The Dayton Law Firm, P.C.
408-758-5750

Modifying Estate Plans in the Face of Catastrophic Illness

The "I Love You" plan. Husband executes a will leaving everything to wife. Wife executes a will leaving everything to husband. Everything is left to children in equal shares when both parents die. For good measure, we title the assets jointly with right of survivorship (house, bank accounts, stocks, bonds) or designate the spouse as beneficiary (IRA's, life insurance, annuities) so that there isn't even a probate estate when the first spouse dies. Why is this plan so popular? It's because that is what most people want.The problem comes when one spouse becomes ill or debilitated to the point he cannot care for himself. The spouse may become so ill as to require nursing home care now or in the future, especially if the caregiver spouse passes away first. Then, the "I Love You" plan becomes the worst of all possible plans because leaving everything to the ill spouse, in essence, means leaving everything to the nursing home to pay for the spouse's care. Planning ahead is essential to protect assets for the family.

No Comments

Leave a comment
Comment Information

Schedule A Free Initial Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email us for a response

The Dayton Law Firm, P.C.
1754 Technology Drive
Suite 230
San Jose, CA 95110-1319

Phone: 408-758-5750
Fax: 408-437-7509
San Jose Law Office Map

Directions To Our Office Door