Elder law attorneys are probably the most overlooked tool for incapacity planning. Beyond providing the legal documents and tools for effectively coordinating decision making and financial management, elder law attorneys provide an experienced concierge in areas most people have not confronted, such as coordination of benefits, hiring of supplemental providers, and coordinating financial planning. Furthermore, elder law attorneys focus on the effective implementation of their documents. Put simply, a power of attorney or other document is false comfort if the document cannot be used effectively when needed.

Aside from attorneys, financial advisors are underutilized as a tool to address incapacity and death. Building a solid relationship with a financial advisor can be an extremely effective way of coordinating assets at death, preventing or mitigating financial exploitation, and budgeting for medical expenses. If you have a financial advisor that you have been working with it is important that your advisor and your attorney are “on the same page” so that your legal and financial plans are coordinated effectively.

Age, dementia, and other issues can cause individuals to be more susceptible to scams or even result in a change in personality. While financial advisors used to limit their focus almost solely to investment return, most are realizing that placing alerts for unusual expenditures and regularly discussing budgeting and other matters with clients. The increased focus on these concerns provides an important service and some protection in the event of incapacity. Frequently, we meet with individuals who have only realized the extent of their cognitive decline due to issues brought up by their financial advisors such as unusual withdrawals, large expenditures, increased purchases, and other general changes in financial behavior.

A third overlooked tool is a trusted CPA. Many individuals think that their income picture in retirement is so simple, that they do not need a CPA to assist in preparing their tax return. However, having returns regularly filed with a CPA provides a quick and easy place for a substitute decision maker or executor to go in the event of incapacity or death, respectively. Furthermore, we frequently see individuals who self-file tax returns miss out on important tax benefits available to older clients, such as deductions for long term care premiums, deductions for healthcare expenses, and “catch-up” contributions to retirement savings. Sometimes we see families who fail to properly plan payments for the benefit of a medically needy family member in order to claim them as a dependent. These benefits quickly justify the cost of using a CPA experienced in income tax planning and filing.

A fourth overlooked set of tools are the multitude of services and applications that have proliferated to address coordination of banking, account, health, and other information. Most banks have created smartphone applications to manage accounts, which is a great help to any family caregiver. Mobile payment platforms for in-home care services prevents the need to trust new caregivers near cash or checkbooks, while delivering instant and direct payment for their services and keeping a clear record for tax and other reporting needs. Password applications provide a digital vault to keep your passwords so that they can be accessed by your substitute decision maker in the event of your incapacity or death (or by you, if you’ve forgotten a password). Other applications can help you (or a trusted loved one) keep track of your finances, health data, and other important information in an easily accessible location. While these services do come at an expense many of them quickly justify their costs in the security, comfort, and protection they provide.

As new products and services develop, we at Hook Law Center are constantly working to stay abreast of changes and trends. By specializing in elder law, our attorneys and staff can assist in more than coordinating your legal plan, we can help find ways for you and your family to smooth the inevitable transition that occurs during illness, incapacity, or death. If you are curious how some of these tools can be used to better serve you or your family members, please call our office to schedule an appointment to discuss your needs.

Ask Kit Kat – Bao Bao Returning Home

Hook Law Center:  Kit Kat, what can you tell us about that adorable panda 3-year old who is currently at the Washington, DC National Zoo?

Kit Kat:  Well, sadly, Bao Bao, a female giant panda, will soon be leaving Washington, DC and returning to her home country, China. The zoo has not yet set an exact date for the trip, but they are scheduling some goodbye events before she goes. Though born in the United States on Aug. 23, 2013, she will be sent to her home country by the time she turns age 4. Bao Bao’s mother, Mei Xiang, is from China, and by agreement with the China Wildlife Conservation Association, any cub born at zoos in the United States must return to China around the time that they turn 4 years of age. Bao Bao was the first baby panda since 2005 to survive birth at the zoo and thrive. 4 years of age is when a panda is capable of breeding.

Bao Bao has been living an independent life at the zoo since March 2015. She is kept separate from her mother, Mei Xiang. This is to prepare her to lead a solitary life like she would be living, if she were in the wild. Separation usually occurs around the age of 18 months to 2 years.

Preceding Bao Bao was Tai Shan, another panda born on July 9, 2005 at the National Zoo. Tai Shan was returned to China in February 2010. Alas, for a little while, we can enjoy the company of Bei Bei, a male giant panda, born on Aug. 22, 2015. He’s only 1.5 years old now, so we still have time to watch him mature and grow to adulthood. ( Michael E. Ruane, “Bye Bye, Bao Bao,” The Washington Post, Local section, January 18, 2017)

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Distribution of This Newsletter

Hook Law Center encourages you to share this newsletter with anyone who is interested in issues pertaining to the elderly, the disabled and their advocates. The information in this newsletter may be copied and distributed, without charge and without permission, but with appropriate citation to Hook Law Center, P.C. If you are interested in a free subscription to the Hook Law Center News, then please telephone us at 757-399-7506, e-mail us at mail@hooklawcenter.com or fax us at 757-397-1267.The post Commonly Overlooked Tools for Incapacity Planning first appeared on SEONewsWire.net.]]> http://www.seonewswire.net/2016/11/housing-assistance-for-people-with-disabilities/ Tue, 22 Nov 2016 17:05:06 +0000 http://www.seonewswire.net/2016/11/housing-assistance-for-people-with-disabilities/ Finding affordable housing can be difficult for people with disabilities, who may have special housing needs or limited funds. However, there are a number of resources available to help: Center for Independence of the Disabled, New York The Center for…

WHAT HOMES ARE ELIGIBLE?

Fortunately, the LHTC can be used on new purchases as well as existing homes. New construction must meet Universal Visitability guidelines, but renovations need only to increase accessibility using certain eligible means.

WHAT TYPE OF IMPROVEMENTS ARE NEEDED?

The renovation must include several “Universal Visitability” features, such as: zero-step entrances, doors with a width of at least 32 inches, accessible switches, accessible bathrooms, accessible kitchens, among others. These requirements work nicely with the Universal Design concepts discussed in the previous article.

HOW DOES THE CREDIT WORK?

The credit is available for 50% of the cost of applicable features, up to $5,000, which means that $10,000 in costs for applicable renovations can yield a full credit. The simplicity of the design elements required to qualify for the credit (built-in appliances, width of halls and doorways, etc.) means that a little forethought in design may go a long way in saving funds.

After the work is completed, the credit is applied for using a simple form and submitted to the Virginia Department of Housing and Community Development in Richmond. They even allow for electronic submissions! A certificate of approval is provided with the amount of your credit by April 1, and can be relied upon for your tax return. If you do not have enough tax liability to fully use your credit, the balance can be carried forward for seven years.

CONCLUSION

If you are considering updating your home or specifically need to retrofit your home for accessibility, using the LHTC can be an excellent way to defray some of those costs.  If you need help planning for disability, healthcare costs, or retirement generally, please contact our office to arrange a meeting with one of our Elder Law attorneys to review your needs and implement a plan. The author thanks Richard Harrison, Jr., CPA of Richard J. Harrison, Jr., P.C. for providing information related to the Virginia Livable Homes Tax Credit used in this article.

Ask Kit Kat – At Rest with Pets

Hook Law Center:  Kit Kat, what can you tell us about the new New York State law which allows pets to be buried alongside their owner(s)?

Kit Kat:  Yes, this is a wonderful option which was recently enacted for the state of New York. There are some stipulations—the pet must be cremated; religious cemeteries are exempt, and all cemeteries are not required to accept pet cremains. It is, however, a step in the right direction. The change has been in the works for about five years says David Fleming, director of government affairs for the New York State Association of Cemeteries. ‘Times have changed; people have a much different view of their pets in the family,’ he said. Currently, the law limits the option to domestic animals, but authorities have been quite flexible and have allowed reptiles and invertebrates. Mr. Fleming further comments, ‘I don’t think the average person is paying to have their tarantula cremated, but maybe they are.’

Heretofore, people who wanted to be buried with their pets had to do so in a pet cemetery. Some actually have chosen this option. At Hartsdale Pet Cemetery in Westchester County, a pet cemetery which originated in the 19^th century, 5-7 people are buried each year, says Edward C. Martin, Jr., the cemetery’s director, along with their beloved pets. Mr. Martin is not worried about the impact of the new law. Hartsdale Pet Cemetery has a tranquil and lovely location which is attractive to many, whether human or animal.

The new law will be helpful to those whose preferred companion is a turtle. Turtles live for decades says Barbara Daddario, education director of the New York Turtle and Tortoise Society. It is not unusual for a turtle or a tortoise to outlive its original owner and be passed to a younger family member. With the new law, ‘…it may be a while before the turtle goes in there,’ she said.

This is a terrific plan. You may want to check with your state and determine whether such an option is permitted in the state in which you reside. According to Mr. Fleming of the NY Association of Cemeteries, few others allow it, but he is uncertain as to which other states do/do not permit the practice. (Sarah Maslin Nir, “New York Burial Plots Will Now Allow Four-Legged Companions,” The New York Times (New York Region section), October 6, 2016)

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Distribution of This Newsletter

Hook Law Center encourages you to share this newsletter with anyone who is interested in issues pertaining to the elderly, the disabled and their advocates. The information in this newsletter may be copied and distributed, without charge and without permission, but with appropriate citation to Hook Law Center, P.C. If you are interested in a free subscription to the Hook Law Center News, then please telephone us at 757-399-7506, e-mail us at mail@hooklawcenter.com or fax us at 757-397-1267.The post State Tax Credit Can Help With Home Improvement Costs first appeared on SEONewsWire.net.]]> http://www.seonewswire.net/2016/10/cruising-through-caregiving-book-review/ Tue, 11 Oct 2016 15:05:44 +0000 http://www.seonewswire.net/2016/10/cruising-through-caregiving-book-review/ Cruising through Caregiving is a terrific book helping all those who have cared for or will care for someone in their family through the aging process deal with the stress of serving in such a capacity. The thrust of her…

You can also transfer tangible personal property to a living trust. This type of property includes jewelry, furniture, books, artwork, clothing, automobiles and other such items. Personal property does not include real property and intangible property, including money, stocks or bonds.

The transfer of an automobile or other vehicle to a living trust is very similar to transferring it to a third party. You sign the title over to the trustee, who then registers the vehicle. Registration of a vehicle held in trust has the same requirements as does registration of a vehicle held in your own name. You are also required to have an insurance card that shows that the insurance on the vehicle is in the name of the trustee. And if you are behind in the payment of any property taxes, you will be required pay the delinquent tax prior completing registration.

Moreover, most states will require you to have either a duplicate of the trust instrument or a letter from the attorney confirming the name of the trust and the trustee. The letter must also corroborate that the trust is in effect. There are some states that will levy a sales tax on the transfer of a vehicle to a revocable living trust on the basis of the sale price paid by the trustee or the vehicle’s book value, whichever is greater. However, a sales tax is inapplicable when the transferor is the same as the transferee. If your state is insistent, contact your state tax department, and speak with one of its lawyers.

One advantage of a living trust is the avoidance of probate, which can be costly and time-consuming. Another benefit is that a living trust ensures the privacy of your distributions whereas a will is public record. In addition, if you become ill or lose capacity, your trustee can make decisions on your behalf. But if you have a will without a durable power of attorney, the court will designate an individual to manage your financial matters. If you create a durable power of attorney, including one for health care decisions, the court will not select a conservator to handle your affairs.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Sources

• https://www.legalzoom.com/articles/top-three-benefits-of-a-living-trust
• https://www.livingtrustnetwork.com/estate-planning-center/revocable-living-trust/how-to-fund-a-living-trust/transferring-tangible-personal-property-to-a-living-trust.html

Rather than depending on pension or Social Security benefits, you should be responsible for your own retirement planning. Here are some measures that you can implement so that you can have more control over your retirement:

• If you are employed by a company that offers matching through a retirement savings plan, then it is to your advantage to participate in such a plan. Many employers currently offer retirement plans consisting of matching contributions in lieu of a pension.
• By starting to save early, you can realize the benefits of compound interest. However, even if you begin saving late in your career, you may still be able to retire comfortably. You may have to compensate for the late start by increasing the rate at which you save, reducing your expenses, or working a few more years than you had anticipated.
• In addition, you may need to change your lifestyle by living below your means, and establishing a budget that permits you to accumulate a savings that is intended for your investment in retirement. Every month, you will have to spend a lesser amount than that which you earn, and invest the difference.

By living below your means, you will realize your objective of applying more funds toward your retirement and choosing a lifestyle that encourages you to live on a reduced budget. This will allow you to realize your retirement goals more quickly.

• Furthermore, it would be advantageous for you to make full use of your tax deferral options for retirement, including IRAs and retirement plans through your employers, such as 401(k)s, 457s, 403(b)s or the Thrift Savings Plan. In some instances, you can use a health savings account to help fund your retirement.

Tax-deferred accounts help you increase your retirement income more rapidly because no taxes are owed on the funds or the growth until such time as when you make withdrawals during your retirement. Moreover, delaying payment of taxes on the dividends, interest and capital gains every year permits your retirement account to grow at a faster rate. While you will likely be able to benefit from Social Security or a public pension plan, it is recommended that you not rely on either choice, but rather, take control of your retirement planning.

It would be helpful for you to consult a financial advisor who can develop a plan that will enable you to meet your retirement objectives. Some fundamental questions that you should consider are:

• the age at which you would like to retire;
• the number of years you wish your retirement income to last;
• the amount of income you anticipate receiving from Social Security, pension, dividends, rental properties, and other sources.

One rule to keep in mind is that people require 70 percent to 100 percent of their income prior to retirement in order to keep the same lifestyle on a yearly basis. However, this is subject to change, depending on such factors as whether you wish to travel and whether your mortgage is paid off. You should also consider the cost of living and unforeseen expenses, such as health care. A financial advisor can assist you in confronting these issues, and establishing a workable retirement plan.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

For the year 2016, you are in the coverage gap when you and your plan have spent $3,301 on covered medications. This figure is subject to change every year. In addition, those who have Medicare, and who receive additional assistance with payment of Part D costs will not be included in the coverage gap.

Upon reaching the coverage gap in 2016, you will pay a maximum of 45 percent of the plan’s cost for brand-name prescription drugs that are covered. You will get these savings if you purchase your prescription drugs at a pharmacy or place an order by mail. Even though you will pay a maximum of 45 percent of the price for the brand-name prescription in 2016, 95 percent of the price will be considered out-of-pocket cost that will help you leave the coverage gap.

This figure represents the 45 percent that you pay plus the 50 percent manufacturer discount payment. Your out-of-pocket costs do not include the amount the drug plan contributes toward the cost of the drug, or 5 percent, and the amount the drug plan contributes toward the dispensing fee, or 55 percent of the fee.

In 2016, Medicare will pay 42 percent of the cost of generic drugs during the coverage gap. You will pay the remainder, or 58 percent of the cost. The amount you pay for generic drugs during the coverage gap will be reduced every year until it is 25 percent in 2020. The coverage for generic drugs operates in a different manner from the way in which the discount for brand-name drugs works. With respect to generic drugs, only the amount you pay will be applied toward helping you out of the coverage gap.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

If the executor does not desire to serve, the executor is required to produce a notarized statement declining the appointment. Any alternates mentioned in the will are then considered. If no alternates are mentioned, or if any alternates relinquish the right to serve, then an administrator c.t.a. will need to be appointed.

If the designated executor is deceased, the alternate executor or administrator c.t.a. has to produce a copy of the death certificate at the probate appointment. If the executor would like to be removed, then the executor is required to file a petition for a removal, along with a filing fee.

The basic responsibilities of an executor are:

• to inform interested parties of probate;
• filing an affidavit or notice;
• filing an inventory;
• filing a settlement of accounts or statement instead of accounts;
• filing income, inheritance and estate taxes;
• paying all payroll taxes due;
• paying all debts;
• distributing remaining assets in accordance with the will or intestate law.

An executor must be informed of the kinds of actions that are considered to be unacceptable.

Here are a few things that the executor should refrain from doing:

• Distributing assets too soon — as an executor, you should not distribute any assets until there is an accounting of assets and possible liabilities.
• Using estate assets for personal gain — if you use the assets for personal reasons, you will have to return the funds to the estate, and may face criminal charges.
• Neglecting to pay taxes — make certain that all taxes are paid.
• Disregarding court orders — you must obey the judge’s orders.
• Distributing assets prior to paying bills — you must pay all liabilities prior to distributing assets to the heirs.
• Disregarding claims against the estate — do not ignore creditors unless a court instructs you to do so.
• Carrying out your responsibilities without consulting an attorney — Consulting an attorney is an effective way of making certain that you correctly fulfill your duties and do not make any errors.

By adhering to these rules, you can properly carry out the responsibilities associated with being an executor.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Frequently, elders and their family members make decisions about what steps to take after the occurrence of a health emergency, such as when an elderly parent falls, when there are unpaid bills, there is a lapse in housekeeping, or the elderly person’s memory has failed. However, experts admonish against waiting until such an event takes place.

Millions of people, particularly baby boomers and their parents, are wrestling with this problem. In order to make the right decision, some elderly people and their families are seeking the advice of elder care specialists, including financial planners, who can assist them with financial decisions and offer advice regarding the issues of health and aging.

Hook Law Center provides life care planning, including the support, guidance and direction that you need to focus on long-term care. The attorneys at Hook Law Center anticipate the myriad health, safety and quality of life issues that many elders and their families will face. Our seasoned attorneys can work alongside advisors, public benefits specialists and care coordinators to establish a plan for the future.

At Hook Law Center, each life care plan is intended to accomplish three goals, including:

• The provision of care at home or in a facility that will preserve quality of life;
• The identification of public and private sources of financing for long-term care while focusing on issues relevant to cost; and
• Offering peace of mind that you made the right decisions

Life care planning incorporates each aspect of care, including estate planning, qualification for public benefits, and advocacy to make certain that seniors and their families find the appropriate types of services.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Medicare

Medicare only covers care that is medically necessary, including medical acute care, such as visits to the doctor, medications and time spent in the hospital. In addition, Medicare covers short-term services for ailments that are predicted to improve, including physical therapy.

In order to become eligible for Medicare, you must be age 65 or older, under age 65 with certain disabilities, or any age and have end-stage renal disease, which is permanent kidney failure that has to be treated with dialysis or a kidney transplant.

Medicare does not pay for the most significant aspect of long-term care services or personal care, including assistance with bathing, or for supervision that is frequently referred to as custodial care. Medicare covers the cost of a brief stay in a skilled nursing facility, hospice care, or home health care if you meet certain conditions:

You have recently stayed in a hospital for a minimum of three days;
Within 30 days of your time previously spent in a hospital, you were admitted to a nursing facility that is certified by Medicare;
You require skilled care, including skilled nursing services, physical therapy or other kinds of therapy.

If you meet each of these conditions, Medicare will pay for some of the expenses for a maximum of 100 days. For the initial 20 days, Medicare pays 100 percent of your expenses. Then you are responsible for your expenses up to $140 per day, as of 2013. Medicare pays any remaining balance. After day 100, you are responsible for the entire cost of each day spent in a skilled nursing facility.

Medicare also pays for specific long-term care services for a certain period of time if your physician states that they are medically needed to treat an illness or injury. If you suffer from a terminal illness, and it is anticipated that you will not live more than six months, Medicare will pay for hospice care.

Medicaid

Medicaid is a joint federal and state government program that assists low-income people with the payment of part, or all, of their health care expenses. It covers medical care, including visits to the doctor, and the cost of hospital stays. It also covers long-term care services in nursing homes, as well as those given at home, including visiting nurses and help with personal care. Medicaid differs from Medicare in that it covers the cost of custodial care in nursing homes and at home.

In order to become eligible for Medicaid, you must meet certain qualifications, including having earnings and assets that are not greater than the levels used by your state. Under federal law, if Medicaid pays for your long-term care services, that state must recover the amount that Medicaid expended on your behalf from your estate after your death. This is called Medicaid Estate Recovery.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

This strategy does not involve the selection of securities by a portfolio manager. Without a portfolio manager to track the way an index performs, the cost of using a passive strategy is extremely low. It has also been suggested that the additional value provided by a portfolio manager is canceled out by any fees, costs and taxes.

However, if you possess securities in that index, you will never outperform the index. In addition, if you use a passive strategy, and the market experiences a decline, you will take part in that decrease in value.
In contrast to passive investing, active investing uses a manager who tries to produce returns that exceed the index against which the portfolio is benchmarked. The majority of managers try to accomplish this by selecting stocks they believe are improperly priced in the stock market compared to what should be their actual value.

The two major benefits of using an active strategy are the potential to outperform the index and protection from a market decline. Managers and their employees may be able gain an understanding of companies that others may have overlooked. They have access to information that will enable them to execute a trade that can outperform the index. Moreover, they can increase cash by selling securities if they think the market is going to decline or they recognize issues concerning the companies before everyone else does.

A disadvantage of the use of an active strategy is the fees connected with a portfolio manager. The fund’s investors pay the salaries, rent, research and travel expenses for the manager and the manager’s team. An additional concern is that the manager may not be able to outperform the index on a regular basis.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

This strategy does not involve the selection of securities by a portfolio manager. Without a portfolio manager to track the way an index performs, the cost of using a passive strategy is extremely low. It has also been suggested that the additional value provided by a portfolio manager is canceled out by any fees, costs and taxes.

