Every year, more than $10 billion in Social Security benefits go unclaimed. Asserts attorney Gene L. Osofsky of the law firm Osofsky & Osofsky, “This is primarily because married couples do not know how to optimize their social security benefits.”

Much of this unclaimed bonanza does consist of spousal benefits that most people don’t even know they’re entitled to receive. “These benefits can increase your income and solve the riddle of whether it’s more advantageous to get immediate monthly income at age 62 or wait until you’re age 66 and get a bigger check – maybe significantly bigger,” Osofsky says.

If you do wait until age 66, which the U.S. government considers full retirement age, for people born between 1943 and 1954 the monthly benefit will be one-third greater than if you take it at age 62. If you wait until age 70, the check will be 76 percent larger. The longer you live, the more it will matter, and chances are, you’ll live a long time. The typical 65-year-old can expect approximately an additional twenty years of life. Within that pertinent group of 65-year-old elders, 41 percent of women and 28 percent of men will live to age 90 – and half of those women will make it to age 95, as will one-third of the men.

Spousal benefits offer a way around the potential conundrum. “If you’re married – or if you’re divorced after ten years of marriage and haven’t remarried, you can claim a benefit not only on your own work record, but also on your spouse’s,” explains Osofsky. No, you can’t collect those benefits simultaneously. But you might be able to get them consecutively. “You can file first to get a spousal benefit, and then later to get your own benefit after it has grown as large as possible. It just has to be done in the right order,” Osofsky says.

Being astute about these spousal benefits and how they work, can result in increased social security income for a married couple. “You may be able to increase your household income substantially over time,” Osofsky concludes, “You just have to be smart about it.”

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Attorney Diane Fener, based in Virginia Beach, Virginia, has family duties when she travels to New England to visit her parents. Her mother lives in the dementia unit of an assisted living facility in Rhode Island. She then meets with her father at his apartment about a half-hour drive away in Massachusetts. Her father’s second wife, Ms. Fener’s stepmother, lives nearby in a nursing home and she too, has dementia. She last visits her stepfather – the man who was her mother’s second husband for more than two decades.

“I’m sure that Ms. Fener doesn’t get to spend as much time as she might like with each of her parents,” says attorney Gene L. Osofsky of the law firm Osofsky & Osofsky, “but her situation is typical of many blended families today.”

During the 1970s, there was a spike in U.S. divorce rates. In the aftermath of that spike, states liberalized their divorce laws and working women became less inclined to remain in unsatisfying marriages, the cultural stigma of divorced lessened, and grown children of these broken marriages are dealing with the unintended consequences. “A new layer of complexity has been added to an already complex and emotional situation, especially for caregivers,” Osofsky explains.

In fact, the added stresses of divorce, family upheaval, and tighter finances can be so detrimental to your health that the effects can linger for years into the future. Because Osofsky & Osofsky is frequently engaged to help divorced or remarrying couples update their estate plans to protect their newly blended families, Ms. Fener’s plight struck an empathetic chord with Osofsky. “Divorce can have poignant and practical effects 20 or 30 years down the road,” he explains, “not just on the couple but also on their grown children now acting as caregivers.”

Adult children of aging parents can find themselves caring, not only for mom and dad, but also for stepmom, stepdad, and sometimes even extra sets of stepparents from an additional or current marriage. “Dividing time and often finances between so many parents with new and special needs can quickly take its toll,” Osofsky concludes.

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Joseph P. Kennedy, the patriarch of the Kennedy Family, left behind a labyrinth of blind trusts to manage the millions he had earned from scratch. He put his wealth into trusts with a long-term strategy in mind, to manage the family’s holdings for several generations of Kennedys. These blind trusts are run by financial experts whose goals are to invest conservatively and maintain the principal. Small amounts of profit are doled out to members of the Kennedy family annually. This network of blind trusts has maintained their overall wealth during the recent recession and in some instances they have flourished, even though the family can at times be hard pressed for ready cash.

