Table of Contents

• The Case Study: Maria and Joseph
• What Happens Without a Plan
• The Four Ways to Pay for Long-Term Care
• The Emotional Toll and Financial Risk
• The Harsh Reality of Probate
• How a Living Trust Changes Everything
• Broader Protections for Families
• Why Wills Alone Aren’t Enough
• The Danger of “Do It Yourself” Shortcuts
• The Five-Meeting Process
• The Cost of Planning vs. the Cost of Waiting
• A Legacy of Care

When most people think about estate planning, they imagine it’s something far-off, reserved for the wealthy, or perhaps a chore that can be pushed to the bottom of the to-do list. Yet for families across America, failing to create a clear plan can lead to years of stress, court battles, and unnecessary expense. A recent webinar hosted by attorneys AG and Justin Kennedy illustrated this vividly through the story of Maria and Joseph, an ordinary couple who worked hard, raised children, and built a nest egg of about $3.5 million. Their story shows just how quickly things can unravel without the right planning—and how a comprehensive living trust can protect not only assets but also dignity, family relationships, and peace of mind.

The Case Study: Maria and Joseph

Maria and Joseph had built a good life together. They owned a home valued at $2 million and had accumulated another $1.5 million in investments, retirement accounts, and cash. Together, their estate totaled $3.5 million—a significant achievement, but not unusual for couples who spent decades working and saving. They had two children. Anna was the “golden child,” a responsible accountant with a family of her own. David, on the other hand, struggled with debt and poor financial decisions, which left him vulnerable to creditors. Like many parents, Maria and Joseph wanted to provide for both children, but they also worried about what would actually happen when they were gone.

On their retirement to-do list, Maria and Joseph included things like exercise, travel, volunteer work, and—at the very bottom—“create a living trust.” They knew it was important, but like many people, they put it off. Unfortunately, their procrastination left them exposed to the very scenarios they had hoped to avoid.

What Happens Without a Plan

Joseph eventually suffered a stroke that left him incapacitated. Because the couple had not set up legal documents to grant Maria authority, she couldn’t simply step in to manage his finances or medical decisions. Being married was not enough. The only option was a court conservatorship—a process where a judge determines who can make decisions for an incapacitated person.

The conservatorship was costly, emotionally draining, and humiliating. Every detail of Joseph and Maria’s financial life, from how much they paid their gardener to how they spent their monthly budget, became part of the public record. Each spouse required separate attorneys to avoid conflicts of interest, and annual accountings to the court added ongoing expenses. Eventually, Maria was appointed Joseph’s conservator, but the process left her exhausted.

As Joseph’s condition worsened, he required care in a skilled nursing facility. The costs were staggering—between $15,000 and $24,000 per month, easily totaling hundreds of thousands of dollars for a typical one- to three-year stay. Maria managed to secure a facility for $18,000 per month, but the question quickly became: how would they pay for it?

The Four Ways to Pay for Long-Term Care

The attorneys explained there are only four options for covering long-term care:

1. Private pay – using personal savings until the money runs out.
2. Long-term care insurance – if purchased early in life and maintained, though many never buy it.
3. Medicare – limited coverage, usually only up to 100 days following a hospital stay, with patients paying substantial daily co-pays after the first 20 days. Beyond 100 days, Medicare covers nothing.
4. Medicaid – the joint federal-state program that does pay for long-term custodial care, subject to strict eligibility rules. Contrary to popular belief, families do not need to be completely destitute to qualify; eligibility is based largely on income, and special planning can help protect assets.

Maria eventually applied for Medicaid on Joseph’s behalf. His $3,000 monthly income went toward the facility, and Medicaid covered the remaining $15,000. This spared Maria from draining their joint savings. But the story didn’t end there.

The Emotional Toll and Financial Risk

While Joseph was in care, Maria passed away first—an all too common occurrence for family caregivers. Their home and accounts, held jointly, passed directly to Joseph by operation of law. Retirement accounts listed Maria as the beneficiary, so again they shifted automatically to Joseph. On paper, probate was avoided. But since Joseph remained incapacitated, the family had to return to court for yet another conservatorship.

This time, a battle erupted between Anna and David. David, still living in the house and struggling financially, wanted control. Anna, fully aware of her brother’s history, opposed him. Both had to hire lawyers, disclose private family matters, and let a judge decide. Eventually, Anna was appointed conservator, but the conflict left wounds in the family.

When Joseph later died, probate became unavoidable. Joint tenancy only delayed the process; it never eliminated it. With no trust in place, all of Joseph and Maria’s assets went through the public probate system.

The Harsh Reality of Probate

Probate is designed to validate wills, settle debts, and transfer property. But in practice, it is slow, expensive, and invasive. A typical probate can last 18 to 36 months, sometimes longer if disputes arise. Fees are calculated on the gross value of the estate, not the net equity. For Maria and Joseph’s $3.5 million estate, probate costs were around $96,000—half of which went directly to the executor, on top of any inheritance that executor might already receive.

