When Roles Reverse… The Adult Child Becomes The Parent!

It is important to understand family dynamics when it becomes time for adult children to have to help make decisions for their parents. Thinking about long term care and placement in an assisted living or skilled nursing facility is very difficult for families to handle.  The family needs to talk with an experienced elder law attorney centered on what the parent(s) wishes to do versus what is in the best interest of the senior loved one.  Children are generally uncomfortable about moving a parent out of their home to a facility against they want to remain at home.  This discussion can start with looking at in home care aides to start the LifeCARE Cycle. Sometimes parents become rebellious and do not allow anyone in the home to help them.  If the children do not live nearby or have to work a full time job, managing a rebellious parent long distance becomes a difficult family task.

Many children are understandably uncomfortable in becoming the parent, especially if the parent does not want to accept help that is clearly needed.  Independence is a hard thing to let go of.  But there is a time when adult children will need to step in to the decision making role, just as parents do with small children. Your decision to step in can be very difficult because in many situations the decline is gradual.   When is the right time to step in?

Too often the deterioration of your parent’s ability to do the every day things to care for themselves will happen gradually over time. Your parent(s) may become experts at hiding these problems, so it is important for you to be on guard for certain warning signs:

• Incapable to properly pay bills and manage their finances
• Incapable to handle their needed nourishment, clothing or shelter
• Incapable to take care of one’s physical health

Early intervention on your part can prevent serious problems from occurring.  When you visit your parent(s), look for the following warning signs of a possible care crisis:

• no food in the cupboards,
• stacks of unopened mail,
• evidence of not bathing
• other signs that your parents are no longer able to properly care for themselves.

If they wait for the parents to ask for help, that day will probably never come. They need to have a plan in place sooner than later that will provide for adequate care supervision and financial assistance even if parents feel they need no help. 

LA LAW Center Staff will help you assess your parent’s physical, emotional and financial situation and suggest the best options for your parent’s situation.  This can range from, setting up a Conservatorship, securing Government Benefits to help pay for care, such as Medi-CAL, Medicare, Veterans or Social Security benefits, developing a Life Care Plan or help in choosing In Home Care Givers,  Assisted Living Facility or Nursing Home.

For more information, please go to our website and look around. We try to educate our community and assist them with any elder law needs they may have or fear. Visit our site or call us today to schedule your FREE consultation with one of our experienced elder law attorneys. 

1 (877) 537 - 8283

>>>     www.la-lawcenter.com     <<<

Only Small Change to Estate Tax from "Fiscal Cliff" Compromises

All of the talk in recent months about our nation’s economy and what our government planned to do about this “fiscal cliff,” decisions have been made and now we are left wondering what to make of it all. Most of us, in particular, are wondering what this will be doing to our families and ourselves, not just the country at large.

So far, people have been seeing larger numbers taken out of their paychecks due to the increase of taxes, and a couple other things are bound to change with families and small businesses, but we are happy to note that as part of the tax compromise that was approved, the amount that is exempted from estate taxes will remain the same as it has been for the past two years, although the maximum tax rate will rise by 5 percentage points. Those of us who are seeing an increase in money taken out of our paychecks will have solace knowing that estate tax will not be changed as a result of this deal.

The American Taxpayer Relief Act (http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf), which passed in the House by a vote of 257/167, permanently sets the estate tax exemption at $5 million for an individual and $10 million for a couple. Taking into account the new adjustments to inflation, these exemptions are estimated to rise to about $5.2 million for an individual and $10.24 million for couples. The gift tax and generation-skipping transfer tax exemptions will also remain the same as last year, adjusting for inflation, and the estate tax portability provision remains intact.

Although this is good news for most of us without assets in the millions, for those that exceed these amounts, Congress did change one of the prior rules: the maximum tax rate on inheritances above these levels will increase from 35 percent to 40 percent.

Although the bill's provisions should have taken effect on the first of the year when
President Obama had promised to sign it into law, technically for now the
estate tax has reverted to its 2001 level of a 55 percent tax on inheritances above $1 million.

Also the annual gift tax exemption has been raised to from $13,000 to
$14,000 gift per year per person. However, a person can gift more than this
amount each year by declaring a larger gift as part of their lifetime estate
gift tax exemption (which is set at $5 million with inflation adjustments in
the future) by declaring it on a 709 Gift Tax Return.

For more information about this and other California asset protection or
estate planning questions, call LA LAW Center, LLP for a complementary
consultation at 1.877.537.8283.

2013 New Limits for Medi-CAL & VA Benefits

January 14, 2013

We have new limits to the Medi-CAL program and the VA Aid and Attendance program for 2013.  It is important to know these new numbers when considering applying for these programs in California.

