Florida Elder Law Blog - ElderLawAssociates.com

Currently the revocable living trust is the most popular type of trust for estate planning. With the current estate tax exemption at $5 million, many of our elder law clients have begun to ask if there is a need for such a trust. Moreover a revocable living trust provides no asset protection.

Currently 99.7% of the US population has less than $5 million in assets. While a revocable living trust can offer privacy, probate avoidance, easier management of one's assets, and numerous other benefits, it does not offer any asset protection. Many people really want an irrevocable trust, but do not want the consequences of the traditional irrevocable trust. While there are many types of irrevocable trusts, most either cause a loss of control over the assets by the grantor, loose the stepped up basis, or cause the trust to pay taxes at the highest tax rate with as little as $11,000 in earnings.

There are variations of the irrevocable trust that can solve one or more of these issues, but there is only one type of irrevocable trust that has the flexibility of a revocable trust, provides asset protection from the creditors of the creators as well as the beneficiaries, allows the income to be taxed at personal rates, and provides for stepped up basis upon the death of the creator.

While the IPUG (Irrevocable Pure Grantor Trust) defies the logic of most estate planners, it has been designed using common law, trust law, and tax law to provide asset protection, taxing at a personal level, the ability to control the income and principal, stepped up basis and even can even help in nursing home qualification or Medicaid eligibility.

If you would like to find out how you can upgrade your standard revocable trust or create a new Florida asset protection trust, contact a qualified Florida Elder Law Attorney that is knowledgeable about the IPUG and how to structure it to accomplish your goals.

Labels: Elder Law Attorney, florida elder law, Florida Elder Law Attorney, Florida Estate Planning

How important is social support as a person ages? This may seem like an easy question to answer. Most people would not choose isolation and loneliness versus spending time with companions. However, can lack of social support really hinder a person’s overall quality of life?

Lack of social support is related to negative impacts on health and well being, especially for older people. Having a variety of positive social supports can contribute to psychological and physical wellness of elderly individuals. Support from others can be important in reducing stress, increasing physical health and defeating psychological problems such as depression and anxiety.

When considering who provides social support for an elderly individual our first thoughts are of family members. While it is true that most support does come from family members, there are many circumstances in which family members cannot be supportive (stress due to responsibilities, illness, death, financial problems, job relocation). In the United States the fastest growing age group of individuals are those 85 years and older. Due to this fact, family supports will inevitable decrease for these older individuals. A need for community-based services is more important now then ever before.

Community-based services can be extremely useful for elderly individuals. Services for older persons can encompass many areas, but one of the most important areas as discussed previously is social support. Support for elderly persons can be found in many places including: senior centers, assisted living facilities, meal delivery, religious affiliations, adult day care centers, etc. These services can provide positive social supports that can help older persons defeat loneliness and isolation. However, social support must encompass more then physical presence or conversation. Studies have shown that social support services should contain quality activities. These activities should promote positive self-awareness.

Self-awareness is key to a person’s overall quality of life and satisfaction. Many leisure social activities can be used to help increase an individual’s self-awareness. Activities for elderly individuals may include reminiscence groups, journal writing, readings of favorite book passages, group exercise, singing groups, etc. Individuals may also feel more self-satisfied if they are part of the planning of social activities that take place.

Two of these community-based service centers that provide quality social support services for elderly individuals are discussed below.

Senior Citizen Centers

Today, there are estimated to be about 15,000 senior centers across the United States. Senior centers act as a focal point for older Americans to receive many aging services. The most common services offered at a senior center include health programs (including Zumba and Yoga), arts/humanities activities, intergenerational programs, employment assistance, community action opportunities, transportation services, volunteer opportunities, education opportunities, financial assistance, senior rights counseling/legal services, travel programs and meal programs. These programs and activities can help promote positive self-awareness.

Lori Beckle describes how participating in her local senior citizens center has given her the independence and life satisfaction she thought was lost when her husband died in 2009. “ I was devastated and so frightened for my future without Ed. He was my only friend and the one I turned to when I felt alone. My daughter invited me to attend our local senior center where a bereavement group was being held for those who had lost a loved one. I met Phyllis during the group and now I have a new friend I call when I become afraid. Phyllis has helped me develop the skills to get through the tough times and focus on my immediate happiness.”

Adult Day Care Centers

According to the National Adult Day Services Association (NADSA), there are currently more than 4,600 adult day care centers nationwide. Adult day care is a program in which activities are provided to promote social support and health services to an older adult during the daytime. Most centers operate Monday through Friday during daytime hours. Social support services at an adult day care can consist of musical entertainment and singing groups, group games such as cards, gentle exercise, discussion groups (books, films, current events), holiday/birthday celebrations and local outings. Not only are these social activities provided, but participants of the program can also develop lasting relationships with staff and other participants. Adult day care centers also provide meals and health services. Adult day care centers differ from other programs for elderly individuals, because they allow the participants to develop and increase self-awareness by encouraging independence.

