 Elder Law Update
North Carolina Edition
Our Fifth Birthday Issue!
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This Month's Favorite Link
Check It Out!
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The All New, Drastically Revised, All Free: North Carolina Medicaid Guide
Come across an interesting link? Share it with me.
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PLEASE VISIT MASON LAW
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I WANT TO KNOW
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| If you have an idea or comment that will help me make this a better newsletter please send it to me. Just click! |
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Greetings!
 It's our Birthday! The fifth. I read somewhere that five years is some sort of magic mark . . . make it five years and the odds of your being around another five years go up astronomically. I don't see Mason Law going anywhere but up. We are busier than ever and our world remains full of people needing our help. We are grateful, profoundly so, to all of the friends, clients and cheerleaders who helped make it possible. Thank you.
Bob Joins the Senior Lawyers Division
Some years ago (maybe it was about five years ago, come to think of it) I decided to quit being a "joiner" and to hold my time commitments to church, family, law practice and only those other activities that would relate in some meaningful way to those priorities. That being said, I recently joined something new because, well, I wanted to.
In February Tom Sinks of the North Carolina Bar Senior Lawyers Division invited me to come down to New Bern in April and put on a Saturday morning presentation on Medicaid basics. Had a great time. All the guys (and a few gals) were great companions . . . in fact many of them were down right hilarious . . . constant good natured ribbing. The quarterly meeting was more like a Rotary Club's Sergeant-at-Arms report . . . NO ONE was safe.
Then the membership chair said something like "Hey! How old are YOU!?" (looking directly at me). Busted. I've agreed to send in my dues and I look forward to the next meeting in Salisbury. A big group of them have signed up for Elder Law Update and this is their first issue. Welcome aboard!
I don't know what it was that made the weekend so enjoyable. Perhaps it was that it was a group of friends who were far enough along in life that they'd learned not to take themselves too seriously (something my younger colleagues - and I - will no doubt learn as we continue to chronologically advance).
Memorial Day
Being the month of May, Memorial Day is coming up. To be sure, an overlooked observance, assigned a Monday and given little thought. I hope our little contribution below will give you all something to ponder.
Important Veterans Benefits
On a (somewhat) related note, under the General Heading "Overlooked Things" and subheading "Veterans" is the subject of Veterans Benefits. I have spent the better part of the past year growing my knowledge base in the area of Veterans Benefits - which can also include benefits for the widows of veterans.
I continue to be stunned at the lack of awareness many otherwise eligible vets - or their widows - have with respect to an incredibly valuable benefit that less than 25% of eligible veterans ever take advantage of.
IF YOU ARE A VETERAN OR KNOW A VETERAN; IF YOU ARE THE WIDOW OF A
VETERAN OR KNOW THE WIDOW OF A VETERAN LOOK AT THE ARTICLE BELOW.
We are beefing up the practice in this area, and you can read my "opening salvo" below.
And on the medical front . . .
Dr. Shevlin is back this month with an article that is of absolutely no personal concern to me. The topic is seniors failing to maintain adequate weight. On the other hand, it is a thoughtful article and presents some very important tips for families and those who serve seniors.
Banking Balm
We are hearing that these are uncertain economic times. The level of "scare" stories and noise in the media is increasing. Banker Rose deVries offers some common sense advice, some balm for the fears and looks at FDIC protection and how you can hedge that protection if you really feel it is necessary.
Social Security Front
And of course, Social Security Guy Warren Coble continues his look at how Social Security benefits are calculated.
Bob Mason
Certified Elder Law Attorney
Certified by the
National Elder Law Foundation, recognized by the American Bar Association as
the certifying entity for specialization in Elder Law.
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Surprise! A Great Veterans Benefit Might Be Available
Bob Mason
 Are you
(or do you know) a veteran, or the widow of a veteran, over age 65 who is
homebound, in an assisted living facility or in a nursing home? If so, I have
some great news.
A little
known and usually misunderstood benefits program variously called Improved
Pension or "Aid & Attendance" might be available to boost monthly income by
as much as another $1,842. Published estimates I have seen declare that less
than 25% of eligible veterans or widows of veterans ever collect a dime.