Medi-CAL (Medicaid in any other US state) and the Veteran’s Aid and Attendance are needs based programs and have defined income and asset limitations.  These numbers connected with the Social Security cost of living increases.  There was a 1.7% cost of living increase for Social Security this year. The following are other benefit increases to long term care related Medi-CAL and VA benefits: 

2013 VA Benefit Increases

The VA Aid & Attendance rates have increased this year too.  A single veteran qualifying for Aid and Attendance benefits has increased to a maximum of $1732 of tax free income.

The widowed spouse of a veteran has increased up to $1,112 of tax free income.

A married veteran who needs care can qualify for as much as $2053 per month of tax free income. 

2013 Assets be Counted for Qualifying for Medi-CAL

The applicant countable assets remained at less than $2000 in order to qualify for Medi-CAL. The good news is a married couple with one person needing the Medi-CAL program to help pay for nursing home care, the healthy spouse total asset amount has increased to $115,920. Many think both spouses have to be below $2,000 and must spend all of their savings on care before Medi-Cal will help. This is simply not true and if this is followed it can be devastating to the well spouse.

2013 Medi-CAL Income Rates have Changed

The minimum amount of the couple’s combined income for the benefit of the Well Spouse has increased to $2,898. If the Well Spouse’s separate income is less than a minimum amount ($2,898 per month), then a portion of the Medi-CAL Applicant Spouse’s income may be transferred to the Well Spouse to bring the monthly income up to the minimum levels. This can be increased by having an elder law attorney go to court to request additional living expenses through a 3100 Petition.

For more information about whether California’s Medi-CAL program or VA Aid & Attendance benefits may be available to you or your loved one contact please go to www.la-lawcenter.com or call us at 877-537-8283 or 818 241 4238. We offer free consultations on the phone or by appointment in our Glendale CA offices.

Only Small Change to Estate Tax from "Fiscal Cliff" Compromises

All of the talk in recent months about our nation’s economy and what our government planned to do about this “fiscal cliff,” decisions have been made and now we are left wondering what to make of it all. Most of us, in particular, are wondering what this will be doing to our families and ourselves, not just the country at large.

So far, people have been seeing larger numbers taken out of their paychecks due to the increase of taxes, and a couple other things are bound to change with families and small businesses, but we are happy to note that as part of the tax compromise that was approved, the amount that is exempted from estate taxes will remain the same as it has been for the past two years, although the maximum tax rate will rise by 5 percentage points. Those of us who are seeing an increase in money taken out of our paychecks will have solace knowing that estate tax will not be changed as a result of this deal.

The American Taxpayer Relief Act (http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf), which passed in the House by a vote of 257/167, permanently sets the estate tax exemption at $5 million for an individual and $10 million for a couple. Taking into account the new adjustments to inflation, these exemptions are estimated to rise to about $5.2 million for an individual and $10.24 million for couples. The gift tax and generation-skipping transfer tax exemptions will also remain the same as last year, adjusting for inflation, and the estate tax portability provision remains intact.

Although this is good news for most of us without assets in the millions, for those that exceed these amounts, Congress did change one of the prior rules: the maximum tax rate on inheritances above these levels will increase from 35 percent to 40 percent.

Although the bill's provisions should have taken effect on the first of the year when President Obama had promised to sign it into law, technically for now the estate tax has reverted to its 2001 level of a 55 percent tax on inheritances above $1 million.

Also the annual gift tax exemption has been raised to from $13,000 to $14,000 gift per year per person. However, a person can gift more than this amount each year by declaring a larger gift as part of their lifetime estate gift tax exemption (which is set at $5 million with inflation adjustments in the future) by declaring it on a 709 Gift Tax Return.

For more information about this and other California asset protection or estate planning questions, call LA LAW Center, LLP for a complementary consultation at 1.877.537.8283.

Take it From Them: Estate Planning Advice From Beyond the Grave

             We have made it to the first week of 2013 and have survived a lot of obstacles: the Mayan Apocalypse, a plethora of bread, pies, alcohol, cheese, and turkeys, holiday family gatherings, New Years Eve, and the sleep-through-it first day of the new year. After overcoming the last two months of celebrating and being with family and friends in copious amounts, the first week of January is a time where people all around the world feel a sense of renewal and a chance to make beneficial changes for their years to come. Some people make resolutions, some begin some pre-spring cleaning and organizing, and others just strive to do things brand new and exciting in the New Year. What many people are not thinking about, and probably should be, is setting up a plan to protect his or her family with an estate plan, will or trust.

