Are You a Family Caregiver? New Bill Seeks to Lower Costs

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Elderly woman with dementia smiles with middle-aged caregiver daughter at home.Recently proposed legislation seeks to offer financial relief for unpaid family caregivers. Introduced in November 2023, the Lowering Costs for Caregivers Act of 2023 is the result of a bipartisan effort to lessen the costs of family caregiving. The American Association of Retired Persons (AARP) has also endorsed the bill.

If the act becomes law, it would amend the Internal Revenue Code to allow medical bills that you pay for your parents to count as qualifying medical expenses for health flexible spending arrangements (FSAs) or health reimbursement arrangements (HRAs). This would include health expenses for one’s parents as well as parents-in-law.

Flexible Spending Accounts

Flexible spending accounts and health reimbursement accounts allow individuals to set aside pre-tax money to pay for qualifying medical expenses. For HRAs, only employers provide funding, while both employers and employees can fund FSAs.

Under the current law, the funds can only go to the account holder’s medical expenses, as well as expenses for their spouses and dependents. It does not allow people to use their accounts to pay for their parents’ medical care.

By allowing use of FSAs or HRAs for parents’ health expenses, the Lowering Costs for Caregivers Act aims to help reduce some of the costs of caregiving.

The Financial Cost of Caregiving

The proposed legislation addresses the ever-increasing costs facing the 38 million unpaid family caregivers in the United States.

One 2021 survey by AARP revealed the economic toll of caregiving. Unpaid family caregivers spend an average of $7,200 per year on caregiving expenses. Over three-quarters of caregivers report incurring routine out-of-pocket costs. Caregiving-related spending consumes more than a quarter of unpaid caregivers’ annual income.

When family caregivers provide financial support for their aging parents, more than half of these funds typically goes to housing. Housing expenses that caregivers help with include rent, mortgage payments, and assisted living fees.

In addition, adult children serving as caregivers might help cover costs associated with modifying parts of their parents’ home. Older individuals who develop mobility challenges often need changes to their homes to continue living there safely. For example, someone using a wheelchair may need ramps. Others may need bars installed on the walls and in showers to help prevent slips and falls.

Medical costs are also significant. The caregivers in AARP’s survey spent an average of more than $1,200 annually on health care expenses, comprising one-fifth of their spending. They supplied direct payments to health care providers, hospitals, and therapists. They also paid for medical equipment and devices, in-home care, and adult day care programs.

Those who must balance working full- or part-time jobs with caregiving – roughly six in 10 caregivers – faced increased financial strain. When caregivers struggled to manage employment and their duties at home, the yearly average they spent on caregiving increased to $10,525.

How Caregivers Can Reduce Expenses

While the financial cost of caregiving is often substantial, several strategies can help you save money as a caregiver.

By claiming a parent as a dependent, you can receive a credit on your income taxes. For 2023, the maximum tax credit is $500. To be eligible for the credit, your parent, step-parent, or in-law must not make more than $4,700. You must provide more than half of the financial support for the parent in a calendar year. So, you could qualify if you are the primary caregiver and source of financial support.

Another strategy to reduce the economic toll of caregiving is helping your loved one apply for federal and state benefits, such as Supplemental Security Income (SSI). SSI is available to people with limited income and resources who have a disability, are blind, or are 65 and older. Participants receive a monthly benefit, which helps to cover such costs as food and shelter. If your aging loved one lives with you and receives SSI, you could charge them rent, which could help cover your household expenses.

Multi-generational living can also reduce costs for your family. Consider having a loved one who lives in assisted living or alone move in with you. This could reduce your loved one’s housing costs and your loved one could contribute to your household expenses.

Finally, when strategizing how to reduce the financial weight of caregiving, it can be extremely beneficial to have an advocate on your side. Working with your elder law attorney. They can help you create a successful and manageable caregiving plan for your loved one.

2024 Standard Protections for Spouses of Medicaid Applicants

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Senior man touches the shoulder of his senior wife who is in a wheelchair.Each fall, the Centers for Medicare & Medicaid Services (CMS) renews the federal guidelines that seek to protect individuals whose spouses are applying for or receiving Medicaid long-term care benefits.

These protections, known as the Spousal Impoverishment Standards, help to support the financial well-being of seniors who continue residing at home while their spouse on Medicaid lives in a long-term care facility, such as a nursing home.

Qualifying for Medicaid Long-Term Care Benefits

Long-term care is prohibitively expensive for many, so a large share of adults aged 65 and older rely on Medicaid to help cover the costs.

To qualify for Medicaid long-term care benefits, however, one must generally have very limited resources. In most states, the asset limit is set at $2,000. (Certain assets, such as personal belongings and the applicant’s primary residence, do not count toward this limit.) The applicant’s income typically goes to the nursing home as well, with some exceptions.

