A guide that asks about what matters to you, not what’s the matter with you.
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July 5, 2015 - July 11, 2015
07/11/2015
07/10/2015
How Will California Be Able to Help Seniors?
By the end of 2015, it is expected that 5.1 million persons age 65 and over will make their homes in California. Add aging baby-boomers to the state’s current migration patterns and it is entirely likely that the state will be home to more than 8.4 million seniors by 2030. A recent report by the Senate Select Committee on Aging and Long Term Care, A Shattered System: Reforming Long-Term Care in California adds clarity to what may become a massive fiscal challenge for the state and its senior residents: “Reliance upon our existing patchwork of programs and services to serve our growing aging and disabled population will result in unnecessary expenditures, inequitable access, and irrelevant services.”
California is trying to make progress in improving the services available to its growing senior population, according to an article in The (Crestline CA) Alpenhorn News titled “Legislative protection for seniors”.
California passed AB 1899 last fall, which required any licensee found to have abandoned residents of a residential care facility to be permanently banned from operating facilities in the state. Also, California legislators passed AJR 29 in 2014. This bill asked for the restoration of federal funding for senior nutrition programs that was reduced by federal cuts, as well as to exempt these programs from future budget cuts. The federal government’s reply to this request is stalled.
Now the state’s legislators are considering AB 1122, the “Excluded Persons Administrative Action List,” or “EPAAL” legislation. It requires the state’s Department of Social Services, Community Care Licensing (DSS/CCL) to publish online all persons who are excluded from owning, operating, and/or working inside any licensed care facility as a result of an Administrative Law proceeding. The article notes that right now there’s no mandatory requirement for DSS/CCL to refer elder neglect, abuse, or other egregious behaviors against seniors residing in assisted living facilities to law enforcement, so very few of these crimes are prosecuted. But through Administrative Law proceedings, DSS/CCL can permanently or temporarily prohibit a person from working in a licensed care facility.
The current bill is supposed to provide convenient, online access to EPAAL, allowing everyone to verify that caregivers and the employees don’t have a prior history of behaviors which endangered the health or safety of a senior.
Contact Robert A. Gordon of Redkey Gordon Law Corp, an experienced elder law attorney, to find out more.
Reference: The (Crestline CA) Alpenhorn News (June 19, 2015) “Legislative protection for seniors”
07/09/2015
The State of Kansas Teams Up Resources to Prevent Elder Abuse
In a new and dynamic partnership, The Office of the Kansas Securities Commissioner (KSC), the Kansas Department for Children and Families (DCF) and the Kansas Department for Aging and Disability Services (KDADS) has chosen this week to recognize World Elder Abuse Awareness Day (WEAAD). WEAAD is a global program created by the International Network for the Prevention of Elder Abuse and the World Health Organization. The primary goal is to provide people around the world with the knowledge and awareness necessary to prevent elder abuse in their communities.
Elder abuse comes in many forms, The Hays (KS) Post explains in a recent article titled “Agencies encourage Kansans to help prevent elder abuse in their communities.” There can be physical, financial, emotional, neglect, or abandonment, with several types of abuse often inflicted at the same time. Financial abuse is considered to be the most common form of abuse to elders, and costs its victims $2.9 billion a year.
Investment fraud is an area of concern because the victims can have their life savings wiped out with little or no opportunity to recover. Investment fraud can come in many forms, the article warns. The investment might be deceptive on its face, or it could be a legitimate product or service that’s unsuitable for the senior’s situation. Other investment problems include unregistered products, theft of funds, and products sold by an unlicensed adviser or broker. Investors and caregivers are urged to “investigate before investing” and to call the KSC at (785) 296-3307 to verify if the product and person selling it are legitimate and whether there’ve been any complaints.
Studies show that family members and caregivers are guilty of elder abuse in more than half of these cases. Anyone can, and should, report abuse of an elderly person in any of its forms—physical, emotional or financial. Isolation, loneliness and poor health can put elders in a situation of being at greater risk for these scams.
