Archive for the ‘Senior Lifestyles’ Category

Are your parents financially healthy?

Monday, October 4th, 2010 Laurie Ohall

The Financial Health of Aging Seniors

With our current economic challenges, those of us looking forward to retirement need to be well-informed about our financial needs in coming years. And not only pre-retirees, but individuals already in retirement need to be wise to the changing economic environment. The good news is there are trained professionals who keep abreast of changes in the current economy, changes in laws and changes in government programs for the elderly. Professionals in this field are equipped to handle everything from help with retirement savings accounts, investment advice, guidance on government programs, estate planning or even new funding options such as reverse mortgages. A little planning prior to retirement will allow you to maintain your current lifestyle; whereas, a lack of planning may require you to live on an extremely tight budget. For those already retired, taking time right now to deal with financial problems instead of waiting for a crisis to happen is well advised.

A large number of retired individuals feel that they have planned well for the future only to find that rising medical costs, damage done to investment portfolios (by the current economy) and many other factors have caused them to go into debt. According to an article in “USA Today” seniors are racking up debt like never before. Elderly individuals who are in debt live with a constant burden over their heads. Most of these people are on fixed incomes and have no way of paying off credit cards and home equity loans that continue to mount to cover household budget deficits. In order to meet ongoing payments, seniors often forego purchasing medications and skimp on food budgets. They live like hermits — never going out and pinching every penny — in order to pay their obligations.

Most of these people worked hard their entire lives and managed their debt. They never anticipated the rising costs of prescriptions, expensive medical care or depletion of savings by living too long. The good news is there is help for these individuals. Here are just a few examples of some relief options that could be available. There are many more besides these.

Reverse mortgages - A Home Equity Conversion Mortgages (HECMs), also known as a reverse mortgage, is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person’s lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title “reverse mortgage”. For those seniors who are less fortunate financially but own a home, a reverse mortgage can allow them to remain in the home by creating extra income.

Life settlements — A life settlement enables older individuals, businesses and other organizations to sell life insurance policies they currently own – but no longer want or need – for an amount greater than the cash surrender value. In some cases the value can be 2-3 times the cash surrender value. Even some term life insurance policies with a conversion option to permanent coverage can qualify for a life settlement.

Government Programs — Some government programs such as food stamps provide temporary financial help for food. Other programs provide subsidized housing, help with medical expenses and provide tax credits. For veterans there is free health care, inexpensive prescriptions and disability income. Area agencies on aging offer individual counseling, legal help and advice with Medicare costs. (National Care Planning Council)

For some, living on a fixed income and dealing with debt can be an overwhelming burden. There are knowledgeable professionals and debt relief strategies that can assist in easing this burden. The National Care Planning Council keeps a list of financial advisers and attorneys who specialize in this area of planning at www.longtermcarelink.net.

Visit the Law Offices of Laurie Ohall for more information.

Posted in End of Life Issues, Estate Planning, Senior Lifestyles | Comments Off

Getting your Affairs in Order – Are you prepared?

Thursday, September 23rd, 2010 Laurie Ohall

Getting Your Affairs In Order

If we had a crystal ball and could see into the future, we would not need to prepare ahead for end of life decisions.

James was 62 years old when a stroke made it impossible for him to communicate with his family. Neither his wife nor children knew anything about his financial or medical information. James had always taken care of things himself and left no written directives in his behalf. Besides having to locate important documents, the family was left to make their own decisions about James long term care.

The National Institute on Aging gives three simple, but important steps to putting your affairs in order:

  • “Put your important papers and copies of legal documents in one place. You could set up a file, put everything in a desk or dresser drawer, or just list the information and location of papers in a notebook. If your papers are in a bank safe deposit box, keep copies in a file at home. Check each year to see if there’s anything new to add.
  • Tell a trusted family member or friend where you put all your important papers. You don’t need to tell this friend or family member about your personal affairs, but someone should know where you keep your papers in case of emergency. If you don’t have a relative or friend you trust, ask a lawyer to help.
  • Give consent in advance for your doctor or lawyer to talk with your caregiver as needed. There may be questions about your care, a bill, or a health insurance claim. Without your consent, your caregiver may not be able to get needed information. You can give your okay in advance to Medicare, a credit card company, your bank, or your doctor. You may need to sign and return a form.” National Institute on Aging http://www.nia.nih.gov

Preparing Advance Directives or Living Will

Advance directives are legal documents that state the kind of medical care or end of life decisions you want made in your behalf. It is a way for you to communicate your wishes to family or health care professionals. Emergency response medical personnel cannot honor Advance directives or living wills. They are required to save and stabilize a person for transfer to a hospital or emergency facility. Once at the facility a physician will honor the directives.

