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Premiums for long-term care insurance can be a tax deduction

admin — Thu, 27 Oct 2016 17:03:35 +0000

Under IRS regulations, taxpayers can deduct a greater amount from their 2016 taxes due to the purchase of long-term care insurance. You can deduct premiums for long-term care insurance policies that are “qualified,” to the degree to which they, in conjunction with other medical expenses for which you are not reimbursed, including Medicare premiums, are greater than 10 percent of the adjusted gross income of the insured, or 7.5 percent for taxpayers age 65 or older.

The premiums, which represent the amount the policyholder pays the insurance company to maintain the effectiveness of the policy, can be deducted by the taxpayer, the taxpayer’s spouse and other dependents. The rules for tax-deductibility are somewhat different for a person who is self-employed. You can deduct the premium, provided you realized a net profit. It is not required that your medical expenses are greater than a specific percentage of your income.

However, there is a maximum premium amount that is deductible. This figure is dependent on the age of the plaintiff at the end of the year. Below are the caps on deductibility for 2016. Any premium amounts that exceed these restrictions are not deemed to be a deductible medical expense.

Age prior to the end of the taxable year / Maximum deduction for the year

40 or under / $390
Over 40 but not over 50 / $730
Over 50 but not over 60 / $1,460
Over 60 but not over 70 / $3,900
Over 70 / $4,870

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.

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Be aware of the details on required minimum distributions

admin — Tue, 18 Oct 2016 17:58:49 +0000

It is important for taxpayers to be informed about required minimum distributions (RMDs) from IRAs so that they can plan accordingly for their retirement. In the current year, those persons age 70 ½ or older are required to take a RMD from their traditional IRAs (Individual Retirement Arrangements), SEP (Simplified Employee Pension) IRAs, SIMPLE (Savings Incentive Match Plan for Employees) IRAs, or retirement plan accounts. You must also report RMDs for any IRAs that you inherit.

If you do not take distributions in a timely manner, you may have to pay a 50 percent excise tax on excess IRA additions. You should be aware that defined contribution owners may not have to file a report until retirement.

Those who attain the age of 70 ½ in 2016 are required to report a RMD for the year, but they may wait until April 1, 2017 to do so. Individuals who report RMDs for the first time and are waiting until April to do so, must report twice, because they are required to report a RMD for the current year prior to December 31. This could result in an increase in their tax liability.

Following the first year, IRA owners must report RMDs on an annual basis by the end of the year. The life expectancy of the taxpayer and the taxpayer’s spouse will play a role. The IRS provides resources for making calculations of RMDs. However, the main calculation is to divide the taxpayer’s account balance as of the end of the previous year by an IRS life expectancy factor.

Taxpayers who have neglected to take RMDs are advised to take all of them as quickly as possible so as to avoid the aforementioned excise tax. But taxpayers, such as retirees, who do not need their RMDs, may wish to reinvest those funds into a Roth IRA, which will not require the taxpayer to make withdrawals until after the death of the account holder. Or they may consider reinvesting the funds into a 529 savings plan for their grandchildren.

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Protecting Seniors From Isolation

admin — Tue, 20 Sep 2016 16:45:07 +0000

Although we frequently think of seniors as living among family members or in a senior community or other shared housing arrangement, the likelihood of living alone rises as one ages, according to the U.S. Census Bureau. Among women 65 to 74 years old, the probability of residing alone is 32 percent. This rate increases to 57 percent for those who are 85 or more years old. Among men, the rates are 13 percent and 29 percent respectively. And among those who are 100 years or older, approximately one-third reside alone at home.

Isolation of the elderly can lead to some upsetting health results, and can raise the risk of death. According to a review published in the Journal of Primary Prevention, social isolation has been shown to cause many harmful health problems in seniors, such as a heightened risk for all-cause mortality, dementia, re-hospitalization and more falls.

As stated in the UChicago News, social isolation can interrupt sleep, raise blood pressure, cause a morning surge in the stress hormone, cortisol, change gene expression in immune cells, escalate depression and reduce a sense of well-being.

There are several measures friends and family can take to combat such feelings of social isolation in seniors. You can make sure that they have a sufficient amount of incontinence supplies and that they are tested for hearing and vision on a regular basis. You can also ask neighbors to help by visiting them to see if they are feeling OK. In addition, you can call or email them frequently if you are unable to see them in person.

Another preventative measure is to arrange for food to be delivered to them so as to prevent them from suffering from malnutrition. An organization such as Meals on Wheels can provide this service along with some social interaction. You can help seniors become more socially active by encouraging an enabling them to use hearing aids or walkers. Give rides to senior relatives whenever possible or arrange rides for them.

Contact your local Area Agency on Aging to discover senior centers, transportation services and other programs to help the elderly.

Sources

http://www.aplaceformom.com/blog/2-25-14-preventing-senior-isolation-in-winter/

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How to transfer property to a living trust

admin — Tue, 06 Sep 2016 16:37:44 +0000

A living trust is a legal entity that is used to hold title to your assets while you are alive. Upon your death, the assets are then transferred to the beneficiaries named in the trust. You can transfer such assets as bank accounts, stocks, bonds and certificates to the trust. You may also wish to change the beneficiary on your life insurance policy and retirement accounts, and establish a pour-over will that distributes any assets obtained after the creation of the living trust (but prior to your death) to the trust upon your death.

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.

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

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Address these essential elements of retirement planning

admin — Wed, 24 Aug 2016 17:56:12 +0000

During your retirement years, you may expect to receive Social Security payments. A few people may also receive payments from public or private pension plans. However, it is best not to rely on such sources to provide a sufficient amount of income to ensure that you retire comfortably. Although you may receive income from both sources, it would be beneficial to have retirement income that is diversified.

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.

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How net investment income can affect tax planning

admin — Wed, 10 Aug 2016 17:49:07 +0000

There are two ways in which the 3.8 percent net investment income tax (NIIT) can have an impact on your estate plan. It can raise your tax on capital gains, taxable interest and other investment income, thereby lowering the amount of wealth that is accessible to your family. The tax is also especially severe toward specific trusts used in estate planning.

The NIIT is applicable to net investment income that high income people earn. It is also applicable to trusts and estates to the degree to which their adjusted gross income (AGI) is greater than the low threshold amount of $12,300 in 2015.

Investment income includes the following:

taxable interest;
dividends, both qualified and non-qualified;
capital gains, both short and long-term, with the exception of those used in an active trade or business;
rental income;
royalty income;
non-qualified annuity income;
income derived from passive business activities;
income derived from trading financial instruments or commodities.

Investment income does not include the following:

wages, self-employment income, or income earned from non-passive business activities;
tax-exempt interest, an example of which is interest on municipal bonds;
distributions from IRAs or specific qualified retirement plans;
proceeds from life insurance;
alimony;
Social Security benefits;
Veterans’ benefits;
gain on the sale of an active interest in a partnership or S corp.;
nontaxable gain on the sale of a principal residence.

You can lower or remove NIIT by decreasing your modified adjusted gross income (MAGI) below the threshold or by reducing your NII. Here are some of the strategies you can use:

contributing the maximum amount to IRAs and qualified retirement plans;
deferring income with the use of an employer’s nonqualified deferred compensation plan;
transferring investments into tax-exempt municipal bonds;
transferring investments into growth stocks that pay few dividends or none at all;
“harvesting” losses through the sale of securities at a loss and the use of them to counterbalance gains;
Making investments in life insurance (there is an exemption from NIIT for an accumulation of cash, and proceeds are subject to an exclusion from both MAGI and NII

Be mindful of the fact that mutual funds usually make distributions of capital gains on a yearly basis, close to the end of the calendar year or, in some instances, more frequently than once a year. In order to reduce the effect of the NIIT, it is recommended that you avoid buying fund shares a short time before a fund distributes capital gains.

Upon reviewing your estate plan, it is advisable for you to speak with your attorney about how you can lower or remove your NIIT. This will require a consideration of tax, estate and financial matters.

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What is the Medicare donut hole?

admin — Thu, 28 Jul 2016 17:21:36 +0000

The Medicare donut hole is the coverage gap that is within the majority of Medicare Prescription Drug Plans. There is a short-lived restriction on what drugs most plans will cover. The coverage gap does not apply to everyone. It starts after you and your drug plan spend a specific amount purchasing covered medications.

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.

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What personal representatives of estates need to know

admin — Thu, 14 Jul 2016 17:16:28 +0000

Personal representatives, or executors, of estates need to be aware of the procedure that is used to probate an estate with a will. The executor who is designated in the will must make an appointment with the probate division to probate the will and become qualified to serve as executor. To do this in Virginia, the executor is required to be a resident of the state, but statutes will permit out-of-state residents to become eligible. When the executor is not a Virginia resident, a resident of Virginia is required to go with the executor to the Probate Office to either co-qualify or be assigned as a resident agent.

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.

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Help may be needed in deciding on senior housing

admin — Wed, 22 Jun 2016 16:58:57 +0000

Elderly people who value their independence and are accustomed to living alone are increasingly becoming incapable of doing so. The need for medical attention may prompt some older individuals to consider their options, including moving to a nursing home or another kind of assisted living facility. Another possibility is to have in-home care along with various support services.

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.

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Net gifts can be used to reduce gift tax rate

admin — Wed, 08 Jun 2016 16:54:13 +0000

One strategy to lower your taxable estate is lifetime giving. However, there is a gift tax rate of 40 percent. If you have exhausted your $5.43 million gift and estate tax exemption, and you wish to lower your gift taxes, consider the possibility of making net gifts. This method obligates the recipient to pay the gift tax as a condition of accepting the gift, thereby lowering the value of the gift for gift tax purposes.

An example that reveals the ability of the net gift to save taxes is as follows. A grantor intends to make a $2 million gift to his son. Having used up his gift and estate tax exemption, he would like to reduce the tax. Applying a gift tax rate of 40 percent, if he were to make an outright gift, he would have to pay $400,000 in tax.