So, what happens if a person who qualifies for Medicaid long-term care is married? How can their healthy spouse afford to remain on their own at home? This is where the Spousal Impoverishment guidelines help.

2024 Spousal Impoverishment Figures

Note that most of the latest figures, outlined below, will go into effect January 1, 2024.

Community Spouse Resource Allowance (CSRA)

A spouse who continues living at home while their partner receives long-term care coverage through Medicaid can keep up to $154,140 in assets starting in 2024.

The healthy spouse, or so-called “community spouse” then has a minimum amount of assets to live on without rendering their Medicaid spouse ineligible for benefits. This special protection is known as the Community Spouse Resource Allowance (CSRA). The maximum CSRA generally rises each year; in 2023, it was $148,630.

Meanwhile, according to federal law, no state can set the minimum CSRA below $30,828 as of 2024.

Monthly Maintenance Needs Allowance (MMNA)

In addition to CSRA, the federal government offers another level of protection for the community spouse: the Monthly Maintenance Needs Allowance (MMNA).

The MMNA ensures that the healthy spouse who continues to live in the couple’s home maintains a certain amount of monthly income while their partner receives their Medicaid long-term care coverage. (Learn more about the ins and outs of MMNA.)

In 2024, the maximum MMNA will be $3,853.50 (up from $3,715.50 in 2023). Again, this is the most in monthly income that the community spouse can keep while their spouse lives in a long-term care institution. If the healthy spouse does not make enough income to live on, this allowance comes from the income of the spouse on Medicaid.

Note that the minimum MMNA for 2024 can vary depending on your state. Alaska and Hawaii typically have slightly higher minimums. The federal government updates the minimum MMNA each July.

A Note on Income Cap States

Certain states have in place a Medicaid income cap. If you reside in one of these income cap states, you will not qualify for Medicaid if your income equals more than $2,829 (in 2024) – unless you have a certain type of trust in place. This trust, known to many as a Miller Trust, must hold any income you receive that is above that cap.

As of 2023, the 23 income cap states are Alabama, Alaska, Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Idaho, Iowa, Kentucky, Louisiana, Mississippi, Nevada, New Mexico, New Jersey, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, and Wyoming.

Although, Louisiana is technically a cap state, generally that type of trust is not required due to some other regulations available. Please consult with a  Louisiana Elder Law Attorney to make sure that the regulations and their exceptions can be used to give you and your family the maximum benefits and odds at eligibilty. 

Home Equity Limits

As mentioned above, Medicaid does not consider the primary home of an applicant as a countable asset, unless the applicant’s equity interest in their home is above a certain amount.

Your home equity equals your home’s value minus the sum of any loans you owe on the home. In 2024, the home equity limit is set to $713,000. (Some states choose to raise this limit to $1,071,000.)

Work With an Elder Law Attorney

Planning for Medicaid and navigating the Medicaid application process can be daunting.  Contact Ruston, Louisiana Elder Law attorney Add Goff at 318-255-1760 or info@GoffandGoffAttorneys.com. 

Access the 2024 Spousal Impoverishment Rules via the Medicaid website.

14 Essential Questions to Ask Aging Parents This Holiday

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Senior woman prepares dough for holiday meal with adult daughter.About 45 percent of adults say they plan to travel for the holidays, per The Vacationer.

With multiple generations getting together for holiday meals, gift exchanges and quality time, these annual gatherings present an opportunity to broach sensitive but important topics with your aging loved ones. By communicating with them and knowing their wishes, you can help them plan for their future.

Key Considerations in Aging

Understanding how the older adults in your life feel about certain issues – such as where they want to live and what kind of care they would like to receive as they continue to age – can help you provide appropriate support. Having these discussions can also help your loved ones reflect on their goals and consider making plans before there is a crisis.

If your family member still needs to meet with an estate planner, you can also suggest taking this step. Connect them with a qualified elder law or estate planning attorney in their area.

According to Caring.com’s 2023 Wills and Estate Planning Survey, two out of three Americans have yet to make an estate plan and do not have any estate planning documents. Such documents can include a will, power of attorney, portable medical order, or advance directive. Barriers to estate planning include procrastination and not believing one has enough assets.

Yet, while we often think of estate planning as making wills and determining who receives assets, it is an integral part of preparing for old age. It encompasses housing and long-term care, financial planning, medical care, and insurance. Creating an estate plan involves making decisions about how people would like to live and receive care as they age.

Most people could benefit from this type of planning (no matter what their age). Talking with your loved ones can be an initial step to help them develop a plan that preserves their autonomy in old age.

What to Discuss With Your Older Loved Ones

As the holidays get underway, prompt your family members to start thinking about their future. You may encourage them to consider the following topics and questions.

Housing Options

AARP reports that 77 percent of adults 50 and older want to age in place instead of moving into senior living. Yet remaining at home poses safety concerns for many families, according to the National Institute on Aging.