The New Year is a time where people are feeling optimistic about their future and their lives, and are not usually thinking about planning for their death or the death of their loved ones, but setting up a plan in which a person’s personal wishes are legally documented is an important task that should be a part of anyone’s New Years Resolution list. There are a lot of reasons for this preparation: obviously it will protect a person’s wishes in case their life ends suddenly or after a long illness, but establishing the people who will make medical decisions for yourself if you happen to become unfortunately incapacitated is something many people do not think about when debating establishing an estate plan, will or trust.

Some people choose not to worry about the fate of their lives after they become seriously injured or deceased, and that choice has lead to disastrous ends in many circumstances. Here, in Los Angeles, the California court system will decide how a person’s end of life health care decisions are made if there are no legal documents giving those directions. Many families spend years in nasty court battles trying to sort out a loved ones assets because a proper will or trust was not established. Hugely public estate feuds have been apparent for many years involving many high profile celebrities and wealthy individuals, and in each case the need for an established estate plan becomes evermore apparent. Wealthmanagement.com gave a list of celebrities and famous individuals whose end of life plans did not go over as swimmingly as they might have hoped, and they serve as lessons of why these documents are so important for every adult, young or old.

Here are a couple of examples:

            Presidents:

President Lincoln is one of four presidents who did not have a plan for their death established, and Lincoln’s financial estate was such a mess that it took years to settle.

            Musicians:

Sonny Bono, musician and California Congressman experienced a sudden death after a tragic skiing accident without a will or trust established, that left his wife, Mary, to open up a probate estate and needed to be granted permission to have authority over his music rights after claims from his second wife, Cher, and an alleged love child conflicted the security of his estate of over 1 million dollars.

James Brown wished to leave his entire 100 million dollar fortune in a special trust that was set up to benefit needy children, but because he had not updated his will during the time of his most recent marriage, his money did not get sent to the children in need, or to his family.

 

Although there are a lot of horror stories of celebrities estates gone wrong, one of the most inspiring high profile estate stories comes from the King of Rock and Roll himself, Mr. Elvis Presley. He had a will, along with tools that were put in place to make sure that his finances would be handled appropriately, despite greedy music executives trying to get a hold on his assets.

These are obviously grandiose stories that seem far fetched to most of us, especially considering the sheer amount of money involved in their estates, but similar things happen to people with less assets and wealth every day. These kinds of missteps leave families involved with the court and probate teams for years, and the security that would come with a will or trust is gone.

The beginning of the year is a great time to make “resolutionary” changes to start making life decisions that leave you and your family healthier and happier than years past. One of the best ways to ensure that your family can continue to live in this way is to plan for the future of your family, even if you aren’t around. Add this to your resolution list this year: it’s a big one. 

For a free consultation please call 818 241 4238 or go to www.la-lawcenter.com

(Information found for this blog here: http://wealthmanagement.com/estate-planning/lessons-rich-and-famous-death)

Veteran's Day is this weekend! Remember to thank a Veteran!

Sunday November 11th is Veteran's Day!

This day each year gives all Americans the opportunity to honor the bravery and sacrifice of all U.S. Veterans.
Please take a moment this Sunday to remember the freedoms Americans have because of the U.S.Veterans.

We at the LA LAW Center strongly feel that our American Veterans have made tremendous sacrifices to preserve the freedoms of the American people. We believe that these men and women (& spouses) deserve many Veterans’ benefits. We have a mission to assist all Veterans in understanding their benefits and getting their well deserved entitlements! Also we want to ensure that carefully planning is a part of this process to make sure the Veterans will qualify for Medi-CAL if they need it in the future.

Please make a point to thank a veteran or a member of the U.S. Armed forces this weekend.

Elder Law Attorney’s roles in supporting our Aging Population

The specialty of attorneys understanding Elder Law is becoming essential as our population ages.  We are living much longer but not necessarily “living better Attorneys specializing in Elder Law are a great resource seniors and their families in many ways. Below are some of the more important elder issues we at LA Law Center, LLP can help you with.

Help with Understanding Medicare and Medi-CAL Programs

Qualified legal help is available from elder law attorneys to help individuals in applying for and accelerating payments for Medi-CAL. An elder law attorney can also help with disputes with Medicaid. Also attorneys who specialize in Medicare can help with disability claims and sometimes this help is the only way claims are ever granted.

