3 tips to effectively talk to your senior parents about long term care options

Today’s  women are decision makers.  For some couples, the woman is THE decision maker, and there’s nothing wrong with that.  For example, in nearly 8 out of 10 cases where married couples purchase a vehicle, it is the woman who makes the final decision.  And because women outlive men by 5.4 years on average, women frequently make decisions that have long lasting effects upon their children, their spouse, and even their parents.

Today, I want to offer 3 tips to help open the lines of communication between parent and child when it comes to the difficult subject of long term care.

Tip 1: Explain that Elder Law Attorneys are Passionate About Their Clients – Elders!
 

Elder law attorneys have deliberately chosen a career in a specialized area of law to serve elders.  Moreover, Virginia Rules of Professional Conduct require lawyers to act in the best interests of their clients.  The client of an elder law attorney is the elder.  Not the child. 


Elder law attorneys are equipped to facilitate familial harmony; they place the client’s concerns at the forefront of any discussion, and they orchestrate a plan that can protect a nest egg from the catastrophic expenses of long term care and improve quality of life.  An inheritance is nice – and usually a much larger inheritance is a by-product of the plan devised by an excellent elder law attorney – but the first thing I explain to families I meet with is that the inheritance is not the focus.  The client’s quality and dignity of life is priority #1.

Tip 2: Gather Information with Parents in No-Pressure Environment


Parents love to do things with their kids, and adult children likewise value the time they have with their aging parents.  One easy way to spend time with your parents while gathering information is to attend a free seminar hosted by a local elder law attorney.  Don’t be afraid to research, communicate and explain important statistics to your parents.

Tip 3: Use Easy to Understand Statistics to Convey Your Message: 

Did you know that if you are over age 65:

• you have a 7.2% chance of having an auto accident every year;
• a 6.15% chance of needing to file a homeowner’s insurance claim; and
• a 70% chance of needing long-term care?

Over half of those who need long-term care will require a nursing home.

Here is the statistic you must be concerned with:

• 13% of drivers are uninsured;
• 15% of homeowners are uninsured; but
• 90% of senior citizens are uninsured and unprotected against long term care needs.

This means;

1. 87% of people insure themselves against an event that has a 7.2% annual probability;
   

2. 85% of individuals protect themselves against an event with a 6.15% annual probability; but

3. Only 10% protect themselves from an event with a 90% probability!

Why is it important to plan for long term care?  Primarily because the expenses of long term care are catastrophic and can wipe out a nest-egg in less than a year.  50% of couples and 70% of singles are impoverished (broke) after one year of entering a nursing home.

Medicaid is a government program meant for those who plan for it.  I encourage you to attend a free seminar on the subject, as it is shocking that so many smart people do not realize that Medicaid – not Medicare – can be used to pay for long term care.

One common misconception is, “We don’t need to plan for our long term care yet, we’re only 65.”  Almost half of all long-term care claimants are under age 65 at the time of disability.  Every day that goes by without a plan, the family is risking possible delay or even forfeiture of government benefits that are meant to pay for catastrophic long term care costs.

Talking to your parents about their long term care options can be understandably difficult, and no other generation has had to simultaneously balance so many familial responsibilities at one time.  But there is a new breed of estate planning and elder law that takes a family-friendly, solution-based approach making it easier to discuss difficult subjects.

Photographer: graur razvan ionut Evan H. Farr on Google +

New Medicare out-of-pocket home health care expenses for Seniors on the horizon?

The Medicare Payment Advisory Commission suggested Thursday one strategy to cut health care spending; the strategy would force Medicare recipients who receive home health care to pay an out-of-pocket cost.  The proposed cost is not yet certain, though sources suggest the amount may be around $150 for a series of visits.  Medicare home health care costs have steadily increased and have reached a point of about $20 billion per year, according to BusinessWeek.  Home health care can encompass home visits from care workers, nurses, therapists, and other health professionals. 

The strategy may come as unwelcome news for Medicare recipients who receive home health care.  Home health care has been free for patients, but amidst the pressures to control the federal deficit, the advisory panel is re-evaluating aspects of Medicare. 

If this suggestion becomes law, more than 3 million seniors will be affected. 

The rationale for paying for the home health care costs in the past has been based on the fact that it is cheaper to care for a person in their own home as opposed to in a hospital. 