In 2006, the recently-deceased Ted Kennedy could count as holdings five distinct family trust funds worth a minimum of $45 million to possibly as much as $150 million. Kennedy estimated that the family’s multiple trusts distributed $500,000 to $5 million in annual income. Before 2006, Senator Kennedy’s filings listed assets at less than $20 million. As only the family’s financial advisors were privy to details about the primarily blind trusts, it’s difficult to determine what made them double in value during the course of a single year. One thing for certain: Edward M. Kennedy passed away near the peak of his family’s net worth.
Trust instruments possess a unique nature. The Kennedy Trusts are excellent examples of how comprehensive and versatile trusts can be. First established as a single trust in 1926 by Joseph P. Kennedy, the Kennedy patriarch followed with successive trusts in 1936 and 1949. Each was “entrusted” with its own purpose; for instance, the 1926 trust was intended for Rose and their children, and the 1949 instrument was intended for his grandchildren. Each trust was established as a blind trust, in that it acted independently from any other trust.

The Kennedy trusts had staying power and were built to last, with each ensuing trustee active in providing for the beneficiaries while simultaneously protecting the principal for future generations. It was sad and tragic that Ted Kennedy has been taken from us as Americans. His stature as a voice in the U.S. Senate is beyond dispute. But the Kennedy trusts are a legacy for all of us, an excellent example of how trusts can be designed to protect and build even a relatively modest estate.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Mr. Obama is at heart a cautious man. During his 2008 campaign, he pledged to raise income tax rates for top earners, but has since reneged, as advisors have told him that such an elimination of high income “tax cuts” as Republicans like to call them – would have an adverse effect on a chronically ailing economy during a deep recession.

Despite the “Death Tax Repeal” movement’s best efforts, it looks like the estate tax is here to stay.
Democrats seem determined to act with deliberate speed to prevent the estate tax’s scheduled repeal. A prior levy on large inheritances was first approved by Congress under President George W. Bush in 2001. Rollbacks were phased in, albeit slowly, with a full elimination in place for next year.

The Senate Finance Committee is expected to propose legislation to reverse the scheduled elimination in lockstep with a likely announcement of the Obama Administration’s detailed estate tax preservation proposal in his October 2009 budget. This anticipated “swift action” by Democrats was associated with a rationale that it would be politically more difficult to initiate their plan to resuscitate the estate tax once it was gone.

Under the Obama plan detailed during the campaign, the estate tax would be locked in permanently at the rate and exemption levels that became law in 2009. Estates of up to $3.5 million (twice that for couples) would be exempt from any taxation. The value of estates above that would be taxed at 45%. If the tax were restored to Clinton-era levels, the first $1 million would be excluded from being taxed and the remainder taxed at 55%.

Nearly a year has gone by since candidate Obama’s campaign promises were initially voiced regarding the estate tax. But despite the procrastination of our elected leaders, a version of the estate tax will likely be still in place next year, although the sort of permanency that estate planners might have wished for may remain elusive. So despite the fact that uncertainties exist and are likely to linger, it’s not the time to “sit on the fence” when planning your estate. Contact your elder law attorney or estate planner at your earliest opportunity to review your personal situation.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Creating an accounting for the deceased’s assets and liabilities

Giving notice to potential creditors

Settling outstanding debts

Making distributions for estate taxes, if applicable

Making fiduciary income tax return

Making distributions to named beneficiaries

Filing a final accounting with the court to close the probate process

Included with these responsibilities is the duty to keep the estate viable during the probate process. This may include paying the mortgage on a house or even making car payments. Probate can often be a lengthy process, which is why you can petition the court to release short term funding for these purposes while probate continues.

“If you’re thinking that this sounds like no easy job, you’re absolutely right,” says Osofsky. It is an endeavor that should never be undertaken lightly. Executors are generally entitled to compensation from the deceased’s estate, but most immediate family members decline this option. “One good bit of news from this,” explains Osofsky, “is that you are not financially responsible for any debts the deceased may have accumulated.” To emphasize, all debts, taxes, legal fees, and administrative costs should be paid from the estate of the deceased, not from your own pocket. If you have advanced any such costs, you are usually entitled to claim a refund from the estate.

