Articles

"Stretch" You IRA To Leave More For Younger Beneficiaries

Q.  My IRA is a significant part of my assets, and I wonder if there are any special considerations when planning my affairs?Name Beneficiaries: Remember to name both primary and contingent beneficiaries. If you are married, the primary beneficiary would typically be your spouse, but name back-up beneficiaries as well. If you and your spouse were to die around the same time, or if your spouse predeceased you and you had neglected to name contingent beneficiaries, your IRA would then go to your ... (Read More)

When Your Most Valued Assets Are Not Covered by Your Will

Q. My wife and I hold title to her home as joint tenants, and most of our cash assets are in the form of two large IRA accounts and one big annuity.  We have basic wills which leave  everything to the other and then on to our children. Our son suggested that our wills may not control what happens to our assets when one of us dies. Should we be concerned?A.  Perhaps, if you are relying upon your wills to control what happens to your assets when one of you dies. Rather, the form of title will c... (Read More)

Newsflash! Registered Domestic Partnerships Recognized by Medi-Cal

Q.  I have been in a Registered Domestic Partnership for several years, and my partner may soon need to apply for a Medi-Cal nursing home subsidy. How will Medi-Cal treat our finances in that situation?A. The good news is that Medi-Cal will now evaluate your partner’s financial need for a subsidy based upon the more favorable rules formerly applicable only to married couples in traditional relationships. The new rules will be retroactive to January 1, 2012, and will now allow same-sex spouses... (Read More)

With the New Tax Law, Does Your Trust Need a Tuneup?

Q.  My wife and I had our Living Trust prepared about 8 years ago. I hear there’s a new tax law which just went into effect. Is it time to have our trust reviewed? A. You refer to the recently enacted “American Taxpayer Relief Act,” which has permanently enlarged the estate tax exemption to $5,250,000 per person (for 2013). It also permits a married couple to effectively double their exemption even without special estate tax planning.By comparison, when you created your trust the estate ... (Read More)

The New Paradigm For Seniors: Estate Planning for Long-Term Care

Q. My wife and I signed basic wills in our 40s when our concern was passing our assets to our children in the event of death. However, we are now both in our mid 70's and we are now more concerned about the cost of long-term care for ourselves.  Should we now redesign our estate plan to address our long-term care concerns?A. That’s a great question and one that is being asked by seniors with increasing frequency. In approximately 1900, the average lifespan was about 47 years, and through most... (Read More)

When Seniors Remarry: Revise Your Estate Plan

Q.  My fiancé and I will soon marry. This will be the second marriage for each of us and we both have children from previous marriages.  We want to arrange our estate plan to make sure that the survivor of us is financially secure, but we also want to leave something to our own children.  Any thoughts about how we might do this?A. Each couple’s situation is unique, but here are just a few thoughts:Name A Neutral Person As Your Successor Agent or Trustee?  If you become disabled or die, wo... (Read More)

When Seniors Remarry: Consider a “Prenup”

Q.  My fiancé and I plan to marry. This is the second marriage for each of us, and we both have children from previous marriages. I have heard something about a “Pre-Nuptial Agreement” for couples in our situation.  Does that sound like a good idea?A.  Probably, yes.  In its simplest form, a Prenuptial Agreement (“Prenup”) is a written contract which clarifies your property rights and financial responsibilities to one another.  It identifies ownership of assets, states whether they... (Read More)

End of Year Tax Planning: More Important This Year

Q.  I hear that tax laws may change dramatically on January 1, 2013. Are there tax strategies that I should consider before year end?A.  Bush-era tax reductions are slated to end on January 1st,  unless Congress and the President agree on a way to avoid the "fiscal cliff" before then.  Absent such agreement, tax rates will increase for everyone. So, for this year it is perhaps more important than ever to consider your best tax options before year end.Reverse The Usual Strategy:  In years pa... (Read More)

How to Get the Most From Medicare’s Limited Nursing Home Coverage

Q.  My wife and I do not have long-term care insurance. We hear that Medicare coverage for nursing homes is limited. Do you have any tips on how to make the most of it?A. Sure. Medicare coverage for nursing home stays is really designed for short-term convalescence following a hospital stay. But if you know the rules you can get the most out of this limited coverage:Basic rule: Medicare will only cover up to 100 days in a nursing home, but only after a 3-day hospital stay. Days 1--20 are covere... (Read More)

How the Medi-Cal Look Back Works

Q.  Prompted by the temporary increase in the gift tax exemption, my wife and I recently made gifts of $50,000 apiece to each of our 3 sons. Shortly thereafter my wife had a stroke and now needs full-time care in a nursing home. The cost is running about $7,500 per month and I need to apply for Medi-Cal to help. However, I heard something about a Medi-Cal "look back", which might now prevent her from qualifying.  Can you explain this? A.  Sure. Medi-Cal is the government program designed to ... (Read More)

How Would Paul Ryan Change Medicare?

Last year, it was reported that House Budget Committee Chairman Paul Ryan (R-WI) proposed a budget that would radically reshape Medicare and shift more costs to seniors and the disabled. At the time, we noted that “the plan may well become the Republican Party's de factoplatform in 2012.”Little did anyone know that the plan’s architect would become Republican candidate Mitt Romney’s choice as his running mate, putting the Ryan plan for Medicare center-stage less than three months before... (Read More)

How Work Affects Social Security Retirement Benefits

Q.  I will soon be 66 and at full retirement age. I have the option of continuing to work for my present employer for long as I wish. How would my continuing to work affect my Social Security retirement benefits?                                                                                                A.  The connection between work and Social Security Benefits involves the following considerati... (Read More)

What to Do When a Spouse Enters a Nursing Home?

Q.  My husband recently entered a nursing home and it appears he will be there for the long term. It is very expensive and I am concerned that we may lose our home and savings. Is there anything that we should do at this time?A. Yes. The first step is to take a deep breath.  Then, approach your concerns systematically.  Here are my recommendations:1) Ensure Good Care: Make sure that he is getting good care. Frequent visits and interaction with staff can be very helpful. If you desire a profes... (Read More)

Spouse on Medi-Cal? May Be Time To Change Your Will

Q. My husband is in a nursing home and has qualified  for a Medi-Cal subsidy to help with care expenses. To qualify, I was obliged to take his name off of most of our bank accounts, so that most everything is in my name now. However, I have my own health problems and I wonder what would happen if I pass away before him, as each of our wills leaves everything to the other. Would he lose his Medi-Cal benefits?  I want to make sure he is protected. A.  Great question. For your husband to mainta... (Read More)

Managing the Afterlife of Your Online Accounts

Q.  I do most of my banking and bill paying over the Internet, participate in Facebook and exchange e-mails with friends and family. What would happen to these online accounts when I die or if I became disabled and could no longer manage them?  A.  Great question. As we move further into the 21st century, more and more of our lives are moving into the digital realm. This includes friendships, networking, business and banking. While this gives us instant access to our “digital assets” and... (Read More)

Using Annuities in Long Term Care Planning

Q.  My wife and I do not have long-term care insurance and we are concerned about how we would pay the cost of care if one of us had to go into a nursing home, which I understand is very expensive. I heard that purchasing an annuity might help us qualify for a Medi-Cal long term care subsidy to help with that cost. Can you explain how that might work?  A.  Sure. For a married couple to qualify the ill spouse for a Medi-Cal subsidy, the couple’s countable assets cannot exceed $115,640 (excl... (Read More)

Advance Care Planning: Making Sure Your Loved One’s Wishes Are Honored

Q.  Our parents are up in years and have become increasingly frail. I know that they both have definite wishes about advance care planning and end-of-life decisions. Any suggestions on how we might help them make sure that their wishes are honored?A. Yes, I do.  The first step is to begin the conversation.  There is an excellent “Conversation Guide” prepared by the California Coalition for Compassionate Care that is available for free download at www.finalchoices.org, or by calling 916-55... (Read More)

How the Medi-Cal "Look Back" Works

Q.  Prompted by the temporary increase in the gift tax exemption, my wife and I recently made gifts of $50,000 apiece to each of our 3 sons. Shortly thereafter my wife had a stroke and now needs full-time care in a nursing home. The cost is running about $7,500 per month and I need to apply for Medi-Cal to help. However, I heard something about a Medi-Cal “look back”, which might now prevent her from qualifying.  Can you explain this? A.  Sure. Medi-Cal is the government program designed... (Read More)

Gov. Brown Signs Law to Extend to Same-Sex Couples and RDP’s Some Medi-Cal Protections of Married Couples

Recently, Governor Jerry Brown signed legislation seeking to extend to same-sex couples and Registered Domestic Partners ("RDP’s") some of the Medi-Cal benefits enjoyed by married couples.  The legislation, known as AB 641,  was authored by assemblyman Mike Feuer, whose website summarizes the importance as follows:"Under current law, Medi-Cal's long term care benefit helps to pay for medical care and services for people who have a chronic illness or disability, including the costs of placing... (Read More)

The Difference Between Alzheimer's Disease and Dementia

Many people use the terms Alzheimer's disease and dementia interchangeably, but they have very different meanings. Although dementia is a group of symptoms that include memory loss, the term itself doesn't explain what is causing the symptoms. Alzheimer's disease is the leading cause of dementia, but here are many other causes. Dementia is a general term for memory loss that is severe enough to interfere with daily life. The signs of dementia may include forgetfulness, difficulty making plans, t... (Read More)

Senior Cohousing: A Retirement Alternative

Seniors want to remain at home as long as possible, but with family spread out all over the country, it isn't always easy to do so. "Senior cohousing," a relatively new concept, allows older Americans to age at home in a supportive community.Senior cohousing consists of a group of houses or condos that are individually owned by seniors and are clustered around a common area. The design usually includes a common house that can hold guest rooms, a kitchen for group meals, and any other common area... (Read More)

Long-Term Care Services Have Room to Improve According to New Report

A new state-by-state scorecard evaluates the effectiveness of long-term care services across the country and concludes that there is a lot of room for improvement. The State Long-Term Services and Supports Scorecard examines the performance of state long-term care services for older people and adults with physical disabilities. The purpose of the report is to provide information on how to improve long-term care systems so that everyone can have affordable, high-quality, well-coordinated services... (Read More)

How to Avoid Problems as a Trustee

Being a trustee is a big responsibility and if you don't perform your duties properly, you could be personally liable. That's why it's important to hire the right people to guide you in this important role.A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a "trustee," holds legal title to property for another person, called a "beneficiary." If you have been appointed the trustee of a trust, this is a strong vote of confidence in your ... (Read More)

Medicare Fraud Costs Billions: Here's How You Can Help

Medicare fraud is often in the news, but what is it, exactly? Fraud costs Medicare an estimated $60 billion a year and contributes to the rising cost of health care for all Americans. Once you understand what is involved, you can help prevent fraud.Medicare fraud occurs when providers mislead Medicare into paying for services it shouldn't be paying for. Examples of fraud include: a health care provider, such as a doctor or hospital, billing Medicare for services you never received; a supplier ch... (Read More)

Amy Winehouse's Death Illustrates the Importance of a Will

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Fat Cats & Lucky Dogs

Barry Seltzer & Gerry Beyer. Fat Cats & Lucky Dogs: How to Leave (some of) Your Estate to Your Pets. Prism Publishing. 2010. 249 Pages. $39.35 from Amazon (click the book to order). For many people, their pets are members of the family that need to be taken care of if the pet owner dies before the pet. Fat Cats & Lucky Dogs explains how to include a pet in an estate plan.Billionaire hotel operator Leona Helmsley famously left $12 million in trust for her dog when she died. While the ... (Read More)

IRAs Require Special Consideration in Estate Planning

Individual Retirement Accounts (IRAs) are a popular investment tool for retirement, but they also need to be taken into account when doing estate planning. Although IRAs can be used to provide for heirs either directly or through a trust, to what extent your heirs will benefit from the IRA and avoid unnecessary taxes depends on proper planning. What Is an IRA? IRAs are personal savings plans that allow you to set aside money for retirement and create tax savings. The advantage of IRAs is that yo... (Read More)

How Will the Debt-Limit Deal Affect Seniors?

Congress has agreed to allow the President to raise the debt ceiling in exchange for $2.4 trillion in budget cuts over 10 years. How this deal will affect the three major programs crucial to the elderly -- Medicare, Medicaid and Social Security -- may not be known until almost year's end, but the impact could be significant. The agreement calls for two stages of spending reductions. In the first stage, which will pare $917 billion from the budget, "entitlement" programs like Medicare, Social Sec... (Read More)

Feds Enhance Site for Comparing Nursing Homes

There is now more information available to help families evaluate nursing homes. The federal government has revamped the criteria on its "Nursing Home Compare" Web site, where consumers can compare nursing home care in the United States. In addition, new information about complaints against nursing homes will soon be available on the site. The government has approved 21 new quality-of-care measures that assess patients' experiences at both long-term care and short-term care facilities. The new m... (Read More)

Hiring a Caregiver: Should You Employ One Yourself or Go Through an Agency?

