At some point in your life you may find yourself in this same position. A close friend or family member passes away, and you think there is a chance you just might be entitled to some piece of their estate. It may be something as small as a clock or piece of jewelry or it may be something as big as a house, a car, or chunk of money that could significantly change your life as you know it. Either way, if you are the beneficiary of the trust, you want to know, and you have a right to know.

Your first option for exercising this right is to rack your brain as hard as you to see if you can think of anyone you know who could potentially be beneficiary of the trust, then go to those people and ask them if they have a copy of the trust, and if they do, if they would be willing to give you a copy. If this option works, count yourself as lucky; you just avoided a huge amount headache.

If you aren’t fortunate enough to locate a beneficiary who is willing to give you a copy of the trust, then you next option is to write a letter to the trustee explaining the law to him and demanding that he send you a copy of the trust in the next thirty days or face legal action on your part. As a beneficiary of the trust, the trustee is required by law to not only send you notice that you are entitled to copy of the trust, but also, to give you an actual copy of the trust. See California Probate Code Section 16061.5 and 16061.7.

If the trustee doesn’t respond to the demand letter, you may end up having to go with option three instead. This option entails filing a petition under California Probate Code Section 17200. A 17200 Petition is a petition that is filed with the court asking them to force the trustee to give you a copy of the trust on the basis that you are a beneficiary of the trust and therefore have some interest in the deceased grantor’s estate.

Whichever option works is your best option. However, I would suggest starting with a few phone calls to any possible beneficiaries. If this doesn’t turn up anything, only then would I advise you to hire an attorney who can help you write a demand letter or a file a 17200 Petition.

According to the Los Angeles Times report, Lorraine Bayless, 87, died after a "nurse" employed by Glenwood Gardens (Bakersfield) told the 911 operator that facility policy prevented staff from administering CPR to residents.

The news reports are referring to the staff person as a "nurse," but I could not find independent corroboration that the employee was a trained nurse. However, I did find that Glenwood Gardens has a previous incident that should have been cause for alarm.

In 2008, Glenwood Gardens received a $100,000 fine - the maximum allowable - after the center's Skilled Nursing Facility allowed an 84-year-old Alzheimer's patient to choke to death on a ketchup packet. State investigators determined that the man had dementia and a history of attempting to eat non-edible objects. The facility failed to develop a care plan for the man, which led to his death in December 2006. The Incident Report states that, although the man was experiencing life-threatening symptoms, the facility did nothing for 12 hours until the man died.

The previous incident sheds some light on Glenwood Gardens' defense that Bayless' death last week occurred at an Independent Living Facility - where they claim to have no duty to provide emergency medical assistance. While that may be true, the 2006 death occurred in the SNF where they did have such a duty. The problems at Glenwood Gardens go beyond the standard of care.

In fact, I suspect that the hands-off policy may be related to the previous fine. It's just the kind of policy that an attorney might recommend to avoid responsibility for the next time the facility allows someone to die.

In my practice, I work with many seniors who are headed into an Assisted Living or Skilled Nursing environment. Our firm always recommends that families conduct a thorough background check on a facility before placing a loved one there. And, there is absolutely zero chance that I would recommend placing anyone in the care of a facility with a history of death by staff indifference. This most recent incident shows exactly why.

Seniors are the fastest growing segment of the population, not only in the United States, but in the world. Currently, individuals age 65 and over represent 13% of the U. S. population - about 41 million people - but this will grow to 20% -- 88 million -- in just a matter of 38 years. Seniors also control a great deal of the wealth in this country. (USNews)

Even though many seniors have put together financial plans or completed retirement planning, very few have a plan in place for later life needs.

Most healthy, active seniors ignore this type of planning. The need for later life planning is typically recognized when, due to the aging process,

• the senior's family realizes that their loved one's savings and investments will run out,
• the senior is moving into a new living arrangement such as living with a child or living in a facility,
• the senior's health is failing or
• the senior is losing his or her independence.

It is often at this point that one or more of the children of the aging senior intervenes and seeks direction from a resource planning specialist on how to extend income for long term care, where to find government and private services and how to preserve assets

An example of this is Larry and Joan. Larry worked for the same company all his life and retired with a pension and some savings. Joan was a stay-at-home mom and did not work.

Upon retirement they paid off their home mortgage and traveled. A number of years later, Larry's health began to fail and signs of dementia appeared. Joan became his caregiver, while struggling with her own health issues. It was becoming apparent that they would need some outside help, either from their children or from someone who understood their challenges. For Joan and Larry there was no health insurance program that would cover non-medical care services at home. This cost would have to be paid by them out-of-pocket. If they had purchased long term care insurance when they were younger and healthy - that would have been a good strategy. But they didn't. Larry and Joan, along with their children were in need of expert advice to best utilize their assets and income for care services and future expenses.