Older adults may eventually need help with activities of daily living (ADLs), household tasks, mobility, meals, health care, and transportation. Families may be able to provide caregiving or explore in-home services. Others may choose assisted living.

The following questions may help to spark meaningful discussions between you and your aging loved ones.

  1. Where do they want to live? Do they want to live at home as they get older, or would they prefer to reside in a senior living community?
  2. If they would like to stay at home, is the residence adaptable to any potential mobility difficulties they may face down the road?
  3. What kind of additional support might they need?
  4. Who will help with their activities of daily living and household chores such as preparing meals or cutting the grass?

Health Care Preferences

Health challenges often accompany aging. According to the National Council on Aging, 95 percent of adults 60 and older have at least one chronic condition.

As the seventh leading cause of death worldwide, dementia affects many older adults, per the World Health Organization. The National Institute of Health reports that one in seven Americans age 71 and older have dementia.

Older adults should think about and communicate their health care wishes with their families before an adverse health event occurs. The following questions can help families begin these difficult discussions.

  1. Do they have a power of attorney or living will, or are they planning to create one?
  2. What would make life continue to be worthwhile for them if they were to become frail, ill, or develop dementia?
  3. Would they want medical care to prolong their life if they have a terminal, incurable illness?
  4. If they fell ill, would they prefer to pass away at home in hospice or in a medical setting?

Personal Values

Having a clear picture of what someone would value most at the end of their life can help families provide support. Erik Erickson’s stage theory of psychosocial development suggests that older adults living in line with their personal values may feel peace, wisdom, and acceptance.

Physical and cognitive decline associated with aging can jeopardize autonomy. This is why knowing your loved ones’ values and wishes can help you more effectively support their independence. They should have a plan in place for end-of-life decisions so that, if necessary, you or another surrogate decision-maker can make choices that reflect their wishes.

These questions present a good starting point.

  1. What does your loved one believe they will come to value most as they grow older?
  2. Is religious or community involvement important?
  3. What do they define as a good life?
  4. What do they feel would be most essential to them in their final years?
  5. What kind of funeral or memorial service would they envision for themselves?
  6. Have they thought about passing certain sentimental items, such as photo albums and jewelry, to certain family members?

Consult With Your Estate Planning Attorney

As you and your loved ones work together to begin addressing these topics, have them consult with your estate planning attorney. They can help create a framework for autonomy in older age, working with the adult to develop a plan.  Estate Planning lawyer Add Goff is here to help. He can be contacted at 318-255-1760 or info@GoffandGoffAttorneys.com. 

SSI and SSDI Recipients to Receive Boost in 2024 Payouts

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Social Security Disability Benefits written down next to pen and blue piggy bank.The announcement about the cost-of-living adjustment (COLA) for 2024 is now out, and it’s good news for disability benefits recipients. Those who rely on Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) will soon see a 3.2 percent increase in their monthly payments.

What Is SSI?

SSI stands for Supplemental Security Income; it is a public benefits program that provides financial support for people with disabilities with very limited income, as well as low-income seniors. The criteria to qualify for SSI are specific and quite restrictive. In most cases, an SSI applicant must have no more than $2,000 in resources to be eligible for assistance.

Note that in addition to the federal government’s SSI benefit payments, certain states do give an additional supplement to these beneficiaries.

How Will SSI Be Affected?

According to a Social Security Administration news release, the approximately 7.5 million people who currently receive SSI will see a 3.2 percent boost in their benefits starting in late 2023.

The maximum payout for 2024 will rise to $943 per month (up from $914 per month). For individuals on SSI with an eligible spouse, the maximum monthly payments will total $1,415 (up from $1,371 per month). This change will go into effect for SSI recipients beginning on December 29, 2023.

The 3.2 percent boost is not as significant as the increase seen in 2023, which was nearly 9 percent.

What Is SSDI?

Social Security Disability Insurance (SSDI) is a federal program that benefits people with disabilities regardless of what their assets are. To qualify, an individual must still fulfill certain requirements. For example, applicants must prove they have a disability that meets the Social Security Administration’s strict definition of this term.

SSDI Increases in 2024

Thanks to the latest cost-of-living adjustment, individuals receiving SSDI will see their average monthly benefits rise by about $48 (with average estimated payouts of $1,537 per month, up from $1,489 in 2023).

The Social Security Administration typically announces a new COLA, which is calculated based on the consumer price index, each fall. Beginning in December 2023, the agency will then notify recipients of adjustments to their monthly payments via snail mail. Find out sooner what your adjustments will look like by visiting your My Social Security account.

Access the Social Security Administration’s 2024 COLA fact sheet for additional information about these changes.

Combat Sleep Problems as You Age

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We often hear from older friends and family – or perhaps from yourself – “I had a terrible sleep last night.” Sleep patterns tend to change, and that is perfectly normal as we grow older. Research shows that older adults may require less sleep than in younger years as they typically experience decreased physical activity.