Most seniors prefer to stay at home as long as possible rather than move into a nursing home. For many families, this means eventually hiring a caregiver to look after an aging relative. There are two main ways to hire someone: directly or through a home health agency. Hiring directly: When you hire a caregiver directly, you need to consider all the tax and liability issues. As an employer, you are responsible for filing payroll taxes, tax forms, and verifying that the employee can legally work ... (Read More)

Cohabiting Seniors: Protect Your Rights

More and more seniors are living together without getting married. According to U.S. Census data, the number of cohabiting seniors nearly doubled between 1989 and 2000. For some seniors, marriage isn't financially worth it? they don't want to lose their former spouses' military, pension, or Social Security benefits. Other seniors don't want to have to pay their partners' medical expenses or deal with the objections of children worried about their inheritance. There are r... (Read More)

Two Tax Court Decisions Clarify When Long-Term Care Expenses Are Deductible

Long-term care can be very expensive, but many long-term care expenses can be deducted from your taxes. Two important recent decisions by the U.S. Tax Court provide guidance on when caregiving services are deductible. In one decision, the court ruled that payments to non-medical caregivers are still deductible as medical expenses; in the other, the court held that a written agreement is required in order for a deceased woman's estate to deduct more than $1 million in care that her son allegedly ... (Read More)

Followup Study Finds Financial Abuse of Elderly Is on Rise

Older Americans are losing $2.9 billion annually to elder financial abuse, a 12 percent increase from the $2.6 billion estimated in 2008, according to "The MetLife Study of Elder Financial Abuse: Crimes of Occasion, Desperation, and Predation Against America's Elders." The study, based on a comprehensive review of news articles on elder financial abuse, found that crimes involving strangers as the perpetrators made up more than half (51 percent) of reported cases of elder financial abuse, follo... (Read More)

Who Gets Copies of the Will After a Person Dies?

Many movies and television shows have a scene where a family gathers around a big table after a relative has died to listen to the reading of the will. While this is a great dramatic scene, it doesn't usually happen like that in the real world. There is no requirement that a will be read out loud to anyone. So what does happen with the will? Once the will is located, it should be given to the estate's attorney. Instead of reading the will out loud, the estate's attorney sends copies of the will ... (Read More)

The Parent Care Conversation

Dan Taylor, The Parent Care Conversation: Six Strategies for Transforming the Emotional and Financial Future of Your Aging Parents (Penguin Books, New York, NY, 2006. 262 pages).$14.00 from Amazon (click on book to order) One of the hardest things for aging parents and their adult children to do is sit down and have a frank discussion about the future. Such conversations are difficult for two principal reasons: they involve acknowledging the realities of aging and mortality, and financial detai... (Read More)

Prenuptial Agreements Can Be an Estate Planning Tool

As more and more people marry more than once, prenuptial agreements have become an important estate planning tool. Without a prenuptial agreement, your new spouse may be able to invalidate your existing estate plan. Such agreements are especially helpful if you have children from a previous marriage or important heirlooms that you want to keep on your side of the family. A prenuptial agreement can be used in a second marriage when both parties have children. For example, suppose you get remarrie... (Read More)

Adult Children Losing $3 Trillion in Caring for Aging Parents

Americans who take time off work to care for their aging parents are losing an estimated $3 trillion dollars in wages, pension and Social Security benefits, according to a new MetLife study. Meanwhile, the percentage of adult children providing basic care for their parents has skyrocketed in recent years. Nearly 10 million adults age 50 and over care for an aging parent, MetLife says. For the individual female caregiver, the cost impact of caregiving in terms of lost wages, pension and Social... (Read More)

Powers of Attorney Come in Many Flavors

Q: My friends and I were recently discussing our estate plans, and the subject of powers of attorney came up. It seems that we have different understandings as to what they look like and how they can be used. Can you provide me with a short lesson which I can share with my friends?A.  Sure. Powers of attorney are very important legal documents.  In their basic structure you (the principal)  delegate to someone whom you trust (your agent or "attorney-in-fact") the power to engage in financial ... (Read More)

Daily Money Managers Can Help Assist Seniors with Financial Matters

Having difficulty keeping on top of your bills? Maybe a daily money manager can help. Daily money managers can assist elderly individuals with handling anything from routine bill-paying to more complicated tasks like filing medical insurance claims. A daily money manager -- a member of a relatively new profession that now has its own professional association -- is an individual experienced in dealing with mundane financial matters that can build up if they aren't taken care of. Money managers ca... (Read More)

Resolving Conflicts Between Co-Agents on a Power of Attorney

Having power of attorney over a family member is a big responsibility and sometimes it makes sense to share that responsibility with someone else. But when two people are named co-agents under a power of attorney, conflicts can arise. Unfortunately, if the conflict can't be resolved, it may be necessary to get a court involved. A power of attorney allows a person to appoint someone called an "agent or "attorney-in-fact" -- to act in his or her place for financial purposes when and if the person ... (Read More)

Mom Always Liked You Best

Arline Kardasis, Rikk Larsen, Crystal Thorpe, and Blair Trippe. Mom Always Liked You Best: A Guide to Resolving Family Feuds, Inheritance Battles & Eldercare Crises. Elder Decisions. 2011. 123 pages. $14.95 from Amazon (Click on book to order).Making decisions about elderly parents can cause conflict even in the best of families. In this book, three experienced elder mediators provide step-by-step advice and tools for managing disputes with siblings about elder care, inheritance issues and ... (Read More)

Bank of America Says Power of Attorney Does Not Grant Access to Online Banking

When one spouse suffers from dementia, the other spouse often must take over managing the couple's finances, usually with the help of a power of attorney. But things don't always go smoothly with financial institutions. Just ask Chicago resident Eva Kripke, who has been handling money matters since her husband, Sidney, was diagnosed with Lewy body dementia four years ago. Acting as agent for her husband under a power of attorney, for years Ms. Kripke had been going online to check her husband's... (Read More)

Why You Need to Plan for Long-Term Care

Thinking about a time when you will need help taking care of yourself is not fun. That is why most people put off discussing long-term care until it can't be ignored. But it is better to start long-term care planning early. Here are some reasons to start planning now:People are living longer and are more likely to need long-term care. Life expectancies keep increasing, which means you are more likely to need help at some point. At least 70 percent of people over age 65 will require some long-ter... (Read More)

Program Helps Elderly Remain Together at Home, Instead of Nursing Home

Q.  My husband has become frail, and his doctor says he may need to go into a nursing home. However, neither of us is happy with that plan. I want to keep him home. Is there a program that might help us?A.  Yes. The “Program for All Inclusive Care for the Elderly” (“PACE”) may be just the ticket.  The PACE program has been designed to help the elderly live independently as long as possible in their own homes or in a home-like setting, which is exactly what both of you desire.   Here... (Read More)

States May Now Extend Medicaid's Spousal Protections to Same-Sex Partners

The U.S. Department of Health and Human Services (HHS) has announced it will now permit states to extend Medicaid long-term care protections long available to spouses of nursing home residents to same-sex domestic partners as well. While nursing home residents must spend down to $2,000 (or slightly more in some states) of countable assets before Medicaid will pick up their cost of care, Medicaid law has provisions to avoid forcing the healthy (or "community") spouse to give up the family home an... (Read More)

New Rule Requires Homebound Medicare Patients to See Doctors

Medicare patients typically receive home care services because it is difficult or impossible for them to leave their homes. But the Centers for Medicare and Medicare Services (CMS) has now implemented a new Medicare requirement that doctors must meet face-to-face with their patients who are receiving home health care in order for the patient's home health visits to be reimbursed. Under the requirement, Medicare beneficiaries will have to see doctors 90 days before or 30 days after starting home ... (Read More)

Caregiver Contracts: A Growing Planning Trend for Families

Many people are willing to voluntarily care for a parent or loved one without any promise of compensation. Even so, a growing number of people are entering into caregiver contracts (also called personal service or personal care agreements) with their family members. Having such a contract has many benefits. It rewards the family member doing the work. It can help alleviate tension between family members by making sure the work is fairly compensated. In addition, it can be a be a key part of Medi... (Read More)

Responsibility for a Deceased Relative's Debts

The loss of a loved one is tough to begin with, but if the loved one left debts behind, it can be even tougher. Family members generally should not have to pay for a decedent's debts, but it is important to know your rights because collection agencies may target the decedent's relatives. Usually the loved one's estate is responsible for paying any debts. If the estate does not have enough money, the debts will go unpaid. The debt collectors may not collect payment from relatives (unless they wer... (Read More)

House Budget Cutters Prescribe Radical Surgery for Medicare, Medicaid

House Budget Committee Chairman Paul Ryan (R-WI) has proposed a budget that would radically reshape both the Medicare and Medicaid programs and shift more costs to seniors and people with disabilities. The plan may well become the Republican Party's de facto platform in 2012.The proposed budget, aimed at shrinking the nation's deficit as well as the size of government, slashes $1.43 trillion from Medicare and Medicaid over the next 10 years, in part by bringing the curtain down on the popular Me... (Read More)

You Can't Opt Out of Medicare Without Losing Social Security, Judge Rules

Retirees cannot disenroll from Medicare Part A without also losing their Social Security benefits and refunding all the money paid to them, a federal judge has ruled. The judge dismissed a case, Hall v. Sebelius , brought by three retired federal employees who have reached age 65 and are receiving Social Security Retirement benefits, but who would like to drop their Medicare Part A coverage, which pays for care in institutions like hospitals. Anyone who has reached age 65 and who is entitled to ... (Read More)

They're Your Parents, Too!

Francine Russo. They're Your Parents, Too! How Siblings Can Survive Their Parents' Aging Without Driving Each Other Crazy. Bantam Books. New York, NY. 2010. 286 pages. $17.16 from Amazon (click on book to order)Sibling relationships can be difficult even in the best of times, but add in an aging parent and there is bound to be some tension. They're Your Parents, Too! offers insight and strategies to help siblings work together when established family roles are upended. Written by Francine Russo... (Read More)

What Is Asset Protection Planning?

Asset protection planning is about protecting your assets from creditors -- and it is not just for the super-wealthy. Anyone can get sued. Lawsuits can stem from car accidents, credit card debt, bank foreclosures, or unhappy customers, among many other things. If someone wins a monetary judgment against you, your family could become bankrupt trying to pay it off. To keep your assets away from creditors, you need to move them somewhere where creditors can't reach them. Asset protection techniques... (Read More)

AARP Sues Government Over Reverse Mortgage Foreclosures

Charging that reverse mortgage borrowers were caught in what amounts to a regulatory bait and switch, the AARP's legal arm is suing the Department of Housing and Urban Development (HUD) on behalf of three now-deceased borrowers' surviving spouses who are facing imminent foreclosure and eviction from their homes. The case involves the spouses of individuals who took out Home Equity Conversion Mortgage (HECM), which are the most widely available reverse mortgage and are administered by HUD. A rev... (Read More)

2011 Long-Term Care Insurance Price Index Announced

A 55-year-old individual can expect to pay $1,480 annually for $169,000 in current benefits, which would grow to $354,000 of coverage by age 80, according to the 2011 Long-Term Care Insurance Price Index, an annual report from the American Association for Long-Term Care Insurance, an industry group. A 55-year-old couple purchasing long-term care insurance protection can expect to pay $2,350 a per year (combined) for about $338,000 of current benefits, which would grow to about $800,000 of combin... (Read More)

Consider Putting Gifts to Grandchildren in a Trust

Gifting assets to your grandchildren isn't just a nice thing to do; it can reduce the size of your estate and the tax that will be due upon your death. Grandparents can give their grandchildren up to $13,000 a year (in 2011) without having to report the gifts. While you can make an outright gift, pay health care and school costs directly, or put the money in a custodial account, putting the money into a trust has some major advantages. With the help of an attorney, you can draft a trust that... (Read More)

The Savvy Senior

Jim Miller. The Savvy Senior (Hyperion, New York, N.Y., 2004; 250 pages).$13.95 from Amazon.com (click on book to order)You will indeed be savvy about senior issues after finishing this information-packed book. It offers a wealth of resources and basic, need-to-know information on a broad range of topics of vital interest to seniors. Within the book's 250 pages you will find information on locating volunteer opportunities for seniors, avoiding identity theft, fall-proofing a home, tracking... (Read More)

A Trip to the Hospital May Put Assisted Living Residents on Medicaid at Risk of Eviction

Assisted living facility residents covered by Medicaid are at risk of being evicted if they leave the facility, even for a temporary hospitalization, the National Senior Citizen's Law Center (NSCLC) warns in a recently released White Paper on the problem. Ironically, Medicaid officials in most states have the power to prevent these evictions but in most cases are not exercising it. Most state Medicaid programs pay for services not just in nursing homes but in assisted living facilities, which a... (Read More)

Free Medicare Preventive Care Has Kicked In

One of the benefits of the health reform law took effect January 1, 2011: free preventive services for Medicare recipients. Under the law, people with regular Medicare will no longer have to pay a co-pay, coinsurance or deductible to receive preventive services that are highly recommended by the U.S. Preventive Services Task Force -- services that include screenings for breast cancer, colon cancer, diabetes and heart disease, as well as smoking cessation counseling. Private Medicare plans (also ... (Read More)

As Predicted, Social Security Closes Door on Benefits 'Do-Over' Strategy

As ElderLawAnswers warned in a previous article, the Social Security Administration has eliminated a loophole that had allowed Social Security recipients to start receiving benefits when they first became eligible without being permanently locked in to the lower benefit level. Although you can collect Social Security benefits starting at age 62, if you do, your benefits will be significantly lower than if you wait until your full retirement age or even later. About half of Americans file at 62, ... (Read More)

Do Surviving Spouses Have a Right to a 401(k) or an IRA?