Amanda describes her experience as a volunteer at her local adult day care center. She stated, “ I was involved in planning the activities for Thursday afternoons. I wasn’t sure what kind of activities my older friends would enjoy so I had them share their favorite activities they participated in when they were my age (23). I soon realized that I was hearing the most fascinating stories of hopping trains, college dances, swimming in the lake, etc We decided Thursday afternoons would be spotlights of each individuals’ lives as a twenty-something. One of the participants told me that Thursdays became a highlight for her week.”

Adult Day Care Centers and Senior Citizen Centers help to provide an elderly individual the opportunity to participate in social support activities. Social support activities found in these programs can be beneficial to a person’s quality of life and overall satisfaction. With a higher self-awareness and quality of life an individual can reduce the risks of mental and physical health problems as they age.

They sound similar. Unfortunately many people do not understand the differences between the two. Most people think Medicare will "care" for them forever but, that is simply not the case.

While Medicare and Medicaid sound similar, they are very different government programs. Medicare provides healthcare benefits for the over 65, blind, and disabled; while Medicaid provides medical benefits for the impoverished.

Medicare is a basically public health insurance for those age 65 and older. Medicare does not pay for long-term care! It will cover some rehabilitation and this is often confused with long-term care. If a senior citizen has Medicare and is hospitalized for a stay of at least three days, and is then admitted into a skilled nursing facility, Medicare may pay - for a while. But once those Medicare benefits hit 100 consecutive days or the patient stops improving the coverage is over.

Often Medicare will not even provide coverage for the full 100 days. For the coverage to continue there must be improvement, otherwise Medicarel cut you off. Many diseases like Alzheimer's and Parkinson's have no known cure today, rehabilitation is not possible so Medicare will not provide coverage for a nursing home.

While Florida Medicaid is paid for by both federal and state funds it is run or administered by the state of Florida. This means that you cannot look to what happens in other states to decide what will work in Florida. Florida makes its own rules and adopts part of the federal guidlnes but gets to determine how it is implemented.

Short synopsis of the difference between Medicare and Medicaid

Medicare

• Health insurance for seniors age 65+
• Federally controlled, uniform application across the country
• Pays for up to 100 days of nursing home care
• Pays for primary hospital care and related medically necessary services
• Must have contributed to Medicare system to be eligible and generally be over age 65

Medicaid

• Needs-based health care program
• Controlled state by state, which created different regulations in each state of application
• Pays for long-term care
• Pays for medications
• Must meet income and asset limits to be eligible and be over 65, disabled, or blind

If you or a loved one need help qualifying for Medicaid or nursing home coverage ask a South Florida Medicaid Planning Attorney how and how a specialized trust may help you save assets and qualify early for Medicaid assistance.

Labels: Florida Elder Care, florida elder law, Florida Elder Law Attorney, Florida Medicaid Planning

When one spouse suffers from dementia, the other spouse often must take over managing the couple's finances, usually with the help of a power of attorney. But things don't always go smoothly with financial institutions. Just ask Chicago resident Eva Kripke, who has been handling money matters since her husband, Sidney, was diagnosed with Lewy body dementia four years ago.

Acting as agent for her husband under a power of attorney, for years Ms. Kripke had been going online to check her husband's Bank of America account and writing checks from it, until one day in April when the bank suddenly changed its security procedures and she was blocked from accessing his online account unless she supplied his Bank of America credit card number.

Because of her husband's dementia, Ms. Kripke had torn up the credit card several years previously, but she was able to obtain the card number from her local Bank of America branch. But that wasn't enough -- the bank also wanted the security code and the expiration date, neither of which she or the bank had. Without that, even though she had all the other information about her husband's account, not to mention his power of attorney, she could not access it online.

"[The bank employees] told me that power of attorney was not accepted for online banking," Kripke told the Chicago Tribune's "What's Your Problem?" columnist, to whom she turned for help. "It did not matter that I had been accessing my husband's account for several years. There was no way I could have access to my husband's online account any longer."

Bank of America suggested Mrs. Kripke open a joint account with her husband, something her lawyer advised her not to do, saying it was better for the couple to keep their accounts separate. The bank also said she could go to her branch and get a printout of her husband's account and even offered to have a bank employee drop one off at her house.

"That's not satisfactory at all," said Mrs. Kripke, who noted that the deposits and payments for her husband's 24-hour care often require daily oversight. "I don't want to have to rely on constantly going over there. I doubt that someone would deliver it to me and I'd feel odd asking them to do that."

The American Bar Association Journal picked up Mrs. Kripke's story and asked its readers if they had any suggestions for her. So far, the leading ones are: 1. report the credit card lost or stolen and get a new one, or 2. find another, more accommodating bank. It can also sometimes help to use the financial institution's own power of attorney form, although executing a different document for every bank one has an account with can be time-consuming, and it is likely impossible in Mrs. Kripke's case now that her husband is incompetent.

Labels: Florida Elder Law Attorney, Florida Estate Planning, Florida Litigation