However, if you possess securities in that index, you will never outperform the index. In addition, if you use a passive strategy, and the market experiences a decline, you will take part in that decrease in value.
In contrast to passive investing, active investing uses a manager who tries to produce returns that exceed the index against which the portfolio is benchmarked. The majority of managers try to accomplish this by selecting stocks they believe are improperly priced in the stock market compared to what should be their actual value.

The two major benefits of using an active strategy are the potential to outperform the index and protection from a market decline. Managers and their employees may be able gain an understanding of companies that others may have overlooked. They have access to information that will enable them to execute a trade that can outperform the index. Moreover, they can increase cash by selling securities if they think the market is going to decline or they recognize issues concerning the companies before everyone else does.

A disadvantage of the use of an active strategy is the fees connected with a portfolio manager. The fund’s investors pay the salaries, rent, research and travel expenses for the manager and the manager’s team. An additional concern is that the manager may not be able to outperform the index on a regular basis.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

One of the ways in which you can protect your retirement is to disperse your retirement savings so that you will have funds in various accounts that are treated differently with respect to taxes. Try not to keep all of your retirement savings in traditional 401(k)s and IRAs, both of which are taxed at ordinary income tax rates upon making withdrawals.

An increase in ordinary income tax rates could cause you to have considerably less cash, after taxes, in retirement. However, because qualified withdrawals from a Roth 401(k) or Roth IRA account are not subject to tax, any savings in those accounts would not be significantly affected by a rise in the ordinary income tax rate.

You can also engage in further diversification by investing in stock index funds and tax-managed funds that yield a great deal of their return in terms of unrealized long-term capital gains. These kinds of gains are beneficial in that they are not subject to tax until you sell, and they are taxed at the same rate at which long-term capital gains are taxed. This rate is usually lower than those at which ordinary income and short-term gains are taxed. And when making withdrawals, you may also fare better by first removing funds from taxable accounts, then tax-deferred 401(k)s and IRAs, and then Roth accounts.

Moreover, be cautious when selecting the types of investments for your retirement plan. If you are worried about a potential future increase in the rate of inflation because of government monetary policy or excessive government spending, you can supplement your investments with natural resources funds, Treasury Inflation Protected Securities (TIPS) or Real Estate Investment Trusts (REITs).

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

One of the ways in which you can protect your retirement is to disperse your retirement savings so that you will have funds in various accounts that are treated differently with respect to taxes. Try not to keep all of your retirement savings in traditional 401(k)s and IRAs, both of which are taxed at ordinary income tax rates upon making withdrawals.

An increase in ordinary income tax rates could cause you to have considerably less cash, after taxes, in retirement. However, because qualified withdrawals from a Roth 401(k) or Roth IRA account are not subject to tax, any savings in those accounts would not be significantly affected by a rise in the ordinary income tax rate.

You can also engage in further diversification by investing in stock index funds and tax-managed funds that yield a great deal of their return in terms of unrealized long-term capital gains. These kinds of gains are beneficial in that they are not subject to tax until you sell, and they are taxed at the same rate at which long-term capital gains are taxed. This rate is usually lower than those at which ordinary income and short-term gains are taxed. And when making withdrawals, you may also fare better by first removing funds from taxable accounts, then tax-deferred 401(k)s and IRAs, and then Roth accounts.

Moreover, be cautious when selecting the types of investments for your retirement plan. If you are worried about a potential future increase in the rate of inflation because of government monetary policy or excessive government spending, you can supplement your investments with natural resources funds, Treasury Inflation Protected Securities (TIPS) or Real Estate Investment Trusts (REITs).

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

You can withdraw your contributions to Roth IRAs anytime for any reason without being subject to tax or penalty, irrespective of your age. The IRS permits holders of traditional IRAs to label withdrawals as “contributions” until all contributions have been resolved. Upon withdrawal of the contribution part of the account, you can then remove the earnings portion. But if you have not yet reached age 59 ½, the earnings could be taxed as income and you may have to pay a 10 percent penalty.

It could be an expensive error for the retiree to roll over a work-related retirement plan to an IRA if you need the funds before reaching age 59 ½. If you are age 55 or older and you have stopped working, you can withdraw money from your 401(k) or 403(b) account without being subject to the 10 percent penalty that would usually apply to withdrawals from an IRA owned by an individual under age 59 ½.

You can also remove funds from a 457 plan from a government or nonprofit employer without being subject to a ten percent penalty. If you withdraw funds from a work-related retirement plan, they will be taxed as ordinary income. But since early retirees will have less income, their tax bill will be smaller.

If you must withdraw funds from your IRA to pay for living expenses before reaching age 59½, you should determine whether you have any qualifying expenses that can be set against the IRA withdrawals to avoid the ten percent penalty. Such costs could include considerable out-of-pocket medical bills, higher education expenses or health insurance premiums if you are unemployed.

Furthermore, IRA holders under age 59 ½ can make withdrawals from the account without incurring a penalty if the withdrawals are similar in amount and comply with a certain schedule. These are referred to as substantially equal periodic payments (SEPP). Under the SEPP program, once the payments have started, they must continue for five years or until you attain the age of 59 ½, whichever is second. However, if the requisite amounts and timing of the SEPP accounts are not met exactly, all withdrawals may be subject to the ten percent penalty retroactively.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

You can withdraw your contributions to Roth IRAs anytime for any reason without being subject to tax or penalty, irrespective of your age. The IRS permits holders of traditional IRAs to label withdrawals as “contributions” until all contributions have been resolved. Upon withdrawal of the contribution part of the account, you can then remove the earnings portion. But if you have not yet reached age 59 ½, the earnings could be taxed as income and you may have to pay a 10 percent penalty.

It could be an expensive error for the retiree to roll over a work-related retirement plan to an IRA if you need the funds before reaching age 59 ½. If you are age 55 or older and you have stopped working, you can withdraw money from your 401(k) or 403(b) account without being subject to the 10 percent penalty that would usually apply to withdrawals from an IRA owned by an individual under age 59 ½.

You can also remove funds from a 457 plan from a government or nonprofit employer without being subject to a ten percent penalty. If you withdraw funds from a work-related retirement plan, they will be taxed as ordinary income. But since early retirees will have less income, their tax bill will be smaller.

If you must withdraw funds from your IRA to pay for living expenses before reaching age 59½, you should determine whether you have any qualifying expenses that can be set against the IRA withdrawals to avoid the ten percent penalty. Such costs could include considerable out-of-pocket medical bills, higher education expenses or health insurance premiums if you are unemployed.

Furthermore, IRA holders under age 59 ½ can make withdrawals from the account without incurring a penalty if the withdrawals are similar in amount and comply with a certain schedule. These are referred to as substantially equal periodic payments (SEPP). Under the SEPP program, once the payments have started, they must continue for five years or until you attain the age of 59 ½, whichever is second. However, if the requisite amounts and timing of the SEPP accounts are not met exactly, all withdrawals may be subject to the ten percent penalty retroactively.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

In 2014, Congress proposed a law that would penalize veterans and surviving spouses of veterans who were looking to apply for the VA Benefit if they transferred assets within the three year period from when they applied for benefits.  If the veteran or surviving spouse did transfer assets, there would be a penalty imposed on the veteran or surviving spouse.

However, that bill failed and never saw the light of day.

VA Benefits Proposed Rule Change in 2015

In early 2015, the VA took another route to get the “3 Year Look-back” rule implemented.  Instead of a change in law through Congress, they looked to change the administrative rules.

With that goal in mind in early 2015 they made a proposed rule change that would implement a 3 year look-back.  There was a comment period that closed March 24th.  There were over 900 people who made comment, including many elder law lawyers.

There were credible rumors in the elder law attorney community that the proposed rule change would go into effect in the spring of 2016.

Another Attempt for Congress to Pass VA Rule Change

The Elder Care Firm’s VA Accredited Attorneys have consistently advocated for veterans, and argued the VA did not have independent authority to make such changes and needed Congressional approval. Apparently the VA agrees, so it secured the support of a few senators to craft a bare-bones House Resolution called the “Veterans Care Financial Protection Act of 2016.” Essentially, this Act would approve any “standards” developed and implemented by the VA “that protect individuals from dishonest, predatory, or otherwise unlawful practices relating to increased pension available … on the basis of need for regular aid and attendance.”

If this Resolution passes, all of the proposed changes to Title 38 of the Code of Federal Register, as drafted by the Veterans Administration, affecting veterans, imposing transfer penalties of up to 10 years, would become law.

However, according to VA law expert Victoria Collier, there is one glaring problem, “neither the bill nor the proposed changes in Title 38 define “dishonest, predatory, or otherwise unlawful practices.””  For example, lawyers who draft estate planning documents, licensed to do so in the state where the client resides, are acting lawfully. Certainly, misrepresentation that a trust or an annuity is required in order to get VA benefits is dishonest.  But making transfers of assets to trusts and the purchase of an annuity itself are not unlawful.  Holding educational seminars is not predatory.

Collier goes on to comment, “This is yet another example of a poorly drafted piece of legislation designed to appeal to the emotions of the ignorant, and it purposely does not adequately explain the consequences for or against the cause.”

Veterans will be harmed by the changes in the laws, not protected. The VA could punish the group of professionals using unethical practices or committing illegal acts.

Let your representatives know the real issues behind the reason for this new resolution. Urge them not to pass this blindly – know what the proposed rules are that affect pension benefits and veterans.

Planning ahead for VA Benefits and Medicaid

The earlier a family starts planning for a Veteran or surviving spouse of a veteran, the more options are on the table as the loved one navigates the long-term care journey.  Often, as VA Accredited Elder Law Attorneys, we utilize special asset protection trusts to help qualify for the VA Benefit or Medicaid.

The post VA Tries Again to Get Rule Changes Approved by Congress appeared first on Michigan Estate Planning.

According to experts, approximately 45 percent of people retire sooner than they planned. It is smart to have a contingency plan for early retirement.

It may not be feasible to secure a job that pays well, particularly for those in industries that largely depend on contractors. Even though it is illegal for employers to practice age discrimination, several older workers have difficulty finding work. If you are forced to retire early, your best option may be to find new work, even if it is not in your chosen field, and even if the compensation does not approach the amount you are accustomed to earning. Alternatively, you may find it more reasonable to reduce your expenses. Or you may decide to do both.

Another cost-effective measure is to avoid using your Social Security early, even if that means withdrawing funds from your retirement savings. If you claim social security at age 62, your monthly benefit will be 25 percent less than it would have been if you had delayed your retirement until you attained the full retirement age of 66 or 67. And if you wait to retire until you are age 70, you will receive another 32 percent.

Some options to consider if you must retire early are to accept a position that pays a lower salary, work part-time or become a consultant, reduce expenses, apply for unemployment benefits, seek health insurance on the Affordable Care Act exchange, have your college-age children decrease their expenses and consult a financial adviser.

You may also wish to conduct research of Social Security to make certain that you are collecting the maximum possible amount, continue to network professionally and pursue hobbies that make you happy.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

According to experts, approximately 45 percent of people retire sooner than they planned. It is smart to have a contingency plan for early retirement.

It may not be feasible to secure a job that pays well, particularly for those in industries that largely depend on contractors. Even though it is illegal for employers to practice age discrimination, several older workers have difficulty finding work. If you are forced to retire early, your best option may be to find new work, even if it is not in your chosen field, and even if the compensation does not approach the amount you are accustomed to earning. Alternatively, you may find it more reasonable to reduce your expenses. Or you may decide to do both.

Another cost-effective measure is to avoid using your Social Security early, even if that means withdrawing funds from your retirement savings. If you claim social security at age 62, your monthly benefit will be 25 percent less than it would have been if you had delayed your retirement until you attained the full retirement age of 66 or 67. And if you wait to retire until you are age 70, you will receive another 32 percent.

Some options to consider if you must retire early are to accept a position that pays a lower salary, work part-time or become a consultant, reduce expenses, apply for unemployment benefits, seek health insurance on the Affordable Care Act exchange, have your college-age children decrease their expenses and consult a financial adviser.

You may also wish to conduct research of Social Security to make certain that you are collecting the maximum possible amount, continue to network professionally and pursue hobbies that make you happy.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

The seven stages of Alzheimer’s were created by Barry Reisberg, M.D., clinical director of the New York University School of Medicine’s Silberstein Aging and Dementia Research Center. The first stage is one in which there are no symptoms of dementia. The second stage is marked by a very mild cognitive decline, including memory lapses, forgetfulness of words and loss of the ability to find everyday objects.

The third stage consists of mild cognitive decline in which friends, family members or co-workers start to become aware of challenges, including recalling names, thinking of the correct word or name and losing valuable objects. The fourth stage involves moderate cognitive decline, in which a medical interview should detect forgetfulness of recent occurrences and increased difficulty carrying out complicated tasks.

The fifth stage is marked by moderately severe cognitive decline, in which there are clear gaps in memory and thinking, and the person starts to require assistance with daily activities. During this stage, those afflicted with Alzheimer’s may not remember their own address or telephone number, or the academic institutions from which they graduated. They may also become confused about their location or what day it is.

In the sixth stage, their memory loss becomes worse, and they may experience changes in personality. When they are in the seventh stage, they have very severe cognitive decline, in which they are no longer able to respond to their environment, have a conversation or control their movements.

According to the Alzheimer’s Association, there are strategies that can help reduce the risk of developing Alzheimer’s, including control of blood pressure, weight and cholesterol; exercising body and mind; consuming a brain-health diet consisting of fruits and vegetables; and being socially active.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

The seven stages of Alzheimer’s were created by Barry Reisberg, M.D., clinical director of the New York University School of Medicine’s Silberstein Aging and Dementia Research Center. The first stage is one in which there are no symptoms of dementia. The second stage is marked by a very mild cognitive decline, including memory lapses, forgetfulness of words and loss of the ability to find everyday objects.

The third stage consists of mild cognitive decline in which friends, family members or co-workers start to become aware of challenges, including recalling names, thinking of the correct word or name and losing valuable objects. The fourth stage involves moderate cognitive decline, in which a medical interview should detect forgetfulness of recent occurrences and increased difficulty carrying out complicated tasks.

The fifth stage is marked by moderately severe cognitive decline, in which there are clear gaps in memory and thinking, and the person starts to require assistance with daily activities. During this stage, those afflicted with Alzheimer’s may not remember their own address or telephone number, or the academic institutions from which they graduated. They may also become confused about their location or what day it is.

In the sixth stage, their memory loss becomes worse, and they may experience changes in personality. When they are in the seventh stage, they have very severe cognitive decline, in which they are no longer able to respond to their environment, have a conversation or control their movements.

According to the Alzheimer’s Association, there are strategies that can help reduce the risk of developing Alzheimer’s, including control of blood pressure, weight and cholesterol; exercising body and mind; consuming a brain-health diet consisting of fruits and vegetables; and being socially active.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Including transportation in your retirement plan is essential. After housing, transportation is the second-greatest household expense. The American Journal of Public Health states that Americans are outliving their capacity to drive in a safe manner. In general, the ability to drive safely as you get older is largely dependent on your health. While some people are capable of driving well into their 90s, others reduce their level of driving by age 65.

But many people do not think about the day that they will not be able to drive themselves, and will instead have to rely on public transportation or others to accomplish basic daily activities. When creating a retirement plan, you should think about whether you would like to remain in your community, downsize or relocate. A 2014 AARP study revealed that by age 65, 87 percent of people prefer to stay in their community as they become older.

Many older adults are benefiting from the Independent Transportation Network, a nonprofit organization that provides rides for the elderly. It has 27 affiliates throughout the country. There are also new transportation services that offer rides for a fee. These include Uber, Lyft and Sidecar. In addition, some senior housing communities provide shuttle buses that transport residents to doctors’ appointments.
When making decisions about where to live and your mode of transportation, perform an analysis of your neighborhood concerning the places to which you usually travel and determine how you might arrive at those destinations if you were not driving. You should also consider your social support network where you have formed relationships.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Including transportation in your retirement plan is essential. After housing, transportation is the second-greatest household expense. The American Journal of Public Health states that Americans are outliving their capacity to drive in a safe manner. In general, the ability to drive safely as you get older is largely dependent on your health. While some people are capable of driving well into their 90s, others reduce their level of driving by age 65.

But many people do not think about the day that they will not be able to drive themselves, and will instead have to rely on public transportation or others to accomplish basic daily activities. When creating a retirement plan, you should think about whether you would like to remain in your community, downsize or relocate. A 2014 AARP study revealed that by age 65, 87 percent of people prefer to stay in their community as they become older.

Many older adults are benefiting from the Independent Transportation Network, a nonprofit organization that provides rides for the elderly. It has 27 affiliates throughout the country. There are also new transportation services that offer rides for a fee. These include Uber, Lyft and Sidecar. In addition, some senior housing communities provide shuttle buses that transport residents to doctors’ appointments.
When making decisions about where to live and your mode of transportation, perform an analysis of your neighborhood concerning the places to which you usually travel and determine how you might arrive at those destinations if you were not driving. You should also consider your social support network where you have formed relationships.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

In order to support their endeavors to care for loved ones, caregivers need and deserve recognition and appreciation. However, loved ones who are beset by cognitive and behavioral problems are frequently lacking in the ability to express their gratitude.

There are methods that family caregivers can apply in order to handle their loved ones’ conduct more effectively. Individuals with cognitive and behavioral issues frequently have sensitivity to such stimuli as environmental changes, such as light, noise, temperature and social activity. Become familiar with your family members’ triggers, and take steps to avoid placing them under any undue stress, thus reducing the likelihood that they will become upset.

Because people with behavioral and cognitive problems have a higher sensitivity to anger on the part of caregivers, it is imperative that you maintain your composure when communicating with them. Your capacity to remain calm will have a soothing effect on them. It is also recommended that you take your family member to the doctor on a regular basis for medical evaluations to treat all potential causes of changes in behavior.

Finally, remember that caregivers need care too. Since caring for family members with difficult behaviors can be stressful, it is important for you to have others assume your role periodically in order to give yourself a much-needed break.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

In order to support their endeavors to care for loved ones, caregivers need and deserve recognition and appreciation. However, loved ones who are beset by cognitive and behavioral problems are frequently lacking in the ability to express their gratitude.

There are methods that family caregivers can apply in order to handle their loved ones’ conduct more effectively. Individuals with cognitive and behavioral issues frequently have sensitivity to such stimuli as environmental changes, such as light, noise, temperature and social activity. Become familiar with your family members’ triggers, and take steps to avoid placing them under any undue stress, thus reducing the likelihood that they will become upset.

Because people with behavioral and cognitive problems have a higher sensitivity to anger on the part of caregivers, it is imperative that you maintain your composure when communicating with them. Your capacity to remain calm will have a soothing effect on them. It is also recommended that you take your family member to the doctor on a regular basis for medical evaluations to treat all potential causes of changes in behavior.

Finally, remember that caregivers need care too. Since caring for family members with difficult behaviors can be stressful, it is important for you to have others assume your role periodically in order to give yourself a much-needed break.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

• Having a career backup plan

According to time.com, unemployed baby boomers in the 55 to 64 age category tend to stay unemployed for an average of 11 months. If you are working at a full-time career, take on some extra side jobs. Investing in dividend-paying mutual funds or exchange-traded funds is one fairly conservative ways to start building up passive income in case you lose your primary job. Many pre-retirees save in a retirement account such as 401(k) or Roth IRA as well as a regular investment account.

• Downsizing before you have to

Instead of waiting to downsize because you lost your job and can’t pay the mortgage, consider scaling back ahead of time. If you have owned your home for 10 or more years, you could have enough equity. After selling your home, take the cash and make an all-cash purchase on a less expensive home. Other hidden savings include lower property taxes, home owner’s insurance, utility costs and maintenance. If you own your home outright, it’s more likely you’ll be able to retire early.

• Shift money in your retirement portfolio

Most people review their retirement plans at least once a year. As you grow older, it’s wise to put more money in conservative investments and less money in risky individual stocks. The time.com article recommends dialing down equities or stocks to half or less. Once you retire, you don’t want to take as many risks with the investments inside your retirement plans.

• Consider a Roth conversion

If you make too much money to contribute to a Roth IRA, you can still get money into a Roth by converting money from a traditional IRA into a Roth. You will have to pay income taxes the year you convert from a traditional to a Roth. One trick is to convert small amounts every year leading up to your retirement so you don’t have to foot the entire tax bill all at once. A Roth is a valuable asset left to your children and grandchildren as part of an estate plan. However, it’s wise to have an elder law attorney review your retirement accounts. Using the most tax efficient methods means you won’t have to worry about your loved ones.

For some people, it makes more financial sense to keep working a few years beyond the early retirement age of 62. Whether you decide to work until you are 64 or 70, rely on the expertise of an elder law attorney to guide your retirement plans.

Elder law attorney Christopher J. Berry and the Elder Care Team specializes in retirement and long-term care planning. We can help you set up a retirement plan trust to maximize tax deferment for your beneficiaries and protect you while you are living. For more information on the best retirement plans for retiring early, please contact us.

The post Retirement Plans: What Steps Will Help You Retire Early? appeared first on The Elder Care Firm.

A study conducted by the Journal of General Internal Medicine revealed that 60 percent of the Adult Protective Services (APS) cases concerning financial abuse across the country involved an adult child of the elderly individual. Sadly, a considerable amount of financial abuse is carried out by family members under various pretenses or justifications.

The majority of the victims of financial elder abuse range in age from 80 to 89, live alone and are attempting to keep their independence. While women are twice as likely to be victimized as men, elderly men also suffer abuse. The generation prior to the baby boomers is living longer, in large part due to advances in medical science. As a result, they are more reliant on caregivers.