Financial Elder Abuse or Exploitation

Seniors can be become lonely and then become vulnerable to strangers (or family members) and become victims of financial exploitation. Examples of the most common types of financial exploitation can include:

·      Pay in Advance Prize-Winning Schemes

·      Telephone Solicitations for Dishonest Charities or Fraudulent Investments

·      Identity Theft to Get Credit Card Numbers and Other Information

·      High-Pressure Door-To-Door Sales

·      Dishonest Home Improvement Contracts

·      Dishonest Miracle Health Cures

·      Unnecessary Living Trusts through a Trust Mill

·      Dishonest Funeral Arrangement Plans

Seniors should have their affairs in order and be protected with Powers of Attorney given to a trusted family member. Adult children need to keep a close eye of their parents if the suspect any failure in metal or physical capacities. Sometimes it is best to have an elder law attorney explain these issues to seniors as they will take it more seriously.  They should also be warned of and told to avoid any financial transactions that:

·          Anything requiring upfront deposits.

·          Contracts are to be signed without two or three days of consideration in consultation with knowledgeable family members.

·           Any dishonest schemes sent through the mail are guilty of mail fraud

Elder Law Attorneys and your local area agency on aging can be a good source for help in these areas. Most importantly you should have a review of estate documents to make sure your estate is protected!!!

Settle Family Disputes

An Elder Law attorney can help as an arbitrator or a mediator in solving disputes among family members relating to the care of elderly parents. There may be disagreements over many issues is an estate plan and it may take an attorney to help sort though the family politics! A lawyer may be necessary to settle the differences either through informal mediation to court actions. We prefer to settle issues before they destroy a family!

For more information, please go to our website and look around. We try to educate our community and assist them with any elder law needs they may have or fear. Visit our site or call us today to schedule your FREE consultation with one of our experienced elder law attorneys. 

1 (877) 537 - 8283

>>>     www.la-lawcenter.com     <<<

Elder Mediation Can Resolve Family Conflicts

Family ties become more complicated as a parent or sibling is aging and nearing death. The people in your family begin conspiring and suspicions arise about each other in fear that someone is trying to take advantage of the one dying or trying to cheat the rest of the siblings. Our Los Angeles based elder law firm sees many seniors with feuding family members quite often. 
  

There are many cases reported to the National Care Planning Council about disputes between family members. Caregivers sometimes want to keep others away from the parent to avoid others taking advantage of them. Or caregivers may be taking advantage of them themselves and trying to keep other siblings out of it. Every situation is unique and none are sound for who is right and who is wrong. The problem is that amidst all the animosity, the elder’s wishes are not being met.

It is a difficult situation to communicate with one another when one child is the caregiver and the others are not. This is where having a Mediator can come in handy. Mediators are a neutral third party in your feud and can help correct issues caused by the disagreement. It’s smarter to mediate between each other with an experienced professional than to leave it to yourselves and possibly hurting ties with your siblings.

WHAT IS ELDER MEDIATION?

Mediation helps bring disputing parties together and have them negotiate solutions to their disagreements. Allowing for voices of each party to be easily communicated is the point behind mediation. It is also important to be able to establish resolutions between the elderly parents and their relatives.

Mediation also allows for the family to achieve results that work in everyone’s favor. Here are some reasons why it is important to use an Elder Law Mediator:

• Having a trained expert allows for new perspectives of the family that it could not have on its own
• Meeting together lets you preemptively negotiate problems before they arise
• The mediator can invite experts, such as care providers, to help shed light and give the family new perspectives
• Lets parents use their abilities rather than their limitations
• Encourages family members who are not involved to get involved
• Lets the parents express their wishes for everyone to hear
• Lets the mediator challenge family members and require them to take responsibility for their actions
• Creating a written plan helps make compliance more feasible.

 

There is various organizations and companies that provide expert Elder Mediators to help seniors and their families. Many of these elder mediators typically have accreditations such as, Professional or Geriatric Care Manager, Elder Attorney, Clinical Social Worker or Certified Mediator.

Mediators provide different sets of skills, so selecting the proper one for your family’s needs is important. This includes issues such as medical assessment, legal concerns over inheritance or power of attorney. Bringing the family together to communicate helps decide what exactly needs to be done and by whom.

Seniors Use Mediators to help the family plan for long term care.

Creating a care plan before its needed is a very important way to be prepared for Elder Care. Taking steps to help plan long term care are very important. First, you may want to designate a personal care coordinator for the individual to help streamline what process is going to be needed to care for the elder. It is important for other family members to be in compliance with the personal care coordinator and discuss what they all can do to provide long term care for the elder.

If communication is an issue in deciding who will be personal care coordinator, or if there is trouble getting everyone on board with long term care, a mediator may be exactly what you need to help.

If you would like to learn more about long term care planning, you can read the book “The 4 Steps of Long Term Care Planning” which is available online at http://www.longtermcarelink.net/a16four_steps_book.htm.

