The Risk of Adding Your Children to Bank Accounts

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I want to leave my bank accounts for my children when I’m gone. Can’t I just make the children joint owners?

That idea sounds better than it actually is. In Louisiana, this will not allow you to avoid court proceedings when you pass. Moreover, you’d put yourself at risk, at a time when you might need your money yourself. Your accounts would be exposed to your children’s divorcing spouses, bankruptcy, liability for legal actions, or, last and doubtless most uncomfortable to think about, your children could simply spend your money without your permission. The best way to resist temptation is to avoid the opportunity in the first place.

 

Payable on Death (POD) Accounts

Although Payable on Death accounts are allowed in Louisiana, there are many restrictions. Even if set up properly, attempting to utilize one of these accounts as part of your estate plan without the guidance of an estate planning attorney or elder law attorney can cause more trouble and cost than it is worth. This is because although the POD account is allowed (which merely tells the bank to pay your designated person upon your death), the fact of a POD account does not alter general substantive inheritance laws. For example, if you list a spouse as your POD beneficiary of money that your kids would otherwise inheritance, this account is not going to alter their rights. You could be setting up an avoidable fight and expensive litigation between your spouse and kids.

Plan for the Future of Your Finances

While you are alive, it is essential to designate a person you trust to pay your bills when you can’t. With our comprehensive enhanced power of attorney document, your trusted person can take care of your finances when you aren’t able. Avoid downloadable internet versions. Come see us instead. You don’t want banks and insurance companies to reject your document as insufficient when you most need it!

 

Power of Attorney

If your power of attorney is powerful and detailed enough, you can be confident that your trusted person will take care of your finances if you become disabled.

For help with your planning needs, please give us a call. We’d be honored to help make sure your plan is what you want and that it is properly documented. Please contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss how we can help.

Now More Than Ever Veterans Benefits Planning is Essential

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The COVID-19 virus is not going away as many had hoped. And studies have shown it is deadlier for those over the age of 65. Individuals living in senior living communities, such as independent living, assisted living, memory care, and nursing homes have the highest risk of becoming infected and possibly dying from the virus or secondary illness, such as pneumonia, after being weakened from the virus. For many families, providing long term care for a loved one in the home has become an even bigger priority than normal. In-home care can be costly, which makes the Aid and Attendance Benefit provided by the Department of Veteran’s Affairs of critical importance to help pay for such care.

Veteran Aid and Attendance Benefit

The Aid and Attendance Benefit, technically called the Improved Pension Benefit, is a cash benefit paid to wartime veterans that are over the age of 65 and require another person to assist them with activities of daily living, such as bathing, dressing, feeding, and assistance with incontinence, or requires a protective environment due to mental decline. The Aid and Attendance Benefit is also available to similarly disabled spouses of deceased wartime veterans that are over the age of 65. It is this need for assistance with care or a protective environment that has the family looking into long term care facilities for their loved one.

The Aid and Attendance eligibility rules also require the person receiving the benefit of having limited income. Simply put, all income of the applicant and the applicant’s spouse must be offset by the medical expenses of the applicant and the applicant’s spouse. Any income not offset by medical expenses reduces the amount of the benefit. Under the Aid and Attendance rules, when the wartime veteran or surviving spouse requires assistance with activities of daily living or a protective environment, paying an in-home caregiver to provide that care is a medical expense. It does not matter whether the caregiver is a child or hired through an agency.

Current Veteran Benefits

For 2020, the maximum benefit paid to a married wartime veteran is $2,266 per month. The maximum benefit paid to a single wartime veteran is $1,911. The maximum benefit paid to a surviving spouse of a wartime veteran is $1,228. Working carefully through the math, if a married wartime veteran needs long term care and has a household income of $4,000 per month, he or she will need to spend $4,000 per month on medical expenses to receive $2,266 per month. That veteran likely already has medical expenses in the form of two Medicare and two Medicare supplement premiums, as well as possibly two Medicare prescription supplements. The remaining income needs to be spent on additional medical expenses, specifically an in-home caregiver.

