Michigan Estate Planning Blog

Medicaid Dilemma – Sell Or Keep Your Home? Saginaw, MI

The move to a nursing home is a big step. It is a major life transition for all family members. Your loved one will no longer be living in their own comfortable and familiar home. In addition, there is the issue regarding whether to retain or keep the home given the unpleasant knowledge that the home may ultimately pay for nursing home care either way. This dilemma was the focus of a recent Q&A in ElderLawAnswers via the question, “Is It Better to Sell a Medicaid Recipient's Home Now or Wait Until Her Death?” Essentially, by receiving Medicaid you make certain agreements as to costs and, in the case of nursing home care, the deal often hinges on that most valuable of all assets an elderly person is likely to own: their home. True, it is possible to liquidate and sell the house just to pay for the nursing home care. Although this often reduces or eliminates the costs for maintaining and insuring an empty house, this also means giving up Medicaid benefits until the sale proceeds have been expended for care. On the other hand, Medicaid will remember your choice whether you sell the home and private pay until spend down or if you to continue receiving benefits in lieu of such sale. If a family member attempts to sell the house after the Medicaid recipient loved one passes, then Medicaid has a lien on the sale proceeds (limited to the amount Medicaid paid for the care of the Medicaid recipient). Either way, the home is subject to pay for nursing home care or to reimburse Medicaid for the cost of care. The answer to the question posed to ElderLawAnswers hinges on more than a few factors. That said, in most cases Medicaid payments will be less than private pay, sometimes a great deal less. Consequently, the resulting lien may be less of a burden than selling the house outright! Is there something else at work, however? Notably, is the family home worth keeping in the family? These are situations that require some delicacy.

Reference: ElderLawAnswers (updated October 17, 2013) “Is It Better to Sell a Medicaid Recipient's Home Now or Wait Until Her Death?”

For more information, see www.jerryreiflawyer.com

 

Caregiving Challenges Of Blended Families Saginaw, MI

There are a lot of “blended families” in the United States. Whether following a divorce or the death of a spouse, this fact of life can raise serious caregiving issues later in life. For example, if you are caring for your elderly husband now, what kind of assistance can you expect from his adult children (and their spouses). Perhaps not much.

As reported in a recent New York Times article titled “Study Finds Wives Often Struggle With Stepchildren Over Caregiving,” a study published by the Journal of Marriage and Family, found that all is not well with older Americans who have formed blended families. There is an unfortunate breakdown occurring in families, often to the detriment of the elderly family member and, at least as poignantly, for the elderly spouse left to care for them without other family assistance. The breakdown falls between the spouses from late-in-life marriages – statistically, the wives – and the adult stepchildren.

Late-in-life-healthcare has simply become a greater burden on elderly persons and their families. This largely is due to the increased costs of care effecting everyone, but especially those with late-in-life conditions like Alzheimer’s or dementia. At the same time, late-in-life marriage has become more and more common and that changes the dynamics of family. Sometimes these changes are positive, but other times they can be less so.

When there is a rift between adult children and a step-parent, what happens when the chips are down and an elderly parent/spouse grows ill or begins to suffer from dementia? What happens when the family does not pull together, but rather pulls apart? The latter scenario is a very real possibility in many families. Accordingly, some advance planning would be advisable, so all parties involved can come up with an agreed game plan before a crisis strikes.

What if it is too late and the family is in crisis mode? The best approach may be to mediate and remediate. As the original article points out, family meetings are a very important tool in some circumstances unless the family is already fractured beyond repair. For example, it can be a difficulty to get everyone to even show up and talk.

There might not be a silver-bullet plan that is a one-size-fits-all, but if you engage the issues now you might be able to work through them later.

Reference: The New York Times – The New Old Age Blog (October 15, 2013) “Study Finds Wives Often Struggle With Stepchildren Over Caregiving”

For more informaiton, see www.jerryreiflawyer.com

Medicare Enrollment Clock Is Ticking Saginaw, MI

Have you heard the news? It is Medicare Open Enrollment time once again. However, do not wait until time runs out on December 7. This is the season for distractions. With Thanksgiving in sight and the holidays not far behind, kicking the can when it comes to making your Medicare elections is easy to do. Resist the temptation! Procrastination is never a prudent planning strategy. When it comes to Medicare Part D, you need to shop around and making comparisons can take time. This important issue was the subject of a recent Forbes article titled “Shopping For New Medicare Part D Drug Plan Is Critical.” Medicare plans change. What may have been the best plan for you last year may not be appropriate this year. For example, premiums go up, and so do deductibles, while coverage can waver or shift to the wrong pharmacies for you. In the meantime, perhaps your needs have changed, too. In short, there are many variables and you will live with the decisions next year that you make (or fail to make) this year. So, how do you go about evaluating your options? Check out some basic tips worth considering in the original article.

Growing Old – Sissies Need Not Apply Mid-Michigan

To live with and care for an elderly loved one is not an easy thing. On the other hand, it is not an easy thing to be cared for either. Over and above all the medical issues, the time crunches, or the money concerns, oftentimes it is the emotional issues (and even the fighting) that can wear on you. What you need is a little bit of empathy. In the name of empathy, then, especially as we sit down with our loved ones for the holidays – a trying time for some – consider a recent piece reported in The New York Times titled “‘A Very Ungrateful Old Lady.’” In this instance, the “old lady” is none other than Sheila Solomon Klass. She is an English professor and a blogging grandma at the seasoned age of 86. Nevertheless, Klass is someone’s elderly loved one, too. As the title of her essay suggests, Klass considers herself a burden and confesses that she is not always good about expressing her gratitude, without expressing frustration instead. As you click over to her original essay, think about yourself and your own loved ones. A little dose of empathy can go a long ways.

Medicare Enrollment Clock Is Ticking Mid-Michigan

Have you heard the news? It is Medicare Open Enrollment time once again. However, do not wait until time runs out on December 7. This is the season for distractions. With Thanksgiving in sight and the holidays not far behind, kicking the can when it comes to making your Medicare elections is easy to do. Resist the temptation! Procrastination is never a prudent planning strategy. When it comes to Medicare Part D, you need to shop around and making comparisons can take time. This important issue was the subject of a recent Forbes article titled “Shopping For New Medicare Part D Drug Plan Is Critical.” Medicare plans change. What may have been the best plan for you last year may not be appropriate this year. For example, premiums go up, and so do deductibles, while coverage can waver or shift to the wrong pharmacies for you. In the meantime, perhaps your needs have changed, too. In short, there are many variables and you will live with the decisions next year that you make (or fail to make) this year. So, how do you go about evaluating your options? Check out some basic tips worth considering in the original article.

Reference: Forbes (October 17, 2013) “Shopping For New Medicare Part D Drug Plan Is Critical

For more information, see www.jerryreiflawyer.com

MOPM – Managing Other People’s Money Mid-Michigan

Managing your own finances can be difficult at times. Whether you are smart with your own money is your call, as you will be the one to reap the rewards or suffer the consequences. Managing the finances of a loved one is a far more tenuous role to occupy.

If you are caring for an elderly loved one and stepping up to oversee their finances as well, then there are some important rules to know and follow.

Recently, the Consumer Financial Protection Bureau released four helpful guides on the topic of “Managing Someone Else’s Money.” In addition, for some short tips on the subject you can review the “4 rules for managing parents’ money,” a MarketWatch article released on Veterans Day.

The four tips – paraphrased – include:

1. Understand the power, meaning you have to understand what you can and cannot do under a power of attorney document.
2. Keep accounts separate, even if it can be a pain to moderate so many accounts, avoid the temptation to commingle funds that are not yours.
3. Document everything, even if it means doubling down on the bookkeeper.
4. Be watchful for exploitation by others, because being in charge of the finances does not mean you are the only one who exerts some financial control or influence. Those seeking to take financial advantage of the elderly include strangers and loved ones themselves.

In reality, there is much more to know and follow when managing other people’s money. Nevertheless, you certainly will be held to the basics. Remember to keep the CFPB guides and the MarketWatch article available for handy reference.

In truth there are many little rules for managing finances, but these are the basics that you need to accomplish to do the job. If there is time, you and your elderly loved one ought to plan now so you are prepared to fulfill your management role and the challenges ahead.

