Tag: Long-Term Care

Establishing a Third-Party Special Needs Trust for a Disabled Grandchild

Have you considered creating a special needs trust that can be used to provide financially for a grandchild with special needs without jeopardizing the receipt or continued receipt of government benefits? There are different types of special needs trusts, each better suited to some situations than others. A qualified special needs estate planning attorney can guide you through the options. If you are a grandparent with a special needs grandchild, a third-party special needs trust may be the best choice.

A first-party trust and can be used when the beneficiary of the special needs trust is the person whose assets or property are going to fund the trust. This type is often utilized by a disabled individual in order to allow them to qualify for medical assistance from the state. As the grandparent of the special needs individual, this is probably not the right choice for you. Another type of special needs trust is a third-party trust. A third-party special needs trust can be used when you have decided to fund a trust for another special needs beneficiary, in this case your grandchild. A third-party trust is often also called a supplemental needs trust. This is because the trust is intended for you to provide funds to supplement the needs of your grandchild, rather than provide for all of their expenses or replace any assistance they might currently receive. 

If you decide to set up a third-party special needs trust, the trustee can be you, your spouse, your child (the parent of your grandchild) or another relative or friend. The trustee will be responsible for informing your local authority that the trust exists if your grandchild applies for any type of medical assistance, and the appropriate agency will decide whether it should count when determining your grandchild’s eligibility for services. The existence of the trust should not impact any responsibility of your grandchild’s school district to provide them with services, but it can be important to talk to a qualified attorney to understand the specifics. The main thing to keep in mind may be that, if you are considering leaving money to your grandchild with special needs, creating a third-party special needs trust will likely allow them to use the money you intend to leave them without jeopardizing other assistance they currently receive.

Do you have questions? Please contact our law practice to learn more. We are here for you. Elder and Estate Planning Attorneys PA is a law office small enough to provide personal service but large enough to provide service in Palm Beach, Martin, St. Lucie and Indian River Counties.

Three Key Veterans Benefits to Know About This November

With Veteran’s Day, November is a great opportunity to set aside time to honor our veterans and thank them for all they have done for our great nation. One way the U.S. tries to give back to veterans is through veterans benefit programs. Did you know, however, that veterans benefits can be very complicated and many veterans may not even be fully aware of the wide range of benefit programs available to them? Let us take time to review three key veterans benefits to know about this November.

First, there are several education benefits offered through the VA. In addition to the GI Bill offering credits to use towards a college degree, it also provides coverage for training certification courses and vocational training programs. The fact that the GI Bill offers these kinds of training opportunities makes it ideal for those veterans who are seeking a career change that does not require a college degree. Veterans can also participate in free coding bootcamps and comparable software training and technology programs through the VET TEC program.

Second, veterans have the option of getting life insurance through the Servicemembers’ and Veterans’ Group Life Insurance program. Through this program, veterans may be able to receive up to $400,000 in life insurance. Not only does this program offer competitive premium rates, but it can allow veterans a chance to gain life insurance where they may find it difficult to find it otherwise. Many veterans face difficulties in getting traditional life insurance and this can be particularly true if they have suffered a service-related injury.

Lastly, veterans should be aware of the long-term care benefits they may be eligible to receive. For instance, the VA Pension with Aid and Attendance benefits program offers qualifying veterans financial assistance in order to cover the cost of a nursing home and other long-term care facilities. In fact, the program means that couples may receive upwards of $25,000 a year in benefits to help with long-term care costs 

Do you have questions? Please contact our law practice to learn more. We are here for you. Elder and Estate Planning Attorneys PA is a law office small enough to provide personal service but large enough to provide service in Palm Beach, Martin, St. Lucie and Indian River Counties.

3 Reasons Why Updating Your Florida Long-Term Care Planning Should Be a New Year’s Resolution in 2020

A new year is an exciting time for all of us. No matter what your resolutions are, this is the time to set your ideas in motion for what you want to achieve not just this year, but this decade. As a Florida senior, however, do you have concerns about your health or a potential need for long-term care in the future?

We understand this concern. Many of our clients share with us that they did not know that they could plan forward for long-term care issues until it was too late. We are here to tell you that you can be proactive and start Florida long-term care planning now. You can work with both your elder law attorney and your loved ones to ensure that you are protected under all circumstances. 