Unfortunately, many such crimes are often unreported because the elderly person is too embarrassed or afraid. The senior may also be afraid of being alone. However, the depletion of their savings can result in a serious threat to seniors’ health and well-being.

According to a study carried out by MetLife, the cost of financial elder abuse is estimated to be approximately $2.9 billion annually, and is increasing. Financial elder abuse is receiving more attention than it has in the past, and in 2014 the Consumer Financial Protection Bureau (CFPB) distributed a guide to help the staff at assisted living and nursing facilities provide better protection for those in their care by thwarting and focusing on financial abuse. The guide offers assistance to staff in noticing and reporting financial abuse committed by relatives or other persons who manage the senior’s finances.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

A study conducted by the Journal of General Internal Medicine revealed that 60 percent of the Adult Protective Services (APS) cases concerning financial abuse across the country involved an adult child of the elderly individual. Sadly, a considerable amount of financial abuse is carried out by family members under various pretenses or justifications.

The majority of the victims of financial elder abuse range in age from 80 to 89, live alone and are attempting to keep their independence. While women are twice as likely to be victimized as men, elderly men also suffer abuse. The generation prior to the baby boomers is living longer, in large part due to advances in medical science. As a result, they are more reliant on caregivers.

Unfortunately, many such crimes are often unreported because the elderly person is too embarrassed or afraid. The senior may also be afraid of being alone. However, the depletion of their savings can result in a serious threat to seniors’ health and well-being.

According to a study carried out by MetLife, the cost of financial elder abuse is estimated to be approximately $2.9 billion annually, and is increasing. Financial elder abuse is receiving more attention than it has in the past, and in 2014 the Consumer Financial Protection Bureau (CFPB) distributed a guide to help the staff at assisted living and nursing facilities provide better protection for those in their care by thwarting and focusing on financial abuse. The guide offers assistance to staff in noticing and reporting financial abuse committed by relatives or other persons who manage the senior’s finances.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

In order to support their endeavors to care for loved ones, caregivers need and deserve recognition and appreciation. However, loved ones who are beset by cognitive and behavioral problems are frequently lacking in the ability to express their gratitude.

There are methods that family caregivers can apply in order to handle their loved ones’ conduct more effectively. Individuals with cognitive and behavioral issues frequently have sensitivity to such stimuli as environmental changes, such as light, noise, temperature and social activity. Become familiar with your family members’ triggers, and take steps to avoid placing them under any undue stress, thus reducing the likelihood that they will become upset.

Because people with behavioral and cognitive problems have a higher sensitivity to anger on the part of caregivers, it is imperative that you maintain your composure when communicating with them. Your capacity to remain calm will have a soothing effect on them. It is also recommended that you take your family member to the doctor on a regular basis for medical evaluations to treat all potential causes of changes in behavior.

Finally, remember that caregivers need care too. Since caring for family members with difficult behaviors can be stressful, it is important for you to have others assume your role periodically in order to give yourself a much-needed break.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

A study conducted by the Journal of General Internal Medicine revealed that 60 percent of the Adult Protective Services (APS) cases concerning financial abuse across the country involved an adult child of the elderly individual. Sadly, a considerable amount of financial abuse is carried out by family members under various pretenses or justifications.

The majority of the victims of financial elder abuse range in age from 80 to 89, live alone and are attempting to keep their independence. While women are twice as likely to be victimized as men, elderly men also suffer abuse. The generation prior to the baby boomers is living longer, in large part due to advances in medical science. As a result, they are more reliant on caregivers.

Unfortunately, many such crimes are often unreported because the elderly person is too embarrassed or afraid. The senior may also be afraid of being alone. However, the depletion of their savings can result in a serious threat to seniors’ health and well-being.

According to a study carried out by MetLife, the cost of financial elder abuse is estimated to be approximately $2.9 billion annually, and is increasing. Financial elder abuse is receiving more attention than it has in the past, and in 2014 the Consumer Financial Protection Bureau (CFPB) distributed a guide to help the staff at assisted living and nursing facilities provide better protection for those in their care by thwarting and focusing on financial abuse. The guide offers assistance to staff in noticing and reporting financial abuse committed by relatives or other persons who manage the senior’s finances.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

About 11% of today’s 40 million Californians are 65 or older. By 2020, that population will be 15%. By 2030, it will be almost 20% and a staggering 22.3% by 2050. What are the implications of this?

A recent column by Dan Walters in the Sacramento Bee warns about the aging of health care providers in California. The column astutely warns that we have an aging population that will present unprecedented demands for services and support from our medical and caregiving infrastructures. Even today there is a shortage of trained, capable caregivers through home care agencies, at assisted living facilities, and in skilled nursing facilities. It will only get worse in the future. It is a looming crisis for all who need long-term care facilities and services.
 
“To rise to this challenge,” suggests estate planning and elder law attorney Michael Gilfix of Palo Alto, California, “we need a new, coordinated, multigenerational approach.” His focus is on the need for more coordination of services and more tailored, focused use of limited family resources. Careful planning to preserve assets and qualify for Medi-Cal, the only program that can pay all or most of the cost of skilled nursing care, must be part of the planning. Medi-Cal, California’s Medicaid program, is needs-based. To qualify, assets must be limited and/or carefully organized. 

This approach is necessary, Gilfix suggests, because there must always be a financial safety net. If all family assets are exhausted before Medi-Cal coverage is obtained, there are no funds available to pay for services that are not covered by the Medi-Cal program.

Children and grandchildren must be viewed as part of the planning and part of the solution. They must participate, coordinate resources, add counsel, and devote time and attention to the needs of their elders. It is self-evident that this is typically a win-win for everyone, but it is rarely done. 
 
Such planning is more typically pursued by wealthier families through the use of “family offices,” but the need is no less critical for the middle class. Middle class families have the power to preserve their homes, their savings, and their legacies. But they must take steps to plan ahead of time.

Attorneys Michael Gilfix and Mark Gerson Gilfix recently co-authored an article entitled, “A New Paradigm: Truly Multigenerational Planning,” published in the September issue of Trusts & Estates magazine, that expands this concept in very practical ways. Gilfix & La Poll Associates, one of the nation’s leading estate planning firms, follows this approach with its clients. For multigenerational planning to be effective, it is critical that steps are taken before the crisis stage.
 
The Gilfix & La Poll Team

Pioneers of Elder Law – For over 30 years, Gilfix & La Poll Associates LLP has innovated creative legal solutions to help you manage and plan the future of your estate. To contact an estate planning lawyer visit www.gilfix.com or call 800.244.9424.

The Cost of Not Planning

There are some simple statistics that help illustrate the cost of not engaging in proper estate planning.  The first is the cost of probate.  There are numerous sources that site the cost of assets going through probate as 3-5% of the total assets.  With a proper plan in place, you can avoid Michigan probate.

Long-Term Care Costs in Michigan

The average cost over all of Michigan for a nursing home is $8,084.  If the planning I suggest can help save months and months of nursing home costs, then is the investment worth it or does it make more sense to pay $8,084 per month until your family runs out of money.

Missing The VA Benefits You Are Entitled To

Many families report that they wish they had entered our office years ago, because they could have been receiving up to $2,120 per month, tax free for a number of years had they engaged in our services years ago.  Unfortunately, they either spoke with the wrong lawyer, found the wrong information on-line or spoke to the wrong family or friend, who led them astray.

Leaving Family Members Unprotected

Most of the estate plans that I review leave everything outright to their loved ones.  This could cost them their own inheritance.  What happens if you leave everything to your daughter and she then gets divorced, where do the assets go?  To the spouse.  What happens if she were to pass away, where do the assets go?  All to the spouse.  Instead of leaving your children pillowcases of money, what if you could protect your children from the outside environment, the divorces, lawsuits, student loans?  Having everything going to them when they reach a certain age does not protect them.

The Cost of Choosing the Wrong Lawyer

Not all lawyers are created equal.  It’s unfortunate.  There are lawyers and legal plans that prepare free wills, powers of attorney for people (UAW Legal Plan).  Unfortunately, you get what you paid for.  Just like if you needed heart surgery, you’d want a heart surgeon instead of a family doctor…estate planning and elder law is no different.

Can you price shop and find someone who will do a cheaper trust, will, power of attorney or even promise you VA qualification or Medicaid qualification?  Sure….but you need to ask yourself why are they cheaper?  Is it apples to apples comparison?  Most likely not.  Are they a Certified Elder Law Attorney (CELA)? Do they teach elder law at law school?  Have they written a book on the subject?  Are they a 10.0 rated lawyer on Avvo?

By engaging with an attorney who is not an expert in the area you are putting your life’s work at risk.  You deserve better.  Estate planning, elder law, and asset protection legal planning are serious business and should be treated as such.

The post The Cost of Michigan Estate Planning appeared first on The Elder Care Firm.

HSAs can also be used as a stealth individual retirement account, but the majority of people are unsure of how to inquire about them. While flexible spending accounts (FSAs) allow users to put away a maximum of $2,500 in pretax dollars every year for medical bills, HSAs do the same but with a higher maximum amount. In 2014, HSAs permitted individuals to set aside a maximum of $3,300, and families a maximum of $6,550, as well as a $1,000 catch-up contribution for people ages 55 and older.

Any remaining funds in the HSA will be rolled over each year and grow tax-free. You can withdraw funds on a tax-free basis from the HSA to cover medical bills at any age. But if you withdraw funds after you reach age 65 for other reasons, the amount will be subject to tax at normal income tax rates.

However, HSAs are not always affordable. They are normally combined with high-deductible insurance plans, which provide lower premiums, but call for greater out-of-pocket payments prior to the time at which coverage becomes effective. In 2014, the minimum deductible for one person was $1,250, and for a family, $2,500. The maximum out-of-pocket expenses for one person was $6,350, and for a family, $12,700.

Even when HSAs are within your budget, you should carefully examine the investment choices offered by an HSA. The majority of the time the funds are invested in money market accounts. It is advisable to first use plans that have greater yearly contribution limits, such as 401(k)s and IRAs.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

For instance, women who earn $75,000 or more on a yearly basis contribute approximately a full percentage point more of income than men who earn the same amount. One percentage point can translate into a significantly greater nest egg and much greater income for retirement.

Women may be better at saving, but because of men’s larger incomes and longer period of time working, their 401(k) balances tend to be larger. While men’s 401(k) balances are about $121,000, women’s are about $78,000.

There are many news stories that indicate that women are more sophisticated investors. They say that an index of hedge funds managed by women performed better than a wider hedge fund index. It has also been said that women spend more time conducting research of investments, exercise more patience and ask questions to others regarding their viewpoints on certain stocks.

Nevertheless, both men and women can find ways to improve their saving, investing and planning. It is advisable to be diligent and disciplined, and to ensure that your saving and investing are part of a long-term plan to realize a certain objective.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Guardianship can be an important legal tool to help family members care for a loved one who is unable to make his or her own decisions due to an illness or disability. Guardianship is determined in state court proceedings. However, when moving to another state, the question often arises whether it is necessary to transfer the guardianship to the new state or begin new guardianship proceedings.

The necessary legal action in a particular case depends on your individual circumstances, including the type of guardianship in question, the state you are moving from, and the state you are moving to. You should consult with an experienced elder law attorney or special needs attorney in both the state you are moving from and the state you are moving to, in order to determine what is needed in your case. However, some general information is presented here.

In many cases, transferring the guardianship to the new state will be desirable or even necessary. Facilities such as nursing homes, group homes and assisted living facilities may insist that a guardianship be authorized by the state where they are located. However, in most cases, the process should not be complicated. That is because 44 states, including New York, have adopted the Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act (UAGPPJA), which provides that the substantive findings of the original state in a guardianship proceeding be adopted by the new state, streamlining the transfer process.

If you are transferring a guardianship from or to a non-UAGPPJA state, the process can be significantly more complicated. A new guardianship proceeding may be required in the new state, and there may even be a court process required in the original state before moving the ward out of the original state.

Learn more about our special needs planning and special education advocacy services at www.littmankrooks.com or www.specialneedsnewyork.com.

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However, one complication that has arisen is that when husbands have taken out reverse mortgages, upon their death, their wives were unable to pay off the loans, and were faced with foreclosure. As a result, the U.S. Department of Housing and Urban Development (HUD) was the defendant in a class action lawsuit filed by AARP, which alleged that HUD failed to protect the women.

Under the new rules, if one spouse takes out a reverse mortgage, and later dies, the surviving spouse can keep residing in the home without any apprehension about foreclosure provided that she or he pays the tax and insurance, and maintains the home. The new rules also state that a couple can still obtain a reverse mortgage where only one of the spouses is 62 or older. And the younger spouse’s age will determine the amount of the couple’s payout even in the event that that spouse is not on the mortgage title. In this way, the amount of the loan will be smaller.

Reverse mortgages are complex financial products, and if you are considering one, you should consult an attorney or trusted financial adviser.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Currently, to be eligible for VA Benefits or Aid and Attendance a veteran (or the veteran’s surviving spouse) must meet certain income and asset limits. The asset limits aren’t specified, but $80,000 is the amount usually used. However, unlike with the Medicaid program, there are no penalties if an applicant divests him- or herself of assets before applying.

The proposed regulations will set an asset limit of $119,220, which is the current amount (in 2015 and 2016) that a Medicaid applicant’s spouse is allowed to retain. But in the case of the VA, this number will include both the applicant’s assets and income. It will be indexed to inflation in the same way that Social Security increases. An applicant’s house will not count as an asset, but there is a two-acre limit on the lot size that can be excluded.

The regulations also establish a three-year look-back provision. Applicants who transfer assets within three years of applying for benefits will be subject to a penalty period that can last as long as 10 years. To avoid the penalty, applicants will have to present clear and convincing evidence that the transfer was not made in order to qualify for Aid and Attendance benefits.

Under the new rules, the VA will determine a penalty period in months by dividing the amount transferred by the applicable maximum annual pension rate (MAPR). The MAPR for surviving spouses is a little more than half the MAPR for veterans, which means the penalty period for a surviving spouse would be almost twice as long as a veteran’s penalty period would be for the same transferred asset.

It isn’t clear yet when the new regulations will take affect, but they could be in place as early as January 1, 2016, and some VA offices are reportedly already processing applications under the new rules. If you are considering applying for Aid and Attendance benefits, you should start the process immediately. Contact your elder law attorney for help.

For more information about veterans’ benefits, click here.

The post VA Benefits for Long-Term Care Will Be More Difficult to Qualify for in 2016 appeared first on The Elder Care Firm.

Currently, to be eligible for VA Benefits or Aid and Attendance a veteran (or the veteran’s surviving spouse) must meet certain income and asset limits. The asset limits aren’t specified, but $80,000 is the amount usually used. However, unlike with the Medicaid program, there are no penalties if an applicant divests him- or herself of assets before applying.

The proposed regulations will set an asset limit of $119,220, which is the current amount (in 2015 and 2016) that a Medicaid applicant’s spouse is allowed to retain. But in the case of the VA, this number will include both the applicant’s assets and income. It will be indexed to inflation in the same way that Social Security increases. An applicant’s house will not count as an asset, but there is a two-acre limit on the lot size that can be excluded.

The regulations also establish a three-year look-back provision. Applicants who transfer assets within three years of applying for benefits will be subject to a penalty period that can last as long as 10 years. To avoid the penalty, applicants will have to present clear and convincing evidence that the transfer was not made in order to qualify for Aid and Attendance benefits.

Under the new rules, the VA will determine a penalty period in months by dividing the amount transferred by the applicable maximum annual pension rate (MAPR). The MAPR for surviving spouses is a little more than half the MAPR for veterans, which means the penalty period for a surviving spouse would be almost twice as long as a veteran’s penalty period would be for the same transferred asset.

It isn’t clear yet when the new regulations will take affect, but they could be in place as early as January 1, 2016, and some VA offices are reportedly already processing applications under the new rules. If you are considering applying for Aid and Attendance benefits, you should start the process immediately. Contact your elder law attorney for help.

For more information about veterans’ benefits, click here.

The post VA Benefits for Long-Term Care Will Be More Difficult to Qualify for in 2016 appeared first on The Elder Care Firm.

There are some assets that are not required to be sold or spent in order to be eligible for Medicaid. These are called noncountable assets, and they include the home, a car, household goods and furnishings, personal effects, prepaid funeral and burial expenses and cash limited to $3,000 for a couple. However, the decision to exempt certain assets is made based on the factors of each case. The Medicaid program for your state will consider the laws of your state, your marital status, living arrangements and other circumstances.

Following are some of the expenses for which it is usually permissible to spend down your money or assets. But since there are differences in each state, it is recommended that you seek advice from an estate planning attorney. When applying for Medicaid, you can spend down your assets on any legitimate debt belonging to you or your spouse. Such debts include mortgage payments, medical bills, rent, utilities, car payments, taxes and credit cards. Full or partial payments of the afore-mentioned expenses, as well as prepayments of loans, are also acceptable.

However, prepaid amounts to caregivers are disallowed for services that have not yet been rendered. Such a prepayment will be considered a gift, and will cause the applicant to be ineligible for Medicaid for a period of time. Similarly, prepayment of any expense prior to the time at which the service is rendered or the applicant receives the benefit, is also disallowed.

A Medicaid applicant can purchase noncountable assets, such as an exempt home or car if the applicant or his or her spouse will be operating the car. In addition, payments made for the maintenance or improvements of a noncountable asset, such as a home, are permitted.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Here are some of the expenses for which it is permissible in most states to spend down your money or assets. When applying for Medicaid, you can spend down your assets on any legitimate debt belonging to you or your spouse. Such debts include mortgage payments, medical bills, rent, utilities, car payments, taxes and credit cards. Full or partial payments of the aforementioned expenses, as well as prepayments of loans, are also acceptable. However, since there are differences in each state, it is recommended that you inquire about the laws of your state or seek advice from an estate planning attorney.

However, prepaid amounts to caregivers are disallowed for services that have not yet been rendered. Such a prepayment will be considered a gift, and will cause the applicant to be ineligible for Medicaid for a period of time. Similarly, prepayment of any expense prior to the time at which the service is rendered or the applicant receives the benefit, is also disallowed.

A Medicaid applicant can purchase noncountable assets, such as an exempt home or car if the applicant or his or her spouse will be operating the car. In addition, payments made for the maintenance or improvements of a noncountable asset, such as a home, are permitted.

Due to drastic changes in the Medicaid program, those who are members of the middle class will also be eligible. And those who are not disabled or in long-term care facilities, will not have to spend down their assets as long as their Modified Adjusted Gross Income (MAGI) complies with income requirements.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Living below your means

With their research, the authors discovered the top one percent spend less of their money eating out. They also continue to live below their means, buying less ostentatious cars even when they can afford the more expensive ones. A recent article by USA Today offers retirees tips on drawing down their retirement funds. When you withdrawal your retirement money to live on, you lessen the powerful effects of compounding. USA Today recommends making a spending plan. If you withdrawal no more than 4 percent of your assets, you won’t outlive your retirement savings but you won’t have as much to leave for your beneficiaries. Living below your means makes a real difference.

Using different mind tricks

Wealthy people stick to budgets, but use different mind tricks to they create more wealth over time. Have money automatically moved from your checking to your savings account when you get a paycheck or a social security check. Re-invest dividends in your retirement and investment accounts so the stocks, mutual funds or exchange-traded funds continue to grow. Another idea is to use the “bucket system,” for budgeting. The authors found people who put money in jars even if they are fictitious jars designated for different expenses manage their money better and feel less stressed about budgeting.

Expecting setbacks in life

Super wealthy people don’t take self-responsibility for their actions. They don’t just let life happen around them, but plan for problems, obstacles and financial emergencies. The authors found extremely wealthy people know they make or break their own success, while poor people tend to think they just have bad luck. One of the great thing about estate planning is it lets you manage outcomes. In most cases, the outcome will be positive as you leave a legacy for loved ones, relatives and charities.

Sharing what you have

Another money habit shared by the one percent is the desire to help other people. Your estate plan can include donations you want to make to charities and to family members. The more money you have, the more you can help others through philanthropic causes.

If you don’t have a will or an estate plan, it’s important to get one in place. Many people feel surprised by how much their home appreciates in value and how much their retirement accounts grow. Meet with elder law and estate planning attorney Christopher J. Berry to set up a Michigan Retirement Plan Trust. Berry and the Elder Care Team will answer all of your retirement planning and estate planning questions so you can avoid probate and leave a powerful legacy. For more information about estate planning and protecting wealth, please contact us.

The post Estate Planning: What You Can Learn from the Very Wealthy appeared first on The Elder Care Firm.

Living below your means

With their research, the authors discovered the top one percent spend less of their money eating out. They also continue to live below their means, buying less ostentatious cars even when they can afford the more expensive ones. A recent article by USA Today offers retirees tips on drawing down their retirement funds. When you withdrawal your retirement money to live on, you lessen the powerful effects of compounding. USA Today recommends making a spending plan. If you withdrawal no more than 4 percent of your assets, you won’t outlive your retirement savings but you won’t have as much to leave for your beneficiaries. Living below your means makes a real difference.

Using different mind tricks

Wealthy people stick to budgets, but use different mind tricks to they create more wealth over time. Have money automatically moved from your checking to your savings account when you get a paycheck or a social security check. Re-invest dividends in your retirement and investment accounts so the stocks, mutual funds or exchange-traded funds continue to grow. Another idea is to use the “bucket system,” for budgeting. The authors found people who put money in jars even if they are fictitious jars designated for different expenses manage their money better and feel less stressed about budgeting.