However, not all changes in sleep patterns are normal. Some sleep problems manifest due to underlying and sometimes undiagnosed medical problems. Arthritis and osteoporosis, digestive issues, incontinence, medication side effects, COPD, even a long-term effect of COVID-19 can affect sleeping quality. It is important to address and manage these conditions to improve sleep because lack of proper rest may lead to irritability, depressions, high blood pressure, memory loss, and decreased alertness that can lead to unintentional falls or car accidents.

Understanding Aging and Sleep Issues 

If you experience insomnia often and feel sleepy during the day, take stock of your lifestyle. Get more physical exercise, improve your sleep environment, put away digital devices and television earlier, and avoid caffeine and alcohol contributing to better sleep patterns. If you experience significant anxiety, consult your doctor as medication may be necessary. The blog Right at Home has suggestions for promoting better sleep at 10 Tips for Improving Sleep Quality. 

Sleep apnea, snoring, and other forms of sleep-related breathing disorders (SRBD) are a spectrum of breathing problems while asleep. Sleep apnea is common, usually appearing in middle age, and is associated with other health-related issues. The frequent pausing of breath, most commonly obstructive sleep apnea, is associated with snoring. Experiencing SRBD is associated with poor health problems and outcomes such as coronary artery disease, heart failure, stroke, and an increase in mortality.

During sleep, it is normal to shift position. However, abnormal movements are known as Sleep-related movement disorder (SRMD) and may significantly disturb your sleep or your partner’s. Restless leg syndrome is the frequent moving of limbs to quell unpleasant sensations in the legs. Clenching the jaw or grinding teeth during sleep is called bruxism and can increase blood pressure. These movement disorders often accompany other sleep-related issues. A leg cramp is not an SRMD. Experiencing sleep-related leg cramping is often idiopathic or can be related to a deficiency in vitamins or minerals.

A pattern of daytime napping becomes more prevalent in older adults but can lead to nighttime sleep disruption. However, if a day is unusually active, a nap may be appropriate and beneficial. Many cultures consider napping a routine daily activity; however, these cultures typically keep different hours than most Americans. Daytime napping can occur because of a partner’s restless, unhealthy sleeping patterns disrupting their sleep. Using earplugs or moving into a different room are ways to address second-hand sleep problems. 

If you provide care for a spouse or older relative with dementia problems, you may notice sundown syndrome. A person with dementia may exhibit restlessness, agitation and be hyper awake in the late afternoon and early evening. The individual may resist going to bed and refuse to stay in bed, getting up repeatedly throughout the night, increasing the chance of injury and exhausting their caregiver. Sundown syndrome may indicate that it is time to move the individual with dementia to a full-time monitored care facility.

Sleep disorders due to Alzheimer’s disease and other dementias can pose special considerations as brain deterioration affects how the brain sleeps. Less time in deep sleep and more awake time during the night causes issues with the circadian rhythm. And while lack of sleep can worsen thinking and behavior in everyone, for those with dementia, these consequences are all the more serious with an increase in irrational and emotional instability, which already presents a problem.

The Importance of Being Proactive about Sleep Issues

Make healthy sleep a priority by keeping a routine that trains your brain to release sleep hormones called melatonin at the right time. Commit to a bed and wake-up time every day and ensure your sleep environment is a restful one. Relaxing activities such as reading, listening to calm music, a warm bath, or meditation can help the body unwind from the day’s activities and promote good sleep. Be sure to power down all digital devices like tablets, computers, phones, even TVs which can suppress melatonin early in the evening hours.  Sleep problems in later years may change but should not significantly affect your rest and may indicate an underlying medical condition. 

Sleep specialists can evaluate, diagnose and offer courses of treatment for a wide variety of sleep problems. Managing medical conditions and employing good sleep guidelines can bring you healthy, restful sleep. Control the things that you can, assess your sleep quality, and make adjustments to improve your sleep experience. You will feel better, think more clearly, and make better decisions with proper rest.

We hope you enjoyed this article. Please contact our Ruston, LA office by calling us at (318) 255-1760 or schedule an appointment to discuss how we can help with your planning needs.

Methods to Finance In-Home Care

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In-home care is the preferred living arrangement for many aging seniors. However, many medical conditions and personal care needs as adults age can cause this to become more difficult due to cost. The cost of in-home care varies from place to place, but generally follows the cost of living. Places where the cost of living is lower usually have lower costs for in-home care and the opposite is also true. In areas with a higher cost of living, in-home care is generally more expensive. Another challenge of paying for in-home care is the strict limitations on using Medicare and Medicaid to pay for in-home care. However, it is possible to pay for in-home care. Let’s look at some of the options.