Reference: MarketWatch (November 11, 2013) “4 rules for managing parents’ money”

For more information, see www.jerryreiflawyer.com

Stewarding An Elderly Loved One’s Assets

Taking care of your own finances can be a bit tricky, even for the best of us. On the other hand, taking care of your elderly loved one’s finances can be even more troublesome. How do you take care of business for your senior loved one? The issue is much more than one of financial acumen. No, there are very specific rules to follow depending upon the role you take on and it is important to play the part properly. Managing the estate or affairs of an elderly loved one is sometimes such a delicate dance that it has attracted the attention of the Consumer Financial Protection Bureau (CFPB). Late in October the CFPB came to the table with four guides entitled Managing Someone Else’s Money. Available online, these guides were unveiled on the Consumer Financial Protection Bureau Blog in a post titled “Managing someone else’s money.” The four guides address matters that include powers of attorney, court-appointed guardians, trustees and government fiduciaries. Those left to pick up the reins on behalf of a loved one would do well to learn their roles, and these can be helpful guides. That said, however useful, a guide is still just a “guide.” Unfortunately, most family members who pick up those reins learn on the job. Regardless, loved ones on either side – those who receive care and those who take care of them – would do well to consider the issues early and plan accordingly.

Reference: The Consumer Financial Protection Bureau Blog (October 29, 2013) “Managing someone else’s money”

For more information, see www.jerryreiflawyer.com

 

Social Security Likes Diet COLA Mid-Michigan

According to the numbers recently released by the Social Security Administration, 2014 will be a “diet COLA” year. That means the Cost Of Living Adjustment (COLA) made to Social Security payments will only be a 1.5% increase. ElderLawAnswers weighed in on the news in an article titled “Social Security Benefits to Rise Only 1.5 Percent in 2014,” while the SSA has issued its own COLA Fact Sheet. The COLA is an important adjustment for many Social Security beneficiaries, especially those on a fixed income. These can be very important dollars and cents. If costs of living go up on an annual basis, then Social Security beneficiaries would be left with fewer dollars to purchase more expensive goods (and services) without the COLA increase. On a positive note, this COLA increase is welcome. Historically, there have been years without any COLA increase. That noted, at 1.5% the 2014 COLA is still less than the 1.7% COLA in 2013, which some regarded as too low. The math, as summarized by ElderLawAnswers, works out like this: Starting in January 2014, the average monthly Social Security retirement payment will rise from $1,275 to $1,294 a month for individuals and from $2,080 to $2,111 for couples. The 1.5 percent increase will apply to both elderly and disabled Social Security recipients, and individuals who receive both disability and retirement Social Security will see increases in both types of benefits. The maximum Social Security benefit for a worker retiring at full retirement age, which is age 66 for those born between 1943 and 1954, will be $2,642 a month. The good news is that it is not all bad news. While the SSA is seeing a lower COLA, it is worth noting that Medicare Part B will not be seeing an increase from the 2013 standard monthly premium of $104.90. In the end, then, for many beneficiaries 2014 might not be too unreasonable.

 

Reference: ElderLawAnswers (October 31, 2013) “Social Security Benefits to Rise Only 1.5 Percent in 2014”

For more information, see www.jerrryreiflawyer.com

 

MOPM – Managing Other People’s Money

Managing your own finances can be difficult at times. Whether you are smart with your own money is your call, as you will be the one to reap the rewards or suffer the consequences. Managing the finances of a loved one is a far more tenuous role to occupy.

If you are caring for an elderly loved one and stepping up to oversee their finances as well, then there are some important rules to know and follow.

Recently, the Consumer Financial Protection Bureau released four helpful guides on the topic of “Managing Someone Else’s Money.” In addition, for some short tips on the subject you can review the “4 rules for managing parents’ money,” a MarketWatch article released on Veterans Day.

The four tips – paraphrased – include:

1. Understand the power, meaning you have to understand what you can and cannot do under a power of attorney document.
2. Keep accounts separate, even if it can be a pain to moderate so many accounts, avoid the temptation to commingle funds that are not yours.
3. Document everything, even if it means doubling down on the bookkeeper.
4. Be watchful for exploitation by others, because being in charge of the finances does not mean you are the only one who exerts some financial control or influence. Those seeking to take financial advantage of the elderly include strangers and loved ones themselves.

In reality, there is much more to know and follow when managing other people’s money. Nevertheless, you certainly will be held to the basics. Remember to keep the CFPB guides and the MarketWatch article available for handy reference.

In truth there are many little rules for managing finances, but these are the basics that you need to accomplish to do the job. If there is time, you and your elderly loved one ought to plan now so you are prepared to fulfill your management role and the challenges ahead.Reference:

MarketWatch (November 11, 2013) “4 rules for managing parents’ money”

For more information, see www.jerryreiflawyer.com

Social Security Likes Diet COLA

According to the numbers recently released by the Social Security Administration, 2014 will be a “diet COLA” year. That means the Cost Of Living Adjustment (COLA) made to Social Security payments will only be a 1.5% increase. ElderLawAnswers weighed in on the news in an article titled “Social Security Benefits to Rise Only 1.5 Percent in 2014,” while the SSA has issued its own COLA Fact Sheet. The COLA is an important adjustment for many Social Security beneficiaries, especially those on a fixed income. These can be very important dollars and cents. If costs of living go up on an annual basis, then Social Security beneficiaries would be left with fewer dollars to purchase more expensive goods (and services) without the COLA increase. On a positive note, this COLA increase is welcome. Historically, there have been years without any COLA increase. That noted, at 1.5% the 2014 COLA is still less than the 1.7% COLA in 2013, which some regarded as too low. The math, as summarized by ElderLawAnswers, works out like this: Starting in January 2014, the average monthly Social Security retirement payment will rise from $1,275 to $1,294 a month for individuals and from $2,080 to $2,111 for couples. The 1.5 percent increase will apply to both elderly and disabled Social Security recipients, and individuals who receive both disability and retirement Social Security will see increases in both types of benefits. The maximum Social Security benefit for a worker retiring at full retirement age, which is age 66 for those born between 1943 and 1954, will be $2,642 a month. The good news is that it is not all bad news. While the SSA is seeing a lower COLA, it is worth noting that Medicare Part B will not be seeing an increase from the 2013 standard monthly premium of $104.90. In the end, then, for many beneficiaries 2014 might not be too unreasonable.

Reference: ElderLawAnswers (October 31, 2013) “Social Security Benefits to Rise Only 1.5 Percent in 2014”

For more informstion, see www.jerryreiflawyer.com

 

 

 

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Appealing Denial Of Medicare Treatment Saginaw, MI

Medicare Advantage plans can make certain decisions regarding their plans and what will be covered, as they should. After all, this discretion is what keeps them in business and from being “gamed” by scammers. That noted, the plans are not always right when exercising their discretion to deny doctor-prescribed treatments or procedures. If you (or a loved one) have a Medicare Advantage plan, then it is important to be prepared should the plan itself overrule your doctor and deny you coverage. That certainly would be an unfortunate turn of events! Fortunately, you can seek to overrule coverage denied by your Medicare Advantage plan, but you must know how. While you can be denied coverage, it is important to remember that the Medicare Advantage plan is not the final arbiter and you can appeal their decision. This is an important right built into the very structure of Medicare. A timely article in ElderLawAnswers.com titled “Appealing Medicare Advantage Plan Decisions” provided some insights into this process. Did you know that above every Medicare plan is the judicial oversight of an Administrative Law Judge (ALJ)? When the plan makes an adverse coverage decision, first you should appeal to their better judgment. If you are unsuccessful, then you can go over their heads and appeal to the ALJ. But wait, there is more. If you are unsuccessful before the ALJ, then go even higher to the Medicare Appeals Council (MAC). Be aware, however, that at this level the process becomes a matter of litigation and all that entails time and money. Nevertheless, litigation is sometimes a necessary evil to pursue necessary care (and justice). You may never need to challenge a denial of coverage. In case you do, however, it is best to be prepared and that means being well-informed regarding your rights.

Reference: ElderLawAnswers.com (last modified September 26, 2013) “Appealing Medicare Advantage Plan Decisions”

For more information, see www.jerryreiflawyer.com

 

 

Related articles

Appealing Denial Of Medicare Treatment in Virginia

Open Season On Medicare Enrollment Saginaw, MI

And so the race is off! That is to say, Medicare open enrollment period began as of October 15 and beneficiaries have until December 7 to find the right plan and sign up. Earlier is better, as in all such decisions, but all the same you (or your loved ones) should take great care in selecting a plan this year since it is no typical enrollment period. The trouble with this enrollment period is that it is more confusing than ever before. Medicare reform, the opening of Obamacare exchanges, and no small amount of political dysfunction have seeded misunderstanding and misinformation. Consequently, this environment has left the door wide open for elder abuse and Medicare scammers. If you (or your loved ones) are facing this confusion head-on, and perhaps for the first time, then it helps to have a new set of tips for the current year. Fortunately, Forbes lends a helping hand in a recent article titled “Tips For Medicare's Tricky Open Enrollment Season.” This also is a good time to bone up on the subject of Medicare, as local community seminars and informational hearings can be a great resource.

