Planning for retirement isn’t the only thing you should be doing as you near your golden years. You should also be thinking about some of the unique issues that seniors face and looking for an elder law attorney to help you address them.

What exactly is elder law?

Elder law is basically a focus on legal issues that affect senior citizens. This can include estate planning as well as Medicaid and Medicare assistance, incapacity planning and elder abuse. Having an attorney who’s primary focus is in elder law ensures that you and your assets are always protected.

Choosing Your Attorney

Before you settle on an attorney, you should interview more than one. Friends and family members may be able to offer suggestions or you could use the Internet to find a qualified attorney in your area. You can also contact the AARP or institutions that deal with elderly care such as the Alzheimer’s Association or visit the American Academy of Estate Planning Attorneys website and use their geographic search tool to find potential attorneys in your area.  You may also visit AVVO.com.

Ask the Right Questions

Once you’ve found a few attorneys you think you might like, it’s important to ask questions about their experience and knowledge of elder law.  Inquire if elder law is the attorney’s specialty or if they simply do it along with other types of law. This is important, especially if your estate is more complicated. An attorney with a focus on elder law will be able to handle the complex aspects of your estate.

Your attorney should be someone you’re comfortable with so use this time to ask questions and see how you’re treated. Does your attorney take the time to explain things to you or do you feel as if you’re being brushed off? Were you given the opportunity to meet any of the staff? Were they helpful and friendly?

Your elder law attorney will be with you for many years to come so it’s crucial that you find someone you feel you can trust.

It is also important to understand the attorney’s fees. Ask if there is a first time consulting fee. Many attorneys will offer a free consultation – we do – so that you have a chance to “check things out” before making your final decision. After explaining your concerns, your attorney should be able to give you an estimate of what his or her services would cost.

For more information on elder law issues or to schedule your free consultation, give us a call today.

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.

If you become ill and are unable to care for yourself, you may need constant personal or medical assistance. But having a family member provide that care may not always be an option. Does that mean you’ll have to stay in a nursing home?

Not necessarily.

Home health care is becoming a popular alternative to assisted living facilities because it allows elderly citizens the comfort of their own home while still providing the necessary day-to-day care.

But to enjoy the benefits of in-home health care, you must plan ahead.  You’ll either need to set aside money for your care or use private insurance.  Funds from Medicare and Medicaid are limited and do not allow for long term home care, so you’ll have to find another way to pay for these services.

The most obvious way would be to purchase long term care insurance. This special type of insurance covers most in-home medical care and allows you to pay for a companion who can provide assistance with household chores.

Once you are certain that you can cover the cost of in-home health care, you should meet with various home health care agents to determine what services they can provide for you.  Then, should the unthinkable happen, your family will be able to keep you at home while still getting you the assistance you need.

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.

Losing a loved one is one of the most difficult ordeals that you’ll go through in your life, but debt can make this loss even more traumatic. One of the most common debts left behind by the deceased is tax debt, both income taxes and estate taxes.

Estate taxes are a fee the IRS collects for your right to transfer property to another person. Currently these taxes are up in the air as Congress allowed the law to expire in 2009, but experts tell us to expect to see the estate tax again in 2011.

To collect estate taxes, the IRS relies on the probate process. When the executor of the will takes an inventory of the deceased’s assets, this information is reported to the IRS for estate tax purposes.

And as debts go, the IRS takes precedence so any taxes due will be paid before other creditors and before the assets are distributed to the heirs. If property needs to be sold to satisfy the debt, the executor will be responsible for converting assets.

Income Taxes

In addition to taxes on the value of the estate, the deceased must file a final income tax return for the year they passed away. This is typically done by the executor or personal representative of the estate and this debt is usually not inherited by the surviving family members, unless you’ve filed a joint return with the deceased.

There are of course, ways to minimize your taxes and preserve your estate for your loved ones. To learn more, contact our office today.

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.

Although most people of the Baby Boomer generation are aware that the cost of long-term care is rising rapidly, many really don’t know what to expect when it comes to what it might actually cost them when they need it. Today, the average yearly cost of long-term care in a nursing facility will run you over $59,000 a year, and by the year 2030 that number is expected to jump to about $190,000 yearly.  In Michigan, the average monthly nursing home cost is $6,618.