However, if his son agreed to pay the tax, there would be a reduction in the value of the gift, and thus, the gift tax liability. The formula that is used to calculate the tax on a net gift is: gift tax = tentative tax / (tax rate + 1). The tentative tax is the amount that would have been owed if the gift had not been arranged as a net gift. In this scenario, the tentative tax is $800,000. An application of the formula to this example results in a gift tax of ($800,000 / 1.4), or $571,429, which represents an effective rate of approximately 28.6 percent.

In order to make certain that his son receives the entire $2 million gift, the father can use a financed net gift. He lends his son $571,429 to pay the tax bill, which bears interest at the applicable federal rate (AFR), and is evidenced by a promissory note in writing.

What if, in this example, the father gave the son real estate with a fair market value of $2 million and a cost basis of $500,000? If the son pays $571,429 in gift tax, the excess of that amount over the father’s basis ($71,429) is a taxable capital gain to the father. You can avoid paying capital gains tax by engaging in a financed net gift transaction with a grantor trust instead of the beneficiary.

When participating in a net gift transaction, the recipient is required to sign an agreement expressing a promise to pay gift and estate taxes upon receipt of the gift. Prior to signing the contract, the recipient is advised to consult an estate planning attorney.

The 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.

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Learn what government benefits are available to help pay for long-term care

admin — Wed, 25 May 2016 11:54:08 +0000

There are a few government programs, including Medicare and Medicaid, that can help pay for long-term care services. Each program has certain regulations concerning which services are covered, your eligibility for benefits, the length of time you can receive benefits, and your out-of-pocket costs. In order to prepare for your long-term care needs, you should be aware of the facts regarding your coverage, and keep informed about any changes within each program.

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.

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How and why seniors should stay socially engaged

admin — Wed, 11 May 2016 11:47:31 +0000

Experts believe that in addition to engaging in regular exercise and eating well, social networking can contribute to the health of seniors. As you become advanced in age, changes that occur in the brain can make it challenging for you to absorb new information or recall things. In people who are afflicted with dementia, the impairment within the brain can become so serious that it prevents them from living normal lives. While in some cases cognitive decline is inevitable, in other situations, keeping your mind active or socializing with your peers may help deflect dementia and depression.

According to a study performed by the Rush Alzheimer’s Disease Center in Chicago, seniors who are very social had a 70 percent lower rate of cognitive decline than their peers who were less social. In another study that was conducted by researchers at the University of Alabama in Birmingham, there was a link between internet use and a 30 percent decrease in symptoms of depression.

There are many ways to maintain social connections and improve intellectual stimulation. Keep in touch with relatives, friends, neighbors and church members. If they’re not geographically close, you can maintain contact via email and Facebook. Statistics from the Pew Research Center’s Internet and American Life Project revealed that people age 74 and older comprise the fastest-growing group throughout online social networks.

Additionally, playing mind games, including doing crossword puzzles and playing chess can help keep your mind active. Playing with others can help you remain socially connected. It may also be beneficial to join a club, such as a book club or garden club, so that you can meet new people and form relationships with others who have comparable interests.

Upon retirement, several people have been known to experience stress. If you desire to return to work, think about obtaining a part-time job. Encore.org and the Work Search program provide help to seniors who wish to return to work. Volunteering can give you a sense of purpose, and make you feel as though you are making a contribution. You can learn more about volunteer opportunities from organizations, such as Senior Corps. Studies indicate that seniors who volunteer have a diminished risk of death in comparison to their peers who do not. Offering to babysit grandchildren or other young relatives can help you stay physically active and enhance your sense of well-being.

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Learn the facts about passive index funds

admin — Fri, 15 Apr 2016 11:23:44 +0000

When making investment decisions, people often consider whether they should use an active or passive strategy. Passive investing attempts to duplicate the returns of the market as a whole.

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.

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Learn the facts about passive index funds

admin — Fri, 15 Apr 2016 11:23:44 +0000

When making investment decisions, people often consider whether they should use an active or passive strategy. Passive investing attempts to duplicate the returns of the market as a whole.

The post Learn the facts about passive index funds first appeared on SEONewsWire.net.

How working after retirement affects Social Security

admin — Thu, 24 Mar 2016 11:18:54 +0000

There are people who wish to work when they have reached their 60s, 70s and beyond, but are concerned that their income will adversely affect their Social Security benefits. However, there is no cause for concern because according to the Social Security Administration (SSA), you do not run the risk of losing any Social Security benefits if you work past full retirement age, regardless of the amount of your earnings.

The SSA considers earnings to consist of the income earned from your job or your net income from self-employment. Earnings also include bonuses, commissions and vacation pay because they are relevant to employment. But pensions, investments and other retirement income are excluded.

If you are employed after you have attained full retirement age, your Social Security benefits can increase. The calculation of your Social Security benefits is based on the 35 years in which you earned the greatest amount of income. If your earnings past full retirement age replaces one of those 35 years, then the SSA will recalculate your benefits, and you could receive increased monthly benefits.

However, if you collect Social Security benefits prior to reaching full retirement age, and you keep working, then your benefits could be lowered. If you are under full retirement age for the whole year, the SSA will reduce your benefit payments by $1 for every $2 you earn in excess of the annual limit. In 2014, that limit was $15,480, and in 2015, it was $15,720.

In the year in which you attain full retirement age, the SSA reduces your benefits by $1 for every $3 you earn in excess of a different limit. In 2014, your earnings were limited to $41,400, but only the earnings prior to the month in which you reached full retirement age were counted. In 2015, your earnings were limited to $41,880.

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How working after retirement affects Social Security

admin — Thu, 24 Mar 2016 11:18:54 +0000

The post How working after retirement affects Social Security first appeared on SEONewsWire.net.

You can insulate your retirement plan from government policy changes through tax diversification

admin — Thu, 10 Mar 2016 11:14:41 +0000

While government policies can adversely affect your retirement, there are steps you can take to minimize the impact that they can have on your life savings. People are usually concerned about tax rates, which can directly affect your strategy for saving, and the amount of funds in your 401(k)s, IRAs and other accounts that are accessible.

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).

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You can insulate your retirement plan from government policy changes through tax diversification

admin — Thu, 10 Mar 2016 11:14:41 +0000

The post You can insulate your retirement plan from government policy changes through tax diversification first appeared on SEONewsWire.net.

Early retirees may need alternative withdrawal strategies

admin — Wed, 24 Feb 2016 12:48:14 +0000

When withdrawing funds from individual retirement accounts, Roth IRAs and other such accounts, retirees may encounter inconveniences, taxes and penalties. However, proper planning may reduce or even eliminate such costs. There are techniques that retirees should use to withdraw funds from their tax-sheltered retirement accounts prior to reaching the age of 59 ½.

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 post Early retirees may need alternative withdrawal strategies first appeared on SEONewsWire.net.

Early retirees may need alternative withdrawal strategies

admin — Wed, 24 Feb 2016 12:48:14 +0000

The post Early retirees may need alternative withdrawal strategies first appeared on SEONewsWire.net.

How to deal with an early retirement that was not planned

admin — Wed, 10 Feb 2016 11:40:24 +0000

Although most people plan to work until they reach their full retirement age of 66, or 67 if you were born after 1942, some workers find themselves without work at an age when it is challenging to find another job, and at a time when they anticipated earning their maximum salary. Others are compelled to leave the workforce due to illness or family obligations as a caregiver.

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.

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How to deal with an early retirement that was not planned

admin — Wed, 10 Feb 2016 11:40:24 +0000

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

The post How to deal with an early retirement that was not planned first appeared on SEONewsWire.net.

Understanding the stages of Alzheimer’s

admin — Sat, 16 Jan 2016 00:24:28 +0000

Reportedly, over five million Americans are afflicted with Alzheimer’s. The Alzheimer’s Association has created a checklist of the usual symptoms to help you identify the warning signs. Among these are changes in memory that interfere with daily life, difficulty planning and resolving problems, becoming disoriented regarding time and place and having issues with words when communicating verbally or in writing.

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 post Understanding the stages of Alzheimer’s first appeared on SEONewsWire.net.

Understanding the stages of Alzheimer’s

admin — Sat, 16 Jan 2016 00:24:28 +0000

The post Understanding the stages of Alzheimer’s first appeared on SEONewsWire.net.

Transportation is an often overlooked but crucial aspect of retirement planning

admin — Thu, 07 Jan 2016 21:26:02 +0000

When people engage in retirement planning, they often fail to think about transportation. They do not consider that a time may come when they will no longer be able to drive themselves, and will have to rely on others to go to doctors’ appointments and run errands.

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 post Transportation is an often overlooked but crucial aspect of retirement planning first appeared on SEONewsWire.net.

Transportation is an often overlooked but crucial aspect of retirement planning

admin — Thu, 07 Jan 2016 21:26:02 +0000

The post Transportation is an often overlooked but crucial aspect of retirement planning first appeared on SEONewsWire.net.

How caregivers can deal with behavioral changes of loved ones with dementia

admin — Tue, 29 Dec 2015 11:47:28 +0000

There is ample research to suggest that family caregivers are more distressed by behavioral problems and changes in the personality of their loved ones than by their physical disabilities. For instance, while it may prove challenging for family members to physically pick up the body of a loved one who has suffered a stroke and has physical limitations, matters are made even more difficult if the loved one is resisting the caregivers’ offers to help, or accusing them of mistreating him or her, due to dementia.

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 post How caregivers can deal with behavioral changes of loved ones with dementia first appeared on SEONewsWire.net.

How caregivers can deal with behavioral changes of loved ones with dementia

admin — Tue, 29 Dec 2015 11:47:28 +0000

The post How caregivers can deal with behavioral changes of loved ones with dementia first appeared on SEONewsWire.net.

Financial elder abuse may be fastest growing type of crime in U.S.

admin — Mon, 21 Dec 2015 11:46:21 +0000

Financial elder abuse has been described as the fastest growing type of crime in the U.S. To avoid having this happen with your senior loved one, it is important to be aware of the dangers.

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 post Financial elder abuse may be fastest growing type of crime in U.S. first appeared on SEONewsWire.net.