Reference: Forbes (October 14, 2013) “Tips For Medicare's Tricky Open Enrollment Season”

For more information, see www.jerryreiflawyer.com

 

 

Open Season On Medicare Enrollment Mid-Michigan

And so the race is off! That is to say, Medicare open enrollment period began as of October 15 and beneficiaries have until December 7 to find the right plan and sign up. Earlier is better, as in all such decisions, but all the same you (or your loved ones) should take great care in selecting a plan this year since it is no typical enrollment period. The trouble with this enrollment period is that it is more confusing than ever before. Medicare reform, the opening of Obamacare exchanges, and no small amount of political dysfunction have seeded misunderstanding and misinformation. Consequently, this environment has left the door wide open for elder abuse and Medicare scammers. If you (or your loved ones) are facing this confusion head-on, and perhaps for the first time, then it helps to have a new set of tips for the current year. Fortunately, Forbes lends a helping hand in a recent article titled “Tips For Medicare's Tricky Open Enrollment Season.” This also is a good time to bone up on the subject of Medicare, as local community seminars and informational hearings can be a great resource.

Reference: Forbes (October 14, 2013) “Tips For Medicare's Tricky Open Enrollment Season”

For more information, see www.jerryreiflawyer.com

 

Medicaid Eligibility When The “Community Spouse” Dies First Mid-Michigan

When one member of an elderly couple moves to a nursing home, even as a Medicaid beneficiary, proper estate planning must be done for both spouses. Failure to plan for the “community spouse” can have unintended consequences. It is not uncommon. One spouse, the institutional spouse, is in a nursing home and is qualified to receive Medicaid benefits to pay for their care. The other spouse, the community spouse, remains at home. Typically, the institutional spouse dies first, but not always. The issues arising when the community spouse dies first was the subject of a recent article in ElderLawAnswer.com titled “Staying Eligible for Medicaid after the Death of a Spouse.” When one spouse passes away, especially the one not receiving benefits, it affects the surviving spouse in many financial ways that can jeopardize the very benefits keeping them in the nursing home and receiving the care they need.

Reference: ElderLawAnswer.com (October 2013) “Staying Eligible for Medicaid after the Death of a Spouse”

For more information, see www.jerryreiflawyer.com

 

 

Alzheimer’s And Dementia – No Time Like The Present To Plan Saginaw, MI

Alzheimer’s and dementia are, more broadly, simply not “diseases” in the classic sense. They require a special sort of planning for both yourself and your loved ones. With most diseases, either the disease is cured or it is not. With Alzheimer’s and dementia, however, there is an actual change in the “person” affected and the disease can become destructive, personally and financially. The idea of planning ahead for the possibility of Alzheimer’s and dementia is an important one. In fact, CNBC recently explored the importance of early planning in an article titled “Create financial and legal plans to manage Alzheimer's.” Because the changes wrought by these diseases occurs in degrees, by the time the problem is known it is already too late to do anything about it, legally if not financially. Mental competency is one of those core requirements to creating a legally sound plan. When it is a close call, any plan made (even with trusted counsel) can just fall apart. For example, what if a family controversy develops over who manages the estate? Just as the best time to plant a tree is yesterday, the same holds true for making proper estate planning arrangements. You (or your elderly loved ones) will never have more mental capacity than you do today. The very real threat of Alzheimer’s and dementia provides an all-too-common and all-too-real reason to consider what may come while you still can.

Reference: CNBC (October 7, 2013) “Create financial and legal plans to manage Alzheimer's”

For more information, see www.jerryreiflawyer.com

 

 

Capital Gains, Gift, Charity, Estate Law, Estate Planning, Tax Law Saginaw, MI

If we live long enough, eventually we may require some form of care. That is just a fact of aging. However, with some planning in advance, we may have more options regarding where that care is given. Would you rather stay at home or be moved to an institution? If you would prefer to stay at home, then you are in good company. According to the AARP, 9 in 10 Americans say they want to grow old at home as long as possible. In-home care was the subject of a recent article in The Wall Street Journal titled “When to Consider In-Home Care.” Not everyone can find the appropriate in-home care, even while options are rapidly expanding. Depending upon the community and your needs (or the needs of your elderly loved ones), there are many creative ways to make your in-home care a reality. For example, doctors and nurses can make house calls, while personal care assistants can help with shopping, cooking, cleaning, etc. As needs increase, in-home care at the level of basic assisted-living or nursing home care can be found, and often at far less expense. None of these options come without consequences. As a result, it is worth understanding the attending challenges. Living at home, after all, will limit socialization. More to the point, if care is given directly by a family member, then there is the toll on their life and health, too. After you read the original article, spend some time looking into your own community. You might just find that your best option is more readily available than you thought. When it is all said and done, you just might be able to stay at home that much longer.

Reference: The Wall Street Journal (September 15, 2013) “When to Consider In-Home Care”

For more information, see www.jerryreiflawyer.com

 

 

The Power of a Power of Attorney Mid-Michigan

Few legal documents are more fundamental than a Power of Attorney (POA). In fact, every “legal” adult should have one. Like most legal tools, the POA can be tailored to fit nearly every need. The broadest POA is the “General Durable POA.” This gives the agent you appoint authority to do nearly every legal and financial act you can do for yourself, even when you are incapacitated. That is broad authority. In the wrong hands, it can be more than dangerous. Think of it as “legal dynamite.” In the right hands, it can be a blessing to you – and your loved ones. On the other hand, it is possible to grant limited or specific POA authority. For example, you can limit the duration the POA is effective and even the specific acts you authorize. This can provide a degree of safety when you don’t want to grant open-ended authority. Practically speaking, senior loved ones oftentimes have IRA accounts that need ongoing management and from which minimum required distributions must be taken. If these loved ones become infirm or develop cognitive issues, then their IRA accounts will need to be managed and administered for them. The Slott Report explored this legal and financial fact of life in a recent article titled “Using a Power of Attorney for an IRA.” One if the key take-a-ways from the article is that not all IRA custodians will treat various POAs the same. In addition to appointing the right agent for your POA and selecting the right type of POA, be sure to confirm that your POA will be accepted by the third parties that will be asked to honor it. In this case, an ounce of prevention is worth more than a pound of cure.

Reference: The Slott Report (March 26, 2013) “Using a Power of Attorney for an IRA”

For more information, see www.jerryreiflawyer.com

 

 

Medicaid Eligibility When The “Community Spouse” Dies First Saginaw, MI

When one member of an elderly couple moves to a nursing home, even as a Medicaid beneficiary, proper estate planning must be done for both spouses. Failure to plan for the “community spouse” can have unintended consequences. It is not uncommon. One spouse, the institutional spouse, is in a nursing home and is qualified to receive Medicaid benefits to pay for their care. The other spouse, the community spouse, remains at home. Typically, the institutional spouse dies first, but not always. The issues arising when the community spouse dies first was the subject of a recent article in ElderLawAnswer.com titled “Staying Eligible for Medicaid after the Death of a Spouse.” When one spouse passes away, especially the one not receiving benefits, it affects the surviving spouse in many financial ways that can jeopardize the very benefits keeping them in the nursing home and receiving the care they need.

Reference: ElderLawAnswer.com (October 2013) “Staying Eligible for Medicaid after the Death of a Spouse”

For more information, see www.jerryreiflawyer.com

 

 

The Power of a Power of Attorney Saginaw, MI

Few legal documents are more fundamental than a Power of Attorney (POA). In fact, every “legal” adult should have one. Like most legal tools, the POA can be tailored to fit nearly every need. The broadest POA is the “General Durable POA.” This gives the agent you appoint authority to do nearly every legal and financial act you can do for yourself, even when you are incapacitated. That is broad authority. In the wrong hands, it can be more than dangerous. Think of it as “legal dynamite.” In the right hands, it can be a blessing to you – and your loved ones. On the other hand, it is possible to grant limited or specific POA authority. For example, you can limit the duration the POA is effective and even the specific acts you authorize. This can provide a degree of safety when you don’t want to grant open-ended authority. Practically speaking, senior loved ones oftentimes have IRA accounts that need ongoing management and from which minimum required distributions must be taken. If these loved ones become infirm or develop cognitive issues, then their IRA accounts will need to be managed and administered for them. The Slott Report explored this legal and financial fact of life in a recent article titled “Using a Power of Attorney for an IRA.” One if the key take-a-ways from the article is that not all IRA custodians will treat various POAs the same. In addition to appointing the right agent for your POA and selecting the right type of POA, be sure to confirm that your POA will be accepted by the third parties that will be asked to honor it. In this case, an ounce of prevention is worth more than a pound of cure.