There are resources available to people like Larry and Joan and their family. New income can be created from assets or real estate equity can provide cash or there are possible new sources of income or care support services from certain government programs.

To find these resources and supportive programs for later life needs, planning strategies need to go way beyond traditional financial and retirement planning. The National Care Planning Council has developed a planning system called Life Resource Planning that uncovers all resources available to seniors when they need the medical, social, legal and financial resource assistance later in life.

Life Resource Planning creates an individualized plan for seniors and their families that will:

Optimize Income

• finding new sources of income
• finding government services to pay for costs
• enhancing income derived from assets
• tapping into real estate equity
• reducing income taxes

Protect and Preserve Assets

• making and updating legal arrangements
• implementing asset protection and estate planning strategies
• structuring insurance
• understanding and planning for Medicaid issues
• using personal service contracts
• implementing capital gains and estate tax strategies

Facilitate Favorable Outcomes for Health, Medical Issues and Final Preparations

• implementing strategies for improving or maintaining health
• understanding medical care issues
• planning for major medical incidents
• planning for end of life, including funeral trusts

Maximize Family and Community Support

• identifying community support systems for the elderly
• implementing personal service arrangements
• identifying government and private support for eldercare
• ensuring family consensus for caregiving -- a meeting of the minds
• putting together a eldercare plan
• solving family disputes over assets

Find the Right Living Arrangements

• identifying appropriate places to live, based on security, cost and support
• identifying government support for living arrangements
• tapping into equity
• enlisting help for downsizing and moving
• maximizing the sale of property

If you would like to know more about Life Care Planning, please contact us.

So, because I pretty much missed the "early bird" prize, I will share the short version: The estate and gift tax exemptions are now permanently set at $5.12 million per individual, with a tax rate of 40 percent above that.

Many individuals with large estates made significant transfers at the end of 2012 in anticipation of changes in the estate and gift tax system. We now know that those changes will not occur. Still, for most people, those transfers were not a mistake. Those assets are now outside of their taxable estates and will continue to grow over time. Under most scenarios, that will result in a far better outcome than leaving the assets in the estate until death.

Still, the new law does present one further consideration for those who made large gifts in 2012. The increase in the rate from 35 to 40 percent may make it beneficial to pay tax on the transferred property rather than use the gift tax exemption. If, for example, a person may consider making additional gifts down the road, paying the tax on this year's gifts would result in a five percent tax savings on the future gifts.

When someone dies, there is an amount they can exclude from the calculation of their taxable estate. Presently, that amount is $5.12 million. So, a person with an estate worth $6.12 million would subtract the exclusion and have a taxable estate of $1 million. However, when someone has made large gifts during their lifetime, the estate exclusion is reduced by the aggregated amount of the lifetime gifts.

The opportunity TODAY is that a person could give away $5.12 million (using lifetime gifting credit), pay no tax, and then die while the estate tax exclusion is lower than $5.12 million. More accurately, the opportunity is that they'll die while the estate tax exclusion is lower than the GIFT, whatever amount that might be.If someone gave away $500,000, for example, and they died with an estate exclusion of $1 million, then it didn't do them any good, at least as far as deductions go. However, if they give away $3 million and die with a $1 million exclusion, then they get a $2 million "tax-free" transfer that wouldn't have been available on their date of death.

But, that's not to say that there is NO benefit. Gifts are tax exclusive, and estates are tax inclusive. In other words, when you make a $1 million gift, you have to pay the gift tax on top of the gift. Assuming a 55% tax rate, that means you give someone $1 million and then you give the IRS $550,000. So, it costs $1.55 million to put $1 million in a beneficiary's hands.

Meanwhile, estate taxes are taken out of the estate. If you pass $1 million of taxable property, it is REDUCED by 55%. That leaves only $450,000 for the beneficiary. So, to put $1 million in a beneficiary's hands, you need to leave them more than $2.2 million.

So, gifts are far more efficient than estates.

Next, gifts exclude future appreciation as well. So, if you have rapidly-appreciating property, it's better to get it out of the estate now, rather than let it appreciate and dying with an even larger taxable asset.

As a general rule, I do not make cash gifts. Instead, I make gifts of business interests, which are subject to valuation adjustments (aka "discounts"). I only make those gifts to an irrevocable trust. (I might make a gift to a beneficiary directly, but I've never had a client who wanted to do that.)