But the responsibilities of an executor can often be accomplished more efficiently with the help of a knowledgeable Elder Law attorney, such as Gene L. Osofsky of the law firm Osofsky & Osofsky. “We receive requests from clients to assist them in handling their responsibilities as an executor, especially when the executor is overwhelmed with grief and not accustomed to some of the required duties,” Osofsky explains, “If you find yourself in this situation, seek out an attorney knowledgeable in this process.” It will ease your burden, give you peace of mind, and may prevent needless family squabbles.

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Specifically, Medi-Cal funding to skilled nursing facilities has been penciled in at $96.4 million in the Governor’s budget, but a raft of caveats have been included in the budget as a whole. “There will be a reduction of $60.5 million in Medi-Cal county administration, and also a reduction of $47.9 million in the funding for private hospitals,” Osofsky says, “as well as limiting services to a maximum of three days per weeks – at a savings of $28.1 million – for adult day health care.”

These austerity measures are likely to adversely affect many Californians who may be Elders both directly and indirectly, depending upon their circumstances. “A few years from now, the ripples from these recession-beating budgetary maneuvers may prove more far-reaching than anyone first anticipated,” Osofsky concludes.

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

A Last Will and Testament is a legal declaration by which a person names one or more people to manage their estate and provides for the transfer of property upon death.

Death is inevitable. But a careful choice in selecting an executor is seldom a given, especially where property and money are involved. During life, families may seem to get along fine, but the mixture of the death of a loved one, considerable property to be disbursed, and an executor who seems unfair or biased — can be a recipe for conflict. The living, prior to their passing, don’t always write out their wishes in clear and concise ways. If there is uncertainty in a family about what might occur upon the death of a patriarch or matriarch, for instance, the atmosphere following death can become an emotional war zone.

Family dynamics can disintegrate into shouting and resentment. Such family “fireworks” have little to do with the 4th of July, and can have long-lasting impact upon family relationships. Seemingly devoted family members fighting like wolverines don’t require an alumni card from the University of Michigan.
Unresolved disputes can result in a will contest. That contest can take on a life of its own, with potentially grim consequences for family harmony. Emotion often outshines logic in these contests. Where disputes occur, the litigation process can stretch out seemingly forever and become very expensive. For this reason, when preparing your Last Will, serious thought should be given to the selection of the best person to serve as one’s executor.

The best executor is one that approaches his or her duties professionally, with tact, with due regard for family dynamics, and with professional guidance from a knowledgeable attorney. If a will contest nevertheless does occur, at least it should then be grounded in a semblance of law and fair play. For this reason, it is important to choose the best person to serve. If you or someone you love is named as an executor, it is imperative that you engage a knowledgeable attorney early on in the probate process in order to help manage the proceedings, mediate expectations, lend assistance and guidance to the executor, and hopefully minimize family friction. By doing so, you just might preserve the very loving family of which the deceased was so fond.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Elder Law attorney Gene L. Osofsky, like many Americans, recently read a feature article in the April 27, 2009, issue of The Nation that gave him pause. The article, entitled “A System from Hell” by Kate Michelman, detailed the tragedy of a family that, despite possessing adequate insurance coverage, has nevertheless been pushed to the brink of destruction.” Her young adult daughter was paralyzed when a horse fell on her; her husband, who had been diagnosed with Parkinson’s Disease, was then crippled and lost any hope of independence in the twilight of his life, after shattering his hip; and now the mounting medical bills keep on exacting a terrible toll – all this happens to a responsible couple who had seemingly prepared for health-related contingencies. How could this happen in America?” Osofsky asks. Michelman’s husband was placed in assisted living after surgeries and hospitalizations for his fractured hip. Ironically, the couple had thought to purchase private long-term care insurance years before their crisis, but although their insurance plan nominally covered long-term care, it did little to address her husband’s long-term care in respect to its actual costs. “How does one plan for a situation such as this? Kate Michelman certainly thought she and her husband had planned for every eventuality – she is a well-known and well-to-do public figure, he was a tenured college professor, they had excellent medical insurance, even long-term care insurance, and still it wasn’t enough,” Osofsky says, “They still found themselves on the brink of losing everything.”