Let us share with you three reasons why updating your Florida long-term care planning, or creating it for the first time, should be at the top of your to do list this year.

  1. Your life can change unexpectedly. None of us are guaranteed a future. We are also not guaranteed to be healthy in our future. Health care crises can occur overnight and, unfortunately, when we least expect them. Formally healthy aging parents, spouses, and friends, can suddenly find themselves facing significant health concerns. Knowing what you want to do and how you will handle a crisis is critical to ensuring that you are able to access the best care possible should this happen to you or to a loved one. Do not put off thinking about the unexpected and take the time you need to complete Florida long-term care planning.
  2. Medicare does not pay for most long-term care needs. For many Florida seniors and their loved ones, they are relying on Medicare to help pay for most healthcare costs. Medicare, however, is an acute payor system. This means that it is not set up to pay for long-term custodial care. In a crisis you may need to pay for care out of pocket or seek to become eligible for public benefits programs, such as Medicaid. Learning what you will need when it comes to Florida long-term care planning early, can help everyone involved.
  3. Estate planning is not enough. Many of us have estate planning. We believe, mistakenly, that this will be enough to protect us in the event of a long-term care issue. Unfortunately, it is not enough. While estate planning is critical, and you need it to ensure you and your loved ones are protected, it is equally important to plan with your elder law attorney to understand how you will be able to find good care and afford it in the event of a crisis.

We know this article may raise more questions than it answers. There is never a wrong time to plan forward for both Florida long-term care planning and estate planning. We encourage you not to wait to get the advice you need. You may contact us to schedule a meeting at any time with us now, or in the future.

How Do We Plan Ahead to Afford Long-Term Care Outside the Home?

Planning to afford long-term care is important because it is estimated that one out of every two of us will need some form of long-term care before we die. Most of us cannot depend on our children to fund these needs since they have their own bills to pay and family dependents to provide for. In addition, government assistance for long-term care is only available to those who are impoverished. 

 

For most of us, however, long-term care expenses will be initially affordable. Unless a person is afflicted by a paralyzing stroke or a quick onset of Alzheimer’s Disease, initial long-term care expenses can be met by paying for the cost of temporary caregivers. These caregivers can attend to basic chores within the home setting that we are physically incapable of easily performing. There are even times, in Florida, when a county funded agency can pay for or help us with the cost of these initial services. This is true if we are financially below the county’s maximum income or asset limit and there are hours available. 

 

In planning to pay for future long-term care outside the home, however, we should plan as early as possible. Where do you find care? There are several options outside of the traditional nursing home setting. For example, one could visit the owner of a family group home in his or her community where four to six persons are cared for at the owner’s home. The resident receives his or her own room with benefits such as housekeeping, assistance with activities of daily living, someone to drive the residents to doctor appointments, and well balanced meals. All of this is in exchange for a reasonable monthly charge. Armed with this information from the local community, the prospective resident could then begin saving monthly to cover the nominal cost of the family group home when this expenditure becomes necessary. 

 

Another example would be when one visits the administrator of assisted living facilities where thirty to forty persons are cared for at the assisted living facility. Again, the resident receives his or her own room that is cleaned every day, assistance with activities of daily living and driving, plus well balanced meals. If a person making the visit or their spouse was a veteran of the armed services during war-time, there may be a monthly VA Pension with Aid and Attendance available if the prospective resident’s assets and income are below the government threshold. 

 

Again, the key is to start planning early. Researching the costs of these options plus the daily cost of the nursing home should be done before the need arises in the family. We encourage you to meet with a member of our legal team to discuss your concerns about where to live and how to pay for the care you may need. Further, do not wait to discuss your durable power of attorney in this meeting as it is important that this document is written to contemplate long-term care so the agent can sign the application for benefits if you are incapacitated. 

Tips for Florida Seniors in Light of the Changes to the VA Pension Rules

The concept of paying for long-term care in Florida can be daunting. According to the Genworth Long-Term Care Study for 2018, assisted living costs per month average $3,500 while the cost of a semi-private room in a nursing home is approximately $8,150.  For the majority of Florida seniors, they do not have these additional funds available in their monthly income and are looking to pay for care either through savings or public benefits assistance.

