General Overview.
Probate and Estate
Administration is the process that distributes your
assets after your death. Once a person is deceased
all of their assets are distributed either by a Will
if the person died testate (meaning a valid Will was
created) or by statute if the person died intestate
(meaning a person dies without a will). The asset
distribution is done in two steps: First there is an
estate administration and second the estate is
probated.
Estate Administration is the process whereby the
contents of a person’s will are distributed by an
executor who was selected by the testator (meaning
the person who created the will) before the estate
passes to probate. In the event that a person dies
intestate an executor will be appointed and the
estate will be distributed according to the State of
Alabama’s Probate Code. Probate is the legal process
of administering the decedent’s state wherein the
decedent’s property is distributed and claims are
resolved as directed by a valid will. During the
probate phase there can be a need for an inventory
of the assets of an estate, appraisals on property,
settlement of the debts of the estate and a variety
of others.
Proper estate planning can make the estate
administration and probate process easier for your
loved ones. The experienced attorney’s at The Beard
Law Group can ensure the successful preparation of a
comprehensive estate plan that will aid in the
administration and probate of your estate. Your
estate plan can encompass as much or as little as
you like. A comprehensive estate plan can include
any or all of the following:
- Will
- Living Will
- Living Trust
- Durable Power of Attorney
- Health Care Proxy
- Business Succession Plan
Your estate plan can cover several areas ranging
from asset protection and medical needs for the
duration of your life to distribution of assets upon
your death. Some of the documents we can prepare for
decisions affecting you and your family during your
life are the living will, living trust, durable
power of attorney and health care proxy. The will
and business succession plan are just a few of the
documents that we can prepare to protect your estate
and distribution of assets upon your death.
Another important issue that we can help you plan
for is Medicaid Long-Term Care eligibility. In 2006,
President Bush signed into law the Deficit Reduction
Act (DRA) which made significant long term changes
to Medicaid’s long-term care rules. One of the most
important areas that changed was the “look-back
period.” The “look-back period” is the period of
time that the Medicaid Agency uses to determine
eligibility for benefits. The reason for looking
back is to see the applicant’s assets and transfers
of assets for less than the fair market value. Now
the “look-back period” is sixty (60) months. Also
tied to the look back period is the penalty start
date. The penalty start date is the penalty period
during which the applicant is ineligible for
long-term Medicaid care due to transferring assets
for less than their fair market value. Currently the
penalty period does not begin until the nursing home
resident is out of funds and has no money to pay the
nursing home for however long the penalty period
lasts.
The Beard Law Group through preparation of your
estate plan can make the estate administration phase
simple due to the fact that all of your assets will
be directed to certain parties and/or entities
whether corporate or charitable. Our experience in
probate can help make an otherwise lengthy probate
process easier on the family with a minimum expense
to the estate.