Reference: The Slott Report (March 26, 2013) “Using a Power of Attorney for an IRA”

For more information, see www.jerryreiflawyer.com

 

 

Avoiding Medicare “Marketplace Plans” Confusion Saginaw, MI

Healthcare is confusing. For elderly on Medicare, a new law will make sure they are not sold unnecessary “marketplace” coverage. You may want to alert your elderly loved ones to beware. Kaiser Health News recently addressed this concern in an article titled “Selling Marketplace Plans To Medicare Beneficiaries Will Be Illegal.” Problem: Medicare Part A is free for most beneficiaries and goes toward hospitalization and limited nursing home care. Since this fulfills the insurance requirements set by law, those on Medicare do not need anything in addition. For some 20-odd years it has been illegal for private insurers to try and sell their plans to individuals known to be Medicare recipients. This is the result of an effort to keep insurers from taking advantage of Medicare recipients. Of course, Medicare recipients are not prevented from purchasing marketplace coverage, which is part of the difficulty. The Medicare enrollment period starts next month and runs from October 15 to December 7. Coincidentally, the first healthcare marketplaces (the “exchanges”) will also start selling online next month with the requirement for such plans to become effective as of the beginning of 2014. Seniors need to know the difference between Medicare “enrollment” and marketplace purchasing. Unfortunately, the timing of the two is not helping matters. Bottom line: Medicare recipients should not buy on the marketplace what they get by enrollment all because of a mix-up. Hopefully, the legal penalties will scare off those insurance sellers who might try to confuse seniors.

Reference: Kaiser Health News (September 13, 2013) “Selling Marketplace Plans To Medicare Beneficiaries Will Be Illegal”

For more information, see www.jerryreiflawyer.com

 

 

When There’s No One To Bat For You (Health Care Agents) Saginaw, MI

Truly, it is a blessing to have a family to share life with you. That fact is no clearer should the time come to make life-and-death health decisions on your behalf. But what if you have no “family” to name as your healthcare proxy or as the agent on your power of attorney? The New Old Age blog of The New York Times recently took up the question of “When There’s No Family.” This is an especially difficult problem for many seniors. They oftentimes need someone to wield a power of attorney and even a medical directive to go to bat in their interests with medical staff, not to mention settling aspects of the estate. While there are close friends for many seniors even in lieu of family, it is still not uncommon to be without even these. According to the American Bar Association’s Commission on Law and Aging, “perhaps 4 percent of older adults are ‘the unbefriended elderly,’ a chilling phrase referring to those who cannot make decisions for themselves, have no advance directive or surrogate decision maker, and have no family or friends able to assist.” Unfortunately, there are few easy solutions. Even engaging a professional to serve in such capacities can be a difficult road, too. The professional will be bound to certain standards and difficult legal requirements. In addition, not everyone can serve in this capacity, especially the medical staff an elderly person may have come to befriend and rely upon. Fortunately, solutions are emerging -- like the notion of a “care community” of elderly individuals looking after one another, financially, medically and often legally. Whether such a solution is open to you, it is still absolutely vital to have robust advanced directives concerning end-of-life decisions. Make sure you have appointed someone you know and trust to speak for you and do for you when you cannot. The importance of having your end-of-life wishes committed to writing cannot be overemphasized.

Reference: The New York Times – The New Old Age (September 23, 2013) “When There’s No Family”

For more information, see www.jerryreiflawyer.com

 

 

Roth IRA Power Saginaw, MI

For the uninitiated, the Roth IRA can be a rather strange creature when it comes to retirement accounts. On the other hand, even the initiated might benefit from a brief refresher on all the perks of the venerable Roth IRA. A recent Kiplinger’s article, titled “Why You Should Open a Roth IRA,” makes the case for understanding this savvy retirement tool. Essentially, the Roth IRA is the inverse of the regular, plain-vanilla IRA. The latter is all about taxation, which is deferred until the time you take distributions voluntarily or involuntarily when you are required to take “Required Minimum Distributions” (RMDs). Conversely, Roth IRAs make you pay the tax upfront, but then let them grow without taxation thereafter. In fact, after this upfront tax on the initial investment, no income taxes will be owed thereafter. Roth IRAs offer a very specific benefit when it comes to estate planning. Clearly, eliminating those pesky RMDs and future income taxation altogether can help you preserve assets for yourself now and your heirs later.

Reference: Kiplinger (September edition, 2013) “Why You Should Open a Roth IRA

For more information, see www.jerryreiflawyer.com

 

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Roth IRA - An Estate Planning Tool? Saginaw, Michigan

Foreign Retirements Attract FATCA Scrutiny

Some retirees are happy to grow old in place and in their family homes. Other retirees, however, seek to a change of scenery, exotic climates, and living out their days in foreign countries. Unfortunately, a “foreign” retirement may attract troubling scrutiny from the IRS, and its vice grips are certain to dig deeper with the implementation of FATCA. According to a recent Bloomberg article titled “Foreign Retirement Plans Seen Scrutinized in U.S. Effort: Taxes,” FATCA, or the Foreign Account Tax Compliance Act, is a 2010 law set to crack down on foreign accounts held either intentionally or otherwise to elude U.S. taxation. While it has been a surprisingly effective initiative, FATCA also has caused some unintentional headaches for some unintentional targets. Banking in various parts of the world has already felt some sting. Foreign banks (notably Swiss banks) have been bogged down with FATCA regulations and some have taken it out on Americans abroad. If you have been thinking of retiring to foreign shores for some time, then you might be familiar with FATCA. However, as the Bloomberg article notes, the scrutiny attending FATCA is about to reach out into retirement accounts. Retirement accounts are, generally, designed to be exempt. Nevertheless, the problem is intervening international laws, government-to-government agreements, and ensuring that your foreign retirement does not fall within the sights of FATCA. Instead, you need to ensure that your retirement finds its rightful exemption. This is a developing issue. If you are or may be affected, then it is essential that you stay informed.

Reference: Bloomberg (August 28, 2013) “Foreign Retirement Plans Seen Scrutinized in U.S. Effort: Taxes”

For more information, see www.jerryreiflawyer.com

 

Roth IRA Power Mid-MIchigan

For the uninitiated, the Roth IRA can be a rather strange creature when it comes to retirement accounts. On the other hand, even the initiated might benefit from a brief refresher on all the perks of the venerable Roth IRA. A recent Kiplinger’s article, titled “Why You Should Open a Roth IRA,” makes the case for understanding this savvy retirement tool. Essentially, the Roth IRA is the inverse of the regular, plain-vanilla IRA. The latter is all about taxation, which is deferred until the time you take distributions voluntarily or involuntarily when you are required to take “Required Minimum Distributions” (RMDs). Conversely, Roth IRAs make you pay the tax upfront, but then let them grow without taxation thereafter. In fact, after this upfront tax on the initial investment, no income taxes will be owed thereafter. Roth IRAs offer a very specific benefit when it comes to estate planning. Clearly, eliminating those pesky RMDs and future income taxation altogether can help you preserve assets for yourself now and your heirs later.

Reference: Kiplinger (September edition, 2013) “Why You Should Open a Roth IRA

For more information, see www.jerryreiflawyer.com

 

When It Is Time To Return Home From The Nursing Home Mid-Michigan

When an elderly loved one falls, or is otherwise injured, it can spark a few rough transitions: car from home to hospital for care, and from hospital to nursing home to recover. However, one of the most difficult transitions can be returning home from the nursing home, even after your elderly loved one no longer needs to be there. Every state is different, but most states sponsor a special Medicaid program paid for by federal dollars that allows a senior to transition all the way back home to receive their care there. The program is called Money Follows the Person. For a firsthand account, read a recent Kaiser Health News article titled “Moving People Home After Nursing Home Stay Is Complicated.” It is the story of Dorothy Holmes who was able to return to her home with the help of Massachusetts Medicaid. Although the Holmes story and the details of the program highlighted are specific to Massachusetts, some 45 states have adopted similar such programs. The common key is that the programs identify Medicaid patients who are and have been in nursing homes for at least 90 days, but simply no longer need to be there. Consequently, these programs help them transition home and continue the Medicaid payments for their care. Not only is there a strong legal reason and ethical motive behind helping people return home, but it makes good sense in terms of dollars and cents, too. It is less expensive to provide home care than it is institutional care. Therefore, the program is a win-win for all involved. If you have a loved one in this position, then it is worth exploring your options. Transitioning home from a nursing home can be tricky, especially since you do not want to lose the nursing home benefits just because you do not need to be in a nursing home setting. This program, if available, may find your loved one on its own or it might be something to proactively contact directly. For that matter, too, it is worth noting that there may be other options for many patients. In many instances it is merely a matter of finding and figuring them out.