According to Osofsky, Michelman’s story is frightening “precisely because it could happen, and is happening, to any of us.” The unfortunate truth about medical insurance, long-term care insurance, and Medicare/Medi-Cal for those who qualify, is that they often cover “most of the cost” of medical treatment and rehabilitative care. Asserts Osofsky, “Most is woefully lacking when we must face the awful reality of how high the costs actually are. Deductibles, co-payments, share of costs, and uncovered services have become a huge personal obligation, a black hole of debt where accumulated life savings can disappear in a heartbeat.” Is there a solution? The key is to enlist the help of committed experts who know how to navigate the convoluted worlds of the medical industry, insurance industry, and government benefit programs. Osofsky suggests “finding professionals who can help you build a plan to make the best use of those systems and what they offer.” But even that’s not a complete solution. Something needs to change. Concludes Osofsky, “Medical care in the United States has become a mountain of cost that even the young and the healthy ignore at their own risk.”

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

“It might seem counterintuitive,” says Elder Law specialist Osofsky, “but according to a 2006 case decided by the California Supreme Court, being designated as a ‘care custodian’ of a dependent adult, may actually disqualify such persons from receiving testamentary bequests.” Adds Osofsky, “Only if the person making the testamentary bequest engaged a separate attorney to conduct an Independent Review and affirm that the testator was of sound mind and knew what he was doing, could the bequest be upheld.” The law seeks to protect dependent adults from coercive beneficiary disbursements made under duress or as the product of overreaching or undue influence. In certain care settings, California law presumes the naming of a care custodian as a beneficiary of one’s Will or Trust to be coercive actions assumptive of an unscrupulous care custodian and therefore void.

The case of BERNARD V. FOLEY (decision handed down August 21, 2006) found that unrelated friends providing ongoing health services to a dependent adult were “care custodians” under the relevant state statute and were therefore disqualified from receiving a testamentary distribution. James Foley and Ann Erman were longtime friends with Carmel Bosco. Ms. Bosco lived with them for two months prior to her death. Foley and Erman assisted her with her daily needs, including preparing her meals, helping her bathe, changing her diapers, and administering oral medications. Three days before she died, Ms. Bosco altered her living trust to make Mr. Foley and Ms. Erman each 50 percent beneficiaries. They had not previously been beneficiaries of the trust.

But Ms. Bosco’s relatives protested. Petitioning the court to invalidate the amendment, they argued that Mr. Foley and Ms. Erman were disqualified from receiving a testamentary distribution because they were “care custodians.” “Under California law, there is a presumption that donative transfers to care custodians are procured by undue influence,” explains Osofsky, “The state Supreme Court merely affirmed that a ‘caregiver’ under the statute could even be a friend who renders care to a dependent adult without compensation.” According to the Court’s decision, the definition of custodial care includes uncompensated or nonprofessional care and there is no evidence the legislature intended to make an exception for preexisting personal friends who provide health care services. Concludes Osofsky, “Elders have to be protected from people who would provide them with unprofessional care simply as a pretense to inheriting their assets. The very fact that they require such care puts them in an extremely vulnerable position.” But even this can be less than ironclad. “Sometimes persons have legitimate reasons for wanting to make bequests to their non-family member caregivers. In California, this essentially requires two attorneys to be involved, one to perform the Will or Trust and a second to conduct the Independent Review. Is this a trap for the well-intended?”

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

If you are thinking that joint accounts are a foolproof way to escape probate and funnel dollars to loved ones as a sort of “poor man’s estate plan,” think again. Circumstances exist when a joint account is an excellent option. But the instrument has its pitfalls as well, and if misused or entered into without caution, joint accounts can pose serious risks. Adding a loved one to a bank account may seem like a prudent action, but such actions can impact Medicaid planning or even make your account “fair game” for your loved one’s creditors.

Applications for Medicaid long-term care coverage can be tricky. States are obliged to examine the applicant’s assets to determine eligibility. Although a joint account may include two or more names, states tend to make the assumption that the applicant is the owner and entirely responsible for the total funds in the account, irregardless of who might have contributed to the account. Imagine your name is on a joint account. You enter a nursing home. The state is still likely to assume that the account’s assets are yours – especially without proof otherwise. Realize also that proving anything is a lot more difficult from inside a nursing home, or even an assisted living facility, when you might not have ready access to your papers and files as you did within your home sweet home back when you were well and able.

