 Elder Law Update
North Carolina Edition
ELU First Anniversary Issue!
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Vol 2 Issue One
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June 2008
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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!
 Something
happened last week. Never mind what the official rules say. Summer came. I popped the car door open at the mall and was slammed by a
130° gust. I understood then. Summer had arrived.
We (the
family) also straightened out our summer schedule, and it looks like a busy
one. Also, I'll be working on a few longer term projects this summer and I'll
be sharing more of that with you in the Fall.
One
project involves fully incorporating into the practice the Veterans' benefits I
wrote you about last week. It is something like a prism held up to the light;
every time I give it a slight twist I see another color, or something I hadn't
seen before.
When
properly incorporated into an overall plan, the results can be truly dramatic. I'll
only pound in one point in this edition: You (or someone you know) may very
well qualify even if you do not think you do at this moment.
If you
haven't yet downloaded our Veterans' benefits brochure (Veterans Benefits: The Missing Puzzle Piece), do so now. And turn on
the color. It is a nice looking brochure, if I do say so myself (I didn't
design it, by the way . . . thanks to Jared Reeder
of Asheboro).
If you'd like some "hard copy" brochures, drop me an email and we'll get them
right out.
Dr. Beth Hodges is back this month with some helpful
observations about seniors living alone and important developments to be on the
look out for. And on the topic of loved ones living alone . . . .
Barbara
Dunn, a geriatric care specialist and president of Elder Care Management in Savannah, is starting off
a multi-part series on disaster preparedness for older family members. Actually, this is
a "back by popular demand" feature we ran last summer during hurricane season.
I received many comments on it, and because we have more than tripled the
readership of Elder Law Update since
then, I decided to run it again.
Warren
Coble takes a look at various Social Security family benefits and explains the
main points below.
Soon-to-be-newly-wed
Rose de Vries continues her look at federal insurance in the banking industry
and how various sorts of POD, trust and retirement accounts are insured. Many
of you will have at least one "Now-I-Didn't-Know-That" moment reading her
article.
Finally,
with summer comes hurricane season. Hurricane season, of course, is of vital
concern to our many readers who live a short distance from the coast (both in Georgia and North Carolina). Hurricanes, however, can be
almost as worrisome to those leaving further inland. Asheboro, North Carolina,
and surrounding areas have been pounded in the past by such extreme weather.
Thanks to
you all for a great year. With this issue we begin Year Two of Elder Law Update. You can "Take a walk down memory lane" by visiting the Bone Yard (Elder Law Update archives) by going HERE.
I welcome your
comments and suggestions, and am always interested in anyone who'd like to
share some thoughts in these spaces.
Have a
great summer!
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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HOME ALONE XX . . . the older years
Beth Hodges, MD
Who
do you live with? It is a question I ask all my new geriatric patients. The
answer varies . . . "my spouse," "my son," even "my sister" are possible
answers. The one that I give special attention is, "I live by myself."
For
many seniors, living alone can be a reasonable option. But as with driving
privileges, certain criteria need to be met and there are pitfalls to avoid.
The
most obvious question is, what is the physical status of the patient? Is he
able to do activities of daily living (for example, dressing, bathing, simple
food preparation) independently? Does he still drive and manage his finances?
Though relatives and neighbors can certainly help, managing a household can be
complex. Consider also the size of the home. A small condominium is a lot
different to manage than a multistory house on five acres.
Next,
what is his mental capability? A lot of well-meaning relatives ("Come on, Dad
likes his privacy. He's fine by himself. We check on him once a week.") do not
realize what attractive and easy targets older people are for con men going
door to door. They can be fooled or simply strong armed into giving up their
valuables. Then there is the danger a person with mild to moderate memory loss
can pose to themselves.
Every
year, if you read the papers, you will see stories of elderly people burning
down their houses by turning a burner on the stove and forgetting. When I lived
in Ohio, one
prominent elderly couple died when the wife went into the garage and started
the car to warm it up in preparation for going out, forgot, and went to bed.
They died in their sleep of carbon monoxide leaking up from the garage below.
Also
important to consider is the impact of social isolation. Sure, giving up
independence and the home they've had for fifty years is traumatic, but after
an initial adjustment period, most seniors thrive living around other people
their own age. Rates of depression drop, diabetes and high blood pressure get
easier to control, physical complaints decrease. I have even seen modest
improvement in dementia patients who were previously isolated.
Some
seniors really need a supervised environment for management of their
medications. Taking multiple meds can be confusing and mistakes can result in
serious consequences.
Once
you have determined that Uncle Frank can no longer live by himself, the next
step is to decide what type of environment he needs. The options include living
with other family members, independent senior living apartments, assisted
living, and a skilled nursing facility.