Like most other types of medical care, the cost of a long-term care facility is rising faster than inflation, and each year fewer and fewer people can afford to pay that cost. Along with the rising cost of long-term care, there is also the fact that many more people will need this care in the future. According to recent studies about one out of every three men over the age of 65 will eventually need to be admitted to a nursing facility. For women it will be half of those over the age of 65.

Although most of these people will only need a nursing facility for a short time, there is still a very large percentage that will be in a nursing facility for years. Paying for this care is becoming one of the primary concerns of senior citizens; while some will pay the cost out of pocket, others choose to purchase long term care insurance to help cover these costs. A large percentage of people will have the cost of long term care paid for by Medicaid, but only if they are low income.

Many financial consultants are urging clients to evaluate their financial situation and come up with a plan to pay for long term care, and this is a good plan. Which methods you choose will of course, depend upon your unique situation but address these issues now, while there’s still time to plan.

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.

In today’s busy society, no one has time to think about planning for disability. The idea that we might one day be unable to speak on our own behalf is just not a priority.

But the truth is, about one in four Americans will face some sort of disability during their lifetime and need living assistance. But of those with disabilities, more than 33% of adults and less than half of nursing home patients do not have any of Advanced Directives in place.

What are Advanced Directives?

Advanced Directives are actually a collection of documents that protect you and your assets in the event you’re no longer able to speak for yourself. The first is a Living Will; this is the document that your doctor will refer to in order to find out the type of healthcare you want if you are critically ill and unable to inform your doctor on the extend of treatment that you want. For instance, if you were in a serious accident and were not expected to live,  how long would you want to be kept on life support?

The next document is a Healthcare Power of Attorney. This document allows you to grant authority to someone you trust to speak on your behalf with regard to medical decisions. This is important in case your specific condition is not covered in your Living Will.

The third document is a Durable Financial Power of Attorney. Like the Healthcare POA, this document grants authority to someone you trust to speak and act on your behalf but in this instance, it’s with regard to your financial affairs. This allows your agent to pay your bills, talk to your creditors and attend to any day-to-day financial issues that need to be addressed.

No matter what your age is, it is never too soon to create an Advanced Medical Directive. Along with these important documents you will also want to ensure that you have a Will, in addition to naming a guardian for your minor children. Hopefully, these are documents that you won’t need for a very long time, but it is nice to know that everything is in order in the unfortunate event that you do need them.

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.

An Incentive Trust, a document that disperses an inheritance at regular intervals or when specific life goals are reached, is a great estate planning tool. It can help if you are worried a family member may mismanage a large lump sum inheritance. To determine if an Incentive Trust is right for your family, consider the pros and cons.

Advantages

An Incentive Trust is a great way to encourage someone in your family to work hard and pursue education and career goals. You can also use a Trust to hold off giving an inheritance until a family member has reached an age of maturity. A single eighteen year old with a large amount of cash may spend it very differently than a twenty-six year old who may be starting a family.

An Incentive Trust can also be used to slowly disperse monies over time to help a loved one avoid spending it all at once.  You can even make stipulations such as using funds for education or buying a home.

Disadvantages

An Incentive Trust is a great idea if you and your family member agree on life goals. But what if you make stipulations a loved one cannot or does not want to meet? In this case you may cause that person to bear a grudge toward other family members who do receive their money. That person may also feel you are being too controlling.

You must also consider what will happen if your loved one falls into financial hard times due to illness or unforeseen circumstances.  You probably intend an inheritance to help your loved one, but what if he or she is not yet eligible to receive funds or has not met life goals to receive money? In this case an Incentive Trust will be of no help during difficult times.

Another disadvantage of an Incentive Trust is that the set up and monitoring over many years will require quite a bit of money. This may eat away at the value of your family member’s inheritance.

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.

Studying your genealogy can teach you your family’s history, and it can help you to better understand yourself.  A great way to share your genealogy research with the rest of your family is through a written family history. In fact, a written family history is likely to be one of the most treasured pieces of the estate legacy you leave behind when you die.

Research Your Roots

If you have already done some genealogy research you may have a pile of names, dates and locations. So how do you turn that information into something more? Take what you have learned and look for more details. Part of understanding who your family members were is learning every day facts about them. What was their occupation and income level? Did they live in an urban or rural setting?  Use your basic facts to find census records, military records, death records, and birth records. These documents may provide additional information.

Study History

To understand your family’s past you should understand the time and place where they lived. Use the facts you have gathered to explore the history books and see what was going on in the world at that time. Once you have the big picture that world history provides, you should focus on the local history of the area where your family lived. Local history may give you a good picture of daily life in that area.