The DCF has really ramped up its focus on fiduciary abuse over the past few years and has a staff auditor dedicated to pursuing financial exploitation of vulnerable citizens with the help of law enforcement.
“It is the responsibility of every Kansan to report suspected abuse,” DCF Secretary Phyllis Gilmore said. “We strive to work closely with law enforcement and other agencies to protect vulnerable adults.”
Find out about California laws by contacting Robert A. Gordon of Redkey Gordon Law Corp, an experienced elder law attorney.
Reference: The Hays (KS) Post (June 20, 2015) “Agencies encourage Kansans to help prevent elder abuse in their communities”
07/08/2015
How Will YOU Define Your Legacy?
Unlike previous generations, the baby boomers are more concerned with having enough money to last through their retirement years than with leaving substantial assets to their heirs and to charities. But they are still concerned with leaving a legacy for their children and grandchildren. A new definition of a legacy is not based on dollars, but on family memories and shared values.
Money isn’t the only definition of legacy, according to the US News article titled “How Boomers Are Redefining 'Legacy.’” Baby boomers realize that their top priority is to have enough assets to support themselves, but are starting to redefine “legacy” in the process. For some individuals, it means giving away some money now. For others, it’s restructuring some assets to leave a financial inheritance. For most, the process of aligning their assets with their priorities means the opportunity to create non-financial legacies.
Rethink how you label the financial help you're giving now to your next generation. Are you helping them out with college tuition? Helping with the living expenses of a slow-to-launch millennial by having them stay at home or by covering some bills is not uncommon. About 62% of Americans 50 and older are providing financial support to family members, according to a recent study. The study found that the subsidies averaged $15,000 over five years, but also increased with the givers’ resources. You’re allowed to give away $14,000 per recipient, per year, without triggering any tax penalties or disclosures … more than that and the person who gives has to complete a gift tax return. Also, the gift tax is deducted from your lifetime cap on tax-free gifting.
A 529 college saving plan lets grandparents build up provisions for a grandchild’s college education. Another way to redefine “legacy” is to set up your assets to guarantee that your heirs receive at least some type of asset. Be sure to distinguish legacy planning from estate planning, the article says. For instance, some families construct a legacy of memories and real estate by purchasing a vacation property held in a trust and owned equally by all heirs, keeping it intact for at least another generation. It also guarantees that the vacation home won’t automatically be sold as part of the estate.
A message to baby boomers: it’s really stories and family values children want from their parents—that’s what Boomers say they want from their aging parents. It’s likely that Generation X and millennials will want the same. Discussions about heirlooms with some market value but even greater sentimental attachment, like grandma’s gold wedding band, are great openings for conversations about the values that are important to the family.
Consider legacy letters that convey your own priorities, point of view, and life lessons for future generations. This gives you the chance to talk about the document. It’s a good way to redefine “legacy.”
Need Additional information? Contact Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney.
Reference: US News (June 18, 2015) “How Boomers Are Redefining 'Legacy'”
07/07/2015
Don't Let the State Decide What Happens to Your Most Precious Assets
Drafting your will and testament is not exactly on most summer to-do lists. For many, the process is a memento mori, a task more foreboding than mowing the overgrown lawn. It's no surprise that according to the American Bar Association, 55 percent of Americans do not have a will or other estate plan in place when they die. And for families, the statistics are not much better, according to a survey done by the online legal service Rocket Lawyer. The firm found over half of Americans with children did not have a will in 2014. The reason most Americans said they didn't have a will, according to the survey: "They just haven't gotten around to making one."
The Denver Post says that the consequence of having no will is there's no guarantee who’s going to get your assets. The article, “How estate plans protect family assets far better than a will,”also says that you canbe placing your children at risk. They could end up in Child Protective Services or in the custody of someone you wouldn’t dream of parenting your kids.