Living
with other family members is self-explanatory and is often the best option. The
only caveat is that the family members Uncle Frank moves in with must be
capable of and willing to provide the care he needs. Sometimes Uncle Frank
moves in with Cousin Betty so his pension check can subsidize her rent, and the
only person who benefits is Cousin Betty.
To
decide between the other options, it can be very helpful to have a conference
with the individual's physician. Doctors know what criteria have to be met for
placement in the different types of facilities. Once you determine the level of
facility needed, you should take Uncle Frank there for a tour and to meet with
the administration staff to check on pricing and bed availability. As with
anything involving the government, there are copious forms to be filled out
first. Sometimes there is a waiting list as well, so it is smart to do your
research before a crisis occurs, if possible.
A
discussion of prices and payment options would fill a book and is beyond the
scope of my knowledge. Suffice to say, all of these places have social workers
on staff to help families explore their options. (Thank goodness!)
Beth Hodges, MD, is a principal in Hodges Family Practice, with offices in
Asheboro and Ramseur, North Carolina.
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Evacuation Planning for Older Adults
Barbara
J. Dunn, RN, MSN
Editor's note: This is the first in a three
part series telling you how to begin devising an emergency evacuation plan for
the elderly.
Hurricane Katrina dramatically illustrated the importance of
planning the safe evacuation of older adults. Unfortunately, both communities
and families often overlook evacuation planning for older adults. This article
aims to raise the awareness of family members about the need to have an
evacuation plan in place and to
identify a few key measures to increase the older adult's safety and comfort
should an evacuation be necessary.
This is a big topic.
I'll show you how to get started. In this issue of Elder Law Update we'll discuss a few preliminary considerations. In
the next two issues I'll review important and very specific areas to address
with your older loved one.
First, draft an
evacuation plan with your older adult loved one, making sure his or her wishes
are included in the plan. Make sure the loved one has a copy of the plan and
schedule time to review it periodically. Many older adults say they won't
evacuate. Don't be deterred and forge on with planning.
Increasing your
loved one's comfort and safety during an evacuation begins with (1) a written
evacuation plan, (2) that reflects the older adult's unique evacuation needs.
The four critical areas to address are mobility needs, communication needs,
medication needs, and, yes, pet needs.
Caution!
Evacuations tend to
be "equal opportunity events" leaving all of us subject to whatever comes our
way-especially without prior planning. "My parents will never go to a shelter" or "my aunt will not evacuate on public transportation" are not wise positions to
take. A life could be in jeopardy. Emergencies by their very nature come
unannounced and are chaotic. Many will be forced to rely on public
transportation and shelter.
Further, older
adults often have no family members nearby, leaving others to plan for their
well-being during an evacuation. Remember,
if you don't plan for the older adult in your life, someone else may and you
may not be happy with the outcome. Last, even if you live near your loved one,
don't assume you will be able to reach him or her. Be prepared for everything
and anything.
In the next issue of
Elder Law Update I'll show you how to plan for mobility needs, communications
needs, and medications. If it looks like Coastal Georgia may be visited by a
hurricane before the next issue, we'll complete this article in a special
alert.
Barbara Dunn, MSN, is owner of Elder Care of Coastal Georgia, as
well as Chair of the Disaster Services Committee of the Savannah Chapter of the
American Red Cross. You may email comments and questions to Barbara by clicking
HERE.
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SOCIAL SECURITY BENEFITS FOR THE FAMILY
-Warren Coble
The
modern Social Security program is more than a retirement or disability
program. Congress and FDR originally designed
the program to replace wages lost by a worker due to retirement or death. Family benefits have been included since the
program's inception in the 1930's.
When
you start receiving Social Security retirement or disability benefits, other
family members also may be eligible for payments. For example, benefits can be
paid to your spouse if she/he is age 62 or older; or at any age, if she/he is
caring for your child (the child must be younger than 16 or disabled and
receiving Social Security benefits on your record). In some cases, divorced spouse benefits may be
payable.
Benefits
also can be paid to your unmarried children if they are younger than 18;
between 18 and 19 years old, but in elementary or secondary school as full-time
students; or age 18 or older and severely disabled (the disability must have
started before age 22).
If an insured worker dies, the family may be eligible for
benefits based on the deceased individual's work. If a deceased worker had enough credits, a one-time payment
of $255 may be payable after the death. This benefit may be paid to your spouse
or minor children if they meet certain requirements.
Family
members eligible to collect survivor benefits include a widow(er) who is 60 or
older; or 50 or older and disabled; or any age if he is caring for your child
who is younger than 16 or disabled and receiving Social Security benefits. In some cases, divorced spouses may also
qualify.