When choosing a beneficiary for a retirement plan, it is important to understand how your spouse will be treated under the plan. Surviving spouses are treated differently under 401(k)s and individual retirement accounts (IRAs). While a 401(k) provides protections for a surviving spouse, an IRA does not.Because the 401(k) is an employee-based retirement system, it is governed by a federal law, the Employee Retirement Income Security Act of 1974 (ERISA). Under ERISA, a surviving spouse is usually ... (Read More)

The 101 Biggest Estate Planning Mistakes

Herbert E. Nass. The 101 Biggest Estate Planning Mistakes. John Wiley & Sons, Hoboken, NJ. 2010. 279 pages. $12.21 from Amazon (click on book to order)Learning what not to do can be just as instructive as learning what to do. That is the premise of The 101 Biggest Estate Planning Mistakes, an entertaining and informative estate planning guide. Author Herbert Nass, an estate planning attorney for 25 years who has represented several celebrities, uses examples from celebrity estate plans as well ... (Read More)

Federal Program Helps Nursing Home Residents Move Home

Once someone enters a nursing home, it isn't always easy to move out again. While some residents may prefer nursing home care to living on their own, others would rather be independent. For residents who want to move out but need some assistance to live on their own, there may be help available. A federal program is trying to help nursing home residents in some states regain their independence. Residents who have been in a nursing home for a long time may have to start all over again when they m... (Read More)

Obama Signs Tax-Cut Bill Setting Estate Tax Exemption at $5 Million for Two Years

Congress has passed and President Obama has signed into law the deal extending the Bush tax cuts that he struck with Congressional Republicans. The legislation restores the estate tax for two years at a 35 percent tax rate, with estates up to $5 million exempt from paying any tax ($10 million for couples). If Congress does not change the law in the interim, in 2013 the estate tax will revert to what it was scheduled to be in 2011 -- a 55 percent rate and a $1 million exemption. The $801 billion ... (Read More)

As Predicted, Social Security Closes Door on Benefits 'Do-Over' Strategy

As ElderLawAnswers warned in a previous article, the Social Security Administration has eliminated a loophole that had allowed Social Security recipients to start receiving benefits when they first became eligible without being permanently locked in to the lower benefit level. Although you can collect Social Security benefits starting at age 62, if you do, your benefits will be significantly lower than if you wait until your full retirement age or even later. About half of Americans file at 62, ... (Read More)

Do Surviving Spouses Have a Right to a 401(k) or an IRA?

When choosing a beneficiary for a retirement plan, it is important to understand how your spouse will be treated under the plan. Surviving spouses are treated differently under 401(k)s and individual retirement accounts (IRAs). While a 401(k) provides protections for a surviving spouse, an IRA does not.Because the 401(k) is an employee-based retirement system, it is governed by a federal law, the Employee Retirement Income Security Act of 1974 (ERISA). Under ERISA, a surviving spouse is usually ... (Read More)

The 101 Biggest Estate Planning Mistakes

Herbert E. Nass. The 101 Biggest Estate Planning Mistakes. John Wiley & Sons, Hoboken, NJ. 2010. 279 pages. $12.21 from Amazon (click on book to order)Learning what not to do can be just as instructive as learning what to do. That is the premise of The 101 Biggest Estate Planning Mistakes, an entertaining and informative estate planning guide. Author Herbert Nass, an estate planning attorney for 25 years who has represented several celebrities, uses examples from celebrity estate plans as well ... (Read More)

Federal Program Helps Nursing Home Residents Move Home

Once someone enters a nursing home, it isn't always easy to move out again. While some residents may prefer nursing home care to living on their own, others would rather be independent. For residents who want to move out but need some assistance to live on their own, there may be help available. A federal program is trying to help nursing home residents in some states regain their independence. Residents who have been in a nursing home for a long time may have to start all over again when they m... (Read More)

Obama Signs Tax-Cut Bill Setting Estate Tax Exemption at $5 Million for Two Years

Congress has passed and President Obama has signed into law the deal extending the Bush tax cuts that he struck with Congressional Republicans. The legislation restores the estate tax for two years at a 35 percent tax rate, with estates up to $5 million exempt from paying any tax ($10 million for couples). If Congress does not change the law in the interim, in 2013 the estate tax will revert to what it was scheduled to be in 2011 -- a 55 percent rate and a $1 million exemption. The $801 billion ... (Read More)

IRS Issues Long-Term Care Premium Deductibility Limits for 2011

Social Security benefits may be stagnant, but the IRS is increasing the amount you can deduct on your 2011 taxes as a result of buying long-term care insurance. Premiums for "qualified" long-term care insurance policies (see explanation below) are tax deductible provided that they, along with other unreimbursed medical expenses, exceed 7.5 percent of the insured's adjusted gross income. These premiums -- what the policyholder pays the insurance company to keep the policy in force -- are deductib... (Read More)

Courts Reject 'Urban Legend' That Medicare Nursing Coverage Requires Improvement

In welcome news for seniors and the disabled with chronic conditions, two federal courts in the past two months have ruled that Medicare's coverage of skilled care does not require a beneficiary to show improvement. Instead, both courts said that Medicare can pay for skilled care if it is needed simply to preserve a patient's current functioning or prevent further decline. Home health agencies and nursing homes that contract with Medicare routinely terminate the Medicare coverage of a beneficiar... (Read More)

47 Secret Veterans' Benefits for Seniors

Victoria Collier. 47 Secret Veterans' Benefits for Seniors. Collier Communications, LLC. Scottdale, GA. 2010. 110 Pages. $14.95 from Amazon (Click on book to order)Many veterans don't realize all the benefits available to them and their family members. 47 Secret Veterans' Benefits for Seniors provides older veterans and their advocates with insider tips to help them get their full benefits, some of which pay for long-term care services. As a former member of the U.S. Air Force, Georgia elder l... (Read More)

Hospital Trying to Revoke Daughter's Power of Attorney

... (Read More)

New Medicare Premium, Deductible and Co-Pay Charges for 2011

The basic premium for Medicare Part B will be $115.40 a month in 2011, up from $110.50 in 2010 (a 4.4 percent increase). But because there will be no cost of living benefit increase for Social Security recipients for 2011, most beneficiaries will be exempted from paying this increase and will instead pay the same $96.40 premium amount they have paid since 2008. A "hold-harmless" provision in the Medicare law prohibits Part B premiums from rising more than that year's cost of living increase in ... (Read More)

Some Seniors Getting Sticker Shock When Moving From Hospital to Nursing Home

A growing number of Medicare beneficiaries are spending days in the hospital before being transferred to a nursing home, only to find that Medicare won't pay for the first 20 days of their nursing home stay, as it typically would. The reason, the beneficiaries later learn, is that they had never actually been "admitted" to the hospital, but were only under "observation." Medicare covers nursing home stays entirely for the first 20 days, but only if the patient was first admitted to a hospital as... (Read More)

Avoid Disagreements Between Your Power of Attorney Holder and Health Care Proxy

A durable power of attorney and a health care proxy are two very important estate planning documents. Both allow other people to make decisions for you in the event you are incapacitated. Because the individuals chosen will have to coordinate your care, it is important to pick two people who will get along. A power of attorney allows a person you appoint -- your agent or "attorney-in-fact" -- to act in your place for financial purposes when and if you ever become incapacitated. A health care pro... (Read More)

Trial and Heirs: Famous Fortune Fights

Andrew Mayoras & Danielle Mayoras. Trial and Heirs: Famous Fortune Fights. Wise Circle Books. Long Beach, CA. 2009. 277 pages. $19.95 from Amazon (click on book to order). Can we learn anything about estate planning from Jimi Hendrix, Princess Di, and Sonny Bono? Yes! Written by a husband-and-wife attorney team, Trial and Heirs uses fascinating celebrity cases as examples to illustrate important estate planning basics. The story of the protracted battle over Jimi Hendrix's estate is employed t... (Read More)

Average Cost of a Nursing Home Room Tops $83,000 a Year

Nursing home and assisted living rates rose significantly from 2009 to 2010, according to the 2010 MetLife Market Survey of Long-Term Care Costs. Private room nursing home rates rose 4.6 percent to $83,585 a year or $229 a day, while assisted living facility costs climbed 5.2 percent on average to $39,516 a year or $3,293 a month. The average cost of home health care aides and adult day care were unchanged, after having jumped about 5 percent the year before. Home care aides still average $21 ... (Read More)

Reviewing Your Medicare Plans Is More Important Than Ever This Year

Medicare open enrollment is coming! During the annual open enrollment period, which runs from November 15 to December 31, you may switch Medicare drug or health care plans. While you should review your coverage every year, this year it is particularly important because of changes brought on by the new health care law. As the health care reform law goes into effect, there are a number of changes affecting seniors. Even if the new health law will not affect your plan, you should still review your ... (Read More)

The New Paradigm For Seniors: Estate Planning for Long-Term Care

Q. My wife and I signed basic wills in our 40s when our concern was passing our assets to our children in the event of death. However, we are now both in our mid 70's and we are now more concerned about the cost of long-term care for ourselves. Should we now redesign our estate plan to address our long-term care concerns? A. That’s a great question, and one that is being asked by seniors with increasing frequency. In approximately 1900, the average lifespan was about 47 years, and through mos... (Read More)

Consumer Friendly Website Allows Seniors to Check Program Eligibility

Q: I hear that there are many federal and state programs designed to help seniors of limited means apply for extra help with prescription drug coverage, pay utility bills, groceries, health care and other needs. However, I don’t know where to go to find out about them. Is there some central source that might be able to help me? A. Yes, indeed. The National Council on Aging just launched a new website to help seniors get the benefits they deserve, called "BenefitsCheckUp". It is interactive, me... (Read More)

The Ethical Will: Putting Your Values on Paper

Q.  In connection with creating our estate planning documents, my husband and I would like to leave our children and grandchildren something more than just our money and assets. We would like to leave them a sense of our values. A friend mentioned something to us about an "Ethical Will". Can you tell us anything about themA.    An Ethical Will is really a personal statement that carries your "voice" to future generations. It can be as simple as a one-page letter of love to a novella length m... (Read More)

The Virtues of Private Reverse Mortgages

 For many years, banks have been touting the advantages of so-called "reverse" mortgages as a way for cash-strapped seniors to tap into the equity in their homes in order to meet expenses, whether simply for day-to-day living or to pay for the increased cost of home care.The basic concept of a reverse mortgage is that the bank will make payments to the homeowner, rather than the other way around. Payments can be in the form of a single lump sum, a line of credit, or a stream of monthly payments... (Read More)

How Married Couples May Increase Their Social Security Retirement Income By Choosing A Spousal Subsidy

Q: I am approaching age 66 and my wife is almost 62. Each of us has a work record, although my earnings are greater. I heard that there may be a way for us to receive a larger Social Security retirement income by my opting for only a Spousal Benefit now based upon her work record. If so, how does that work?A. Yes, you are correct. The key is for at least one of you to opt only for a Spousal Benefit on the other’s work record now, and for the other to delay beginning his/her own retirement, up ... (Read More)

Obama Signs Major Income & Estate Tax Cuts; Big Benefits For Wealthy

Last Updated: 12/17/2010 10:38:06 PM On 12/17/2010, President Obama signed major legislation implementing the tax-cut deal negotiated with Congressional Republicans. As expected the legislation restores the estate tax for two years with an exemption of $5 million and a 35 percent tax rates for estates over that amount, but the new law also contains several unexpected provisions that would make it easier for the well-off to transfer their wealth tax-free.One of the provisions makes the new ... (Read More)

Nursing Home Can't Honor Resident's Request for White-Only Caregivers

  Nursing Home Can't Honor Resident's Request for White-Only Caregivers Last Updated: 9/28/2010 5:53:10 PM A federal court in Indiana has ruled that a nursing home cannot honor patients' requests for caregivers based on race. The case, which pitted nursing home residents' rights against discrimination law, establishes that there may be a limit to a nursing home resident's right to choose a health care provider. Brenda Chaney, who is black, worked at Plainfield Healthcar... (Read More)

Tips on Providing for Children with Disabilities

  Tips on Providing for Children with Disabilities Last Updated: 10/1/2010 9:36:00 AM One of the major concerns for parents or grandparents of children with disabilities is how to provide for their financial future. Here are some legal tips: Buy enough life insurance. A parent is irreplaceable, but someone will have to fill in. In all likelihood, that person or family will have to pay for at least some services the parent or parents had provided when able. If the estate is not... (Read More)

Death for Beginners: Your No-Nonsense, Money-Saving Guide to Planning for the Inevitable

  Death for Beginners: Your No-Nonsense, Money-Saving Guide to Planning for the Inevitable Last Updated: 9/24/2010 3:49:01 PM Karen Jones. Death for Beginners: Your No-Nonsense, Money-Saving Guide to Planning for the Inevitable. Linden Publishing. Fresno, CA. 2010. 244 pages. $11.01 from Amazon (click on book to order)This is the one "how-to" book that no one wants to believe they'll need -- but if the past is any guide, it covers a topic that all of us will encounter event... (Read More)

