Roy Johnston, JD and Craig Lorenz, CPA take what could be a very complicated subject and made it clear, concise and easy to understand. When you get done listening to this, you’ll have a much better understanding of estate taxes, portability, trusts and even how new tax laws may effect you! Listen to Estate Planning Made Easy.
Archive for Estate Planning
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Check out my interview on Maximizing Social Security Benefits with Marie Theilade and Brian Purcell from Merrill Lynch Wealth Management. They joined us on “The Aging Boomers” to help our listeners better understand how to maximize social security benefits. They specialize in lifestyle transitions including retirement, layoffs, divorce and inheritance, with a focus on retirement income planning and maximizing social security benefits.
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Categories : assisted living, Baby boomers, Elder Care, Estate Planning, Medicaid, Medicare, senior care, Social Security Benefits
It’s no secret that with people living longer, there continues to be an increase in family caregiving for parents and other loved ones. This trend also has a domino effect on the impact in the workplace. Just take a look at the following statistics:
• 61 percent of family caregivers over the age of 50 are employed, (50 percent full-time and 11 percent part-time). – National Alliance for Caregiving (NAC) and AARP, Caregiving in the U.S.
• 64 percent of workers with eldercare responsibilities most commonly arrive late, leave early or take off time during the day to provide care, 17 percent are reported taking a leave of absence and 9 percent have to go from full-time to part-time work. – National Alliance for Caregiving (NAC) and AARP, Caregiving in the U.S.
• 19 percent left the workplace entirely because of having to care for a spouse or other family member. – Employee Benefit Research Institute, The 2012 Retirement Confidence Survey.
These challenges will continue to rise. By 2020, one in three total U.S. households is expected to be involved with caring for an elderly relative, up from one in four today.
ELDERCARE VERSUS CHILDCARE
Even with this ongoing increase in working family caregivers, some might say that it is not too different than childcare while the baby boomers were born between the years 1946 and 1964. Let me tell you some of the key differences:
1. The beginning of eldercare and the duration is unpredictable. This can come on suddenly and often involves many family members.
2. The physical demands on eldercare can be greater since it may include intimate personal assistance of activities of daily living like bathing or toileting for a grown adult.
3. The financial costs for eldercare can add to the strain of caregiving and the effects it has on one’s job.
4. The distance between where the adult child and parents live adds to the stress and complications associated with logistics, additional expenses and the job when long-distance travel is involved.
5. Having a number of family members involved can lead to disagreements among siblings and these emotions can play a significant role when caring for a parent.
WHAT SHOULD FAMILIES DO?
Talking about your children and showing pictures of them on Smart Phones are commonplace today. Showing pictures of your elderly parents who need care is not an everyday thing. Some years back when you heard that someone died in their 70’s, it was not a big surprise. Now, the comment would be, “he (she) was so young!” Today, we hear more about people living until their late 80’s, 90’s and even 100’s.
Unfortunately, most people don’t want to face the fact that their family members are aging and may someday need care. Both the parents and adult children would rather not think about it. Since most are living longer because they are beating heart disease, cancer and other diseases, families have to change and openly discuss the facts and plan appropriately. By discussing financial matters, Durable Power of Attorney, insurance matters, parent’s wishes (if family cannot provide the hands-on care) and the list goes on. Most in the U.S. believe that if someone cannot age at home, they have to go to a nursing home. That’s just not true anymore, and there are other options.
According to the MetLife Mature Market Institute, family caregivers (50 and older) who leave the workforce to care for a parent lose, on average, almost $304,000 in wages and benefits over their lifetime. These estimates range from $283,716 for men and $324,044 for women. Planning properly will help to reduce these numbers somewhat since the caregiver’s role is also dealing with attorneys, doctors, support services and the list goes on. Here are just a few of many questions I ask adult children when a parent is going to need some level of care, whether at home or outside the home:
• Do you know how much your parent has coming in each month?
• Is there any long-term care insurance?
• Who has Durable Power of Attorney?
• Do they have an Advanced Health Care Directive?
When the answer is “I don’t know,” that adds to their stress level and now family members have to work together to get things done. Plan. Plan. Plan.
WHAT SHOULD COMPANIES DO?
A recent study from the National Alliance for Caregiving, Workplace Eldercare shows by implementing eldercare programs can benefit employees and employers with worker retention, productivity, stress levels and health among workers. Some examples of programs include:
• Referral to caregiver resources including in-home care companies, senior placement companies, health care advisors, senior move managers and more.
• Having caregiver resources speak to working caregivers and provide information at the workplace.
• On-site support groups for working caregivers.