To nutshell this, I am not getting worked up about making gifts smaller than $1 million - at least not before the end of the year. For gifts between $1 million and $3 million, I'm asking whether the client would make the gift anyway, even without the tax "bonus." If so, I'm doing them this year because of the POTENTIAL benefit. If the gift is larger than $3 million, I'm actively suggesting that clients make the gift now, whether or not the gifting was on their planning radar. For those clients, we are running a "Gifting Capacity Analysis" - i.e. can they make the gift without impacting their future financial situation? If so, it's pretty much a no-brainer.

In that last instance, the vast majority of the gifts are going into "Family Bank" trusts where the client's spouse is the lifetime beneficiary. If need be, we are situsing those trusts in jurisdictions with strong asset protection laws.

As I previously posted here, there are unprecedented estate tax and capital gains tax savings opportunities that are set to expire as part of the "fiscal cliff" at the end of 2012. Capital gains tax rates are increasing, estate tax rates are increasing and estate tax exemptions are decreasing. Plus, the Affordable Care Act (aka "Obamacare") added a 3.8% surtax on investment income for those earning more than $250,000.

In the end, Lucas likely avoided an 8.8% capital gains tax increase. The estate tax and gift tax exemption is also five times larger today than it will be in two months. All in all, selling now was a win for Lucas.

Of course, you don't have to be a multi-billionaire movie maker to take advantage of this. Planning now is a good idea for any business owner or investor with total assets (business included) in excess of $3-5 million.

For example, if you scan documents or receive financial statements electronically, someone else may not even know these exist. If you use a program like Quicken or Quickbooks and tax preparation software, those records are on your computer. Facebook pages, blogs, email accounts and photos stored digitally on a computer or an online account would certainly have special meaning to your family.

Much of this information is password protected. Unless we make arrangements in advance, family members or administrators may not be able to access these and the information could be lost forever.

Estate planning for digital assets and social media accounts is similar to estate planning for other assets. You need to make a list of what you have and where it is located, name someone (with computer and social media know-how) to step in for you, provide that person with access, and provide some direction for what you want to happen to these assets.

Listing your digital assets by category (hardware, software, social media/online presence, online accounts) will help make the task less daunting. Next to each one, add user names, passwords, PIN numbers and the site’s domain name. Keep this list in a safe place and tell your successor where it is. (Do not store it unprotected on your computer; if it is stolen, the thief would have all of your passwords. If you store it on your computer, password protect the file and give that information to your successor.)

Think about what you want to happen to these assets. For example, if you have a website or blog and you want it to continue, you need to leave instructions for keeping it up or having someone take it over and continue it. If a site is currently producing or could produce income (e-books, photography, videos, blogs), make sure your successor knows this. If there are things on your computer or hard drive that you want to pass on (scanned family photos, ancestry research, a book you have been writing), put them in a “Do Not Delete” folder and include it on your inventory list.

Closing down accounts that are no longer needed will help to protect your family from identity theft after you are gone. The person you name as your successor will need a death certificate to do this. Consider naming this person as a co-trustee or co-executor with responsibilities limited to this area to give them legal authority to act for you.

Yes, this will take some time and thought. But, just like “other” estate planning, the more we can do now to put things in order, the easier it will be for our families later.

Well, I just went through several hundred comments to delete the spam. Much to my surprise, there were several non-spam comments buried in there. I've done my best to sort out the legitimate comments and approve them. I've responded to most of them, too.

In the future, I'll do a better job of looking out for real comments and approve them more quickly. I apologize to those of you who took the time to comment, only to see those comments drop off into oblivion.

Pension with Aid and Attendance pays the highest amount and benefits a veteran or surviving spouse who requires assistance in activities of daily living (dressing, undressing, eating, toileting, etc.), is blind, or is a patient in a nursing home. Assisted care in an assisted living facility also qualifies.

Pension with Housebound Allowance is for those who need regular assistance but would not meet the more stringent requirements for Aid and Attendance, and wish to remain in their own home or the home of a family member. Care can be provided by family members or outside caregiver agencies.

Basic Pension is for veterans and surviving spouses who are age 65 or older or are disabled, and who have limited income and assets.

Qualifying for Benefits

A veteran does not need to have service-related injuries to qualify for these pension benefits, but must meet certain wartime service and discharge requirements. A surviving spouse must also meet marriage requirements to the qualified veteran. Certain requirements must be met for a disability claim if the claimant (the veteran or surviving spouse filing for benefits) is less than age 65.

When determining eligibility, the VA looks at a claimant’s total net worth, life expectancy, income and medical expenses. A married veteran and spouse should have no more than $80,000 in “countable assets,” which includes retirement assets but does not include a home and vehicle. This amount is a guideline and not a rule.