Social Security May Soon Put Lid on Benefits 'Do-Over' Strategy

  Social Security May Soon Put Lid on Benefits 'Do-Over' Strategy Last Updated: 9/17/2010 4:15:07 PM The Social Security Administration may soon eliminate a loophole that allows Social Security recipients to claim benefits early and then apply for them again years later when they are eligible for larger checks. Although you can collect Social Security benefits starting at age 62, if you do, your benefits will be significantly lower than if you wait until your full retir... (Read More)

Prevent Your Power of Attorney from Being Ignored

  Prevent Your Power of Attorney from Being Ignored Last Updated: 10/13/2010 12:08:58 PM A durable power of attorney is one of the most important estate planning documents there is. It allows someone you appoint -- your agent or "attorney-in-fact" -- to act in your place for financial purposes when and if you ever become incapacitated. However, many people experience difficulty in getting banks or other financial institutions to recognize the authority of an agent under a power... (Read More)

Survey Finds Medicare Doesn't Work As Well for Younger, Disabled Beneficiaries

  Survey Finds Medicare Doesn't Work As Well for Younger, Disabled Beneficiaries Last Updated: 8/16/2010 4:24:42 PM A new survey of nearly 4,000 Medicare beneficiaries has found that Medicare beneficiaries who are younger than 65 receive fewer medical services, have a harder time paying for the medical care that they do receive, and are more likely to feel sad or depressed than older beneficiaries. The survey, which was conducted between 2008 and 2009, also highlights the d... (Read More)

Study Shows Diversity of Grieving Among Caregivers

  Study Shows Diversity of Grieving Among Caregivers Last Updated: 8/12/2010 11:23:38 AM A new study by the University of Michigan reveals that racial and ethnic differences play a role in the emotional attitudes of caregivers of Alzheimer's patients. These findings could help improve support services for caregivers. The study, conducted by James McNally of the Inter-university Consortium for Political and Social Research, part of the University of Michigan's Institute for Soci... (Read More)

So Far Away: Twenty Questions for Long-Distance Caregivers

  So Far Away: Twenty Questions for Long-Distance Caregivers Last Updated: 8/24/2010 3:49:55 PM National Institute on Aging. So Far Away: Twenty Questions for Long-Distance Caregivers. 48 pages.Click on cover to download the book for freeCaregiving can be difficult in any situation, but it is especially difficult if you don't live near your loved one. According to the National Institute on Aging (NIA), approximately 7 million adults provide caregiving for loved ones who li... (Read More)

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

  Charitable Remainder Trusts: Income for Life and a Good Deed at Death 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 asset... (Read More)

GAO Report Raises Some Concerns About Regulation of Retirement Communities

  GAO Report Raises Some Concerns About Regulation of Retirement Communities Last Updated: 7/23/2010 5:24:04 PM A report by the Government Accountability Office (GAO) warns that given the weak economy, Continuing Care Retirement Communities (CCRCs) are facing challenging times. While few CCRCs have gone bankrupt so far, CCRCs are primarily regulated by states rather than by the federal government, and states vary in how much they help ensure that CCRCs stay solvent or don't sha... (Read More)

Web Site Allows Elderly to Check Program Eligibility

  Web Site Allows Elderly to Check Program Eligibility Although there are nearly 1,000 federal and state programs available to help older persons, it is estimated that more than five million seniors are currently missing out on at least some of them for which they qualify.The National Council on Aging (NCoA) has developed a Web site that makes it a snap to research a person's potential eligibility for these programs. The site, BenefitsCheckUp, features a database of hundred... (Read More)

Nursing Home Residents Have Rights!

  Nursing Home Residents Have Rights! Last Updated: 7/27/2010 4:09:55 PM Many people incorrectly believe that once someone enters a nursing home, their freedom is over. In fact, nursing home residents have many rights, and it is important to know those rights and to be able to enforce them. Nursing home residents' rights are protected under federal law. In broad terms, nursing homes are required to ensure that every nursing home resident be given whatever services are necessary... (Read More)

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

  Steinbrenner Fourth Billionaire in 2010 to Escape Taxes, If Not Death 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 ... (Read More)

10 Reasons to Create an Estate Plan Now

  10 Reasons to Create an Estate Plan Now Many people think that estate plans are for someone else, not them. They may rationalize that they are too young or don't have enough money to reap the tax benefits of a plan. But as the following list makes clear, estate planning is for everyone, regardless of age or net worth. (For more information on estate planning, see our Estate Planning section.) 1. Loss of capacity. What if you become incompetent and unable to manage you... (Read More)

BOOK REVIEW: The Hard Times Guide to Retirement Security

  BOOK REVIEW: The Hard Times Guide to Retirement Security Last Updated: 7/21/2010 2:39:05 PM Miller, Mark. The Hard Times Guide to Retirement Security. John Wiley & Sons, Inc., Hoboken, N.J. 2010. 223 pages.$11.53 at Amazon, $11.69 at Books-A-Million (click on book to purchase).The timing couldn't be worse, as author Mark Miller points out in his introduction: The largest generation our nation has ever seen is approaching retirement during the worst economic downturn since th... (Read More)

Health Reform Law's Pre-Existing Condition Plan Kicks In

  Health Reform Law's Pre-Existing Condition Plan Kicks In Last Updated: 8/13/2010 2:40:42 PM Many Americans, including baby boomers too young for Medicare and disabled adults of any age, have been unable to obtain private health coverage at any price because of a pre-existing health condition. As part of the roll-out of the new health reform law, the U.S. Department of Health and Human Services (HHS) has announced the establishment of a new Pre-existing Condition Insurance... (Read More)

Court Again Rules That Part D Recipients Must Repay Mistaken Refunds

Court Again Rules That Part D Recipients Must Repay Mistaken Refunds Last Updated: 6/24/2010 4:23:59 PMA federal appeals court has again ruled that 230,000 Medicare Part D beneficiaries who were erroneously mailed a premium refund do not have the right to apply for a waiver excusing them from repaying the money. Action Alliance of Senior Citizens v. Sebelius (D.C. Cir., No. 09-5191, June 18, 2010). Because of a computer error, in August 2006 approximately 230,000 people were mistakenly mailed... (Read More)

Crummey Trusts: A Way to More Safely Give Gifts to Children

Crummey Trusts: A Way to More Safely Give Gifts to Children Last Updated: 7/27/2010 4:19:45 PMMany parents and grandparents want to pass their wealth to their children while they are still alive. Gifts to children or grandchildren can be a good way to reduce a taxable estate. While you can give a child or grandchild $13,000 (in 2010) a year without incurring taxes on the gift, you probably don't want a young child receiving the money outright. A "Crummey" trust provides a way to take advantag... (Read More)

Estate Planning Smarts: A Practical, User-Friendly, Action-Oriented Guide

Estate Planning Smarts: A Practical, User-Friendly, Action-Oriented Guide Last Updated: 6/22/2010 10:55:20 AMDeborah Jacobs. Estate Planning Smarts: A Practical, User-Friendly, Action-Oriented Guide. DJWorking Unlimited., New York, NY. 2009. 352 pages. $13.57 at Amazon (click on book to purchase).Planning an estate involves fitting together many pieces. You need to think about wills, trusts, life insurance, guardians, executors -- the list goes on and on. Estate Planning Smarts explains in a ... (Read More)

Online Legal Documents Company Sued Over Flawed Estate Plan

Online Legal Documents Company Sued Over Flawed Estate Plan Last Updated: 6/18/2010 11:50:08 AM LegalZoom, one of the most prominent sellers of do-it-yourself wills and other estate planning documents, is the target of a class action lawsuit in California charging that the company engages in deceptive business practices and is practicing law without a license. The lawsuit was filed in Los Angeles Superior Court on May 27, 2010, by Katherine Webster, who is the niece of the late Anthony J. Fer... (Read More)

Report Looks at What People Are Paying for Long-Term Care Insurance

Report Looks at What People Are Paying for Long-Term Care Insurance Last Updated: 6/8/2010 11:59:52 AMMore than a third (35.4 percent) of individuals who recently purchased long-term care insurance are paying less than $1,499 a year for the coverage, according to a new report by the American Association for Long-Term Care Insurance, an industry trade organization. The organization analyzed data on some 93,500 new long-term care insurance buyers. Age at the time of application plays an importa... (Read More)

Getting Social Security While Living Overseas

Many retirees look forward to traveling in their retirement, and more and more are actually retiring overseas, in part as a way to stretch savings. But what happens to retirees' federal benefits while they are out of the country? The short answer is that although Social Security benefits are available to retirees in other countries, Medicare is not. In this installment we look at Social Security. (Click here for our article on overseas travel and Medicare.) As is not the case with Medicare, reti... (Read More)

How Risky Is Buying a Limited-Duration Long-Term Care Insurance Policy?

More consumers are buying shorter-duration policies as a way to keep the cost of long-term care insurance affordable. For example, in 2009 almost one-third of individual buyers purchased a three-year benefit period policy, according to the American Association for Long-Term Care Insurance. But is that sufficient coverage or is the policyholder likely to run out of benefit dollars? According to a new consumer guide by the industry trade association, the risk of running out of benefits on a thre... (Read More)

The Savage Number: How Much Money Do You Need to Retire?

Terry Savage. The Savage Number: How Much Money Do You Need to Retire? (John Wiley & Sons, Hoboken, New Jersey, 2005. 256 pages) $24.95 from Amazon (Click on book to order). Having enough money to retire is an important goal for many people, and The Savage Number attempts to help people understand how to reach that goal. As defined by the author, Terry Savage, a prominent expert on personal finance and investing, "the Savage Number" is how much money you need in order to retire. Her book is... (Read More)

Investigative Report Questions Five-Star Rating System for Nursing Homes

How reliable are the ratings given nursing homes under the five-star rating system that the federal government recently instituted? Not very, according to an investigative report by the Massachusetts magazine Commonwealth. In an in-depth discussion of the rating system, the report highlights numerous instances in which facilities received above-average overall ratings despite being cited for serious deficiencies in care, some of which resulted in serious injuries of residents. The rating system... (Read More)

Make Sure Your Life Insurance Is Not Taxed at Your Death

Last Updated: 5/27/2010 4:21:23 PMAlthough your life insurance policy may pass to your heirs income tax-free, it can affect your estate tax. If you are the owner of the insurance policy, it will become a part of your taxable estate when you die. While the federal estate tax is currently zero, the exemption will be $1 million and the rate will increase to 55 percent on January 1, 2011, if Congress fails to act in the interim. And state estate taxes are still in effect now. You should make sure yo... (Read More)

Social Security Adds New Online Medicare Application

  Social Security Adds New Online Medicare Application Last Updated: 5/20/2010 8:56:10 AM Time was when Medicare eligibility and one's full retirement age for Social Security were both 65, but that's no longer the case. While Medicare's age of eligibility remains 65, Social Security's full retirement age is now 66 for those just becoming eligible, and this will soon rise to 67. But just because you're not signing up for Social Security yet doesn't mean you should postpone signi... (Read More)

Getting Medicare While Traveling or Living Overseas

  Getting Medicare While Traveling or Living Overseas Last Updated: 4/26/2010 11:46:14 AM Many retirees look forward to traveling in their retirement, and more and more are actually retiring overseas, in part as a way to stretch savings. But what happens to retirees' federal benefits while they are out of the country? The short answer is that although Social Security benefits are available to retirees in other countries, Medicare generally is not. In this installment we look at... (Read More)

Circles of Care: How to Set Up Quality Home Care for Our Elders.

  Circles of Care: How to Set Up Quality Home Care for Our Elders. Last Updated: 4/28/2010 12:02:01 PM Ann Cason. Circles of Care: How to Set Up Quality Home Care for Our Elders. Shambala Publications, Inc. Boston, Mass. 2001. 181 pages. $17.05 at Amazon. Click on book to order. Most seniors, when given a choice, would prefer to remain at home instead of go to a nursing home. Circles of Care explains how to provide quality care for seniors in their own homes. Drawing on 20 ... (Read More)

Powers of Attorney Come in Different Flavors

  Powers of Attorney Come in Different Flavors Last Updated: 4/29/2010 11:01:52 AM A power of attorney is a very important estate planning tool, but in fact there are several different kinds of powers of attorney that can be used for different purposes. Before executing this crucial document, it is important to understand what your options are. A power of attorney allows a person you appoint -- your "attorney-in-fact" or agent -- to act in your place for financial or other purp... (Read More)

Steps to Take in Advance of Death or Disability

Steps to Take in Advance of Death or Disability Last Updated: 4/29/2010 11:05:37 AMNo one wants to face the fact that our loved ones will not be with us forever. Facing our own mortality is frightening as well. Although none of us wants to contemplate a time when we or a loved one might become disabled or die, it is important to be prepared. There are many steps families can take in advance of death or disability to avoid future conflicts or uncertainties:Don't be afraid to start the conversat... (Read More)

Social Security Calculator Now Available to Delayed Retirees

  Last Updated: 2/23/2010 3:16:29 PM Social Security's Retirement Estimator is now available for people who have signed up for Medicare but have not yet signed up for Social Security because they are delaying retirement. The popular calculator allows you to project what your monthly Social Security benefit will be based on your actual work record. Previously, "Medicare only" beneficiaries could not use the estimator and had to contact a Social Security office to get an estimate of... (Read More)

Exchange an Old Annuity or Life Insurance for Long-Term Care Insurance

  Last Updated: 3/31/2010 12:05:46 PM A new law makes the purchase of products that combine annuities or insurance policies with long-term care insurance more attractive. As ElderLawAnswers previously reported, these "hybrid" products are gaining in popularity due to a law that went into effect January 1, 2010, making distributions from life insurance and annuities tax-free when used to pay for long-term care. The same law also allows owners of annuities or life insurance policies... (Read More)

The Forgetting

  Last Updated: 3/29/2010 11:52:44 AM David Shenk. The Forgetting. Alzheimer's: Portrait of an Epidemic . New York, N.Y.: Anchor Books, 2002. 294 pages.$10.17 from Amazon.com (click on book to order)Alzheimer's is a progressive and ultimately fatal neurological affliction that interferes with and extinguishes brain cells. It kills nearly 100,000 Americans a year, and nearly half of those 85 and older have Alzheimer's or a related dementia.In The Forgetting, journalist D... (Read More)

Letting a Computer Plan Your Estate: Is It Worth the Risk?