It can get worse. What if you or the other joint owner of the account decides to take monies out of an account that is already under state scrutiny? This can be perceived as “improper transfer of assets” for Medicaid purposes, which may have an adverse effect upon your eligibility. You or the other joint owner could become ineligible for Medicaid for a period of months or perhaps years. In fact, if a joint owner is removed from an account, it can appear suspicious to investigators. Example: Your parent enters a nursing home. You decide to remove your parent’s name from the joint bank account. Again, this simple action, prudent on its face, can be construed as an improper transfer of assets.

Remember that an account remains exposed to all the account owners’ creditors. If your son is added to the account and falls behind (or worse, defaults) on his credit card debt and gets sued, guess who is on the hook? Under laws currently in effect, a credit card company can confiscate the money in your account to pay off your son’s debt. Another pertinent question revolves around trust. Can you completely trust the person you are adding?

Viable alternatives to joint accounts do exist. A consultation with your attorney specializing in Elder Law may suggest a durable power of attorney or else a well-considered trust instrument. Seek out a qualified Elder Law attorney near you.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

It is the worst economic downturn since the Great Depression of the 1930s. The decline and associated roller coaster ride on Wall Street has made durable power of attorney into not just a luxury when it comes to planning your estate, but an absolute necessity. Some Elder Law attorneys have come to view the instrument as even more integral to contemporary estate plans than a Will or Trust.

A Dow Jones newswire column is a case-in-point. It presents the cautionary tale of a female elder who had recently lost half of $6 million in savings. The losses were incurred almost entirely on the stock market. The woman’s woes only intensified when she became incapacitated, and her relatives were stymied when attempting to shift her investments, becoming increasingly frustrated as various remedies were attempted as damage control measures. But they lacked legal authority to take these corrective steps. An inherent irony was that the woman had once executed a power of attorney in case she ever were to become incapacitated, but the issue had become moot as the person she’d nominated had died and she’d neglected to name a successor. If dead men (or women) tell no tales, it’s also true that dead friends, no matter how trusted, cannot follow through with their power of attorney responsibilities.

Such columns have also tackled what many consider to be the thorniest question when executing a power of attorney. Is there someone you can actually trust with this power? Trust is always a thorny issue, but perhaps it is better to avoid naming someone if one-hundred percent trust has yet to be established. In fact, the powers of attorney instrument has become the subject of frequent “horror stories” in recent years, especially since the onset of our current Great Recession. In fact, exploitation of vulnerable elders by rascally persons misusing their powers of attorney roles is becoming epidemic.

But this doesn’t make the instrument less necessary in these difficult times, assert Elder Law experts such as Gene L. Osofsky. If someone trusted can be found, and if proper safeguards are in place, such as deciding who retains originals of the power of attorney document prior to when the instrument may be needed, then it can work well indeed. A power of attorney can take effect immediately or can become effective only when the subject is incapacitated as defined in the document and confirmed by a physician. In 2009, the need for a durable power of attorney has never been greater.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Revocable “living” trusts can be a prudent estate planning device, but must be kept current. Prior to the 2001 changes in the tax law, the personal lifetime exemption from estate tax was $675,000. Couples often based their plan design on that rule. But when the exemption was increased to $3.5 million, the playing field changed. In fact, many couples had not updated their trusts to accommodate this change. “The tax landscape had been dramatically altered since many couples originally designed their trusts,” says Gene L. Osofsky, of the law firm Osofsky and Osofsky. There were other differences in those pre-2001 documents. “Many of these older trusts contained directions to split the trust estate into mandatory sub-trusts upon the death of the first spouse. This mandatory split was usually ‘tax driven’ and designed to preserve each spouse’s personal exemption, and thereby reduce or eliminate estate taxes over the span of two deaths. The ultimate goal was to transmit the maximum gift to the couple’s remainder beneficiaries, usually their children,” Osofsky explains. When the exemption amount changed, these trust provisions became archaic, or else applicable to much larger estates. Sometimes in the aftermath of the change, with an out-of-date document in hand, the surviving spouse’s access to the couple’s original assets was restricted without a corresponding tax benefit ensuing.