Expecting setbacks in life

Super wealthy people don’t take self-responsibility for their actions. They don’t just let life happen around them, but plan for problems, obstacles and financial emergencies. The authors found extremely wealthy people know they make or break their own success, while poor people tend to think they just have bad luck. One of the great thing about estate planning is it lets you manage outcomes. In most cases, the outcome will be positive as you leave a legacy for loved ones, relatives and charities.

Sharing what you have

Another money habit shared by the one percent is the desire to help other people. Your estate plan can include donations you want to make to charities and to family members. The more money you have, the more you can help others through philanthropic causes.

If you don’t have a will or an estate plan, it’s important to get one in place. Many people feel surprised by how much their home appreciates in value and how much their retirement accounts grow. Meet with elder law and estate planning attorney Christopher J. Berry to set up a Michigan Retirement Plan Trust. Berry and the Elder Care Team will answer all of your retirement planning and estate planning questions so you can avoid probate and leave a powerful legacy. For more information about estate planning and protecting wealth, please contact us.

The post Estate Planning: What You Can Learn from the Very Wealthy appeared first on The Elder Care Firm.

In some of these specialties, you can receive certification; in others you do not. But is it really that important to be certified in a particular specialty?

In some areas of law, the certification is nice but not always necessary because that type of law is so commonly practiced that everyone who practices it for some amount of time can become very competent and trusted.

But in the area of elder law, that area geared toward seniors in terms of estate planning, long-term care and issues involving assisted-care or nursing home facilities – is a very different animal. As more mature adults tend to become more targeted, more susceptible and are more vulnerable to unscrupulous characters, getting certified as an elder-law attorney can be very important. Not only does it build a strong foundation for serving clients well, but the certification means that potential clients will be able to trust an attorney with the certification to do the very best work for the clients’ best interests.

The certification is not easy. Not just any attorney who has happened to do some elder law can apply for the certification, and even fewer of them get accepted.

So if you or a family member is reaching that “senior” age (which starts around 50) and you may or will be in need for some elder-law assistance, you can know why a certified elder law attorney (CELA) would be the right choice for you.

Why choose a CELA ahead of any attorney who happens to practice elder law? Here are some criteria for a CELA to meet before even applying for the certification

• Be a member in good standing with the bar association for all states in which you are licensed to practice.
• Be a practicing lawyer (actively) for at least five years. (Again, this is before applying for certification.)
• Must have at least 45 hours of elder law legal education in the previous three years before applying.
• Must have spent at least 16 hours per week and conducted at least 50 elder-law cases during the three years prior to the applying.
• Must be evaluated favorably at last five elder-law attorney specialists.
• Pass a full-day certification exam.

Once the certification is in place, CELAs must then get re-certified every five years. And again, the criteria above are just to get the application approved for consideration!

With this in place, you can now know that a certified elder-law attorney is the one to trust with your elder-law needs. This person specializes in elder-law issues, knows the law better than anyone and has gone through rigorous training to back it up.

For many, it’s a matter of confidence and trust. With a CELA, confidence and trust is baked right into the certification. Find your nearest CELA today and get the care, compassion and legal advice you need.

The post Elder Law Certification: More than Just Paper appeared first on The Elder Care Firm.

In some of these specialties, you can receive certification; in others you do not. But is it really that important to be certified in a particular specialty?

In some areas of law, the certification is nice but not always necessary because that type of law is so commonly practiced that everyone who practices it for some amount of time can become very competent and trusted.

But in the area of elder law, that area geared toward seniors in terms of estate planning, long-term care and issues involving assisted-care or nursing home facilities – is a very different animal. As more mature adults tend to become more targeted, more susceptible and are more vulnerable to unscrupulous characters, getting certified as an elder-law attorney can be very important. Not only does it build a strong foundation for serving clients well, but the certification means that potential clients will be able to trust an attorney with the certification to do the very best work for the clients’ best interests.

The certification is not easy. Not just any attorney who has happened to do some elder law can apply for the certification, and even fewer of them get accepted.

So if you or a family member is reaching that “senior” age (which starts around 50) and you may or will be in need for some elder-law assistance, you can know why a certified elder law attorney (CELA) would be the right choice for you.

Why choose a CELA ahead of any attorney who happens to practice elder law? Here are some criteria for a CELA to meet before even applying for the certification

• Be a member in good standing with the bar association for all states in which you are licensed to practice.
• Be a practicing lawyer (actively) for at least five years. (Again, this is before applying for certification.)
• Must have at least 45 hours of elder law legal education in the previous three years before applying.
• Must have spent at least 16 hours per week and conducted at least 50 elder-law cases during the three years prior to the applying.
• Must be evaluated favorably at last five elder-law attorney specialists.
• Pass a full-day certification exam.

Once the certification is in place, CELAs must then get re-certified every five years. And again, the criteria above are just to get the application approved for consideration!

With this in place, you can now know that a certified elder-law attorney is the one to trust with your elder-law needs. This person specializes in elder-law issues, knows the law better than anyone and has gone through rigorous training to back it up.

For many, it’s a matter of confidence and trust. With a CELA, confidence and trust is baked right into the certification. Find your nearest CELA today and get the care, compassion and legal advice you need.

The post Elder Law Certification: More than Just Paper appeared first on The Elder Care Firm.

However, one complication that has arisen is that when husbands have taken out reverse mortgages, upon their death, their wives were unable to pay off the loans, and were faced with foreclosure. As a result, the U.S. Department of Housing and Urban Development (HUD) was the defendant in a class action lawsuit filed by AARP, which alleged that HUD failed to protect the women.

Under the new rules, if one spouse takes out a reverse mortgage and later dies, the surviving spouse can keep residing in the home without any apprehension about foreclosure provided that she or he pays the tax and insurance, and maintains the home. The new rules also state that a couple can still obtain a reverse mortgage where only one of the spouses is 62 or older. And the younger spouse’s age will determine the amount of the couple’s payout even in the event that that spouse is not on the mortgage title. In this way, the amount of the loan will be smaller.

Reverse mortgages are complex financial products, and if you are considering one, you should consult an attorney or trusted financial adviser.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Mature man reading old book surrounded by heaps of books

SO WHAT IS ELDER LAW?

As you can see on the banner and even in the URL address for this website, we are all about elder law. But perhaps after reading some of this you might be asking, what is elder law anyway?

It sounds like it should be pretty specialized, right?

Well it is, to a point. The specialty is the clientele – those who are older and thus will likely be involved in matters of estate planning, Medicare and Medicaid, Social Security and the like.

No, it is not the legal doctrine of TV lawyer/radio personality Larry Elder.

There are all kinds of attorneys who dabble in various categories of elder law, including those that actually have clientele of varying ages. But there are very few elder law “specialists,” those who at least know a lot about every area of elder law. Elder law can cover the gamut, from estate planning to probate to long-term care to insurance to wills and powers of attorney to nursing home neglect/abuse to Social Security to Medicare and Medicaid.

There are about 13 categories under the umbrella of elder law, and it will be important if you are looking for an elder-law attorney, to understand the right questions to ask to find the attorney who will be the right fit for you. Often it is personality that plays a role, but also it is more about the expertise of that attorney in the particular area of concern that you may have.

What Does an Elder Law Attorney Do?

An elder law attorney can serve as a very important adviser for a senior citizen and/or his or her family in legal and financial matters pertaining to elderly people. Whether it’s planning the estate to setting up long-term care options to powers of attorney, wills and trust – even end-of-life and real-estate issues – an elder law attorney can navigate you and your family through the various issues that will arise at some point.

There are many attorneys who at least dabble in some aspects of elder law, but there are certified elder law attorneys (with the CELA designation) who have a broader and deeper knowledge of the various areas of elder law.

Some people do hire a financial planner and an elder-law attorney for financial and legal matters, respectively, and the two professionals can often work together in consultation. However, if you can only afford to hire one, an elder-law attorney might be the wiser move since many financial issues do have legal guidelines and regulations that an attorney can help interpret – and the attorney would know enough about financial details to be a sound adviser in getting your affairs in order.

If you are in the market for an elder law attorney, try to ask these questions to find the right fit for your particular need:

• How long have you been practicing law (in general)?
• What percentage of time do you dedicate to elder law matters?
• Do you have a specialty within elder law?
• What would I need for our first meeting?
• What is your fee schedule?

No matter what specific need you might have within elder law, a certified elder law attorney can help you with any topic. As many elder law situations involve differing state laws and regulations, it is best to hire an elder law attorney who practices in the state where your elderly family member lives so as to not create confusion and legal troubles later.

Having an elder law attorney, at least on a retainer basis, can be a very sound investment for you and your family for when the inevitable happens, and the transfer of the estate goes on harmoniously and with little to no hassles.

The post What is Elder Law and Elder Law Attorney appeared first on The Elder Care Firm.

Mature man reading old book surrounded by heaps of books

SO WHAT IS ELDER LAW?

As you can see on the banner and even in the URL address for this website, we are all about elder law. But perhaps after reading some of this you might be asking, what is elder law anyway?

It sounds like it should be pretty specialized, right?

Well it is, to a point. The specialty is the clientele – those who are older and thus will likely be involved in matters of estate planning, Medicare and Medicaid, Social Security and the like.

No, it is not the legal doctrine of TV lawyer/radio personality Larry Elder.

There are all kinds of attorneys who dabble in various categories of elder law, including those that actually have clientele of varying ages. But there are very few elder law “specialists,” those who at least know a lot about every area of elder law. Elder law can cover the gamut, from estate planning to probate to long-term care to insurance to wills and powers of attorney to nursing home neglect/abuse to Social Security to Medicare and Medicaid.

There are about 13 categories under the umbrella of elder law, and it will be important if you are looking for an elder-law attorney, to understand the right questions to ask to find the attorney who will be the right fit for you. Often it is personality that plays a role, but also it is more about the expertise of that attorney in the particular area of concern that you may have.

What Does an Elder Law Attorney Do?

An elder law attorney can serve as a very important adviser for a senior citizen and/or his or her family in legal and financial matters pertaining to elderly people. Whether it’s planning the estate to setting up long-term care options to powers of attorney, wills and trust – even end-of-life and real-estate issues – an elder law attorney can navigate you and your family through the various issues that will arise at some point.

There are many attorneys who at least dabble in some aspects of elder law, but there are certified elder law attorneys (with the CELA designation) who have a broader and deeper knowledge of the various areas of elder law.

Some people do hire a financial planner and an elder-law attorney for financial and legal matters, respectively, and the two professionals can often work together in consultation. However, if you can only afford to hire one, an elder-law attorney might be the wiser move since many financial issues do have legal guidelines and regulations that an attorney can help interpret – and the attorney would know enough about financial details to be a sound adviser in getting your affairs in order.

If you are in the market for an elder law attorney, try to ask these questions to find the right fit for your particular need:

• How long have you been practicing law (in general)?
• What percentage of time do you dedicate to elder law matters?
• Do you have a specialty within elder law?
• What would I need for our first meeting?
• What is your fee schedule?

No matter what specific need you might have within elder law, a certified elder law attorney can help you with any topic. As many elder law situations involve differing state laws and regulations, it is best to hire an elder law attorney who practices in the state where your elderly family member lives so as to not create confusion and legal troubles later.

Having an elder law attorney, at least on a retainer basis, can be a very sound investment for you and your family for when the inevitable happens, and the transfer of the estate goes on harmoniously and with little to no hassles.

The post What is Elder Law and Elder Law Attorney appeared first on The Elder Care Firm.

A life insurance conversion allows policy holders to use their life insurance as income to pay for assisted living. This process can be complex, and is not available with every policy; however, for many life insurance purchases, it can serve as a tax-free loan.

People who own life insurance policies also have the option of selling their policy with a life settlement or a viatical settlement. Both types of settlements allow the policy holder to sell the policy for more than its surrender value, but less than the death benefit.

Reverse mortgages allow homeowners to use the equity on their home to receive cash, allowing seniors to receive money to pay for assisted living expenses and other expenses they may not be able to cover otherwise. With a reverse mortgage, the lender actually makes payments to the borrower, rather than the other way around.

Long-term care insurance is available, but can be expensive for older adults, with potentially limited benefits. Older adults who already require assisted living are unlikely to qualify for long-term care insurance. Because of the high cost and potential limitations, long-term care insurance is not right for everyone.

Government benefits are also available to older adults who cannot afford assisted living on their own. Veterans may qualify for the Aid and Attendance Benefit through the Veterans Administration. Thanks to Medicaid expansion, more older adults than ever also qualify for Medicaid, which can help pay for assisted living in some cases.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Your personal representative may not have the power to obtain access to your online accounts that may contain valuable and sentimental photos of your family, pets, posts on social media, emails and bank account statements. This is because several online providers have differing policies or terms-of-service contracts concerning whether they will give fiduciaries access to online accounts. For instance, the terms-of-service agreement for Yahoo claims to give the company the power to remove an account upon the demise of the account holder, regardless of how the estate may be affected.

In response to the obstacles that have prevented fiduciaries from carrying out their responsibilities, the Uniform Law Commission embarked on a process that has taken over two years to complete, and has culminated in the Uniform Fiduciary Access to Digital Assets Act (UFADAA).

It is a statute that was enacted in order to operate along with a state’s current laws regarding probate, trusts, guardianship, and powers of attorney. The new legislation will enable fiduciaries to have authority over an individual’s digital assets in addition to the usual assets, and to act on behalf of a protected person or estate. It is an important statute for the digital age, and it is recommended that each state enact the new law as quickly as possible.

If you are interested in learning more about protection of your digital assets, consult with an experienced estate planning attorney at Hook Law Center.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

The single biggest problem Millennials face when it comes to saving for retirement is not saving — or not saving enough. Only six in 10 workers who are ages 25 to 34 contribute to their 401(k), compared to 74 percent of workers ages 55 to 64, according to a recent Vanguard report.

Those who do put money aside often do not save enough. Workers ages 25 to 34 put an average of 5.5 percent of their income into their 401(k), compared to 8.7 percent for those ages 55 to 64 — and the optimal rate to save may be higher than either of those numbers. As it stands, many Millennials do not save enough to receive their employer match, which means they miss out on “free” money.

These issues are particularly troubling because saving for retirement early has the biggest positive impact on retirement saving. It is much more difficult to make up for lost time in one’s 40s and 50s than it is to save an optimal amount during one’s 20s and 30s.

The good news is that, while Millennials as a whole are not on track to be prepared for retirement, individual young people still have time to make the necessary adjustments to get on track — and those changes will reap greater benefits than for an older person putting the same amount of money away.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Without careful planning, many individuals are at risk of outliving their retirement funds, especially in the current low-growth, low-interest environment. Developing a careful investment strategy is the best way to make sure that retirement savings last.

The first step is to contribute as much as possible to Roth accounts and other retirement plans, especially during peak earning years. These accounts often have good returns and are tax-favored.

Traditionally, investing in bonds was recommended for generating income for five to 10 years. However, bonds do not currently have strong returns. Some types of bonds may still be an option for some retirees, but in many cases shifting away from bonds is best.

Cash-buildup life insurance and annuities can be a strong choice for many people, because those assets grow tax-deferred. They can also provide income to spouses after a person passes away.

For many people, a diversified portfolio that focuses as heavily as possible on retirement accounts is the best option. However, personal finance decisions are highly individual choices. Hook Law Center Financial Services can provide you with individualized investment advice.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Open up a dialogue

If you feel worried that your loved ones have unrealistic expectations about your estate, talk to an elder law attorney to draw up a retirement plan trust. When you sit down with your attorney, ask the specific questions you have about how to talk to your heirs and what kind of pertinent information most people share. If you feel comfortable doing so, ask your child or children to accompany you to see your elder attorney. According to CNBC, some older people don’t feel comfortable telling their children what kind of assets and how much money they are leaving.

Protect your assets

Asset protection is an important goal whether you plan to leave assets to relatives or just want to have enough to pay for your ideal end-of-life medical and health care as well as long-term care facilities. While you are living, you want the best qualify of life and care. When you pass away, you don’t want your assets eaten up through taxes and probate. The essential job of an elder attorney is to fulfill a client’s wishes by providing maximum protection from insurance and legal tools.

• Give while you are living

Some senior citizens rather give as much as they can while they are living. Some ideas for sharing wealth with loved ones if you are under age 59 and a half include taking up to $10,000 from a Roth IRA account to help pay for college or for a child or grandchild’s first home purchase. According to a piece by Kiplinger.com, you can take the money out penalty free. If you are older than 59 and a half, you can take out as much as you want from a Roth without incurring taxes. CNBC points out a lot of seniors do prefer to spend money on loved ones while they can see their money at work.

Encourage your child to save

One of the best favors you can do for your child who depends on your wealth is to refer them to your estate planning attorney for guidance. Whether your child needs to beef up contributions to a 401(k) or other company-sponsored retirement plan or contribute to a Roth IRA, an estate planning attorney will review their retirement plans. If you do pass away, your children could inherit your retirement accounts. An estate planning attorney will help your heirs figure out the best way to protect the assets.

Elder law and estate planning attorney Christopher J. Berry and the Elder Care Team understands that retirement planning is difficult but necessary. You and your children who depend on your wealth will find financial peace of mind with a Michigan Retirement Plan Trust. For more information on retirement planning and how to talk to your children about your estate plans, please contact us.

The post When Heirs Count on Your Wealth as Their Retirement Plan appeared first on The Elder Care Firm.

Avoiding sibling rivalry with Estate Planning

If you have more than one child, discuss the inheritance to prevent sibling rivalry issues. Some surprises are good, but others create tension and uncertainty. According to forbes.com, one important issue is who will be the executor of the will.

Clearing up any confusion

If you are fortunate enough to own several homes such as vacation or investment properties, don’t assume which children would prefer to inherit a certain property. An estate planning attorney will let you know how to handle a situation when one real estate property is worth more money than another. Also, you can guard against the problem of leaving a home to one child that you think will be worth more or less than it is worth in the future. Also, your children might have preconceived ideas about how much you are worth. The AARP cited a Fidelity Investments survey that showed children underestimated their parents’ estate by $100,000. In many cases, you could give your children greater peace of mind.

Avoiding probate and taxes

If you don’t want to put your children through the stress of probate, talk to an elder and estate planning attorney about ways to avoid probate with a retirement plan trust. One great way to help your children is to pay off your debts while you are living if you can. Also, you might want to simplify your financial situation by selling real estate in another state that you no longer need or want to include in the estate plan. Experts advise people who want to avoid estate taxes to start making lifetime gifts each year.

Explaining your intentions

Most parents and grandparents only want what’s best for their family. Explain your reasoning to your children or other beneficiaries. By having the difficult inheritance talk you can create more family harmony. The AARP recommends if you plan to distribute the inheritance unequally, just explain your reasoning. Some reasons might include the fact that one child earns significantly more or one child has many more children to care for in life.

While it might to tempting to try to control your children from beyond this world, experts caution against using an “incentive trust,” that stipulates what your children have to do in order to receive an inheritance. While incentive trusts make for a good storyline in a movie, it’s often counterproductive and leads to lawsuits that eat up your hard-earned money.

Christopher J. Berry, an elder law and estate planning attorney, and the Elder Care Firm, work hard to provide you with the answers you need for your estate plan. For more tips on how to talk to your children and their inheritance and how to set up a Michigan Retirement Plan Trust, please contact us.

The post Estate Planning: Having the Inheritance Talk appeared first on The Elder Care Firm.

• A health care service, prescription drug, item or supply which you think you are entitled to
  receive;
• Payment for a health care service, prescription drug, item or supply that you already received;
• A change in the amount you are required to pay for a healthcare service, prescription drug,
  item or supply.

You can also file an appeal if Medicare or your plan ceases to offer or pay for your health care service, prescription drug, item or supply. If you are enrolled in a Medicare Medical Savings Account (MSA) Plan, you can file an appeal if you believe that you have satisfied your deductible or you think that a service or item should be applied toward your deductible.

In the event that you decide to file an appeal, request any information that could be helpful to your case from your physician, health care provider or supplier. The appeals process consists of five levels. If you do not agree with the decision reached at any level, you can usually proceed to the next level.

The first step in filing an appeal is to review your Medical Summary Notice (MSN), which lists all of the services and supplies that were billed to Medicare during a time frame of three months. It also reveals the amount paid by Medicare, and the amount you may be required to pay the provider. In addition, the MSN shows whether Medicare has denied your medical claim.

You will receive an MSN by mail every three months. Should you decide to file an appeal, you must do so within 120 days of the day on which you received the MSN in question.

Here are the three ways in which you can file an appeal:

1. Complete a “Redetermination Request Form” and mail it to the Medicare contractor.
2. On the back of the MSN, there are instructions for you to follow. You are required to mail your
   request for redetermination to the firm that manages Medicare claims.
3. Mail a written request to the firm that manages Medicare claims.

You can also consult an elder law attorney who can help you file an appeal of a claim or reimbursement that was denied.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Some of the most important estate planning terms to understand include:

• Advance medical directive – A document that details a person’s health care wishes in case they become incapacitated. An advance medical directive also allows the individual to name someone to make health care decisions on their behalf.
• Estate – All of the money, real property and personal property a person owns.
• Estate planning – The process of taking steps to ensure that one’s wishes are followed after death, especially regarding the distribution of one’s wealth and assets.
• Intestate – Describes someone who died without making a will. When a person dies intestate, the state distributes their estate according to established rules of inheritance.
• Power of attorney – A document which allows another person to handle one’s financial affairs in the case of incapacitation, or sometimes even before one is incapacitated. The person granted power of attorney may have power over all financial decisions, or only certain tasks.
• Probate – A court-mediated process in which an estate’s assets are distributed. Probate is a public process that typically takes months. Wills go through probate, as do the estates of people who died without making a will.
• Trust – A document that establishes a situation where property is held by one party in the interests of another. Property that is held in trust does not have to go through probate. Trusts can also allow individuals to give some or all of their estate to charity in a charitable trust, to control how and when a younger family member receives their inheritance, and more.
• Will – A legal document in which a person outlines how their estate should be administered following their death.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Having a Roth account can be especially beneficial for people who anticipate being in a higher tax bracket when they start making withdrawals than when they deposited the money into the account. In contrast, converting to a Roth may not be the right decision for people who expect to have a lower tax rate in the future.