These workplace benefits can help working family caregivers balance their work and personal lives while attending to the necessary caregiving responsibilities. The company can benefit from improved employee retention which saves money as well as recruitment efforts to attract the most talented individuals.
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Categories : AARP, Assisted Living Sonoma California (CA), Baby boomers, ca, Dementia, Elder Care Manager, Elder Care Sonoma California (CA), Estate Planning, Family Caregivers, Geriatric Care, Geriatric Care Manager, Hiring, Home Care Sonoma California (CA), Human Resources, in home care, inhome care, residential care, residential care homes, Senior Care Authority Sonoma California (CA), Senior Placement Services Sonoma California (CA), The Aging Boomers
4 Key Observations With Parents This Holiday Season
by Frank Samson, Certified Senior Advisor · Comments (0)
03
Dec
With the holidays approaching, many have made plans or are making plans to visit with their parents and other loved ones. Some family members haven’t been together for quite awhile, and this is an exciting time to celebrate being with one another. While visiting and enjoying the season, it is also important to recognize the things may have changed since the last visit. In this regard, it is important to observe your parents and their surroundings to determine if they need additional help with care and/or assisted living.
Observation 1 – Changes in Parents
• Appearance of Home – Does it seem like the home needs more maintenance than usual? Offering to help with whatever needs to be done around the house will give you a pretty good idea of things that are not getting done.
• Weight – Does it seem like they’ve lost weight or are frailer?
• Hearing – If they’re giving you answers to questions that don’t make sense, they may need to be checked by a professional for their hearing.
• Medications – Are they taking their medications consistently? Check to see if medications are organized properly and try to determine if they are taking them in a timely manner. How is their balance? If there appears to be a balance problem, medications or incorrect prescription eyeglasses could be playing a role, so visit the appropriate doctor.
• Driving – How is their driving? Have them drive if you go for a ride and take notice how they are on the road.
• Bills – Are they paying their bills? Has the mail even been opened?
Observation 2 – Surroundings for Fall Prevention
• Handrails – Are there handrails on the stairway? Is the stairway well lit? Having handrails professionally installed on both sides helps avoid falls. Handrails should also be installed in showers, toilet areas or anywhere where balance has to be shifted.
• Rugs – Could rugs be a tripping hazard? A small increase in floor height of a rug could cause problems. Non-skid rugs should be used on bathroom floors.
• Bathroom – Is there a step-in bathtub or walk in shower? What about a shower chair? A toilet safety frame? Bathrooms are a common place where seniors fall, and it can be very dangerous due to hard surfaces and sharp corners.
• Clutter – Are there newspapers, magazines, shoes and other materials lying around or on the stairs? Keep these things away from common walk areas.
• Storage – Is everything within easy reach? Eliminate the use of ladders and make sure storage items are in convenient locations.
Observation 3 – Documents for Parents End of Life Wishes
• Legal documents – Power of attorney and health care directives (living will). If these documents are complete, make sure you have copies for yourself and know where they are stored. If not, help get them going. These documents are free and can be prepared without an attorney if you are comfortable with this. Don’t wait until there’s an illness that can make it then difficult to execute. Talk to your parents and make them aware of how important it is to you (and should be to them) to have these documents completed…it’s never too early to have them done!
• Keeping Records – Keep records of your parents’ doctors, medications and contact information. This can save you from both panic and stress when an emergency arises.
Observation 4 – Normal Aging or Early Signs of Dementia
Though a medical professional dealing with the elderly is the most well equipped to diagnose dementia, it is important that family is aware of any early signs. Taking a proactive approach is vital to early diagnosis and treatment. Presently, there is no cure for the progressive dementias, such as Alzheimer’s, but treatment such as medication, nutrition and interpersonal communication could help slow the disease’s progression.
Memory loss does not necessarily mean that someone has dementia. A professional in this field gave me an analogy that sticks in my mind. She said that memory loss is when someone forgets his or her car keys, but someone suffering from a form of dementia may not remember that he or she owns a car in the first place.
Following are some signs of which to be conscious in the early stages and consult with a professional if they persist:
• Changes in short-term memory
• Adding and subtracting
• Using a word incorrectly when talking
• Jumbling words
• Quiet or withdrawn
• Lack of interest or initiative
• Inability to carry out plans
• Becoming more angry, frustrated and restless
• Struggling with tasks that used to be routine
If your visiting with your family during the holidays, have a wonderful time being together. However, keep in mind that it’s important to be aware of the surroundings to create a less risky setting at home and to get the assistance necessary to keep your parents safe. Many times the relative who visits the most infrequently is the one who notices the changes.
