Wisconsin Estate Planning

Safeguarding Your Elders: Is It Time To Take Away the Keys?

What can you do when a strong minded elder should stop driving but refuses to do so?

Remember the freedom you felt as a teenager when you learned to drive? If yes, then you can appreciate how difficult it is for elderly loved ones to relinquish that sense of freedom. Imagine how hard it is for them to accept the fact that they can no longer have this liberty.

For so many who have stepped in to oversee or care for an elderly loved one, the most dreaded transition that is so often fought is from driver to passenger: how do you make mom or dad give up the car?

For some guidance on handling this common, but difficult life transition, read a recent Forbes article titled “True Story: The Prominent Dad With Dementia Who Refused to Stop Driving.”

In these cases, when your loved one is very strong minded, the article suggests consulting the help of their doctor and – although you may not want to go there – law enforcement if necessary. A doctor can contact the Department of Motor Vehicles and, if your state allows it, request a re-test before your elder’s license renewal date.

Bear in mind that the consequences of not taking action are far worse than dealing with an offended elder. It is more important to protect your family member before they end up hurting themselves or others on the road.

Reference: Forbes (January 7, 2013) “True Story: The Prominent Dad With Dementia Who Refused to Stop Driving”

Fiscal Cliff Deal’s Effect on Long-Term Care

At first glance, the budget agreement includes an important trade-off -- the creation of a national long term care commission ...Yet, there are elements in the measure creating this panel that are very troublesome.

Congress has averted the “fiscal cliff” for now, but there was one law that fell over the cliff anyways. The Community Living Assistance Services and Supports (CLASS) Act, which was intended to deal with the issue of long-term care for seniors, has been repealed. What did politicians do to address this issue? Not surprisingly, a “commission” was formed.

The CLASS Act and the new commission formed to study the delivery (and financing) of long-term care was the subject of a Forbes article titled “Fiscal Cliff Deal Repeals CLASS Act, Creates Long-Term Care Commission.” As summarized in the title of this Forbes article, The American Taxpayer Relief Act or ATRA – does two things in the field of long-term care: first, it officially ends the CLASS Act, and second, it forms a new bipartisan commission to “tackle” the matter.

Is it a good trade-off? For starters, the CLASS Act had already been abandoned by the administration and Congress alike. On the other hand, this new commission might not find an alternative new solution. As the Forbes article notes, the commission is a “political commission” rather than a panel of subject matter experts. The commission has been given a window of six months to conduct its business.

The crisis of long-term care in America is still an important issue, and it’s hard to tell what the future holds for this matter. Now is the time for individuals to take responsibility for their long-term care, so be sure to consult competent legal counsel and your long-term care insurance agent to examine your options.

Reference: Forbes (January 1, 2013) “Fiscal Cliff Deal Repeals CLASS Act, Creates Long-Term Care Commission”

Maximize Your Hiring Potential – Resume Enhancement

Older workers come to the table with experience, maturity and dedication… But older workers who do wind up unemployed often struggle to recover.

 

In a new year, many companies begin to re-evaluate their staffing needs. This might mean companies will increase their hiring initiatives, or they could decide to shed jobs. Either possibility means having an updated resume ready may pay dividends. Even if nothing changes for you, it wouldn’t hurt to have a spruced up resume.

 

For older individuals, reaching retirement means managing a budget with savings, social security, and part-time income. Having a polished resume is extremely important, as an analysis of the most recent job data by the AARP Public Policy Institute shows. Consider this: unemployment for older job seekers is now 56 weeks on average, compared with 37 weeks for younger workers. In light of this trend, it is crucial for older workers to revise their resumes to catch the eye of potential employers.

 

As reported in The Wall Street Journal, a new program known as the American Association of Community Colleges’ Plus 50 Initiative is helping seniors do just that. The Plus 50 Initiative recognizes the experiences, skills, and leadership that the baby boomer generation possesses. Given the possibility of unemployment facing many older workers, the Plus 50 Initiative seeks to harness the experience of an older generation and use it to teach new skills to an already successful generation.

 

Many times, the only thing standing between a senior and a job is a lack of technical knowledge and computer experience. Taking a short class on computer software is one of the best ways for older job seekers to brush up on these skills, enhance their resumes, and show employers that they are up to date with technology.

 

Consider taking some time to reevaluate how you can best market yourself in an ever-changing economy and job market.

 

References: The Wall Street Journal (October 5, 2012) “Can classes give older workers an edge?”

 

American Association of Community Colleges “The Plus 50 Initiative”

Planning for Retirement Starts at Home

An AARP survey found that more than 80 percent of us want to stay in our homes as we grow old. And as boomers go, so goes the remodeling industry.

These days, preparing for retirement doesn’t just mean stabilizing your finances, preparing your estate, or securing affordable health insurance. For many, planning for retirement means making in-home renovations for a more accommodating lifestyle.