Write It Down

Once you have a solid mental picture of your ancestors and understand the time and place where they lived, you can begin to write your family history.  To make your family history interesting include any personality traits you have uncovered and descriptions of locales where your family lived. Your family history may be further enhanced by a trek to your ancestor’s homeland. Experiencing your ancestor’s home firsthand can enhance your genealogy journey and help you to create a memorable written family history.

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.

A pay on death account (POD) is an account that designates a beneficiary to receive all account funds in the event of your death. This type of account may be a retirement, savings, or checking account. Your financial institution can provide you with the paperwork needed to specify your intended beneficiary.

Upon your death, your beneficiary will have full ownership of all account funds. He or she will only need to produce a certified copy of your death certificate to take control of the account. A pay on death account does not rely on a Will and does not have to go through probate to be distributed to the heir, so make sure to update your account documents if you need to change the beneficiary.

In addition to avoiding probate, your beneficiary will not have access to the funds until after you have passed away, giving you some of the same benefits as a trust.

The drawback is that you can only name one beneficiary to an account. That means that if your heir precedes you in death, the account funds could be transferred to your estate if you haven’t updated your account documents.

Also, the single beneficiary prevents you from leaving an account jointly to your heirs. To remedy this, you’ll need to create separate accounts for each heir.

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.

An important part of estate planning is keeping your documents up-to-date. But remembering when to update your documents can be tricky. Obviously, major life changes should inspire a thorough review of your plan but what about a move? Do you need a new plan when you move to a new place?

New State, New Laws

If your move is to a new state your estate documents may be affected by different state laws. A new state also means a separate probate hearing – known as ancillary probate – if you continue to own property in your old state. Updating your documents ensures that your plan reflects the laws of your new state and alerts loved ones to additional property you still own out-of-state.

Buying New Property

Moving often means a change in property ownership. If you buy or sell a piece of property when you move, your estate plan needs to be updated. Your Will or Trust must reflect the property change to protect the asset. In addition, if you pass away with a legal document that bequeaths a property you no longer own or leaves out a new property, your estate may face serious problems during probate.

Change in Family

People often move when there is a family change. A larger home may mean your family is getting bigger through births or marriage; and a smaller home may mean your children have gone off to college, you have divorced, or your spouse has passed away. In all of these

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.

People talk about “stocks and bonds” all the time and while we know that bonds are an investment tool, many don’t really understand how they work.

Or more importantly, why they might make a good investment choice.

A bond is a contract between you and the entity (the “issuer”) selling the bond.  You agree to loan a certain amount of money to the issuer, and the issuer agrees to pay you back, with a certain amount of interest, on a certain date (the “Maturity Date”).

There are a number of different types of bonds.  In addition to issuing stocks, some corporations also issue bonds.  Governments are also common bond issuers.  A very frequent method of raising funds for road construction or for the building of a new school is for a state or local government to issue bonds.  These are called municipal, or “muni” bonds.  The main advantage of investing in muni bonds is that your investment is free from federal taxation.

Bonds are generally considered a safer investment than stocks, because when you invest in a bond, you’re assured that you’ll get back a set amount.  When you buy stock, on the other hand, you’re actually purchasing an ownership interest in a corporation, so the return on your investment is tied directly to how well that company does financially.

That said, some bonds offer a higher risk than others. Corporate bonds for example, are typically considered higher risk than say, a government bond. This is because the government is less likely to default than a private company. Because of the higher risk, these bonds also typically offer a higher yield.

Of course, corporations and government entities within the United States aren’t the only ones that issue bonds.  You can also invest in foreign bonds, issued by a foreign-based entity and traded on foreign markets.  But a word of caution: investing in foreign bonds carries unique risks.

For example, because the bonds are denominated in foreign currency, your return on the bond could be affected by fluctuations in currency rates.  Also, if the issuer does not honor your bond, it’s much harder (and sometimes impossible) to enforce your claim in a foreign country versus going after a company on your home soil.

Many people consider bonds an essential aspect of a well-balanced investment portfolio. Of course, the ratio of bonds to other investments will vary based on your circumstances, including your age and your investment goals.  Before making any investment decisions, you should seek the personalized advice of a financial planner.

The Elder & Disability Law Firm, PLLC is a member of the American Academy of Estate Planning Attorneys.