Senior Counsel

Social Security Increase Could be 6 percent for 2009

Frequently when meeting with seniors I am reviewing assets AND income as we prepare for long term care options and ask the hard question - what can I afford for living arrangements?  Clearly when there is good retirement income more housing options become available.  For 2009, Social Security may be going up significantly for seniors, easing that income pinch a bit.  See the link below for the full story from The Boston Globe:Social Security Increase

How Does the New York State Partnership Long-Term Care Insurance Differ from Traditional Policies?

My friend and colleague, Susan Suben, CEO of Long Term Care Associates, Inc., recently sent me this column in her spring newsletter.  For more information, you can contact Susan at susansuben@31greenbush.comor visit her website, www.LongTermCareAssociates.net.  Susan regularly writes and presents on this complex topic, and she can assist you in making the appropriate choice for your own policy needs.

 

 

When thinking of purchasing long-term care insurance, one should carefully consider the advantages of several NYS Partnership plans now available.

 

When it was created in 1993, the NYS Partnership was intended to help individuals plan for long-term health care needs and, at the same time, remove the cost of such care from state Medicaid budgets. The double goal was to benefit individuals specifically and taxpayers generally.

 

The original Partnership plan offered 3 years of nursing home care or 6 years of home/assisted living care, after which the policyholder could apply for Medicaid without having to spend down their assets, and without any look-back or penalty periods. The only requirement was that income would be contributed to the cost of care according to Medicaid guidelines.

 

Fifteen years later, the Partnership has over 60,000 policies in force, and added three new options for a total of four available plans: two total asset protection plans, Total Asset 50 and Total Asset 100; and two partial asset protection plans, Dollar for Dollar 50 and Dollar for Dollar 100. The 50 and 100 notations mean that a policyholder would receive either 50% or 100% of their daily benefit for home care/assisted living.

 

The partial asset protection plans are geared to individuals with moderate income levels and fixed assets, such as a house.  They protect assets equal to the amount of benefits paid out by the policy.  Any unprotected assets are subject to Medicaid liens and look-back periods. 

 

The Partnership plans have several advantages over traditional or non-partnership plans.  Premiums are generally lower, especially with Dollar for Dollar policies, because many of the enhancements and riders available with traditional policies are not  available with carriers approved to sell the Partnership plan.  Such benefits include different inflation options and shared care benefit riders. However, although the coverage is more basic, it is not necessarily less comprehensive.

 

For example, Partnership policies include all levels of care found in traditional policies, including home care (skilled, custodial and personal care), adult day care, assisted living, nursing home care, case management and respite care.  Some Partnership plans even allow use of independent home care providers, or care by friends or family members.

 

Partnership policies also include inflation protection as a basic feature, one of the most important features to have in a long-term care insurance policy.  The Partnership has a 5% compound inflation factor that becomes optional at age 80, which insures that your policy will have actual value when you need it.  In a non-partnership plan, inflation protection is a rider that must be purchased separately, which could substantially increase the premium.

 

One possible drawback of a Partnership plan has historically been the limitation of asset protection if the individual moves out of NYS, which has been a factor for many people who decided against the plan.  That is, you can use your Partnership benefits anywhere in the country, but you can only apply to NYS Medicaid to protect your assets, if you exhaust your benefits and still need care, for which you need to reside in NYS.  

 

As a practical matter, with current plans, the Partnership may still be a very good choice even if you move or retire out-of-state.  With a traditional policy, if you move out-of-state, exhaust your benefits and still need care, you will have to spend your assets for your additional care, which is  the same scenario as the Partnership policy if you reside out-of-state.  However, by choosing a Partnership Plan, you will probably pay less in premiums over the years, and will always have  the option to return to NYS to take advantage of Medicaid to protect your assets.

 

Moreover, under the Deficit Reduction Act of 2006 and with the creation of partnership plans in states throughout the country, there may soon be reciprocity between state Medicaid departments that would permit Medicaid asset protection after policy benefits are exhausted without  returning to NYS.

 

If, in seeking long-term care insurance to protect your assets and transfer risk, you need or wish  to be economical, then a Partnership plan may be a very sound alternative for you. 

It's A...New Firm!

We have officially entered spring, although we had some beautiful snow last night here in upstate New York.  Spring brings lots of new things, and for me, it means a new office and my own, new firm.   

Please feel free to contact me at The Powers Law Firm, P.C.  I have relocated to Brighton, a wonderful suburb right outside of Rochester, and my new address is 100 Allens Creek Road, Rochester, NY  14618.  New email is easy to remember, too, lpowers@powerselderlaw.com.

I have changed my work schedule, so look for lots of new content.

And send me email questions.  I'm starting a Q&A section.

Choose an Elder Lawyer for Senior Legal Concerns

Social function chit chat lately always seems to turn to the latest tale of woe: “Jane’s husband (or father) got sick and now he’s in the nursing home on Medicaid.  She could only keep the house and a little bit more, I heard.”  How can you avoid this? Plan ahead with an elder law attorney.

What IS elder law?  Elder law refers to a multi-faceted legal practice area, where attorneys use a holistic approach to assist seniors and their families deal with the myriad issues that arise as people age.  It includes estate planning, preparation of advance directives (health care proxy and power of attorney) and planning for long term care, such as nursing home care, as well as disability, mental health and obtaining public benefits.  We obtain help with finding living and care arrangements and provide advice on how to pay for care, both through private funds and the use of government benefits, such as Medicare and Medicaid.