An admonition to draw from all this would be difficult to hear. Married couples who have created Revocable “Living” Trusts prior to 2001, as well as many who had created such documents afterwards – especially by non-attorneys and by so-called “trust mills” — would be well advised to have their trusts reviewed by a competent professional.

More recently, a severe recession has created similar issues for estate plans, to the extent that they were designed with higher asset values in mind. Trusts should also be reviewed, even if is of recent origin. While the estate tax rate is 45% under current federal law, it stands to be eliminated in 2010, then scheduled to be increased to 55% in 2011 even as the exemption will be reduced to $1 million. Says Osofsky, “While the markers are present in the political landscape to likely reinstate the taxed estate rate at 45% in 2009, while keeping the $3.5 million ceiling intact, it’s not exactly clear if this will actually happen.”

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Gene L. Osofsky, of the law firm Osofsky & Osofsky, has given thought to helping clients distribute their Internet passwords and online information in the context of estate and long-term care planning. He’s become preemptive about the subject. “It’s occurred to me that in preparing their estate plans, preparations should include some mechanism for transferring login credentials, like user names and passwords, and perhaps other online information they’d want disseminated should they be laid low by incapacity or death, or should a loved one become similarly afflicted or die,” Osofsky explains. The noted Elder Law attorney adds, “This could be pretty important. You or a loved one might have information on social networking sites such as YouTube or Twitter, for instance, and might want it removed, modified, or made accessible, according to personal wishes. What would happen to this information in the case of incapacity or death if you were no longer able to manage it?”

Companies such as Legacy Locker (www.legacylocker.com) are beginning to sprout up to address such needs. “While persons could certainly write down their passwords and pertinent online information on a piece of paper, companies like Legacy Locker (others will certainly follow suit) have taken such matters to the next level. Legacy Locker even provides a private letter to whomever the deceased wishes as a kind of final online testament,” Osofsky says. But Legacy Locker and other online vendors might not work for everyone. Many people might be justifiably reluctant to share their Email accounts or social network profiles. A potentially better solution might be an “online info” Confidential Insert prepared by your Elder Law attorney, the information contained therein transferred while you or your loved one are still of sound mind. This insert would contain all user names, passwords, and other information for on-line access that you or your loved one deem appropriate or essential in the event of incapacity or death. You’d establish clear instructions concerned with the terms and particulars involved with its release. What could be better than that?

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

An estate planner’s office must necessarily be about death, but it should also be about life. In everyone’s lives are personal and extraordinary stories which are there for the telling, and if expressed well, might live long after our lives have ended. Additionally, elders have so much life experience and wisdom to share and pass on, and in many respects, the loss of this precious history may be as tragic as their passing itself. In fact, what goes for our elders is also true for any of us; especially if death occurs prematurely, or even if life continues only marginally, its quality diminished or nearly extinguished due to unfortunate circumstances.

When you sit down to create your estate plan, think not only about how to pass on your assets, but also how to pass on your unique family stories and wisdom. After all, the silver flatware may go back to your great-great grandmother, but the story behind it is what makes it such a valuable family heirloom.

With the easy use and availability of digital video technology, exciting opportunities suddenly exist to document the stories and experiences of loved ones among us, while they still can live and breathe and share. If you or a relative feel that you do not possess the expertise to do this loving task justice, you might consider hiring a documentary filmmaker or skilled videographer and interviewer, to record your loved one’s life stories while you have the chance.

The interview can be as simple as audio taping life experiences and colorful stories. A poignant story comes to mind involving the 12-year-old son of a journalist and filmmaker. This charismatic and engaging boy would visit the elders in a nearby rest home with tape recorder in hand, determined to impress his beloved father with the extraordinary stories he’d recorded. The boy himself was killed tragically at age 13, but the stories he had gathered remained, treasured in their own right as a reminder of the youngster’s remarkable personality.

If funds are available, a competent writer specializing in biographical writing might be hired to create a well-written and engaging account of a wondrous person who once lived, breathed, and was loved. What an extraordinary addition to any estate plan!