  Last Updated: 3/31/2010 1:43:53 PM Many Web sites offer customized, do-it-yourself wills and other estate planning documents. These computer-based services appear to offer a cost-effective and convenient alternative to visiting an estate planning or elder law attorney. But is online estate planning worth the convenience and initial savings? How do the documents created compare to those that a qualified attorney would produce? To answer these questions, ElderLawAnswers asked two... (Read More)

Health Reform: What Changes Are in Store for the Elderly?

  Last Updated: 4/8/2010 2:44:42 PM After a year of legislative wrangling and premature forecasts of death, historic legislation overhauling the nation's health insurance system has passed the Congress and been signed into law by President Obama. The measure that finally prevailed, the Patient Protection and Affordable Care Act, is the same legislation the Senate had approved on Christmas Eve of 2009, although it was amended somewhat by a separate "budget reconciliation" measure t... (Read More)

Next Steps: A Practical Guide to Planning for the Best Half of Your Life

  Last Updated: 3/17/2010 2:29:37 PM Jan Warner and Jan Collins. Next Steps: A Practical Guide to Planning for the Best Half of Your Life. Quill Driver Books. Fresno, CA. 2009. 255 pages. $11.66 from Amazon (click on book to order)Aging endangers many things we take for granted when we're younger: health, assets, family harmony and personal autonomy. In order to avoid threats to any of these, it is important to develop a plan for the future now. Next Steps offers practical advice... (Read More)

Medigap Coverage Is Changing

  Last Updated: 2/12/2010 9:56:19 AM Several changes are coming to Medigap plans, which supplement Medicare's coverage. In June 2010, four current plans will be dropped and two new plans will be added, bringing the total number of available Medigap plans to 10. Between copayments, deductibles, and coverage exclusions Medicare does not cover all medical expenses. To supplement Medicare coverage, you may purchase a Medigap policy from a private insurer. There are currently 12 Mediga... (Read More)

How to Cope With Big Rate Hikes on Long-Term Care Policies

  Last Updated: 2/8/2010 3:42:13 PM Reprinted by permission of retirementrevisedIf you have long-term care insurance, brace for the possibility of a steep increase in premiums this year. Some of the largest long-term care (LTC) underwriters are asking state regulators for large increases on some policies this year. The current ultra-low interest rate environment is a key reason for the rate hikes. Low rates have cut sharply into the investment earnings that insurance companies dep... (Read More)

Next Steps: A Practical Guide to Planning for the Best Half of Your Life

  Last Updated: 2/26/2010 9:34:53 AM Jan Warner and Jan Collins. Next Steps: A Practical Guide to Planning for the Best Half of Your Life. Quill Driver Books. Fresno, CA. 2009. 255 pages. $11.66 from Amazon (click on book to order)Aging endangers many things we take for granted when we're younger: health, assets, family harmony and personal autonomy. In order to avoid threats to any of these, it is important to develop a plan for the future now. Next Steps offers practical advice... (Read More)

Demise of Estate Tax Could Have Serious Consequences for Spouses

  Last Updated: 3/2/2010 2:14:01 PM As ElderLawAnswers has reported, the estate tax expired on January 1, 2010. It remains to be seen whether Congress will reinstate it before it returns in 2011, but the fact that there is currently no estate tax can have unintended consequences for spouses. Standard language found in many estate plans could leave spouses with nothing. It is important to check with an elder law or estate planning attorney to make sure your estate plan does what yo... (Read More)

More Seniors Eligible for Big Medicare Drug Subsidy

  Last Updated: 1/26/2010 3:47:31 PM Reprinted by permission of retirementrevisedA million low-income seniors have become eligible for a big assist on prescription drug expenses this year under a newly expanded federal program. The subsidy can defray thousands of dollars in costs, and in many cases eliminate prescription drug expenses entirely for participating seniors. The Extra Help program which is administered by the Social Security Administration subsidizes Medicare Part D pr... (Read More)

Avoiding Expensive Funerals

  Last Updated: 1/25/2010 11:28:30 AM When planning a funeral, the expenses can add up quickly. The average funeral costs about $7,300, including the casket, embalming, and transportation, and if you include extras like flowers, obituary notices, and acknowledgement cards, the price goes even higher. However, there are several ways you can save on funeral expenses. Cremation. Cremation can be cheaper than burial. For one thing, you don't need an expensive casket if you plan on cre... (Read More)

To Roth or Not to Roth?

  Last Updated: 1/12/2010 3:06:17 PM Now that 2010 has arrived, people whose incomes were previously too high to permit them to rollover a traditional IRA to a Roth IRA are calling their investment houses about making conversions. That's because for the first time, even if your annual income exceeds $100,000, you can convert a traditional IRA -- or a SEP IRA, Simple IRA or 401(k) or 403(b) plan held with a former employer -- to a Roth IRA. What's all the excitement about? To revie... (Read More)

The Complete Eldercare Planner

  Last Updated: 1/29/2010 11:59:14 AM Joy Loverde. The Complete Eldercare Planner (Rev Upd. edition.) Three Rivers Press. N.Y. 2009. 400 pages. $13.57 at Amazon (click on book to order).Becoming a caregiver for an elderly loved one can be an overwhelming experience. The Complete Eldercare Planner is a practical guide designed to help caregivers organize and manage all the tasks involved in eldercare. Written by Joy Loverde, an eldercare consultant, The Complete Eldercare Planner ... (Read More)

Things to Remember at Tax Time

  Last Updated: 2/5/2010 11:49:46 AM April 15th is approaching and it is time to begin crossing T's and dotting I's in preparation for paying taxes. As tax time draws near, you want to make sure you file all the proper forms and take all deductions you're entitled to. Following are some things to keep in mind as you prepare your tax form. Gifts. Did you give away any money this year? The gift tax can be very confusing. If you gave away more than $13,000 in 2009, you will have to f... (Read More)

Congress Lets Estate Tax Expire, But May Act Retroactively

  Last Updated: 1/12/2010 1:43:46 PM With Senate Democrats unable to persuade Republicans to extend the 2009 estate tax law for even a couple of months until a more permanent solution could be devised, there is currently no tax on the estates of those dying during 2010. Although Congress may reinstate the tax retroactively in 2010, perhaps as part of broader tax reform, this is by no means a certainty.If Congress fails to act, a few thousand very wealthy families will have reason ... (Read More)

Pre-Paid Funeral Plans: Buyer Beware

  Last Updated: 1/6/2010 5:31:45 PM Funerals rank among the most expensive purchases many consumers will ever make. A traditional funeral costs about $6,000, although "extras" like flowers, obituary notices, acknowledgment cards and limousines can bring the total to well over $10,000. Moreover, people often "overspend" on a funeral or burial because they think of it as a reflection of their feelings for the deceased. To help relieve their families of some of these decisions, an ... (Read More)

Financial Crisis Affects Prepaid 529 Plans

  Last Updated: 1/12/2010 1:57:32 PM As ElderLawAnswers reported earlier this year, the uncertain stock market has made prepaid 529 plans more attractive to parents looking to save for their children's college education. However, the same economic problems that have increased the popularity of the plans are also putting the plans in jeopardy. Many plans are running out of money, causing states to impose higher fees or consider shutting them down. A prepaid 529 plan is usually oper... (Read More)

How to Care for Aging Parents

  Virginia Morris. How to Care for Aging Parents. Workman Publishing Company, Inc. New York, NY. 2004. 691 pages. $12.89 from Amazon.com (click on book to order)As your parents age, their needs begin to change. How to Care for An Aging Parent -- a revised and greatly expanded edition of a book first published in 1995 -- can help you deal with these changes as they occur. The book is a comprehensive look at almost every issue you might encounter as your parents age, whether they... (Read More)

Bank Pays Price for Refusing to Honor Request Made Under a Power of Attorney

  Last Updated: 12/8/2009 10:43:58 AM A durable power of attorney (POA) allows the person creating the document, called the "principal," to name a trusted agent who can act on his behalf in almost any situation. But because of the risk of abuse, many banks will scrutinize a POA carefully before allowing the agent to act on the principal's behalf, and often a bank will refuse to honor a POA. In a recent Florida case, Bank of America rebuffed an agent's request that funds be withdra... (Read More)

Online Retirement Planning Calculators Measure Risk Poorly, Study Finds

  Last Updated: 10/15/2009 9:41:14 AM If you are retired or are nearing retirement, the main questions on your mind are probably "Will I run out of money in retirement?" and "Will I be able to maintain my standard of living?" For answers, people often turn to free online retirement calculators, such as those listed on ElderLawAnswers' Calculators page, that calculate how much users will need to save to achieve their retirement objectives, based on details about their finances. Bu... (Read More)

No Change in Medicaid Spousal Impoverishment Standards for 2010

  Last Updated: 11/12/2009 11:17:25 AM For the first time since 1989, when a law was enacted protecting the spouses of institutionalized Medicaid recipients from impoverishment, the federal Centers for Medicare and Medicaid Services is not raising its guidelines for how much money the husbands or wives of institutionalized Medicaid recipients may keep. With no increase in the consumer price index on which these figures are based, the resource and income guidelines that prevailed ... (Read More)

End-of-Year Tax Planning Considerations

  Last Updated: 12/8/2009 4:27:24 PM As the New Year approaches, taxpayers around the nation are thinking about making gifts or other financial moves before January 1 that will benefit them come April 15, 2010. Here are some year-end considerations of particular interest to seniors. A Reprieve on RMDsLast year, as the stock market plunged and the economy teetered on the brink, Congress suspended the penalty for seniors who fail to take the required minimum distribution (RMD) from... (Read More)

The Boomer's Guide to Aging Parents

  Last Updated: 11/25/2009 11:32:36 AM Carolyn Rosenblatt. The Boomer's Guide to Aging Parents. AgingParents.com. 2009. 262 pages. $39.99 (click on book to order) As members of the boomer generation become caretakers for their parents, more and more guides are popping up. The Boomer's Guide to Aging Parents provides practical information on topics that aren't always covered in depth in other books. Although author Carolyn Rosenblatt is a retired attorney, her book doesn't cover ... (Read More)

The Effects of Health Care Reform on Long-Term Care

  Last Updated: 12/8/2009 4:20:35 PM Most of the discussion about health reform has centered around issues like the "public option" and abortion restrictions. But buried in both the House and Senate reform bills are important provisions that would make long-term care more affordable, help the elderly and disabled remain at home rather than move to a nursing home, and make nursing homes safer for those who have no choice. The CLASS ActElderLawAnswers has discussed the CLASS Act in ... (Read More)

Medicare's Open Enrollment Season Has Begun

  Last Updated: 11/18/2009 8:01:04 AM It is that time of year again -- time to reassess whether your Medicare plan is working for you. Medicare's open enrollment period began November 15 and continues until midnight December 31. During this period, you may enroll in a Medicare Part D (prescription drug) plan or, if you currently have a plan, you may change plans. In addition, during this period you can return to traditional Medicare from a Medicare Advantage (managed care) pla... (Read More)

529 Plans Can Pay for Computers and Internet Next Two Years

  Last Updated: 9/11/2009 3:25:21 PM Tax-free college savings plans and prepaid tuition programs -- so-called 529 plans -- can be used to buy computer equipment and services for an eligible student during 2009 and 2010. The change was part of the American Recovery and Reinvestment Act (ARRA), aka the Stimulus Bill, enacted earlier this year. Named for Section 529 of the Internal Revenue Code, 529 plans enable taxpayers to reduce their taxable estates while earmarking funds for the... (Read More)

What Is a Trust Protector and When Might You Need One?