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More Long Term Care Myths and Facts – Part 2
by Frank Samson, Certified Senior Advisor · Comments (0)
18
Nov
In a recent blog, I shared some long-term care myths and facts. I’ve added more myths relative to long-term care (LTC) costs.
Myth: Most LTC costs are paid by Medicare, the federal health insurance program for those age 65 or older.
FACT: Because Medicare is health insurance for those over 65, many assume LTC is included in the coverage; however, Medicare does not pay for LTC. Medicare coverage focuses on treating acute, short-term illnesses. Although it may include nursing home and home care (certain medical needs), it is for a limited time (less than three months).
Myth: My existing insurance will pay if I need Long Term Care.
FACT: Studies suggest that almost one-third of consumers think they are covered by an existing insurance of some type, but they are not. It is a myth that health insurance policies will cover LTC costs. Medicare supplement policies are not designed to do so. Disability insurance typically protects against the loss of income due to a disability. But this type of insurance does not pay for the supportive services or the daily living help a person may need to remain independent. Long-term insurance policies are designed to cover a range of LTC services.
Myth: Most people are buying LTC insurance to protect themselves.
FACT: While the number of people purchasing LTC insurance has grown in the last decade, current estimates suggest about 10–13 percent of Americans over age 55 have LTC insurance coverage. Private and public employers are increasingly offering group LTC insurance coverage as a benefit option for their employees.
Myth: LTC insurance will protect against all possible costs associated with LTC.
FACT: There are no LTC policies on the market that will guarantee that all costs for
LTC will be covered during one’s lifetime. Policies often limit coverage to specific settings, for specific lengths of time, and to specific dollar amounts per day. Compare exclusions and limits carefully when shopping. Keep in mind that LTC insurance can complement other financing alternatives, such as self-insuring.
Myth: Everyone can depend on Medicaid (Medi-Cal in California) to pay for a range of LTC services.
FACT: Medicaid is not designed to pay for LTC expenses for all people, regardless of
income and assets. Medicaid or Medical Assistance is a federal and state government
program that serves as the safety net for individuals who need LTC and meet the
low income and asset eligibility criteria. There are various services potentially available under Medicaid Waiver programs, but varies dramatically across the 50 U.S. states. This can affect consumer choices.
Myth: There is no value in having LTC insurance if I use up all the benefits and still have to “spend down” my assets to qualify for Medicaid.
FACT: A majority of states now offer a LTC Partnership Program. Partnership programs are designed to protect consumers from having to become impoverished to qualify for Medicaid—thereby saving the state’s limited Medicaid resources. If a consumer takes personal responsibility and purchases an approved LTC insurance policy, then the State guarantees that if benefits from the LTC policy do not cover the cost of LTC, the consumer may qualify for Medicaid while retaining a predetermined amount of assets.
Myth: “My greatest asset is the equity in my home, but the only option I have is to sell my home to get to this money.”
FACT: A reverse mortgage is a loan against the equity or value in a senior’s home that does not have to be paid back as long as the senior lives in the home. The money is repaid, plus interest, when the senior dies, sells the home, or permanently moves out of the home. In certain situations, reverse mortgages can work well, but they are not for everyone. Recent changes in home values and the current real estate market are critical factors to consider.
Assisted Living for Future Generations
by Frank Samson, Certified Senior Advisor · Comments (0)
25
Oct
About 6 months ago, I wrote an article on The Future of Assisted Living and Nursing Homes, but I came across another article which I hope you’ll find informative as well. This particular study talks about the needs and desires of Aging but active baby boomers, as well as the generations before them. The study considers how the the diverse lifestyle needs of people in various phases of their senior years has created new opportunities for the U.S. housing industry. Read more about this new publication from the Urban Land Institute (ULI).
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Long-Term Care Myths and Facts (Part 1)
by Frank Samson, Certified Senior Advisor · Comments (1)
30
Sep
When families are confronted with having to make decisions about the care of a parent or other loved one, their understanding about long-term care is quite often very different from the facts. This process can be very stressful both financially and emotionally, so I hope by sharing this series of myths and facts in long-term care will help by reducing the stress associated with this process and better prepare for costs associated in long-term care.
Myth: If someone cannot live at home safely anymore, they will ultimately have to go to a Nursing Home.