Financial elder abuse may be fastest growing type of crime in U.S.

admin — Mon, 21 Dec 2015 11:46:21 +0000

Financial elder abuse has been described as the fastest growing type of crime in the U.S. To avoid having this happen with your senior loved one, it is important to be aware of the dangers.

The post Financial elder abuse may be fastest growing type of crime in U.S. first appeared on SEONewsWire.net.

How caregivers can deal with behavioral changes of loved ones with dementia

admin — Wed, 16 Dec 2015 22:10:43 +0000

The post How caregivers can deal with behavioral changes of loved ones with dementia first appeared on SEONewsWire.net.

Financial elder abuse may be fastest growing type of crime in U.S.

admin — Wed, 02 Dec 2015 22:08:32 +0000

Financial elder abuse has been described as the fastest growing type of crime in the U.S. To avoid having this happen with your senior loved one, it is important to be aware of the dangers.

The post Financial elder abuse may be fastest growing type of crime in U.S. first appeared on SEONewsWire.net.

A retirement savings account can include health savings accounts

admin — Wed, 25 Nov 2015 23:15:47 +0000

As companies divert the costs of health insurance to their employees, health savings accounts (HSAs) and health reimbursement accounts (HRAs) have become increasingly popular. According to the Employment Benefit Research Institute (EBRI), adults in the U.S. retained $23.8 billion among 11.8 million HSAs and HRAs. This represents an increase of 2,725 percent from 2006.

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.

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What men can learn from women about saving for retirement

admin — Fri, 13 Nov 2015 23:15:32 +0000

Although men’s 401(k) balances tend to be larger than women’s, there is evidence to suggest that women may outperform men where retirement planning is concerned. Vanguard observed that at the majority of income levels, women are more inclined to take part in their employer’s 401(k) plan, more inclined to enroll in the plan on a voluntary basis and more inclined to contribute a greater percentage of their income than men.

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.

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The new reverse mortgage rules: Are they right for your retirement plan?

admin — Fri, 06 Nov 2015 11:48:17 +0000

The reverse mortgage rules that became effective on Aug. 4, 2014 should address any concerns held by married couples who are contemplating taking out such loans. Reverse mortgages, which are also called Home Equity Conversion Mortgages (HECM), are home loans for those who are age 62 or older that allow them to convert the equity that they have in their home into cash. They provide a way for homeowners to receive additional income during their retirement years. The loan is required to be paid upon the death of the borrower, a change in residence of the borrower or sale of the home.

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 post The new reverse mortgage rules: Are they right for your retirement plan? first appeared on SEONewsWire.net.

Spending down Medicaid assets safely

admin — Sat, 31 Oct 2015 18:43:44 +0000

“Spending down” your assets is the term used to describe the reduction of your assets in order to qualify for Medicaid.

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.

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How to spend down Medicaid assets (safely)

admin — Thu, 29 Oct 2015 22:18:46 +0000

Spending down your assets is the term used to describe the reduction of your assets in order to qualify for Medicaid. 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.

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.

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.

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The new reverse mortgage rules: Are they right for your retirement plan?

admin — Mon, 19 Oct 2015 22:18:18 +0000

The new reverse mortgage rules that became effective on Aug. 4, 2014 should allay any fears or concerns held by married couples who are contemplating taking out such loans. Reverse mortgages, which are also called Home Equity Conversion Mortgages (HECM), are home loans for those who are age 62 or older that allow them to convert the equity that they have in their home into cash. They provide a way for homeowners to receive additional income during their retirement years. The loan is required to be paid upon the death of the borrower, a change in residence of the borrower or sale of the home.

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 post The new reverse mortgage rules: Are they right for your retirement plan? first appeared on SEONewsWire.net.

Options for Paying for Assisted Living

admin — Wed, 30 Sep 2015 11:41:41 +0000

Many older Americans who need help with activities of daily living, such as hygiene and medication, have trouble affording the assisted living services they need. Fortunately, there are a variety of alternative funding options available. Many of these options leverage one’s other assets to fund assisted living.

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.

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Protecting your digital assets

admin — Wed, 23 Sep 2015 21:35:33 +0000

Digital assets represent an aspect of your estate that needs protection as much as the more traditional assets in your estate. In fact, someone who is acting as a personal representative, a conservator or a trustee, has a legal duty to gather and protect all the assets of a decedent or protected individual.

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 post Protecting your digital assets first appeared on SEONewsWire.net.

Naturally occurring retirement communities are a popular choice

admin — Wed, 16 Sep 2015 11:34:53 +0000

Naturally occurring retirement communities (NORCs) are communities that were not initially created for seniors, but rather evolved over time to include a substantial percentage of residents who are age 60 or older. The demographics of NORCs are in contrast to those of traditional retirement communities, which tend to be more homogeneous in terms of the residents’ ages. Because NORCs are occupied by many individuals who remained and grew older in their homes rather than moving to a retirement community, they often have interactions with younger neighbors.

One of the benefits of NORCs is that upon meeting certain requirements, such communities become eligible for funding by authorities at the local, state, and federal levels for support services that members of the older population usually require. Among those services are programs aimed at health care management and prevention, case management and social work, education, recreation, social activities and opportunities to volunteer.

NORCs originated in New York City, and are currently located throughout the U.S. and the rest of the world. A prime example of one of the advantages offered by a NORC is the Seward Park NORC-SSP Supportive Services Program in NYC, which is a place where the seniors of Seward Park can assemble to organize transportation to their doctor’s office, get a flu shot, register for meals on wheels, and engage in leisure-time activities.

Many NORCs are housing cooperatives of limited equity. When purchasing such a cooperative, you spend a lesser amount than that which you would spend on an apartment that sold at market rate. However, you are not permitted to sell the apartment at market rate; rather, you are required to sell the apartment back to the cooperative at a price that is below market rate, thereby maintaining the affordability of the cooperative.

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Millennials and retirement

admin — Thu, 10 Sep 2015 11:33:45 +0000

Millennials face the least certainty about the future of Social Security by the time they reach retirement, making retirement planning essential for this group. Money put away earlier in life will grow much more than money put away later, thanks to compounding interest. Despite these compelling reasons to save for retirement early, many people in their 20s and 30s are not on track to save enough for retirement.

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 post Millennials and retirement first appeared on SEONewsWire.net.

How to Protect Elderly Relatives from Financial Scams

admin — Tue, 04 Aug 2015 04:00:49 +0000

Elderly people are at a
higher risk of being victims of financial scams and identity theft.
Loved ones can play a big role in protecting elderly relatives from
financial fraud.

Telemarketing scams,
particularly on landlines, remain one of the most common forms of
financial fraud against the elderly. The phone allows scammers to
develop a connection with vulnerable seniors, while still having an
escape route if things go sour.

One of the best ways to
protect elderly relatives from financial scams is to discuss your
concerns with them: let them know if you believe they are vulnerable,
and keep them updated on what scams are out there and how older
people can become victims.

Unfortunately, hired
caregivers are sometimes the perpetrators of identity theft against
elderly patients. If your relative will have a caregiver or service
person in the home frequently, think about installing a safe where
important documentation is kept. Although home care aides go through
background checks, the best way to guard against financial fraud is
to eliminate the opportunity.

To contact an estate planning lawyer at Hook Law Center, call 757-399-7506.

The post How to Protect Elderly Relatives from Financial Scams first appeared on SEONewsWire.net.

How divorce affects retirement planning

admin — Thu, 30 Jul 2015 11:55:53 +0000

Older people are getting divorced more frequently than ever before. Divorce can be a significant roadblock for retirement planning and financial security. Although divorcing earlier in life can have a minimal impact on retirement, divorcing after the age of 50 can have huge implications.

Couples who are getting divorced should collect information about all of their retirement accounts, including IRAs, 401(k)s and pensions. Retirement account assets may be awarded to one party, or they may be divided between the divorcing spouses.

Pension plans are handled differently. The spouse who holds the pension has the option of either buying out the other spouse or giving a share of the benefits. To buy out the other spouse, the pension must be valued by actuarial analysis. A court order may order the pension to be split 50/50 or by some other ratio, depending on whether the couple were married for the entire duration of the pension.

If the couple was married for at least 10 years, and one spouse does not have work credits worth at least half of the other spouse’s, then that spouse can receive Social Security benefits. After one spouse’s death, the other spouse can claim the entire amount of the former spouse’s Social Security benefits.

In addition to overhauling one’s retirement plans, a divorced individual should review all estate planning documents to ensure that they reflect the individual’s current wishes.

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Choosing between Original Medicare and Medicare Advantage

admin — Wed, 29 Jul 2015 11:55:04 +0000

Deciding what type of health insurance to get can be a daunting task for seniors. Medicare is highly regarded and very popular, but Medicare Advantage differs in ways that could be advantageous to some.

Original Medicare includes Medicare Part A (hospital expenses) and Part B (other health care such as doctor’s office visits). The monthly premium for most participants is $104.90. Participants also pay “coinsurance” of 20 percent of most medical services.

Medicare Advantage, or Medicare Part C plans, are run by private insurance companies, and must offer comparable coverage to parts A and B. Some Medicare Advantage plans charge the same premium as Original Medicare, but many charge an additional premium. Most also charge coinsurance or a copay (a flat fee for a medical service), and these fees vary from plan to plan.

Original Medicare offers the widest choice of doctors and other health care providers. This may be particularly important to you if you like to travel. Original Medicare also has a lower monthly cost than most Medicare Advantage plans.

Most Medicare Advantage plans cover prescription drugs, which costs extra under Original Medicare. Medicare Advantage plans, by law, have a maximum out-of-pocket expense of $6,700 per year. This can give peace of mind, but most people’s out-of-pocket Medicare spending is far less than this amount. Some plans also offer vision, dental, assisted living and nursing home care, unlike Original Medicare.

The decision to go with Original Medicare or Medicare Advantage can only be made based on the particular terms of the Advantage plan that interests you. Because they are offered by private companies, Advantage plans vary widely in terms of their coverages, premiums, copays and coinsurance fees. Consider carefully the pros and cons of each option and consult with an expert if you need help deciding.

