://www.lawken.com, and under areas of law, you will find estate planning. There is a short slide show that will explain some things about estate planning.
She is right to be concerned, but can save thousands of dollars by investing a little with an estate planning attorney.
If you would like more information, call me at 925-924-0100.
Ken Koenen
Koenen & Tokunaga, P.C.
5776 Stoneridge Mall Rd., Suite 350
Pleasanton, CA 94588
Re: Does state take everything if catastrophic illness occurs?
it is not true they take everything but they can take a lot if there has been poor planning. she should have someone review her individual situation if she is that worried.
Ken Koury
Kenneth P. Koury, Esq.
22425 Ventura Blvd., #286
Woodland Hills, CA 91364
Re: Does state take everything if catastrophic illness occurs?
She should plan ahead with a trust and powers of attorney which allow for the transfer of assets in the event she may need assistance from Medi-Cal for nursing home costs. If done correctly, this should address her concerns, and will not complicate her life.
Be careful, though, because not all trusts and powers of attorney have the required language. This, and any possible transfers, should be handled by an attorney knowledgeable in Medi-Cal planning. Improperly transferred assets could disqualify her from receiving the Medi-Cal assistance.
Chris Johnson
Christopher B. Johnson, Attorney at Law
790 East Colorado Boulevard, Ninth Floor
Pasadena, CA 91101