 Where to Find an Elder Mediator

• In a phone book, the internet, or community senior services
• A friend or neighbors reference
• Contacting your local area agency on aging
• Contact the State Bar Association

The National Care Planning Council lists Professional Mediators throughout the United States on its website at http://www.longtermcarelink.net/a7mediation.htm

Please call us for a free phone consultation or appointment  consultation to review your individual situation and determine if you would benefit from our experience and legal services. 

What you do not know CAN hurt You!

For more information go to www.la-lawcenter.com or call us at:

Local Phone: (818) 241-4238 or

                                                        Toll Free Phone: (877) 537-8283

California Medi-CAL Planning - Part Three

 This is PART THREE in our blog helping middle classed family members understand how to qualify for  Medi-CAL (Medi-Cal in California) to pay part or all of the cost for skilled nursing home care.

Always remember, you do not operate on yourself and we highly recommend that you get assistance from a qualified elder law attorney for your family’s Medi-CAL planning, allows you to legally qualify for the federal and state Medi-CAL Program. There are several strategies a family can use to make sure their loved one can qualify for Medi-CAL Long Term Care Benefits.

1. Special Home Exemption Rule

It's often the case that an adult child will move into the family home to take care of aging and or ill parents. In this case Medi-CAL has a special leniency rule to allow transfer of the home to this  adult child and not result in a penalty for a transfer for less than value. If the child provides care for a parent in a parent's home for at least two years, and that care kept the recipient out of a nursing home, the property can be transferred to the child without penalty and the property will not be a subject asset for Medi-CAL recovery. Medi-CAL will require some proof of this. Typically an affidavit from a third-party care provider such as a doctor or an agency stipulating that the care was given for at least two years and resulted in keeping the care recipient out of a long-term care facility, will be sufficient evidence. It's important to get the assistance of an experienced elder law attorney to ensure you file this properly and timely with the  Medi-Cal Recovery Unit.

2. Joint Tenancy

Some families anticipating the need for Medi-CAL benefits are tempted to put a child's or sibling's name on property titles to avoid probate and Medi-CAL recovery. It may not be a good idea as there are problems with this strategy. They are:

• If the family member that is put on the home’s title becomes subject to a judgment, (arising from an accident or debt obligation), then at least 50% of the family home can be lost to a court ordered judgment.

•  The family member on the title must consent to sale of the property. This may cause problems with the wishes of the original owner.

• Redoing the title must occur at least 3 years prior to claim in order to avoid look back rules and a sanction on a gift to a non spouse owner.

• The person assuming joint ownership has received a gift and loses the step-up in basis at death. Capital gains taxes may have to be paid. And if the property is not the principal residence of the new tenant, the capital gains exclusion cannot be used either.

• Note: In California, an Elder law attorney can draft a grant deed transfer with a life time occupancy agreement to avoid these problems.

Take advantage of a free phone consultation or appointment for a free 30 minute consultation to review your individual situation and determine if you would benefit from our experience and legal services.

For more information go to www.la-lawcenter.com or call us at:

Local Phone: (818) 241-4238 or

Toll Free Phone: (877) 537-8283

California Medi-CAL Planning - Part Two

This is PART TWO in our blog helping middle classed family members understand how to qualify for  Medi-CAL (Medi-Cal in California) to pay part or all of the cost for skilled nursing home care.

Always remember, you do not operate on yourself and we highly recommend that you get assistance from a qualified elder law attorney for your family’s Medi-CAL planning, allows you to legally qualify for the federal and state Medi-CAL Program. There are several strategies a family can use to make sure their loved one can qualify for Medi-CAL Long Term Care Benefits.

1. Intend to Return Home

If a single person receiving Medi-CAL care in a facility owns a house, this family home does not disqualify them form Medi-CAL, but could be subject to sale to pay for Medi-CAL expenses. The house is only protected if a qualifying child or dependent lives there or if the recipient intends on returning home. In California you must always have the Medi-Cal recipient (or their attorney-in-fact) sign an intent to return home.

Most families sell the home and end up with a large amount of cash that must be spent down before the loved one qualifies for Medi-CAL. Keeping the home avoids losing the entire value of it to spend down. By retaining the home, Medi-CAL recovery may not come after the full value of the home when the loved one dies.

Potential rental income from the house would also go towards paying the nursing home care cost and reduce the amount that Medi-CAL would have to pick up. This could mean that Medi-CAL recovery using this strategy might go after a smaller share of its cost in the recovery process.

In California, an experienced Elder Law Attorney may be able to help you transfer the home to an irrevocable trust to prevent Medi-CAL recovery on the family home.