Those who already have a traditional IRA can convert the funds into a Roth. In the year of the conversion, the individual must pay taxes on the full amount placed in the Roth. If necessary, the conversion can be done in smaller steps over the course of several years. One effective strategy is to convert just enough to reach the top of one’s current tax bracket.

Another advantage of Roth accounts is that withdrawals of earnings can be made with no taxes or penalties, as long as the person is over the age of 59½ and has had at least one Roth open for at least five years. Contributions can be withdrawn without taxes or penalties at any time.

In contrast to traditional IRAs, there is no minimum distribution requirement for Roth IRAs upon reaching the age of 70½. Account holders who do not need to withdraw from their Roth IRA can allow the money to grow in tax shelter until their death. Once the account passes to a non-spouse heir, that person is required to take minimum distributions. The taxes paid on a Roth conversion are not included in a person’s taxable estate.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

“Many people are overwhelmed by long-term care costs, which are not covered by typical health insurance plans,” said Michael Gilfix, an elder law attorney in Palo Alto. “Life settlement firms offer to help, but the industry is still relatively small and not rigorously regulated.”

By selling one’s policy to a life settlement company, it is possible to get cash flow from a policy that otherwise does not have an immediate cash value. The policyholder gives up ownership of the policy but receives money to use for long-term care expenses. In addition, the policy is no longer considered an asset that can interfere with Medicaid/Medi-Cal eligibility.

“Since you forfeit ownership of the policy and lose its value, life insurance settlement is more appropriate for people who do not have dependents or a spouse who will need the support,” said Gilfix.

The value of a policy is based on calculations such as the policyholder’s age, medical history and the value and type of the policy. Most people receive somewhere between 20 to 45 percent of the policy’s value, but the rate can be higher or lower.

The life settlement industry is still small, with companies like The Lifeline Program converting only a few hundred policies each year. The industry is also relatively unregulated, and only a few states have enacted regulations, including California.

The office of Gilfix & La Poll can refer interested individuals to professionals who can advise about life settlements.

Pioneers of Elder Law – For over 30 years, Gilfix & La Poll Associates LLP has innovated creative legal solutions to help you manage and plan the future of your estate.
To contact an estate planning lawyer visit http://www.gilfix.com/ or call 800.244.9424.

Hiding all the facts

According to an article by desmoinesregister.com, the first step when estate planning for a second or third marriage is to open up the lines of communication. Experts say money is a major cause of stress as well as divorce. Start a marriage off right with full disclosure about estate planning, assets and your intentions.

Failing to update a will

A common mistake people make when remarrying is to not update the will. You should know if you are marrying a person who doesn’t have a will. Before you get married, consult with an elder law attorney. After you marry, go together with your spouse to update legal papers and beneficiaries as it relates to your assets.

Neglecting to ask questions

Another mistake people make when they remarry is assuming they understand a spouse’s will. Because legal language is often complicated, don’t be afraid to ask your elder law about language that seems ambiguous. If you have a blended family, you need to stipulate whether money will be left to your children, your step children, step children from a previous marriage or a combination.

Letting your spouse decide

Instead of letting one spouse make all the estate planning decisions, work as a team. One option to consider is a qualified terminable interest property trust which will allow your new spouse to live off your assets and stay in your house while still leaving an inheritance in tact for the children from a prior marriage. According to the desmoinesregister.com, a QTIP trust provides for your children from a previous marriage because it preserves the principal for the children. What’s more, the assets that go to a QTIP trust qualify for marital deduction so it reduces the estate taxes at your death.

Ignoring the wealth disparity

An elder law attorney in Michigan can also help you when one spouse is wealthier than the other spouse. When you even things out, it’s likely you can take advantage of important tax savings if the less wealthy spouse passes away first. Talking about estate planning is a sensitive topic for many couples, but it’s imperative to prepare.

If you decide you want a prenuptial before marriage or a post-nuptial agreement after marriage, talk to your elder law attorney. It’s important to understand the rights and responsibilities of marriage and what will happen if you divorce. Elder law attorney Christopher J. Berry and the Elder Care Team will work hard to review and adjust your beneficiaries to ensure your assets go to the heirs you want. You need a retirement plan trust that recognizes your special needs as a blended family. Christopher J. Berry will protect you with a Michigan Retirement Plan Trust that considers income tax and required minimum distributions ramifications. For more tips on estate planning for a second marriage, please contact us.

The post Estate Planning Mistakes to Avoid When Remarrying appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

Though Baby Boomers do focus on cash flow in retirement, planning beyond that with an estate plan is often not on their radar.

When it comes to finding the right long-term care facility for your parent, ideally your loved one is in a position to give input or has already provided input in the past. Still, as a child of a loved one who needs long-term care in Michigan, it’s important to evaluate the most recent information including the financial ability to afford certain facilities and which level of care is most appropriate. By sitting down with an elder law attorney before a health situation escalates, you will have greater peace of mind in making life-changing decisions. According to a report by Kiplinger.com, choosing a long-term care facility for a loved one is daunting. It’s never an easy decision to move someone you care about into a facility, but it’s often in the best interest of the senior citizen. If a doctor diagnosed your parent with Alzheimer’s, it’s vital to your parent’s safety and health that he or she gets the best care possible. Kiplinger cites a report by the Alzheimer’s Association that revealed 75 percent of those diagnosed with Alzheimer’s go into a nursing home by the time they reach age 80, which compares to 4 percent of the general population.

Taking the first step

The first step is to talk with your loved ones and doctors or other medical professionals about specific needs. Your parent’s medical providers will advise you on whether he or she needs assisted living to help with daily living activities such as bathing or dressing. Another level of care is “skilled nursing” for those with more complicated health issues or bedridden. Memory care is another classification of care for people dealing with dementia or Alzheimer’s disease.

Thinking about the future

Some people don’t want moved from one facility when they need assisted living and then to another part of town or different city when they need more intensive care. Your loved one can more easily keep the same friends by living in a senior living facility with an entire continuum of care. Some facilities have different floors or separate buildings for different levels of care. Also, talk to your parent about whether he or she would prefer some religious component. Whether it is a chapel services or a faith-based facility, a senior citizen will be happier to have spiritual options.

Crunching the numbers

Assessing what your loved one’s financial situation is easier when you have an elder law attorney with documents drawn up for your parent. Experts say the cost of a long-term care facility often ranges from about $3,600 a month to more than $10,000 a month. If your parent is a veteran, he or she could get financial assistance for long-term care from the Department of Veterans Affairs. Medicaid isn’t going to kick in until your loved one depletes his or her other assets.

Starting the search

Whether you want to stay in Michigan or go outside the state to find a facility is up to your family. However, many older people like staying in their home state to receive care so they are close to loved ones and friends. The eldercarelocator site lets you search for services for older adults. The site is a public service by the U.S. Administration on Aging. You can look up different topics such as Adult Day Program, Alzheimer’s Disease and Caregiver. After creating a list of different potential facilities, set up an appointment to visit in person. Experts recommend you pay close attention to the cleanliness and the way the staff treats people. Use all of your senses to gauge whether or not the facility is up to your standards.

Elder law attorney Christopher J. Berry and the Elder Care Team specializes in a Michigan Retirement Plan Trust. We can make sure your loved one has his or her financial affairs in order including money to pay for long-term care. For more information about choosing a long-term facility, please contact us.

The post A Go-To Guide for Choosing a Long-Term Care Facility for a Parent appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

Michigan estate planning and elder law news brief.

In 2014, Congress proposed a law that would penalize veterans and surviving spouses of veterans who were looking to apply for the VA Benefit if they transfered assets within the three year period from when they applied for benefits.  If the veteran or surviving spouse did transfer assets, there would be a penalty imposed on the veteran or surviving spouse.

However, that bill failed and never saw the light of day.

VA Benefits Proposed Rule Change in 2015

In early 2015, the VA took another route to get the “3 Year Look-back” rule implemented.  Instead of a change in law through Congress, they looked to change the administrative rules.

With that goal in mind in early 2015 they made a proposed rule change that would implement a 3 year look-back.  There was a comment period that closed March 24th.  There were over 800 people who made comment, including many elder law lawyers.

However, once the comment period closed.  We heard nothing.  Until now….

Chalk this up to VA Benefits gossip if you wish, but it’s something.

An email from a VA official to an elder law attorney colleague of mine.

VA Benefit 3 Year Look-Back Implemented in the End of Fiscal Year 2016

According to the email from the VA official, the new VA rule will be implemented in the end of fiscal year 2016.  There are still many questions out there…for example will the rule grandfather in prior planning?  Who knows.  But for now, we keep moving ahead, because these are just rumors.  But where there’s smoke, there’s fire.

Here is a summary of the proposed rule:

The Department of Veterans Affairs (VA) proposes to amend its regulations governing entitlement to VA pension to maintain the integrity of the pension program and to implement recent statutory changes. The proposed regulations would establish new requirements pertaining to the evaluation of net worth and asset transfers for pension purposes and would identify those medical expenses that may be deducted from countable income for VA’s needs-based benefit programs. The intended effect of these changes is to respond to recent recommendations made by the Government Accountability Office (GAO), to maintain the integrity of VA’s needs-based benefit programs, and to clarify and address issues necessary for the consistent adjudication of pension and parents’ dependency and indemnity compensation claims. We also propose to implement statutory changes pertaining to certain pension beneficiaries who receive Medicaid-covered nursing home care, as well as a statutory income exclusion for certain disabled veterans and a non-statutory income exclusion pertaining to annuities.

The post VA Benefit 3 Year Look Back Implemented in 2016 appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

Even if you don’t receive a diagnosis of Alzheimer’s, you could deal with other chronic illnesses. You may need a plan customized to a particular illness

Most Michigan residents want to spend their retirement years playing golf and traveling, but a diagnosis of Alzheimer’s can change your leisure and health plans. Senior citizens often have to adopt incapacitation strategies to handle their affairs if they suffer with dementia. Having a ‘shadow’ estate plan that kicks in if a diagnosis of Alzheimer’s ever becomes present can give you and your family peace of mind. An elder law and estate planning attorney can help with asset preservation while making sure the right people make your financial and medical decisions. For people who don’t have adequate protection with a long-term care policy and other protection, a diagnosis of Alzheimer’s is often disastrous. Your personal wealth should end up in the hands of your beneficiaries. According to an article by urindependent.com that cited the Alzheimer’s Association, more than 5 million Americans have Alzheimer’s. By 2050, experts expect those numbers to double or even triple. A piece by lifehealthpro.com suggests meeting with an elder attorney while you are still in good health to discuss a shadow plan since the disease affects one in eight families.

Gathering important documents

After creating a shadow plan such as a retirement plan trust with the help of an elder attorney, it’s important to gather the legal documents such as your will and estate plan as well as important medical and bank documents, brokerage accounts or files. Your elder attorney and trusted family members should have copies of the records.

Managing the home

If you become incapacitated, you will need to have a plan already in place to sell your home or use it for some other purpose. Legal planning for property management is important whether you are able to stay in your home with assistance or have to go into a long-term care facility or nursing home. Some of the legal options for property management to consider include trust agreements, jointly held accounts and durable powers-of-attorney.

Planning for medical decisions

Another major component of estate planning when factoring in Alzheimer’s is future medical decisions. While you are still healthy, talk to a reliable Michigan elder attorney to execute and advance directive for medical decision-making. You will be able to make sure others honor your medical wishes if mentally incapacitated. You can also designate a loved one to make medical decisions on your behalf.

Securing long-term care insurance

Even if you don’t receive a diagnosis of Alzheimer’s, you could deal with other chronic illnesses. You may need a plan customized to a particular illness, according to a report by Forbes. Long term care insurance is part of your asset protection plan. If you put off sitting down with an elder law attorney, you aren’t alone. Forbes cited one survey that showed only 35 percent of Americans have a will and just 21 percent have a trust set up. According to an article by Kiplinger, the costs for caring for a person with Alzheimer’s is overwhelming. Long term care insurance policies often provide custodial care. Just make sure you examine the home-care requirements for your policy.

Making arrangements for the last several years of your life is emotionally draining. No one wants to see strangers poorly handling their estate or making medical decisions. An elder attorney will help you with important end-of-life document and create strategies so you can avoid probate.

We can protect your assets from probate, taxes and the high costs associated with chronic illnesses or Alzheimer’s. By avoiding probate, you will also keep your affairs private. For more information about a shadow plan and what you need to do to protect yourself and your family as you age, please contact us.

The post Creating a ‘Shadow’ Estate Plan for the Diagnosis of Alzheimer’s appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

A Campaign to Educate Clients in Their Mid 50s of the Need for Estate Planning

A majority of adult Americans lack the legal documents that would protect them and their families from the serious legal complications that can arise in a health or other emergency or death. The Elder Care Firm of Christopher J. Berry, CELA has joined the 5@55 campaign which is being launched to get the message out that neglecting to get one’s legal paperwork in order can have unforeseen and serious consequences. Elder Law firms around the country are leading this effort to inform the public of the importance of obtaining legal protection no later than the age of 55. The 5@55 Campaign offers a solution to this failure to plan with the following essential legal documents which everyone should complete by age 55.

The 5@55 basic documents are:

The Health Care Proxy
The Living Will
The Power of Attorney
The Will
The Cyber Will/Digital Dairy

To support this campaign Elder Law attorneys, Judith Grimaldi and Joanne Seminara have written a simple guide called , 5@55 : The Five Essential Legal Documents You Need by Age 55 (Quill Driver Books) The book which will be available in June 2015 offers the reader enlightening and often surprising case histories that illustrate the pitfalls that can arise when one has not effectively planned for such life emergencies and is not protected by these five legal documents.
Age 55 has been determined to be the optimum time to begin estate planning. Most individual family responsibilities to support children have decreased. The focus can now turn to establishing a life plan for the individual’s later years. The need to plan for the future and take precautionary steps, to make decisions affecting possible retirement and, unfortunately, provide for the possibility of major health changes reaches a higher level of urgency in people reaching their mid fifties. The 5@55 campaign chose 55 as the age marker to enter this important planning phase similar to the way 65 is accepted as the age to retire.
Every day lawyers see clients who need to spend their hard-earned savings to repair the damage caused by being unprepared to face the challenges that life can unexpectedly deliver. We have come to accept using insurance to protect against fires, automobile crashes, health emergencies The 5@55 campaign offers a kind of legal insurance to protect against other potential personal emergencies such as a health emergency, a family crisis or even death, . Most people hold their financial lives close to the vest, therefore the consequences that arise because of poor legal planning usually play out behind closed doors. We are trained not to speak about our money. This is to be kept private. This “secrecy” has lead to family problems. As a result, families are forced to scramble to learn about their loved ones legal and financial needs when an emergency hits. Bills need to be paid, decisions need to be made and assets need to be protected. Life continues and the needed resources may be frozen. The campaign will bring out into the open the risks that exist and need to be addressed, in the face of such crisis especially as one grows older and the risks multiply.
The Forward to 5@55 : The Five Essential Legal Documents You Need by Age 55 was written by a retired and noted New York City Surrogates Judge who for many years oversaw the trials and tribulations of people who had not adequately protected themselves. The ultimate irony is that this 72 year old jurist admits in her Forward that she does not have this necessary paperwork! This demonstrates both the level of unpreparedness of the public and how vital this campaign is in overcoming this failure of individuals to get their legal house in order. The resistance is surprisingly strong even among people who know the risks, Media coverage about the 5@55 campaign will hopefully play an important role in awakening the public to the legal and health dangers they face.
For more information or to arrange an interview with 5@55 attorney Christopher J. Berry, CELA about 5@55 or to receive information about this easy to read guide contact The Elder Care Firm of Christopher J. Berry, CELA at 888-390-4360.

The post The Five at Fifty Five- Legal Tools for Mid-Life Planning appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

MyRA accounts are free to open and are sponsored by the government. Account holders can contribute directly from their paycheck. To qualify to open an account, an individual’s income must be less than $129,000, while a married couple’s household income must be less than $191,000.

The accounts will be especially beneficial for people who work part-time and those who work at small businesses that do not offer retirement benefits. However, anyone can sign up for a myRA, even those who do have an employer-sponsored retirement plan.

MyRAs are basically the same as Roth IRA accounts, in which after-tax dollars are invested so that earnings can be withdrawn without paying taxes in retirement. MyRAs will be invested in government bonds only, which means that they currently have lower returns than a typical IRA. However, there are no fees, and since the accounts are backed by the government, it is impossible to lose the original investment.

Because myRAs are intended to be a starter retirement savings account, there are some limitations on how they can be used. Account holders can contribute up to $5,500 per year. If the account balance exceeds $15,000, or if 30 years have passed, the account must be rolled over into a Roth IRA in the private sector.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

A record 2.2 million people age 60 and older now hold student loan debt — three times as many as in 2005. Collectively, older adults owed $43 billion in student debt at the time of the report.

Retirees may have student loan debt from a number of different sources. Some carry debt from their own educations, especially those who went back to school later in life. Others took out student loans to help pay for their children’s or grandchildren’s tuition. Either way, skyrocketing tuition rates make the burden high for those over sixty.

Additionally, a larger portion of older adults who have student loan debt are now having difficulty paying. Nearly 10 percent of older adult borrowers are at least 90 days behind on payments (as compared to about 6 percent in 2005).

Student loan debt can have devastating effects for seniors, as the government has the right to withhold a portion of a person’s Social Security payments to cover student loans. As of September 2014, 119,000 older adults were having their Social Security checks garnished.

Some older adults find themselves working long past their intended retirement age, sometimes on a part-time basis, to manage the educational loans.

Student loans are one of the longest-lasting forms of debt. Most student loans cannot be discharged during bankruptcy, although some lawmakers are pushing for reform.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Hire a Medicaid Planning Lawyer

Having a Certified Elder Law Attorney on your side makes the process of filing for nursing home medicaid so much easier.  There are many pitfalls for those unaware.  If the nursing home Medicaid application isn’t completed properly then your loved one could either be turned down for Medicaid or sacrifice assets that wouldn’t need to be spent down if working with an elder law attorney who is an expert on Michigan Medicaid planning.

What’s Required to Apply for Medicaid in Michigan

There really are only two things necessary to apply for Medicaid in Michigan.  First you need to fill out the actual Medicaid application.  Next you need to provide documentation to verify general and financial requirements.

Sounds simple, right?  If only it was that easy.  There is an art and science to putting together a Medicaid application that is accepted by the Department of Human Services (DHS)

Once you’re found eligible medically for nursing home Medicaid, then you must pass the financial asset test as well.  For a single individual you can only have $2,000 in countable assets to qualify for Medicaid.  A Michigan elder law attorney can help you protect more than the $2,000 through proper Medicaid planning.

Some of the documents DHS may ask to help prove financial eligibility include current tax bills, real estate appraisal, copies of mortgage, bank statements and even bank statements from the previous 5 years.

Married Couples Qualifying for Medicaid

If you’re married and have a loved one in a nursing home and you’re looking to qualify for Medicaid, you will also need to provide a snapshot of your assets upon first entering the hospital or nursing home.  This can help establish how much the community spouse may be able to protect with the help of a Medicaid planning elder law.

Medicaid Planning is Not a Do-It-Yourself Project

It is important to hire a Michigan Medicaid planning lawyer if you’re completing a Medicaid application because there are many dangers to watch out for an opportunities that can be missed.

If you need help with Medicaid for a loved on in Macomb, Oakland, Wayne or Livingston county, contact our office and we’ll be able to offer expert assistance as one of a handful of Certified Elder Law Attorneys (CELA) in all of Michigan.

The post Michigan Medicaid Applications for Nursing Home Care appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

This is especially important lately to Baby Boomers who are starting to age and worry about their own futures. Their children are at the stage in life where they have their own concerns about career, money, and caring for their children.

It’s an ongoing process for every generation to worry about the welfare of their heirs and even costs of health care when they can’t take care of themselves. These concerns only grow as the complexities of health care costs continue to grow more troublesome and expensive.

During times of death or incapacitation, you also don’t want financial delays for your heirs if you can help it. In that regard, a living trust is possibly the greatest thing you can do for your family. The reason is a living trust doesn’t go through probate like wills do. This is important for a number of reasons, especially if you have debts to pay after death.

Paying Off Health Care Debts Immediately

LegalZoom points out the immediate benefits of living trusts based on the prospect that your heirs gain access to your assets in weeks rather than months or years with wills. Generally, more complex estates benefit greatly from living trusts because it distributes your assets to your beneficiaries quicker so you avoid court costs on probate. You simply choose a successor trustee who you have faith in to distribute your assets.

This places your immediate children or your other beneficiaries at an advantage to pay off your debts to clear your good name. It’s possible you were having elder care in an assisted living facility for years where you couldn’t afford all the payments. This might have created a debt problem, as well as unpaid hospital bills for any medical treatments.