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Even a decade ago, the keeping of gateways and access providers, such as passwords, must have seemed inconsequential to those charged with drawing up estate plans. That was before the advent of Twitter and YouTube, and all of the online banking, asset management and the like — when passwords to access these services hadn’t become such pervasive reminders of our recent technological prowess. Passwords have become ubiquitous enough that even our beloved elders use them liberally. The access codes are required for accessing almost everything on the World Wide Web, spidery as it is, and for most of us, our computers, hand-held devices, and other electronic gadgets that we’re constantly using are often locked from intruders (meaning anyone) until a user name and password are typed in.

Much of this secrecy is due to legitimate concerns and is extremely well-intentioned. Files and histories of sites that we visit on our computers are meant to be private. In the most ordinary sense, who wants the world to know every facet of our business? But by the same token, all of us have experienced the utter frustration that quickly develops if a password is suddenly misplaced or forgotten. Forgetting them is more common, considering that we may have so many, not just a few. But what if someone you love or know is laid low by incapacity or death, and the location or memory of these precious codes for navigating the Internet is suddenly gone?

This is no longer of little consequence. To a caregiver or family member responsible for a loved one, or more pointedly, for their affairs, access to certain information can be critical. Simply writing down a password on a scrap of paper may not be enough. While there is no easy solution for this problem, certain companies like Legacy Locker are attempting to address a burgeoning need. This site allows users to input their login credentials for the web services they access, where they are then kept safe until notification of the login info’s owner and relevant family members in the event of incapacity or death. Users can select which account information will be distributed and to whom. Such a service might seem like a good idea, but many people would be justifiably reluctant to share their Email accounts or social network profiles. What might work better for some would be an “online information” Confidential Insert added to an estate plan, which you’d provide directly to your Elder Law attorney, in connection with the preparation or update of your estate or long-term care plan while you are still of sound mind. This Confidential Insert would contain all passwords and other information for online access that would later be needed by your trusted agent, successor trustee, or executor. You would set the terms of its release. Alternatively, you might entrust this insert to your spouse, adult child, or other trusted person.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Harry and Joan have been married for fifty-one years. Last year, they celebrated their Golden Wedding anniversary. They’d accumulated a modest “nest egg” over their working years, but a tragedy common to growing old in America seems to be looming. Joan has been diagnosed with Alzheimer’s disease, albeit in its early stages. Harry remains in relatively good health, and is currently able to provide adequate home care for Joan; for instance, he’s patient when she misplaces her toothbrush or the house keys, but he worries about the progression of his wife’s deteriorating mental capacity. He has other anxious moments. What if he develops a chronic illness, or worse, what if he dies before Joan? As a responsible husband, he wonders if there is any way that he can create a plan that would address the special needs of Joan if he should die before her, or if he suddenly became incapacitated.

He’s heard about something called a Special Needs Trust that would allow Joan to receive government benefits supplemented by their accumulated savings. He’s also been warned by well-meaning friends that a “Living Trust” can have a downside. He needs answers. Fortunately, he and Joan live in California’s East Bay in close proximity to the law offices of Osofsky & Osofsky. He calls the law office and hears the pleasant voice of Gene L. Osofsky, a leading Elder Law Attorney and co-author of The Consumer’s Guide to Medi-Cal Planning. Is there some other way to protect Joan?

“Yes, there is,” Gene says, “There is a way that couples can provide for the survivor in this situation. It requires special planning. Instead of relying upon a ‘Living Trust’ as the primary estate planning device, you should consider creating a plan which relies upon a specially designed Will which contains Special Needs Trust Provisions for Joan. Your plan should be coordinated in a special way with the Will.” Gene tells the suddenly reassured Harry, “If you die before Joan, the Will – not the Trust – will help protect Joan and provide for her needs.” “That’s wonderful,” Harry says. Gene offers his expertise as this is an urgent matter. “Your situation requires special skill and knowledge about government benefits, especially Medi-Cal benefits. Our firm may be able to help.”

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Gene L. Osofsky, of the law firm Osofsky & Osofsky, is frequently consulted about asset preservation techniques in connection with Long-Term Care Planning. Senior couples often ask how they might protect each other if one of them were to be afflicted with an incapacitating illness or lingering condition during their final years. The questions are often not about sudden death, or even about dying, but about surviving and needing extended long-term care.