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Seniors Are Now the Fastest-Growing Adopters of Social Media

admin — Wed, 29 Jul 2015 04:00:48 +0000

More
seniors than ever are joining their children and grandchildren on
Facebook.

Seniors
tend to lag behind younger people in their use of technology, and the
use of social media is no exception — but the gap is closing.
A recent study by the Pew Research Center found that social media
usage among Americans 65 and older is growing faster than any other
age group.

The
findings were part of a broader study on the use of technology by
seniors. Older adults cite hurdles to technology adoption such as
physical handicaps that make reading difficult, skepticism about the
usefulness of technology and difficulty in learning how to use new
technology. But once seniors become internet users, 71 percent go
online daily or almost daily, and 79 percent feel internet access
puts them at an advantage, according to the findings.

Perhaps
a senior citizen in your life is interested in using the internet or
social media sites. Public libraries are an excellent resource for
live classroom computer training for all ages. Or, simply lend a hand
yourself. Learning modern skills can be an enriching and rewarding
part of life for seniors.

To contact an estate planning lawyer at Hook Law Center, call 757-399-7506.

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How to appeal a Medicare denial

admin — Mon, 27 Jul 2015 11:52:43 +0000

If you were denied coverage or payment by Medicare, you have the option of filing an appeal. The denial must be from Medicare, your Medicare Prescription Drug Plan or your Medicare health plan. It is within your right to file an appeal if you were denied any of the following:

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:

Complete a “Redetermination Request Form” and mail it to the Medicare contractor.
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.
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.

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Divorcing and Remarrying Can Affect Social Security

admin — Mon, 27 Jul 2015 04:00:28 +0000

Divorce and remarriage
can have can have an impact on a person’s Social Security benefits.
Once a person reaches retirement age, he or she has the right to
claim Social Security benefits based on their own earnings record or
half of the former spouse’s benefit, whichever is higher, even if
they have divorced.

Once a person
remarries, they typically lose any rights to their former spouse’s
Social Security benefits, unless the new marriage ends by divorce or
death. However, a divorced person may still be able to collect
benefits on a former spouse’s record even if the former spouse has
remarried. To qualify for this benefit, the marriage must have lasted
at least 10 consecutive years.

In certain
circumstances, divorced people can even qualify for survivor benefits
after their former spouse dies. To qualify for survivors benefits,
the marriage must have lasted at least 10 years, or the recipient
must be caring for a child under 16, and the recipient must not have
remarried before age 60.

To contact an estate planning lawyer at Hook Law Center, call 757-399-7506.

The post Divorcing and Remarrying Can Affect Social Security first appeared on SEONewsWire.net.

Defining common terms in Virginia estate planning

admin — Sun, 26 Jul 2015 11:49:23 +0000

Estate planning is a complex process, and typically involves learning some new terms and concepts.

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.

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Smart homes for seniors

admin — Thu, 23 Jul 2015 11:47:35 +0000

A new wave of high-tech home devices could help monitor seniors’ health and safety in the home, potentially allowing them to stay at home longer, and providing a sense of security to family members and other caregivers. Smart home devices can monitor a wide range of factors, from time spent waking up at night, to wandering, to falls and more.

Current offerings include Lively, a wireless monitoring device with accelerometers to detect movement, as well as pill bottles that indicate when it is time to take medication. Even small changes in daily habits can represent significant changes in health, so the potential applications of such devices are substantial.

Experts envision a wide range of other smart devices in the future, such as furniture that monitors vital signs and carpets that analyze walking patterns to identify changes in physical health. Some such devices have already made their way into technology expos, but have some way to go until they are widely adopted. Keeping sensors unobtrusive and easy to install will be key to promoting widespread adaptation.

As 78 million Baby Boomers continue to age, there will be an increased demand for such devices, both from seniors and from their caregivers. Smart homes promise to provide a higher level of independence over a longer period of time, an appealing prospect for independent Boomers.

Supplementing in-person care giving with technology is also appealing from a practical perspective. According to a recent AARP report, in 2010 there were 7.2 middle-age caregivers for every 80-year-old. By 2050, that number will decline to 2.9. If the home is able to serve as an early detection system, alerting family and health care providers of key changes, it may be able to ease the strain on the health care system.

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There May be Health Benefits to Seniors Owning Pets

admin — Thu, 23 Jul 2015 04:00:23 +0000

Studies
show that there may be health benefits to seniors owning pets,
ranging from a higher level of physical activity to better mental
health. Seniors who have pets tend to have better physical health and
an improved ability to cope with stress, among other benefits.

Owning
a pet can help prevent social isolation, providing companionship and
support to seniors who may not have others in the home. In addition,
having a pet to care for can give seniors a sense of purpose and
encourage them to set a healthy daily routine, including walking
regularly and eating and sleeping at regular times.

Although
owning a pet can be beneficial to many older adults, it is also
important to ensure that the pet is a good fit for the senior. Some
factors to consider include:

The responsibilities that would be involved in owning the pet
The
temperament and physical abilities of the breed in general and the
individual animal in particular
The
expenses associated with owning the pet
Who
would take care of the pet if the senior became unable to do so

To contact an estate planning lawyer at Hook Law Center, call 757-399-7506.

The post There May be Health Benefits to Seniors Owning Pets first appeared on SEONewsWire.net.

Innovative Alzheimer’s “village” could be a model for the U.S.

admin — Tue, 07 Jul 2015 11:30:39 +0000

An innovative Dutch “village” for Alzheimer’s patients could serve as a model for how the U.S. cares for its growing population of seniors with dementia.

The village serves as a protected, self-contained world for its inhabitants. It contains apartments, restaurants, a supermarket, gardens and more. Gates and security fences enclose the center, which provides both freedom and protection for residents who wander.

The goal is to create an environment that simulates normal life as much as possible, with dementia patients free to participate in activities they are capable of while receiving help with activities they can no longer perform. Residents can cook, clean and go grocery shopping, as well as go get their hair done or eat at a restaurant. At the same time, caregivers are on hand to help with activities of daily living as necessary.

Each apartment houses six to eight people, including caretakers who wear street clothes. The design of every department is unique, and each is geared toward a particular lifestyle, such as “cultural,” “artisan” or “Christian.”

A growing population of seniors and an increasing life expectancy means that the U.S. will be facing an unprecedented number of Alzheimer’s patients. This change may result in increased strain on both individual caregivers and the healthcare system as a whole in coming years. The number of people with Alzheimer’s has increased by 68 percent since 2000, and that trend will continue as the Baby Boomer population ages. The development of innovative solutions that promote independence and a fulfilling life is essential to the care of this growing population.

Already, a similar village has opened in Switzerland. In the future, it is possible that more such centers will open across Europe and in the United States, potentially improving the care and well-being of individuals with dementia.

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New high-tech tools for senior safety

admin — Mon, 06 Jul 2015 04:00:38 +0000

A growing number of
high-tech devices could help keep seniors safe. These devices are
increasingly advanced and unobtrusive, allowing family members,
caregivers or emergency personnel to intervene promptly when seniors
are in danger.

Technology that
monitors senior safety can increase independence for seniors
suffering from dementia, while also relieving some of the caregiver
strain associated with continually monitoring an aging loved one.

Some of the most
promising tools include:

SmartSole, a
shoe sole with GPS that allows caregivers to track patients with
dementia and receive alerts if the individual leaves a certain area

Medical alert
devices that work over Wi-Fi or cellular networks, rather than radio
signal

GrandCare, a
smart home company which uses smart sensors to monitor a senior’s
home, track activity, and create and monitor a daily schedule

Accelerometers,
which are placed in some emergency medical pendants to automatically
detect falls

Experts believe that
the future will bring even more advanced devices, such as devices to
automatically measure vital signs or handheld electrocardiogram (EKG)
devices.

To contact an estate planning lawyer at Hook Law Center, call 757-399-7506.

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What you should know about Roth accounts and retirement planning

admin — Fri, 03 Jul 2015 11:27:35 +0000

Roth IRAs and Roth 401(k)s allow individuals to make tax-free withdrawals in retirement by saving after-tax dollars. Rather than getting a tax break for saving the money, as with a traditional retirement account, Roth accounts result in tax savings later down the line during retirement.

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.

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What you should know about myRA accounts

admin — Thu, 16 Apr 2015 11:05:40 +0000

MyRA accounts are a new type of government-backed starter retirement savings account, designed for people whose employers do not offer retirement accounts. As of now, anyone who has direct deposit for their paycheck can sign up and start saving.

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.

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Increasing number of American retirees affected by student loans

admin — Mon, 13 Apr 2015 11:30:19 +0000

A record number of older adults now carry student loan debt, and the phenomenon is still growing: people over 60 are in the fastest growing age group for college debt, according to a report from The New York Times.

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.

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Many employers provide back-up elder care

admin — Thu, 26 Mar 2015 11:31:11 +0000

Hundreds of New York employers provide back-up elder care, designed to help employees stay at work when an unexpected problem arises with elder care.

Employees who have registered for back-up elder care can call a care organization when they face an unexpected interruption in elder care. Within hours, the organization will send a home health care aide to the elderly person’s home. Employers work with agencies who screen and train their caregivers.

A sudden change in a parent’s health, logistical issues from the usual home health aide, or a family caregiver’s competing responsibilities can all lead to a gap in elder care. Without back-up elder care, workers are likely to miss work for days or longer. With back-up care, both the elder’s care and the employee’s work life can continue relatively seamlessly.

Plans vary, but most allow employees to use the service 10-20 times a year. Employees pay for part of the service — usually about $6.00/hour — while the company covers the rest.

This benefit makes fiscal sense for companies, as a growing number of American workers now care for aging parents. That trend will continue in coming years, as the Baby Boomer population reaches retirement age and life expectancy continues to stand at an all-time high.

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How your life insurance policy can pay for long-term care expenses

admin — Mon, 23 Mar 2015 11:30:15 +0000

A number of companies, such as Life Care Funding, will purchase a senior’s life insurance policy from him or her. In exchange, the company provides a portion of the face value of the policy to individuals facing high long-term care costs.

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.