The family must now decide the best way to navigate paying the in-home caregiver. If the couple has children, perhaps the remainder of the household income can be paid to a child, or split among the children, as payment for caregiver services. In many cases, using a child or children as a caregiver allows for flexibility in the amount a caregiver is paid. The income calculation can be manipulated to net out at exactly zero, instead of going into the negative. This allows the veteran to use the $2,266 per month benefit to pay for the couple’s non-medical living expenses.

Other Veteran Benefits for Caregiving

The other option is to hire a caregiver from an agency. This option is more expensive than using a child as a caregiver, but it comes with the added benefit of ensuring taxes are withheld and workers’ compensation insurance is provided in case of an accident. If the family wants the income calculation to net out at exactly zero, the veteran typically will not get as many hours of service from the caregiver hired through an agency compared to hiring a child since an agency typically charges a higher per hour rate. This would work well for a veteran that does not need a lot of care, or that has a wife and/or children that can cover the additional hours of care for free. Otherwise, the agency will need to be paid to provide the additional hours of service, which means the $2,266 benefit paid by the Department of Veterans Affairs will also be used to pay for the care and the couple will have to use assets to pay for the couple’s non-medical living expenses.

The Aid and Attendance Benefit also has an asset limit the applicant must meet, along with a penalty for giving assets away and a 3-year period to look back at the applicant’s assets to see if any gifts were made. These rules should not dissuade a wartime veteran or surviving spouse from seeking this benefit. The need for long-term care will only increase. The cost of care will only increase. And now the COVID-19 virus makes it critical that everything possible is done to protect this vulnerable community.

If you have questions or would like to discuss whether you or a loved one may qualify for Veterans Benefits, please don’t hesitate to reach out. Please contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss how we can help you with your VA planning needs.

Five Facts About Dementia Caregiving in Louisiana

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Dementia, in particular, the prevalence of Alzheimer’s Disease in the American population, is creating difficult caregiving experiences for the family members who are primarily responsible for providing care. Even though you understand your loved one’s dementia behaviors are a symptom of the disease and not intentional or personally targeted to you, coping with them is often emotionally, financially, and physically challenging. Psychology Today reports caregivers routinely say, “Nobody really understands how hard caring for a loved one with dementia is!”

First Fact: Most Care is Provided to Someone with Dementia

Psychology Today is also reporting five facts that you should know about dementia caregiving, particularly since its incidence is increasing in the United States. The first fact is nearly half of all people who provide care do so for someone with dementia. The statistic is 48 percent of caregivers are providing for those who have Alzheimer’s Disease, Vascular Dementia, Lewy body dementia, and more. Additionally, dementia is typically not the only ailment a loved one suffers from, and dementia can have long phases from preclinical to its last stage, making caregiving a long-term commitment. The complexity, hours, and level of care needed throughout the stages of dementia are staggering.

Second Fact: Most People with Dementia are Not Living in Nursing Homes

A second fact about dementia caregiving is that most people with dementia are not living in a nursing home or assisted living but rather with a family member. Most Americans aged 65 or more live in the community, with only about 4.5 percent (roughly 1.5 million) of older Americans living in nursing homes and 2 percent (1 million) in assisted living facilities, according to the National Institutes of Health (NIH). These home care providers are more than two-thirds of women (67 percent), and more than one-third of these are daughters.

Third Fact: Care Requirements are Needed 24/7

Dementia, in particular Alzheimer’s, is the most expensive disease in America, costing more than heart disease and cancer. This third fact is unsurprising as care requirements are often needed 24/7 for years. The Alzheimer’s Association (alz.org) Fact Sheet reports that in 2020 caring for those with Alzheimer’s and other dementias cost American society an estimated 305 billion dollars. While much of this cost is born through Medicare and Medicaid spending, for caregivers, there is still an out-of-pocket expense that is nearly twice that of caregivers providing care for other conditions. Caregiver payouts can include medical care, personal care, respite care, household expenses, and more.

Additionally, the rate of progression of dementia disease varies widely. On average, a person with Alzheimer’s will live between three to eleven years post-diagnosis. Yet there are some cases where patients survive twenty or more years. Typically, a caregiver for a loved one with dementia will provide care one to four years longer on average than caregivers of other conditions.