Long-term care often entails devastating financial costs associated with placement in a nursing home facility. Asserts Osofsky, who specializes in such elder care issues while serving California’s East Bay area, “This is a real concern, as nursing home expenses average $7,500 per month in our community, and are likely to only increase over time. This concern is all the more real for those who have experienced the financial and emotional devastation that such expense can cause, perhaps by having to help a parent or other loved one meet those costs.”

The good news is that Osofsky & Osofsky has developed a very special plan that deftly addresses those concerns, as well as the more traditional question of “Who gets our stuff if we should both pass on?” The plan is called the “Spousal Protection Plan,” or SPP.

Osofsky’s SPP incorporates special powers into the traditional estate plan. One of the spouses is designated the “Well Spouse” and is authorized to seek a government subsidy for the ill spouse’s nursing care under the Medi-Cal program, and to take steps during their lifetime to protect the couple’s estate from “payback” after the demise of both spouses. By taking these steps, the SPP is designed to minimize or avoid the financial devastation to the couple’s savings, investments, home, or other estate assets, and thus avoid impoverishing the “Well Spouse” while protecting their children’s inheritance

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

While longevity is increasing for both men and women, people are suffering from more debilitating diseases, and requiring more long-term care than ever before.

The cost of that care promises only to increase; and, were it not for the Medicaid Program (called Medi-Cal in California) created by Congress, many Americans would be without the means to pay for that care or would risk financial ruin. Seniors and their families deserve to live and age with dignity. They should not have to choose between securing necessary care and financial ruin. Indeed, providing a payment source for seniors and the disabled to cover long-term care expenses was a social policy decision made by Congress years ago.

Avoiding impoverishment by taking steps to qualify for an available long-term care subsidy may require planning and the services of an Elder Law Attorney.

Is this ethical? Think of it this way: The wealthy plan their affairs and design their business strategies to minimize their tax burden. They may hire a team of expert financial advisers, accountants and attorneys to assist them in their efforts. Their success is applauded and the creative efforts of their “team” members are often highly compensated. When logic is applied, what is so different about the middle class planning their own affairs in a similar fashion, in pursuit of benefits to which they are entitled? Except for an inherent class bias favoring the wealthy, the answer is nothing. The impact upon the public treasury — whether the planning involves tax avoidance, or securing a Medi-Cal subsidy — is precisely the same. Such middle class “tax planning” is not only ethical, it is becoming absolutely essential.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning.To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.

Your frail mother is still beloved but she’s 92 and requires home care. Caring for her is a labor of love, but difficult work; even when she smiles. Besides the tedious and unrelenting requirements involved, the “job” of caring for her can be a severe financial strain on the child. Studies have shown that a child serving in the capacity of primary caregiver can lose 75% of potential earnings during every year that the”job” of caring for their parent continues.

What if there existed a creative solution to your elder care dilemma? Caregiver agreements – formal contracts under which relatives are hired to care for elderly family members have been around for decades, but with the current economic downturn, an increasing number of families are choosing this option. This is good news, because caregiver agreements come with a number of benefits, not the least of which is that money given to a son or daughter under a caregiver agreement is not considered by the government to be “a gift” when an elderly person is attempting to qualify for Medi-Cal, Medicaid, or other public benefits. Another plus is psychological: to an aging parent, the idea of being cared for by a trusted family member may be especially meaningful. The contracted arrangements may also ease tensions and resentment among siblings, if for example, one child is rendering the lion’s share of the care.

The caregiver agreement must be in writing and it should be carefully crafted, preferably by an attorney specializing in Elder Law. There are also tax consequences. These agreements are legal contracts; should include details such as the cost of services with each service itemized; and the duties that the caregiver will be performing, spelled out in clear language. Authorizations for medical or financial decision-making should also be clearly described, especially if making medical and physical decisions will be part of the caregiving duties, those powers should be separately set forth in Durable Powers of Attorney for finances and Advance Health Care Directives for medical issues. Perhaps most crucially, the caregiver contract must be executed before the caregiver receives any compensation. If this final stipulation is ignored, a caregiver agreement could lead to a crisis instead of a solution.

Gene Osofsky is an East Bay elder law attorney in California. Gene Osofsky specializes in Medi-Cal planning, wills, probate, trusts, nursing home issues, special needs planning, and disability planning. To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.