  Last Updated: 9/28/2009 10:44:54 AM Trust protectors -- long popular in offshore trusts set up by high rollers -- are now gaining popularity in trusts established here in the U.S. by less affluent folks. A trust protector is someone who is appointed to watch over a trust that will be in effect for a long time and ensure that it is not adversely affected by any changes in the law or circumstances. There are a number of reasons for appointing a trust protector. Having a protector ... (Read More)

A Parent's Guide to Wills & Trusts: For Grandparents, Too

  Last Updated: 9/28/2009 10:35:50 AM Don Silver. A Parent's Guide to Wills & Trusts: For Grandparents, Too. Adams-Hall Publishing. Los Angeles, CA. 2008. 248 pages. $19.95 from Amazon (click on book to order)Getting started on an estate plan can be overwhelming. A Parent's Guide to Wills & Trusts is an easy-to-understand overview of estate planning that helps explain all the factors to consider and decisions to make.Written by an estate planning attorney, this is not a do-it-you... (Read More)

Program Provides Support Services to Family Caregivers

  Last Updated: 9/28/2009 5:51:06 PM Caring for a family member is hard work, and without support, caregivers can easily get burnt out or overwhelmed. However, there is help available for caregivers if they know where to look. The National Family Caregiver Support Program is a federal initiative that provides money to states to fund programs that support family caregivers. The goal is to help caregivers care for seniors at home for as long as possible. The National Family Caregive... (Read More)

Insurance Industry Fighting to Remove Kennedy's LTC Plan From Health Reform

  Last Updated: 9/28/2009 3:07:12 PM A proposal to establish a new national long-term care insurance program that would offer basic help to the elderly and disabled is under attack by the insurance industry. Although the proposed program is still included in major health reform bills in both the House and Senate, it is unclear whether it will make it to the final legislation. "It's got a long way to go to survive," says Brian W. Lindberg, Public Policy Advisor to the National Aca... (Read More)

Switching Medicare Plans If You Move

  Last Updated: 10/28/2009 10:34:11 AM If you are over 65 and preparing to move to another county or state, be sure to add "check Medicare plan" to your to-do list. You need to make sure your Medicare plan will still be in effect after you move. Whether or not your policy will be valid will depend in part on whether you have Original Medicare or Medicare Advantage. If you have Original Medicare, moving should not affect your benefits. Your Medicare plan will still be valid when yo... (Read More)

IRS Issues Long-Term Care Premium Deductibility Limits for 2010

  Last Updated: 10/19/2009 3:28:06 PM The Internal Revenue Service has announced the 2010 limitations on the deductibility of long-term care insurance premiums from taxes. For the first time, the maximum deductible limit for an individual exceeds $4,000. Premiums for "qualified" (see explanation below) are tax deductible provided that they, along with other unreimbursed medical expenses, exceed 7.5 percent of the insured's adjusted gross income. These premiums -- what the policyho... (Read More)

The Alzheimer's Advisor: A Caregiver's Guide to Dealing with the Tough Legal and Practical Issues

  Last Updated: 10/27/2009 1:34:52 PM Vaughn E. James. The Alzheimer's Advisor: A Caregiver's Guide to Dealing with the Tough Legal and Practical Issues. AMACOM. New York, NY. 2009. 300 pages. $14.96 from Amazon (click on book to order) Caring for a family member with Alzheimer's disease is complicated enough, but often overlooked are the legal implications of the disease. The Alzheimer's Advisor provides a guide to the legal and ethical aspects of caring for a family member wit... (Read More)

Understanding the Differences Between a Will and a Trust

  Last Updated: 10/28/2009 10:45:01 AM Everyone has heard the terms "will" and "trust," but not everyone knows the differences between the two. Both are useful estate planning devices that serve different purposes, and both can work together to create a complete estate plan. One main difference between a will and a trust is that a will goes into effect only after you die, while a trust takes effect as soon as you create it. A will is a document that directs who will receive your p... (Read More)

Medicare Part B Premiums to Rise 15 Percent for Some, or Maybe None

  Last Updated: 10/23/2009 10:48:02 AM After not rising last year, the basic premium for Medicare Part B will shoot up 15 percent to $110.50 a month in 2010 from $96.40 in 2008 and 2009. But most beneficiaries will be exempted from paying this increase. Whether the rest will be able to avoid it as well remains to be seen. The explanation is somewhat complicated. It all started when the Social Security Administration announced that there would be no cost of living benefit rise for... (Read More)

SSA Agrees to Stop Suspending Benefits Based on Existence of Arrest Warrant

  Last Updated: 8/26/2009 11:00:08 AM A U.S. district court has approved a settlement agreement between the Social Security Administration (SSA) and a group of individuals who had their benefits automatically withheld because of outstanding arrest warrants against them. The SSA has agreed to repay more than $500 million in benefits that were withheld since Jan. 1, 2007. The settlement resolves a class action lawsuit that challenged the implementation of a law that sought to preven... (Read More)

New Web Site Promotes Senior Volunteer Opportunities

  Last Updated: 8/28/2009 9:06:13 AM Seniors who want to remain active and engaged often turn to volunteering. A new government Web site sponsored by the Corporation for National and Community Service is promoting volunteerism for seniors. The site, www.getinvolved.gov, makes it easier for seniors to find volunteer opportunities around the country. Those age 55 and older can use the Web site's search engine to locate volunteer opportunities by interest and location. They can ... (Read More)

Nasty, Brutish & Long: Adventures in Old Age and the World of Eldercare

  Last Updated: 9/11/2009 4:27:54 PM Ira Rosofsky. Nasty, Brutish & Long: Adventures in Old Age and the World of Eldercare. Avery. New York, N.Y. 2009. 214 pages. $18.25 from Amazon (click on book to order)If our bodies or minds fail us at the end of our lives, we're likely to end up in a nursing home. What is life like in these institutions and what does the experience tell us about our society's way of managing the ravages of old age? In this important and engaging book, a psyc... (Read More)

Long-Term Care Hybrid Products Give Buyers More Options

  Last Updated: 8/13/2009 9:41:54 AM With many people unwilling to purchase long-term care insurance policies due to the cost, insurers are rolling out new products that combine long-term care insurance with either a life insurance policy or an annuity. These new products have been on the market for awhile, but they are gaining in popularity due to a law that goes into effect Jan. 1, 2010, making distributions from life insurance and annuities tax free when used to pay nursing hom... (Read More)

Who Can Serve as Executor?

  Last Updated: 9/28/2009 10:45:17 AM One important reason to have a will is to be able to name your executor (also called a personal representative). An executor is the person responsible for managing the administration of your estate after you die. If you don't choose an executor, the court will choose one for you. The first decision is whether to choose a person or an institution to act as executor. A bank, trust company, or other institution can serve. For more information on ... (Read More)

Getting Cash From a Life Insurance Policy If You Are Terminally Ill

  Last Updated: 7/27/2009 6:12:35 PM Unfortunately, a diagnosis of a terminal illness often comes with many expenses. If you need money to pay for your medical care or comfort, you may be able to use your life insurance policy to get some immediate cash. "Viatical settlements" allow terminally ill individuals to sell their life insurance policies. Alternatively, some insurance companies allow you to receive an accelerated death benefit. A viatical settlement is similar to ... (Read More)

Useful Financial, Retirement and Personal Calculators Available on the Web

  Last Updated: 7/30/2009 10:47:17 AM The Web has spawned many miracles, and one of them is the creation of online calculators that can give consumers answers to complex questions in seconds based on their specific circumstances. Want to know whether a traditional or a Roth IRA is better for you, how much life insurance you need, or what your life expectancy is? Here are links to a goldmine of useful online calculators from around the Web: TimeValue Software offers a number of fin... (Read More)

Making the Golden Years Golden

  Last Updated: 9/10/2009 3:50:46 PM Eva Mor. Making the Golden Years Golden. Authorhouse. Bloomington, Ind. 2009. 295 pages. $17.95 from Amazon (click on book to order)As we age, new issues confront us -- from where to live to who can provide care to how to avoid scams. Making the Golden Years Golden addresses problems like these and offers practical advice and tips to help navigate the senior years. The author, Eva Mor, has worked with elderly for more than 23 years in various ... (Read More)

Don't Leave Children Unequal Shares By Mistake

  Last Updated: 8/26/2009 10:48:41 AM Siblings do not always receive equal shares of a parent's estate. Sometimes the inequality is intentional and sometimes it is accidental. Regardless of how it happens, it can cause arguments among the children. However, there are some steps parents can take to promote family harmony. If you intend to leave your children equal shares of your estate, don't forget to consider any money or property held jointly with a child. Property in a ... (Read More)

2009 Long-Term Care Insurance Prices Rise Slightly, Range Widely

  Last Updated: 7/16/2009 3:21:54 PM A 55-year-old individual considering a basic level of long-term care insurance protection -- a $100 daily benefit and three years of coverage -- can expect to pay $723 a year if married or $1,060 if single, according to the 2009 Long-Term Care Insurance Price Index, an annual report from the American Association for Long-Term Care Insurance, an industry group. A 65-year-old purchasing comparable coverage will pay $1,364 (married) or $2,028 (sin... (Read More)

Mediation Can Facilitate an Amicable Senior Divorce

  Last Updated: 6/23/2009 2:23:49 PM As people live longer, the divorce rate among seniors is growing. Older couples confront different problems than younger ones do when getting divorced, and a mediator can help sort through these issues and facilitate an amicable settlement. While divorces among younger couples usually focus on child support and visitation issues, some of the considerations that seniors must take into account when getting divorced include:Health Insurance. Is one... (Read More)

Beware of Generic Health Care Proxy Forms

  Last Updated: 6/23/2009 4:22:19 PM Hospitals often give patients a health care proxy form to sign on being admitted. While it might seem easy to sign a generic health care proxy form, having a document that is specifically tailored to your needs is important. A health care proxy allows you to appoint someone else to act as your agent for medical decisions. In general, a health care proxy takes effect only when you require medical treatment and a physician determines that you are ... (Read More)

Can We Talk? A Financial Guide for Baby Boomers Assisting Their Elderly Parents

  Last Updated: 6/23/2009 4:59:40 PM Robert Mauterstock Jr. Can We Talk? A Financial Guide for Baby Boomers Assisting Their Elderly Parents. Soar with Eagles. Rogers, AR. 2008. 131 pages. $20 from Amazon (click on book to order). Although talking to your parents about money can be difficult, not discussing finances now could mean more problems and conflicts later. Can We Talk? is a practical guide to working with your parents to make financial plans and preserve legacies while you... (Read More)

Don't Fall for the 'Certified Copy of Your Deed' Swindle

  Last Updated: 6/15/2009 10:18:30 AM Would you pay $60 for something you could get for as little as $1 and probably don't need at all? A company called National Deed Service is hoping to persuade homeowners to part with the extra cash to purchase a "certified copy" of the deed to their home. Officials in many states are warning homeowners not to fall for the company's deceptive, but apparently legal, pitch. For the last three years, the Northbrook, Illinois-based National Deed Ser... (Read More)

You May Be Able to Claim Social Security Benefits Now and Claim More Later

  Last Updated: 6/23/2009 2:24:07 PM Although you can begin receiving Social Security benefits anytime after age 62, the longer you wait, the higher the benefit you will receive. But many people need money right away and cannot afford to delay. If you are married, there is a strategy that may allow you to claim some benefits immediately and then claim more benefits later. First a little background: You have three options for when to begin taking your Social Security retirement bene... (Read More)

Requiring Adult Children to Pay for Aging Parents

  Last Updated: 5/21/2009 11:37:18 AM Did you know you could be responsible for your parents' unpaid bills? Thirty states currently have laws making adult children responsible for their parents if their parents can't afford to take care of themselves. While these laws are rarely enforced, there has been speculation that states may begin dusting them off as a way to save on Medicaid expenses. These laws, called filial responsibility laws, obligate adult children to provide n... (Read More)

Online Services Offer Estate Planning for Digital Assets

  Last Updated: 6/9/2009 2:19:29 PM Once upon a time, when life was less complicated, the key to a safe deposit box was all loved ones needed to gain access to important documents and accounts following a death. Today, many aspects of our lives -- both financial and personal -- are lived in places accessible only by password. We have e-mail addresses, Facebook and MySpace profiles, and accounts with PayPal, eBay, and online brokerages and banks. In addition, many people communicate... (Read More)

Long-Term Care at Home Consumer Guide

  Last Updated: 5/27/2009 8:30:13 PM Walter Feldesman. Long-Term Care at Home Consumer Guide. Walter Feldesman, New York, NY. 2009. 393 pages. $23.66 print copy (or free as online download).Click here to order a print copy.Click here for free download.The story of Walter Feldesman is as inspiring to the elderly as his books are helpful to them. After a 67-year career as a corporate attorney, Feldesman has devoted the last decade to developing consumer-friendly guides about elder c... (Read More)

Accounting for Gifts and Loans to Children in Your Estate Plan

  Last Updated: 5/27/2009 9:29:04 AM No parents want their children to fight among themselves after they are gone. Sadly, conflicts often arise, especially when a parent has gifted or loaned money to one child and not others. However, a few key words in your estate plan can minimize the potential for conflict.If you give money to one child, the other siblings may claim that the child should receive a reduced share of your estate. Speaking at a recent meeting of the National Academy... (Read More)

Estate Taxes: What's a Taxpayer to Do?