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Social Security benefits raise offers little help to retirees in 2015

admin — Mon, 23 Mar 2015 04:00:36 +0000

In 2015, Social Security recipients will see a 1.7 percent
cost-of-living increase in benefits. This small increase comes on the
heels of several years of other small to non-existent increases: in
2014, Social Security recipients received a 1.5 percent increase, and
no increase at all was given in 2010 or 2011.

Although
any increase is better than nothing, such a small change won’t go
far for most Social Security recipients. The average Social Security
recipient collects about $1,300 each month, so a 1.7 percent increase
is about $22.00 more each month.

Every
year, the Bureau of Labor Statistics adjusts Social Security benefits
to match any cost-of-living increase measured by the Consumer Price
Index.

Some
seniors will see their Medicare Part D premiums go up; for those who
do see premium increases, the Social Security raise may offset the
increase.

To contact an estate planning lawyer at Hook Law Center, call 757-399-7506.

The post Social Security benefits raise offers little help to retirees in 2015 first appeared on SEONewsWire.net.

Tipping Points: When Occasional Help Becomes Full-Time Caregiving

admin — Fri, 30 Jan 2015 05:00:37 +0000

The path to full-time caregiving is often gradual. It starts with occasional help and slowly becomes a full schedule of both day-to-day tasks and complex medical management. Often, a specific addition to the care plan or a significant event can make the situation unmanageable for a family caregiver. At this point, it may become necessary to hire a full-time caregiver.

Sometimes, physical challenges require more, possibly full-time, care. For example, a decline in mobility or the development of incontinence are often impossible for a family caregiver to manage fully.

Safety issues may also require more intensive care for a loved one. Older patients, especially those with perceptual or cognitive issues, are at a high risk of falls, which must be rigorously prevented. Wandering is a common problem among Alzheimer’s patients, who require careful monitoring.

Behavioral changes can be among the most disheartening changes. An Alzheimer’s patient may become aggressive and paranoid, or a stroke patient may become unable to communicate with others. Depending on the severity of the behavioral problem, it may be necessary to bring in professional help.

To contact an estate planning lawyer at Hook Law Center, call 757-399-7506.

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Study supports doctor-led approach to end-of-life care planning

admin — Fri, 23 Jan 2015 11:21:10 +0000

The end of a person’s life is a time of intense transition and difficult choices. Although nothing can fully prepare an individual or a family for the gravity of the decisions that need to be made, end-of-life care planning can help ensure that a dying individual’s wishes about his or her care are followed.

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.

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The effect of procrastination and debt on retirement planning

admin — Thu, 15 Jan 2015 11:19:36 +0000

The desire to create a comfortable, secure retirement is almost universal. Unfortunately, procrastination and debt can have a devastating, though not irreversible, effect on these efforts. While Americans can now anticipate longer-than-ever retirements with ever-higher costs of care, they tend to be less prepared for retirement than in decades past.

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.

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Reducing caregiver stress helps prevent elder abuse

admin — Mon, 29 Dec 2014 11:28:29 +0000

Elder abuse has long been associated with the stress caregivers experience when providing care for older loved ones. Reducing caregiver stress is a key factor in preventing the abuse and neglect of elders.

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.

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What is covered by Medicare in a skilled nursing facility?

admin — Sun, 21 Dec 2014 11:26:22 +0000

Many people on Medicare assume that the program will cover any medical costs they encounter, including the cost of care in a skilled nursing facility. However, coverage for care in a nursing home is actually quite limited, and it is only provided under certain circumstances.

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.

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Avoiding retirement planning pitfalls

admin — Tue, 16 Dec 2014 11:49:12 +0000

Although most people are aware of how important it is to plan for retirement, it is easy to fall into retirement planning pitfalls that have significant consequences down the line.
One of the most common pitfalls is money itself. Many people simply do not save enough early
enough. It is recommended that people save enough to have 40 to 60 percent of their pre-retirement income after retiring, depending on their planned lifestyle. The later a person starts saving, the more they need to save each year. In 2015, individuals will be able to contribute up to $18,000 per year to their 401(k)s.

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.

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Seniors and their families should apply good judgment in considering nursing home placement services

admin — Fri, 12 Dec 2014 11:45:44 +0000

Nursing home placement services, which offer to help find the perfect housing for seniors, are a growing trend in elder care. These services are offered for no charge, and they claim to demystify the world of elder care facilities. However, seniors and their families should use good judgment in choosing a nursing home placement service.

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.

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Aid and Attendance benefit can help veterans who need long-term care

admin — Fri, 28 Nov 2014 11:53:34 +0000

Veterans who need long-term care services like in-home care or residence in a nursing home can receive financial assistance through the Veterans Administration (VA) pension benefit Aid and Attendance. This often-overlooked benefit provides money to veterans who need help with day-to-day tasks.

The pension is designed for veterans and surviving spouses who require help to perform activities of daily living (ADLs), such as dressing, eating, bathing or going to the bathroom. Individuals who are blind or live in a nursing home qualify for the pension.

Aid and Attendance is available to veterans who served for at least 90 days, with at least one of those days occurring during wartime, and to their surviving spouses. The disabilities do not need to be service-related.

To quality, the veteran or surviving spouse must own less than $80,000 in assets, with home and vehicle not included in this calculation. His or her income must also be lower than the Maximum Annual Pension Rate (MAPR), which is currently set at $21,107 for a single veteran. The income calculation does not include welfare benefits, unreimbursed medical expenses that have been paid or Supplemental Security Income.

Even veterans who have an income too high to qualify for a VA pension may qualify for the Aid and Attendance pension, so long as they have high medical costs that are not otherwise reimbursed.

The VA pays the difference between the veteran’s income and the MAPR, so the amount that a person receives from Aid and Attendance depends on his or her income.

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Older people without children may wish to designate a caregiver

admin — Tue, 18 Nov 2014 11:52:09 +0000

Older adults who do not have children do not have the built-in support system from which many people with children benefit, which puts them at risk if they become ill or injured. In order to ensure they receive good care that is in alignment with their wishes, these individuals should designate a caregiver while they are still healthy.

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.

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Gifts Can Affect Medicaid Eligibility

admin — Fri, 14 Nov 2014 00:31:01 +0000

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.

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To help prevent elder abuse, address caregiver stress as it emerges

admin — Tue, 30 Sep 2014 11:44:48 +0000

Elders are among the most vulnerable populations, and they are at special risk for abuse at the hands of their caregivers. Caregiver stress is one of the biggest contributing factors to elder abuse, and stressed-out caregivers are the most likely to abuse.

Depression and anxiety are common among caregivers, who often provide hours of care each week for years on end. Caregivers face about twice the risk of developing depression and anxiety as the general population.

Caregivers often face social isolation due to the time commitment associated with caregiving. Even caregivers who take their elder into their own home still experience financial strain as a result of the caregiving. Caregivers often neglect their own physical and mental health because of the numerous other demands they face.

Addressing these stressful issues can help prevent elder abuse from occurring. Self-care methods like eating well, exercising and using stress reduction techniques can help give caregivers the energy to provide good care for their loved ones. Support groups and counseling can help caregivers to manage stress and other emotions in healthy ways.

Additionally, caregivers should be willing to ask for help. They should be aware of resources in the community and make use of them as needed. Friends and family may be able to stay with the elder for a few hours, or a local respite care agency can provide temporary care. Elders can also spend the day at adult day care. Caregivers should be able to reach out when overwhelmed. That ability reduces the likelihood of elder abuse.

Friends and family members of caregivers can help to take the stress off overextended caregivers. Regular visits and offering to stay with the elder so that the caregiver can get a break can have a profound impact.

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High-Tech Gadgets to Keep Seniors Safe

admin — Tue, 30 Sep 2014 04:00:33 +0000

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.

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How to make homes safer for seniors

admin — Mon, 22 Sep 2014 11:44:11 +0000

Older adults who continue to live independently at home will need a safe space in which to live. Making the home safe is essential for preventing injuries.

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.

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Eye and smell tests may make early detection of Alzheimer’s possible

admin — Sun, 31 Aug 2014 11:42:37 +0000

Results of four new research trials suggest that changes to the eyes and ability to smell may be valuable in the early detection of Alzheimer’s.

Reports presented at the 2014 Alzheimer’s Association International Conference in Copenhagen revealed that eye exams could be used to identify build-up of beta amyloid in the brain, while a decreased ability to identify odors may be an early sign of cognitive impairment.

Alzheimer’s disease is characterized by the development of brain plaques, and beta-amyloid is their primary component. Plaques start to develop years before cognitive decline and memory loss. In two of the studies, measuring the level of beta-amyloid in the eye correlated with brain beta-amyloid levels and was accurate in identifying people with Alzheimer’s.

In the other two studies, loss of brain cell function and the progression to Alzheimer’s disease was associated with a decreased ability to identify smell.

These findings point to potential avenues for early detection of Alzheimer’s through biomarkers. However, more research is needed to develop these tests.

Currently, Alzheimer’s can only be detected late in the disease, after significant cognitive decline and memory loss has already occurred.

There are no effective treatments currently available for any stage of the disease, although some drugs are effective for a few months for some of the people who take them. Alzheimer’s treatment is primarily symptomatic, aimed at helping patients maintain their quality of life and keeping them safe.

If early detection tests were developed, their primary purpose would be to identify patients early on in the disease process for participation in clinical trials for treatment and prevention of Alzheimer’s.

As effective treatments are eventually developed, early detection could be used to intervene and provide treatments early in the development of Alzheimer’s, before significant memory loss and cognitive decline has occurred.

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Alzheimer’s Caregivers Need Care Too

admin — Sat, 30 Aug 2014 04:00:27 +0000

Caring for a loved one with Alzheimer’s can take an immense toll on caregivers. From the emotional impact of watching a parent or spouse slowly decline as the disease takes hold, to the time commitment and financial impact of caregiving, caregivers often develop anxiety or depression.

Caregivers for people with Alzheimer’s need care to be able to cope with their situation, and getting care benefits both the caregiver and the patient.

