Michael B. Cohen's Latest Blogs

One of the most common dilemmas in estate planning is whether it is better to have a Will or a Revocable Living Trust (RLT). There are numerous types of trusts, but this article shall only address revocable living trusts since it is the most common type of trust.

The late weight savant Richard Simmons once said, “I don’t talk about my personal life, and I don’t talk about death.”  However, the recent lawsuit by Richard Simmons' housekeeper/manager, Teresa Reveles, to be reinstated as co-trustee (after she had signed a document to decline such a role) of his trust estate is the juxtaposition of Simmons’ quote. 

As we live longer, there is a greater likelihood of disability and the need for long-term care. However, most Americans have inadequate resources or income for such care and also lack long-term care insurance or similar insurance products. As a result, some elderly and disabled seek public benefits (such as Medicaid) to help defray such costs.

A Texas Court of Appeals recently ruled that JP Morgan Chase Bank should not be liable for permitting a withdrawal of funds to one “heir” as determined by an Order Approving a Small Estates Affidavit. 

Special needs trusts are often established for the benefit of individuals who are disabled since the assets held in the trust are not countable (if properly drafted) for means-tested Medicaid and Supplemental Security Income programs (which often include drugs and care costs).  The goal is to provide a higher quality of life for disabled individuals.