Ask Liz Weston

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elder law attorney

Q&A: How to find an estate planning attorney

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Dear Liz: Is there a specific website to research estate planning attorneys in Southern California? Our attorney has retired and I elected not to have my file transferred to her successor attorney. Our trust documents are only six years old and there have been no material changes to our financial situation or beneficiaries.

Answer: The internet is overloaded with lawyer directories of limited value. Either the sites themselves are questionable or they return so many options that choosing feels like an impossible task.

So the best way to find a good estate planning attorney is the old school way: word of mouth. If you have a CPA or other financial professional, ask who they recommend. Know any lawyers? Check with them. Friends, relatives and neighbors also may be able to offer referrals.

Once you have a few names, the internet becomes a bit more helpful. The state bar of California offers an attorney search function that allows you to confirm the attorney’s license status, education and any disciplinary history. The attorney’s website can also provide information about their background, experience and approach.

Since estate planning is a complex area, you’ll want an attorney who specializes rather than dabbles. Ideally, estate planning is their sole or primary focus, not an add-on to other areas of practice. For more complex needs, you can consider seeking out an attorney who is certified by the California State Bar as an estate planning, trust and probate law specialist. If you need help with issues around aging, such as Medicaid planning, long-term care or protection against exploitation, consider seeking the help of an elder law attorney. You can get referrals from the National Academy of Elder Law Attorneys at www.naela.org.

Q&A: Reverse mortgages can be a boon, but come with potential risks

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Dear Liz: Please write about the issues people can face when they have a reverse mortgage and need to move out to get long-term care. My mother, who is now 94 and lives on a small teacher’s pension, got a reverse mortgage in her late 60s to donate to charity because she was sure she would not live past her 80s. Now she needs long-term care and does not have the funds for it. If she moves out, she is required to sell the home. The capital gains taxes will eat up any remaining equity after that reverse loan is paid.

Answer: A reverse mortgage can be a helpful tool for people 62 or older who are house rich and cash poor. These mortgages allow people to tap some of their equity without requiring that the balances be paid back until the borrower dies, sells the home or permanently moves out.

The problem is that the debt can grow over time and leave too little equity for late-in-life expenses, such as long-term care.

Of course, many people make the mistake your mother made by underestimating their longevity risk — the chance they’ll live longer than expected and run short of money. They focus on maximizing current income by saving too little, taking out reverse mortgages too soon or applying early for Social Security without fully considering what these decisions could mean for their future selves.

Please get your mother in touch with an elder law attorney who can assess her situation and suggest alternatives. He can advise her about qualifying for Medicaid, the government health program for the poor. Medicaid will pay for long-term care expenses but rules vary by state, and a mistake could delay her eligibility.