FACT: Though this was a reality several years ago, there are many more options in today’s world. The reality of long-term care can be quite different than the nursing home setting many envision. Long-term care may involve assistance with “activities of daily living (ADL’s),” such as eating, bathing, dressing, walking, toileting, or taking medications. Some may have multiple chronic health problems such as cancer, arthritis, heart disease, diabetes) and cognitive impairments such as Alzheimer’s disease or other forms of dementias. Long-term care may include a variety of settings including in-home care (medical and non-medical) and Assisted Living options from small, residential care homes to larger multi-level communities. Those who have not yet been confronted with long-term care of a parent or other loved one will be pleasantly surprised by the many choices and options they have compared to what their grandparents experienced.
Myth: There is less risk associated with long-term care than with other life events that can impact an individual’s financial security.
FACT: There is a greater risk of needing long-term care than many other life events. According to U.S. Department of Health and Human Services, “about 70 percent of people over age 65 will require some type of long-term care services during their lifetime.” In comparison, insurance professionals cite that the probability of losing your home to a fire is 1 in 1,200 and that the chance of having a car accident is 1 in 240. Although most people have a car, homeowners, and health insurance, few have planned to protect themselves against the much more likely risk of needing long-term care.
Myth: The risk of needing long-term care is greatest when a person turns 65 years of age.
FACT: The oldest old (individuals who reach 85 years and older) are the ones most likely to need help with activities of daily living. The average age of an assisted living resident is 86.9 years old. According to the U.S. Census Bureau, between 2010 and 2030, the age 75-84 group will increase by more than 86 percent, the age 85+ group by 57 percent, and the overall age 75+ group by 77 percent.
Myth: Both Men and women are equally at risk for needing long-term care.
FACT: Women face a greater likelihood than men of needing long-term care. Longer life expectancies for women increase the chances of them reaching the 85-plus age group. This means that women are more likely not only to need long-term care but also to outlive husbands and caregivers. Approximately two-thirds of assisted living residents and nursing home patients are female.
Myth: Home care is less expensive than assisted living or nursing home care.
FACT: Long-term care costs are dependent on the type of care and duration needed. Depending on the type and amount of services used, receiving home care may or may not be less expensive than being in an assisted living location or nursing home. In many cases, home care is a cost-effective alternative greatly preferred by individuals who want to stay in their own home. According to the 2011 MetLife Market Survey of Long-Term Care Costs, below are the average costs in the United States:
• In-home, non-medical care: $21 per hour or approximately $15,000/month if 24/7 care were needed.
• Assisted Living – $3,477/month
• Skilled Nursing – $6,420/month
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Categories : Alzheimer's, assisted living, Assisted Living Sonoma California (CA), Baby boomers, board and care homes, Caregivers, Dementia, Diabetes, Elder Care Sonoma California (CA), Estate Planning, Family Caregivers, Home Care Sonoma California (CA), in home care, inhome care, Long term care insurance, Nursing Homes, Nursing Homes Sonoma California (CA), residential care, residential care homes, senior care, Senior Care Authority Sonoma California (CA), senior health, Senior Placement, Senior Placement Services Sonoma California (CA)
I had the wonderful opportunity of interviewing Viki Kind on “The Aging Boomers” radio show. Viki is a clinical bioethicist and educator and wrote an award winning book called “The Caregiver’s Path to Compassionate Decision Making: Making Choices For Those Who Can’t.” The book guides family and professional caregivers through the challenging process of having to make decisions for those who have lost the ability to do so. She has lectured across the country teaching healthcare professionals to improve end-of-life care through better communication. Listen to my interview with Viki Kind.
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Preparing for Medical and Family Emergencies
by Frank Samson, Certified Senior Advisor · Comments (0)
02
Aug
In most situations, seniors do not plan well for their own emergency health situations as they age. The perception is that Medicare will cover all their needs and that is just not correct. What happens next is the adult children or family members are in a situation of providing financial support and/or decision making responsibilities as their loved one’s age and care needs increase.
I had the opportunity to interview a team of experts who discuss many of the areas of preparation which will save time, money and future stress. Listen to the interview on Elder Care Planning on “The Aging Boomers” radio show. In addition, US News & World Report has an informative article on this very subject matter called, Make Elder Care Part of Your Financial Plan.
I hope both the interview and article will shed some light on how important it is to plan for future health care needs.
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Leslie Whiting, founder of Long Term Care Options, provides us with an educational session on Long Term Care Insurance. Leslie is a veteran of over 15 years in this industry and has been dedicated to serving individuals, families and groups on proper planning for long-term care. If you want to learn something about the benefits of long term care insurance, listen to this!
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Categories : Baby boomers, Dementia, Estate Planning, in home care, Long term care insurance, senior care
Frank Samson’s Aging Boomers Blog
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Copyright © 2013 All Rights Reserved