Reference: The Kaiser Health News (August 16, 2013) “Moving People Home After Nursing Home Stay Is Complicated”

For more information, see www.jerryreiflawyer.com

 

 

 

When There’s No One To Bat For You (Health Care Agents) Saginaw, MI

Truly, it is a blessing to have a family to share life with you. That fact is no clearer should the time come to make life-and-death health decisions on your behalf. But what if you have no “family” to name as your healthcare proxy or as the agent on your power of attorney? The New Old Age blog of The New York Times recently took up the question of “When There’s No Family.” This is an especially difficult problem for many seniors. They oftentimes need someone to wield a power of attorney and even a medical directive to go to bat in their interests with medical staff, not to mention settling aspects of the estate. While there are close friends for many seniors even in lieu of family, it is still not uncommon to be without even these. According to the American Bar Association’s Commission on Law and Aging, “perhaps 4 percent of older adults are ‘the unbefriended elderly,’ a chilling phrase referring to those who cannot make decisions for themselves, have no advance directive or surrogate decision maker, and have no family or friends able to assist.” Unfortunately, there are few easy solutions. Even engaging a professional to serve in such capacities can be a difficult road, too. The professional will be bound to certain standards and difficult legal requirements. In addition, not everyone can serve in this capacity, especially the medical staff an elderly person may have come to befriend and rely upon. Fortunately, solutions are emerging -- like the notion of a “care community” of elderly individuals looking after one another, financially, medically and often legally. Whether such a solution is open to you, it is still absolutely vital to have robust advanced directives concerning end-of-life decisions. Make sure you have appointed someone you know and trust to speak for you and do for you when you cannot. The importance of having your end-of-life wishes committed to writing cannot be overemphasized.

Reference: The New York Times – The New Old Age (September 23, 2013) “When There’s No Family”

For more information, see www.jerryreiflawyer.com

 

 

When It Is Time To Return Home From The Nursing Home

When an elderly loved one falls, or is otherwise injured, it can spark a few rough transitions: car from home to hospital for care, and from hospital to nursing home to recover. However, one of the most difficult transitions can be returning home from the nursing home, even after your elderly loved one no longer needs to be there. Every state is different, but most states sponsor a special Medicaid program paid for by federal dollars that allows a senior to transition all the way back home to receive their care there. The program is called Money Follows the Person. For a firsthand account, read a recent Kaiser Health News article titled “Moving People Home After Nursing Home Stay Is Complicated.” It is the story of Dorothy Holmes who was able to return to her home with the help of Massachusetts Medicaid. Although the Holmes story and the details of the program highlighted are specific to Massachusetts, some 45 states have adopted similar such programs. The common key is that the programs identify Medicaid patients who are and have been in nursing homes for at least 90 days, but simply no longer need to be there. Consequently, these programs help them transition home and continue the Medicaid payments for their care. Not only is there a strong legal reason and ethical motive behind helping people return home, but it makes good sense in terms of dollars and cents, too. It is less expensive to provide home care than it is institutional care. Therefore, the program is a win-win for all involved. If you have a loved one in this position, then it is worth exploring your options. Transitioning home from a nursing home can be tricky, especially since you do not want to lose the nursing home benefits just because you do not need to be in a nursing home setting. This program, if available, may find your loved one on its own or it might be something to proactively contact directly. For that matter, too, it is worth noting that there may be other options for many patients. In many instances it is merely a matter of finding and figuring them out.

Reference: The Kaiser Health News (August 16, 2013) “Moving People Home After Nursing Home Stay Is Complicated”

For more information, see www.jerryreiflawyer.com

 

 

So, What Will Be Your Legacy? Mid-Michigan

Sometimes it can be easy to see the trees, but miss the forest. This is true when it comes to planning for your estate. You can get mired in the tax laws, the tricks and the tools, and even some petty family squabbling. Then again, there are those planners who find direction in an old axiom: “Don’t just leave an estate. Leave a legacy.” An estate is just so much stuff, figuratively or literally. However, a legacy is so much more. Whether a beloved memory or even a contribution to those around you. Usually, we seek to leave behind an estate for the good of our family, and we work to protect this gift from what problems may lie in wait. When you are considering this notion of your “legacy,” take time to think through what you are trying to achieve. So how do work out your legacy? Fortunately, a recent article in Forbes titled “4 Smart Ways To Leave A Legacy” can help get you started. Certainly, there is no one way to leave a legacy, or even a single way to guarantee it. In the end, it is your call when it comes to the legacy you wish to leave.

Reference: Forbes (August 1, 2013) “4 Smart Ways To Leave A Legacy”

For more information, see www.jerryreiflawyer.com

 

When Baby Boomer Retirees Inherit Mid-Michigan

Some people are just too young to be receiving inheritances. After all, a young person might not know what to do with it. Of course, young inheritors are not the only ones who cannot handle a sudden inheritance. Can you say “baby boomers”? The baby boomer generation is set to receive unprecedented inheritances in the coming years. Do baby boomers and retirees know what to do with their inheritances? Not always, but there is time to learn. The subject of inheritance in retirement was considered in a recent MarketWatch article titled “When retirees inherit; tips for newfound wealth.” The article provides some basic pointers to get you started. For the most part, this issue is simply a case of social reversal. Historically, retirees and inheritors have historically held very separate roles. Retirees planned inheritances for their inheritors, but they were not themselves inheritors! With age and population groups moving through time as they are today, baby boomers are about to receive the greatest generational wealth transfer in recent history. The essential nugget of wisdom to glean from the original article, however, is to force yourself to a calm moment and some further planning. Retirees have less time to make the best of an inheritance. Nevertheless, many retirees are facing some very difficult financial decisions themselves. Long-term care and future health care costs are good for starters. Using the inheritance correctly and wisely is the key. So, if you are only holding the inheritance for a short time yourself, what does that mean for your existing estate plans? This unprecedented wealth transfer has the potential to be a blessing or a curse. Are you ready?

Reference: MarketWatch (July 16, 2013) “When retirees inherit; tips for newfound wealth”

For more information, see www.jerryreiflawyer.com

 

When It Is Time To Return Home From The Nursing Home Saginaw, MI

When an elderly loved one falls, or is otherwise injured, it can spark a few rough transitions: car from home to hospital for care, and from hospital to nursing home to recover. However, one of the most difficult transitions can be returning home from the nursing home, even after your elderly loved one no longer needs to be there. Every state is different, but most states sponsor a special Medicaid program paid for by federal dollars that allows a senior to transition all the way back home to receive their care there. The program is called Money Follows the Person. For a firsthand account, read a recent Kaiser Health News article titled “Moving People Home After Nursing Home Stay Is Complicated.” It is the story of Dorothy Holmes who was able to return to her home with the help of Massachusetts Medicaid. Although the Holmes story and the details of the program highlighted are specific to Massachusetts, some 45 states have adopted similar such programs. The common key is that the programs identify Medicaid patients who are and have been in nursing homes for at least 90 days, but simply no longer need to be there. Consequently, these programs help them transition home and continue the Medicaid payments for their care. Not only is there a strong legal reason and ethical motive behind helping people return home, but it makes good sense in terms of dollars and cents, too. It is less expensive to provide home care than it is institutional care. Therefore, the program is a win-win for all involved. If you have a loved one in this position, then it is worth exploring your options. Transitioning home from a nursing home can be tricky, especially since you do not want to lose the nursing home benefits just because you do not need to be in a nursing home setting. This program, if available, may find your loved one on its own or it might be something to proactively contact directly. For that matter, too, it is worth noting that there may be other options for many patients. In many instances it is merely a matter of finding and figuring them out.