 

When the need for long-term care arises, it is often a crisis. For example, the Florida senior may have a fall that results in a broken bone and the need for rehabilitation in a skilled nursing facility. If the need for assistance becomes more permanent, he or she may not be able to leave the facility or require extensive hands-on care upon the return home.

 

How do we plan now to afford long-term care in the future? Are we able to plan for what we may need in advance? Further, how can we ensure that we have a plan in place so that we, as Florida seniors, are making our decisions of how we want to be cared for and not leaving the choices to our adult children or decision makers?

 

Elder law planning contemplates all these needs. Together, we can design a plan that may not only find a way to pay for care but also ensure that you receive good care. In Florida, programs such as Medicaid exist to help us pay for the cost of long-term care. If you are a Florida veteran, however, there also may be additional funds available to you.

 

For wartime veterans, the VA pension program exists to provide monthly, tax-free income to veterans with a qualifying service record. The VA pension program is in no way tied to a service-connected injury or disability. Instead, it is tied to the service record of the veteran. To begin to qualify, the veteran must have 90 days of active military service with one day during a period of war. Further, the veteran must have been discharged under conditions that were other than dishonorable.

 

The rules governing the eligibility for the VA pension program change substantially last year on October 18, 2018. Prior to this date there was no set amount that the veteran, or his or her surviving spouse, could have in countable assets. Now, for 2019, the new rules created a limit. The veteran may only have $126,240, less excluded assets that he or she is allowed to own. We anticipate this amount will change each year with a cost of living increase similar to the Social Security program.

 

Another way this program changed was to create a “look back” period. A “look back” period is the time period in which the VA may look at the veterans bank records to determine if he or she gave away money that could have been used to pay for care. This type of program is currently in place for the Florida Medicaid program, although it operates slightly differently. Under the new VA rules, the “look back” period will be for the thirty-six months prior to application.

 

We know this article may raise more questions than it answers. We encourage you to reach out and ask us your questions on this, or any elder care issue. When it comes to finding ways to access good long-term care in our community and be able to afford it, we are your local law firm here to help you.

Going Through a “Gray Divorce” Requires Keeping an Eye on Retirement

We know that going through a divorce can be a traumatic experience for anyone at any age. Younger and middle-aged couples often face the unfortunate challenge of splitting up with children involved. Older couples face their own harrowing challenges, particularly if they have been married for a long time and are beyond their prime working years.

Many older adults no longer possess the desire to climb the corporate ladder or compete in the job market, if they are able to work at all. Further, with their shared nest eggs and investments that can be greatly reduced through a separation, it is recommended that older couples keep an eye on their retirement accounts when going through a “Gray” Divorce.

As always, meeting with an experienced attorney should be one of your first steps if you are considering a divorce. When it comes to separating later in life a consultation with an estate planning and elder law attorney is critical so you may discuss the impact on your long-term care options. Let us share a few tips to help you through this process.

1. Seek wise counsel. Obtaining a qualified attorney is a must, but a financial advisor or attorney with estate planning experience can be an added advantage. They can help organize long-term retirement goals, set up estate documents, and provide information and guidance for negotiating a favorable divorce settlement.

2. Obtain documents. Whether you or your spouse was in charge of your legal, financial, insurance and tax documents, it can be critically important to obtain copies for your divorce negotiations and retirement planning. Think of these items as the bedrock for your financial future.

3. Be financially prudent. It is true that there is more to life than money, as evidenced by the love and compassion that once led to your marriage. Money, however, is an inescapable part of life, and the older one gets the more important financial stability becomes.

4. Make sound financial decisions. This is important throughout the course of a “Gray” Divorce proceeding, as well as, with post-divorce decisions about the lifestyle one can realistically afford. A healthy goal would be the funding a comfortable, long-term retirement and building up from there. It may be easier said than done, but it is not impossible.

Knowing that you are financially supported in your latter, non-working years can bring peace of mind during a difficult time. It may also allow you to live out your golden years with a greater sense of enjoyment amid your new family circumstances. Do not wait to contact us with your questions