Why should someone see an elder law attorney? Elder law attorneys are uniquely qualified and specially equipped to handle the issues facing seniors. We draft legal documents, assist with navigating government programs and handle benefit applications, assist with nursing home placement, home care needs and a variety of other unexpected issues. We have the added benefit of a network of professionals to assist with the non-legal aspects of care and planning, including geriatric specialists, placement professionals and financial advisors. The average family attorney can draft documents, but will not have the depth of knowledge or the access to non-legal professionals that the elder law attorney has.  To locate an elder lawyer near you visit the National Academy of Elder Law Attorneys at www.naela.com.  There you can perform a geographic search and obtain contact information for attorneys who dedicate themselves to the special needs of seniors.

What basic legal documents should I have?  A health care proxy and a power of attorney. 

The health care proxy names someone to make your health care decisions when you cannot communicate your wishes to your medical care providers. 

New York recognizes a health care proxy, not a living will.  A living will is just a written statement that gives an idea of types of treatment you may want or wish to avoid.  The power of attorney names someone to make financial decisions on your behalf and typically allows full access to your assets.  It will be tailored to your needs. 

If you do not have a health care proxy or power of attorney and illness strikes, your family may need to bring a guardianship proceeding, where a judge appoints someone to make health care and financial decisions on your behalf.  The cost of a guardianship is usually thousands of dollars, paid out of your assets. 

How much will proper planning cost? The cost of having a skilled elder law attorney create a health care proxy, power of attorney and simple will is usually less than $1,000 for a single person.  Long term care consultations and planning vary, depending on each family situation. You would typically pay 5-6% of the sale price of your home to the realtors involved; most people consider this well worth the money for the expertise.  A good elder law attorney can often save a family hundreds of thousands of dollars.  The fee is a very small amount in comparison. 

While the changes in Medicaid law have been drastic, there is usually something that can be done.  Even if disaster has already struck, there may still be some options.  Call before you fill out the nursing home application and before you apply for Medicaid benefits, even if you are told you “must” apply right away.

New York State Releases 2008 Medicaid Numbers

Welcome to 2008.  The pertinent Medicaid figures are out now. 

The "community spouse" of a Medicaid applicant can keep between $74,820 and $104,400 as his Community Spouse Resource Allowance ("CSRA").  The community spouse is also entitled to a minimum monthly maintenance needs allowance of $2,610.

Unfortunately, the Medicaid applicant is still only entitled to a personal needs allowance each month of $50, the same small amount that has been in effect for two decades. 

Thanksgiving (without the turkey)

November 11th was officially Veterans' Day, celebrated today with many business closures.  Many of my clients are veterans, although most do not volunteer that fact unless asked.  They are proud of their service to the United States, but given the things they saw, friends they lost and scars they bear, they do not easily talk about their experiences.  While I can advise them to check their eligibility for veterans' benefits, such as Aid and Attendance (see the VA website at www.va.gov), I cannot help with the emotional scars.  I can, however, say "thank you," to them and to our active duty service men and women.  And you can, too - go to www.letssaythanks.com and send a postcard. It will be the best thing you did today.   

Welcome to Senior Counsel

Welcome to Senior Counsel!

As an elder law attorney in Rochester, New York, my daily practice is anything but routine.  I draft hundreds of wills, trusts, powers of attorney and health care proxies each year, but I also deal with questions about Medicaid, asset preservation, senior housing options, medical care issues, psychological evaluations, drivers' license concerns, financial abuse and many more topics that can wreak havoc with seniors' lives and those around them.  I collect information continuously and wanted a place to share it, not just with my clients, but with anyone who would like to know about it.

Growing up, I spent many afternoons after school in my mother's beauty shop listening to her clients, who were always referred to as "the ladies."  Little did I know what good training those fun afternoons were.  Now I savor the time spent over coffee or tea with my clients.  We chat and get to know each other.  I may be there to solve a legal problem or two (or three), but they provide me with their life lessons.  Sometimes I wonder if I should be paying them...shhh, don't tell my boss.

This blog will hopefully share with you some of the insights and useful information I have picked up from colleagues AND clients.  I welcome additions and comments from readers.

This site is not set up to provide individualized legal advice.  Every person's situation is unique and while I may give examples from time to time, I will also give repetitive caution NOT to assume any of the examples mimic your life.  I can only advise you personally if hired to represent you. Contact me, Lisa M. Powers, Esq., at The Powers Law Firm, P.C., 100 Allens Creek Road, Rochester, New York  14618, (585) 244-2170 or email me at lpowers@powerselderlaw.com to discuss our terms and whether a retainer agreement will be needed for your situation. 

Disclaimer: This weblog is attorney advertising and is intended purely as a resource guide for users of the World Wide Web. It is not intended to provide specific legal advice. Readers should always consult with knowledgeable counsel with respect to their specific legal concerns.  We welcome the receipt of electronic mail. Please be advised, however, that the act of sending electronic mail to The Powers Law Firm, P.C. or to me  does not alone create an attorney-client relationship. An attorney-client relationship cannot be created until we consider potential conflicts of interest. We will neither accept requests for legal advice nor offer specific legal advice over the Internet. When you receive an engagement letter from the firm and have accepted it, we may then exchange information freely.