While next of kin are responsible for your debts, you want your good name cleared. All your financial resources that were possibly locked up before are accessible so those debts get paid. In this regard, you can consider a living trust part of elder law, which is our legal focal point here at The Elder Care Firm.

What makes your living trust even more valuable is nobody in your family can contest it. It’s revocable, so you’re in control of it while alive, and your trustee is the only one controlling it after your death. This also saves court costs since contesting could go on for months or years, creating a massive legal bill.

But what about when you become ill or incapacitated? Is the living trust any good in a scenario where you’re alive, yet can’t communicate?

Taking Control of Your Assets During Incapacitation

Certain scenarios like suffering a stroke could place you in a situation where you’re alive, yet can’t speak for communicating on dealing with your estate. In most scenarios, having a durable power of attorney helps if you don’t have a living trust. Regardless, a living trust gives you complete power in this case so a trustee can handle your assets if you can’t. If you can still communicate in some way, you also wield power over who’s really in control.

The best thing is all financial concerns are easily ironed out through your trustee, even if you’re unable to do anything. After suffering a health event, this gives you peace of mind rather than stress during a time when you need to recover from illness.

Contact us here at The Elder Care Firm and we’ll work with you on putting together a living trust. It does take some time depending on how many financial accounts you have, yet it sets up your future for the welfare of your family.

The post A Living Trust Helps Create Less Stressful Transitions in Death or When Incapacitated appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

These “life settlement” companies purchase the policy from the policyholder, then continue to pay the premiums. They make a profit by collecting on the policy after the policyholder’s death.

In addition to acquiring cash that can help with the immediate costs of long-term care, selling one’s life insurance can make it easier to qualify for Medicaid. Once the policy is sold, it no longer belongs to the person who sold it, so individuals do not need to turn it over to qualify for Medicaid.

As people age and earn less income, it is not uncommon to allow life insurance policies to lapse, rather than pay the premiums. Most life insurance policies only have value after death, with no cash surrender value. That’s why selling the policy can make sense for seniors who face high care costs, do not have dependents who would rely on the life insurance after their passing, and do not have family members who can help out with the cost of the premiums.

Life settlement companies make an offer on a policy based on the person’s age and medical history, along with the face value of the policy. Depending on the company, this offer can be anywhere from 20 to 45 percent of the original face value.

Although life settlement companies may benefit some seniors, they are still a relatively new and tiny industry, with little regulation in most states. Families considering life settlement should carefully weigh their options and financial situation before deciding to sell.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

As an elder law attorney seeing the effects, it becomes more alarming every day seeing rising assisted living costs for the elderly here in Michigan and the rest of the United States. As Baby Boomers start to age, the demand for assisted living is going to rise exponentially over the next 10 to 15 years. The National Institutes of Health did a study on what the impact of the Baby Boom generation will have on health care by the time we reach 2030. Their statistics pointed to various important things that far too many people still haven’t taken into consideration.

At the top of the list in their analysis was families finding payment and insurance systems that assures quality care to supersede what’s available now. This was already a major warning on how what we’re doing today isn’t suitable for sustaining this major health care burden in the future.

Regardless, many of those born before 1946 are needing assisted living care as you read this. Those born in the 1920s or 1930s are in their 80s and 90s now, which is the prime age range when assisted living is necessary. Many of those people may need care, yet could live for another decade or more with proper assistance.

Within this concern are their children, or the current Baby Boomers. They have financial concerns of their own and worry about how they’ll afford assisted living for their parents. These concerns become undoubtedly more sobering when you read the statistics on costs.

Assisted Living Costs by the Day

It’s hard to imagine that assisted living is now in the three figures just for a day’s worth of care. LongTermCare.org has current numbers available, and it’s a reminder of how one day of living in an assisted facility costs $205. Over a month’s time, this is well over $6,000, which possibly exceeds even what your aging parent makes in a month from their retirement income.

The statistics above are just for a semi-private room in a nursing home with perhaps not the most inviting environment. An assisted living facility with one bedroom is a little cheaper, though it still comes out to well over $3,000 per month. This possibly exceeds what your parents make, meaning tapping other reserves if they have any.

It’s sometimes more affordable for care directly in the home, despite depending on how much care your parents need. Most home health aides charge within the $20 range per hour, so it’s still not cheap if your parents need assistance most of the day, and every day.

If you’re in a situation where this is the only option, it no doubt has you worried if you have to tap particular resources you wanted to preserve. In some cases, your parents may have financial resources, though they’re possibly locked up with no access.

With proper elder care planning, this doesn’t have to happen. An experienced elder care lawyer knows about hidden financial resources and advanced planning tactics so when the time comes for assisted living, it’s a smooth transition.

Elder Law Planning: How You Can Plan Now for Your Own Future

Hopefully you already planned for your own parents who need assistance now. Not that it’s necessarily too late to take care of things for them currently. However, you also need to think of yourself if you’re a possible Baby Boomer or even younger. All of us may need elder care once we reach our retirement years.

Through estate planning, the crafting of wills, plus income assistance benefits, many options are open for elderly people today. When these matters aren’t worked out in advance, chaos ultimately ensues, including being locked out of potential financial resources.

Here at The Elder Care Firm, we’re a leading elder care law firm that helps everyone plan accordingly so costs of assisted living don’t become the worst possible stress to life.

Contact us now so we can work with you on an elder care legal plan for your situation. You have more financial options than you think. We’ll help plan it this year so your own children won’t have the burden of worrying about your transition when you can’t care for yourself any longer.

The post Assisted Living Costs Keep Rising, Elder Law Planning Can Mitigate the Cost appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

By Thomas D. Begley Jr.

WHAT SHOULD YOU KNOW ABOUT LONG-TERM CARE?

Long-term care is an area of growing concern to older Americans and their families. Approximately 70% of individuals age 65 or older eventually require some form of long-term care. Whether that consists of home healthcare, assisted living or nursing home care, the costs can be substantial. Without adequate planning, long-term care costs can quickly deplete a lifetime of savings. That, in turn, can jeopardize the financial security of a surviving spouse and undo any plans for transferring wealth to children.

Given the complexity of long-term care planning and the potential for costly errors, it is important to retain an experienced Elder Law attorney to guide you through the process. 

HOW CAN YOU PLAN FOR LONG-TERM CARE NEEDS?

Generally, the long-term care planning process involves:

• Identifying and prioritizing goals.
• Tax planning.
• Considering funding alternatives.
• Choosing appropriate planning tools.
• Applying for Medicaid, as necessary.

WHAT ARE YOUR GOALS?

The first step in long-term care planning is identifying goals and priorities. Typically, individuals want to:

• Obtain the best quality of care for the person in need.
• Maintain financial security for the healthy spouse.
• Avoid becoming a burden on children.
• Preserve a legacy for children.
• Avoid Medicaid lien on homes.
• Understand and plan appropriately for taxes, including:
  • Income tax.
  • Gift tax.
  • Federal estate tax.
  • New Jersey estate tax.
  • New Jersey inheritance tax.
  • Capital Gains tax.

WHAT SHOULD YOU KNOW ABOUT TAX PLANNING?

As you consider which assets might be used to fund long-term care and which you would like to leave to your children, it is important to understand the income tax ramifications of the following:

• Medical deductions. It is possible to take a medical deduction for qualified long-term care costs. For nursing home care, the deduction usually is equal to 100% of the cost of care. For assisted living and home care, it usually is a portion of the cost of care.

• Carryover basis. If a parent transfers assets to a child, the parent’s cost, known as the basis, carries over to the child, becoming his or her cost basis. This exposes the child to substantial capital gains taxes when the asset is sold.

• Step up in basis. If a parent leaves a child an asset that has increased in value, the child’s cost basis “steps up” to the fair market value of the asset at the parent’s death. This saves the child a significant capital gains tax bill when the asset is sold.

• Retirement plans. The tax treatment of qualified retirement plan assets makes them a good source of funding for long-term care, if funds are needed. While distributions are taxable (since the funds have grown on a tax-deferred basis while in the account), taxes are at least partially offset by the medical deduction, provided the funds are used for long-term care. Since there is no step up in basis on these assets, passing them to children would have capital gains as well as ordinary income tax consequences.

• Deferred annuities. Annuities in which the income has been deferred provide another good source of long-term care funding. When the income is withdrawn, it is taxable at ordinary income tax rates. But those taxes can be at least partially offset by the medical deduction if income is used for long-term care. If the annuity is transferred to a child; however, the entire deferred income is immediately taxable, and there is no step up in basis.

• Interest on E, EE, H, and I bonds. Long-term care costs also may be funded with these types of bonds. To the extent that the bonds have deferred interest, which has not been taxed, that interest is taxable when the bonds are redeemed. But those taxes can be offset, at least partially, by the medical deduction, as long as the funds are used for long-term care. If these bonds are passed on to children, there is no step up in basis.

• Gain on the sale of a home. As a general rule, if you have resided in a home as your principal residence for two of the five years preceding the date of sale, you are entitled to a $250,000 exclusion from capital gains tax, if single, or a $500,000 exclusion if you are married.

• Capital gains tax. There is a federal capital gains tax levied at the rate of up to 20% on profit from the sale of appreciated assets, such as homes and securities. There is also New Jersey income tax on this profit.

HOW WILL YOU PAY FOR LONG-TERM CARE?

There are five ways to pay for long-term care: private pay, long-term care insurance, Medicare, Veterans Administration benefits, and Medicaid.

Private pay

Paying for long-term care privately is the least desirable option since few families can afford the $100,000+/- annual price tag over an extended period of time.

Long-term care insurance

While long-term care insurance is an excellent way to pay for care, only 6- 8% of the elderly have this type of insurance. There are four reasons people don’t buy long-term care insurance:

• Lack of awareness. The industry has not done an adequate job marketing this product.

• It is estimated that only 10- 20% of the elderly can afford the long-term care insurance.

• At age 65, 25% of long-term care insurance policy applicants are rejected for health reasons.

• Since most people are optimists and prefer not to consider unpleasant outcomes, they don’t think they’ll need it. This proves to be the wrong decision 60% of the time. Unfortunately, the consequences of this mistake can be financially devastating to individuals and their families.

When buying long-term care insurance, it’s important to consider these factors:

• The type of care covered.
• The amount of daily benefits.
• Elimination periods.
• Inflation riders.
• Pre-existing condition clauses.
• The length of coverage.
• Guaranteed renewability.
• Waiver of premiums.
• The financial strength of the insurance company.

Medicare

If you expect to have Medicare cover long-term care costs, you should know that it:

• Offers extremely limited payment for home care and no payment for assisted living.

• Will pay for a nursing home stay only under certain conditions. The patient must have had a Medicare-covered stay in a hospital lasting at least three days and must have entered a nursing home to obtain skilled care within 30 days of discharge from the hospital.

• Will not pay for custodial care. The patient must receive skilled care to qualify for Medicare. If that level of care stops, the Medicare payment will stop. Examples of needs requiring skilled care include insertion of a feeding tube, five day per week rehabilitation, and insulin dependence.

• Will pay for a maximum of 100 days. That amount of coverage is not guaranteed and is a maximum, not a minimum. There is a co-insurance from day 21 through day 100. For 2015, the co-insurance rate is $157.50 per day. That may be covered if the patient has the appropriate Medi-gap policy.

Veterans’ benefits

If you believe you are eligible to have Veterans’ benefits cover long-term care costs, you should be aware of the following:

• Federal VA nursing homes. A veteran whose disability is 70% or more service-related is entitled to free lifetime nursing home coverage, regardless of means. These individuals are given priority for admission to federal VA facilities. Veterans who do not have a service-related disability are means-tested to determine eligibility for payment. As a practical matter, these individuals are unlikely to gain admission to a federal VA facility.

• VA Aid & Attendance benefits. Veterans Aid & Attendance benefits are available to certain veterans. These individuals must have served for at least two years of active duty and one day must have been during a war. There are income and resource eligibility tests. Aid & Attendance is available to veterans and to spouses of deceased veterans. For 2015, the monthly benefit for a veteran with dependents is $2,120, for a single veteran $1,788, and for the spouse of a deceased veteran $1,149.

• State VA benefits. The New Jersey Veterans Administration operates three Old Soldiers’ Homes for New Jersey veterans and their families. They are located in Paramus, Edison and Vineland. Veterans, spouses of veterans, surviving spouses, and, in some cases, parents, may be eligible to enter these facilities. Space is limited, and there is often a long waiting list. The monthly rate for Veterans who are not financially qualified is much lower than that for private nursing homes. Financially-eligible veterans qualify for a subsidy, which further reduces the cost dramatically. In some instances, a spouse remaining at home is entitled to retain a portion of the resident’s income for certain expenses.

Medicaid

If you may need to rely on Medicaid to cover long-term care costs, you should be aware of the following:

• Income limits. For 2015, there is an income cap of $2,199 per month for Medicaid eligibility. However, if an individual’s income exceeds that cap, a Miller Trust can be established to obtain income eligibility. Under a Miller Trust, a portion the Medicaid applicant’s income is deposited into a trust to bring the remaining income under the income cap. This is a legal fiction that makes no sense, but it enables many individuals to obtain Medicaid in nursing homes, assisted living facilities, and at home who would not otherwise be eligible.

• The Minimum Monthly Maintenance Needs Allowance. Medicaid regulations provide that if the applicant is married, the spouse remaining at home is entitled to a minimum monthly allowance. In some situations, if there is a shortfall, the difference can be retained from the income of the spouse requiring care. For the period of July1, 2014, through June 30, 2015, the Minimum Monthly Maintenance Needs Allowance is $1,966.25 and the Excess Shelter Allowance threshold is $589.88 per month for certain housing expenses.

• Resource limits. Persons receiving Medicaid generally can have assets of no more than $2,000. Certain assets are excluded, such as a home (occupied by a community spouse or child who is under age 21, blind or disabled), an automobile, personal effects, prepaid funeral expenses, medical equipment, inaccessible resources (such as an estate in probate), term life insurance, whole life insurance with a maximum face value of $1,500, and a $2,000 personal needs account.

If there is a joint account owned by the applicant “or” another individual, Medicaid takes the position that the entire account is a countable resource for the Medicaid applicant. If the account is owned by the applicant “and” another individual, Medicaid assumes that there was a transfer of assets when the applicant(‘s/s’) child was added to the account, but that each joint owner owns a pro rata share of the account. If the child contributes the assets and later withdraws them, there is no transfer-of-asset penalty. The child bears the burden of proof regarding whether he or she made a contribution to the account.

• Pooling of assets. If a Medicaid applicant is married, the resources of both spouses are pooled to determine Medicaid eligibility. A snapshot of the couple’s resources is taken as the first moment of the first day of the first month in which one of the spouses receives an institutional level of care, even if that care is delivered at home. The well spouse is entitled to a Community Spouse Resource Allowance, but the remaining assets must be spent down prior to Medicaid eligibility.

The Community Spouse Resource Allowance is 1/2 of the countable resources with a maximum of $119,220 and a minimum of $23,844 for 2015.

• Transfer-of-assets rules. Medicaid has strict requirements regarding the transfer of assets from an applicant to his or her children or other parties.

• Medicaid imposes a 60-month (five-year) lookback for transfers of assets. This means that Medicaid will review the applicant’s relevant financial records going back five years to determine whether funds have been transferred during that time period.

• If assets were transferred during the lookback period, Medicaid imposes a penalty. That penalty, which is a period of ineligibility for Medicaid, is calculated by dividing the amount transferred by the average cost of a nursing home in New Jersey determined by the Division of Medical Assistance and Health Services. Unfortunately, this divisor is always less than the actual cost of care.

Penalties may be for a period of months or partial months. The larger the transfer, the longer the period of ineligibility. The penalty does not begin until the applicant is eligible for an institutional level of care, is otherwise financially eligible for Medicaid (i.e. has spent down assets to $2,000) and has no other period of ineligibility outstanding.

For example, assume that a person transferred $50,000 within the lookback period, triggering a seven-month penalty or period of ineligibility for Medicaid. The penalty period would begin when that person was already in a nursing home, had spent down assets to $2,000 and had no other period of ineligibility outstanding. Consequently, the individual would have no money with which to pay for the nursing home care for seven months.

• Acceleration strategies. There are many strategies available to accelerate the date of Medicaid eligibility. These strategies fall into two categories spend down and transfers.

Spend Down. It is possible to spend down assets through:

• Repayment of debt.
• Payment for services.
• Purchase of personal effects.
• Making home improvements.
• Prepayment of funeral expenses.
• Purchase of an automobile for a healthy spouse.
• Purchase of a home for a healthy spouse.
• Purchase of a life estate.
• Establishment of a care agreement.

Transfers. Despite the five-year lookback, in many instances, it is still possible to transfer assets. For example, some transfers are exempt from Medicaid transfer-of-asset penalties. In some cases, tax advantages can be achieved by transferring assets. Additionally, assets may be transferred from one spouse to another through divorce.

Transfer alternatives. There are several ways to transfer assets.

• It is important to consider whether a transfer should be made outright to children or to a trust. Outright transfers have many risks. They can expose assets to the children’s creditors or make them available in a divorce settlement. If grandchildren plan to apply for college financial aid, the transferred assets will need to be disclosed on the application, potentially resulting in a reduction of elimination of aid. Additionally, when assets are transferred to the children, they will lose the step up in basis they would have received if the assets were passed after the parent’s death. The principal residence exclusion on the sale of the home will be lost as well.

If assets are transferred to a grantor trust, the trust can be designed so that, at the parent’s death, the assets will receive a step up in basis. That will result in significant tax savings for the children. The trust also can stipulate that the income tax on the trust assets will be paid by the parent. If a home is transferred to a trust and later sold, the trust can be established to preserve the $250,000 or $500,000 exclusion from capital gains tax on the sale of a principal residence. Additionally, trusts can eliminate risk factors associated with outright transfers to children. Even if a child is serving as trustee, the assets would not be subject to the claims of that child’s creditors or become involved in an action for divorce. These assets would not need to be disclosed on a grandchild’s application for college financial aid.

Several types of trusts are used when Medicaid planning is at issue. All of these trusts are irrevocable.

• Children’s trusts. Assets are transferred to a trust, and the parent does not reserve the right to receive income from those assets. If the parent receives Medicaid and transfers assets out of the trust, there is the risk that there may be a transfer-of-asset penalty. That penalty would be imposed by multiplying the parent’s annual income by his or her life expectancy and dividing the sum by the state divisor.

• Donee trusts. This type of trust is appropriate when a parent transfers assets to children, outright, but the children plan to later establish a trust to hold the transferred assets.

• Disability annuity trusts. If a parent has a disabled child, assets can be transferred to a disability annuity trust for that child’s benefit.

• Disability annuity special needs If a parent has a disabled child who is receiving SSI and Medicaid, assets must be transferred to a disability annuity trust wrapped within a special needs trust in order to preserve the child’s benefits.

Care agreements. In many cases, a child provides care to a parent. To accommodate such an arrangement, the child may move into the parent’s home or the parent may move into the child’s home. Alternatively, the child may provide care while retaining a separate residence from the parent if the parent resides in a nursing home or assisted living facility. It is possible for the parent to compensate the child for this care, effectively transferring assets to the child. This can be done without triggering a penalty, provided that three requirements are met:

• There must be a written care agreement.
• Payment can be made only for care provided after the date of the agreement.
• Compensation must be reasonable.

Note that the income paid to the child is taxable because it is for services. In some circumstances, the parent must withhold from the child for FUTA and FICA. Withholding from income tax is not required unless both parties agree. Medicaid resists these care agreements and great caution must be taken in properly drafting the documents and in delivering appropriate services.

There are several ways to transfer a home.

• Transfer outright to children. A common mistake is for parents to transfer a home outright to children. This results in a number of negative consequences.
  • Loss of control. The parent loses control over the home.
  • Gift taxes. Since the home is worth more than $14,000, it exceeds the allowable annual exclusion gift.
  • Carryover basis. The parent’s cost basis in the home carries over to the children. In some cases, the parent purchased the home many years before, and there has been significant appreciation. Eventually, the children will have to pay capital gains tax on that appreciation.
  • Loss of principal residence exclusion. The $250,000/$500,000 principal residence exclusion is lost since the parent no longer owns the home.
  • Loss of real estate tax benefits. The homestead tax rebate, Veteran’s deduction, senior citizen’s deduction, tax freeze, and ability to itemize deductions are all lost.

• Transfer, reserving a life estate/right to use or occupy. When the home is transferred to children, but the parent reserves a life estate or right to use and occupy it, the following occur:
  • The parent retains control. The children cannot sell or mortgage the house without the parent(‘s/s’) signature on the deed or the mortgage.
  • Gift tax exemption. A gift tax exemption can be filed as long as the value of the home does not exceed $5,430,000. In most cases, there will be no taxes due.
  • Step up in basis. At the parent(’s/s’) death, the children receive a step up in basis on the value of the home, which reduces their capital gains tax liability.
  • Real estate tax benefits. The homestead tax rebate, Veteran’s deduction, senior citizen’s deduction, estate-tax freeze, and ability to itemize deductions on income tax returns are all retained.
  • Loss of principal residence exclusion. The principal residence exclusion is lost. This is an important consideration if the home is sold during the parent’s lifetime.

• Transfer to a grantor trust. The home also may be transferred to a grantor trust, with the following outcome:
  • Control of the home vests in the trustee rather than the parent.
  • Gift tax exclusion. There is no gift tax due when the gift is to a grantor trust.
  • Step up in basis. The children receive a step up in basis at the parent(’s/s’) death.
  • Loss of real estate tax benefits. The homestead tax rebate, Veteran’s deduction, senior citizen’s deduction, estate tax freeze, and ability to itemize deductions on income-tax returns are all lost.
  • Principal residence exclusion. This can be maintained.