Medicare and Medicaid

Although these two options are more limited in the in-home care covered, there are occasions where they can be used to pay for in-home care. Medicare generally pays for in-home care services for a period of time and most often occurs for a time after a patient is discharged from a hospital or rehabilitation facility. Treatment generally would not be covered for a chronic condition. Medicaid rules vary from state to state but are often similar to Medicare. All programs cover short-term in-home care when the patient has an acute condition. Medicaid offers long-term coverage in some areas, but this is often limited to patients who are ill enough to qualify for nursing home coverage. This care must be provided by a Medicaid-certified care agency. With Medicaid, each state runs its program differently and coverage will vary from state to state. In Louisiana, for example, Medicaid would not generally cover in-home long-term care.

Reverse Mortgage

A reverse mortgage is an option for paying for in-home care. If the senior, age 62 or older, owns a home outright or owes little on the home, they can apply for a reverse mortgage. A reverse mortgage gives seniors the option of using the value of the equity in their home to get cash. The bank enforces strict rules about taxes, maintenance, homeowner’s insurance, and mortgage insurance. Therefore, it is important to do research on reverse mortgages and find a reputable bank, to lower the risk of defaulting on the reverse mortgage. Another important consideration is the length of time that care may be needed, as compared to the value of the equity. If a senior decides the reverse mortgage is a good choice for them, the cash can be used to cover the cost of in-home care.

Veteran’s Aid and Attendance Benefits

Aid and Attendance is an often-overlooked benefit available to veterans who are paying out of pocket for care. Veterans who served on active duty for 90 days, with one day during wartime, and who were honorably discharged, may be eligible for aid and attendance benefits. However, the qualification process is not easy and many veterans become frustrated when trying to do so.  As a result, the majority of veterans who may be eligible for the benefits never receive them.

Once qualified, a veteran can receive a monthly cash benefit, tax-free, to use for care. For veterans and their spouses, these benefits can be a major help in paying for in-home care. Surviving spouses of wartime veterans can also qualify for a monthly cash payment through the aid and attendance benefit.

Life Insurance

Life insurance is another possible way to pay for in-home care. If the life insurance policy is no longer needed to care for someone after death, it can be an option for paying for in-home care. A life insurance policy can be sold back to the company for a percentage of the value – usually 50 – 75%. This money can then be used to pay for in-home care. Many policies have flexibility, but some require the senior adult to be terminally ill. A policy with an Accelerated Death Benefit rider allows the policyholder to take a cash advance on the policy that is subtracted from the amount beneficiaries would receive. In this instance, the premiums are still paid and the policy still belongs to the policyholder.

Although in-home care is costly, the good news is that there are options available to help seniors pay for this care. The above are just a few options that may help seniors who wish to continue to live at home even when extra assistance is needed.

We help seniors and their loved ones find and pay for good long-term care using many of the options discussed above. We also create legal plans to protect the home and savings to make sure our clients never run out of money or options for good care. If you would like to learn more, please feel free to contact us. Please contact our Ruston, LA office by calling us at (318) 255-1760 or schedule an appointment to discuss how we can help with your long-term care needs.

How to Write a Letter of Intent For Your Special Needs Child

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Writing a letter of intent (LOI) for your special needs child can help bring them family continuity and comfort after you are gone. As a parent, the most valuable asset your child has is you and your ability to care for them. You, like no other, fully understand the nuances of your child’s coping mechanisms and what can trigger adverse outcomes. A letter of intent is meant to convey these broad personality traits as well as practical details of your child’s life so that in your absence, another family member or caretaker can make sound decisions about your child’s forward care. Don’t think a letter of intent is something to write when you get older. Parents of all ages with special needs children should have a letter of intent, review it annually, and update its contents if appropriate. Accidents and illness that may befall you are as prevalent a need to have a letter of intent as is your eventual death.

Though an LOI is not a legal document, it is one of the most important documents a parent can prepare for the future well-being of their special needs child. The letter plays a central role in your child’s special needs plan by putting your perspective on the details of their life. You can begin your letter by identifying the categories you want to address and then filling in details. There are templates of LOI available on the internet, and you might want to use one as a starting point for your letter if you feel overwhelmed and need some structure to begin.

The letter’s purpose is to guide a trustee, family member, or guardian tasked with the care of your dependent child. You will need to sort through feelings and expectations as well as noting people, places, and services that relate to your child. You may want to spend a week taking notes throughout your day as you interact with your child to think through some of the broader issues, documenting how you feel about your child and their future. The Special Needs Alliance has identified some excellent categories to include in your letter of intent. Each category can be found in the boldface type.

Outlining your family history is an excellent place to begin. When and where you were born and raised. If you are married, describe when and how you met. Include anecdotes about your grandparents, brothers and sisters, other relatives, and special friends. Incorporate when and where your child was born and raised. List their siblings, and who was particularly special to them. Don’t overlook special family pets that may have a significant impact on your child. Recount fond memories, favorite times, and feelings about your child. Provide contact information for family members and friends. Follow the family history section with a general overview, summarizing your child’s life to the present and your thoughts and hopes about how you envision your child’s future.