"If you don't have an estate plan, you have a 'plan' written by the state," the article states. This means you're relying on the state to decide what happens with your kids and your assets. It means that your family will be required to go through the courts, and probate may take months or even years, according to the American Bar Association. Most states have waiting periods for creditors to respond, during which time the probate estate can’t be distributed—and that's only if an individual's affairs are in order. Anything hairy means delays and more work.
Depending on the state, probate can be expensive. In some states it can cost between 5 to 7 percent of your estate. Similarly, an estate planning attorney’s fees sometimes scare folks away. However, completing an estate plan on the web or through a lawyer who charges only a few hundred dollars to set up a basic will often leaves too much to interpretation.
The article advises you to understand how assets are titled and how beneficiaries are designated—the two most critical and least understood concepts in estate planning.
One more benefit to planning your estate with a qualified estate planning attorney versus a do-it-yourself online form is that your attorney will help you update your plans as laws change, and keep in touch with you throughout your life. Your online will won’t tell you if you need a change or modification. You should update your estate plan at least every three years or when you experience a big life event, like a death, birth, marriage, or divorce.
As you live your life, make sure your estate plan reflects the needs and wants of your family.
If you are in need of creating your estate documents or need to make changes to existing documents contact Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney.
Reference: The Denver Post (June 15, 2015) “How estate plans protect family assets far better than a will”
07/06/2015
Not as Simple or as Easy as the TV Commercials: Reverse Mortgages
Caution is urged when considering a reverse mortgage as a solution to financial problems during retirement years. Television commercials targeting seniors leave out most of the unpleasant parts of a reverse mortgage. Rates and fees are extremely high and the homeowner is still responsible to pay property taxes, insurance and upkeep. It’s important to understand the positive and negatives before signing on the dotted line.
The Better Business Bureau receives a lot of complaints about reverse mortgages. As these complaints show, there are problems and issues with reverse mortgages, and they also illustrate that more than a few consumers are confused when they sign up.
A recent article in The (Appleton WI) Post Crescent, titled “Be cautious before taking on reverse mortgage,” says that some consumers don't know that a reverse mortgage is a loan that leverages their home’s equity. It's actually one of the most expensive forms of credit a person can get, with its origination fees, interest charges, and insurance premiums topping those of most other types of loans. Typically, a reverse mortgage origination fee can be up to $6,000 and the initial premium for federal insurance is set at 2% of the home’s value.
Repayment of a reverse mortgage loan isn't required until the borrower dies or moves out of the home, but this is where it can get a bit hairy: if the borrower moves into a nursing home or assisted living facility and leaves behind a non-borrowing spouse, child, or grandchild, they’ll also need to move out.
The article explains that there are seniors who apply for a reverse mortgage because of financial difficulties, which can include property taxes or insurance payments. Reverse mortgage agreements generally state that the property taxes, insurance, upkeep, and maintenance are still the borrower's responsibility. If the borrower fails to do any of these, he or she will be in default. The lender can foreclose.
So, who is best situated for a reverse mortgage?
The Number One benefit of a reverse mortgage is that a senior can remain in the home while at the same time receiving a steady cash flow. The best reverse mortgage candidate is an individual age 62 or older who lives alone and has significant equity in the home (or doesn’t have a mortgage). Also, this person isn't planning on leaving the home to their heirs and is healthy enough to stay in the home for a long time without going into an assisted living facility.
The article says that if you're thinking about a reverse mortgage, forget about those celebrity spokespeople on TV! Talk with Robert A. Gordon of Redkey Gordon Law Corp, an experienced elder law attorney before signing anything.
Lastly, watch out for scammers who want to take advantage of seniors. That includes anybody with a too-good-to-be-true interest rate, real estate deal, or investment idea. Talk with a qualified elder law attorney first.
Reference: The (Appleton WI) Post Crescent (June 20, 2015) “Be cautious before taking on reverse mortgage”