• Sell a remainder interest. A parent can sell a child a remainder interest in the home and retain a life estate. It is likely that Medicaid will require the parent to live in the home for one year for this strategy to be effective. The value of the remainder interest is determined by tables published by the federal government. The older the parent, the greater value of the life estate. At age 75, the life estate is worth approximately 52% and the remainder interest is worth approximately 48%. If the parent had a home valued at $200,000, the child would pay approximately $96,000 for the remainder interest. At the parent’s death, the child would own the $200,000 home.

• Purchase a life estate in the child’s home. The flip side of the sale of a remainder interest is for the parent to purchase a life estate in the home of the child. Again, the federal government’s life estate tables are used. If the child has a home with equity of $200,000 and the parent is age 75, the parent can pay the child $104,000 in exchange for a deed granting him or her a life estate in the home. The parent must actually move into the home and reside there for at least one year. If there is a mortgage on the home, this would reduce the equity purchased by the parent. Consideration also must be given to the “due on sale” clause in the child’s mortgage and to capital gains tax liability.

• Reverse mortgages. In many instances, children provide financial support to their parents to bridge the gap between the parent(’s/s’) income and the parent(‘s/s’) expenses. In order to ensure that these funds will be repaid if the parent ever requires long-term care, it is good practice to record a mortgage against the parent’s estate to secure the funds advanced by the children.

Medicaid estate recovery

At the death of a Medicaid recipient, the state is entitled to recover from his or her estate. In New Jersey, an estate includes all assets in the name of the decedent, as well as assets in which the decedent had an interest through joint tenancy, tenancy in common, right of survivorship, a living trust, or another arrangement. Effectively, this means that if a husband and wife own a home together and the husband is a Medicaid recipient, at his death, Medicaid can file a lien on the home. If the home is owned as tenants by the entirety, which is the usual way married couples own homes, the lien will be for 100% of the value of the home. In Pennsylvania, estate recovery is limited to the probate estate. The recovery will be for all Medicaid benefits received after age 55. No recovery will be made if there is a surviving spouse or a surviving child who is under age 21, blind, or permanently and totally disabled. Life estates established during the parent(’s/s’) lifetime are exempt from estate recovery. Recovery cannot be made against the estate of the surviving spouse. If a lien is placed against the home, the spouse will not be forced from the home, but Medicaid will want payment if the home is sold or the spouse dies.

WHAT TOOLS ARE AVAILABLE FOR LONG-TERM CARE PLANNING?

• Asset protection plan. An asset protection plan is designed to help you achieve your goals despite the barriers erected by Medicaid and tax laws.

• If you are married, you and your spouse probably have reciprocal wills, through which you leave everything to each other. When one spouse requires nursing home care, it is important to review existing wills. Generally, it is best to leave unchanged the will of the disabled spouse. However, the will of the other spouse should be revised so that, if he or she dies first, assets are not left to the disabled spouse.

• Living will. Your living will should be reviewed to ensure that it contains appropriate instructions regarding end-of-life decisions. Specifically, it should state the types of treatment you do or do not want in the event that you are either brain dead or terminal, and two physicians and a family member have agreed that there is no hope of your recovery.

• Power of attorney. Your powers of attorney should be reviewed for adequacy. Often, powers of attorney are missing such elements as the right to make gifts or do banking in accordance with the New Jersey Durable Power of Attorney Act. Additionally, many powers of attorney fail to include a reference to real estate that is to be sold. Prior to the sale of real estate, many title companies require that the street address and block and lot of the property be included in the power of attorney.

• Children’s trust. Establishing a trust for the benefit of children often offers tax advantages. It also can help to avoid the risk of making outright transfers to children, such as the risk of creditor actions or the loss of assets in a divorce.

• For most clients, the primary goal of long-term care planning is to protect their home. While many clients feel they should deed their home outright to their children, this often is not a good solution because of the risk factors and adverse tax effects. There are; however, a number of other strategies available to achieve this goal.

• Care agreement. If a child cares for a parent, it is possible for the parent to pay for that care, effectively transferring assets in a manner that will not trigger a Medicaid penalty. This must be done pursuant to a written care agreement.

WHAT SHOULD YOU KNOW ABOUT APPLYING FOR MEDICAID?

Medicaid applications are filed with the Board of Social Services for the county in which the care is being provided even if the applicant lived in a different county. Applicants must report all assets under penalty of perjury. The Board of Social Services has 30 days to approve or deny an application, but typically, the process takes about 60 days. Applicants have a right to appeal in the event of a denial. Medicaid can be granted retroactively for three months prior to the date of application if the Medicaid applicant was eligible at that time. Otherwise, eligibility begins on the first day of the month following the Medicaid application.

Medicaid eligibility rules are complex, and it is possible for errors to result in a delay in eligibility. In such cases, the facility must be paid by the family on a private-pay basis until Medicaid eligibility is granted. Given the potential for this outcome, many applicants choose to have an elder law attorney represent then during the application process. An elder law attorney also can help with periodic redeterminations for Medicaid eligibility. These occur annually for recipients on the Medicaid Only program and every six months for those on the Medically Needy program.

WORKING WITH BEGLEY LAW   GROUP

For over 70 years, the attorneys of the elder and disability law firm Begley Law Group have been dedicated to helping clients plan for long-term care concerns. We have expertise in all aspects of elder law and provide clients with the most up-to-date information and advice. The firm participates in the formulation of legislation related to elder law issues. We also advocate for the rights of seniors on both national and state levels.

Clients requiring long-term care planning can benefit from our Asset Protection Planning program, designed to help identify goals and find the best strategies and solutions for achieving them. At the initial meeting, we will discuss your situation and ascertain your needs. We will then advise you of our fee, which is a flat rate that covers everything within the scope of the service.

LONG TERM CARE SELF-DIAGNOSTIC TEST

Many clients involved in long-term care planning find it useful to complete the following Self-Diagnostic Test. Please take a few minutes to answer these questions.

1.  Am I willing to risk all that I have accumulated through a lifetime of hard work and disciplined saving, including my home, my car, and all of my liquid assets, rather than take the time to plan for the future?       □ Yes     □ No

2. Do I understand that the cost of planning is insignificant when compared to the cost of paying for long-term care?   □ Yes   □ No

3. Do I understand that the risk of my needing some form of long-term care (e.g., home care, assisted living, nursing home care) is roughly 70%?      □ Yes     □ No

4. Do I know what long-term care will cost? $________________

5. Do I know how I will pay for that care if I need it?____________________________________________

6. Do I know what the impact will be on my spouse and children if I spend $100,000 ± per year on long-term care?__________________________________________________________________________

7. Should I explore the possibility of buying long-term care insurance?     □ Yes     □ No

If no, why not?___________________________________________________________________________

8. Should I hope this problem never arises and ignore it?     □ Yes     □ No

9. Should I take steps to try to protect my life savings now?      □ Yes     □ No

What are my reasons for these decisions?____________________________________________________

________________________________________________________________________________________

10. Do I understand that if I become sick, it may be impossible for my spouse or children to care for me, regardless of how much they are committed to doing so?     □ Yes     □ No

11. Are my wills, trusts, living wills, powers of attorney and other legal documents up to date?   □ Yes     □ No

Durable Powers of Attorney

There is a need in all of us to nurture our parents as they become older. We make decisions regarding where they will live – whether in their own home, with you or in an elder care facility. After making this decision, however, you find there are other preparations to arrange. You may now find yourself in charge of such financial and medical matters as overseeing their insurance and day-to-day concerns like paying the bills. This is where durable powers of attorney can change things and pave the way for both you and your parent to have smoother transitions on all necessary legal matters.

Durable Power of Attorney in Michigan

A durable power of attorney enables your elderly parent (called the “principal” in the power of attorney document) to appoint an “agent,” (you), to handle specific health, legal and financial responsibilities. This document is especially important in regards to their healthcare. With the need for proper medical assistance becoming such an important issue, being able to step in and make decisions regarding your parent’s care, and their benefits under the Affordable Care Act, is vital. For instance, under this act, seniors with Medicare benefits will never have them reduced or eliminated and, will always be able to choose his or her own doctor. This is why it is essential to know what their rights are and set up the legal means to take over, if necessary, and make decisions for them before they become forgetful, terminally ill or have difficulty handling these tasks. By doing this now, while your parent is capable of deciding to seek assistance:

• First:  the transfer of responsibilities occurs immediately.
• Second: if they do unfortunately, become incapacitated or incompetent, this will allow you to make many important financial decisions, pay bills and make important healthcare decisions on their behalf.
• Third: this provides an opportunity to do crucial Medicaid planning. What this means is that if your parent should need long-term care in the future, which is expensive, this can deplete their life savings before they are even allowed to become eligible for benefits such as Medicaid or Medical Assistance. Through this planning, you can help your parent protect the assets they have; including their home.

Not All Durable Powers of Attorney are Equal

One of the big issues Michigan families run into is that not all durable powers of attorney are created equal.  Quite often when a durable power of attorney is reviewed it is prepared from an estate planning perspective, not an elder law one.  Meaning there are limitations that won’t allow you to properly plan for VA Benefits or Medicaid because the power of attorney was drafted by someone who is not a Certified Elder Law Attorney.

Durable Power of Attorney for Your Parents

We understand that emotions involved while caring for your elderly parent can seem almost as overwhelming as the financial obligations themselves. As your loved ones age, together, we can plan a caregiving strategy. By choosing The Elder Care Firm, a practice that is dedicated to helping Michigan seniors, veterans and their families plan for and cope with the many issues that come with growing older, this will help smooth transitions and give you a better view of the scope of your responsibilities. To learn more about the durable power of attorney and speak with a lawyer who can help, please contact us today for more information.

The post Durable Powers of Attorney Can Help Smooth Transitions for Elder Care in 2015 appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

Traditionally, family conversations have led this process. Relatively few Americans have written advance health care directives. A recent study suggests that incentivizing physicians to discuss end-of-life care could boost participation in end-of-life care planning dramatically.

In the study, palliative care specialist Dr. Joshua Lakin and a team of his colleagues at the University of California, San Francisco (UCSF) Medical Center instituted an incentive program to improve documentation of patients’ advance care decisions.

The researchers developed a standard form, which was placed in patient’s electronic medical records. The form documented preferences, including whether the patient would like to be resuscitated, intubated, receive a feeding tube or receive all care in the case of major health decline. The forms also had room to list the patient’s health care agent and that person’s contact information, as well as a space for “expressed wishes” and any existing living will or health care directive.

Medical residents would receive a monetary bonus if, as a group, they completed preference forms for at least 75 percent of discharged patients during at least three out of the four quarters. Email alerts were sent to residents if they fell behind.

In July of 2011, 22 percent of the patients had documented preferences. By October of that year, 90 percent of patients had documented preferences, and the number stayed that high.

Although family conversations about end-of-life care remain important, this study suggests that in the future, a doctor-led approach may help ensure that these tough decisions are made and documented.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Procrastination can affect one’s retirement plans dramatically. The earlier people start saving for retirement, the less they need to save, and the more they will have when retirement comes. For example, to have the same balance at 65, a person who starts saving for retirement at 40 will need to save more than three times as much each month as a person who started saving at 25. Every year of procrastination can impact the security of one’s retirement.

Sadly, such procrastination is quite common. The savings rate in the United States hit a low point in February 2013 at just 2.6 percent — compared to a high of 11 percent in 1973. The majority of Americans have less than $25,000 in savings and investments, and 28 percent of Americans said they were “not at all confident” that they were saving enough for retirement.

Debt also threatens security during retirement. Levels of credit card debt, student loans and mortgage debt are all on the rise, including among people of retirement age. From 1989 to 2010, debt among people 75 and older increased by 978 percent, and debt among people aged 65 to 74 increased by 384 percent. Some older individuals must tap into their retirement funds to pay down credit card and other debt, which means that those funds will not be available later on.

Many Americans have so much debt that they are unable to retire when they would like to. Others are less secure in their retirement because of debt.

Debt and procrastination can have a devastating impact on retirement planning, but it is never too late to start working towards a good retirement. As the saying goes, the best time to start was yesterday, and the second best time is now.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

As much of health care moves out of hospitals and into homes, caregivers are charged with providing care to increasingly ill loved ones in increasingly complex ways. At the same time, caregivers experience emotional stress from seeing the physical or cognitive decline of a loved one.

Anyone can be a caregiver, but caregivers are most likely to be middle-aged women who work and who may also be the primary caregivers for their children. The time commitment and physical commitment of providing care can be profound. In some cases, this mounting stress can be a contributing factor to the abuse or neglect of an elder.

Self-care is a key factor in reducing caregiver stress. Caregivers should develop healthy coping skills, such as taking time away from the elder, exercising, socializing or participating in hobbies.

A person’s family and community can also help reduce caregiver stress. For example, community respite programs can give caregivers a few hours to spend on their own needs. Family members can pitch in by becoming secondary caregivers and reducing the load on the primary caregiver.

One complex factor that can contribute to elder abuse and the stress of caregiving is the caregiver’s historical relationship with the elder. If the caregiver was abused by the elder as a child, the caregiver may experience a great deal of stress and complex emotions when caring for the elder now. The same is true for parent-child relationships that were marked by antipathy or apathy in previous years. For such individuals, professional assistance or other options for care may be best.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Hidden among the legalese is often an agreement to submit all disputes to binding arbitration if anything goes wrong at the nursing home. Rather than being able to sue a nursing home for personal injury or wrongful death, a resident or his or her family would have to handle the matter through a third-party arbitrator, with no recourse if they are unhappy with the result.

In 2012, the Washington Post published an exposé on mandatory arbitration clauses in nursing home contracts, revealing that they were systematically unfavorable to patients and their families. Research has shown that nursing home cases that go to arbitration are significantly more likely to result in no compensation or reduced compensation than cases that are pursued through the court system. In addition, both parties have to pay the arbitrator’s fee, no matter the outcome.

According to the Post, consumer advocacy groups discourage patients and their families from agreeing to mandatory arbitration.

Nursing home advocacy groups argue that arbitration benefits patients. When payouts to victims are lowered, they say, the total cost of care for all patients goes down. But critics counter that because arbitration agreements are confidential, they decrease public scrutiny on the quality of care that patients receive.

Patients and families may not realize it, but in many cases, nursing homes will still admit a patient even if he or she does not sign the arbitration agreement. In fact, the American Health Care Association, which advocates for nursing homes, does not support making that signature a condition of admission.

By leaving the signature off of that agreement, patients and families can handle disputes any way they choose. They may choose arbitration, or they may choose to pursue a trial – whichever fits the circumstances best should an issue arise.

The Hale Law Firm believe the right solution to your estate planning, elder law, or probate needs can be identified in a free initial consultation with one of our attorneys and counselors at law. To learn more, visit http://www.thehalelawfirm.com/ or call 972.351.0000

Medicare only pays for care in a nursing facility if a patient is admitted to the facility within a month of having been admitted to a hospital for at least 3 consecutive days. In addition, Medicare requires physician certification of the fact that the necessary care can only be provided by an inpatient facility. The Centers for Medicare and Medicaid Services (CMS) must have approved the facility.

For Medicare to cover care in a skilled nursing facility, the patient must need the facility’s rehabilitation services five days a week, or its skilled nursing services seven days a week. If the care could be administered at home by a nurse on a less frequent basis, Medicare will not cover the care in a facility.

Even when care in a facility is covered, Medicare only pays for 100 days of care. For the first 20 days, full coverage is provided. From days 21 through 100, co-payment is required. After 100 days, the patient is required to pay privately until they have exhausted their resources and are eligible for Medicaid.

Medicare charges are monitored by Recovery Audit Contractors, who work for the CMS. These contractors receive a commission for detecting and recovering overpayments, so doctors and hospitals are very motivated to avoid charging Medicare for expenses that are not covered.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

The money saved for retirement should be earmarked only for retirement. A 401(k) is not an
emergency savings account; it is a retirement account, and withdrawals before the age of 59 1/2 are subject to penalties and income tax. To avoid the temptation to take early withdrawals, one may wish to keep emergency savings in a money market account.

Avoidable financial fees can have a substantial impact on a person’s retirement planning efforts. According to FeeX.com, the average American spends about $155,000 in unnecessary fees over the course of a lifetime. Fees that are easily avoidable include ATM fees, credit card fees, overdraft fees, late payment charges and termination fees.

Finally, missing out on a healthy lifestyle can lead to a less robust retirement. Being in good physical shape allows one to enjoy those golden years to which all that retirement planning has been leading. In addition, the financial cost of health care for preventable diseases can be substantial. Eating a diet rich in unprocessed foods, exercising several times a week, and visiting the doctor for routine check-ups can all help secure a happy, healthy retirement.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Senior placement services are completely unregulated, and they do not require licensing or training. This means that anyone can start one, and that quality is not guaranteed. All nursing home placement services stay in business by working with a network of nursing homes,
assisted living facilities or retirement communities. These facilities pay a commission to the placement service when a senior moves in.

The quality of services offered by a nursing home placement service can vary widely. There are some national and franchise operations that work entirely over the phone or online. Often, the consultants at such companies have not actually been to the facilities they are recommending. These companies tend to simply provide a list of communities for the senior to visit.

There are some gems. Small, local companies are often home to experts in senior care who provide a more hands-on service. At these companies, consultants work with seniors in person, take seniors and their families on facility tours and have the expertise to identify a senior’s individual needs. A highquality firm will spend ample time with a senior and follow up once the senior has been placed.

Due to the risk of being misled by a nursing home placement company, seniors and their families should do their research before settling on a company. The company should offer in-person services and be embedded in the local community. Often, but not always, small firms provide better service.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

What is a Certified Elder Law Attorney?

A Certified Elder Law Attorney is lawyer that has earned the CELA designation.  Elder law attorneys who have their CELA have the enhanced knowledge, skills and experiance to be properly identified to the public as Certified Elder Law Attorneys.  The National Elder Law Foundation (NELF) has developed and published rules and regulations regarding certification and has been around since 1993.

In Michigan, there are currently 15 CELAs in all of Michigan.  There is only one in Livingston county–that’d be me.

What is the Criteria for CELA Designation?

The following are the requirements for the CELA designation.

• Licensure – Attorney must be licensed to practice law in at least one state or the District of Columbia
• Practice – Attorney must have practiced law during the five years preceding their application and must still be practicing law.
• Integrity/Good Standing – Attorney must be a member in good standing of the bars in all places in which they are licensed.
• Substantial Involvement – Attorney must have spent an average of at least 16 hours per week practicing Elder Law during the three years preceding their application. In addition, they must have handled at least 60 Elder Law matters during those three years with a specified distribution among subjects as defined by the Foundation.
• Continuing Legal Education – Attorney must have participated in at least 45 hours of continuing legal education in Elder Law during the preceding three years.
• Peer Review/Professional References – Attorney must submit the names of five references from attorneys familiar with their competence and qualifications in Elder Law. These persons must themselves satisfy specified criteria.
• Examination – Attorney must pass a full-day certification examination administered by NELF which is designed to demonstrate their specialized Elder Law knowledge and skills

How Do You Know Your Michigan Elder Law Attorney is an Expert in Wills, Trusts, and Estate Planning?

Any attorney can say they are an expert in any area of law.  However, the CELA designation is truly the only designation that is peer reviewed and tested where the elder law attorney needs to prove his or her worth.

The best way to Michigan lawyers specializing in wills, trusts, elder law, and estate planning would be to find a Michigan Certified Elder Law Attorney

The post Michigan Lawyers Specializing in Wills, Trusts, and Elder Law appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

When applying for Michigan Nursing Home Medicaid for a married couple, special planning needs to be done to protect the assets from nursing home or Medicaid spend down so that the community spouse is not completely impoverished.

Michigan Medicaid Asset Protection for Married Couples

Our elder law office with locations in Brighton, Bloomfield Hills, Livonia and Novi regularly protects almost all the assets for that community spouse and gets the spouse in the nursing qualified for Medicaid,  even if the family has $100k, $250k or more in assets.

But that’s just the first step of getting Medicaid qualified.

What happens if the community spouse, the “healthy” one, passes away first?

In Michigan, when one spouse is in a nursing home and applying for Medicaid, planning has to take into account the possibility that the spouse who is not in the nursing home may pass away first. This is because the community spouse’s death may make the spouse in the nursing home ineligible for Medicaid if proper legal planning is not done to ensure this doesn’t happen.

In order to qualify for Medicaid, a nursing home resident can have only a $2,000 in assets. However, if that community spouse passes away first and leaves those assets to the nursing home resident, the resident suddenly would be over Medicaid’s asset limit.  That’s a problem

Protection Against Loss of Medicaid Benefits

To protect against the lost of Medicaid benefits by the the community spouse passing away first, the community spouse should update their estate plan with a certified elder law attorney well versed in Medicaid planning and elder law.

That estate plan in our office would involve updating the will and trust, so as to provide for the spouse in the nursing home with a supplemental needs trust if necessary, then when the spouse in the nursing home passes away, the assets would flow to the kids or other beneficiaries.  The net effect is continuing the Medicaid benefits for the nursing home spouse, having a pot of resources to pay for additional services or care to improve quality of life, then the remaining assets going to the other beneficiaries upon death.

Expert Guidance from a Certified Elder Law Attorney

It’s important to seek out advice from a CELA (Certified Elder Law Attorney).  Any attorney can say they do elder law, only a Certified Elder Law Attorney has proven they are experts in elder law.

