When you need long term care, don’t get stuck thinking about your assets in the same old way
Posted by Jim in Gifting, Long Term Care Costs, Medicaid, Mission, Nursing Homes, Spend-down to qualify for government benefits, Veterans on October 11, 2011
I want my friends in Akron, Canton, Cleveland, Elyria, Medina, and the rest of northeast Ohio to realize that the mindset you have while saving for retirement and while managing your savings during retirement will NOT help protect your life savings when you need long term care. While building up your life savings, and while living off that savings during retirement, you watch investment growth, investment risk, inflation risk, income payout, and tax deferral. These are all routine financial issues.
The risks to your finances from the costs of long term care aren’t routine financial risks though. In fact, they aren’t financial risks at all. They are legal risks. (To be fair, planning AHEAD for long term care is largely a financial issue. Protecting your money when you need care NOW, frequently called crisis planning, deals with legal issues.) The main legal issue when you or your spouse needs long term care is who owns your assets.
The provider of your long term care isn’t concerned with your risk tolerance or the rate of return on your investments. The care provider simply wants to get paid, and your assets are a source of that payment. (The provider has every right to get paid. He or she has given you or your spouse a valuable service and deserves a fair payment in return. Most of the long term care providers in in Akron, Canton, Cleveland, Elyria, Medina, and the rest of northeast Ohio are well worth their price.)
Likewise, Medicaid and the Veterans Administration, government programs that may provide money to help pay for long term care, look at your assets the same way, as a source of funds that should be used up before the government programs (i.e., the taxpayers) start to pay for your long term care. As a result, the strategies to consider when you or your spouse needs long term care don’t concern what investments to own but who should own them.
Some strategies to protect assets from long term care encourage spending your money now rather than holding onto it (and, as a result, being forced to spend your money on long term care.) For example, I was talking today with a prospective client’s husband. (The prospective client is in a skilled nursing facility, and the husband was meeting with me to learn how I can help.) I suggested to the husband that he might want to buy a newer car. He bristled, explaining that they have two cars (10 and 20 years old) that get him where he needs to go. I responded that I wasn’t going to force him to buy a newer car, but I asked him to consider whether his life would be a little easier with a car that didn’t need so much care. I continued, explaining that he could spend some of this wife’s money on a car (or on something else,) or he could watch the money go to the nursing home. He admitted the logic in my suggestion and confessed that he was having difficulty changing from a “save the money” mindset to a “what should I buy next” mindset. The financial crisis of long term care costs requires seniors to (temporarily) abandon their decades-old instincts on protecting their assets.
Other strategies to protect assets from long term care costs frequently involve changing the ownership of assets. These changes in ownership usually occur through making gifts. The gifts can go directly to the recipients (usually the senior’s children or grandchildren,) or the gift can go to a trust until the senior passes away and then to the children our grandchildren.
Of course, you can’t just give your assets away and immediately get Medicaid or VA money. The rules are far more complicated than that. There are, however, strategies that can allow you to make some gifts and then get Medicaid or VA money to help pay for your care. An elder law attorney can help you through this tricky process.
If you’re in Akron, Canton, Cleveland, Elyria, Medina, or anywhere else in northeast Ohio, I hope you’ll let me be the elder law attorney to help you.
Take care.
For more information about long term care issues, visit www.ProtectingSeniors.com.
The information above is provided by The Koewler Law Firm, whose mission is
“Protecting a Senior’s Life Savings.” TM
© 2011 The Koewler Law Firm. All rights reserved.
Don’t let your IRA keep you from protecting your life savings against long term care costs
Posted by Jim in Long Term Care Costs, Medicaid, Mission, Spend-down to qualify for government benefits on October 3, 2011
I want to remind my friends in Akron, Canton, Cleveland, Elyria, Medina, and the rest of northeast Ohio that the costs of long term care are higher than the costs of taxes. I have lost potential clients because they couldn’t bear to pay the taxes on an IRA withdrawal. As a result, all of the money in the IRA probably will be used up. If these seniors had accepted my help, some of the money in the IRA could have been saved within the family.
One couple sticks out in my mind. Paul and Joan (not their real names) had about $600,000 in an IRA and a paid-off house. Paul has early-stage Alzheimer’s disease but, otherwise, is very healthy. He will be able to stay in the home for a while longer, but he needs significant supervision throughout the day and help bathing, grooming, and dressing himself. Before too long, an assisted living facility or a nursing home will be more appropriate for him.