Next, provide the details of your child’s daily schedule to give context to their caregiver. What are the best ways to communicate with your child and how to best manage their behaviors? Do they have hot button words that should be avoided? Who are your child’s teachers, aides, bus drivers, social service providers, or employers? Be as descriptive as possible about your child’s favorite activities and events and also include what your child doesn’t like. Some children love to rake leaves but get frustrated when tasked with folding the laundry, and these details are useful for future caregivers.

Does your child require assistance with personal care? What size clothing do they wear? What are their personality traits? Do they participate in social activities? What upsets your child? What situations are best to avoid? How do you want a guardian to discuss your death or incapacity? These are some of the questions you can answer in your letter of intent. You can detail your child’s food likes and dislikes, including any allergies they may have. Did you make your child a special birthday cake? What are your traditional family holiday menus? Compile recipes or describe any specific way food should be prepared or served. Remember that some foods can affect the medications that your child may take.

Next, broach the topic of medical care. Include the detail of your child’s specific disability(s), medical history, and include the medical history of immediate family members. Name all medications your child takes and describe how they are administered and for what purpose they are given. Include any allergies your child may have. Provide a list of their current doctors, therapists, hospitals, and clinics. Include how often your child has medical and therapy appointments and describe the purposes of and goals for these sessions. List all of your child’s current health insurance information. If your child has medical records that can be retrieved online, provide the accounts username, password, and any other relevant data.

If your child is still in school, describe their educational life. What have their experiences been, and what do you desire for their future education? Note what school your child attends and what schools would you like your child to attend in the future. Does the school provide specialized services to your child? Does your child participate in extracurricular activities? Address your wishes regarding the type of education you prefer they receive, such as vocational or academic. If there are specific programs or teachers, you want to be involved in your child’s overall life plan, name them, and provide contact information.

If your child is employed or you hope them to be in the future, describe how you envision their employment. What types of work and work environments would be beneficial to your child?

List all government benefits your child receives. These benefits may include Medicaid, Medicare, Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), Supplemental Nutrition Assistance Program (SNAP, aka food stamps), and any housing assistance. Provide your child and both parents Social Security numbers. Give agency contact information, your child’s case numbers, and discuss the recertification process of each benefit. Include all reporting requirements and important dates so that benefits do not lapse. Provide copies of financial documents.

How do you imagine your child’s residential environment? Is it your plan for your child to remain with family, friends, or will there be an organization tasked with their living situation? If your child is unable to stay with the family, what is your hope for an alternative living environment? If they are placed in a group home, would you like it to be in your current community? Should the living arrangements be in a smaller or larger setting? Does your child want to live alone or have roommates?

What type of social environment does your child prefer? Do they enjoy sports, movies, or video games? Can your child be given spending money, and how have they fared handling cash in the past? Does your child travel to visit family or take vacations? With whom do they travel most successfully and happily? Include a description of your child’s religious environment. Does your child routinely attend services? What church, synagogue, or mosque do they frequent? What local clergy might know your family and your child?

What are your desires for your child’s final arrangements? Does your child have a will and any advance directives? Where are these legal documents? Have you planned for a funeral, burial or cremation, cemetery, gravestone, or religious service? Is there someone specific you prefer to officiate the ceremony?

As your letter of intent takes shape, you might realize there is other information you want to share to provide the best guidance to the person who will care for your child. In your annual review of your LOI, you may find some passages unnecessary as your child grows up. You may want to include new detail as your child’s personality develops. Think of it as a living document to be edited, added to, whatever you think will serve your child’s interests best. Put your letter of intent with your other relevant legal and personal documents. Writing a letter of intent can be a very emotional experience and a difficult document to write because you must think about how your child will live in the world without you, their parent. Approach this letter as a gift to your child and their future. You know your child better than anyone else. Even in your absence, you can still help to guide their future life, hopes, and dreams.

We help families create legal plans for loved ones with special needs. If you would like to discuss your particular needs, 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.

Baby Boomers in the New Decade

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According to the US Census Bureau (Bureau of Census), their numbers are estimated to be 73 million strong in 2020. The baby boom generation is comprised of those Americans born 1946-1964. This generation represents nearly 20 percent of the American public. As they enter their 60, 70, and 80th decades, their influence will help to guide how billions of federal funds will be spent on critical public services like health care, housing, and social safety net programs like social security. The guiding forces behind baby boomer life in the 2020s are high expectations during a much longer retirement, more investment choices but less investment safety, and rising interest rates. There is more of a reliance on personal savings instead of pensions (which are often underfunded), while the gap of aging success between the rich and the poor remains.

As a demographic group, baby boomers wield the most financial power of any living generation.

