News & Resources: Blog

Get to Know Estate Planning Documents

Published: April 15, 2021

In our last blog post, we discussed what Estate Planning is and how an Elder Law Attorney can help you and your family develop a plan that provides protection and peace of mind. We mentioned that when creating an estate plan the list of documents involved can be quite long and, to some, even overwhelming. Having a basic understanding of these documents and what they mean allows you to feel comfortable when first talking with an attorney. Below are the two most common types of Estate Planning documents you will encounter and a brief explanation of what they mean.

Common Estate Planning Documents

  • Wills & Trusts– While often grouped together, there are differences between Wills (often known as Last Will & Testament) and Trusts. A Will should, at a minimum, include the naming of an “Executer”, how taxes and debt are to be paid, the naming of a guardian for minor children, and asset and property distribution. A Living Trust, on the other hand, is created to keep your information private and to protect property and assets held within your estate during your lifetime. A Trust is funded by assets that you possess, such as property, land, stocks, bonds, and bank accounts. It is a legal document that allows a trustee (third party), to hold assets on behalf of a beneficiary or beneficiaries. A Trust also allows you to set up the timed disbursement of inheritance, avoid probate and probate court, reduce your exposure to lawsuits from creditors, decrease your estate taxes, and the ability to set up lifelong access to your assets for your special needs child/adult.
  • Power of Attorney- Power of Attorney (POA) is often established when a senior of sound mind can appoint a person to act on their behalf, giving that person the “powers” to make decisions on his or her behalf. When a person grants another person the responsibility of being their Power of Attorney (POA) that person needs to find out what authorities were granted to them regarding the person’s medical and financial decisions. There are two types of Power of Attorney. A “durable” Power of Attorney, which does not terminate if you become disabled or incapacitated, is a written document that authorizes another person (grantor/principal) to represent or act on your behalf in private affairs, business matters, or other legal matters. A Health Care Power of Attorney designates a representative or agent to advocate for you when you are unable to make or communicate health care decisions. The person you select should be someone you trust (family member relative, friend, co-worker, doctor, nurse) to act as your agent if you are unable to speak for yourself.

While there is more involved in regards to Estate Planning, these are the most common documents you will come across. At Scott Bloom Law, we develop plans for each client and their families based on their specific needs.

At Scott Bloom Law, we are a team of advocates who care, always fighting for what’s best for our clients and their families. With knowledge, experience, and compassion, we strive to find solutions that make the aging process as emotionally and financially easy as possible. Visit us at scottbloomlaw.com or call 215-364-1111, to talk to find out more.

CLIENT Testimonial

It can be quite confusing to determine which Medicare plan is best for you. There are several types of plans, and each has its own advantages and disadvantages. Understanding some basic features will help you decide how to maximize your healthcare dollars and choices. You should review your choice periodically, especially as elements of the Inflation Reduction Act of 2022 change prescription medication and vaccine policies. Coverage can also change from year to year..

There are three basic types of plans:

  1. Original Medicare
  2. Medicare Advantage
  3. Medigap

Original Medicare

Medicare is a government health insurance plan for people 65 and older. Original Medicare, sometimes called traditional Medicare, comes in several parts. Each part covers different things and has various associated costs. 

Most people do not pay for Part A as it was deducted from their taxes paid while working. It is primarily for hospital visits and nursing care. However, there are many fees associated with being in a hospital that Medicare does not cover, which you still might have to pay out of pocket.

Part B requires monthly premiums, which can be deducted from your social security. You can elect to enroll in part B through Original Medicare. It covers a portion of doctors' visits, durable medical goods, and more. 

Part D covers the cost of many prescription medications. You can add it to Original Medicare or purchase it as part of a Medicare Advantage plan.

Medicare Advantage

Medicare Advantage is offered through private insurance companies that Medicare approves. Most plans include Parts A, B, and D of Original Medicare with some variations from the original. There are a wide variety of Medicare Advantage plans, including Preferred Provider Organizations (PPO) or Health Maintenance Organizations (HMO). PPOs tend to have higher premiums and offer more choices than HMOs. Medicare Advantage HMOs and PPOs often have higher premiums than traditional Medicare because they usually cover more expenses, including prescription drug costs, vision, hearing, and dental.

However, the overall costs, premiums, plus out-of-pocket expenses for Advantage plans can be lower than Original Medicare because the private insurers manage patient care and limit choices. They assemble networks of hospitals and physicians to control their costs and reduce their customer's premiums. They also restrict access to certain providers and increase the cost of care obtained out-of-network.

Traditional Medicare allows people to seek care from any provider participating in Medicare, which includes virtually all hospitals and physicians.

Medigap

Medigap is a co-insurance or supplement to Original Medicare. You can enroll when you first enroll in Part B. It is also available through Medicaid, a union, or a former employer when you qualify for both programs. You can’t have both Medicare Advantage and Medigap plans. Medigap helps cover expenses that Original Medicare does not cover, such as co-pays and deductibles. Due to the enrollment restrictions, you should strongly consider Medigap when you first become eligible.

The Right Choice for You

With all the different plans, parts, choices, and restrictions, it is crucial to consider your priorities for care. Limited access to doctors and hospitals may become important if you need specialized medical care, such as cancer treatment. Before enrolling, consider what specialty hospitals are included in Advantage plans. Likewise, Advantage plans can make it difficult to see a specialist for ongoing and chronic conditions due to limitations in long-term care services. An estate planning lawyer or elder law attorney can help address long-term care planning and the potential to qualify for Medicaid when necessary.

The Kaiser Family Foundation has put together a cost analysis to help you determine when Medicare Advantage would save you money. As you can see, the longer you stay in the hospital, the less advantageous an Advantage plan becomes.

Consumer Reports notes that the JAMA reported that seniors on Advantage plans often get more preventive care than those on traditional Medicare plans. JAMA published a comprehensive paper about how Medicare plan choice affects spending and discovered that Medicare Advantage enrollees usually spend less.

Consumer Reports notes that the JAMA reported that seniors on Advantage plans often get more preventive care than those on traditional Medicare plans. JAMA published a comprehensive paper about how Medicare plan choice affects spending and discovered that Medicare Advantage enrollees usually spend less.

A Guide in Choices after 65

Enrolling in the right Medicare coverage is one of many decisions that will affect your quality of life in your senior years. We are here to help you navigate a wide variety of choices.

If you have questions or would like to discuss your legal matters, please do not hesitate to contact our office at 215-364-1111 to schedule a consultation.

- Medigap, Medicare Advantage, and Traditional Medicare

Schedule Your Free Consultation

At Scott Bloom Law, we strive to provide excellent client service and will contact you as soon as possible. Send us an email, or call us to speak to someone directly.

CLIENT Testimonial

Our family had the good fortune to find Scott Bloom.  He was invaluable helping us set up our trust. We had an unexpected health crises and realized that we had nothing in place to protect our children.  Scott explained our options and got the necessary paperwork ready for us to hand to our family, accountant and banks. Scott was absolutely the right attorney at the right time for us. We would highly recommend him and his team.
- Tricia B., Hamilton, New Jersey