The Strategies for Relatives (START) program educates participants about managing dementia patients, emotional support and planning for the future. A recent study presented at the Alzheimer’s Association International Conference in Copenhagen found that even years later, participants had lower levels of depression and anxiety, as well as lower costs for care.

Some strategies for self-care when caring for an Alzheimer’s patient include:

Finding time for breaks – is there a time when your loved one can attend an activity or care center?

Joining an Alzheimer’s Association support group

Maintaining your physical health by cooking healthy meals and taking walks

Learning techniques for managing Alzheimer’s patients and experimenting with what works for your situation

Letting others in your life know what they can do to help

Caregivers for people with Alzheimer’s need care to be able to cope with their situation, and getting care benefits both the caregiver and the patient.

Some strategies for self-care when caring for an Alzheimer’s patient include:

Finding time for breaks – is there a time when your loved one can attend an activity or care center?
Joining an Alzheimer’s Association support group
Maintaining your physical health by cooking healthy meals and taking walks
Learning techniques for managing Alzheimer’s patients and experimenting with what works for your situation
Letting others in your life know what they can do to help

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Seniors may qualify for Medicaid by spending down assets safely

admin — Wed, 27 Aug 2014 22:42:06 +0000

Federal law dictates that only someone below a benchmark level of assets can qualify for Medicaid, beyond which it is determined that the individual does not have the assets to pay for his or her own care. Many seniors who apply do not receive Medicaid because their asset level is too high to qualify.

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.

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Should You Start Taking Social Security Retirement Benefits Early?

admin — Wed, 30 Jul 2014 04:00:54 +0000

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.

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Facts to know about Medicare and retirement

admin — Tue, 29 Jul 2014 11:54:12 +0000

If your 65th birthday is approaching, you should make sure you are aware of your Medicare options and are prepared to enroll in Medicare if necessary. Here are a few things you should know.

First, if you are receiving Social Security benefits already, then you will be enrolled in Medicare Part A (hospital insurance) and Part B (medical insurance) automatically. You should receive information about enrollment three months prior to your 65th birthday. You will become eligible beginning the first day of the month you turn 65. If you turn 65 on the first day of the month, then you will be enrolled beginning on the first day of the prior month.

Most people not already receiving Social Security benefits will have to enroll in Medicare through the Social Security Administration. You can enroll anytime during a seven-month period that starts three months prior to your 65th birthday. You also have the option of choosing a Medicare Advantage (Part C) private insurance plan as an alternative to Part A and Part B. If you choose a Medicare Advantage plan, it may include prescription drug coverage; otherwise, you will have to join a Medicare Prescription Drug Plan (Part D).

Finally, be sure to consider the timing and interaction of any health insurance you receive through your employer. If you are retiring at age 65 and moving into Medicare, be sure to coordinate the dates of your coverage. If you will keep working past age 65, then you will need to understand how your employer’s group health plan interacts with Medicare; it may still be necessary for you to enroll in Medicare.

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Bill would fund Hampton Roads veteran care center

admin — Thu, 24 Jul 2014 01:53:58 +0000

A bill has been introduced in the Virginia state legislature to provide state funding for a new health care center for veterans in Hampton Roads, The facility would supplement the care provided by the Hampton VA Medical Center.

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.

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Advance Medical Directives Need Easy Accessibility

admin — Mon, 30 Jun 2014 11:47:10 +0000

Many people are aware of the importance of advance medical directives. In the event that you become incapacitated, these directives detail what procedures you do or do not want and who should make decisions for you. Because these are important documents, people often keep copies in safe deposit boxes or leave them in the care of their attorneys, but copies also need to be easily accessible in case of a medical emergency.

In response to this need, the American Bar Association’s Commission on Law and Aging has introduced an app that allows advance directives to be stored electronically. My Health Care Wishes is a convenient way for you or family members to present such documents to medical professionals via email or Bluetooth. Other information, including contacts and health information, can also be stored within the app. The electronic documents have the same legal authority as the paper originals. The app is available in a basic free version, and a $3.99 version offers additional features. Before launching, the Bar Association tested the app with health insurers and health care providers with solid results.

There are other options to store important documents in accessible electronic formats, including Dropbox and Docubank. Whichever method you use, make your documents available so that they can be useful when a problem appears.

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Studies Show Pets May Benefit Seniors’ Health

admin — Fri, 20 Jun 2014 04:00:56 +0000

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.

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Continuing Care Retirement Communities Offer One Option for Retirees

admin — Thu, 19 Jun 2014 01:47:01 +0000

There are many living options available for seniors, and continuing care retirement communities (CCRCs) have become one of the most attractive. Many retirees consider such communities because they typically provide a range of services in one location, including independent living, adult care facilities and nursing home care. This setup allows seniors to “age in place,” staying in the same community as their needs change. Typically, residents pay an entrance fee (which may be refunded) and monthly charges.

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.

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In 12 Months, VA’s Disability Claims Backlog Falls 44 Percent

admin — Fri, 30 May 2014 11:47:53 +0000

In recent years, deserving U.S. veterans have had to endure lengthy waits for their disability benefits. Each case needs to be examined at the Department of Veterans Affairs (VA), and a massive backlog of applications made the process tortuously slow. Some new applicants near major cities waited well over a year when the backlog was at its worst.

Thankfully, the VA has implemented several new policies to bring the system up to date, including mandated overtime for claims processors and a transition to computerized records. And the efforts appear to be paying off.

The VA recently announced that the backlog of pending claims, which peaked at about 611,000 in March 2013, has fallen by 44 percent. Now, 344,000 claims remain. The current average wait time is 119 days shorter than it was a year ago, the agency says, and the accuracy of decisions has risen as well.

The VA continues to prioritize “fully developed claims.” These are applications in which the veteran submits all relevant records at once and certifies that he or she has no other evidence to submit. Claims from homeless veterans, those facing extreme financial hardship, the terminally ill, former prisoners of war and Medal of Honor recipients will also receive priority.

In 2010, the VA established a goal of processing all disability claims within 125 days.

As veterans’ attorneys, we have seen worthy disabled veterans wait far too long for their compensation, and we are pleased to see progress being made.

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Teaching Hotel Will Employ, Train Applicants with Disabilities

admin — Wed, 21 May 2014 00:14:33 +0000

Opportunities for higher education and employment are severely limited for those with disabilities. But a new project in Indiana will be of great interest to those attracted to the hospitality industry.

Construction will soon begin on a teaching hotel in Muncie, Indiana. Developers say the hotel will both employ and teach individuals with developmental and other disabilities, who will compose at least 20 percent of its staff. The 150-room Marriott Courtyard hotel and restaurant will help human resources students and professionals gain a better understanding of special needs employment.

Developers state that the guest experience at the hotel will be the same as at any other Marriott, with the exception of its high levels of accessibility that exceed ADA standards.

The project is expected to break ground later this year, and completion has been estimated for the summer of 2015.

The special needs community needs more national corporations to set examples like this. Such projects teach people of all abilities how to work and learn together.

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Does Your Long-Term Care Insurance Permit You to Hire Home Caregivers Directly?

admin — Tue, 20 May 2014 23:47:37 +0000

According to long-term care insurer Genworth, nearly three-quarters of those who require long-term care prefer to receive that service in their own homes.

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.

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What Are Pooled Special Needs Trusts?

admin — Wed, 30 Apr 2014 01:38:12 +0000

A special needs trust can be a crucial tool for many families to pass on assets to their special-needs children without jeopardizing the recipient’s eligibility for public benefits. Some families may be interested in “pooled special needs trusts,” which offer similar benefits with certain advantages, but families may be unsure of the pros and cons.

Trusts must have trustees, or managers. Many trust holders hire their estate planning attorneys as trustees, while families of more limited means often turn to a relative or close family friend with the applicable know-how. A pooled trust may be a good option for those who cannot come up with a logical choice for a trustee, or for those without enough assets to justify an individual trust.

Pooled trusts are run by nonprofit organizations for the benefit of multiple beneficiaries. Assets from multiple families are pooled and invested together, and the funds are spent for the benefit of the individuals in proportion to their share of the entire trust.

Pooled trusts vary widely in terms of fees, available services, and contracts. Some provide complete care of beneficiaries, while others provide only appropriate money management.

Managers of pooled trusts must be knowledgeable about laws governing public benefits, and directors usually have relatives with special needs and understand the community’s needs. Pooled trusts give you the benefits of special needs trusts even if you do not have a lot of money to leave to a loved one.

On the other hand, pooled trusts can be expensive, and it can be difficult or impossible to move assets from one pooled trust to another. Also, they are only as good as their managers, and the nonprofits that run them may decline in quality of service or even go out of business if they face financial problems or changes in management.

The attorneys at Hook Law Center can help you decide what kind of special needs trust best suits your family.

Hook Law Center assists Virginia families with with guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To contact a Virginia Beach special needs planning lawyer or to learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.

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What Should an Heir Do About a Reverse Mortgage?

admin — Wed, 23 Apr 2014 04:01:00 +0000

Many seniors use reverse mortgages to tap into their home equity in order to maintain their standard of living during retirement. Those who do so need to make sure their heirs are aware of the mortgage, because when the borrower dies, they will have to decide on a course of action quickly.

The heirs can keep the property, sell it, or turn it over to the lender. That decision is usually determined by whether there is equity left in the property.

Reverse mortgages are “nonrecourse” loans, which means that if the loan balance exceeds the home’s value, the lender cannot take possession of the estate’s or the heirs’ other assets.

After the lender is notified of the borrower’s death, an appraiser will determine the home’s market value. The amount due to the lender is the lesser of the loan balance or 95 percent of the home’s appraised value. (The remaining 5 percent is paid by government insurance.) The heirs may sell the house or keep it by paying off the loan with cash or other financing.

Heirs initially get six months to pay off the loan. While they work out the details, interest and monthly insurance premiums continue to accrue. Those who wish to keep or sell the home may request up to two extensions of 90 days each by showing they are actively trying to sell the home or to arrange financing to pay off the loan.

On the other hand, if the home has little or no potential equity, the heirs may choose to simply hand it over to the lender rather than go through the hassle of selling it. This is known as “deed in lieu of foreclosure.”

