November 22, 2013
As we have been writing about for some time now, the new Wisconsin Budget Bill has created a number of significant challenges for protecting assets with estate plans. As implementation of the new bill is rolled out, the estate planningPlanning in advance of disability, incapacity, or death to make sure that key life issues have been addressed while the person is still of sound mind and able to understand and sign key documents such as Power of Attorneys, Power of Attorneys for Health Care, Wills, and Trusts to form a strategy and provide for the administration and disposition of his or her assets upon death or upon incapacity. lawyers at Wokwicz Law Offices have become particularly concerned about some of the implications of the new bill as they relate to married couples, especially married spouses in second (or subsequent) marriages.
Protecting Assets from Nursing Homes
Under the previous law in Wisconsin, a healthy spouse could protect assets from nursing home bills in the event of the death of their institutionalized spouse. For example, Tom and Mary are married and are each others’ second spouse. Mary becomes ill and requires nursing home care. As Mary does not have sufficient finances to pay for her nursing home care, the State of Wisconsin provides support to do so, provided that Tom’s assets do not exceed the exemptions allowed. (This is an oversimplified example, but it stands for the purpose of this explanation.)
Stop Nursing Homes From Taking Your Assets
With proper advanced planning, you can protect your assets from nursing homes.
Before the new Wisconsin Budget Bill, if Mary were to pass away before her husband Tom, the State of Wisconsin would not have gone after Tom and his own, individual assets to recover against the cost of paying for Mary’s nursing care home. A proper estate plan would have done a good job protecting assets for Tom, his children and grandchildren.
The State Has Made Protecting Assets Difficult for Married Couples
Under the new Budget Bill, Tom’s individual assets are now subject to cover the costs that the State of Wisconsin paid for Mary’s nursing home care. In effect, this makes it very difficult for Tom (the surviving spouse) to leave his assets to his own children or grandchildren.
As we study the new law and its implications, we are advising our clients on a number of strategies to help address these very significant “estate recovery” concerns. One such vehicle of protection is a marital property agreementA document created by married persons in advance of marriage (prenuptial agreement) or following marriage (post-nuptial agreement) to agree with or alter the pre-set Wisconsin Marital Property laws. A Marital Property agreement can also be used to direct that property, upon death of one or both spouses, shall be distributed to a trust or person to avoid probate. In Wisconsin, a Marital Property Agreement can be used to help fund a Revocable Trust at the death of a spouse of both spouses to avoid probate and can be referred to as a Non-Probate Marital Property Agreement. which could be entered into before or after the date of marriage.
To be perfectly frank, the estate planningPlanning in advance of disability, incapacity, or death to make sure that key life issues have been addressed while the person is still of sound mind and able to understand and sign key documents such as Power of Attorneys, Power of Attorneys for Health Care, Wills, and Trusts to form a strategy and provide for the administration and disposition of his or her assets upon death or upon incapacity. implications for married couples, especially those couples in a second marriage, are very troubling as a result of this new law. We would particularly advise married couples to consult with a qualified and experienced estate planning lawyer as soon as possible.
To schedule your estate planningPlanning in advance of disability, incapacity, or death to make sure that key life issues have been addressed while the person is still of sound mind and able to understand and sign key documents such as Power of Attorneys, Power of Attorneys for Health Care, Wills, and Trusts to form a strategy and provide for the administration and disposition of his or her assets upon death or upon incapacity. review, please contact us today on 262-658-2181 or by sending an email to info@wokwicz.com.