HEMS: Navigating Health, Education, Maintenance, and Support in Estate Planning

Maria Cecilia Rachadell | CISA LatAm

Experienced international business lawyer with more than 25 years of practice and specific knowledge of the Latin America market. Expert qualifications and solid background in international tax, wealth and estate planning, mergers & acquisitions, complex commercial litigation, and international arbitration.

Qualified for leadership positions where business savvy and deep legal knowledge are valued. Experience includes managing director, business developer, and legal consultant of Latin American high-profile clients. Recruited as an expert in appraising complex business and legal cases, and charter new courses for clients who are expanding overseas or going through defiant conditions, providing exceptional tailor-made solutions, with a high impact on business results. Well known for assembling cohesive multifunctional teams and positive dynamics among different functions. Outstanding negotiation skills proven in international arbitration cases.

Native Venezuelan, lived and worked in the United States and Venezuela, proven ability to adapt to diverse organizational cultures, 100% fluent in Spanish and English.

Andrew White | Altman & Associates

Andrew White brings over two decades of experience advising clients on estate planning and trust administration. Known for his efficient, client-focused approach, Andrew listens carefully to his clients’ goals before providing thoughtful, steady guidance tailored to their needs.

Andrew’s practice includes advising clients on estate and trust taxation, income tax planning, creditor protection, and asset preservation. He has deep experience navigating the complexities of planning for blended families.

A graduate of the University of Cincinnati College of Law (J.D., 2001), Andrew holds a B.S. in Finance from Miami University. He is admitted to practice in Maryland, Virginia, the District of Columbia, and Ohio.

Outside of his legal practice, Andrew is engaged in his community. He has held leadership roles in organizations supporting the arts and culture and serves as Vice President of the Maury Elementary PTA. Andrew is an active member of professional associations, including the Maryland and Fairfax Bar Associations.

When he’s not in the office, he enjoys camping, hiking with his family, and biking around his Capitol Hill neighborhood. A certified flight instructor with over 1,000 hours of flight time, he brings the same focus and discipline to his personal pursuits as he does practice estate planning.

Session I – The HEMS Standard in Estate Planning – Balancing Protection, Flexibility, and Compliance | 1:00pm – 2:00pm

• Understanding the HEMS standard
  • Definition and significance of HEMS (health, education, maintenance, support)
  • Common applications in estate planning documents
  • Importance for estate planners, trustees, and beneficiaries
• Scope of the HEMS standard
  • Detailed analysis of what constitutes health-related expenses
  • Clarifying education-related expenses and their limitations
  • Exploring maintenance and support distributions: Definitions and examples
• Practical applications of the HEMS standard
  • When to use the HEMS standard in trust drafting
  • Balancing flexibility and tax implications for beneficiaries
  • Case studies illustrating effective use of HEMS provisions
• Drafting considerations and common pitfalls
  • Key drafting tips to ensure compliance with the HEMS standard
  • Risks of deviating from the standard and potential consequences
  • Best practices for maintaining the integrity of the HEMS standard

Break | 2:00pm – 2:10pm

Session II – Tax Advantages of the HEMS Standard – Mitigating Risks and Maximizing Benefits | 2:10pm – 3:10pm

• Tax benefits of the HEMS standard
  • Section 2041 of the Internal Revenue Code
  • How HEMS protects against adverse estate tax consequences
  • Strategies for allowing beneficiaries to serve as trustees without tax implications
  • Key Court Decisions