Joan is healthy and independent. In fact, she still works. At least, she did work until she felt that she could no longer leave Paul alone. If she finds a way to get Paul some care, and she can get herself comfortable with the caregiver costs, Joan would like to return to work.
As I worked with Paul and Joan (as I work with other seniors in Akron, Canton, Cleveland, Elyria, Medina, and the rest of northeast Ohio,) we finally got to the big decision point. Paul and Joan had to make a significant withdrawal from the IRA or abandon the asset protection strategy.
They chose to keep their money in the IRA. They had based their retirement plan on tax avoidance/tax for so long that I couldn’t change their minds despite the enormous change in their circumstances.
Over the course of Paul’s care, I expect that Paul and Joan will spend almost all of their $600,000 without ever getting the benefit of Medicaid’s financial support. (I believe that an asset preservation strategy could have saved more than $250,000.) Maybe, someday, they’ll reconsider. I hope it’s before the money is all gone. Hearing “We should have listened to you” is just as bad as hearing “I wish I’d met you before the money was gone.”
Moral of the story: If you or a loved one need long term care, don’t let your decades of faith in the tax benefits of IRAs and 401Ks keep you from reacting to the financial crisis that results from long term care costs. Get help from an elder law attorney who works in such crisis cases, and follow that attorney’s advice. (If you or the senior who needs care lives in Akron, Canton, Cleveland, Elyria, Medina, or anywhere else in northeast Ohio, I hope you’ll let me help you.)
Take care.
For more information about long term care issues, visit www.ProtectingSeniors.com.
The information above is provided by The Koewler Law Firm, whose mission is
“Protecting a Senior’s Life Savings.” TM
© 2011 The Koewler Law Firm. All rights reserved.
If you need long term care, don’t suffer the illusion that you still control your money
Posted by Jim in Long Term Care Costs on September 21, 2011
I want my friends in Akron, Canton, Cleveland, Elyria, Medina, and the rest of northeast Ohio to understand that, once you or your spouse needs long term care, you no longer have control of your money. The need for long term care has taken that control away from you. The money in your accounts may seem that it is under your control, but that is an illusion. Month by month, bill by bill, the costs of long term care will eat away at your money.
Now, please don’t take my words as a suggestion not to get the care that you need. Your well being and your spouse’s well being are more important than money. There are ways, though, for most people to get the care that they need and still protect some of their money from the costs of care.
To take advantage of the opportunities to protect some money from the costs of care, you must realize that control over your money has gotten away from you. Seniors who cling to the illusion of control over their money fail to understand what is at risk and, therefore, fail to take the steps that can protect some of their money for their children and grandchildren (or favorite charity.)
If you need long term care and you realize that the cost of that care have taken control of your money, let me help you get control back. I work with seniors in Akron, Canton, Cleveland, Elyria, Medina, and the rest of northeast Ohio.
For more information about long term care issues, visit www.ProtectingSeniors.com.
The information above is provided by The Koewler Law Firm, whose mission is
“Protecting a Senior’s Life Savings.” TM
© 2011 The Koewler Law Firm. All rights reserved.
Don’t let Long Term Care Costs wipe out your Life’s Work
Posted by Jim in Uncategorized on September 6, 2011
In honor of Labor Day, I want to remind my friends in Akron, Canton, Cleveland, Elyria, Medina, and the rest of northeast Ohio that there are ways to prevent long term care costs from using up the fruits of your life’s work. The costs of long term care can use up your life savings. That life savings is the reward you got for your lifetime of work. Wouldn’t you rather have some of your life savings stay in the family?
Even if you need care already, there are strategies that could protect some of your savings – protecting a legacy. Once you need long term care, you should get help from an elder law attorney. The sooner you start, the more of your life savings you can protect.
I provide just this sort of help (I do it for my clients in Akron, Canton, Cleveland, Elyria, Medina, and the rest of northeast Ohio.) If you need long term care, an elder law attorney can help you too.
The strategies will vary from one senior to the next because every senior’s situation is unique. There isn’t any “one size fits all” in these cases. There may, or may not be a spouse at home. The senior may, or may not, own the house. One or both of the seniors could be a veteran. There could be a caregiver child. There are many variables.
There are just as many variables in what the senior might want to do with his or her money. Good elder law attorneys try to preserve the senior’s choices as much as possible. (The senior’s choices must be reasonable under the circumstances.)