While
most VA cash benefit programs are restricted to vets who were wounded or
injured while serving in the armed forces, an Improved Pension or Aid
&Attendance benefit might be available to any veteran 65 years or older or
his or her widow if the veteran served at least 90 days active duty, with 1 day
of that 90 days during a VA defined period of hostilities.
The
veteran could qualify for as much as an additional $1,842 monthly, and his
widow could qualify for as much as $998 monthly. The exact amount depends upon
monthly adjusted income.
The
problem is that most people believe that monthly income and the available VA
benefit may not exceed $1,842 or
$998. Not so!
The
monthly income is adjusted downward for a variety of medical, insurance and
long term care expenses, before determining the amount of benefit available.
Here is
an example. Kenny Kilroy entered the Army in 1945 and spent a few months in a
replacement pool at Ft.
Bragg before the end of
WWII. Discharged from the Army in 1946, Kenny returned to Asheboro, North Carolina,
and went into a small family business. During the early part of 2008 Kenny's
health declined some and he now lives in an assisted living facility near Asheboro.
Kenny's
Social Security benefit pays $1,500 monthly, and he has a small annuity that pays
$300 month. $1,800 monthly will not cover the $3,000 monthly assisted living
facility bill.
Time to
panic? Not at all. Kenny's ADJUSTED income will be at least a negative $1,200 (and maybe more if he
has other medical or health-related expenses). Under that scenario Kenny Kilroy
should qualify for $1,842 in Aid & Attendance and he will have more than
enough to cover the assisted living facility bill.
There are
asset restrictions. As with Medicaid, some assets count, some assets don't (the
lists aren't the same for Medicaid and Aid & Attendance). Generally
speaking the applicant can't have more than $80,000 in countable assets. It
might even be less . . . the VA uses no "bright line" amount.
Unlike
Medicaid, it is fairly easy to "reconfigure" assets to qualify.
By law,
the only people that can help compile an application for a veteran or a widow
are:
- A licensed attorney
- A veterans service
organization (such as the VFW, AmVets, American Legion), or
- A state Department of
Veterans Affairs office.
By law,
it is illegal to charge a veteran for compiling and submitting an application.
On the
other hand, it is not illegal to charge a veteran for the planning involved in
qualifying for the benefit and implementing that plan.
Further,
veterans, or the widows of veterans, do not live in a vacuum. They likely have
other concerns. Also, an advisor who may not know what he or she is doing, may
succeed in qualifying someone for VA benefits and hopelessly disqualify the veteran for Medicaid or
other needed benefits in the process of qualifying for Aid & Attendance.
This is tricky business.
Correctly
approached, however, and correctly integrated as part of an overall plan, this
particular VA benefit can be a powerful tool.
We are
actively pulling this planning tool into the practice. In the months ahead, I
will tell you more. Stay tuned.
PS If
anyone needs to know the significance of Kilroy, send me an email, and I'll be
happy to explain.
Bob Mason
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WEIGHT LOSS IN THE ELDERLY
Patricia Shevlin, MD
Over the
last few years there has been an emphasis placed on "The Obesity Epidemic".
This
emphasis is justified because obesity is seen at all stages of life, including
the elderly. Seniors are, however, likely to suffer from weight loss and it can
be a poor prognostic sign. Weight loss has been associated with increased
mortality, even in the elderly who otherwise appear well.
As with
most problems in the elderly, the cause of weight loss can be multifactorial.
Chapters of geriatric textbooks are devoted to medical causes of weight loss
and I have no intention of boring anyone with a list of possibilities. I will
instead confine my comments to some of the things I ask family members to watch
for in determining a cause. The patient himself is an excellent source of
information - but the family can provide some observational data that the patient
may not realize.
Having a
meal with the senior can provide a lot of information. If the person is living
in the community, can he cook for himself? Cooking requires good eyesight,
memory, and manual dexterity to chop food or open cans. If the senior is trying
to cook but has limited what he prepares to make the task easier, he could
experience a slow weight loss over time. Watching the senior eat can also be
helpful. A tremor can make it difficult to cut food or to bring it to the
mouth. This can make a meal less enjoyable and may make the senior give up
eating sooner than usual.
Is chewing or swallowing a problem? Again the choices of food could be
contributing to weight loss. The sense of taste changes with age such that food
may need to have more seasoning to taste appealing. Because this change is
gradual it can easily be missed as a cause of decreased appetite.
