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LAW OFFICE OF RAYMOND J. CANNON, JR., P.C.
Estate Planning, Elder Law, Medicaid-Long Term Care Planning,
Asset Protection Planning, Tax Planning, Real Estate,
Probate and Estate Administration |
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Our mission is to preserve and protect your assets. | |
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 THE NUMBERS
It is estimated that as many as 5.1 million Americans may have Alzheimer's disease.
The incidence of the disease is rising in line with the aging population.
Although Alzheimer's disease is not a normal part of aging, the risk of developing the illness rises with advanced age. Current research from the National Institute on Aging indicates that the prevalence of Alzheimer's disease doubles every five years beyond age 65.
As our population ages, the disease impacts a greater percentage of Americans. The number of people age 65 and older will more than double between 2010 and 2050 to 88.5 million or 20 percent of the population; likewise, those 85 and older will rise three-fold, to 19 million, according to the U.S. Census Bureau.
It is estimated that about a half million Americans younger than age 65 have some form of dementia, including Alzheimer's disease. (This is referred to as young onset or early onset.)
It is estimated that one to four family members act as caregivers for each individual with Alzheimer's disease.
Source: www.alzfdn.org (The Alzheimer's Foundation)
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LAW OFFICE
OF
RAYMOND J. CANNON, JR., P.C.
Admitted
Massachusetts Bar
United States Tax Court
Federal District Court of MA
United States Supreme Court
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 3 YEAR REVIEWS We encourage you to take advantage of our free one-hour consultation to review your estate plan on your plan's third year anniversary. Please call 978-989-9999 for an appointment.
Please notify us at ray@rjcannonlaw.com
if your contact information has changed since your last visit.
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Please feel free to forward this Newsletter to your family, friends and associates who may be interested in a one-hour free consultation to discuss these topics. |
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JANE'S SISTER SHOWS SIGNS OF DEMENTIA
Jane called me to tell me that she thought her sister (Betty) was showing signs of dementia. Her sister is quite a few years older than Jane and has been living alone for the past 4 years. I asked Jane what she noticed and she indicated that her sister has been having trouble with everyday tasks, has not paid her bills, does not seem to be able to follow a conversation, and has not cared for her appearance (which she always had). Her husband died 4 years ago and left her a large insurance payout and his social security. Jane wants to know what she should do.
I told Jane that at the very least Betty should have a health care proxy (so that Jane could make health care decisions for Betty if she were no longer able to make her own), a durable power of attorney (so that Jane could manage Betty's finances if Betty were no longer able to) and a will.
Jane then asked whether there was anything that could be done in the event that Betty had to go to a nursing home. I explained that any asset transfers (transfers for which nothing of value was received in return) would be deemed "disqualifying transfers" as far as Medicaid is concerned unless the transfers were made five years prior to Betty's application for long term care benefits under the Medicaid program. A "disqualifying transfer" is one that will cause a Medicaid applicant to be denied long term care benefits because of the transfer. If someone applies for long term care benefits during the "look back" period, Medicaid will deny the application unless the transfer is "cured", i.e. the asset is returned to the applicant.
Depending upon the aggressive nature of the dementia, Betty may be able to remain out of a nursing home for five years. Some dementias progress quite rapidly while others more slowly. If asset transfers were to be made, it would be important that they be done in such as way that the transfer could be cured in the event of the need of nursing home care prior to the expiration of the five year look back period.
LESSON: The rules and regulations under the Medicaid program are extensive and complex. Seniors (or their family members) should always consult with an elder law attorney prior to making any asset transfers as they may disqualify them for long term care benefits if such a need should arise.
If you are new to the Jane Chronicles, you may read past issues by going to our website:
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Facts about Social Security
If one partner in a marriage earns significantly less than the other, the lower-earning spouse can collect spousal benefits rather than payouts based on his or her own earnings history.
The spouse can get the greater of their own or 50 percent of the other spouse's PIA (Primary Insurance Amount)..The lower-earning spouse is not eligible until the higher earner starts getting benefits, but both can start as early as 62.
A divorced spouse who was married for more than 10 years and has not remarried can draw against the ex-spouse's work history. Widows and widowers can receive the higher of their own or their spouse's monthly payment, but not both.
The Social Security website offers an explanation of how your benefits are calculated, but it's a little hard to follow. You can find a simpler explanation at www.myretirementpaycheck.org, a website sponsored by the National Endowment for Financial Education.
To learn more: http://bit.ly/ZlVP1A
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Estate Plan Maintenance:
As a general rule, an estate plan should be reviewed whenever there is a major life event: death of a loved one or potential heir, divorce, disability or incapacity or unexpected financial gain or reversal. Every estate plan needs a periodic check to make sure that it covers changes in your personal, family and financial situations, in addition to revisions of tax and probate laws or regulations. We recommend a no-cost review of your plan every three years, whether you think anything has changed or not.
Checklist.
You may need to update your plan if:
Your beneficiaries have died or become incapacitated.
The individuals you have named as your executor, trustee, attorney in fact or health care agent are no longer appropriate?
You re-financed recently and had to take your home out of the trust and have not put it back into trust.
You or your spouse have acquired other assets, such as lottery winnings, stock options, tax refunds, or an inheritance which are not in trust.
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FEATURED RESOURCE - - MARY IMMACULATE/HEALTH CARE SERVICES
Mary Immaculate Health/Care Services enjoys the reputation in the Merrimack Valley as a faith-based provider of healthcare and housing for older adults. Our expansive facilities offer a full continuum of care including independent living, adult day health, short term rehabilitation and long term care.
Marguerite's House Assisted Living at Mary Immaculate is one of the best kept secrets in the region. For an average cost of $2000/month, residents can maintain their independence in spacious one bedroom apartments. Services include assistance with personal care, medication management, meals, housekeeping, laundry, transportation and 24 hour on-site emergency response. To learn more, visit www.mihcs.com.
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