If you need long term care, let me help you and your family. I work with seniors in Akron, Canton, Cleveland, Elyria, Medina, and the rest of northeast Ohio.
For more information about long term care issues, visit www.ProtectingSeniors.com.
The information above is provided by The Koewler Law Firm, whose mission is
“Protecting a Senior’s Life Savings.” TM
© 2011 The Koewler Law Firm. All rights reserved.
I made a Woman Cry
Posted by Jim in Long Term Care Costs, Mission, Veterans on August 28, 2011
I met Denise (not her real name) recently over coffee as part of both of our networking efforts. We had the usual “getting to know you” chit chat about kids, work, past jobs, how we got where we are, where we grew up, etc.
Then she mentioned that her mom has dementia and that her dad is overwhelmed trying to be the primary caregiver. I showed her how the VA (because Dad is a WWII veteran) could make available to her parents over $1200 per month to get Mom some help from a home care agency. (At the same time, the home care agency would be helping Dad by reducing his caregiver burden.)
That’s when she started to cry. She found out that help is available for her parents, her siblings, and herself. Dad just has to allow an elder law attorney to help him qualify for the benefits.
Elder law attorneys not only help seniors protect the life savings that comes from a lifetime of productive work. Elder law attorneys also help bring in government benefits that lead to more care.
For more information about long term care issues, visit www.ProtectingSeniors.com.
This information is provided by The Koewler Law Firm, whose mission is
“Protecting a Senior’s Life Savings.” TM
© 2011 The Koewler Law Firm. All rights reserved.
Pre-planning your funeral: Decide who should oversee your final arrangements
Posted by Jim in Pre-Planning your Funeral on July 23, 2011
Today’s post continues the series on planning ahead for your own funeral. My post of March 24, 2011 discussed planning your own funeral in advance. Pre-planning your funeral helps make sure that the ceremony, casket, flowers, etc. will be the way you want them to be. It also helps your family by relieving them from having to plan your funeral at the same time that they are in emotional turmoil from your passing. My post of March 27, 2011 discussed whether to pay for your pre-need funeral through a funeral home or through a funeral trust. My post of April 6, 2011 tried to let you see the opinions of others in the discussion of how to pay for your pre-need funeral. Most recently, my post of April 23, 2011 suggested that you plan all of the details about your funeral that are important to you.
In today’s post, I want to suggest that you consider who will make your final arrangements.
Ohio has statutes regarding the “right of disposition.” The right of disposition is the legal authority instruct the funeral home, enbalmer, cemetery, etc. to carry out the duties necessary to bury or cremate a person’s remains. (I suspect, but do not know, that other states have similar laws.) Ohio’s laws are in sections 2108.70 – 2108.90 of the Ohio Revised Code. Put together, these laws give each of us the ability to designate someone or a group to make our final arrangements or to let the state’s laws decide who has that authority.
In the absence of a written assignment of the right of disposition, Ohio’s law makes the surviving spouse and the adult children the automatic first and second choices to have that right. After the spouse and children, the Ohio law designates parents, siblings, grandparents, grandchildren, cousins, guardians, executors, funeral directors (if no spouse or blood relative can be found,) and (for those on public assistance) public benefit agencies. This priority list is contained in Revised Code section 2108.81.
For married couples and those with adult children, the state’s automatic designations may be okay. To avoid delays and possible burdens on far-away children, however, one may wish to designate a nearby child as the first designee.
Unmarried couples and childless adults definitely should consider designating someone. The funeral director may be forced to look for relatives before starting his or her work.
Like with a power of attorney, an adult can grant the right of disposition to any other adult he or she chooses. The ability to designate someone is contained in Revised Code section 2108.70. Each “declarant” may designate one person or a group of people. In addition, the declarant may designate one or more successors.
The form of the declaration is detailed in Revised Code section 2108.72. Like a power of attorney designation, the designation of the right of disposition requires notarization or witnesses.
The right of disposition is not necessarily covered by pre-arranging your funeral. The pre-arrangement of your funeral can detail what the funeral and burial should be, but the pre-arranged funeral cannot start itself. It’s like the beginning of a race. The pre-arranged funeral is “get ready” and “get set,” but only someone with the right of disposition can say “go.”
For more information about long term care issues, visit www.ProtectingSeniors.com.