Is the senior
so worried about following a special diet that he is over-limiting his diet?
(Yes, sometimes the patient is too good at following directions).
Knowing
if a person is eating alone can be a clue to weight loss. Social isolation can
lead to depression, which is one of the major causes of weight loss. If the
person is eating alone, is it because he is unaware of opportunities available
to eat with others, or is he embarrassed by some difficulty he has with the
mechanics of eating? Is the cost of meals a barrier, or transportation?
As you
can see, a lot of information can be gathered even before medications are
reviewed, a physical exam done or lab tests ordered. Addressing the issues that
are discovered is yet another challenge, but if we are caught up only in the
medical model we miss a lot of potential to make a difference.
Patricia Shevlin, M.D., is a principal in Asheboro Family Physicians with offices in Asheboro, North Carolina.
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HOW YOUR SOCIAL SECURITY BENEFIT IS CALCULATED
-Warren Coble
Continuing
last month's article we consider some additional factors which affect the amount
of Social Security benefits.
Delayed
retirement credits are applied to the PIA of individuals who delay entitlement
to some point after age 66. This
automatic increase is applied by Social Security from the time the individual
reaches full retirement age until they start receiving their benefits or until
they reach age 70. The percentage of
increase varies depending on the year of birth.
For example, individuals born 1943 or later will have 8 percent per year
added to the PIA benefit for each year that they delay signing up for Social
Security beyond their full retirement age.
This could ultimately increase the benefit by 32%.
Additional
wages earned after age 62 may or may not increase the Primary Insurance
Amount. Since wages in the years prior
to age 60 are "indexed" to current values, unless the yearly earnings after age
60 are higher than the earlier "indexed" earnings, no increase is given.
A final
factor affecting the monthly amount of the benefits payable is the receipt of a
pension (usually derived from government employment) that was not covered by
Social Security taxes. Many times,
certain government employers (some Federal, some City, some School) have their
own separate retirement systems.
Individuals retiring from non-covered employment who also have
sufficient Social Security Quarters of Coverage to qualify for Social Security
Retirement are subject to the Windfall Elimination Provision (WEP). WEP reduces the first percentage amounts in
the computation to lower, but does not eliminate the Social Security Benefit.
Next
month, we'll look at the issue of family benefits.
Social Security expert Warren Coble welcomes your questions regarding Medicare,
Social Security and Senior Life in general! Email Warren by
clicking HERE. |
Is Your Money $afe?
Rose deVries
With today's turmoil in the financial
marketplace, banks find it more and more difficult to compete. In fact, over
the span of the last 70 years, 3,553 banks have failed in the U.S. Of those failed
banks, 42 are Georgia-based and 22 operate in North Carolina. So when a bank closes - what
happens to your money? Don't let your hard-earned dollars disappear as a result
of someone else's bad business decisions! Take advantage of ways to fully
insure all your deposits.
The Federal Deposit Insurance
Corporation (FDIC) will insure your deposits, dollar for dollar, including
principal and interest, up to its insurance limit. What makes the "insured bank" designation so
special is the fact that all FDIC-insured banks must meet high standards for
financial strength and stability. The FDIC, with other federal and state
regulatory agencies, reviews the operations of insured banks to ensure these
standards are met. (Visit www.fdic.gov for more information.)
Considering the current economic downturn,
investing your finances at an FDIC-insured institution is a must. In fact, a
recent announcement by federal bank regulators noted that they plan to increase
staffing 60 percent in coming months to handle an anticipated surge in troubled
financial institutions. Currently, there are 76 banks on the FDIC's
"problem institutions" list, which would equate to about 10 expected
bank failures this year. Historically, about six banks fail per year on average,
FDIC officials said.
The standard FDIC-insurance amount is $100,000
per depositor per insured bank. Certain retirement accounts, such as Individual
Retirement Accounts (IRAs), are insured up to $250,000. You may qualify for more than $100,000 in
coverage if you own deposit accounts in different ownership categories (i.e.,
single accounts, retirement accounts, joint accounts, revocable trust
accounts). Additionally, a corporation,
partnership or unincorporated association is insured separately from personal
accounts of the stockholders, partners or members. But, not all deposits are created equal in
the eyes of the FDIC! The following is a
table that shows what is and what is not covered by FDIC insurance.