Reference: The Kaiser Health News (August 16, 2013) “Moving People Home After Nursing Home Stay Is Complicated”

For more information, see www.jerryreiflawyer.com

 

 

Summer Vacation – Perfect Time For “The Conversation” Mid-Michigan

Many times the adult children have very important roles in the lives of their parents. These roles can range from hands-on caregiving to serving as agents or fiduciaries as part of their estate planning. One of the most difficult roles any adult child can play is as the “conversation starter” when it comes to the finances and estate plans of their parents. So, how do you get the conversation going? How do you initiate “the talk”? Actually, every family and family dynamic is different. It really is more of an art than a science. Two recent sources of guidance come to us from The Wall Street Journal in an article titled “Have 'The Talk' With Mom and Dad About Their Finances”, and from MarketWatch in an article titled “Estate planning at the beach house.” Both articles stress the need for respecting the dignity of aging parents and going slowly. In addition, talking about one’s own morbidity and mortality is not on anyone’s “top ten topics” for casual conversation. It is difficult enough aging, let alone realizing that your own children are “parenting” you. Nevertheless, one of the best and least threatening conversation “starters” is to share with your parents what you have done in your own estate planning and why. Be transparent with your parents. One conversation is often not enough; you have to keep the talk moving and ensure that everyone is on the same page and plans have been made.

Reference: MarketWatch (July 15, 2013) “Estate planning at the beach house”

The Wall Street Journal (July 14, 2013) “Have 'The Talk' With Mom and Dad About Their Finances”

For more information, see www.jerryreiflawyer.com

 

Beware Of State Estate And Inheritance Taxes, Too Saginaw, MI

When it comes to taxes, where you live means everything. In fact, simply stepping over into the next state can change everything. For those planning their estates, estate planning laws can be troublesome enough without the additional complexity of state estate and/or inheritance taxes. ElderLawAnswers recently considered this issue in an article titled “Have You Planned for State Estate and Inheritance Taxes?” If your state also has a level of estate or inheritance taxation, then the applicability of such taxes is yet another obstacle to overcome. Accordingly, you should plan for them just as you would for the federal estate tax. Note: the exemption amounts and tax rates may vary from the federal level (and in some states, they may even vary from person to person). Don’t have a state estate or inheritance tax to worry about? Even if your state does not have its own estate or inheritance taxes now, watch out! With many states facing budget shortfalls, taxing the estates and inheritances may be coming closer to home. In addition, when it comes to state estate and inheritance taxes you need to plan for the future. Know the tax laws of your current state and any state in which you may consider in the future. Bottom line: Be sure to plan for these unique state laws, even if the federal laws get all the press.

Reference: ElderLawAnswers (July 29, 2013) “Have You Planned for State Estate and Inheritance Taxes?”

For more information, see www.jerryreiflawyer.com

 

 

When Baby Boomer Retirees Inherit Saginaw, MI

Some people are just too young to be receiving inheritances. After all, a young person might not know what to do with it. Of course, young inheritors are not the only ones who cannot handle a sudden inheritance. Can you say “baby boomers”? The baby boomer generation is set to receive unprecedented inheritances in the coming years. Do baby boomers and retirees know what to do with their inheritances? Not always, but there is time to learn. The subject of inheritance in retirement was considered in a recent MarketWatch article titled “When retirees inherit; tips for newfound wealth.” The article provides some basic pointers to get you started. For the most part, this issue is simply a case of social reversal. Historically, retirees and inheritors have historically held very separate roles. Retirees planned inheritances for their inheritors, but they were not themselves inheritors! With age and population groups moving through time as they are today, baby boomers are about to receive the greatest generational wealth transfer in recent history. The essential nugget of wisdom to glean from the original article, however, is to force yourself to a calm moment and some further planning. Retirees have less time to make the best of an inheritance. Nevertheless, many retirees are facing some very difficult financial decisions themselves. Long-term care and future health care costs are good for starters. Using the inheritance correctly and wisely is the key. So, if you are only holding the inheritance for a short time yourself, what does that mean for your existing estate plans? This unprecedented wealth transfer has the potential to be a blessing or a curse. Are you ready?

Reference: MarketWatch (July 16, 2013) “When retirees inherit; tips for newfound wealth”

For more information, see www.jerryreiflawyer.com

 

When Baby Boomer Retirees Inherit

Some people are just too young to be receiving inheritances. After all, a young person might not know what to do with it. Of course, young inheritors are not the only ones who cannot handle a sudden inheritance. Can you say “baby boomers”? The baby boomer generation is set to receive unprecedented inheritances in the coming years. Do baby boomers and retirees know what to do with their inheritances? Not always, but there is time to learn. The subject of inheritance in retirement was considered in a recent MarketWatch article titled “When retirees inherit; tips for newfound wealth.” The article provides some basic pointers to get you started. For the most part, this issue is simply a case of social reversal. Historically, retirees and inheritors have historically held very separate roles. Retirees planned inheritances for their inheritors, but they were not themselves inheritors! With age and population groups moving through time as they are today, baby boomers are about to receive the greatest generational wealth transfer in recent history. The essential nugget of wisdom to glean from the original article, however, is to force yourself to a calm moment and some further planning. Retirees have less time to make the best of an inheritance. Nevertheless, many retirees are facing some very difficult financial decisions themselves. Long-term care and future health care costs are good for starters. Using the inheritance correctly and wisely is the key. So, if you are only holding the inheritance for a short time yourself, what does that mean for your existing estate plans? This unprecedented wealth transfer has the potential to be a blessing or a curse. Are you ready?

Reference: MarketWatch (July 16, 2013) “When retirees inherit; tips for newfound wealth”

For more information, see www.jerryreiflawyer.com

 

Summer Vacation – Perfect Time For “The Conversation” Saginaw, MI

Many times the adult children have very important roles in the lives of their parents. These roles can range from hands-on caregiving to serving as agents or fiduciaries as part of their estate planning. One of the most difficult roles any adult child can play is as the “conversation starter” when it comes to the finances and estate plans of their parents. So, how do you get the conversation going? How do you initiate “the talk”? Actually, every family and family dynamic is different. It really is more of an art than a science. Two recent sources of guidance come to us from The Wall Street Journal in an article titled “Have 'The Talk' With Mom and Dad About Their Finances”, and from MarketWatch in an article titled “Estate planning at the beach house.” Both articles stress the need for respecting the dignity of aging parents and going slowly. In addition, talking about one’s own morbidity and mortality is not on anyone’s “top ten topics” for casual conversation. It is difficult enough aging, let alone realizing that your own children are “parenting” you. Nevertheless, one of the best and least threatening conversation “starters” is to share with your parents what you have done in your own estate planning and why. Be transparent with your parents. One conversation is often not enough; you have to keep the talk moving and ensure that everyone is on the same page and plans have been made.

Reference: MarketWatch (July 15, 2013) “Estate planning at the beach house”

The Wall Street Journal (July 14, 2013) “Have 'The Talk' With Mom and Dad About Their Finances

    For more information, see www.jerryreiflawyer.com

 

Long-Term Care Insurance – Protection From Living Too Long Saginaw, MI

Planning for the golden years is about a lot of things, many of them being important “finally I get to …” moments. However, before you tackle that “bucket list,” be sure to nail down some important financial considerations. For example, how would you pay for long-term care if needed? Increasingly, one of the most important considerations is planning for the possibility and costs of long-term care. It is becoming the cornerstone of new later-in-life financial plans for many retiring and retired Americans. MarketWatch recently surveyed this concern in a article titled “Long-term care planning [is] too vital to ignore.” You see, the math is fairly simple. People are living longer and, therefore, so are their financial needs later-in-life. Meanwhile, healthcare is still disastrously expensive, especially at that life stage. As a result, if you only plan for your retirement and for your estate, but not also for your later-in-life and potentially long-term care needs, then you find yourself in financial jeopardy later. You could have more life left at the end of your money, to be blunt. As the title of the original article notes, including long-term care planning as part of your retirement planning is simply “too vital to ignore.”

Reference: MarketWatch (July 15, 2013) “Long-term care planning too vital to ignore”

For more information, see  www.jerryreiflawyer.com

 

Long-Term Care Insurance – Protection From Living Too Long Saginaw, MI

Planning for the golden years is about a lot of things, many of them being important “finally I get to …” moments. However, before you tackle that “bucket list,” be sure to nail down some important financial considerations. For example, how would you pay for long-term care if needed? Increasingly, one of the most important considerations is planning for the possibility and costs of long-term care. It is becoming the cornerstone of new later-in-life financial plans for many retiring and retired Americans. MarketWatch recently surveyed this concern in a article titled “Long-term care planning [is] too vital to ignore.” You see, the math is fairly simple. People are living longer and, therefore, so are their financial needs later-in-life. Meanwhile, healthcare is still disastrously expensive, especially at that life stage. As a result, if you only plan for your retirement and for your estate, but not also for your later-in-life and potentially long-term care needs, then you find yourself in financial jeopardy later. You could have more life left at the end of your money, to be blunt. As the title of the original article notes, including long-term care planning as part of your retirement planning is simply “too vital to ignore.”