  Last Updated: 6/8/2009 4:40:07 PM After almost a decade of changes in the federal estate tax code, and many states changing their tax structure in response to the federal changes, clarity appears to be on the horizon. Congress's recently passed budget resolution would make the current estate tax rules permanent, taxing only estates over $3.5 million in value with the tax rate set at 45 percent. Although no actual legislation has yet been voted on, the nonbinding budget resolu... (Read More)

Web Site Aims to Take the Rancor Out of Dividing Up an Estate

  Last Updated: 6/26/2008 As ElderLawAnswers has reported, dividing up family heirlooms can be a difficult business. Wills often deal only with financial assets, not personal possessions, and infighting between family members over who gets which personal item can damage relationships for years to come. Now there is a Web site that may help families avoid acrimony and make the process of dividing up possessions in an estate easier. The site, eDivvyup, allows family members (and frie... (Read More)

Disinheiriting a Relative Can Be Complicated

  Last Updated: 6/26/2008 You may feel that you have given one child more during your life, so he or she should get less in your will. Or you may want to cut out an heir altogether. Whatever the reason, disinheriting a close relative--especially a spouse or a child--can be complicated. It may not be possible to completely disinherit a spouse. Even if you don't leave your spouse anything in your will, most states have laws that keep a spouse from losing everything. If you live in a ... (Read More)

Coping with Dementia

  Last Updated: 7/31/2008 Rosemary De Cuir. Coping with Dementia: What Every Caregiver Needs to Know. Trafford Publishing. 2007. 182 pages. $16.95 from Amazon (click on book to order).Having a family member with dementia is extremely stressful and presents unique caregiving challenges. Coping with Dementia is designed to help families of individuals with dementia understand what is happening and transition from primary caregivers to advocates.Written by Rosemary De Cuir, who spent... (Read More)

Be Certain You Get the Pension You've Earned

  Last Updated: 6/25/2008 Are you having difficulty getting the pension or 401(k) plan funds you worked years to earn? Five pension counseling projects, funded through the U. S. Administration on Aging and serving plan participants and their beneficiaries in 22 states, can help!The retirement system's complexity and unresponsiveness can overwhelm the most tenacious retirees when they try to obtain the pensions they have earned. Companies change their names, merge or go bankrupt. Th... (Read More)

Second Marriages and Life Insurance

  Last Updated: 8/5/2008 As second marriages become more and more common, beneficiary designations become more complicated. If you are remarried, choosing a beneficiary for your life insurance policy may not be simple‚ especially if you have children from a previous marriage. When it comes to life insurance, how do you make sure your spouse is provided for without forgetting your children?If you already have life insurance with your first spouse as the beneficiary, you need t... (Read More)

Millions of Retirees and Vets Are Leaving Stimulus Money on the Table

  Last Updated: 10/7/2008 The IRS reports that more than 5 million retirees and disabled veterans who are eligible to receive a tax rebate under the $152 billion economic stimulus package have failed to take the steps necessary to get their checks.As we have previously reported, Social Security recipients (including beneficiaries receiving Social Security Disability Income) and disabled veterans who earned at least $3,000 in qualified benefits, earned income, or both, may be eligi... (Read More)

New Web Site Invites Reviews of Nursing Homes and Other Senior Care Services

  Last Updated: 10/7/2008 A new Web site, seniorDECISION, features consumer ratings and reviews of nursing homes, assisted living, retirement communities, and home health care agencies. The site is a forum for seniors, caregivers, and aging professionals to share opinions on more than 75,000 senior care and housing services nationwide.Unlike many Web sites that provide nothing more than text lifted from company-produced brochures, seniorDECISION offers first-hand accounts from peo... (Read More)

The Complete Book of Wills, Estates and Trusts

  Last Updated: 10/7/2008 Alexander A. Bove, Jr., Esq. The Complete Book of Wills, Estates and Trusts. Henry Holt and Company, New York, NY. 2005. 3rd. Ed. 364 pages. $11.56 from Amazon (click on book to order).Everything you ever wanted to know about estate planning is contained in The Complete Book of Wills, Estates, and Trusts. This substantial book, now in its third edition, is full of information to help you become more informed about how estate planning works. Written by att... (Read More)

How Parents Can Provide for a Caregiver Child

  Last Updated: 10/7/2008 Taking care of a parent can be a full-time job. Children may have to give up paying jobs in order to provide care to aging parents. Unfortunately, caregiving is usually unpaid work. Parents who want to compensate a child who takes on the burden of caregiving may do so in one of several ways. Caregiver Agreements. Caregiver agreements are an increasingly popular way to ensure a caregiver child is compensated for the child's work. A caregiver agreement (also... (Read More)

Online Calculator Gives Personalized Estimate of Future Social Security Benefit

  Last Updated: 10/7/2008 The Social Security Administration (SSA) has unveiled a new online calculator that allows you to project what your monthly Social Security benefit will be based on your actual work record. The Retirement Estimator also lets you create "what if" retirement scenarios based on different earnings projections and retirement ages. The calculator requires inputting personal information like your Social Security number, date of birth and mother's maiden name, but ... (Read More)

Senior Move Managers Help Make Moving Easier

  Last Updated: 3/24/2009 Moving can be stressful for anyone and especially so for seniors. On top of hiring movers, packing, and setting up the new home, there is the emotional toll of leaving a house the senior may have lived in for years. If the move seems overwhelming, a senior move manager may be able to help. Senior move managers help seniors with all the emotional and physical aspects of moving. The following are some of the tasks a move manager can assist with: Developing... (Read More)

On Your Own: A Widow's Passage to Emotional and Financial Well-Being

  Last Updated: 10/7/2008 Alexandra Armstrong, CFP, and Mary R. Donahue, PhD. On Your Own: A Widow's Passage to Emotional and Financial Well-Being. 4th Edition. Armstrong, Fleming, & Moore, Inc., Washington, DC. 2006. 415 pages. $19.95 at Amazon (click on book to order)Becoming a widow at any age is one of the most difficult crises any woman has to face. Not only is there the emotional loss of a husband, but also the task of handling all the finances without the help of a spouse. ... (Read More)

So, You've Been Appointed Trustee of a Trust? Here Are 9 Do's and 1 Don't

  Last Updated: 10/7/2008 Whether it's an honor or a burden (or both), you have been appointed trustee of a trust. What responsibilities have been thrust upon you? How can you successfully carry them out? Here are nine do's and one don't to get you started: Do read the trust document. It sets out the rules under which you will operate, so you need to understand it completely.Do create a checking account for the trust. All income and expenses should go through this account. While yo... (Read More)

New Law Makes Changes to Reverse Mortgages

  Last Updated: 12/1/2008 In addition to addressing the current housing crisis, the Housing and Economic Recovery Act of 2008 makes changes to reverse mortgages, including higher borrowing limits and protections from aggressive marketing. A reverse mortgage allows a homeowner who is at least 62 years old to use the equity in his or her home to obtain a loan that does not have to be repaid until the homeowner moves, sells, or dies. The new law, which took effect October 1, 2008, inc... (Read More)

Investment Pundits Urge Calm and Patience

  Last Updated: 10/6/2008 It's being called the greatest shock to the U.S. financial system since the Great Depression. With major brokerage houses and insurers going under and Wall Street gyrating wildly, many are wondering if there is any safe place to put their money and what, if any, investment moves they should make. In a survey of investment advice being given in the wake of the recent financial turmoil, ElderLawAnswers found that investment strategists are counseling calm an... (Read More)

How Does Work Affect Your Social Security Payments?

  Last Updated: 10/6/2008 Many people continue to work beyond retirement age, either by choice or out of necessity. But if you are receiving Social Security benefits, you need to be aware of how working can affect your benefit payments. Earning income above Social Security thresholds can cause a reduction in benefits and mean your benefits will be taxed. Whether it makes sense to work and collect Social Security at the same time is a complicated assessment that depends on how much ... (Read More)

Financial Abuse of the Elderly: A Detective's Case Files of Exploitation Crimes

  Last Updated: 10/6/2008 Joseph Roubicek. Financial Abuse of the Elderly: A Detective's Case Files of Exploitation Crimes. Ruby House Publisher. 2008. 161 pages. $13.05 from Amazon (click on book to order)Although elderly individuals are often the victims of fraud, there is another type of financial abuse that is more difficult to prosecute. This sometimes shocking book explains how the elderly are often exploited financially and offers some tips to avoiding such exploitation. Wr... (Read More)

Does Your Will Name an Alternate Beneficiary?

  Last Updated: 10/27/2008 What will happen to your estate if your primary beneficiary does not survive you? If your will does not name an alternate beneficiary, your estate will be divided according to state law. The way the state divides your estate may not agree with your wishes. Your money may go to someone you don't like or to someone who is unable to handle it. For example, suppose your will divides your estate among your spouse and three children. If one child dies before yo... (Read More)

Are You Sitting Down? Medicare Premium to Remain Unchanged in 2009

  Last Updated: 10/6/2008 For the first time in eight years, Medicare's monthly premium will remain unchanged for most of the program's 44 million beneficiaries. The Centers for Medicare and Medicaid Services (CMS) announced that the Part B premium will remain at its 2008 level of $96.40 for 2009 for individuals earning $85,000 or less or couples earning $170,000 or less. The premium will go up for higher earners (see list below). The Part B deductible will remain at its 2008 level... (Read More)

Questions and Answers on Life Insurance

  Last Updated: 10/27/2008 Anthony Steuer. Questions and Answers on Life Insurance. iUniverse, Lincoln, NE. 2007. 464 Pages.$22.45 from Amazon (click on book to order).Deciding which type of life insurance to purchase can be a confusing process. Term life? Variable life? Whole life? Universal life? What do these terms mean and which option is right for your situation? Questions and Answers on Life Insurance provides answers to those questions and more. Author Anthony Steuer is a l... (Read More)

FDIC Temporarily Boosts Insurance Limit to $250,000, Including Trusts

  Last Updated: 10/31/2008 The recently passed Emergency Economic Stabilization Act of 2008 (aka "the bailout bill") temporarily raises the basic limit on federal deposit insurance coverage (FDIC) from $100,000 to $250,000 per depositor. The legislation provides that the basic deposit insurance limit will return to $100,000 after December 31, 2009.The rise in insurance coverage applies to trust accounts as well. The owner of a revocable trust is insured up to $250,000 for each bene... (Read More)

Writing a Memorandum of Intent for a Special Needs Child

  Last Updated: 10/30/2008 How can you ensure that your special needs child will remain well cared for and secure once others assume the role of guardian or caregiver? While creating a financial plan and establishing a specialized trust are central to preparing for your child's future, special needs planners also advise families to write down their intentions and expectations in a document referred to as a Memorandum of Intent, also known as a "Letter of Intent." The Memorandum is ... (Read More)

Tax Deductions for Assisted Living Costs

  Last Updated: 11/4/2008 If you or a family member lives in an assisted living facility, you know that assisted living costs continue to rise every year. But did you know some of those costs may be tax deductible? Medical expenses, including some long-term care expenses, are deductible if the expenses are more than 7.5 percent of your adjusted gross income. In order for assisted living expenses to be tax deductible, the resident must be considered "chronically ill." This means a d... (Read More)

Annual Gift Tax Exclusion Jumping to $13,000 Next Year

  Last Updated: 10/17/2008 The annual gift tax exclusion will increase from $12,000 to $13,000 effective January 1, 2009, the Internal Revenue Service (IRS) has announced. The gift tax exclusion is the amount the IRS allows a taxpayer to gift to another individual without reporting the gift. The increase means that more can be given away for estate tax planning purposes. For example, a married couple with four children will be able to give away up to $104,000 in 2009 with no gift t... (Read More)

Retiring on Obama's Watch: What to Expect From 44

  Last Updated: 11/7/2008 By Mark Miller, RetirementRevised.com Barack Obama's hair turned a little gray during his 20-month quest for the presidency but he's hardly the only one showing some age. President-elect Obama will lead a country that is aging rapidly as the huge baby boomer generation heads toward retirement. By the year 2030, there will be 72 million Americans over age 65 -- about 20 percent of the total population, according to the U.S. Census Bureau. With all the urge... (Read More)

More Seniors Turning to Free Food Programs

  Last Updated: 11/17/2008 By Sue Woodman The story is the same across the country: the combination of a tough economy, rising food and fuel prices, and strained social services are causing dramatically higher numbers of elderly to seek out free food programs. In big cities like New York, the numbers showing up for free meals at senior centers is increasing by between 20 to 40 each day, according to Aaron Kesselman, president of the Manhattan Borough Wide Interagency Council on A... (Read More)

Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values

  Last Updated: 12/2/2008 Roy Williams and Vic Preisser. Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values. Robert D. Reed Publishers, San Francisco, CA. 2003. 182 pages. $19.77 from Amazon (click on book to order)If you have worked hard to accumulate wealth, you probably want to make sure your heirs don't lose control of it. Preparing Heirs gives families the tools to successfully transfer wealth from one generation to the next. The authors, both ... (Read More)

Revoking a Power of Attorney

  Last Updated: 2/3/2009 If for any reason, you become unhappy with the person you have appointed to make decisions for you under a durable power of attorney, you may revoke the power of attorney at any time. There are a few steps you should take to ensure the document is properly revoked. While any new power of attorney should state that old powers of attorney are revoked, you should also put the revocation in writing. The revocation should include your name, a statement that you ... (Read More)

A Roundup of Key Elder Law Numbers for 2009

  Last Updated: 10/31/2008 Below is compilation of Medicaid, Medicare, Social Security and other figures for 2009 that are of interest to the elderly and their families. Medicaid Spousal Impoverishment Figures for 2009 In 2009, the spouse of a Medicaid recipient living in a nursing home (called the "community spouse") may keep as much as $109,560 without jeopardizing the Medicaid eligibility of the spouse who is receiving long-term care. Called the "community spouse resource allo... (Read More)

Do You Have the Right Fiduciary?