As a recent article in Bloomberg highlights, assisted living costs are on the rise. Consequently, many individuals nearing retirement are opting to renovate their homes to avoid increased assisted-care costs. If you are heading towards retirement, it is vital to your financial health and the stability of your estate that you consider “Remodeling as Retirement Planning.” Substantially remodeling your home to further accommodate an aging body may cost a pretty-penny up front, but it may pale in comparison to the yearly cost of a nursing home.

According to a MetLife Mature Market Institute study, the US National Average for yearly nursing home costs is just over $75,000. Accordingly, a relatively simple $10,000 renovation to your home might provide you with extra years of independent living, and save you thousands in assisted living costs along the way.

Even though many renovations come with a lofty price tag, some can be as simple as removing area rugs to reduce the risk of tripping. If you’re interested in renovating your home, consider consulting this recent Bloomberg article for a few retirement-friendly renovation tips and tricks.

Reference: Bloomberg (November 29, 2012) “Remodeling as Retirement Planning”

The Rising Cost of Elder Care

People who identify the specific services their loved ones need, haggle aggressively on price and explore alternative-care options can save money—or at least get more care for the money they do spend, experts say.

It’s no secret that people are living longer due to advancements in medicine.  The cost for extended long-term care services, a direct result of people living longer, however, may not be so apparent to everyone.  Significantly, over the past year, long-term care costs in a number of categories rose faster than inflation. 

Long-term care includes a variety of health and daily-living services, either in facilities or in people’s homes, for people with chronic illnesses or disabilities.  According to a recent article in the Wall Street Journal, “The Cost of Living Longer,” “[a] growing number of families are wrestling with the same dilemma: rising costs for long-term care and a mind-boggling array of options.” 

The article offers some strategies families are using to stretch their long-term-care dollars further.  The first step is to discuss how you will pay for the long-term care of a family member.  Next, determine the level of care needed.  The article discusses pros and cons of each option available – assisted living, independent living, home health care, adult-day services, respite-care, etc. 

This article is a good starting point, but it does not replace the advice of a financial planner or an estate planning attorney.  

Reference:  The Wall Street Journal (October 26, 2012) “The Cost of Living Longer”

 

Talking Retirement and Estate Planning with Parents

Adult children and their parents recognize the need to talk about inheritance, eldercare and retirement planning issues, but nearly one in two adult children do not feel like they’ve had sufficient conversations with their parents about these issues … 

Discussing retirement and elder care planning with aging parents can be difficult for all parties involved.  For many parents and adult children, these conversations can be awkward and potentially emotional.  A study by Fidelity Investments documents the extent to which the two generations are failing to communicate on this topic, as conveyed by Forbes in an article titled “Generations Apart: Talking Retirement And Estate Planning Over Turkey.”

According to the study, 89% of families agree that health and elder care discussion are important.  But only 10% of adult children believe the conversations they have had with their parents have been “very detailed.”  Similarly, only 19% of children say the same about estate planning conversations, and only 11% of adult children feel they have discussed retirement readiness with their parents in detail.

There are several implications of inadequate discussions.  For example, nearly 25% of adult children believe they will have to help their parents in retirement while nearly all of the parents in the study said they will not need financial help from their children.  Similarly, some adult children underestimate the value of their parents’ estates by more than $100,000.  On the other hand, however, some adult children may not save enough because they expect a large inheritance from their parents. For more on this matter, you can consult the article “Parents and Adult Children Not in Sync as Many Families Still Struggle with Financial Conversations” on Fidelity.com.

To help facilitate these discussions, Fidelity also offers conversation starters on their website.  However, an easier way to facilitate the conversation may be for both the parents and the children to sit down with the parents’ financial adviser and legal counsel.  Advisers can structure those conversations to keep focused on the essentials and keep the emotions out. 

References:  Forbes (November 21, 2012) “Generations Apart: Talking Retirement And Estate Planning Over Turkey”

Medicare Won’t Pay Your Claim? Appeal It!

Medicare processed 906 billion outpatient insurance claims in 2010 - and refused to pay 10 percent of them. But if you're a senior on Medicare with a denied claim, your odds of turning that around are surprisingly good if you appeal.

Few things are more frustrating than battling bureaucracy. But if you’ve had a Medicare claim denied – and about 10 percent of Medicare claims are denied – you’re well-advised to hang in there and fight the good fight!

Reuters recently published an article explaining “How to appeal when Medicare won't pay.” It is not an uncomplicated process, but if Medicare refuses to pay for services your doctor recommends it’s certainly worth your while to fight. The numbers are fairly enlightening:

In 2010, 40 percent of Part A appeals and 53 percent of Part B appeals were granted, according to the Centers for Medicare & Medicaid Services, which administers Medicare (CMS). Even in the case of big ticket durable medical equipment appeals, 44 percent of appeals were successful. More than half of appeals to Medicare Advantage and prescription drug plans are successful, too.

