Legal Question in Wills and Trusts in Arizona
Grandmothers savings
My wife's 92 year old grandmother lives in Tuscon, Az. Her mobile home was so dirty the neighbors complained, police came and social services got involved. They attempted to put her in a home and seize her bank account. My inlaws cleaned up and were able to stave it off but the government claims that if she has to be institutionalized anytime over the next three years the funds are property of the state since she had no will or trust fund. Now a social worker comes by almost every week ''just to make sure she is doing ok''. Though old her mind is clear and she is in remarkably good health. Is there anything that can be done to protect her and her bank account so she doesn't have to worry about going in a home and losing all the money she wanted the family to have if she died?
2 Answers from Attorneys
Re: Grandmothers savings
The caseworker's assessment of the law is not one I would agree with. Everyone has an estate plan. If they have no estate planning documents (will, trust, etc.) then the laws of the state (inheritance laws) determine who will be the heirs after death.
She is not dead. She has a right to her own property. She can put it into a trust with a reliable family member as a trustee and then it cannot be taken from her. If she has to go into a home, and there are bills to pay for her care, that money might have to be used for that care, but the state does not confiscate funds that belong to someone who does not have a will or trust.
Your grandmother would probably benefit from a Durable Power of Attorney, designating an agent who could handle financial transactions for her if needed. And do not forget about a Personal Medical Directive and Medical Power of Attorney. These documents could save a lot of problems for your grandparents, and their family.
More information can be received on the Arizona Estate Law Resource at www.estatehelp.blogspot.com. And you are always welcome to speak with me at 480.835.1500 in a brief free consultation.
Best regards, hope this helps,
James D. Jenkins
Re: Grandmothers savings
Yes, while she is still competent to make a power of attorney, she should establish a durable health care power of attorney and a durable financial power of attorney. She should also have a Last Will that says what happens to her property when she passes away.
You were given bad information by the social worker. First, she can refuse to talk with the social worker or give her any information. She can refer the social worker to the one who has her power of attorney. The social worker visits should not be harassing or intrusive.
Secondly, to qualify for the state to pay for her care in an assisted living or nursing home, this is the ALTCS program, you can go to their website and see what is necessary to qualify, and planning can be done to protect as much of her assets as possible. Remember, the state is paying lots of money to take care of people who don't have anything. I don't want to pay taxes to support people who have money and can take care of their own expenses.
You should take immediate steps to protect her, setting things up so that she can live as independently as possible, and yet, she is not at risk if she were to fall and not be able to get up. Who would know of her plight, what would happen then?
This is very common planning that is done by many families and it is not expensive to do, but you must act now.
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