Boomers: Complex Strategies Save Hundreds of Thousands in Long-Term Care Costs

If you know or suspect you are at a high risk for developing cancer – or if you are one of the brave individuals or families already battling the disease – I cannot stress enough how critical it is for you implement a proper Asset Protection Plan as soon as you can.  Even for those individuals who are not facing imminent crisis, planning is just as critical.

 Asset Protection Planning and Incapacity Planning are the vital legal services where an Elder Law attorney guides the individual (or couple) through the complex Medicaid qualification, application, and approval processes.   It may be necessary to employ a complex set of asset protection strategies, saving hundreds of thousands of dollars in many cases.   

Example:  The median net worth of the average 65 year-old is $232,000. If you live in Northern Virginian, the average cost of a private nursing home room in 2010 was nearly $100,000. 

If planning is engaged in soon enough, assets can be 100% protected from nursing home creditors, lawsuits, and general creditors.  The good news is, even if someone is already in a nursing home paying the monthly bill, their remaining assets can be protected! 

Here is the truth: Proper planning can protect the assets from nursing home creditors, allowing Americans from all walks of life to legally and ethically qualify for Medicaid and Veterans Benefits, passing on an inheritance if they so choose, and enjoy the standard of living and quality of life they prefer.

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Resources: Met Life, 2010 | Cancer Facts & Figures, 2011, available at http://www.cancer.org

Evan H. Farr on Google +

3 tips to talk to your parents about long-term care

1 - Explain that Elder Law attorneys are not “regular” lawyers

Elder Law attorneys have deliberately selected a career in a specialized area of law to serve elders.  Moreover,  the client of an Elder Law attorney is the elder.  Not the children.  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 inheritance is not the focus of ethical planning.  The client’s quality and dignity of life should always remain priority #1

2 - Gather information in a zero pressure environment.

An easy way to spend time with your a parent, while at the same time, gathering information, is to look for a free seminar in your area.  Look in local publications for living trust" or "estate planning" seminars.  Alternatively, you may want to look for a Living Trust Plus™ licensed attorney in your area.  Don’t be afraid to research, communicate, and explain important statistics to your parents.

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.

3 - Explain matters using real, truthful data
13% of drivers are uninsured;
15% of homeowners are uninsured;
90% of senior citizens are uninsured and unprotected against long term care needs.

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!

Evan H. Farr on Google +

Those who are aware of Medicaid, but misinformed and confused

If you are confused or mistaken about the rules of gifting in the context of Medicaid qualification, you likely won't ever venture into the practice of Medicaid Asset Protection.  If you do practice Medicaid Asset Protection, but your potential clients are confused or mistaken about the rules of gifting in the context of Medicaid qualification, they likely won't ever show up at your door.

The most common gifting misconceptions I encounter in my daily practice are:

Those who are completely unaware of any gifting rules:

- Can’t I just give all of my assets away to my children?


- How can the government tell me what I can do with my own money?

Those who are vaguely aware of the tax rules and assume they apply to Medicaid:

- If I give any gifts to my children, won't they have to pay a lot of taxes?
- Isn’t it true I can only give away $13,000 per year?
- Isn't it illegal if I give away more than $13,000 per year?

Those who are aware of Medicaid, but misinformed and confused:

- If I've made any gifts in the past 5 years, doesn't that mean I can't qualify for Medicaid?
- Once my spouse qualifies for Medicaid, doesn't that mean I can’t ever make any more gifts?
- If I make any gifts to my family, doesn't that mean I won’t ever qualify for Medicaid?

Most potential clients, and many attorneys who don't practice regularly in the field of Medicaid Asset Protection, harbor some or all of these misconceptions.  Understanding the realities of gifting in the context of Medicaid Asset Protection is extremely important, because any one of these misconceptions can influence your decision as to whether to practice in this area, and can influence the decision of a potential client as to whether to hire you and engage in Medicaid Asset Protection.

Although it is true that some gifts will disqualify a person from receiving Medicaid for a specific period of time, there are extremely important exceptions and extremely complex Medicaid rules that apply.  The misunderstanding that gifting is capped at $13,000 per year is of course a complete fallacy.  As most attorneys understand, the annual gift tax exclusion only applies for tax purposes, and has nothing whatsoever to do with Medicaid.

Depending on the donee and the type of property, gifts of any amount may be just fine under your state’s Medicaid rules.  For example, the following types of gifts are generally not penalized at all:  gifting assets to a spouse; gifting assets to a disabled child or a trust for a disabled child; making regular gifts in certain small amounts; gifting a residence to a caregiver child; gifting a residence to a sibling on title; and numerous other exceptions.  There are also many asset protection strategies that involve making intentional gifts that are penalized, but doing so in a controlled fashion under the guidance and supervision of an knowledgeable Elder Law attorney.

There are complex Medicaid considerations underlying all of these gifting strategies, and understanding these considerations, along with all of the complex and myriad Medicaid rules and requirements, is a daunting task for any Elder Law attorney.  Evan H. Farr on Google +

5 Basic Reasons to Consider a Revocable Living Trust

 A revocable living trust can function as a Will, but it also offers other benefits that you should consider. If you pass away without a Will or Trust, the laws of your state will determine who receives your property, and in what amount. Moreover, your heirs will be required to wait a minimum of 1 year in Virginia. Not only can probate be time-consuming, it also can be very expensive. Proper estate planning can allow you to distribute your assets with peace of mind.

