Case Studies  

The Estate Plan that Failed

   Ellie was a widow and had five children.  She wanted to have an estate plan that benefited all of her children.  One of her children, Mary, was an alcoholic and could not manage her money.  Ellie worked with her attorney to establish a spend thrift trust. Ellie was pleased with her plan and put it aside.  Then Ellie became ill and after an extended illness she died.  Unfortunately the picture for Mary had changed dramatically from the initial will drafting.  Her alcoholism had progressed to end stage liver disease.  After multiple hospitalizations she was placed in a nursing home to live out the rest of her days.  Public aid was in place to pay for her medical care and the nursing home.  The inheritance of $200,000 disqualified her government entitlements.  The family contacted LCI to create a plan for the spend down.  If only it was a special needs trust, but it was not.  LCI contacted public aid to discuss the situation. They requested LCI to write a medical and social history and create a care plan.  They would then consider a reformation of the trust post death.  The attorneys prepared all the documents and then it was up to the courts to approve the change.  The court approved the reformation, the public aid was preserved, and money is available to supplement her care. back. . .