In previous posts, we have discussed the manner in which comprehensive estate planning can be hugely beneficial with regards to divorce. Recently, we mentioned that property in California can be protected from divorce proceedings and subsequent property division through an asset protection trust. Previously, we have also discussed the manner in which an individual can continue to provide for the financial health of both a second spouse and children from a first marriage by utilizing a qualified terminable interest property trust.
However, it is not just property, assets and the continued wellbeing of loved ones that careful estate planning can account for following a divorce. Many individuals plan on a spouse ensuring their wellbeing later in life, but not everyone in Los Angeles chooses to remarry following a divorce. This means that after a divorce, it can be critical to take a look at planning for long-term care.
Many resident of California might think that worrying about this seems silly because they falsely believe that Medicaid will cover long-term care expenses for an accident or illness. Unfortunately, there can only be limited short-term coverage in select hospitals and facilities. Medicaid does not cover the long-term care expenses many residents assume that it will.
Instead, it is best to purchase a private insurance policy as a component of comprehensive estate planning to fund these future needs for long-term care. An aspect of this can be utilizing a life insurance trust, as well as drafting and executing a will. Through the process of estate planning, an attorney can also assist an individual in appointing powers of attorney.
An experienced estate planning attorney can be vital in assisting an individual navigate the complex estate planning ramifications that can follow a divorce.
Source: Los Angeles Times, "Five ways divorce will impact your finances," Stuart Pfeifer, March 28, 2013