VA Increases Pension Benefit Rates for 2019

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Veterans Pension Benefits have been given a Cost-of-Living-Adjustment for 2019.

Basic Improved Pension Rates for 2019

The Basic Improved Pension is for wartime veterans that are 65 years old or disabled. Based on the veteran’s finances, a single veteran can receive up to $1127 per month or $13,526 annually. A veteran with one dependent receives up to $1476 ($17,233 annually), and a veteran’s widow can receive up to $755 per month ($9,072 annually).

Veterans Housebound Pension Benefits for 2019

If a wartime veteran is eligible for housebound pension benefits, he or she can receive up to $1,378 per month ($16,533 annually). If the veteran has a dependent, then the amount increases to $1,726 per month ($20,723 annually). Widows under this benefit will receive $923 per month ($11,085 annually).

Veterans Aid & Attendance Benefits for 2019

For a wartime veteran to receive the Aid & Attendance level of benefits, he or she must general need assistance with two or more activities of daily living. Once qualified, the single veteran can receive up to $1,880 per month ($22,573 per year). With a dependent, the veteran will be entitled up to $2,230 per month ($26,763 per year). Widows at this level will receive up to $1,209 monthly ($14,507 per year).

Ff we can be of assistance in estate planning regarding your or your loved-one’s eligibility for VA Pension benefits, please give us a call.

Add Goff, VA Accredited Elder Law Attorney.

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VA Penalizes Veterans With New Rules — Making Lemonade Out of Lemons

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VA Pension Benefits are cash payments available to some wartime Veterans and their surviving spouses who are disabled and/or have additional medical needs. The Department of Veterans Affairs (VA)  recently set forth new eligibility requirements for applying. Those new rules went into effect October 18, 2018.   Although the rule changes penalize veterans by making eligibility and the concomitant estate planning more difficult, we are nonetheless taking an optimistic approach. We intend to make lemonade out of the lemons our veterans have been served.

VA Pension benefits are “needs-based” benefits. Before these new rules were made, the VA offered little guidance on how they determined whether an applicant was “in need” of the benefits.  There were vague definitions and limited explanations of who would qualify. Thish led to confusion among applicants and inconsistent determinations of eligibility.  However, one good thing that has come out of the change is that there are now clear rules for eligibility. Thus, elder law VA accredited attorneys can better advise their clients and their families. This upholds the integrity and consistency of the pension program.

In addition to the minimum active duty, wartime service, and age or disability requirements, there is now a bright-line rule regarding the net worth of an applicant. This amount is currently set at $123,600.00 (for 2018). The amount will increase annually. When calculating the net worth amount, assets are combined with annual income. (The applicant’s home is usually not included in this calculation.) Out-of-pocket medical expenses can reduce income, thus helping applicants qualify for the highest level of benefit.  Nonetheless, if the claimant’s net worth exceeds this threshold, an elder law lawyer can often utilize certain legal strategies to get the calculation within the allowed range.

Another issue with the new rules is that any asset that was transferred for less than fair market value during the 36-month period immediately preceding the application will result in a penalty of ineligibility of up to five years.  Of course, there are exceptions to this rule, and elder law attorneys, accredited by the VA, can often employ strategies to legally cure or avoid the penalty.

As the rules were aimed at stopping pension poachers (financial advisors and others going around attempting to sell annuities to veterans to try to qualify them for pension benefits), there are other provisions of the new rules that apply to annuities and other financial instruments. Accordingly, before investing in an annuity or other asset that produces income, be sure to contact our office to discuss the possible ramifications of that investment on VA pension benefits.

Although the new rules make it more difficult for many wartime veterans to qualify for the benefits they deserve, the rules do provide more certainty.  Give us a call if you would like to talk further about the changes, or to explore whether you or a loved one may qualify. We are here to serve those who have served.

Add Goff, VA Accredited Elder Law Attorney

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Financial Benefits for Veterans and their Survivors

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If you are a veteran, or if you are caring for one, it is important that you understand the many veterans’ benefits programs available through the Department of Veterans Affairs (VA). Financial support is often available to a a veteran, his or her spouse, veteran’s or their survivors based on the veteran’s current age, physical condition, or financial situation.

Even if you or the veteran under your care for qualifies for Medicare there can be advantages to choosing VA care for healthcare coverage. For example, Medicare does not cover physical exams and other preventative care, dental care, long-term in-home care or long-term nursing home residential care. The costs of VA co-pays and deductibles are generally lower than Medicare, and that includes prescription drugs. Some veterans can qualify for both Medicare and VA health coverage which can in some circumstances be extended to family members as well.  This is something that you should explore. 