This information is provided by The Koewler Law Firm, whose mission is
“Protecting a Senior’s Life Savings.” TM
© 2011 The Koewler Law Firm. All rights reserved.
The Most Frustrating Words that People Say to Me
Posted by Jim in Aid & Attendance, Assisted Living Facilities, Emotional Value of Life Savings, House, In-Home Long Term Care, Long Term Care Costs, Medicaid, Mission, Nursing Homes, Spend-down to qualify for government benefits, Veterans on June 28, 2011
The most frustrating words that people say to me are, “I wish I’d met you before . . .”
One person might say, “I wish I’d met you 5 years ago.” Another might say, “I wish I’d met you 3 months ago.” Still another might say, “I wish I’d met you before my mom died.” Of course, I get the generic, “I wish I’d met you before it was too late.”
No matter how it’s said to me, it always means, “I wish I’d met you before the money was gone.”
They might mean their own money. They might mean their parents’ money. Either way, the number of people who find out TOO LATE what elder lawyers can do for their families is a big number.
I hear the speaker’s frustration in these words. (It frustrates me to hear them.) The words mean that a senior’s life savings is mostly or completely gone. With that life savings, some of the senior’s dignity, identity, and pride are gone too.
The frustration of a life savings lost is bad enough. Imagine, though, how the frustration would grow for someone who later finds out what they could have done to prevent the loss.
Don’t let your family members, friends, co-workers, or clients suffer these frustrations. When someone you know needs long term care, or the need for care is imminent, please help them find an elder law attorney.
The sooner they get help, the better the outcome.
For more information about long term care issues, visit www.ProtectingSeniors.com.
This information is provided by The Koewler Law Firm, whose mission is
“Protecting a Senior’s Life Savings.” TM
© 2011 The Koewler Law Firm. All rights reserved.
A senior’s life savings isn’t just money
I, like many other elder law attorneys, help seniors get long term care without having to spend off their entire life savings. I have found, though, that for most seniors, their life savings isn’t just “money” or “assets.”
Their life savings is a medal for completing the marathon of their career.
A senior’s life savings is a trophy for their hard work – their proof that they were productive members of society.
A senior’s life savings is the senior’s footprints on the earth. Architects leave buildings. Composers leave music. Authors leave stories. Working people don’t leave any footprints other than their life savings.
For seniors who felt that their work was part of their identity, their life savings is all that’s left of that part of themselves.
Even 85 year old parents (of 60 year old children) feel the desire that their children have things better than they (the parents) had things. Leaving some money behind helps support that parental desire. (Likewise, relying on your children to take care of you financially frustrates that parental desire.)
A life savings left behind as a legacy seems to make life less fleeting – as if passing away isn’t so sudden and one’s life will be more than a mere memory to others.
The most rewarding part of my elder law practice is when I see the relief in a client’s face as they realize that their life savings won’t be completely gone. I see it every time. Their life savings is more than just money.
For more information about long term care issues, visit www.ProtectingSeniors.com.
This information is provided by The Koewler Law Firm, whose mission is
“Protecting a Senior’s Life Savings.” TM
© 2011 The Koewler Law Firm. All rights reserved.
The Long Term Care Organizer has moved (ProtectingSeniors.com had to be rebuilt)
Posted by Jim in Admission to a Long Term Care Facility, Choosing a Nursing Home, Funeral Trusts, In-Home Long Term Care, Insurance Carrier, Irrevocable Trusts, Long Term Care Insurance, Long Term Care Organizer, Nursing Homes, Pre-Planning for Long Term Care Costs, Revocable Trusts, Trusts, Veterans on May 18, 2011
Friends,
My website, ProtectingSeniors.com, crashed like a stone on May 1. I have put it back together. (Well, I think I have.) I do not yet know (and may never know) why it crashed.
The rebuilding of the site has changed the web links that I published in the past for the Long Term Care Organizer. Here are the new links:
The Long Term Care Organizer (This actually goes to the page Toolbox for Seniors from which the organizer is accessible. Linking to this page lets me improve the organizer without having to change a number of links on the web.)
Licensing of the Long Term Care Organizer for other senior service providers
For more information about long term care issues, visit www.ProtectingSeniors.com.
This information is provided by The Koewler Law Firm, whose mission is
“Protecting a Senior’s Life Savings.” TM
© 2011 The Koewler Law Firm. All rights reserved.