Reference: MarketWatch (July 15, 2013) “Long-term care planning too vital to ignore”

For more information, see www.jerryreiflawyer.com

 

Income, Not Assets, Determine Obamacare Subsidies Saginaw, MI

The Affordable Care Act (ACA), also known as Obamacare, is now just beginning to take effect. If you have not heard, there still are many questions to ask and problems to resolve. The states have their own part to play under the ACA (and may delay putting certain changes into effect until 2015). Closer to home, there is still the matter of how it affects you, the individual, and how you and your family can plan for your health insurance under the law. Kaiser Health News provided some important insights as part of a Q&A entitled, importantly, “Income -- Not Assets -- Will Determine Subsidies In Online Insurance Marketplaces.” Indeed, the perennial problem many retirees and elderly Americans face is having more assets “on paper” than they do in terms of spendable income. That only makes sense because you planned to have a nest egg sustain your retirement. Now that you have that nest egg, you draw from it only what you need. As far as ACA is concerned, it is important to know that ACA requires health insurance and will soften the blow with subsidized insurances (when purchased via a health insurance exchange). The government subsidies are not based on your assets, but only on your income. As a result, anything you earn from the stocks you own, for example, is still income. However, assets in IRAs or plain old bank accounts will not count against you in terms of insurance. In other words, the nest egg is not meant to be threatened by the health insurance requirement.

Reference: Kaiser Health News (July 2, 2013) “Income -- Not Assets -- Will Determine Subsidies In Online Insurance Marketplaces”

For more information, see www.jerryreiflawyer.com

 

Income, Not Assets, Determine Obamacare Subsidies Great Lakes Bay Region, MI

The Affordable Care Act (ACA), also known as Obamacare, is now just beginning to take effect. If you have not heard, there still are many questions to ask and problems to resolve. The states have their own part to play under the ACA (and may delay putting certain changes into effect until 2015). Closer to home, there is still the matter of how it affects you, the individual, and how you and your family can plan for your health insurance under the law. Kaiser Health News provided some important insights as part of a Q&A entitled, importantly, “Income -- Not Assets -- Will Determine Subsidies In Online Insurance Marketplaces.” Indeed, the perennial problem many retirees and elderly Americans face is having more assets “on paper” than they do in terms of spendable income. That only makes sense because you planned to have a nest egg sustain your retirement. Now that you have that nest egg, you draw from it only what you need. As far as ACA is concerned, it is important to know that ACA requires health insurance and will soften the blow with subsidized insurances (when purchased via a health insurance exchange). The government subsidies are not based on your assets, but only on your income. As a result, anything you earn from the stocks you own, for example, is still income. However, assets in IRAs or plain old bank accounts will not count against you in terms of insurance. In other words, the nest egg is not meant to be threatened by the health insurance requirement.

Reference: Kaiser Health News (July 2, 2013) “Income -- Not Assets -- Will Determine Subsidies In Online Insurance Marketplaces”

For more information, see www.jerryreiflawyer.com

 

Dementia – Plan Now To Avoid Problems Later Saginaw, MI

Dementia is not really a disease in the classical sense. There is no healthy one minute, then sick the next progression. No, dementia is just a slow and barely perceptible decline. Unfortunately, decline is hard to understand. So, when is an individual in decline and when are financial decisions still safe? A recent Forbes article titled “Aging Parents, Dementia And Financial Decisions: What Is Safe?” chronicles the story of one family and family business against the backdrop of dementia and decline. In truth, there is no real test because dementia and financial choices simply do not avail themselves to conclusive testing. That said, it is essential that family members be steadily involved, understanding, and concerned. “Mara” in the original article is a perfect example. Because Mara was involved, understanding and concerned, she was able to spot the “signs” of dementia before her mother lost the family business and estate due to poor decisions, increasing confusion and perhaps even those willing to take advantage of the situation. In the end, Mara not only had to spot the signs, she also had to get the help and coordination of a doctor to step in and assist. Much stress and strain resulting from dementia later on can be preemptively eliminated by proper legal planning right now. Be sure to consult with qualified legal counsel to ensure that you, your loved ones and your assets are protected.

Reference: Forbes (June 26, 2013) “Aging Parents, Dementia And Financial Decisions: What Is Safe?”

For more information, seee www.jerryreiflawyer.com

 

I Am Betting on the Wife Saginaw, MI

In a sense, buying insurance is always about playing the odds. Traditionally, when the husband was the primary breadwinner, life insurance was taken out on his life. The tables are reversed, however, when it comes to long-term care insurance. What if a married couple can only afford coverage for one spouse? ElderLawAnswers.com recently took up this topic and weighed in on this question: “Which Spouse Should Get Long-Term Care Insurance Coverage?” In brief, women tend to live longer and therefore require more care. While it is far from a sure thing, a married couple might be best served by providing long-term care insurance for the wife who also is most likely to be the surviving spouse. Granted, the facts of relative longevity are quite familiar to insurance companies these days and women often require higher premiums, so the cost-benefit analysis begins. Then again, many more companies are working to offer coverage options to work for both spouses. You can find a great deal of options, if you just look around the market. On the other hand, statistics do peak volumes.

Reference: ElderLawAnswers.com (modified June 11, 2013) “Which Spouse Should Get Long-Term Care Insurance Coverage?”

For more information, see www.jerryreiflawyer.com

 

Joint Ownership Risks Great Lakes Bay Region, Saginaw, MI

“Ownership” can be a tricky concept. It should come as no surprise that “joint ownership” is often doubly tricky. A recent article in Forbes reviews some of “The Perils Of Joint Ownership.” Having two people named as owners, legally dubbed “joint tenants with right of survivorship,” or “joint tenancy” for short, is quite common amongst the elderly and families after transition. Unfortunately, unless the joint owners are spouses (the most common form of joint ownership by far) it can quickly become a problematic scenario. Imagine: homes, bank accounts, and other common assets being controlled by two independent minds with independent agendas. The original article has a few examples, but an all-too-common scenario is the older relative and a younger relative owning the assets of the older relative in joint tenancy. If and when the younger relative realizes that he or she has the power to use and enjoy the joint assets, then problems are not far behind. What are some concrete concerns? The original article fleshes out three: 1. Once a person’s name is added to the title of property, it can be undone only with his or her consent. 2. Property held in joint tenancy is immediately subject to claims of each joint tenant’s creditors. 3. Joint tenancy can produce unintended results. Sometimes joint tenancy is a valid option, and even a quite beneficial one. That noted, there are other safer alternative means to reach the same ends.

Reference: Forbes (June 14, 2013) “The Perils Of Joint Ownership”

For more information, see www.jerryreiflawyer.com

 

Related articles

The Perils of Joint Tenancy Saginaw, Michigan

Managing Finances for Your Parents Saginaw, MI

Families are dynamic, never static. We start out as children, but may live long enough to parent to our parents. It is a fact of life, especially when it comes to finances. The key to an effective transition, while preserving the dignity of all involved, is communication. A recent article in CNBC recently offered advice to adult children and their elderly parents. The article titled “When Adult Children Become Financial Caregivers” suggested six steps. While you can read the original article for the detail, the steps are as follows: 1. Knowing the Right Time to Talk 2. Framing a Sensitive Subject 3. Building Trust 4. Sibling Responsibilities 5. Maximizing Efficiency 6. Maximizing Inherited IRA The basic principle to bear in mind is that both the elderly parents and the adult children have to assume and understand their roles. This is key for a family transition to move gracefully. This means communication, not only between parents and adult children, but likewise between adult children working together on behalf of the family as a whole. Naturally, this is all easier said than done. In truth, there are any number of principles and rules for this transition, but the six from the original article certainly are a helpful start.

Reference: CNBC (June 3, 2013) “When Adult Children Become Financial Caregivers”

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Joint Ownership Risks Saginaw MI

“Ownership” can be a tricky concept. It should come as no surprise that “joint ownership” is often doubly tricky.

A recent article in Forbes reviews some of “The Perils Of Joint Ownership.”