The Living Will as part of your directives gives your consent or refusal for sustained medical treatment when you are not able to give it yourself. If this document is not in place then a family member or physician will decide such things as:

  • Resuscitation if breathing or heartbeat stops
  • Use of breathing machines
  • Use of feeding tubes
  • Medications or medical procedures

Advance Directives and Living Wills are legal throughout the United States; however, some states may not honor other states’ directive documents. Be sure to check with the state you live in for their requirements.

Review your directives periodically. They do not expire, but your wishes may change.
A new or revised Advanced Directive invalidates the old one. Be sure your family member or healthcare proxy has a current copy.

Choosing a Power of Attorney

General Power of Attorney – authorizes someone to handle your financial, banking and possibly real estate and government affairs as long as you remain competent.

Special Power of Attorney – authorizes someone you designate to handle certain things you cannot do yourself for a period of time.

Durable” Power of Attorney -The general, special and health care powers of attorney can all be made “durable” by adding certain text to the document. This means that the document will remain in effect or take effect if you become mentally incompetent.

Many people do not know the difference between a general and a durable power of attorney. A general power of attorney is a document by which you appoint a person to act as your agent.

Agents are authorized to make decisions for you, sign legal documents, etc. Many people are unaware that a General Power of Attorney is revoked when the person granting that power becomes incompetent or incapacitated.

It is the “Durable” Power of Attorney that allows for an agent to continue making decisions on your behalf no matter what happens to you. A responsible adult child of an aging parent would be given a “durable power of attorney” to act on behalf of the parent. This provides broader authority than just adding the child’s name to bank accounts and documents.

You may choose to produce notarized power of attorney documents on your own. If your estate is large and real estate or business is included it is advised to secure a reliable attorney.

Law Offices of Laurie Ohall    www.ohalllaw.com

National Care Planning Council http://www.longtermcarelink.net/a2cfindattorney.htm

Posted in End of Life Issues, Estate Planning, Health Care Directives, Living Will, Long Term Care Planning, Senior Lifestyles | 4 Comments »

Charitable Remainder Trusts: Income for Life and a Good Deed at Death

Thursday, August 26th, 2010 Laurie Ohall


Last Updated: 8/24/2010 11:45:31 AM

Many people like the idea of leaving bequests to favorite charities in their wills. But instead of leaving money to a charity in your will, you can put that money into a charitable remainder trust and collect income while you are still alive. Charitable remainder trusts have many other advantages, including reducing your income and estate taxes and diversifying your assets.

A charitable remainder trust is an irrevocable trust that provides you (and possibly your spouse) with income for life. You place assets into the trust and during your lifetime you receive a set percentage from the trust. When you die, the remainder in the trust goes to the charity (or charities) of your choice

A charitable remainder trust has many benefits:

  • At the time you create the trust, you will receive an income tax deduction for charitable giving.
  • Any profit from the sale of investments within the trust are not subject to capital gains tax, which means the trustee may have more freedom in managing the assets.
  • When you die, the assets in the trust will pass outside your estate and be eligible for the estate tax charitable deduction.

The downside of a charitable remainder trust is that it is irrevocable, meaning once you create the trust, you can’t cancel it. While you can’t revoke the trust, you may have the ability to change the beneficiary if you decide to give to a different charity. You may also serve as trustee, giving you control over how the trust assets are invested. In addition, note that any income you receive from the trust will be subject to income taxes.

To find out if a charitable remainder trust is right for you, talk to a qualified elder law attorney.

For more information on trusts, click here.

Posted in End of Life Issues, Living Trust, Senior Lifestyles | Comments Off

Attorney Wins Landmark Settlement in Medicaid Case

Friday, August 20th, 2010 Laurie Ohall

The settlement of a class action lawsuit in Maryland clarifies when nursing home residents do not have to contribute to the cost of their care, and the case could be a “road map for other states,” according to the Baltimore Sun.

The lawsuit, which was pursued by ElderLawAnswers member attorney Ron M. Landsman, among others, addressed how nursing home residents would pay for medical bills that they incurred before they became eligible for Medicaid. The typical situation involves a nursing home resident trying to get Medicaid coverage who does not quite qualify for benefits because her assets are slightly over the limit. But at the same time, she has too few assets to pay the full cost of her care in the nursing home before she becomes eligible for Medicaid. After the resident qualifies for Medicaid, she will owe the nursing home money often thousands of dollars — and could be discharged for the unpaid bill.

Federal law requires that Medicaid recipients in such situations be allowed to deduct these health care costs from the amount of their income that they would normally contribute to their care. The resident’s available income would instead go to pay the medical debt until the debt had been paid. During this time, the Medicaid program pays the nursing home the resident’s full cost of care.