Medicare consumer advocates offer these tips for filing an appeal:

1. Send a letter. Your paper trail starts with the summary notice of coverage you get in the mail. Take this notice, circle the erroneous denial, and write out why you think it should be covered. Make a copy, and mail one.
2. Don’t waste time. You have 120 days to file an appeal for Medicare Part B claims, and only 60 days for Medicare Advantage or Part D. If you filed for pre-approval and were denied, you have only 14 days to initiate your appeal.
3. Be persistent. You have a right to four levels of appeal, so don’t quit until you have exhausted all of your options.
4. Get help. For appeals beyond the first level, you may want to seek help from an elder law attorney.

Reference: Reuters (November 13, 2012) “How to appeal when Medicare won't pay”

Checking on your Elders This Holiday Season

Pay close attention to your aging parents on a holiday visit this year. Does the normally tidy house now seem neglected? Is there hoarding? Do you notice memory problems, confusion or physical unsteadiness? Discovering that a parent's physical or mental health is declining can be heavy on the heart. It also can be hard on your finances.

The holiday season is coming to an end. Did you pay attention to your elderly loved ones and remember to observe and ensure that they are fully supporting themselves?

It’s an unfortunate burden of thought during the holidays, but that doesn’t mean it isn’t an important one to bear in mind: as written by the Wall Street Journal not too long ago, you’ve got to ask, is it “Time for Elder Care?”  And then there’s the other half of it: you’ve got to observe, understand, and react in such a way as to truly help the situation. It’s easy to over-react when the well-being of your loved ones is at stake.

Hopefully you have taken the opportunity this holiday season to assess their needs and then, if something is amiss, I encourage you to work to find specific solutions. Your loved ones might not need full-time care, but perhaps a housekeeper or even gift cards for a few restaurant meals might help. If additional assistance is needed, assess the situation and look for the most appropriate benefits – local, state, veteran, or specific group benefits are important first steps – and be careful in your timing.

For more to think about, the original article is worth a read through. And be sure to fully enjoy your time with them and make the best of every day.

Reference: The Wall Street Journal (November 4, 2012) “Time for Elder Care?”

Helping Your Elderly Divorced Parents

"As soon as you have an inkling that a divorced parent might need assistance, it definitely requires a family meeting," says Joy Loverde, author of "The Complete Eldercare Planner." "Everyone needs to be there, to open up about any concerns, to start sharing responsibilities. Start talking about it right now; do not wait."

Divorce is simply not a young person issue. In fact, boomers struggling to help their elderly divorced parents are starting to offer evidence that there are issues and unpleasant surprises awaiting those families who have not planned ahead.

The evidence has been slowly coming in for a while, of course, but current articles have helped to publicly put the pieces together for us. For example, consider a recent article in Reuters titled “Double the trouble when divorced parents get old.”

In broad strokes, marriage is and has been an important institution for us. Not only does it order our daily lives, but it organizes our longtime finances as well. On the other hand, divorced persons simply have to plan that much more for their own old age, especially when it comes to the question of living alone and perhaps shouldering medical care by yourself.

More often than not, this actually is an issue for the adult children of divorced parents. After all, it’s already an era that calls for more and more care from children, but taking care of Mom and Dad is an entirely different concept when they are no longer together or there for each other.

Takeaway: for divorced individuals, this is simply something more to consider in your planning for the future; and for families, this is a necessary issue to address.

Reference: Reuters (October 22, 2012) “Double the trouble when divorced parents get old”

Social Security COLA Stagnates

More than 56 million Social Security recipients will see their monthly payments increase by 1.7% in January… The increase is among the lowest since automatic annual adjustments were adopted in 1975.

Did you know your Social Security payout increase will be the lowest ever at 1.7%? It’s true, according to official confirmation on October 16.

The COLA is the Cost Of Living Adjustment added to Social Security annually, based on inflation and increases in the Consumer Price Index (CPI.) For some seniors, planning for the new year means planning around the COLA and hoping for the best. Alternatively, a reduction or a weak increase in COLA may mean seniors will need to make up the difference out of savings. Nevertheless, the CPI is an imperfect indicator and a debated one as well.

This matter was taken up recently by USA Today in an article titled “Social Security benefits to rise 1.7% in 2013.”

Well, if you are on Social Security, what does this mean to you? Likely it means a great deal, especially if the tax picture changes next year. What about that payroll tax cut that’s set to expire? To bone up on what may be coming down the pike you might want to review a recent Forbes article titled “Social Security Benefits To Rise 1.7%; Workers Face Up To $2425 Payroll Tax Hike.”

References: USA Today (October 16, 2012) “Social Security benefits to rise 1.7% in 2013”

Forbes (October 16, 2012) “Social Security Benefits To Rise 1.7%; Workers Face Up To $2425 Payroll Tax Hike.”