If you have an aging parent who is starting to need help managing her affairs, then it’s very important that she does her estate planning sooner than later. Preparing a revocable living trust will save you and your siblings lots of money, time and hassles when it’s time to administer your mother’s estate.
But as important as a living trust is, it may be even more important for your mother to execute a comprehensive durable power of attorney. A durable power of attorney will authorize a loved one to manage your mothers finances and assets if she is no longer able or willing to. Without a durable power of attorney, your mother could be subject to a very intrusive and expensive conservatorship if she eventually looses her mental capacity.
If your father may need skilled nursing care, it may be possible for him to qualify for Medi-Cal. If he qualifies for Medi-Cal, the state of California will pay for his care. The average California skilled nursing facility charges approximately $8,000 per month. However, it may not be easy to qualify for Medi-Cal benefits, and often it takes a good amount of planning. The earlier your father starts the Medi-Cal planning process, the easier it will be to position his assets to qualify.