2. Medi-CAL Treatment of a Home

If the community spouse lives in the home then the home is exempt from determining Medi-CAL eligibility. It does not count as an asset and prevent the institutional spouse from receiving Medi-CAL help. On the other hand any other real estate property, not the primary residence, will have to be converted to cash and spent down before Medi-CAL will start paying the bill.

If the well spouse living in the home does not in turn need Medi-CAL help in the future then one of two things can happen to the house after the death of the institutional spouse. Legally Medi-CAL has a claim against the property for recovery services. At the death of the community spouse, the property cannot be sold until the lien is satisfied.  

In California,  if the property is properly transferred into a Medi-CAL Asset Protection Irrevocable Trust, the state does not consider the house an asset for recovery. Always work with an experienced elder law attorney when dealing with recovery issues. You can never assume what your state recovery program will actually do.

 We will discuss more issues regarding real property in our next blog.

We invite you to take advantage of a free phone consultation or appointment for a free 30 minute consultation to review your individual situation and determine if you would benefit from our experience and legal services.

For more information go to www.la-lawcenter.com or call us at:

Local Phone: (818) 241-4238 or

Toll Free Phone: (877) 537-8283

California Medi-CAL Planning - Part One

  A middle classed family facing the prospect of a loved one needing long-term care that has a moderate income and assets may need  Medi-CAL (called Medi-Cal in California) to pay part or all of the cost for skilled nursing home care.

Using a qualified elder law attorney for your family’s Medi-CAL planning, allows you to legally qualify for the federal and state Medi-CAL Program. There are several strategies a family can use to make sure their loved one can qualify for Medi-CAL Long Term Care Benefits.

 Over the next few blog posts we will give a brief overview of these strategies.

1. Prepaid Funeral Instead of or in Addition to Burial Funds

Federal rules allow a person on Medi-CAL to keep up to $1,500 for funeral expenses. California allow an applicant to buy a prepaid funeral plan with  additional costs such as the burial plots, caskets and vaults to be tacked on, thus raising the limit.

2. Use of Spend Down Resources

People assume money being spent down for Medi-CAL eligibility needs to be applied to care costs. In reality, Medi-CAL is only interested in seeing the potential Medi-CAL recipient's resources reduced to less than $2,000. How the money is spent is only questioned if there has been a transfer for less than value.

In order to qualify for Medi-CAL more quickly, you may want to use some of the “spend down” money to pay off debt, trade in the old car and buy a new one. (Medi-CAL typically allows a community spouse to retain just one car), or fix up the house. Do not let a skilled nursing staff member tell you that you can only pay for nursing care to qualify for Medi-CAL…this is NOT TRUE!!!

3. Stacked Gifting is only allowed in California

California is the only state that has not adopted the Deficit Reduction Act, and stacked gifting is still legal and allowed by Medi-CAL as long as it is completed in a specific way. This is very tricky and should be guided by a California Elder Law Attorney. 

What you do not know can hurt you... stay tuned to this blog for more Medi-CAL Planning tips.

 

 Take advantage of a free phone consultation or appointment for a free 30 minute consultation to review your individual situation and determine if you would benefit from our experience and legal services.

For more information go to www.la-lawcenter.com or call us at:

Local Phone: (818) 241-4238 or

Toll Free Phone: (877) 537-8283

Perpetrators of Elder Abuse Are Usually Family Members

Elderly people need trustworthy family or individuals to help them as they age. As people grow older they need guidance either physically or psychologically, which makes them dependent upon caregivers or family members. This dependence makes them especially vulnerable for abuse.

It’s hard for an older person to complain about someone taking advantage of them when that person is taking care of them by providing meals, transportation and making financial decisions. The threat of cutting off support to the elderly person from the child or caregiver is enough to keep them quiet about theft, physical abuse or neglect. Threats of violence may also be used against them.

Nearly a tenth of the elderly population is estimated to be abused, however; only 10% of it is ever reported. Abuse in nursing homes has more attention towards it but most elder abuse comes from family members. Most states have laws to protect the elderly from this abuse.

Here are some of the ways the elderly could be abused:

·       Sexual abuse

·       Physical abuse

·       Emotional abuse

·       Financial abuse, stealing money or changing title on assets

·       Active neglect where a caregiver actively fails to fulfill care-taking functions, such as abandoning, depriving them of food, water, heat, hygiene, eyeglasses, dentures, or other health related services

·       Passively neglecting by not willful failure of care-taking responsibilities, such as ignorance of care giving knowledge, infirmity, or disputing the value of services.

·       Self-neglecting by the individual not able to care for themselves.

