Why You Need Legal Advice for Elder Law and Estate Planning

Everyone has their niche.

Financial advisors have a certain field of expertise, and most are very good at what they do. However, when it comes to elder law, Medicaid and estate planning, there is no substitute for sound legal advice.

Case study:

A retiree originally made an appointment with a law firm specializing in estate planning and elder law – but, a family friend was a financial advisor. He decided to work with his friend and canceled his appointment with the law firm.

The financial advisor/friend recommended that the client take a certain asset, surrender it and pay the tax. As a result, he surrendered a traditional IRA and paid a tax on the surrender, because it was before he died. The financial advisor then advised him to transfer the traditional IRA to his children.

This turned out to be a huge and costly mistake.

Three or four months later, when he needed nursing home care, he rescheduled the appointment with the law firm. At that point he discovered that he had made a big mistake. He had taken a protected asset (the traditional IRA) and unprotected it. They had placed the money into two separate annuities, which, eventually, will have to be returned to his estate.

They lost approximately $50,000.

It would have worked out much differently had they contacted the law firm first.

The Russo Law Group helped the family come up with an estate plan. Then they were able to use a portion of the money to pay for their father’s care while protecting the remaining assets.

Everybody has their area of expertise. Ideally, these individuals or groups can work in conjunction with each other. As opposed to saying, “Well, this one is my friend and I trust him.”

If you would like to speak with an experienced elder law attorney regarding your situation or have questions about something you have read, please do not hesitate to contact our office at 1 (800) 680-1717. We look forward to the opportunity to work with you.

Disclaimer: The information provided above is for general informational purposes only and is not legal advice.