The VA also offers financial benefits through “service-connected disabilities.” These disabilities can include physical, mental, or emotional conditions which limit or preclude a veteran from performing various everyday activities deemed normal. A veteran does not have to have become disabled while in the military to qualify for these benefits. Service-connected disabilities can begin during military service and only start to show as the veteran ages. The key element is that the disabling condition was caused during or aggravated by the veteran’s military service.

A condition that becomes disabling later in life can make a veteran eligible for a monthly disability compensation payment. The VA will assign a rating to the disabling condition beginning at 10 percent and up to 100 percent, in 10 percent increments. The lowest rating at 10 percent in 2018 pays $117 per month while the highest rating at 100 percent pays $2,527 a month. Veterans who are housebound or require “aid and attendance” (regular in-home care) can receive even more money per month. Older veterans with a 30 percent or higher rating can also have their spouse qualify for additional monthly benefits.

Having a service-connected disability also can make a veteran eligible  for certain  loans or grants to modify a home through the Specially Adapted Housing (SAH) grants program. This can be the veteran’s home or the home of a family member where the veteran lives. Special car modifications are available through a similar program. The VA also offers several types of loans and loan guarantees to aid veterans in the purchase of or refinancing of a home, townhome, or condominium.

If a veteran (65 or older) meets certain financial requirements, has had 90 or more active days of military service, and at least one of those days during a period of war (World War II, Korean War, Vietnam War and the Persian Gulf War), he or she may qualify for a VA pension even if the veteran was not in combat. If a wartime veteran or a surviving spouse requires care on a regular basis, the amount paid can be over $2,000 per month in tax-free income. However, there are specific financial and medical requirements for this benefit. The rules for qualifying for such a VA pension benefit are changing on October 18, 2018, so if you or someone you know is a wartime Veteran or the surviving spouse of a wartime Veteran, contact us right away to see if you could qualify for this important benefit before the qualification rules tighten.

If you are a wartime veteran or the surviving spouse of one, we would be happy to talk to you about your situation and help you understand your planning options as they relate to your qualification for a VA Service Pension. Add Goff is a VA accredited attorney, and  we look forward to hearing from you! Please help us get the word out by clicking one of the social media buttons below!

Trump Signs Law Encouraging Reporting of Financial Elder Abuse

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Financial elder abuse is a growing problem in our country. Financial institutions are often the first to witness elderly clients making unusual transactions that may be linked to a scam. Accordingly, on May 24, 2018, President Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act into law . That act contains a section  which is designed to encourage the reporting of elder (age 65 and older) financial abuse witnessed by financial institutions. Although the new law does not require that the institutions report financial abuse directed towards senior citizens, it does give them an incentive to do so. The new law provides immunity from lawsuits alleging elder financial abuse if the financial institution reports it to state or federal law enforcement agents. Law enforcement has an obligation to investigate once a claim is made. To qualify for immunity, a financial institution has to create and administer a training program for employees to teach the employees how to spot elder financial abuse. 

As good of an idea this is, it is by no means a novel concept.  The new law was inspired by Maine’s Senior$afe program. Senior$afe encourages state regulators, financial institutions, and legal organizations to work together on educating banking and credit union workers to spot and stop elder financial abuse. When elders have a trusted third party to talk to about their finances, they are less likely to fall victim to elder financial abuse, and this program has found success in reducing the amount of elders who fall victim to these scams.

Moreover, in 2016, the Consumer Financial Protection Bureau (CFPB) issued a report stating how reporting elder financial abuse has already become a respected norm in hundreds of counties around the country. The report provides that these counties created voluntary community-based partnerships to prevent, detect, and respond to elder financial abuse situations. These partnerships often include entities such as financial institutions, adult protective services, and law enforcement. The CFPB found that these partnerships can be incredibly effective in protecting their elderly citizens. What’s more, in states without elder financial abuse protection laws, these community efforts have created a sense of responsibility within these counties to protect their most vulnerable from financial scams, without reward or threat of prosecution against financial institutions. Following this report, the CFPB released a resource guide and best practices to help and encourage other counties across the US to adopt their own protection partnerships. Among other recommendations, the CFPB encourages communities to directly include law enforcement and financial institutions in these partnerships.  Also, the CFPB recommends that partnerships which serve diverse areas engage with groups that are already entrenched in the community, such as service groups or faith-based organizations.

Protecting our most vulnerable is important to providing a safe and prosperous society for all citizens. These community-based partnerships and the Economic Growth, Regulatory Relief, and Consumer Protection Act are both steps in the right direction towards protecting those who aren’t able to protect themselves. If you suspect financial elder abuse, first report it to law enforcement as soon as possible. If you suspect that someone is misusing a power of attorney to take advantage of a senior citizen, then please contact Add Goff, Elder Law Attorney.  