Every state has an agency to receive a complaint about abuse. Failure to report elder abuse, in certain states, is a crime. To contact an abuse complaint department, visit http://www.cdss.ca.gov/agedblinddisabled/PG1298.htm and call one of the various departments in your area.

The No Matter What Documents!! Power Of Attorney Documents

Sadly, death or mental incapacity due to illness or accident may strike at any time. Executing these documents NOW, while healthy and competent will prevent the need for unnecessary court intrusion and expense, and unintended consequences!

With respect to creating these ‘NO MATTER WHAT DOCUMENTS’… there is no time like the present!  There are two kinds of Powers of Attorney, one is for health care and medical decisions and the other is for financial decisions. Both of these are important for you and your loved ones to have.

1. Choosing a Personal Representative for Health Care Decisions

The Advance Health Care Directive allows you to make decisions about the ability to keep you alive in certain circumstances. This may include life support, artificial nutrition or hydration. You may also specify any medications you would want or where you would like to spend your last moments. These documents are flexible and help your family members guide you through your last wishes.

Executing an Advanced Health Care Directive (medical durable power of attorney) assigns the person of YOUR CHOICE to act on your behalf to make medical decisions if you are mentally incapable of making those decisions yourself, without the need of proceeding to court for an appointed conservator of your person.

2. Choosing a Personal Representative for Financial Decisions

For financial decisions, you, as the principal, appoint one or more people to be your “attorney-in-fact” to all of your financial decisions. Your attorney-in-fact can make all the same financial decisions regarding your assets and liabilities as you can.

Power of Attorney can take effect immediately or be specified to take effect when you become incapacitated or incompetent as declared by one or more physicians. This is why the power of attorney is considered durable, because it survives your incapacity or incompetency.

Executing a Durable Power of Attorney identifies a the person of YOUR CHOICE to act on your behalf to make financial decisions if you are mentally incapable of making those decisions yourself, without the need of proceeding to court for an appointed conservator of your estate (assets).

3. Choosing a Personal Representative for Communications with Doctors and Medical Facilities

Under the HIPAA Privacy Rule, an individual may authorize release of his or her protected health information (PHI) to only a specific person(s). Executing a HIPAA Release Form allows your doctor to speak with those you designate regarding your health issues if you are mentally incapable… even for a short time.

   Take advantage of a free phone consultation or appointment for a free 30 minute consultation to review your individual situation and determine if you would benefit from our experience and legal services.

For more information go to www.la-lawcenter.com or call us at:

Local Phone: (818) 241-4238 or

Toll Free Phone: (877) 537-8283

VA AID & ATTENDANCE RULES MAY BE CHANGING!

     Many US Wartime Veterans and their widowed spouses that are over the age of 65 can currently qualify for a pension called Aid and Attendance pension that can help pay for cost of long term care.  In many cases, we help qualify needy veterans (widowed spouses) for this pension even though they have gifted away assets greater than the limits imposed by the VA.  But we have been notified, this may be changed and gifting will not be allowed for VA benefits qualifications.

   Congress is in deep discussions about the increase in veterans applying for VA benefits and the dishonest practices of certain financial investment or insurance companies trying to sell annuities to naive seniors in order to qualify them for VA benefits and in some cases they do not qualify or are then disqualified for Medicaid (Medi-CAL in California). This sells practice is rapidly growing and causing seniors may financial problems and false promises. United State Senate is reviewing legislation to impose a look back and a penalty period, similar to what the Medicaid program has in place with no gifting.

     

    This legislation must go through many reviews and steps before it can be voted on by both houses of Congress and then presented to the President for his approval, it does call for a 3 year look back and a penalty that would equate to a number of months of ineligibility for benefits based on the amount of money transferred. It is geared to be very similar to the way the Medicaid rules worked before Congress changed them in February, 2006 under legislation known as the DRA (Deficit Reduction Act).

    We in California are lucky at the moment that we do not have the DRA adopted in our state (in regards to Medi-CAL or VA Benefits, so for the time being, it is important to look at your estate and if you think VA or Medi-CAL planning is an important to you or your family, you should talk to an elder law attorney ASAP.  We anticipate that any changes to both programs will not effective until 2013 or later.  Now is the time is now to closely consider you options for long term care plans. As an elder law firm, we can help you with many options that we can take now so that you won’t be hurt by any legislative changes in the future. 

    Please call us for a free phone consultation or appointment  consultation to review your individual situation and determine if you would benefit from our experience and legal services. 

What you do not know CAN hurt You!

For more information go to www.la-lawcenter.com or call us at:

Local Phone: (818) 241-4238 or

                                                        Toll Free Phone: (877) 537-8283

Having the Freedom of Choice with Long Term Care

It is very important to understand your loved ones care needs before they become a crisis for the care recipient, the care giver and the rest of the family. Understanding the process of government programs will also help in the care-giving decision-making.