Fourth Fact: Dementia Caregivers Work Multiple Hours a Week

The majority of these dementia caregivers are still working in formal employment. The fourth fact is 60 percent of dementia caregivers are working about 35 hours a week. Dementia caregivers are pushed beyond normal limits to provide a loved one’s care nearly 24/7 while still maintaining roughly full-time work. Since an average dementia caregiver spends over eleven thousand dollars a year out-of-pocket providing care, there is little wonder about the necessity of almost full-time employment.

Fifth Fact: Dementia Caregivers Tend to Experience Stress and Anxiety

Finally, the fifth fact is that dementia caregivers suffer higher rates of stress, anxiety, and depression than caregivers tending to other medical problems because of their enormous workload and responsibility. Dementia caregivers also experience more health problems than those caring for other medical diagnoses. It is easy to understand this is the case due to the high-level of caregiving, nearly full-time work, and expenditures that are expected of them.

These five facts about dementia caregiving outline the need for caregiver resources and encouragement. Dementia care providers must tend to themselves during their journey of caregiving to persevere. If you know a dementia caregiver or have one in your family, consider what they go through as it is profound. Listen to their stories. Ensure they receive education about the best ways to approach their intense workload and help them identify national and local resources. Community support and understanding are essential for success in a dementia caregiver’s journey.

If you or a loved one has been diagnosed with dementia, we can help navigate how to find appropriate care, how to pay for it, and how to protect your home and savings. We welcome the opportunity to talk with you further, please contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss how we can help you with your planning needs.

What an Elder Law Attorneys Do For You or a Loved One

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According to the US Census Bureau, more than 51 million Americans are currently aged 65 or older, and the number is steadily increasing while medical and technological advancements are allowing seniors to live longer and better lives than ever before. The expanding needs of the US aging population are contributing to an increase in federal government senior assistance program complexity and availability. Every senior has a unique set of circumstances that set parameters to navigate a successful aging plan, and the best way to determine what your plan should be is to retain the counsel of an elder law attorney.

How can an elder law attorney assist you? An elder law attorney provides overarching coordination for the financial, legal, and health care decisions that seniors face. Finding and paying for long term care is something that many seniors and their family members fail to plan for, which can result in running out of money or not being able to secure appropriate care. Seniors or their families should seek legal assistance well before there is a need for long-term care of a loved one to plan for what type of long term care is desired and how it will be paid for. While an elder law attorney cannot be a specialist in all facets of a seniors plan for aging, they work in conjunction with other specialists when specific expertise is required.

Elder law attorneys can facilitate the establishment of a medical power of attorney, advanced health care directives in the case of dementia, or aiding in the selection process of the right long-term care facility and assisting in structuring the financial resources that cover the cost of that care. Those resources may include maintaining eligibility for Medicaid or Veterans’ benefits while protecting the senior’s assets for themselves and their legacy.

Elder law attorneys often assist with guardianships if a senior is no longer capable of making responsible and informed decisions regarding their health, living, and financial affairs, and no one has been designated to do so. Guardianships are normally a last resort, as they are costly, require court involvement for the lifetime of the incapacitated person, and a stranger could be appointed to oversee the incapacitated person’s finances. Ideally, a senior will have proper legal documents in place to avoid a guardianship, but unfortunately, this isn’t always the case.

A properly drafted estate or long term care plan can help avoid a guardianship, as the estate planning documents make sure there are proper agents named to handle financial and medical decisions in the event you or a loved one can no longer make those decisions. A properly drafted estate or long term care plan will also address how long term care will be paid for, and whether assistance with government benefits is necessary.

Identifying the right elder law attorney is essential for a senior, their future, and the future of their legacy. Typical questions to consider include: how long the attorney has specifically practiced elder law, if they have a particular specialty such as veteran’s benefits, Medicaid, estate planning, or probate expertise. You should also seek an elder law attorney whose practice is dedicated to elder law as this area of law is often changing and it is important to have an attorney who is on top of the latest rule changes.