Not Forgotten

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I can take no credit for the following story. It comes straight from a daily devotional entitled “Not Forgotten” in The Upper Room. As a lawyer who specializes in Elder Law, I see how dementia affects families on a daily basis. Moreover, I have witnessed the effects of dementia on members of my own family. Accordingly, I felt compelled to post it, unedited:

Can a mother forget the baby at her breast and have no compassion on the child she has borne? Though she may forget, I will not forget you! See, I have engraved you on the palms of my hands. Isaiah 49:15-16.

A few years ago, as my mother started to suffer from dementia, I lived with her and served as her caregiver. Even though she was forgetting many things, she retained old memories including the names of her nine children. She still recognized family members and knew me most of the time. However, there were instances when she would call me by another name or think I was someone else. The first time she called me by my cousin’s name I thought that my name had just slipped her mind. However, she began to call me by cousin’s name when asking other family members about me when I was away from home. One time she asked me, “How is your mother?” I was stunned and could not answer. Another time, my mother asked my older sister, “Who is this woman who lives with me?”

Watching my mother lose her mental capacities was a painful experience that made me feel abandoned and forgotten. But then I realized at times we all feel that way. When I feel forgotten, I take comfort in todays quoted scripture, knowing that God does not forget my mother or me and knows each of our names.

Prayer: Dear Lord, when we feel forgotten and abandoned, help us remember your great love for us…Maria Victoria P. Creel (Alabama). [Source: The Upper Room, January-February 2018. Page 44 (February 1, 2018).]

May we all have the faith of this author. Please pray for those families dealing with dementia.

If you need help navigating life’s challenges, contact Ruston attorney Add Goff for help with long-term care planning (including Medicaid planning), VA pension planning, interdictions, powers of attorney, and estate planning.

Medicare, Medicaid, and Alphabet Soup

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Many people confuse Medicare and Medicaid. And, why not? They are spelled almost the same, and they both are government programs that have to do with health care. However, they are very, very different, and a proper understanding of the basics is necessary to make sure that you or your loved one can does not misstep when making important decisions concerning health care or long-term care. Even if you are not in that situation right now, it is never too early to gain a basic awareness and understanding of these programs that are so important to older Americans and their loved ones. In this piece, I will attempt to help you navigate through some of the basics.

Louisiana Medicaid

Medicaid is a health care assistance program. Its guidelines (and substantial funding) come from the federal government, but it is administered by the state.  Each state’s program is different, but must work within the guidelines that the federal government provides.

Medicaid eligibility is based on a person’s income and assets and, generally speaking, is available to people with disabilities, people over age 65, children (and the parents of eligible children), and pregnant women.  Moreover, Louisiana Medicaid can also pay for long-term nursing home care.  With proper planning by a Louisiana elder law attorney, seniors can become qualified such that they have a co-pay based on their income for the nursing home care, and Medicaid will cover the rest.  Medicare does NOT pay for long-term care. There are extensive regulations and laws that govern who can qualify for Medicaid, so it is important to talk with a lawyer skilled in this field regarding you or a loved one becoming eligible.

Medicare

Medicare is a health insurance program funded by and administered by the federal government.  This means that it is uniform from state to state.  As with any government program, a person must meet certain requirements before receiving Medicare. To qualify for Medicare benefits at least 65 years old or have a severe disability. To qualifiy at age 65, a person must be a United States citizen or a permanent legal resident that has lived here for at least five consecutive years. Additionally, he or she must have worked long enough to be eligible for Social Security retirement benefits (regardless of whether he or she has started receiving those benefits).  However, in order for a disabled person under the age of 65 to receive Medicare, he or she must have received Social Security Disability Insurance (SSDI) for two years.  (SSDI is not the same as SSI, which is Supplemental Security Income, a means-based program.) If a person meets Medicare’s eligibility requirements, her or she can receive Medicare without regard to his or her income or assets. Costs for Medicare are based on the recipient’s work history. This means that costs are determined by the amount of time a person paid Medicare taxes. These costs like all insurance include premiums, copays, and prescriptions.