Prior knowledge can help   prevent crisis planning and creating great stress for the well spouse and other family members. If your family does not have the money to privately pay for in home or assisted living care, option is Medi-CAL. Medi-CAL usually has its program target spend the end of their years in a nursing home. Other options are available, however, very limited with long waiting lists.

There are common funding options to help provide money for care services, such as  Long-Term Care Insurance,   Life Settlements, Reverse Mortgage,  Cashing Out Of a Principal Residence through Sale or Buyback Arrangement,  Retirement Savings Account.

Here are some common asset-saving strategies can be  Medi-CAL Planning,  Rearranging Insurance Plan, Private Home Care Arrangements,  Knowing the price of Communities that provide care,  Purchasing good Long-Term Care insurance, Commitments from the family to share care and  Tax Advantage Strategies. It is important to talk with someone who can review your entire estate and ways to protect your estate.

   Please call us for a  free phone consultation or appointment  consultation to review your individual situation and determine if you would benefit from our experience and legal services. 

What you do not know CAN hurt You!

For more information go to www.la-lawcenter.com or call us at:

Local Phone: (818) 241-4238 or

Toll Free Phone: (877) 537-8283

Probate 101… What Happens When Someone Dies without a Trust

Many people are unfamiliar with the various steps required before distributing an estate to its heirs and beneficiaries.

When a decedent dies without setting up a living trust a probate proceeding must be filed with the court. The Probate Court Procedures are required whether the decedent had a will or not, unless the estate is under $150,000 and doesn’t contain real estate. Property may then be transferred to the heirs by using an affidavit. The only way to avoid probate with real property and/ or over $150,000 in assets is to have assets transferred into a trust. The following is an overview of Probate.

In order to streamline the process, hiring an experienced probate attorney is very helpful. Probate attorneys are familiar with the process of transferring real estate and personal property, as well as the tax accounting aspects of distribution of the estate, such as the estate tax. They will prepare and file the necessary papers with the court and obtain a court order that distributes the property in the estate to the heirs and beneficiaries.

 Here’s an explanation of the process:

            When there is a will, an Executor is the person designated to administer the decedent’s estate. When there is no will, no Executor is named in the will, or the Executor is unable to act, an Administrator is appointed. These positions are considered Personal Representatives.
             
            The Personal Representative must collect, conserve, manage and control the assets of the estate, pay the decedent’s debts and taxes due and distribute the estate’s worth when there is a will. When there is no will, the estate is distributed by the laws of Interstate Succession. Interstate Succession generally states who will inherit your estate. This usually includes spouse and children first. If your spouse or children are not alive then relatives are the next to inherit. If there are not relatives, the property goes to the state.  
             
            The administration process of the estate begins when the Will, or no will, has been admitted to probate by the Superior Court and Letters Testamentary or Letters of Administration are issued. These letters give the Personal Representative the ability to gather the decedent’s assets into their estate.
          
             In California, the law requires notice from the estate to all creditors of the decedent to file their claims. If this notice is filed with the court and then published in a local newspaper, creditors have a window of four months to file their claim with the court. If there is no claim within the four month window, the estate does not have to pay.
            
             The personal representative must also create an inventory of the assets owned by the decedent when they die. Tax returns and accounting that need to be filed with the court come from this inventory. The inventory and non-probate assets, such as life insurance, joint tenancy property and trust assets are required for tax purposes, so they must be appraised.
           
             The estate tax is placed upon the transfer of property at death. Generally the estate is able to pay for the tax but it may be charged to the beneficiaries of the estate. Returns are filed for decedent’s estates with a gross value over the estate tax exemption amount. A gross value includes assets in the probate estate and may also include life insurance, jointly-owned property and assets that were given by the decedent. The estate tax must be paid by 9 months.
             
             The length of the probate process depends on the complexity of the estate. It may take only 6 months, but it can also continue on for years. In order to avoid the probate process, people implement a living trust before they die.
            
              Personal Representatives and the probate lawyer’s are compensated for the work, in California, by collecting a percentage of the gross estate.
             
       Living Trust’s help reduce the headache of having to deal with a prolonged probate. Living Trust’s allow for the nearly immediate distribution of assets, and generally cost less than a probate.

Take advantage of a free phone consultation or appointment for a free 30 minute consultation to review your individual situation and determine if you would benefit from our experience and legal services.

For more information go to www.la-lawcenter.com or call us at:

Local Phone: (818) 241-4238 or

Toll Free Phone: (877) 537-8283