Having two people named as owners, legally dubbed “joint tenants with right of survivorship,” or “joint tenancy” for short, is quite common amongst the elderly and families after transition. Unfortunately, unless the joint owners are spouses (the most common form of joint ownership by far) it can quickly become a problematic scenario.

Imagine: homes, bank accounts, and other common assets being controlled by two independent minds with independent agendas. The original article has a few examples, but an all-too-common scenario is the older relative and a younger relative owning the assets of the older relative in joint tenancy. If and when the younger relative realizes that he or she has the power to use and enjoy the joint assets, then problems are not far behind.

What are some concrete concerns? The original article fleshes out three:

1. Once a person’s name is added to the title of property, it can be undone only with his or her consent. 
2. Property held in joint tenancy is immediately subject to claims of each joint tenant’s creditors. 
3. Joint tenancy can produce unintended results.

Sometimes joint tenancy is a valid option, and even a quite beneficial one. That noted, there are other safer alternative means to reach the same ends. 

Reference: Forbes (June 14, 2013) “The Perils Of Joint Ownership”

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When is Charitable Giving Elder Abuse?

Have you read about the matter of the late Huguette Clark, her massive inheritance, and the hospital that may or may not have exerted undue influence on her aging mind and bank accounts? Ms. Clark was fantastically wealthy. During the last twenty years of her life, the reclusive copper heiress spent an absolutely inordinate amount of time in the hospital. She had few afflictions other than loneliness. After her passing, it did not take long for questions to arise regarding how the hospital pushed to care for a not-so-infirm woman for so long and just so happened to be receiving sizable donations from her all the while. What may be worse is that the allegations may be true and there are some interesting, perhaps damning, tidbits. This scenario and the questions it raises were reported recently in The New York Times in an article titled “Hospital Caring for an Heiress Pressed Her to Give Lavishly.” The article chronicles the last lonely years on Ms. Clark’s life. Remember, she was only all-too-human. If manipulation was afoot, what should be done about it and, closer to home, how can such manipulation be prevented in our own estates or those of our already senior loved ones? But then there is the reverse side of the coin: what if it was not manipulation at all? Then Ms. Clark’s wishes and last charitable actions are being drawn through the mud for not having been fully articulated.

Reference: The New York Times (May 29, 2013) “Hospital Caring for an Heiress Pressed Her to Give

Lavishly”

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Costly Conversations Never Had Saginaw, MI

Some conversations just need to happen, but that doesn’t make them any easier. When it comes to our elderly parents there are many such difficult conversations. The New York Times offers one more real life example of why difficult senior parent-adult child conversation just have to happen in a recent article titled “The Talk You Didn’t Have With Your Parents Could Cost You”. Especially with the older generations, money is often one of those taboo subjects for the family to discuss, whether in good fortune or in bad. If you have an elderly parent or loved one, then there are more important things at stake than privacy, modesty or pride. Here are some things you need to know and they need to show. Do they have an “estate,” whether many assets or few? Do they have a will and, if yes, where is it? And perhaps most important, are they taking care of their finances currently? The original article speaks for itself and is worthy of reading. After you read it, perhaps you might share it as a conversation starter with someone you love. Having the uncomfortable conversations can provide peace of mind for all concerned.

Reference: The New York Times (May 24, 2013) “The Talk You Didn’t Have With Your Parents Could Cost You”

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Watch Your Language – End-Of-Life Health Care Great Lakes Bay Region, MI

Words are important. Use them carefully, especially when preparing your estate planning documents. When it comes to your health care directives, the words you choose can be a matter of life and death. A recent post over at The New Old Age Blog in “DNR by Another Name” illustrates the importance of words and their legal import. It is worth reading the original article (and perhaps even the study it discusses). Consider this: how a doctor presents a medical choice can lead a caregiver or patient in one direction or the other. For example, as taken from the title of the article, DNR, or “Do Not Resuscitate” is a medical term of art. However, it often means the same as “please allow for a natural death” depending upon the medical situation, the decisions of the patient, and even (or often exclusively) the very word choices and/or mood of the doctor themselves. As one planning your own late-in-life decisions, language is a topic worthy of your careful consideration. Additionally, if you are caring for an elderly loved one, then be sure both of you understand your loved one’s advance health care wishes and take steps to clearly articulate them in proper medical directives. Do not assume anything when it comes to the ultimate health care decisions. Make sure the patient, their appointed health care agent and the physician are all speaking the same language. Communication and documentation are essential.

Reference: The New Old Age Blog – The New York Times (May 22, 2013) “DNR by Another Name”

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Family Dynamics Can Derail Key Family Conversations Saginaw, MI

Bad communication leads to bad relationships. No truer words have been spoken, especially when it comes to families caring for elderly parents. For many families, communication has never been easy. For other families, it has never been an issue. What about your family? Is it time for a family meeting, or a family huddle, or one serious conversation – whatever you choose to call it – about your elderly parents, their finances and their estate planning? If yes, how do you go about having “the talk” successfully? How to first assemble and then discuss productively is an age-old problem for families with elder parents. In the end, there is no real one-size-fits-all solution, as people are different and families are complex. Fortunately, there are some basic principles worth noting as reviewed in a recent article in The Wall Street Journal titled “When It's Time to Huddle.” If you do not have time to read the original article, here are the bullet points to ponder: • Be Inclusive, • Don’t Delay, • Hire a Professional Referee, • Set an Agenda in Advance, and • Tap Long-Distance Relatives. Think your family does, in fact, communicate well? That may be so, but there are still all the reasons in the world to get this conversation right.

Reference: The Wall Street Journal (May 10, 2013) “When It's Time to Huddle”

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Promissory Notes and Medicaid Qualification Saginaw, MI

Medicaid can mean a world of difference when it comes to ensuring proper care for your elderly loved ones, especially when they are running out of assets. When their major remaining “countable” asset is an illiquid asset, what are their options short of depleting it or risking a fraudulent transfer? As you may well know, Medicaid is the source of nursing home care for many indigent Americans. Still others are caught in a netherworld of being above the minimum asset threshold for qualification, but having too few assets to realistically pay for their care. It’s a sticky situation. A promissory note may be one alternative to explore, as noted in a recent article at ElderLawAnswers.com titled “How Can Promissory Notes Be Used in Medicaid Planning?” The focus of the article is a recent federal case out of Oklahoma, but the basics apply generally. Essentially, an elderly woman transferred her farm and accounts to her son in exchange for a promissory note. A note is a legally binding contract to repay as fixed sum and so it clears the Medicaid hurdle in question. In this instance, this approach indeed saved the farm and the elderly woman received her nursing home care through Medicaid. Nevertheless, a promissory note is not a full-proof plan. For one, many states reject the idea and refuse to recognize promissory notes. For another, the plan can only work because promissory notes are legally binding contracts, and so if the note cannot be repaid there are potential tax burdens that may be triggered. The article also points out there are several tools, like the promissory note, that can prove useful when seeking legitimate Medicaid qualification. This especially is true if you plan well in advance. Danger! The Medicaid qualification rules vary from state to state. This is not a self-help project, as you may find yourself (and your elderly loved one) in a tricky financial and legal purgatory if you make any missteps.

Reference: ElderLawAnswers (May 15, 2013) “How Can Promissory Notes Be Used in Medicaid Planning?”

For more information, see www.jerryreiflawyer.com

 

Watch Your Language – End-Of-Life Health Care Saginaw, MI

Words are important. Use them carefully, especially when preparing your estate planning documents. When it comes to your health care directives, the words you choose can be a matter of life and death. A recent post over at The New Old Age Blog in “DNR by Another Name” illustrates the importance of words and their legal import. It is worth reading the original article (and perhaps even the study it discusses). Consider this: how a doctor presents a medical choice can lead a caregiver or patient in one direction or the other. For example, as taken from the title of the article, DNR, or “Do Not Resuscitate” is a medical term of art. However, it often means the same as “please allow for a natural death” depending upon the medical situation, the decisions of the patient, and even (or often exclusively) the very word choices and/or mood of the doctor themselves. As one planning your own late-in-life decisions, language is a topic worthy of your careful consideration. Additionally, if you are caring for an elderly loved one, then be sure both of you understand your loved one’s advance health care wishes and take steps to clearly articulate them in proper medical directives. Do not assume anything when it comes to the ultimate health care decisions. Make sure the patient, their appointed health care agent and the physician are all speaking the same language. Communication and documentation are essential.

Reference: The New Old Age Blog – The New York Times (May 22, 2013) “DNR by Another Name”

For more information, see www.jerryreiflawyer.com