Children
of deceased insured workers can receive benefits, too, if they are unmarried
and younger than 18 years old; or between 18 and 19 years old, but in an
elementary or secondary school as full-time students; or age 18 or older and
severely disabled (the disability must have started before age 22).
Additionally,
the parents of a deceased insured worker can receive benefits on the deceased's
earnings if they were dependent on the deceased for at least half of their support.
Next
month, we will look at how actual benefits for the family are computed.
Social Security expert Warren Coble welcomes your questions regarding Medicare,
Social Security and Senior Life in general! Email Warren by
clicking HERE. |
More On: Is Your Money $afe?
-Rose deVries In light of the recent economic downturn, many are
asking: "Is my money protected?" While most banks in fact are FDIC insured -
which means that your deposits are protected up to a certain limit - you must
still be knowledgeable about how to setup these accounts to mitigate any chance of
loss.
It is important to understand which of your
accounts are protected and to what degree.
Today, the focus will be on two common ownership categories: Certain Retirement accounts and Revocable Trust
accounts. The knowledge you have about
these accounts can lead to big savings or huge loss - so you need to determine
if you have set up your accounts responsibly.
Certain Retirement accounts are owned by a single
individual and while there are many to choose from, only a select few are
insured by the FDIC in this category. The
most common insured type is the Individual Retirement Account (IRAs). These include the traditional IRA, Roth IRA,
Simplified Employee Pension (SEP) IRA and Savings Incentive Match Plans for
Employees (SIMPLE) IRA (although there are others that are protected as well, including
deferred compensation and self-directed plans). The FDIC combines the
retirement plans an individual has at a single banking institution and insures
that amount up to $250,000.As an example let us look at Bill and his financial
situation. Bill has $100,000 in
traditional IRA funds and $150,000 in Roth IRA funds at Bank A. At Bank B Bill has $30,000 in Section 457
deferred compensation funds. How much of
Bill's retirement funds will the FDIC insure?
The FDIC will insure all $280,000 of Bill's retirement funds because
he did not exceed $250,000 in his combined retirement funds at Bank A and the
additional $30,000 in retirement funds is in an account in another banking
institution.
There are additional details to consider in regards
to these retirement accounts. The
insurance coverage does not increase based on the number of beneficiaries named
to the account. If you have a retirement
account that was not mentioned above, visit the FDIC website for information regarding your
specific retirement account.
The next ownership category is Revocable Trust
accounts. These come in two main forms,
payable on death (POD) accounts and Living Trust accounts. POD accounts are informal revocable trusts naming certain people as the recipients
of the deposits upon the owner's death. Living Trusts, on the other hand, are formal revocable trusts established for
estate planning purposes. Determining
coverage for living trusts is a more complicated process so the focus will be
on POD accounts.
Unlike the retirement plans mentioned previously,
revocable trusts cover the interests of each beneficiary named to the account up
to $100,000 while the owner is still viewed as the insured party.
For example, Jack has Account A: a $100,000 POD
account and has made his wife Jill the sole beneficiary. Jill holds Account B: a $100,000 POD account
with Jack named as the sole beneficiary. The couple also has Account C: a joint POD account of $300,000 in which
their three children are named the beneficiaries. The FDIC will fully cover all three of these
accounts - totalling $800,000 - because each owner is entitled to $100,000 of
coverage for the interests of each qualifying beneficiary. In this case,
Account C has three qualifying beneficiaries. So each child is insured up to
$100,000 for both Jack and Jill.
An important note with these revocable trust accounts
is that FDIC coverage is provided solely for the owner's beneficiaries. This
does not include the owners themselves.
For example if Tom has a $300,000 POD account and names his two
daughters as beneficiaries he is leaving $100,000 uninsured because his two
daughters can only be covered up to $100,000 each for a total of $200,000.
As with the certain retirement accounts, there are
some points to consider with revocable trust accounts, particularly those
pertaining to beneficiary coverage. The
FDIC has certain requirements that must be met in order to ensure full
beneficiary coverage up to $100,000.
- The beneficiary must be the owner's spouse, child
(including adopted and stepchildren), grandchild, parent or sibling. Any other family members not mentioned above
are not covered by the FDIC.
- POD account beneficiaries must be identified by
name in bank account records.
- The account title must also indicate the trust
relationship: payable on death, in trust for, an acronym such as POD or some
other variation.
Done responsibly, setting up your financial
accounts can mean the difference between your money being protected versus uninsured.
To determine whether your bank is FDIC insured click HERE. Here you can enter the bank name and location to determine if it is in
fact insured.
Finally, I encourage you all to use FDIC's Electronic Deposit Insurance Estimator. Just answer a few simple questions and the
estimator will help determine if your accounts are fully insured.
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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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