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Covered (up to the
insured limit)
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Not Covered (even
if offered by an insured bank)
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Checking accounts
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Stocks
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Now accounts
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Bonds
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Savings accounts
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Mutual funds
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Certificates of Deposit (CDs)
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Life insurance policies
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Annuities
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Municipal securities
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To give you an example of how FDIC
insurance works, let's use Bob and Sarah Smith.
Bob owns a CD in the amount of $180,000.
He and his wife, Sarah, jointly own an account in the amount of
$160,000. Additionally, Bob has a
business account for his pet supply company, PetsRus, in the amount of
$100,000. As you can see by the
following table, Bob is not fully insured.
He's leaving $80,000 vulnerable!
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Single Ownership
Acct.
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Balance
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Bob CD
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$180,000
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Single Ownership
Insurance Summary
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Balance
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Insured
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Uninsured
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Bob
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$180,000
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$100,000
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$80,000
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JointOwnership
Accounts
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Balance
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Bob and Sarah, jointly
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$160,000
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Joint Ownership Insurance
Summary
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Balance
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Insured
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Uninsured
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Bob
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$80,000
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$80,000
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$0
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Sarah
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$80,000
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$80,000
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$0
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Business Accounts
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Balance
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PetsRus
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$100,000
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Business Insurance
Summary
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Balance
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Insured
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Uninsured
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PetsRus
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$100,000
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$100,000
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$0
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All Accounts
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Balance
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Insured
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Uninsured
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Grand Total
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$440,000
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$360,000
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$80,000
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If you find that FDIC insurance
does not cover all your deposits, you can either open multiple title accounts
in different rights and capabilities of family members or run around town, depositing
your funds in multiple insured banks. A
less well-known, but more convenient option is the Certificate of Deposit Account
Registry Service (CDARS). CDARS is run
by the Promontory Interfinancial Network.
With CDARS, you can purchase a CD from one of any 1,700 participating
institutions and that deposit is parceled out to other banks, qualifying you
for up to $50M in FDIC coverage. Put simply, this means that a customer is able
to deposit up to $50M with one banking institution and have those monies fully
insured by the FDIC. For a complete listing of banks which participate in
CDARS, visit www.cdars.com. For
example, to fully insure Bob's CD, his insured bank ("Bank A") would give him a
CD worth $95,000 (leaving room for interest) and send his remaining $85,000 to
another insured bank ("Bank B") which will issue Bob a CD for the remaining
$85,000. With CDARS, Bob will receive
one statement from his primary bank showing all fully-insured deposits. But the
most important thing Bob gets is peace of mind, knowing that his deposits are
safe.
I challenge
all of to confirm that your bank is "insured" and if so, that ALL your deposits
are fully covered. To determine whether
a bank is FDIC insured, go to www.fdic.gov/deposit/index.html/,
click on "Bank Find" and search for your bank.
Alternatively, you can call the FDIC at 1-877-275-3342 and a
representative will search for you. Once
you've determined that your bank is insured, utilize the Electronic Deposit
Insurance Estimator at www2.fdic.gov/edie/ or ask your bank representative to
determine what portion, if any, of your deposits are uninsured. Finally, for those amounts that are not
insured, call your bank to find out if it offers the CDARS service. If not, visit www.cdars.com
to locate a member bank near you. You
may also call CDARS directly at 888-776-6426.
You've worked hard for your money, so protect it!
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In Remembrance
We may not, and should not, approve of war and violence. But until we learn to make a better world, that is the way it is, and this is the lesson of Memorial Day: Nothing is ever wholly negative, nothing is ever wholly lost. Despite all grief and human wastage, even over dead men's blood and bones, we manage to progress a little.
Let us then remember the dead - in all wars - gratefully. And let us hope that because of them we may become a touch better, a thimbleful wiser, and a handshake more tolerant of this changing world they did not live to see.
--- Arthur Hailey
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The Usual Disclaimer: This newsletter is for general information only. Please do not rely on anything you read in this email as definitive legal advice applicable to you. All situations are different, including yours. Nothing you read in this newsletter is a suitable substitute for professional advice you may receive from your attorney, your accountant, or your tax advisor.
All contents copyrighted 2008 by Mason Law, PC. Contents may be republished with written permission of Mason Law, PC (which permission will usually be given!). |
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