Business Insider

As such, they continue to have a powerful impact on the direction of the US economy. Aside from federal spending, baby boomers are a significant focus of the marketing campaigns and business plans of many corporations. As a generation, they are also shifting focus from lifespan to healthspan. The all too cliché phrase 60 is the new 40 is rooted in how many baby boomers feel, more active and vibrant than ever before, and with a bank account to command attention and buy freedom of choice. An extension of this wellness trend is a retiring populous that is busy traveling, running marathons, building homes, starting new businesses and new chapters of life. Mindfulness and wellness are hallmarks of this generation, and it is leading them to a higher quality of retirement life.

Despite this aggregate of optimistic financial data, there is evidence suggesting the current poverty rate of 9 percent in the elderly American population will remain steady in the coming decade. Approximately 7 million older people will be living without sufficient income to meet housing, utilities, food, and medical needs. Many more baby boomers may fall into the poverty category in the 2020s because of insufficient retirement planning. Addressing this inequality will be challenging as successful aging is in large part due to financial stability as the rich are living longer while the poor are dying younger. Measuring retirement security then is based on overall healthspan (the number of years you can live independently) and wealth span (the amount of money over time you have available for your non-working years). The success of baby boomers’ retirement is generally defined decades earlier by a person or their spouse’s education level, work history, economic affluence and accumulation throughout their working years with a bit of luck tossed in.

The time in which baby boomers have had to accrue wealth has been primarily an economic boom cycle with a couple of economic corrections and downturns, most notably the Great Recession of 2008. Depending on how a baby boomer may have been financially positioned during these times can be the difference between substantial personal savings and struggling to meet retirement income needs. The equivalent purchasing power of one dollar in 1980 is $3.12 in 2020. A steadily increasing interest rate and an overall lessening of the dollars purchasing power can make fixed income living a precarious situation. Additionally, the cost of living adjustment (COLA) through social security benefits is not favorably weighted to living expenses of the aging US population. The deregulation and rules of financial vehicles that offer low to no tax rates like IRAs, Roth IRAs, annuities, life insurance policies, and more are continuously amended, mostly in the economic favor of the government or corporations offering the financial options. Even private and government pensions are not safe from payout reductions. The Social Security Administration (SSA) is admitting that without legislative reform to its program, social security benefits will only meet 75 percent of scheduled benefits by the year 2035.

The socioeconomic impact of the baby boomers will be an active force throughout the 2020s. As a generation, they are morphing the word “retirement” into the notion of a transitional life phase as they seek to repurpose their lives rather than sit on the proverbial front porch swing. Creative and inventive life shifts are inevitable as baby boomers spend down their wealth and money-making institutions, private or government, are poised to earn or tax those dollars.

We help baby boomers create comprehensive estate plans that focus on their current health and financial needs and the needs of those they wish to leave an inheritance to. Give us a call at (318) 255-1760 and schedule an appointment to discuss how we can help you.

A Guide for Purchasing Special Needs Housing

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Before beginning the search for special needs housing there are some tips to consider. The US Department of Housing and Urban Development (HUD) website lists state and local government agencies, along with other organizations, that can help you. At the federal level, the agency also provides information about HUD’s Section 504 regulations that define federal financial assistance.  In particular, Section 811 outlines it’s program for Supportive Housing for Persons with Disabilities. It is important to research what assistance is available before contacting a realtor.

Once you have a strategy in place to utilize available programs to minimize costs, it is time to think about the housing location. Is the individual with special needs employed or a student? Can they drive a car or do they need to be near public transportation to get to work or school? If the individual is a K-12 student, pay particular attention to school and after-school programs. Research what is available as many schools have programs for children with special needs that are offered outside of the standard school zoning in some neighborhoods. Also, take into account the proximity of hospitals and doctors. Consider the location of shopping (food and otherwise), dining and entertainment. Also, consider if there are any restrictions regarding support animals if that is relevant to your special needs.

Once the location list is narrowed down talk to others who have faced the same housing challenges; whether it is a support group, school parent message boards, housing assistance advocacy group, or online forum.  You can save a lot of time and money by learning from others who have gone before you. In these discussions, ask a lot of follow up questions because it is hard to ask about what you don’t know. Dialing into the details can help save you missteps in your process.

Once you have identified a general location that meets some of the criteria above, it is time to canvas the availability of appropriate homes. When thinking about the layout and design of a home, consider the rambler or ranch style house. They have a long low profile, very few stairs to navigate (if any) and have minimal exterior and interior decoration. These rambler attributes make the home reasonably easy to modify.

If mobility is an issue, look for a house with smooth floorings, such as hardwood floors or laminate flooring. Smooth surfaces provide easier access to shower and bathroom areas. Also, check to see that the doorways in the home are wide enough to accommodate a wheelchair. Assess how many modifications would be required to address the special needs while remaining within a budget. Grab bars, ramps, and other similar amenities are reasonably simple to add, and some states, cities, and counties will help pay for the modifications.