If you’d like help with your family’s Michigan Medicaid qualification needs, give us a call at (888) 390-4360, we serve families in Livingston, Oakland, Wayne and Macomb counties from our elder law attorney offices in Brighton, Livonia, Novi and Bloomfield Hills.

Click here to learn more: Michigan Medicaid Planning

The post What Happens to a Medicaid Recipient if the Health Spouse Dies First in Michigan? appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

This is especially important today, when the number of childless Americans is higher than in the past. In 2010, nearly 19 percent of women ages 40 to 44 had not given birth, compared with about 10 percent in 1980.

A healthcare power of attorney allows a person to appoint someone trusted, whether natural child or friend, to make medical decisions on his or her behalf in case the person is incapacitated. This can be combined with a financial power of attorney, which appoints a trusted individual to handle a person’s finances. Without these documents, it can take time for the court to appoint a guardian. The guardian may not be someone the individual even knows.

In addition to designating a caregiver, it is important for childless older adults to use these documents to make their wishes clear. For example, some people prefer to receive in-home care, while others would like to move to an assisted living facility if long-term care became necessary.

Many childless adults appoint their partners or siblings as their health care agents. However, this carries some risk if the other person is close in age. It is best to also appoint a backup caregiver as well, such as a niece, nephew or friend. It is essential to discuss these issues with the person appointed.

If there is no one available to serve as a healthcare agent, a bank or other company with a trustee department can be employed to make the arrangements.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Older adults often give gifts to children or grandchildren. Unfortunately, these gifts can affect a person’s Medicaid eligibility, so it is important that older adults carefully plan their gift-giving if they may eventually need Medicaid long-term care benefits.

Under federal law, people who transfer certain assets within five years of applying for Medicaid may be ineligible for benefits for a period of time. This rule is designed to prevent people who are financially secure from improperly transferring assets in order to qualify for Medicaid.

Gift tax law and Medicaid law are different in their requirements. Individuals can give up to $14,000 per year without paying a gift tax, but those gifts are still treated as a transfer under Medicaid law. There is also no exception for gifts to charities.

Some transfers are, however, exempt from this issue:

• Gifts to one’s spouse

• Gifts to one’s blind or permanently disabled child

• Transfer to a trust for the sole benefit of a person under the age of 65 who is permanently disabled

• Transferring a home to a child under age 21

• Transferring a home to a child who provided live-in care for at least two years

With proper planning, it is possible to preserve assets while still qualifying for Medicaid. Consult with an experienced elder law attorney to learn more.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

The book addresses the legal issues facing a caregiver who is caring for a loved who has chronic illness.  Some of the chronic illness include Alzheimer’s, Huntington’s Disease, or Parkinson’s disease.

The Caregiver’s Legal Guide for Planning for a Loved One with Chronic Illness details the necessary legal steps to ensure the person who needs care has the best quality of life possible.

Estate Planning versus Elder Law

First, Caregiver’s Legal Guide for Planning for a Loved One with Chronic Illness outlines the difference between estate planning and elder law.  There is a big difference and most people are unaware of the differences.

The Elder Care Continuum

Next, we cover the Elder Care Continuum, that many clients go through.  This is the elder care journey.  Most individuals start out living at home independently, then as they begin to age or suffer from chronic illness, they need more and more assistance.  This assistance may take the form of home care, assisted living or nursing home care.  At each of these points there is a cost associated with the level of care.

How to Pay for Long-Term Care

From here, Caregiver’s Legal Guide for Planning for a Loved One with Chronic Illness outlines the six ways to pay for long-term care, including: private pay, children paying, long-term care insurance, veteran’s benefits, medicaid and hospice.

Legal Strategies for Caregivers

Last, Caregiver’s Legal Guide for Planning for Planning for a Loved One with Chronic Illness outlines various legal strategies for caregivers.  The book discussess asset protection strategies to protect resources from the long-term care spend down and nursing home spend down.

How To Get A Copy

There are two ways to get a copy of Caregiver’s Legal Guide for Planning for a Loved One with Chronic Illness.  Either contact our office to request us to send you a copy ($20), or order it from Amazon.

The post The Caregiver’s Legal Guide to Planning for a Loved One With Chronic Illness appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

The term 401k and individual retirement account (IRA) are thrown around quite a bit when discussing retirement planning and estate planning, but there are some large differences between the two accounts.

IRA vs. 401k

For starters, where there names.  A 401k is named as such due to the tax code that discusses it, while an IRA is an individual retirement plan.

Both IRAs and 401k’s allow you to put assets into an account to save for retirement.  Both allow you to begin taking distributions from these plans at age 59 1/2.

IRAs are further distinguished from 401k’s because there are two main types of IRAs.  There are Roth IRAs and traditional IRAs.  Roth IRAs allow you to pay the taxes up front and accumulate gains tax-free.  Compare that to your traditional IRA, where the taxes are paid only when you withdraw money.  A traditional IRA requires you to start taking minimum distributions at age 70 1/2, while a Roth has no such requirement.

Participation differs between IRAs and 401k’s.  In order to have a 401k, you must work for an employer that offers this as part of the benefit package.  Because this is indeed a benefit, an employer may limit who can join the plan.  An employer can then also make a contribution through deductions from a paycheck as well.

This differs from IRAs, where anyone who is younger than 70 1/2 and earns income can set up the IRA.  Typically, these are set up through a bank or financial institution.  As an individual, you are responsible for establishing the plan and contributing to it.

Beneficiaries of Your Retirement Accounts

An important point with both IRAs and 401k’s is who you name as a beneficiary.  By federal law, your spouse is automatically your beneficiary when you have a 401k, even if you list someone else.  To name someone other than your spouse as a beneficiary, you would need your spouse’s consent in writing.

An IRA allows you to name any beneficiary, with or without your spouse’s consent.

Standalone Retirement Plan Trust

Often times, it makes sense to name a Standalone Retirement Trust as the beneficiary of an IRA when leaving it to the next generation.  For more information on the benefits of the Standalone Retirement Plan Trust, contact our offices located in Brighton, Bloomfield Hills, Novi, or Livonia.

The post What is the Difference Between an IRA and a 401k appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.

A new wave of high-tech gadgets could make keeping seniors safe while living in their own homes more feasible than ever. Among the latest developments are:

• Motion sensors – Motion sensors on the wall, front door, chair or refrigerator can detect whether there is too little activity over a period of time, then alert a family member. Advanced motion detectors can even identify changes in gait.
• Mattress monitors – These devices can spot restlessness or frequent trips to the bathroom. Respiratory and pulse rates can also be monitored.
• Smart pill bottles – New gadgets can make pill bottles sound an alarm when it is time for a dose and text the senior’s caregiver if the pill is not taken.
• Appliance safeties – Special devices can turn off the stove if it is left on for too long, preventing burns and fires.

Research from the University of Missouri suggests that automatic monitoring can spot the subtle changes, like nighttime restlessness or lower daytime activity, that occur 10-14 days prior to a fall or trip to the hospital.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

Each year, around 7,000 elderly people die in accidents at home, while millions more sustain serious injuries there. Falls are the most common cause of injury. Drowning in the tub and being burned by the stove or by hot water are also significant risks.

A home that is optimized for safety can allow older adults to continue to live independently for as long as possible. Visiting MySafeHome.net and taking the house tour is a great start for identifying potential home hazards. People with medical issues, such as poor vision or rheumatoid arthritis, can benefit from a home assessment by an occupational therapist (O.T.).

Many safety improvements are very simple and affordable. For example, removing any unsecured rugs and maintaining good lighting throughout the house and yard can prevent falls, as can maintaining a clutter-free home.

Other common safety improvements include the installation of stairway lifts for indoor stairs and threshold ramps and railings for the approach to the house. It may be necessary to install bars and a specially designed shower or bathtub.

Although health insurance should cover home assessment by an O.T., it will not usually cover home upgrades. However, people with long-term care policies may be able to get coverage for home modifications.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

In order to qualify for Medicaid, it is sometimes prudent to “spend down” assets in order to reduce their value. Spending down should be done carefully, ensuring both continued financial security and the receipt of Medicaid.

Not all assets influence whether an individual can receive Medicaid, and these assets do not need to be spent down. A person’s home, car and physical possessions may not be counted. Prepaid funeral and burial arrangements and some cash may also be exempt. However, exemptions are determined on a case-by-case basis.

Medicaid programs allow individuals to spend down their assets on certain expenses. Assets may be used to pay off credit cards, mortgages or loans, including prepayment. They may be used for the prepayment of certain burial and funeral expenses.

The applicant can also use their existing assets to purchase an exempt asset, such as a home or automobile that meets the requirements for exemption. Assets can be used in the upkeep of non-countable assets, such as home repairs.

For people who are married, purchasing an annuity for the spouse can be an excellent way to spend down assets. An annuity guarantees the spouse a fixed income for a given number of years. Annuities purchased for the purpose of spending down must be non-transferable, and Medicaid must be listed as the primary beneficiary after the spouse’s death.

There are certain expenses that should not be used for spending down. For example, prepayment of caregiver services or other services is considered a gift and will actually cause the applicant to be ineligible for Medicaid for a period of time.

The process of spending down to quality for Medicaid can be complex. An estate planning attorney can assist in developing Medicaid planning strategies that are compatible with Virginia’s Medicaid regulations.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

People approaching retirement age have a choice to make regarding Social Security retirement benefits. Many people choose to start receiving retirement benefits early, which is possible starting at age 62. However, the earlier a person begins receiving benefits, the less he or she gets — up to 30 percent less than the amount the person would receive if he or she waited until full retirement age (66 for current retirees). Then, the longer someone delays retirement up to age 70, the more of a benefit bonus that person gets.

Generally, if a person is in good health and financially secure, postponing benefits as long as possible makes the most economic sense. Some experts say that, all other factors being equal, retirees should think of age 70 as their actual retirement age.

However, there are a number of personal factors that may influence the decision to begin taking benefits. Some may not have the option of waiting due to financial or health concerns, and others argue that taking benefits early allows people to invest their savings wisely, rather than having to use them for living expenses. Ultimately, the decision is the choice of each individual.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

The new center has been proposed before, but funding was stalled. Now, a dispute over a new legislative office building may end up benefiting veterans. After Gov. Terry McAuliffe said he would not move forward with plans for a $300 million Capitol Square building, a bill was introduced earmarking part of the funding for the veterans’ health care center.

The bill, HB 1275, would dedicate $28.5 million in state bonds for the center, and the funds would come out of money previously intended to replace the General Assembly Building. The center is intended to be funded jointly by the federal government and state government, but it remains unclear whether federal funding would be forthcoming.

Last month, Gov. McAuliffe ordered work on the new legislative building halted, saying that spending $300 million on a new building for legislators sent the wrong message at a time of fiscal constraint.

There are over 800,000 veterans in Virginia, but the state ranks 44th in the ratio of veterans to available health care centers.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

So, the question is, why did Phillip Seymour Hoffman ignore his son and his two daughters?  Well, according to the article, he did not want his children to grow up to be “trust fund kids.”

This is not an uncommon approach that many of the affluent are now taking.  There is a prevailing argument that leaving such a large amount of wealth directly to the next generation can ruin their work ethic as well as their appreciation for money.

According to Matt Lauer, of the Today Show, “The old saying is: You leave them enough to do something, not enough to do nothing.”

That said, Phillip Seymour Hoffman’s decision to leave his $35 million estate to his partner, without much left for his children seems a bit tough to understand as an estate planning lawyer.  There are many ways to customize trust documents so as to include the important values that a parent would want to leave for his or her children.  There are things like building in incentives.  For example, the trust could distribute assets to match a W2, thereby matching the wages a child earns.  That’s just one of many examples.

My advice would be to speak with an experienced estate planning or elder law attorney about how best to leave wealth to the next generation, including a discussion of the values you want to pass down to the children.

So, the question is, why did Phillip Seymour Hoffman ignore his son and his two daughters?  Well, according to the article, he did not want his children to grow up to be “trust fund kids.”

This is not an uncommon approach that many of the affluent are now taking.  There is a prevailing argument that leaving such a large amount of wealth directly to the next generation can ruin their work ethic as well as their appreciation for money.

According to Matt Lauer, of the Today Show, “The old saying is: You leave them enough to do something, not enough to do nothing.”

That said, Phillip Seymour Hoffman’s decision to leave his $35 million estate to his partner, without much left for his children seems a bit tough to understand as an estate planning lawyer.  There are many ways to customize trust documents so as to include the important values that a parent would want to leave for his or her children.  There are things like building in incentives.  For example, the trust could distribute assets to match a W2, thereby matching the wages a child earns.  That’s just one of many examples.

My advice would be to speak with an experienced estate planning or elder law attorney about how best to leave wealth to the next generation, including a discussion of the values you want to pass down to the children.

The post Philip Seymour Hoffman Leaves his Children Zilch…$35Million to his Partner appeared first on Elder Care Firm.

Effective July 1, 2014, the Senior Citizen Rent Increase Exemption (SCRIE) program has expanded. 

Under the program, tenants who are over the age of 61 and who pay more than a third of their income in a rent-regulated apartment may stabilize their rent.

The expansion of the program is expected to add 24,000 older individuals to the 50,000 already enrolled. Community leaders have asked for help in spreading word, as many seniors in New York City may not be aware that they are eligible. The city’s Finance Department will send letters to applicants who were rejected in the past five years due to income requirements to notify them that they may now be eligible.

SCRIE has helped low-income senior tenants since 1970. The program cost the city $124 million last year, and this year New York State will contribute $1.2 million to its expansion.

Seniors who may be eligible can call 311 to request that a form be mailed to them. Alternatively, they may visit the SCRIE page on the New York City government website: http://www.nyc.gov/html/hpd/html/tenants/scrie.shtml.

For more information about our elder law services or to talk to a White Plains Estate Planning Attorney, visit www.elderlawnewyork.com.

Problems with the Five Wishes and Free Advanced Directives

In my Michigan estate planning practice, I’ve had a ton of clients and financial planners bring up the Five Wishes as a way to handle end of life decisions.  Everyone over the age of 18 in Michigan needs advanced directives (sometimes called medical powers of attorney).  In Michigan we call these documents Patient Advocate Designations.

A popular version of this is called the Five Wishes.

Now understand, there are a variety of healthcare advanced directives.  There could me medical powers of attorney, living wills, or Do-Not Resuscitate orders (DNRs).

Now where do the Five Wishes fit in?  They should probably come with a warning label as this article discusses.

One of the issues with the Five Wishes is that it incorporates a specific religious creed that makes it permissible to take action that you know will cause death, it cannot intend death.  A very, very subtle concept, but the theory is called the “doctrine of double effect.”

For example, wish Number 2, “My Wish for the Kind of Medical Treatment I Want or Don’t Want.” includes the general instruction “I do not want anything done or omitted by my doctors or nurses with the intention of taking my life.”  However, continuing on it includes language that you can check a box to say you “do not want life-support.”

The confusion is that a doctor or hospital could interpret that language as intending death and thereby creating confusion.  What a mess of a document!

This is just one issue with the Five Wishes document.

Another issue, which is an issue with the state forms some states have, including Michigan, is that there is an unauthorized practice of law aspect involved where you have medical providers explaining one of the most important legal documents that can effect your life (or death).

My advice?  Sit down with a certified elder law attorney who can walk you through all of the issues involving end of life decision making.  It’s your life, don’t risk it.

Problems with the Five Wishes and Free Advanced Directives

In my Michigan estate planning practice, I’ve had a ton of clients and financial planners bring up the Five Wishes as a way to handle end of life decisions.  Everyone over the age of 18 in Michigan needs advanced directives (sometimes called medical powers of attorney).  In Michigan we call these documents Patient Advocate Designations.

A popular version of this is called the Five Wishes.

Now understand, there are a variety of healthcare advanced directives.  There could me medical powers of attorney, living wills, or Do-Not Resuscitate orders (DNRs).

Now where do the Five Wishes fit in?  They should probably come with a warning label as this article discusses.

One of the issues with the Five Wishes is that it incorporates a specific religious creed that makes it permissible to take action that you know will cause death, it cannot intend death.  A very, very subtle concept, but the theory is called the “doctrine of double effect.”

For example, wish Number 2, “My Wish for the Kind of Medical Treatment I Want or Don’t Want.” includes the general instruction “I do not want anything done or omitted by my doctors or nurses with the intention of taking my life.”  However, continuing on it includes language that you can check a box to say you “do not want life-support.”

The confusion is that a doctor or hospital could interpret that language as intending death and thereby creating confusion.  What a mess of a document!

This is just one issue with the Five Wishes document.

Another issue, which is an issue with the state forms some states have, including Michigan, is that there is an unauthorized practice of law aspect involved where you have medical providers explaining one of the most important legal documents that can effect your life (or death).

My advice?  Sit down with a certified elder law attorney who can walk you through all of the issues involving end of life decision making.  It’s your life, don’t risk it.

The post Your Free Five Wishes Medical Power of Attorney Ain’t No Good. appeared first on Elder Care Firm.

Owning pets can provide health improvements for some seniors.

According to a recent study by the Purdue University School of Nursing, pets can reduce depression and help keep seniors on a regular eating schedule, improving nutrition. Other studies have found that seniors who own pets have greater self-esteem and are less lonely and fearful, improving their mental well-being.

At the same time, it is important to be aware that pets and pet toys may increase the risk of falls, which can be a danger to older people. And while taking care of pets is a joy for many seniors, some may find it difficult to keep up with their care, adding to stress. With those caveats in mind, many seniors’ health and well-being are improved by animal companionship.

The Virginia Beach SPCA participates in the activities of the Pets for the Elderly Foundation, a public charity that promotes pet ownership for seniors. For more information, visit www.petsfortheelderly.org.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

However, consumers should consider the contract terms and other aspects of the community carefully, as there are potential risks involved.

Residents of a California CCRC have filed a class action lawsuit against the company that owns it, claiming misrepresentation and breach of fiduciary duty. The community, Vi at Palo Alto, charges a high entrance fee that is refunded if the resident moves out or passes away. The refunds naturally become part of the estate plans of the residents. However, the plaintiffs in the lawsuit claim that the company has no reserve fund to pay refunds and has moved money from entrance fees to a parent company that has no responsibility to pay refunds. For its part, the company says the refunds will be paid, and that it follows standard business practices.

The dispute is a reminder that consumers should be fully informed before entering into any long-term care contract. For more information about CCRCs in Virginia, visit the Virginia Division for the Aging, at www.vda.virginia.gov/ccrc.asp.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

A new study indicates that the number of deaths caused by Alzheimer’s disease may be six times higher than previously thought, making it the third most deadly disease in the United States. Only heart disease and cancer cause more fatalities.

Earlier numbers indicated that 83,000 people died of Alzheimer’s in 2010, but according to the new study, the actual number of fatalities from the disease that year was closer to 500,000. Heart disease caused nearly 600,000 deaths in 2010, and cancer caused about 575,000.

According to researchers at the Rush Alzheimer’s Disease Center at Rush University in Chicago, deaths from Alzheimer’s disease go underreported, causing the discrepancy. Often, only the immediate cause of death, such as pneumonia, is reported on a death certificate, and an underlying cause of death, like Alzheimer’s disease, is not listed.

It is estimated that 5.2 million people had Alzheimer’s disease in 2013, and that deaths related to the disease have increased by nearly 68 percent over the past ten years.

Learn more by contacting an elder law and medicaid planning lawyer at http://www.elderlawnewyork.com/elder-law-medicaid-planning/

Perhaps that is because home care can be a relative bargain. According to the firm, the median wage for a home health care aide is just under $20, an amount that has increased 1.3 percent annually in the past five years. The median annual costs of assisted living and a private nursing home room are $42,000 and $87,600, respectively. Those costs have risen 4.3 and 4.2 percent per year, respectively, over the past five years. Long-term care is more expensive outside the home, and the gap is widening.

However, a recent change to the Fair Labor Standards Act may turn the trend and shrink that divide. Home care aides will soon be covered by the law, making them eligible for minimum wage and overtime pay. Most already earn more than minimum wage, but most do not earn overtime pay.

To control the cost of home health care, many families hire independent caregivers, including friends and neighbors, for assistance. But the changes in labor standards may encourage the long-term care insurance industry to require caregivers to be hired through agencies.

Insurers say that the agency requirement would ensure reliability and consistent quality of care. That may be true, but an agency could also act as a middleman, ultimately driving up the cost of care.

If you are in the market for long-term care insurance, consider whether a given policy will permit you to hire a caregiver directly. Or, if you already have insurance, find out what is permissible under your policy before making hiring decisions. You do not want any surprises in either coverage or care.

The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

An Alzheimer’s care facility in the Netherlands is modeled after a village, allowing patients to roam freely and safely, providing a possible model for facilities in the U.S.

As in other dementia-care facilities, patients at Hogeweyk are prevented from leaving for their own safety. However, within the complex, residents may roam freely, visiting parks and shops, such as a grocery store and restaurant staffed by Hogeweyk employees in street clothes.

The design of the facility improves residents’ quality of life by allowing them a degree of self-determination in their daily life. It also addresses the common problem of wandering: the residents of Hogeweyk may roam at will down the boulevard and paths while remaining safely inside the facility.

Each apartment in the facility hosts between six and eight people, including caretakers. Residents participate in cooking and cleaning, keeping to familiar routines that make them feel comfortable. Administrators say that the model provides residents with the care and safety they need, while giving them the maximum amount of freedom to make their own decisions about daily life.

Learn more from an elder law attorney at Littman Krooks by visiting http://www.elderlawnewyork.com/.