#1 - Avoid Expenses and Probate Tax: Probate is a court supervised proceeding that can be expensive and lengthy. How long? Anywhere from one to three years in most cases!

#2 - Enable Your Heirs to Receive Your Property More Quickly: Your loved ones can receive your assets much more quickly than if they are required to go through the probate process.

#3 - Ensure Your Trusted Family Members Oversee Your Estate Distribution, Not the Court: When you plan properly, you can select the persons responsible for overseeing the distribution of your estate. If you leave it up to the court system, there is no guarantee that what you expect to happen, will in fact take place.

#4 - Maintain Your Privacy: The distribution of your estate can be a highly personal matter. If you wish, you can maintain your privacy.

#5 - NO Annual Fee Required: Fees are only associated with amendments to the trust. Although there is no fee associated with maintaining a trust, our firm offers an optional Estate Plan Protection Program. We feel that such an option generates the most peace of mind for clients.

Photo Courtesy healingdream / FreeDigitalPhotos.net

Evan H. Farr on Google +

Estate Planning Attorneys Warn About Matching Beneficiaries to Those Named in Your Will or Trust

As an estate planning attorney in Virginia, I have unfortunately seen many circumstances where a person goes through the time and expense of having an estate plan done, only to fail to update their beneficiaries on their financial or retirement accounts before they pass away.

An example of this would be Mary naming her brother Bill as the beneficiary of her life insurance policy in her trust, but at the time of her death, she had a different beneficiary named on the policy itself.

Just as life changes, so do your relationships, which can affect who you want to receive your assets --especially if you do not have children. Changing the beneficiary on assets such as bank accounts or life insurance policies is not uncommon, but you must remember to make sure that your will or trust reflects that change also.

Keeping your estate planning documents and beneficiaries up-to-date and coordinated is a quick and painless way to prevent legal headaches from occurring after you are gone.

Having two different named beneficiaries on two different documents can result in a lengthy and costly process to fix it – especially if each named person believes that they should be the one to inherit the asset.

The best way to avoid problems like this is to have a lawyer who focuses on wills and trusts handle every aspect of your estate.

Image: worradmu / FreeDigitalPhotos.net

Evan H. Farr on Google +

6 tips that can help delay or prevent cataracts

The world's leading cause of blindness, cataracts occur when the lens of the eye becomes clouded. In most cases, lens fibers clump together due to age-related deterioration.

Cataracts, however, can develop in younger individuals due to eye injuries, eye diseases or inflammation.

Here are six tips that can help delay or prevent cataracts from causes other than aging.

1. Protect your eyes from trauma. An injury to the eye can cause cataracts to form. Wear safety glasses when the situation calls for them.

2. Protect your eyes from the side effects of medications, including prolonged use of steroids, tranquilizers, and psoriasis medications, which can cause cataracts when taken in large doses over a long period of time.

3. Don't smoke, say doctors at the Mayo Clinic.

4. People with diabetes should keep their blood sugar under control. Diabetics often get cataracts at an earlier age than other adults.

5. Protect your eyes from the ultraviolet rays of the sun. They accelerate the development of cataracts. Wear ultraviolet-protective sunglasses outside.

6. Antioxidant vitamins, such as vitamin C, vitamin E and beta carotene, have been shown to slow the development of cataracts. Get plenty of omega-3 fatty acids, which can help to shield your eyes from inflammation.

Dr. Eye Treatment
Dark Circles Cure

Evan H. Farr on Google +

Pain should never be considered a “normal” part of the aging process

Pain should never be considered a “normal” part of the aging process.  It is a symptom, and can be a sign of a serious problem and should never be left untreated or under-treated.  In both cases, the pain can lead to depression, fear, anxiety, and even suicide. This is especially true for senior citizens.
 

Over-medication of the elderly has been widely reported and is an issue that many seniors, caregivers, and family-members take seriously. 

On the other hand, under treatment of pain can lead to equally serious consequences, both for the patient and the caregiver alike.   According to a recent study, as many as 40% to 80% of elderly nursing home residents are inadequately treated for pain. Note that under-treating the pain of an elderly patient has been considered a form of elder abuse.

 

According to the American Geriatric Society - “pain has no objective biological markers.”  It is essential for caregivers and family members to recognize signs of pain.

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Fortunately, there are legal mechanisms to achieve peace of mind for you or a loved one.   Services offered by Certified Elder Law Attorneys -to protect assets and provide peace of mind.  Protected assets do not have to be “spent down” in connection with entry into a nursing home.  Once Medicaid is paying for long-term care, the protected funds can be used to purchase items not covered by Medicaid, which can include the hiring of a “helper” or “sitter” to monitor an individual for signs of pain, medication administration, and more.  Other things not covered by Medicaid include hearing aids, glasses, and dental work.  

The goal of any Elder Law Attorney should be to keep his client’s interests at the forefront of all conversations related to asset protection.  If you or a loved one is experiencing pain – or if you believe a loved one is experiencing pain but you are not sure, your first step should be to contact a licensed Medical Practitioner immediately, and then call your local Elder Law Attorney.

An important safeguard some families may want to consider is an asset protection plan – by preserving assets in contemplation of Medicaid down the road, extra items and services can be obtained as needed – items and services which could otherwise be unaffordable and not paid for by Medicaid. Evan H. Farr on Google +