Burnett & Griffin, PLLCTaking The Worry Out Of Your Legal Challenges2024-02-28T06:10:52Zhttps://www.burnettgriffin.com/feed/atom/WordPress/wp-content/uploads/sites/1502322/2021/07/cropped-site-icon-32x32.pngOn Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2527442024-02-22T06:11:26Z2024-02-28T06:10:52ZUnderstanding VA pension benefits
VA pension benefits provide financial assistance to wartime veterans and their surviving spouses who have limited income and assets. However, to qualify for these benefits, veterans must meet certain criteria set by the Department of Veterans Affairs. These include certain income and asset limits.
The need for asset protection
For veterans in need of long-term care or assistance, managing assets becomes a priority. Without proper planning, they risk losing their assets to the high costs associated with long-term care. This is where a Veterans Asset Protection Trust comes into play.
Creating a Veterans Asset Protection Trust
A VAPT allows veterans to transfer assets into a trust, which managed by a trustee of their choice. By doing so, the assets held in the trust are no longer considered as part of the veteran's countable assets for VA pension eligibility purposes. This can help veterans qualify for VA pension benefits while preserving their assets for future needs, such as long-term care expenses or passing on an inheritance to loved ones.
Benefits of a Veterans Asset Protection Trust
One of the key benefits of a VAPT is asset protection. Assets held within the trust are under protection from creditors and Medicaid spend-down requirements. This allows veterans to retain control over their assets..
A Veterans Asset Protection Trust offers a valuable solution for veterans seeking to protect their assets while qualifying for VA pension benefits. By understanding the benefits of a VAPT and seeking guidance from financial advisors or estate planners, veterans can take proactive steps to safeguard their financial well-being in the later stages of life.]]>On Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2527432024-01-09T08:38:03Z2024-01-15T08:37:23ZA surging trend
Kentucky saw a notable surge in bankruptcy filings over the past two decades. The numbers paint a stark picture, revealing a 32% higher rate compared to the national average. This phenomenon raises questions about the economic landscape and the unique challenges faced by residents in the state.
Economic challenges
One contributing factor to the elevated bankruptcy rates in the state stems from persistent economic challenges over the years. Job instability, limited employment opportunities and fluctuating incomes have left many residents on uncertain financial ground. As a result, the necessity to seek relief through bankruptcy is more prevalent.
Impact of medical expenses
Medical expenses played a significant role in pushing many Kentuckians toward financial hardship. The lack of comprehensive healthcare coverage and unexpected medical bills are overwhelming for numerous individuals, leading them to explore bankruptcy as a means of financial recovery.
Housing market volatility
The housing market in Kentucky experienced periods of volatility, impacting the financial stability of its residents. Fluctuations in property values and housing-related costs added to the economic strain, forcing some individuals to seek refuge in the legal process of bankruptcy.
If you find yourself contemplating bankruptcy in Kentucky, know that you are not alone in facing financial challenges. The elevated bankruptcy rates in the state reflect the struggles shared by many. Individuals facing financial hardships may find solace in the fact that their experiences are part of a larger narrative.]]>On Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2527422023-10-31T01:03:41Z2023-10-31T01:03:41ZChapter 7 equity considerations
When filing Chapter 7 bankruptcy, the court orders the liquidation of any non-exempt assets to pay your debts. Kentucky has an exemption allowance for your home, but only if the equity you have in your home is below the exemption limit. Check the current exemption limit to determine your eligibility to keep your home.
Chapter 13 repayment plans
Chapter 13 provides the opportunity for restructuring your debts, which means you can keep your assets and repay them over a predetermined period. If you can make your required mortgage payments in addition to your bankruptcy repayment obligation, you can keep your home under a Chapter 13 bankruptcy.
Financial stability
One important factor in deciding to keep your home after bankruptcy is your financial position. Remember that keeping your home means making the mortgage payments in a timely manner. Consider the expenses associated with your mortgage, your bankruptcy settlement and any other obligations to ensure that you can meet those commitments.