Selecting the right elder law attorney for your personal needs or those of a loved one will make a significant impact on your plan for successful aging. Start well in advance of the time you or your family anticipates the need for your long-term care. If we can help you or a loved one with your elder law needs. Please contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss how we can help.

The Unfortunate Increase of Elder Abuse During the Pandemic

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Whether at home or in a long-term care facility, America’s elderly are facing increasing incidents of mistreatment and abuse as social isolation during the pandemic creates more vulnerabilities. Stay-at-home guidelines isolate seniors from the systems that can protect them like medical providers, congregations, extended family, and senior centers. The high rate of coronavirus deaths for those Americans 70 and older increases fear and their dependency on those who might seek to take advantage of them. Sadly, most of these abusers are family members, such as an adult child or spouse, followed by caregivers or staff in a long-term care facility.

The Center for Disease Control and Prevention (CDC) lists four common types of elder abuse: physical, sexual, emotional, psychological, and neglect and financial abuse. Many incidents of elder abuse, neglect, and exploitation are underreported, especially during social isolation. According to a PBS report, Paul Caccamise, the vice president for program at Lifespan, Rochester, NY, says that the stream of calls reporting abuse is lower than usual. Yet, elder abuse has not gone away during the pandemic. Many referrals of abuse to Lifespan come from home care agencies, physicians, or hospitals, reporting suspected signs of abuse. Now that many older Americans are avoiding interactions with doctors and hospitals, the monitoring function is no longer available. Similarly, for those elderly in long-term care facilities, family members are no longer allowed direct access to check on the welfare of their loved ones.

This situation is not exclusive to New York. Across the country, the number of reports of elder abuse is decreasing during the coronavirus pandemic. The Minnesota Elder Justice Center’s executive director Amanda Vickstrom understands that although the quantity of cases is down, the amount of help our elder Americans need is up. About the disparity in case reports versus senior needs, Vickstrom states, “It doesn’t tell me that suddenly we’ve reduced elder abuse. It tells me that people are unable to reach out for help.”

Other support groups for the elderly like the National Clearinghouse on Abuse in Later Life (NCALL) are seeing similar trends. NCALL founder Bonnie Brandl says, “Abusers are using the threat of the virus and the isolation to provide misinformation to people.” Isolated seniors can fall prey to threats of being visited by a caregiver who may have been exposed to the coronavirus or sent to a nursing home where COVID-19 death rates are disproportionately high.

Caregiver promises to keep a senior safe if they hand over checks or other assets during this pandemic is not uncommon as many Americans have lost their jobs or have reduced hours of income and are facing financially tough times. If the senior lives with an abuser, the situation can become desperate as abusers can threaten to hurt or manipulate the senior who, in isolation, has little confidence to seek outside help. The coronavirus pandemic, which already disproportionately impacts older people’s health, makes them more vulnerable to abandonment, neglect, financial, emotional, sexual, and physical abuse.

The increase of seniors’ dependency on their caretakers at home and staff in long-term care facilities can incentivize abusers to target these older adults. Many seniors are targeted as they have resources saved, consistent monthly incomes from investment sources, or Social Security benefits. Desperate for their health and safety, many seniors will turn over their money, hoping that it will be key to their survival. There are also thousands of reports of scam artists offering bogus or nonexistent free home test kits or fake cures, posing as counterfeit charities, or preying on other virus-related fears to gain personal information or money.

If you have a senior family member who is socially isolated due to COVID-19, it is crucial to stay engaged with them to prevent their mistreatment. There are programs available that help those who face isolation to stay connected. AARP and the Tennessee Commission on Aging and Disability have programs that provide weekly phone checks provided by vetted volunteers who can spot trouble signs. There are other nonprofits such as FiftyForward, Senior Ride Nashville, Eras Senior Network of Wisconsin, and many others that check to see that seniors have proper resources during the pandemic such as food and medication. Volunteers will also address the emotional needs seniors have during isolation. For many seniors, it will be the only conversation they will have that day. Check with your community and see how you can best protect your senior during the social isolation and vulnerable times of the COVID-19 pandemic.

If you have questions or would like to discuss your particular situation with us, please don’t hesitate to reach out. Please contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss how we can help you with your legal needs.