Q: Does my elderly mother need a will/living trust?

A: The issue is whether we need to protect that money from long term health care. That is a crap shoot to some extent, so it depends on mom's age and health. But if it goes into an irrevocable trust and is in there 30 months then it becomes invisible to the government when they look to see if Medi-Cal will pay for her nursing care.

You are right about the Will issue, but I would still have her execute a simple one you can find on line.

A: Let me start by saying Wills do not cost thousands of dollars. If that’s what your mother was quoted, then your mom needs to shop around. Secondly, whether or not a sibling takes part in a parent’s healthcare has nothing to do with who inherits the parent’s assets. Inheritances aren’t earned. They are gifts from the person who owns the assets. The only questions are: (1) to whom does the parent want to give each of her assets; and (2) is the parent being coerced or forced to do something with her assets that she would not voluntarily do if given the free choice? Once we have the answers to those two questions, we can go on to your question. If your mother’s assets do not have a collective dollar value of at least $184,500 then, most likely, your mother does not need a trust — although no attorney could say that definitively without first speaking with your mom. Whether a Will would be good also depends on to whom your mother wants to give her assets. Tell your mom to contact an estate planning attorney who can ask your mom a few questions and make a recommendation.

A: Having a will or a living trust for your elderly mother, even if her only asset is the money in a joint bank account with you, can be beneficial. While joint accounts typically transfer directly to the surviving account holder, some potential issues may arise in the future.

Here are a few reasons why it's worth considering estate planning:

Clarity and Intent: A will or living trust ensures your mother's wishes regarding asset distribution are clearly stated, preventing conflicts among family members.

Contingency Planning: If you're unable to access or manage the joint account, a will or living trust provides an alternative plan for asset distribution.

Healthcare and End-of-Life Decisions: These documents can include healthcare directives, allowing your mother to express medical treatment preferences and appoint a trusted person to make decisions if she becomes incapacitated.

Simplified Administration: Regardless of the current simplicity of your mother's estate, unexpected circumstances can arise. Having a will or living trust can streamline the estate administration process in the future.

While there may be costs associated with creating a will or living trust, it's best to consult with estate planning attorneys to obtain estimates based on your mother's specific situation.

Ultimately, the decision to proceed with estate planning should be based on your mother's preferences and circumstances. Discussing this matter with her, considering her desired asset distribution and healthcare decisions, can be helpful.