Another thing that can be confusing about Medicare is its so-called alphabet soup of “plans.” We all hear advertisements referring to Parts A, B, C, D.  Although I will explain these in detail in a later piece, I will provide you with a quick summary. Part A works like insurance for hospitalization. Part B works like insurance for medical. Part D is an option plan that provides prescription drug coverage. Parts A and B are covered in Original Medicare offered by the government. Part C is often called the Medicare Advantage Plan. This is a private health plan. The Medicare Advantage Plan or Medicare Part C plan are required to include the same coverage as Original Medicare but usually also include Part D as well. Additionally, there are other plans, such as Part F. Part F, sometimes referred to as Medigap, is supplemental insurance that covers those things that Medicare does not. It is important to do your homework on these plans to find what works best and is most cost effective for you.

Can You Qualify for Both Medicare and Medicaid?

In some circumstances, one can be eligible for both Medicaid and Medicare.  In this situation, the two programs can work together. For example, Full Medicaid benefits can cover the costs of Medicare deductibles and cover the 20% of costs not covered by Medicare. (Medicare costs include premiums, copays, and deductibles.) Medicaid may also cover the costs of premiums for Medicare Part A and/or Part B.)

If you are interested in learning more about how you or a loved one may be able to qualify for having Medicaid defer some or all of your or your loved one’s long-term care nursing home costs, please contact Ruston, Louisiana elder law attorney Add Goff.

National Estate Planning Week

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It’s National Estate Planning Awareness Week — Food for Thought. It is not just for the wealthy. Middle class folks need to be aware of the need for preplanning also.

In 2008, Congress declared the third week in October as National Estate Planning Awareness Week. There are a few common misconceptions about the need for estate plans, so here is some food for thought from a Ruston elder law and estate law attorney. First, the most frequent misconception we hear is “I’m too young.” In fact, it’s never too early. Tragedy can strike at any minute, and responsible planning is one of the best gifts you can give your loved ones during that tough time. Hope and pray for the best, but plan for the worst. As the Boy Scouts say: “Be prepared.” 

Second, elder care plans are not just for the rich. In today’s economy, very few people can afford to pay several thousand dollars a month for long term care. Thus, planning is probably more important for middle-income Americans than anyone else.

Finally, many people are content with the State’s rules deciding who gets what after a death. However, Murphy usually shows up at the worst of times. What happens if there is a disability of a loved one? Probate without planning can result in a disabled grandchild’s losing government healthcare benefits. What happens if one of your descendants becomes the victim of a disease such as substance abuse? Proper planning can ensure that the money for which you’ve worked so hard will not be wasted away on drug dealers. Hopefully, none of this will come to pass. This is merely food for thought. As the old saying goes, “An ounce of prevention is worth a pound of cure.”

An Elder Law attorney can help you decide what estate plan is right for you and your family so you don’t have to wait until a crisis occurs or a succession is opened. Call us. We can help.

Debt Collection Scam hits Elderly in Ruston Area!

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Scams against the elderly are on the rise. Even the elderly in the Ruston area are being targeted by unscrupulous debt collectors resulting in the loss of thousands of dollars.  Recently, an elderly client, Mr. Smith (not his real name) was terrorized by an out-of-state debt buyer. A debt buyer is a company that buys old, often uncollectible debts from the original creditor for pennies on the dollar.   Mr. Smith, a man in his 80s, lost his wife to cancer nearly 20 years ago.  While she was ill, the couple ran up a large credit card bill for living expenses, and in the end the client was unable to pay them.  The debts were written-off by the credit card company as uncollectible many years ago.  At some point a debt buyer purchased the account.

Last month, 18 years later, and long after the statute of limitations on the debt had run, Mr. Smith received a phone call from the debt buyer.  The caller threatened to take Mr. Smith’s bank account and to garnish his social security, his only income, if he didn’t comply with the demand for immediate payment. Afraid he would lose everything, Mr. Smith agreed to pay $4000 that day, and make monthly payments against the remaining balance. Mr. Smith gave the collector his credit card number and access to other financial information.  A few days later, Mr. Smith began to wonder if he had done the right thing.  He contacted his credit card company, but the credit card company refused to reverse the $4000 charges.  Devastated and in tears, Mr. Smith contacted the Elder Care Law Attorneys at Goff and Goff.  Bank accounts cannot be garnished without first proving the validity of the debt in court and obtaining a judgment. Social security is not subject to garnishment for bad credit card debts.  The debt collector lied to scare this vulnerable senior into paying a debt that was no longer due.

The attorneys at Goff and Goff were able to get the client’s money back quickly, but only because he realized something wasn’t right and took action.  PLEASE alert your elderly friends and relatives to be weary of these types of calls!  If they have already been scammed, they need to take action immediately.  Call an attorney.  If you call Goff and Goff, we would be honored to help.  We practice in the areas of Elder Law, Family Law, Wills and Estates, Successions, Personal Injury and Criminal Law