Filing for bankruptcy provides you with the opportunity to reclaim your financial situation. The U.S. courts recorded more than 416,000 bankruptcy filings in 2023. If you are thinking about filing for bankruptcy but worry about keeping your home, evaluate your financial position carefully to ensure that you can meet the obligation.]]>On Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2527412023-09-01T20:39:09Z2023-09-01T20:39:09ZForeign Asset Protection Trusts
Foreign asset protection trusts can shield your international interests against potential legal claims. These trusts can help you navigate international laws and regulations.
Qualified Personal Residence Trust
The Qualified Personal Residence Trust, or QPRT, is an excellent option if you wish to continue residing in your home while also planning for its eventual transfer to your heirs. By placing your primary residence into a QPRT, you can ensure your loved ones inherit your home without the burden of excessive estate taxes.
Medicaid Asset Protection Trusts
By placing assets into this type of trust, you can safeguard your healthcare and Medicaid needs without depleting your estate. This can help ensure that you have assets to leave behind for your heirs, even if you have a complex medical situation.
Special Needs Trusts
A special needs trust provides ongoing financial support while preserving a family member's eligibility for special government assistance programs. These trusts offer a safety net, ensuring that your loved one receives the care they need without jeopardizing their benefits.
Spendthrift Trusts
Spendthrift trusts shield beneficiaries from their own financial irresponsibility. If you have concerns about leaving an inheritance to someone who might struggle to manage it, a spendthrift trust can provide structure and oversight.
Generation-Skipping Trusts
Generation-skipping trusts can facilitate the seamless transfer of assets from one generation to the next. These trusts minimize estate taxes and can benefit grandchildren or even more distant descendants.
Surveys show that as many as 67% of Americans do not have an estate plan. For those just getting started with legacy planning, as well as those expanding on an existing will, adding a trust can bring extra peace of mind.]]>On Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2527402023-07-01T05:03:54Z2023-07-01T05:03:54ZThe roles of grantor, trustee and beneficiary
The grantor of a VA asset protection trust is the veteran. The trustee is often a relative or friend chosen to control the trust and oversee the distribution of assets.
The beneficiaries are the grantor's children. Upon the grantor's death, the trustee makes all decisions regarding how to distribute the assets to the beneficiaries named in the trust documents.
You can also appoint a trust protector. The appointee has the power to remove a trustee and replace them if the trustee's actions are not in line with the trust's purpose.
VA asset protection and Medicaid
The most common reason people choose to place their assets in a VA asset protection trust is that it is usable in the Medicaid environment. For this reason, Medicaid applies a five-year lookback to VA asset protection trust holders. This means that the Medicaid office will evaluate the last five years during their financial analysis.
Therefore, once you create the trust and fund it with your assets, you will need at least five years to pass before applying for Medicaid benefits. Once the five-year mark passes, you are safe to apply for Medicaid without the assets in your trust impacting your eligibility.
A VA asset protection trust is often just one part of a full estate plan designed to ensure your plans come to fruition.]]>On Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2526552023-06-21T10:21:25Z2023-04-29T15:05:38ZWhat is a special-needs trust?
A special-needs trust is a tool for securing the assets a special-needs beneficiary will need for living expenses and care costs after a primary caregiver passes. Because the property placed in the trust does not directly belong to the beneficiary, it will not affect their eligibility for financially based government assistance.
What beneficiary factors need consideration?
When creating a special-needs trust, several factors warrant consideration, including the beneficiary's:
Age
Care requirements
Income and financial needs
Need for help to manage affairs
Each situation is unique and requires knowledgeable guidance to create a plan that adequately provides for the beneficiary.
What kinds of special-needs trusts are there?
There are three types of special-needs trusts. A first-party special-needs trust protects a beneficiary's money, such as large sums from a lawsuit, insurance payout or inheritance. Third-party special-needs trusts safeguard money that transfers from a grantor to the beneficiary. Pooled trusts employ the assistance of a non-profit organization to manage assets for a special-needs person in place of a designated trustee.