For a description of various types of in-home care providers, AARP.org describes the similarities and differences between medical professionals, home health aides, and home care aides in this useful article.  The AARP Seniors lobby is one group opposing the proposed strategy outlined above.

Evan H. Farr on Google +

Three Keys To Planning For Long-Term Care

Baby-Boomers and Seniors 2011 Legal Report

I want to dispel two huge myths that routinely produce false security for senior citizens and their adult children: First, a revocable living trust does not protect your assets from nursing home costs or other long-term care expenses. Second, Medicaid is not just for the “poor.”

“Is it time to start thinking about my parent’s long-term care options?”

This question alone may be the most difficult decisions that baby-boomer’s are faced with in 2011. Baby-boomers have been referred to as “the Sandwich Generation” because they often must take on health-related responsibilities for both their own children and their aging parents. Planning for the future should be the #1 New Year’s resolution for baby-boomers and senior citizens.

Key #1: Plan in Advance

The sooner that you or your parents explore and understand the benefits of senior-focused asset protection planning, the better equipped everyone involved will be towards reaching the goal of maintaining your parents’ highest quality of life.

Proper planning can ease anxieties for baby-boomers by removing stressful decision-making and feelings of guilt. Likewise, a senior-focused asset protection plan can ensure that a senior citizen doesn’t feel as if he or she is a “burden” on thefamily.

Key #2: Get on the Same Page

Bringing up the need for long-term planning to an aging parent can be difficult.  But if you understand that the primary goal of this type of planning is maintaining your parents’ highest quality of life for as long as possible, you should be able to effectively communicate that proper advanced planning is in your parents’ best interests.

Just as good parents want what is best for their children, adult children should likewise seek what is best for their parents. The protection, peace of mind, and elimination of uncertainty brought about by proper planning at an early stage is always in the best interests of senior citizens.

Key #3: Select the Right Attorney

Medicaid eligibility rules and veterans’ benefits rules are the most complex areas of law in existence, and it is essential that the attorney your parents work with for their long-term planning has a comprehensive understanding of these laws. The easy way to ensure that an elder law attorney has the requisite knowledge of these laws is to look for the Certified Elder Law Attorney (CELA) designation, which is approved by the American Bar Association.  There are over 5,000 attorneys in the US who practice elder law, but less than 500 of these have passed the full-day exam required to become a CELA.

Evan H. Farr on Google +

How expensive will nursing homes be in 2020?

The cost of growing old is a concept Baby Boomers are beginning to wrestle with as they contemplate long term care options for both themselves and their aging parents. But in today’s age of economic uncertainty and rising care costs, more dependent adults are relying on family members for care. The Wall Street Journal recently reported on a growing trend - compensating a relative to save money. In citing a report by the National Alliance for Caregiving and AARP, the WSJ pointed out that  more than 43 million Americans cared for a friend or relative age 50 or older in 2009. This number has increased by more than 27% since 2004! But this strategy can have drastic consequences that must not be ignored.

Genworth Financial has posted a tool to view median care costs by state, plus future projected costs. Below are some key figures for the Commonwealth of Virginia:

Type of Care - 2010 Median Cost/Year in Virginia - 2020 Projected Cost

Nursing Home Private Room - $73,000  - $118,909

Assisted Living Private Room - $43,182 - $70,339

Adult Day Health Care - $13,780 - $22,446

Home Health Aide - $41,184 - $67,084

If a family opts for relative-care, they must ensure that the relative can provide the assistance that is actually needed. Other important considerations include: Whether to pay the family member, how much to pay, and whether those facts should be disclosed to other family members. And of course, the person receiving the care should always be comfortable with their caretaker. The WSJ article referenced above suggests complete disclosure to the entire family, as a way to ease potential tension. Another important point – if Medicaid eligibility is a goal, there is no substitute to consulting an Elder Law Attorney. Medicaid laws may require a caregiver to be compensated in a specific way.  One common misconception is that Medicaid is only available for the poor. To the contrary, Medicaid is available to anyone who can legally qualify. An Elder Law Attorney should be consulted for Medicaid asset protection planning, because as this article alluded to above, there are nuanced and complicated qualification rules.



Image: renjith krishnan / FreeDigitalPhotos.net