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Estate Planning After a Significant Health Diagnosis

The Elder & Disability Law Firm Dec. 4, 2024

A significant health diagnosis can be a life-altering event, bringing uncertainty and worry into your life. For many, this diagnosis prompts the realization that estate planning is no longer a task to postpone. Whether it is about taking care of your family, protecting your assets, or making your healthcare wishes known, estate planning is an important step.  

If you're dealing with a major health diagnosis and need peace of mind, you need a local firm that understands the complications of estate planning in California

The experienced attorney at The Elder & Disability Law Firm, APC take a personalized approach to planning, so you and your family are well-prepared for whatever lies ahead. Located in Redlands, California, the firm serves clients throughout Southern California, including Riverside, Rancho Cucamonga, and Palm Springs.

Why You Should Seek Legal Help for Estate Planning After a Diagnosis

If you're grappling with the implications of a serious health diagnosis, you're naturally feeling worried and overwhelmed by the number of decisions you need to make. From healthcare wishes to asset distribution, estate planning involves several legalities that can be difficult to manage alone. Here's how an attorney can help you: 

  • Address immediate concerns: A health diagnosis often raises urgent concerns about medical care, long-term living arrangements, and asset protection. An attorney can draft or update documents like healthcare directives, power of attorney forms, and wills to address your current needs.  

  • Simplify asset management: Effective estate planning eliminates confusion about who will manage your finances and property in an emergency. Attorneys can set up trusts or other legal frameworks to simplify asset transfers to loved ones or charitable organizations.  

  • Reduce stress for your family: A well-crafted estate plan reduces the emotional and financial burden on family members. By clearly specifying your wishes, you can alleviate the likelihood of disputes and lower the amount of stress your loved ones might otherwise experience.  

  • Help qualify for benefits: For seniors, qualifying for benefits like Medi-Cal can be important when dealing with the cost of long-term care. An experienced attorney can structure your plan to help you qualify while simultaneously protecting your assets.  

California Laws and Estate Planning After a Health Diagnosis

There are several California laws that impact the way you approach estate planning, particularly after a health diagnosis. Here's a brief overview of some that might come into play: 

  • Advance healthcare directives: Under California law, individuals can establish an advance healthcare directive to specify their medical wishes and appoint someone (a healthcare agent) to make decisions on their behalf. This document is essential for those dealing with illnesses that might impact cognitive or physical abilities.  

  • Medi-Cal planning: Medi-Cal—a California Medicaid program—is essential for those requiring long-term care. Legal guidance can help you structure your assets in ways that protect your eligibility for these benefits, as Medi-Cal has strict income and asset limits.  

  • Community property rules: California follows community property laws. Married couples should be cautious about how their property is divided or transferred after one spouse passes. Proper estate planning enables your assets to be distributed according to your wishes while complying with state regulations.  

  • Probate laws: In the absence of an estate plan, estates must go through the California probate process, possibly leading to delays and significant costs. Setting up a living trust is typically used to avoid probate and make asset distribution smoother.  

  • Conservatorships: When mental or physical impairments limit an individual's ability to make personal or financial decisions, a conservatorship may be necessary. California courts can appoint a conservator to manage personal and/or financial affairs.  

Proper estate planning can include provisions to prevent the need for conservatorship, so that your chosen representatives have the legal authority to act on your behalf. This process helps maintain autonomy and control over your private matters. 

Steps to Take When Estate Planning After a Diagnosis

Following a diagnosis, there are certain steps you should take to make sure your wishes are honored and your loved ones are cared for. These steps include:

  1. Update your existing documents: Review your will, healthcare directives, and powers of attorney to reflect your wishes regarding medical decisions, financial management, and distribution of property. If you don’t have these documents in place, this is the time to create them.  

  2. Create a living trust: A living trust is an effective way to hold your assets during your lifetime and transfer them to your beneficiaries without going through probate. This is especially helpful for protecting your privacy and expediting the distribution process.  

  3. Address your healthcare wishes: Establish an advance healthcare directive and designate a trusted individual as your healthcare agent. Discuss what kinds of treatments and interventions you would or would not want in various scenarios.  

  4. Evaluate your long-term care needs: Does your diagnosis suggest the possibility of needing assisted living or nursing care in the future? Explore options for financing these services, including private insurance, government benefits, and asset protection strategies.  

  5. Discuss your plans with your family: Open communication is important in estate planning. Discuss your plans with family members to eliminate misunderstandings and make sure everyone is on the same page.  

  6. Seek professional help: This phase of life calls for experienced legal guidance. An attorney can help draft the necessary documents and craft strategies tailored to your situation.  

Estate Planning Attorney Serving Redlands, California

The Elder & Disability Law Firm, APC aims to help create comprehensive estate plans to suit your needs. They strive to understand your concerns in the face of uncertainty, such as your worries about long-term care and how your assets will be managed. Their compassionate and thorough approach secures your future and reduces your stress. 

For residents of Southern California including Redlands, Riverside, Rancho Cucamonga, and Palm Springs, The Elder & Disability Law Firm provides the legal support your family needs to confidently move forward.