The post What Should an Heir Do About a Reverse Mortgage? first appeared on SEONewsWire.net.

How to Prevent Identity Theft with Your Medicare ID Card

admin — Fri, 18 Apr 2014 11:37:10 +0000

A recent Reuters article highlights an identity security problem for U.S. seniors. Identification cards issued by Medicare contain instructions to carry the card with you at all times. But your card also contains your full social security number (SSN). Losing the card places you at risk of identity theft and fraudulent benefit claims.

No government agencies track data on theft of Social Security numbers from Medicare cards, but it is clearly a problem. The Department of Health and Human Services recently announced the recovery of $4.3 billion from attempted federal health insurance fraud schemes in a single fiscal year – a record high.

In 2007, the George W. Bush administration ordered all federal agencies to cease any unnecessary use of Social Security numbers. And the Centers for Medicare & Medicaid Services (CMS) acknowledges the need to remove SSNs from Medicare cards. But doing so would cost between $255 and $317 million, according to a Government Accountability Office report – funds that are hard to secure.

In the meantime, the AARP recommends seniors do not carry the cards, saying it is usually unnecessary to do so. An AARP representative told Reuters her recommendation for seniors who are uncomfortable being without the card is to make a photocopy of it with the first five digits of their Social Security number masked out. Then you can have proof of Medicare enrollment with you, just in case, while protecting yourself from identity theft.

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First-party and third-party special needs trusts protect benefit eligibility

admin — Fri, 28 Mar 2014 11:36:17 +0000

Individuals with special needs often depend on government benefits in order to afford things that many of us take for granted — including health care, education, healthy food and a safe home. But when someone with special needs acquires significant assets for any reason, their eligibility for government benefits may be jeopardized. Special needs trusts hold these assets outside the ownership of those individuals, but allow the money to be spent on their behalf, thereby enriching their lives without endangering their eligibility for benefits.

A third-party special needs trust is the most common type. The trust is created by a third party, using that person’s assets, and names the special needs individual as the beneficiary. These assets are commonly transferred into the trust upon the death of the trust’s creator, or grantor, through a will, life insurance or beneficiary designation.

Less widely known, but equally important, are first-party special needs trusts. Such a trust is created by the special needs individual, using his or her own assets for his or her own benefit. These assets could be the result of a personal injury award, a divorce settlement, a life insurance policy or other circumstances.

In both cases, the trustee — the individual in charge of administering the trust — uses the funds within the trust to support the person with special needs. The rules governing the trust’s expenditures must be followed closely, as any improper use of the funds could endanger government benefits. But the rules do allow a wide variety of life-enriching purchases, including personal services, hobbies, luxury items and vacations.

There are many different varieties of trusts. The help of an experienced special needs attorney is very important in properly creating and administering a special needs trust.

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Federal Grants for Electronic Tracking Devices Now Available for Autistic Children

admin — Thu, 20 Mar 2014 04:00:41 +0000

The U.S. Department of Justice recently announced that a federal grant program that provides electronic tracking devices for adults with Alzheimer’s disease has been expanded to apply to children with autism.

The announcement came after tragedy struck Queens, New York, where the remains of Avonte Oquendo, a 14-year-old autistic boy, were recently discovered. Avonte wandered away from his school on October 4, 2013. A massive search, lasting over three months, resulted in the discovery of the boy’s body in the East River on January 16.

The voluntary program will allow parents of children with autism and other developmental disorders to obtain a tracking device through local law enforcement agencies and nonprofit groups. The devices may be worn as bracelets or anklets and attached to belt loops or shoelaces.

A recent study showed that 49 percent of children and teens with autism have attempted to run or wander from their caretakers. Recovery time of an individual wearing a tracking device averages as much as 95 percent less than that of an individual without a tracking device.

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Medicaid Rule Change Strengthens Home- and Community-Based Care

admin — Fri, 28 Feb 2014 11:00:52 +0000

Millions of low- and fixed-income Americans depend on Medicaid for health care. Many are fortunate enough to receive that care in their homes or at nearby facilities. Unfortunately, some have no choice but to receive treatment in nursing homes and in other institutional settings that may be nowhere near their homes, friends and family. Such situations are widely recognized to be less conducive to a patient’s overall well-being.

The Centers for Medicare and Medicaid Services (CMS), the federal agency that oversees those programs, recently announced new rules to strengthen the Community Living Initiative — a program launched in 2009 to develop strategies to increase Medicaid recipients’ opportunities for care in home- and community-based settings (HCBS).

The new rules set definitions for HCBS and specify that Medicaid will support HCBS programs that offer an alternative to care in institutional settings and that take into account a patient’s quality of life. States will be granted a transitional period during which they can ensure their HCBS programs meet requirements. During this period, states will be provided with technical assistance.

The new rules give states more options for expanding HCBS and for targeting specific segments of the population. They also streamline regulatory and documentation procedures for more efficient operations.

The elderly, ill, disabled and low-income populations are all vulnerable to marginalization. Institutionalized care, while necessary and beneficial for some, can be a prime example of such marginalization when not medically necessary. Those who will become able to receive care in their homes and communities because of these changes stand to benefit immensely from the CMS’s new rules.

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Social Security Expands List of Conditions Eligible for Fast-Track Benefits Approval

admin — Wed, 19 Feb 2014 05:00:59 +0000

The Social Security Administration (SSA) recently announced an expansion to its list of Compassionate Allowances conditions.

The Compassionate Allowances program affects those applying for Social Security Disability Insurance who have certain very serious illnesses or disabilities. Benefit determinations for those applicants are expedited, and the SSA typically renders its decisions in days (instead of months or even years).

The SSA announced 25 new additions to the list, including 12 cancers, bringing the total number of its conditions to 225.

In a statement, Acting Commissioner of Social Security Carolyn W. Colvin said, “Social Security disability benefits are a vital lifeline for individuals who are facing severe diseases, and we must ensure that they receive the benefits they rightly deserve.”

The SSA has held public outreach hearings in order to get feedback on the determination of the conditions best suited to the Compassionate Allowances program. To date, the program has helped nearly 200,000 severely disabled people get quick approval for disability benefits.

Contact a Virginia elder law attorney at Hook Law Center by visiting http://www.hooklawcenter.com/.

The Social Security Administration (SSA) recently announced an expansion to its list of Compassionate Allowances conditions.

The SSA announced 25 new additions to the list, including 12 cancers, bringing the total number of its conditions to 225.

The post Social Security Expands List of Conditions Eligible for Fast-Track Benefits Approval first appeared on SEONewsWire.net.

Four Legal Documents for Managing an Incapacitated Parent’s Affairs

admin — Sat, 15 Feb 2014 00:00:40 +0000

When an elderly parent becomes incapacitated or terminally ill, the management of the parent’s financial and medical affairs often falls to one of the children. By having the proper legal documents in place, you can help ensure that this process goes smoothly. They help to keep an already difficult situation from becoming much worse because of legal hassles. Following are four key documents you should have in place before your parent falls ill. Your elder law attorney’s guidance is crucial; he or she can ensure that these documents are properly created to withstand legal challenges.

Durable power of attorney: Using this document, an individual (like your parent) grants another (like you) the legal authority to manage his or her financial affairs. Unlike a regular power of attorney, a durable power of attorney remains in effect if the grantor becomes incapacitated.

Health care proxy: This document grants a person the authority to make medical decisions on another’s behalf. It is sometimes called a “power of attorney for health care.” You should discuss what constitutes an acceptable quality of life (one that is worth prolonging) for your parent. For instance, if a feeding tube became necessary to keep your parent alive, would he or she want that? Doctors may balk at carrying out a health care proxy’s instructions if another family member disagrees. As such, it is important for your parent to keep other family members informed about the decisions you have discussed.

Medical information release: Patients use this form to give their doctors permission to share their medical records with third parties. These forms can be obtained from the doctors themselves. There is no widely accepted standard form. As an alternative, an experienced elder law attorney, such as those at Hook Law Center, can draft one for your parent. The releases designed at Hook Law Center are called Authorizations for the Release of Protected Health Information, and they comply with the federal law protecting patient privacy (Health Insurance Portability and Privacy Act (HIPPA)). An attorney-drafted document can apply to any doctor/health professional who is treating your parent. In many cases, multiple doctors will be involved in a patient’s treatment. In an emergency, there may not be time for your parent to give individual authorizations to each doctor/health professional involved.

Living will: A living will specifies what medical treatments a person is willing to accept if he or she becomes incapacitated and cannot communicate his or her wishes. Common inclusions and exclusions include the use of resuscitation, feeding tubes and mechanically assisted breathing. The laws concerning living wills vary from state to state, and the documents often contain language that is too broad to apply to many medical conditions. Consult with your elder law attorney to decide whether your parent should have a living will in addition to a health care proxy.

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Companies to Rehire Boomers as Post-Retirement Consultants

admin — Thu, 30 Jan 2014 00:46:54 +0000

Large numbers of baby boomers will reach retirement age soon, and that could result in a shortage of knowledgeable and experienced managers at many companies. To fix this problem, many executives are planning to rehire boomers as independent contractors after they retire.

According to executive recruiting firm Lucas Group, 27 percent of executives at small- and medium-sized businesses plan to rehire boomers on a contract basis after their formal retirements. Moreover, 60 percent agree that the retirement of boomers will leave them short on talent.

Scott Smith, chief marketing officer for Lucas Group, told Bankrate.com that just a year ago, a similar survey showed only 17 percent of executives anticipated rehiring boomers. Smith pointed out that some 10,000 boomers retire every day. Boomer retirement will span 20 years, and it began just two years ago.

Some companies’ talent is heavily concentrated in baby boomers. With skills and experience their employers need to survive, these boomers are retiring, collecting on pensions or retirement accounts and then earning handsome consulting fees to perform similar job functions at greatly reduced hours.

That sounds like a comfortable retirement.

Whether you want to pursue further employment after your formal retirement or prefer to stay out of the workplace for good, proper retirement and estate planning is a must. Consult with the experienced attorneys at Hook Law Center to develop a plan that accounts for your individual needs.