Income for VA Purposes (called IVAP) must be less than the benefit for which the claimant is applying. IVAP is calculated by subtracting “countable medical expenses” (recurring out-of-pocket medical expenses that can be expected to continue through the claimant’s lifetime) from the claimant’s gross income from all sources.

Note: It is possible to reduce assets and income to a level that will be acceptable to the VA. For example, excess liquid assets (such as cash or stocks) could be converted to an income stream through the use of an annuity or promissory note. However, because the claimant may need to qualify for Medicaid in the future, it is critical that any restructuring or gifting of assets be done in a way that will not jeopardize or delay Medicaid benefits. An attorney who has experience with Elder Law will be able to provide valuable assistance with this.

Applying for Benefits

It often takes the VA more than a year to make a decision, but once approved, benefits are paid retroactively to the month after the application is submitted. Having proper documentation (discharge papers, medical evidence, proof of medical expenses, death certificate, marriage certificate and a properly completed application) when the application is submitted can greatly reduce the processing time.

Veterans have to deal with high rates of Post-Traumatic Stress Disorder and often may have traumatic brain injuries or sexual trauma. Due to their experiences in war, Veterans may often want to be secluded and are more likely to live unsheltered and outdoors. According to the United States Interagency Council on Homelessness, Veterans are also most likely to experience long-term, chronic homelessness.

Generally, a homeless person is expected to have not graduated from high school, but studies show that 85% of homeless veterans have completed high school or received a GED. On the other hand, only 56% of non-veteran homeless have completed high school. Furthermore, our homeless veterans were not necessarily the 'problem soldiers' in the army. Eighty-nine percent of homeless veterans received Honorable Discharges and 67% served in the military for three or more years.

These men and woman risked their lives for our country. They gave of their time and their service honorably and without question. And now, nearly half of them are living alone on the streets, not knowing how to get the help they deserve.

When faced with these statistics, most peoples' attention immediately turns to the government. They ask questions like "Why would the government allow their own veterans to suffer and beg on the streets?" and "Why has our government failed to help our homeless veterans?"

We may not currently see a large impact from government programs, but they are there, and they are helping. Our government cares about our veterans and so does our President. In 2011, President Obama set the goal to end chronic homelessness among veterans by 2015. When he set his goal, Obama implemented the plan entitled Opening Doors. Opening Doors is a federal strategic plan to prevent and end homelessness within five years.

Opening Doors implements five points. The first is to provide affordable housing to veterans and then second to provide permanent supportive housing. Supportive housing is shown to be a most affective bridge between homelessness and independent housing. A study was conducted as part of the Federal Collaborative Initiative to Help End Chronic-Homelessness, and it concluded that 95% of the participants were in independent housing after one year in a permanent supportive housing arrangement.

The third point is to increase meaningful and sustainable employment. It is important that the job a veteran receives matches his/her skills so that they feel their work is meaningful and that they are needed to remain in the job for a long period of time. The fourth point is to reduce financial vulnerability by enhancing information, reducing barriers, and improving access to services. This point emphasizes making homeless veterans aware of the government programs available to help them.

The fifth and final point is to transform the homeless crisis response system. This is the point at which the government transfers its burden to the community. There needs to be a quicker response to homeless veterans showing up in a city. People need to take notice and spread the word to these veterans about the help that is available to them. The community also needs to be involved with re-housing. The veteran will feel a greater connection to the community reaching out to them rather than the government.

Government programs are fantastic, and they are helping many veterans, but according to the National Coalition for Homeless Veterans, the VA Department of the United States is only able to serve about 25% of the veterans in need. This would leave approximately 300,000 veterans each year who are left to seek help elsewhere. When the government's reach cannot go any farther, the community has an obligation to step in.

These 300,000 veterans who are not able to receive help from the VA will turn to local government agencies and volunteer organizations. They will turn to their community for help. The National Coalition for Homeless Veterans states that the most effective programs are "community-based, nonprofit, 'veterans helping veterans' groups."

The community and the individual within that community has a chance to help decrease the amount of homeless veterans. Our veterans gave their all for our country; it's time that we take a moment to give back to them. The largest problem is a lack of information. In this area, community outreach can make a big impact on the amount of homeless veterans that are receiving help. Many veterans seclude themselves. According to a study of homeless veterans, 96% of them are alone rather than part of or near family. They don't have anyone else, and many of them have no idea that there is so much help available for them. Beyond government programs, there are countless volunteer organizations and also local government agencies. It is the responsibility of the individuals within a community to help spread the word of relief to the veterans who are currently without family and without a home.

You can find more information on the government's plan to end veteran homelessness as well as information on what you can do to help the homeless veterans in your community by following this link: http://www.va.gov/homeless/for_the_community.asp