Maryland was among a handful of states that refused to follow federal law in this area, and instead was requiring Medicaid beneficiaries to contribute all their available income to their cost of care, regardless of their old medocal debts. In some cases, families of nursing home residents were repaying the outstanding medical debts out of pocket, and in others the nursing homes simply weren’t being paid. In 2005, Landsman and two other elder law attorneys sued to force Maryland to follow federal law.

According to the recent settlement in the case, Smith v. Colmers (Md. Cir. Ct. Balt. City, No. 24-C-05-007421, May 12, 2010), Maryland agrees to allow nursing home residents to use their available income to pay three months’ worth of old medical debts. The state has also agreed to contribute $16 million to a fund that will reimburse nursing home residents or their families for medical expenses that they were forced to pay directly to a nursing home after they became eligible for Medicaid. The fund will also help to reimburse nursing homes for unpaid resident bills. In return, up to $64 million in nursing home bills will be forgiven.

The class of plaintiffs was comprised of more than 12,000 current and former nursing home residents, and more than 300 homes were owed money.

For more on the case in the Baltimore Sun, click here. For a similar article in the Washington Post, click here.

Posted in Long Term Care Planning, Medicaid, Senior Lifestyles | Comments Off

Steinbrenner Fourth Billionaire in 2010 to Escape Taxes, If Not Death

Tuesday, August 10th, 2010 Laurie Ohall

Last Updated: 7/16/2010 2:52:48 PM
New York Yankees owner George Steinbrenner is the fourth known U.S. billionaire to die during 2010, according to Forbes magazine. Why is this significant? Because there is no estate tax in 2010, meaning that the U.S. Treasury has lost billions in tax revenues unless Congress acts between now and the end of the year to reinstate the tax retroactively.

Steinbrenner was worth an estimated $1.5 billion, meaning his heirs could save as much as $600 million in taxes because he died this year. Steinbrenner’s wealth — mostly consisting of the Yankees, a new stadium and a regional cable network — could pass to his wife tax-free even if the estate tax were in effect, but this year she might have an incentive to disclaim (or turn down) any bequest, which would allow the assets to pass to Steinbrenner’s four children free of federal tax. (But, as the Probate Lawyer Blog points out, Steinbrenner’s family would have to pay a huge capital gains tax if it were to sell any highly appreciated assets, since along with the disappearance of the estate tax, there is no “step-up” in the cost basis of inherited assets during 2010.)

The other billionaires to die in 2010 are Janet Morse Cargill of the family that founded Cargill Inc. (net worth: $1.6 billion), Texas pipeline magnate Dan Duncan ($9.8 billion), and California real estate mogul Walter Shorenstein ($1.1 billion). By rough calculation, their deaths in 2010 have cost the government some $6.5 billion.

Motivated by the billion-dollar estates passing to heirs tax-free, Sen. Bernard Sanders (I-VT) and four co-sponsors have introduced a bill that would return the estate tax to the 2009 exemption level of $3.5 million but add a progressive tax rate structure that would start at 45 percent, rise to a top level of 55 percent, and add a 10 percent surtax on billionaires. The proposal would be retroactive to the start of 2010.

The Responsible Estate Tax Act (S. 3533), introduced on June 24, 2010, is cosponsored by Sens. Sherrod Brown (D-OH), Al Franken (D-MN), Tom Harkin (D-IA), and Sheldon Whitehouse (D-RI). According to its sponsors, the proposal would bring in at least $264 billion over a decade while exempting 99.7 percent of Americans from paying any estate tax. The retroactivity provision would likely face a court challenge from heirs of wealthy individuals such as Steinbrenner.

“At a time when we have a record-breaking $13 trillion national debt and an unsustainable federal deficit, people who inherit multimillion- and billion-dollar estates must pay their fair share in estate taxes,” three of the senators said in a letter accompanying the bill’s release.

The year without an estate tax is a creature of the Bush tax cuts. Under the provisions of a tax-cut bill enacted in 2001, the value of estates exempt from the tax gradually went up over the past eight years while the tax rate on estates was reduced. During 2010, according to the 2001 law, the estate tax disappears entirely, only to be restored in 2011 at a rate of 55 percent on estates of $1 million or more, which is where things stood before the 2001 change.

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Get Drug Prescriptions Filled for Free

Wednesday, July 7th, 2010 Laurie Ohall

Original Article Found at ABC News

The Biggest Drug Companies Give Away Hundreds of Millions in Prescription Medications

By ELISABETH LEAMY
ABC News Consumer Correspondent

May 31, 2010 —

Every week in this column, I talk about ways to save money. Big Money. Well, there’s only one thing better than saving big and that’s getting stuff for free. And if that “stuff” is a medication that can improve — or even save — your life, wow, wow wow!