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Social Security Administration Begins Processing Claims for Same-Sex Surviving Spouses

admin — Tue, 28 Jan 2014 05:00:50 +0000

The Social Security Administration (SSA) has begun processing benefits claims for surviving spouses of same-sex marriages.

On December 16, 2013, the SSA released a statement from Acting Commissioner Carolyn W. Colvin confirming that such claims had begun to enter processing that same day. Claims from widows and widowers of legally-married, same-sex couples were being processed, as were one-time, lump-sum death benefit claims.

Colvin asked the public for “continued patience” while policies concerning same-sex couples are developed and implemented.

In June 2013, the U.S. Supreme Court invalidated the section of the Defense of Marriage Act that denied federal benefits to same-sex couples who were legally married under state laws.

Since then, various federal agencies have been hashing out exactly how to rework policies to reflect the ruling. The SSA encourages those who believe they may be eligible for benefits to apply as soon as possible in order to protect against the loss of potential benefits.

Contact an estate planning lawyer at the Hook Law Center.

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VA Expands Disability Coverage to Illnesses Related to Brain Injury

admin — Tue, 07 Jan 2014 15:35:42 +0000

The Department of Veterans Affairs (VA) recently announced that some veterans with traumatic brain injury (TBI) and certain related illnesses will be eligible for additional disability benefits.

The new regulation takes effect on January 15, 2014. It will affect some veterans with TBI who are also diagnosed with Parkinson’s disease, depression, certain diseases of the pituitary and hypothalamus glands, certain types of dementia or unprovoked seizures.

For certain veterans with service-related TBI who also suffer from one of the named illnesses, the second illness will also be considered as service-related for purposes of disability compensation.

The rule change was prompted by a report by the Institute of Medicine of the National Academy of Sciences linking moderate to severe TBI with the listed ailments.

Eligibility for additional compensation will depend on the severity of the brain injury and the length of time between the injury and the onset of the second illness. Veterans who do not meet eligibility requirements may still file a claim to establish the ailment as service-related.

“We decide veterans’ disability claims based on the best science available,” Eric K. Shinseki, Secretary of Veterans Affairs, said in the announcement. “As scientific knowledge advances, VA will expand its programs to ensure veterans receive the care and benefits they’ve earned and deserve.”

Current treatment for TBI is usually limited to mitigating the damage it causes in the short term following the injury. Extensive further study is needed to better understand TBI and its connection with various neurological disorders. In the meantime, the VA is helping many deserving veterans by compensating for TBI-related illnesses.

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VA Reports Big Reductions in Backlog of Benefits Claims

admin — Tue, 31 Dec 2013 11:12:58 +0000

The Department of Veterans Affairs has recently made significant progress in reducing its huge backlog of claims for disability compensation.

Since it peaked in March 2013, the backlog has been reduced from 611,000 to just under 401,000 — a 34 percent decrease. The agency also reported that it has concurrently increased its decision accuracy. The three-month average accuracy rate for complete claim files stands at 90 percent, an improvement of five percentage points and seven percentage points over the accuracy rates for 2011 and 2010, respectively.

In April 2013, the VA announced an initiative to expedite decisions on claims that had been pending for more than one year. The following month, the agency mandated 20 hours of overtime per month for all claims processors through the end of 2013. If funding permits, the VA anticipates a continuation of the mandatory overtime policy into 2014.

Eric Shinseki, Secretary of Veterans Affairs, reiterated the agency’s goal of eliminating its claims backlog by the end of 2015 and praised VA employees for their hard work.

The VA said that as it works to reduce its backlog, it will continue to focus on those veterans whose claims have been pending longest, who are homeless or terminally ill, who are former POWs, who are Medal of Honor recipients and on those who file fully-developed claims.

It is encouraging to see a coordinated effort to get benefits to our deserving veterans in a timely manner.

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Parents of Special Needs Children Report Reduced Services, Increased Class Sizes Following Budget Cuts

admin — Mon, 16 Dec 2013 11:08:15 +0000

A survey of over 1,000 parents of children with disabilities found that a majority of respondents have seen detrimental effects on their children’s special education services in the wake of recent budget cuts.

In 2013 alone, federal special education funding was reduced by $579 million as a result of budget sequestration — a process of automatic, across-the-board spending cuts that began in March 2013 as a result of the Budget Control Act of 2011.

Among those parents who reported changes, nearly one third reported an increase in class size, 27 percent said their child’s school had fewer service providers and some 30 percent said their child’s services decreased. Further, 13 percent blamed budget cuts for a change in their child’s school placement.

The survey was conducted by the National Center for Learning Disabilities. The group’s director of public policy, Lindsay Jones, said that service levels were changing based not on children’s needs, but on the availability of funds — and that such policies were contrary to the law.

Generally, previous polls concerning the effect of budget cuts have focused on the opinions of school administrators and other professionals. This survey is among the first to gauge parents’ perceptions.

Unless Congress intervenes to avert them, further across-the-board budget cuts are expected for 2014.

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Choosing Between Single-Life and Joint Pension: Is “Pension Maximization” as Good as It Sounds?

admin — Thu, 28 Nov 2013 11:54:50 +0000

A worker nearing retirement with an employer pension plan will usually need to decide between a single-life plan and a joint-and-survivor plan. The single-life plan terminates when the worker dies, and the joint-and-survivor plan continues for as long as either the worker or his or her spouse survives. Not surprisingly, the joint plan offers a lower monthly payment, because it has a longer expected payment period.

If the employee is likely to die first, a joint pension is usually the prudent choice. But some professionals will advocate a strategy known as “pension maximization,” or “pension max.” The strategy involves taking the higher single-life payout and using part or all of the extra income to purchase life insurance. If the employee dies first, the spouse gets a death benefit that, assuming proper planning, is large enough to generate the same income as a joint-and-survivor plan. If the spouse dies first, the worker cancels the life insurance and enjoys the higher income.

Pension max strategies often involve a combination of term and whole life insurance. If only term life were purchased, and both spouses survived beyond the term, additional life insurance would have to be purchased at that time, at an advanced age that would make the insurance quite expensive. On the other hand, it is also expensive to purchase whole life insurance on its own in quantities sufficient to afford the same quality of life as a pension.

In certain cases, a pension max strategy may make sense, but properly weighing the alternatives entails crunching a lot of numbers. When deciding what type of pension plan will work best for you, speak with an experienced estate planning attorney.

The post Choosing Between Single-Life and Joint Pension: Is “Pension Maximization” as Good as It Sounds? first appeared on SEONewsWire.net.

Consider These Five Changes to Your Estate Plan Following Divorce

admin — Wed, 27 Nov 2013 05:00:47 +0000

If you are recently divorced, the aftermath may be a very trying time, and you may be very eager to put legal matters out of your mind for a while. But it is important that your estate plan receive a comprehensive review and update as soon as possible. Here are five steps you should take.

Update the beneficiaries of your will or trust. If you want your assets to go to your children or other family members instead of your spouse, it is important to revise your will or trust. Although your ex-spouse’s claim to your assets may be weak as a result of the divorce, you do not want your estate tied up in court.

Update the executor or trustee. If your ex-spouse is the executor or successor trustee, consider naming someone else to supervise your estate.

Update guardians. If you have minor children, your ex-spouse will, under ordinary circumstances, be their legal guardian if you die. It is prudent to designate another trusted person as backup guardian in case both parents die.

Update medical directives. Consider changing your living will and advance medical directives to designate someone other than your ex-spouse as medical decision-maker if you are incapacitated.

Update retirement and life insurance beneficiaries. The beneficiary designation for these assets is often separate from that of your will or trust.

Learn more from a Virginia estate planning lawyer at the Hook Law Center.

Updatethebeneficiariesofyourwillortrust. If you want your assets to go to your children or other family members instead of your spouse, it is important to revise your will or trust. Although your ex-spouse’s claim to your assets may be weak as a result of the divorce, you do not want your estate tied up in court.

Updatetheexecutorortrustee. If your ex-spouse is the executor or successor trustee, consider naming someone else to supervise your estate.

Updateguardians. If you have minor children, your ex-spouse will, under ordinary circumstances, be their legal guardian if you die. It is prudent to designate another trusted person as backup guardian in case both parents die.

Updatemedicaldirectives. Consider changing your living will and advance medical directives to designate someone other than your ex-spouse as medical decision-maker if you are incapacitated.

Updateretirementandlifeinsurancebeneficiaries. The beneficiary designation for these assets is often separate from that of your will or trust.

The post Consider These Five Changes to Your Estate Plan Following Divorce first appeared on SEONewsWire.net.

Planned Virginia Beach Housing Development for the Disabled Sparks Controversy

admin — Wed, 13 Nov 2013 11:54:06 +0000

A private initiative to build a housing development for people with mental disabilities right here in Virginia Beach has stirred some controversy.

Debra Dear, 52, and her husband care for their 31-year-old daughter Lindsey, who has a chromosomal disorder, at their home in the Sandbridge area. Dear looked into housing options for Lindsey in anticipation of the day when she and her husband could no longer look after Lindsey. Finding the existing options lacking, she started a nonprofit organization in 2010 to build a development that met her vision of a safe and enabling environment for her daughter and others like her.

The initiative has received some $3 million in donations and secured a 75-acre plot of land near the intersection of Princess Anne and Sandbridge roads for the housing development, to be called Vanguard Landing. Later, in September, 2013, the city of Virginia Beach reached an informal agreement with the nonprofit to provide a $2.9 million loan at a favorable interest rate.

That agreement set off the controversy, because federal law requires publicly-funded programs for the disabled to provide their services in an integrated community setting whenever possible. Dear says the project, estimated to cost $32 to $40 million to build, will be privately funded and self-sustaining.

Virginia is in the midst of executing a settlement with the Justice Department requiring the state to close four of its five “training centers” – institutions for the developmentally and intellectually disabled – and move the residents to smaller facilities or regular homes. Some parents oppose the settlement, favoring the supervision and oversight of government-run facilities. Others argue that segregated and secluded settings offer less safety and opportunities for rehabilitation.

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