Even worse, probate opened the door to creditors and predators. David’s creditors swooped in before he could touch his inheritance. What remained, he squandered on a dubious “investment” pitched by a friend. Anna, responsible and careful, deposited her inheritance into a joint bank account with her husband. A year later, during a divorce, he emptied the account. In the end, neither child retained the legacy their parents worked so hard to build.

How a Living Trust Changes Everything

The attorneys then rewound the story, asking: what if Maria and Joseph had created a comprehensive living trust?

In this alternate version, they met with estate planning attorneys to design a plan tailored to their needs. They discussed their finances, their health concerns, and most importantly, their wishes for their children. Following the “rule of three,” they named multiple backups for financial agents, medical decision-makers, and beneficiaries to prepare for every scenario. They funded the trust by transferring their home, retirement accounts, and other investments into it. Business continued as usual—they could buy, sell, or refinance property just as before—but now their wishes were legally documented.

When Joseph suffered his stroke, Maria seamlessly stepped in as his decision-maker. No court process was required. Later, when he needed skilled nursing care, the trust included “Medicaid triggers” that allowed assets and income to be structured in ways that protected Maria’s financial stability. She retained access to Joseph’s income, while Medicaid covered the bulk of his facility costs. Their home and other assets remained shielded from Medicaid estate recovery liens because they were properly titled in the trust.

When Maria passed away, the trust’s successor trustee—Anna, as chosen years earlier—took over without court involvement. When Joseph later died, assets again passed smoothly, bypassing probate entirely. The trust kept family affairs private, safeguarded Anna’s inheritance from divorce, and placed David’s share under the management of Uncle Albert, someone Maria and Joseph trusted. David could benefit from his inheritance for health, education, maintenance, and support, but creditors and reckless spending were blocked. For the first time, David was protected from his own worst impulses.

Broader Protections for Families

Living trusts also allow for advanced planning that most people don’t realize they need until it’s too late. For example, a trust can include special needs provisions so that if a beneficiary has a disability or becomes disabled later in life, their inheritance supplements government benefits instead of disqualifying them. It can also control at what age younger beneficiaries gain full control of funds, ensuring maturity before responsibility.

Trusts can even address tax efficiency. At the federal level, estates below a multi-million-dollar exemption amount are free of estate tax, but that exemption may change in future years. Married couples can use trust structures such as “AB” or “Clayton AB” trusts to preserve both spouses’ exemptions and protect assets for children of blended families. Trusts can also ensure that capital gains receive the most favorable tax treatment by properly structuring ownership.

Why Wills Alone Aren’t Enough

Some people assume that writing a will is sufficient. A will does allow someone to nominate an executor and specify who inherits what. But wills only take effect at death, and they always require probate. They do not protect against conservatorships if someone becomes incapacitated. They also do nothing to shield inheritances from creditors, lawsuits, or divorce. For families like Maria and Joseph’s, a will alone would not have prevented the costly and painful court battles they endured.

The Danger of “Do It Yourself” Shortcuts

The attorneys emphasized caution about cutting corners. Too many families rely on outdated 20-page trusts downloaded from the internet or created decades ago when laws were different. Modern trusts run 80 to 100 pages because they account for “what-if” scenarios: what if a child divorces, what if a beneficiary becomes disabled, what if one spouse remarries, what if Medicaid is needed. Skipping those provisions can cost families far more than the initial savings of a simple document.

They also warned against casually adding children or relatives as joint owners on bank accounts or property deeds “just in case.” Doing so not only creates risks with creditors but can also unintentionally disinherit other family members. A carefully drafted trust avoids those pitfalls while still ensuring that someone can access funds quickly if needed.

The Five-Meeting Process

One thing that sets strong estate planning apart is the thoroughness of the process. The attorneys described their five-meeting system: an initial consultation to learn about the family, a homework review to gather details, a deeper planning conversation, an asset review to ensure everything is properly titled, and finally a comprehensive signing meeting. This slower, more deliberate process ensures that families understand their choices, avoid mistakes, and walk away with true peace of mind. Afterward, ongoing communication keeps clients updated on changes in the law and best practices.

The Cost of Planning vs. the Cost of Waiting

Of course, people always ask about fees. A comprehensive estate plan, including the living trust and all supporting documents—powers of attorney, pour-over wills, health directives, HIPAA releases, and community property agreements for married couples—was quoted at around $6,475 during the webinar. Compared to the tens of thousands in probate costs, years of delay, and potential family conflict, the investment is modest. And unlike probate, the trust process is private, predictable, and tailored to the family’s wishes.

A Legacy of Care

What began as a cautionary tale ended as a lesson in empowerment. Without a plan, Maria and Joseph’s lifetime of hard work dissolved into court fees, creditor claims, and lost inheritances. With a comprehensive living trust, the same family protected assets, preserved dignity, supported the surviving spouse, and ensured that children and grandchildren benefitted as intended.

Estate planning isn’t about preparing for death; it’s about upgrading life for the people left behind. It’s about relieving loved ones of unnecessary burdens, shielding them from financial predators, and passing on not just wealth but also stability and peace of mind. As the attorneys concluded, everyone already has a plan—either the one the state will impose or the one you choose for yourself. The question is whether you want your legacy determined by courts and creditors, or by your own thoughtful design.