Not only are there federal, state, and local agencies to help you meet the requirements of a special needs home, there are also lenders and realtors who specialize in financing and purchasing this type of home. A good lender and realty agent will be familiar with the agencies and government programs that can help their client get approved for a loan and maneuver the housing marketplace for the right fit.

Get online and look. Realtor.com, Zillow, Homesnap, and Redfin are just a few of the online options to explore real estate from your home or mobile device. Just plug in an address of a home in the area that meets your criteria and you will get stats on that home as well as an aerial map of the neighborhood that allows you to click on and get information about homes that are not currently on the market but maybe soon.

Realize this process takes time. Identify a strong, competent real estate agent who understands your special needs parameters and is willing to put forth the time to find the right housing solution for you. Also, speak with a trusted attorney to ensure you have maximized all potential program benefits available to you. Buying a home is probably the biggest purchase you will make in your life. Buying a home that accommodates special needs adds a layer of complexity that should be well thought out before hiring a realtor. 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.

Social Security Myths Debunked

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Americans file early for benefits even though researchers claim it would be better to wait to claim their social security benefits. According to NerdWallet, more than half of Americans apply for social security before reaching their full retirement age, and more than 30 percent of those apply for benefits at 62 years of age. It DOES matter when you opt-in to take your social security benefit. Between the age of 62 and full retirement, your benefits increase by about 7 percent each year and additionally 8 percent each year between your full retirement age and 70. These percentages reflect an actuary adjustment to ensure those Americans who opt for a larger check for shorter periods do not receive less than those receiving smaller checks for more extended periods.

Current State of Retirement

Currently, full retirement age is 66 for those born before 1960 and 67 for those born after that. Social security benefits will max out at age 70 and by waiting that long your checks could be 24 to 32 percent more than what you would receive at full retirement age and a whopping 76 percent larger than what you would receive at 62. However, statistics show that only about 1 in 25 applicants will wait to collect benefits at the age of 70 when monthly benefits hit their peak. Economic hardship for some seniors clearly defines part of the trend in early benefit assumption, but what of those who have retirement planning in place?

Currently, low-interest rates and survivor benefit rules coupled with longer life expectancies generally mean most retirees would benefit by delaying their benefits as long as possible. Those destined to become super-seniors, living well into their 90s and 100s, can quickly run out of savings and may end up depending entirely on their social security benefits check. Having delayed taking social security provides maximum benefits for these super-seniors. Additionally, this older age group typically has qualities in common like a strong work ethic, positive outlook, close bonds with family, and a tendency to be religious. These traits factor into a purposeful life so that even on limited social security benefits when combined with the help of their family and community systems, they can still make ends meet.

At the other end of the spectrum are those Americans who feel, or know, they will have shorter life term expectancy. The Stanford Center on Longevity, however, reports that most people underestimate how long they will live. Today a 65-year-old man can expect to reach 84 years of age while a woman of the same age will probably reach 86.5 years. Studies by the Society of Actuaries are reporting life expectancies for those currently in their mid-50s (one in two women and one in three men) will live into their 90s. The cautionary tale is even if you project that you may not live long, you might indeed. It is best to anticipate being around and making financial decisions about social security benefits that reflect a longer life.

The Pitfalls of Claiming Benefits Early

Claiming benefits early to invest the money does not mean you will come out ahead and may put you significantly behind. There is no guaranteed investment product with a return as high as delaying your application for social security benefits. Claiming benefits early can also shortchange your spouse. A married couple will lose one of their checks when the first spouse dies. The loss of a check can create a severe drop in income even if the survivor receives the larger of the two checks. This benefit loss should incentivize the higher earner of the couple, with the larger check, to delay taking their benefit so that the survivor spouse benefit is more substantial.

You do not need to claim your social security benefit as soon as you stop working. Most financial planners will suggest tapping into other sources of income like a retirement fund or additional savings that allows your social security benefit to grow. Just delaying your benefits from age 62 to 66 can translate in a sustainable annual increase of 33 percent, so even a four-year delay can provide substantial returns.

The Future of Social Security

What about 2035 and the projected insolvency to fund social security benefits? If Congress does not act, the social security system will only be able to pay out 77 to 80 percent of the benefits promised. While this is not good, social security is not going bankrupt. The funding mechanisms must, however, get straightened out by politicians who want your vote to keep them in office. The silver tsunami of voters ensures that Congressional leaders and policymakers cannot overlook the senior demographic, which is critical to their re-election.

Each person’s or couple’s situation is different; their savings, assets, debt, work history, and retirement planning all vary widely. Additionally, according to Barrons.com, every state has a distinct annual spending threshold recommended for a comfortable retirement. To learn your best options and create your plan for a successful financial retirement, including when to take your social security benefit, talk to elder counsel. The social security benefit structure and rules are changing, change with it to maximize your benefits.  If you have questions, please don’t hesitate to reach out. We are here to help. Please contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss your planning needs.