What is a recent “hot topic” encountered in the elder law practice? by Kurt R. Bachman

Too often we see wealthy widows and widowers preyed upon by a subsequent non-wealthy significant other who abuses a romantic relationship to gain access to the finances and real estate of the wealthy significant other. The dilemmas of these situations are obvious and difficult. For example, the wealthy widow/widower is emotional from the loss of their first spouse but finds comfort in someone who comes along and pays attention to them. Over time, trust is built, and the widow/widower marries the subsequent non-wealthy significant other who eventually gains access to the finances and real estate of the wealthy significant other, convincing the wealthy widow/widower to add the subsequent non-wealthy new spouse to titles, name that person as beneficiary, and/or add that person as P.O.D. /T.O.D. beneficiary. As long as the wealthy spouse is competent, the family is at a loss and is defenseless against this activity. In addition, accusing the non-wealthy subsequent spouse of wrongdoing generates hostility in the family. As such, planning ahead early for this possible scenario upon the death of the first wealthy spouse is critical. This type of planning should occur immediately after the death of the first wealthy spouse. Such planning includes transferring assets to Irrevocable Trusts, LLCs, and/or Family Limited Partnerships. These types of entities can designate individuals to rearrange the assets of the wealthy widow/widower in a manner that does not deprive that widow/widower of his or her dignity, current standard of living, or flexibility when it comes to the ultimate distribution of assets at the second wealthy spouse’s death. Failure to plan in this regard can make the wealthy widow/widower a target for nefarious relationships that follow.