Expert: Alexander J. Hay - 6/22/2004

Question
I live in LIMA OHIO, have three married children.
My question, is how can i will my estate to them, and not have to be probated, and avoid high lawyer fees.
Also at what point does inheritance tax fall in?
We have a modest savings of around $200,000.
I would like them to get as much of it as they can.
Would it be better to set up trust, and if so what kind?
Also, if we give the money to them, and go to a rest home broke, is there a time limit that they would not be resposiable for our care cost?
I know this is asking a bunch, but for peon's we have to know what the right thing to do, BY the way my wife and I are 83 and in poor health.
THANKS IN ADVANCE
WM CORWIN
Wcorwinbc@aol.com
.

Answer
First of all if you want to avoid probate the best thing to do is set up an Revocable Trust also known as a Living Trust.  This is the best way of avoiding probate.  It costs more than preparing wills, but usually much less than probating a will.  (The advantage of the will is that all the costs of probate happen later -- when you aren't around to worry about it!)

It does not sound like you have a taxable estate, so there would be no estate taxes that would have to be paid.  As for gifting you can each give $11,000.00 a year without any gift taxes.

You last question involved "Medicare/Medicaide Planning".  I really don't do that, and frankly if I did, you would need to give a lot more information than you.  "Impoverishing" youself for medical reasons is a tricky business and full of small details that need to be addressed.

If you would like help in establishing a Living Trust, I would be happy to help you.

Alexander J. Hay III