Planning for Medical Decisions: An Overview of Oklahoma’s Health Care Agent Act
A Will and a Trust are two common ways to determine how your property will be distributed after your death. If you don’t have either, your assets will be distributed according to the State’s law of intestate succession. 84 O.S. § 213. “Intestate” means “without a will.” In other words, the court will decide who inherits your property based on legal guidelines, not your personal wishes.
For example, if a person in Oklahoma passes away and they and their spouse have a child or children, and if that person passes away with no will, then the spouse will receive half and the child or children the other half. If this is not how you would want your assets handled, you need to have a Will or Trust in place.
If a person is passing their estate to their loved ones through a will, or if they have not done their estate planning, the whole matter of the person‘s estate, that is, the property left behind after death, will be decided by a judge, who will follow the terms of the will or the letter of the law. This is a court process commonly known as probate.
The Real Cost of Care
Long-term care is expensive. In many cases it costs $5,000 to $7,500 or more per month. This quickly drains available cash and liquid assets. For couples, the question becomes:
How does someone maintain their investments and also qualify for government benefits to cover long-term care?
This is where we can help.
How Long-Term Care Messes with Estate Planning
If a long-term care insurance policy is not an option, most people will self-pay for as long as possible. When they run out of money, they turn to government benefits. That benefit will not be Medicare, as many people assume — Medicare only covers up to 100 days, and only in specific, limited circumstances. This misunderstanding often undermines estate plans, leaving fewer assets to pass on to loved ones.
The 5-Year Lookback Rule
Our estate planning process, especially for clients over age 60, always considers long-term care needs. We use proven strategies to shield certain assets before they’re at risk.
One reason early planning matters is the 5-year lookback. When applying for benefits like Medicaid, the government reviews your financial history for the past five years. Transfers made during that time may make you ineligible. Properly timed planning can make all the difference.
When Care Is Needed Immediately
If someone needs care now, there are still options, but they may involve a “spend down” of assets. Done incorrectly, this can mean losing more than necessary. Done strategically, it can preserve wealth while qualifying for benefits.
We work with an out-of-state consultant who specializes in this planning and prepares all necessary benefit applications, including Medicaid.
Why Advisors Should Care
If you’re a financial advisor, you know that losing assets to care costs can reduce investment principal — and your client’s future returns. Partnering with us can help your clients preserve investable assets, protect their financial future, and maintain your ongoing management role.
Our Commitment to Clients and Advisors
Free initial consultation — includes long-term care review
Flat-rate pricing — know the cost upfront
Collaborative approach — we consult accountants and other professionals
Clear options — if there’s more than one strategy, we explain each
We’ve seen what works and what doesn’t. Our goal is to ensure you and your family — or your clients — have the smoothest process possible, both during life and after a loved one’s passing.
Call Sullivent Law Firm today to schedule your free consultation and begin protecting what matters most.