  Last Updated: 2/24/2009 When creating an estate plan, an important decision is who to name as your fiduciary. A fiduciary is a fancy legal term for the person who will take care of your property for you if you are unable to do it yourself, such as the executor of an estate, the trustee of a trust, or an attorney-in-fact under a power of attorney. Your first instinct might be to name one of your children as a fiduciary, but if you want to avoid conflict among your children, this m... (Read More)

Retirement Home Can Force Resident to Move to Higher Level of Care

  Last Updated: 2/18/2009 A federal court has ruled that a continuing care retirement community (CCRC) can force one of its residents to move from her private apartment to an assisted living unit. Sally Herriot, 90, is a resident of Channing House, a CCRC in Palo Alto, California, that provides three levels of care -- independent living, assisted living and skilled nursing. Since moving to the facility with her now-deceased husband in 1991, Ms. Herriot has lived in a spacious ind... (Read More)

The Last Goodnights: Assisting My Parents with Their Suicides

  Last Updated: 2/27/2009 John West. The Last Goodnights: Assisting My Parents with Their Suicides. Counterpoint. 2009. 272 pages. $16.50 from Amazon (click on book to order)What would you do if both your parents asked you to assist them with their suicides within the same year? This unthinkable dilemma is exactly what John West faced in 1999 when both his parents became terminally ill almost simultaneously. His book, The Last Goodnights: Assisting My Parents with Their Suicides, ... (Read More)

How to Choose a Medigap Policy

  Last Updated: 4/14/2009 Once you become eligible for Medicare, you will be inundated with offers from insurance companies for Medigap (supplemental insurance) policies. Sorting through these offers can be confusing. Not only are there 12 standardized plans, but there can be huge differences in premiums between companies. Medicare plans A and B cover only a portion of medical costs. Medigap policies are designed to fill in the "gaps" in coverage. The first step is to figure out wh... (Read More)

Things to Remember at Tax Time

  Last Updated: 2/19/2009 April 15th is approaching and it is time to begin crossing T's and dotting I's in preparation for paying taxes. As tax time draws near, you want to make sure you file all the proper forms and take all deductions you're entitled to. Following are some things to keep in mind as you prepare your tax form. Gifts. Did you give away any money this year? The gift tax can be very confusing. If you gave away more than $12,000 to any one person in 2008, you will hav... (Read More)

Tips for Preventing, Detecting, and Reporting Financial Abuse of the Elderly

  Last Updated: 4/6/2009 As the economy worsens, incidences of elder financial abuse are reportedly on the rise. The elderly are particularly vulnerable to scams or to financial abuse by family members in need of money. A recent study found that up to one million older Americans may be targeted yearly. Family members and caregivers are the culprits in 55 percent of cases, although financial losses are higher with investment fraud scams. While it is impossible to guarantee that an e... (Read More)

Nearly Two-Thirds Face Risky Retirement Due to Long-Term Care Costs

  Last Updated: 4/1/2009 A new report by the Center for Retirement Research at Boston College finds that nearly two-thirds of U.S. households are at risk of being unable to maintain their standard of living in retirement when possible long-term care costs are taken into consideration. The report, "Long-Term Care Costs and the National Retirement Risk Index," looks at the percentage of households that would fall significantly short of their target retirement income if they do what t... (Read More)

The Boomer Burden: Dealing with Your Parents' Lifetime Accumulation of Stuff

  Last Updated: 4/29/2009 Julie Hall. The Boomer Burden: Dealing with Your Parents' Lifetime Accumulation of Stuff . Thomas Nelson, Nashville, TN. 2007. 228 pages. $10.19 from Amazon (click on book to order). When someone dies, they leave behind memories of them, but also lots of stuff. The Boomer Burden addresses how to deal with the latter -- how to clear out an estate and avoid family squabbles over heirlooms. The author, Julie Hall, is an estate contents expert and certifi... (Read More)

Nursing Home Residents May Keep $250 Stimulus Payment

  Last Updated: 4/24/2009 Just about everyone who gets Social Security, Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), or a Railroad Retirement or Veterans Administration disability pension, will receive a one-time payment from the U.S. government of $250 as part of the American Recovery and Reinvestment Act of 2009 (aka the stimulus bill). The extra payment is scheduled to arrive by the end of May the same way you receive your usual benefit. Am... (Read More)

Be Aware of the Dangers of Joint Accounts

  Last Updated: 3/27/2009 Many people believe that joint accounts are a good way to avoid probate and transfer money to loved ones, and such accounts are sometimes referred to as "the common person's estate plan." But while joint accounts can be useful in certain circumstances, they can have dire consequences if not used properly. Adding a loved one to a bank account can affect Medicaid planning as well as expose your account to the loved one's creditors. When a person applies for ... (Read More)

New Study Finds Financial Abuse of Elderly Is Costly and Vastly Underreported

  Last Updated: 3/20/2009 Elder financial abuse costs older Americans more than $2.6 billion a year and is most often perpetrated by family members and caregivers, according to a new report released by the MetLife Mature Market Institute entitled, Broken Trust: Elders, Family and Finances. The 40-page report notes that for each case of abuse reported, there are at least four that go unreported. In addition, the economic downturn may increase vulnerability. The report, which is a... (Read More)

Reevaluate Insurance Needs When You Retire

  Last Updated: 4/20/2009 Along with many other changes, your insurance needs change when you retire. It is a good idea to look at your insurance options and figure out what you need or don't need and where you might be able to achieve some savings. Life Insurance. Once you retire, you may no longer need life insurance. If your spouse or other dependents won't lose any income when you die, life insurance isn't necessary. However, sometimes life insurance can be used as part of an e... (Read More)

'Who Moved My Dentures?'

  Last Updated: 3/26/2009 Anthony Cirillo. "Who Moved My Dentures?" 13 False (Teeth) Truths About Long-Term Care and Aging in America. Warren Publishing. Cornelius, NC. 2003. 164 pages. $14.95 from Amazon (click on book to order). The general perception of long-term care facilities is of places to be avoided at all costs. This book is intended to dispel that perception. "Who Moved My Dentures?" is written by entertainer and health care consultant Anthony Cirillo, who travels aroun... (Read More)

What the Stimulus Bill Does for the Elderly

  Last Updated: 3/6/2009 The American Recovery and Reinvestment Act of 2009, the $787 billion stimulus package that President Barack Obama signed into law February 17, 2009, includes a number of provisions that help the elderly in need as well as the economy. Here are the highlights: A one-time payment of $250 in the form of a tax rebate to Social Security recipients, Supplemental Security Income recipients, and veterans receiving disability and pensions. For details, click here... (Read More)

Financial Downturn Coupled With Changing Estate Tax Rules Mean It's Time to Review Your Estate Plan

  Last Updated: 4/20/2009 The financial crisis, coupled with possible changes in the estate tax law, make now a good time to review your estate plan. The future of the estate tax will likely be up for debate in Congress soon because one of the priorities of the Obama administration is making the estate tax permanent. Given the uncertain climate, it is important to make sure your estate plan does what you want it to do. Under current law, the estate tax rate is 45 percent for 2009, ... (Read More)

IRS Clarifies Recent Law Waiving Account Distribution Rules for 2009

  Last Updated: 1/17/2009 The Internal Revenue Service (IRS) has issued guidance to financial institutions clarifying the new law that allows seniors to avoid making required withdrawals from depleted retirement accounts in 2009. Taxpayers over 70 1/2 years old generally must begin withdrawing a certain percentage of the balance of retirement accounts like IRAs and 401(k)s each year or pay, in addition to income tax, a 50 percent excise tax on the amount that should have been withd... (Read More)

10 Steps to Less Stressful Caretaking

  Last Updated: 2/26/2009 Taking care of an elderly loved one, whether due to dementia or illness, can be exhausting and stressful. Often due to the lack of outside help, a devotion to the person needing care, or the tunnel vision that can accompany exhaustion, caretakers don't take care of themselves. But they must. Failure to do so can lead to burnout, injury or illness. If you are the caregiver, any of these results will harm your ability to care for your loved one.Here are some... (Read More)

Living and Dying in a Long-Term Care Facility: Notes From a Nursing Home Doctor

  Last Updated: 1/29/2009 Gilah Silber, M.D. Living and Dying in a Long-Term Care Facility: Notes From a Nursing Home Doctor. BookSurge Publishing, 2007. 179 pages. $14.95 from Amazon (click on book to order). As the population ages, more and more people are entering nursing homes. But what is life like in these often-dreaded facilities? Living and Dying in a Long-Term Care Facility offers a behind-the-scenes look at the long-term care system from a nursing home physician's perspe... (Read More)

Supreme Court Says Deceased Employee's Ex-Wife Can Get His Pension Benefits

  Last Updated: 2/2/2009 A new Supreme Court decision illustrates the importance of making sure your beneficiary designations are up-to-date. The Court has unanimously ruled that an employer must distribute a deceased employee's retirement benefits to his ex-wife even though she had renounced the benefits in their divorce. Kennedy v. Plan Administrator for DuPont Sav. and Investment Plan (U.S., No. 07-636, Jan. 26, 2009). William Kennedy worked for DuPont Co. and had a retirement p... (Read More)

What Happens If You Die Without a Will?

  Last Updated: 2/26/2009 We all know we are supposed to do estate planning, but not all of us get around to it. (If you are among the many who haven't gotten around to it, see our current home page survey.) So what happens if you don't have a will when you die? Your estate will be distributed according to state laws, which may or may not be the way you want it to be distributed. Dying without a will is called dying "intestate." Each state has laws that determine what will happen t... (Read More)

Long-Term Care Insurer Dumps 140,000 Policies on State's Doorstep

  Last Updated: 12/5/2008 Conseco Inc., a major long-term care insurer, has transferred more than 140,000 of its policies to an independent trust set up by Pennsylvania, putting the policyholders at risk. Conseco moved its Senior Health Insurance Co. long-term-care policies, which were underpriced, to a new state-supervised nonprofit trust, Senior Health Insurance Co. of Pennsylvania. The trust will pay claims from a pool of funds, including $175 million in capital, transferred to... (Read More)

Five-Star Rating System for Nursing Homes Arrives, for Better or for Worse

  Last Updated: 12/20/2008 The Centers for Medicare & Medicaid Services (CMS) has unveiled a one- to five-star rating system for nursing homes to help consumers evaluate a nursing home's quality when selecting a facility. The ratings appear on the agency's Nursing Home Compare Web site. A five-star designation means the facility ranks "much above average," four-star indicates "above average," three means "about average," two is a "below average" ranking, with a one indicating tha... (Read More)

Caring for Your Parents: The Complete Family Guide

  Last Updated: 12/22/2008 Hugh Delehanty and Elinor Ginzler. Caring for Your Parents: The Complete Family Guide. AARP and Sterling Publishing, New York, NY. 2008. 238 pages. $10.36 from Amazon (click on book to order)As parents age, their adult children are often forced to take on an active caregiving role, which creates a new dynamic between parent and child. Caring for Your Parents provides practical advice to help adult children navigate this complex emotional and bureaucratic... (Read More)

Updating Your Estate Plan When Your Finances Change

  Last Updated: 2/26/2009 In the recent economic downturn, many homes have lost considerable value and stock portfolios have plummeted. If this is the case for you, do you need to change your will? What if your income and assets have increased significantly? If your finances have changed markedly since you wrote your will, you should check your estate plan to see if you need to make any changes. If your will or estate plan divides your estate into percentages for beneficiaries, the... (Read More)

Congress Waives Retirement Account Distribution Requirements for 2009

  Last Updated: 1/5/2009 Congress has passed and President Bush has signed legislation that will temporarily suspend the penalty for seniors who fail to take the required minimum distribution from IRA and employer retirement accounts in 2009. But the penalty freeze, which is part of the Worker, Retiree, and Employer Recovery Act of 2008, does not affect required distributions for 2008, which are hitting seniors the hardest, and some contend that the suspension for 2009 will only b... (Read More)

New Privacy Rules Restrict Family Access to Health Information

Last Updated: 6/27/2008With the strict new health care privacy rules now in force, it's more important than ever that everyone consider creating an advance medical directive that specifically names those persons who are entitled to access to health care information about them.Under the Health Insurance Portability and Accountability Act (HIPAA), which recently became effective, doctors, hospitals and other health care providers may no longer freely discuss a patient's status or health with spou... (Read More)

Review Your Living Trust: Older Ones May Need Revision

Last Updated: 6/27/2008Many couples created Revocable "Living" Trusts before the 2001 changes in the tax law, which increased the personal estate tax exemption many-fold over what it was in earlier years. Just before the new law, the personal lifetime exemption was $675,000. For persons dying in years 2004 and 2005, the exemption has been increased to $1.5 million, and the amount of this exemption will increase still further during the remaining years of this decade.Many of these older trusts c... (Read More)