A thoroughly organized special-needs trust is a powerful tool to help provide for individuals who require a heightened level of care or need help managing their affairs after a primary caregiver passes.]]>On Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2526542023-06-21T10:22:51Z2023-02-28T01:41:43ZWhat is a VA trust?
A type of irrevocable trust, a veteran's asset protection trust contains assets that are irremovable once in place. The trustee decides on the usage of funds in a VA trust. The trustee may also appoint a trust protector who helps ensure the proper use of the assets in the trust. Older individuals may find this helps give them greater peace of mind about placing their funds in the trust.
Why set up a VA trust?
When deciding who qualifies for VA benefits such as various forms of pensions, veterans' existing assets play an important role. If a veteran's assets are beyond a certain limit, they may not qualify for VA benefits. Importantly, this can also apply to other benefits, such as those from Medicaid. If properly placed in a VA trust, assets may be exempt from determining a person's eligibility for receiving benefits, helping them to qualify when they otherwise may not.
Keep in mind that those interested in setting up a VA trust must handle the situation carefully. Penalties such as fines may result in certain situations. Taking the time required for the process helps ensure the trust functions as desired.]]>On Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2526482023-06-21T10:23:52Z2022-12-30T13:33:07ZProtection period from creditors
When you file your case, the court protects you from creditors. When you file, the court places a stay on all collections. That means calls, letters and garnishments will stop. It can also temporarily stop foreclosures, evictions and repossessions.
As soon as the court gives you a discharge, you will no longer need to pay these debts.
High success rates
Generally, if you have never filed for bankruptcy before and are honest during the proceedings, you will likely have your debt discharged within a few months. You can expect the court to grant you a discharge if you meet all of the requirements.
Property is often exempt
The court allows most people in chapter 7 bankruptcy cases to keep their property. This is because specific laws protect exempt property, and you can keep it. Exemptions can cover anything from your income to the kitchen table your grandmother left you.
While this is an option, there are many things to consider before filing for bankruptcy. First, think about your situation and your future goals. Then, conduct more research to learn about chapter 7 bankruptcy and determine if it is right for you.]]>On Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2526462023-06-21T10:24:42Z2022-10-31T19:40:01ZChapter 13 allows for unexpected changes
Even after filing for bankruptcy, sometimes the unexpected happens. Luckily, Chapter 13 provides some flexibility for these situations. For example, if you experience an unforeseen reduction in income or an increase in expenses, there are ways to amend your payment plan so that you can adjust your costs accordingly. Often, this involves lowering the monthly payments that you have to pay.
Unsecured debt payments are flexible
Another thing to keep in mind with Chapter 13 bankruptcy is the flexibility surrounding unsecured debt payments. When it comes to debt, such as outstanding credit card bills, this form of bankruptcy provides debtors with more options to prioritize the necessities in their lives, such as keeping their homes and vehicles while alternative plans exist for unsecured debt.
Getting out of debt is often a stressful process, but filing for bankruptcy can offer you more freedom and flexibility than you realize. If you want to keep your assets while paying back your debts, Chapter 13 may be the right solution for you.]]>On Behalf of Burnett & Griffin, PLLChttps://www.burnettgriffin.com/?p=2526442023-06-21T10:25:41Z2022-08-27T19:14:31Z1. Ensure your assets go to the right person
You do not want a court deciding who gets what. In the absence of a written estate plan, legal teams have to decide what the departed person probably wanted. They do their best, but the process is messy. You can use resources like the National Institute on Aging to review the types of important documents needed to allocate your assets correctly.
2. Save money on excess taxes
Anytime you transfer a large sum of money to a new bank account, Uncle Sam will notice and take his bite. The money or assets you intended for your loved ones may end up not being nearly as much as they deserve. An estate plan will help you set up special trusts that are not taxed as heavily.
3. Keep your family at peace
All too often, a grieving family experiences more heartbreak because there was no written plan for what to do with houses, property and assets. Writing a plan and filing it with the court ensures that at the moment of your death, there is a predictable and fair way to pass on what was yours. There will be no he-said / she-said because the written plan will specify everything. You can provide love and guidance to your family members by making your final wishes clear.]]>