People love to complain about drug companies, but every year the biggest ones each give away more than $200 million worth of prescription medicine, according to Pharmaceutical Research and Manufacturers of America or “PhRMA,” a trade group. Sure, they want to burnish their reputations a bit, but they help a lot of people in the process.

“As an industry, we recognize that a medicine that sits on a shelf out of reach from people financially doesn’t do anyone any good,” said Ken Johnson of PhRMA.

Here’s an example. Veronica W. of Kentucky was one of the nation’s first female truck drivers. She loved the freedom of the road — and the solid income. But then, one day while she was taking a break at a truck stop, she had a serious stroke. She couldn’t drive anymore and eventually lost her insurance. Thanks to drug company assistance programs, she is able to get about $600 worth of crucial medications for free every month.

Basically, pharmaceutical companies provide free medicines to people with too much money to qualify for Medicaid but too little to afford health insurance. Rules vary, but typically an individual making less than $21,000 a year or a family of four living on less than $44,000 would qualify. There’s no time limit. As long as your income remains tight, the meds keep coming.

Nearly every pharmaceutical company offers such a program. Some come with fairly easy paperwork; others are more complicated. Some companies require extensive proof that you are unable to afford the medications on your own. Other companies allow you to join the program even if you have a decent-sized income, as long as you are able to prove that the medications are a hardship for you. Once you have qualified, the pharmaceutical company sends the meds to your doctor or pharmacy for you to pick up or ships them to you in the mail.

Partnership for Prescription Assitance

Applying for pharmaceutical assistance used to be confusing, but now PhRMA has a great clearinghouse service called the Partnership for Prescription Assistance. This program will link you with the maker of your drug. Go to http://www.PPARX.org for access to more than 475 different assistance programs. The site is easy to use and will give you a great starting point.

PPARX.org is by far your best starting point. Be aware that whenever somebody tries to do good, bad guys will piggyback on the cause and try to make some money for themselves. I first heard about pharmaceutical assistance programs when I investigated a company that was pretending to have special connections to the big drug companies and was charging people $200 a month to process their applications for these free programs. Please! Don’t fall for it. The assistance really is free.


Original Article can be found at ABC News.

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The Sandwich Generation- Care for the Caregiver

Tuesday, June 22nd, 2010 Laurie Ohall

Original Article  on Seniors List
Written By : Murphy Ortiz
“The Sandwich Generation”: those caught between caring for their aging parents and their own children. Many Baby Boomers (the generation born between 1946-1961) find themselves a part of this Sandwich Generation. The typical Baby Boomer is a 46 year old female, having some college education, and working full time. This is the typical demographic of the person trying to balance a full time job, caring for elderly parents and caring for their own growing children. It goes without saying that trying to juggle these responsibilities comes at a cost-usually to the caregiver. But who cares for the caregiver?

If you find yourself in this group, it is very important to remember to care of yourself. If you don’t, the stress of juggling so many responsibilities will take its toll on you. Remember, you are no good to anyone if you are not taking care of yourself.  There are several things you should do to take care of yourself. The first is to eat well. Avoid junk food and simple carbs as they can raise insulin levels and actually increase your stress levels.

Include yourself on the list of people you take care of- make yourself a priority. You can’t provide care for others if you let your own health and well-being decline. Taking care of yourself must become a necessity, not an indulgence. Thinking of yourself this way may seem foreign but remember, it’s not optional.

Remember to spend time with family and friends. You deserve that time and it can fortify you to continue as an effective caregiver. Many people find themselves spread too thin and when something needs to give, it’s usually the time spent with family and friends.

Call upon brothers and/or sisters to share the load. In time, caring for an aging parent can become impossible to do alone, especially if you work full time. Speak with siblings and ask them how they can participate in your parents’ care. It’s not a burden for only one.

Consider utilizing the services of a home care agency. Affordable in-home care is available to relieve you of some of the daily activities of living. Help is available for assistance with bathing, cooking, cleaning, laundry, errands, and even general companionship. This can be a low cost way to free you up to spend quality time with your aging parents.

Seek the advice of an elder law attorney. This can be money well spent. Make sure wills are drawn up. Consider obtaining any documents required to designate a power of attorney should it become necessary.

The help of a Geriatric Care Manager can be a valuable asset, especially to Boomers who live a long distance from their aging parents. Geriatric Care Managers are professionals that specialize in issues related to seniors. Care managers function as an advocate for their clients through needs assessment, problem solving, care coordination and referrals for other services as needed.

Being the caregiver of an aging loved one is never an easy task, but by making yourself a priority and utilizing the help of others, you can handle the takes healthier and longer.

Murphy Ortiz is the manager of Family Choice Home Care. For more information about senior safety or home health care in New Jersey or Philadelphia, go to [http://www.familychoicecares.com] or cal 856-273-7700

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