COVID-19 Takes Toll on Senior Living Workforce

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Fears that provisions in a coronavirus-related relief action by the US government could have severely curtailed the workforce in senior assisted living, independent living, memory care, and continuing care retirement communities provide a cautionary tale. The bill, HR 6201, is a multi-billion dollar aid package known as Families First Coronavirus Response Act. The bill has recently been signed into law by the US President. Influential leaders, CEOs, and corporate Presidents in the senior care and housing industry addressed facility workforce concerns directly to the House Speaker Pelosi (D-CA) and Senate Majority Leader McConnell (R-KY) before the passing of H.R.6201.

The Families First Coronavirus Response Law expands unemployment and Medicaid benefits, provides for free coronavirus testing, and mandates paid sick leave and childcare. Now that schools have closed throughout the country for an indefinite time, the fear is that many senior care workers will, unsurprisingly, put their family before their healthcare worker employment. A reprieve of sorts was added before the law being enacted, which states that only certain employees can qualify for paid sick leave.  Because of these loopholes, healthcare workers like first responders, and hospital and nursing home staff are ineligible for paid sick leave per the Families First Coronavirus Response Law (FFCRL) amid fears of staffing shortages among medical providers.

Healthcare worker exemption from some FFCRL benefits is a relief to the senior housing industry but by no means mitigates other workforce challenges during the coronavirus pandemic. The pervasiveness of this contagion means that healthcare workers will be exposed to, and some will fall ill with full-blown coronavirus symptoms and illness. Obviously, in these cases, the healthcare worker will be removed from the senior living facility for quarantine and recovery and to protect the facility’s residents and staff. One coronavirus confirmed healthcare worker begins a domino effect within a facility. Regular operations become short-staffed, and operators face the Centers for Disease Control and Prevention (CDC) protocols that co-workers must also face quarantine.

Beyond coronavirus exposure, symptoms, and the diagnosed virus itself, there is the problem of how healthcare workers respond in a pandemic. The non-stop news and social media coverage of the coronavirus has put many Americans on edge, including health care workers. In a crisis, some people respond logically and calmly, while others may become fearful of their own circumstances and respond emotionally. Most healthcare workers would put their own family’s health needs and care before any employment, and in a free society, there is nothing to compel them to stay in a job if they choose to tend first to their own family.

If your loved one is in a senior living facility, what can you do to mitigate the negative consequences of workforce disruption due to the coronavirus? In the short term, if you are able and your senior is well enough, you can put them under your care. Beyond family care, unless you have the resources for private pay at any cost, you, like the rest of us, are in the system and have to wait out the virus and its effects. There is no guarantee moving forward how the coronavirus will play out in senior living communities, America, and around the world.

One of the few things you do have control over is to assure your loved one has proper legal documents for end of life decisions. Take the time to review them to ensure they are in order. A do not resuscitate order (DNR), durable medical power of attorney, and end of life wishes should be on file with your loved ones living facility and the local hospital. Additional legal copies of these documents should remain in your car or on your person in the event a facility is unable to locate the paperwork. Preparing for the worst-case scenario is a harsh reality; however, it could make the difference between chaotic suffering and a peaceful passing.

We can help draft appropriate documents for you and your loved ones.

If you have questions or need guidance in your planning or planning for a loved one, please do not hesitate to contact our office by calling us at (318) 255-1760.

Speaking with Children About Inheritance

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Many parents are uncomfortable talking to their kids about their wealth.  Talking about how much money or property you have is usually viewed as taboo.  Asking someone else about what they have is often considered impolite. But failing to talk to kids about how much they may inherit could leave them unprepared to handle even a modest amount, and often results in the money being squandered quickly.

Baby boomers are considered the wealthiest generation and are set to pass that wealth on to their children. It’s estimated that $68 trillion will be passed down from boomers within the next few decades. By 2030, millennials will hold five times as much wealth as they do today.

Many who have substantial wealth are concerned that if their children know the extent of their wealth, this will take away any motivation for the children to be productive and involved citizens. Parents with substantial wealth often want their children to learn how to live in the world as “normal” people, and to be productive and successful in their own right. Some may go so far as to hide their wealth to encourage their children to work and build their own wealth.

But the degree of wealth is relative. Even those who are not as wealthy may not want their children to know how much they have. With the rising costs of health care, they are concerned that all of their savings will be needed for retirement, medical expenses, and long-term care. If this becomes a reality their kids would not receive an inheritance they may have been counting on.

Failing to prepare children for what they may inherit can hinder their ability to handle money wisely. Many find they suddenly feel separated from their friends, isolated, even confused about how to handle relationships. Others will be wasteful and spend their newfound money irresponsibly. Those who inherit even a modest amount are likely to be just as irresponsible; stories of inheritances being squandered on an expensive sports car, lavish vacations, and fast living are all too common.

Experts agree it is important to talk to children about money and wealth during their adult years to help them learn how to be better stewards of wealth. This doesn’t mean parents have to take a show their children all of their bank accounts, business interests and other evidence of wealth. Instead, experts suggest talking to children about their values, the opportunities money can provide and what you as parents want to accomplish with the money you have. Most parents want their children to think about helping others, and many want to encourage entrepreneurship. It can be helpful to give children a small amount of money at a young age to teach them how to save and invest, spend wisely, and to show them the importance of supporting charities.

One of the most effective ways to teach children about values and spending and investing money is to be an example. Parents need to let their children see them using their money in ways that reinforce their values. Some parents show how they value family relationships by spending their money on family vacations or buying a second home where the entire family can gather for summers and holidays. Others involve their children in choosing charities to support and provide children their own money to donate. If your children see you living your values, chances are they will adopt similar values as well.

We help families determine how to leave money to children in a beneficial way, how to plan for unexpected health care issues, and how to make sure appropriate people are named to step in and help if needed. We welcome the opportunity to talk to you about your planning needs.

If you have questions or need guidance in your planning or planning for a loved one, please do not hesitate to contact our office by calling us at (318) 255-1760.

Differences Between Medicare and Medicaid

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Most people who work in healthcare may recognize the acronym LASA, which stands for “look-alike-sound-alike” and is usually seen when referencing medications. When it comes to federal programs, Medicaid and Medicare, in written form, look alike and they do sound alike but work very differently.

Both Medicare and Medicaid were started in 1965 under Lyndon B. Johnson’s administration in response to the inability of older and low-income people to purchase private insurance. Both Medicare and Medicaid were started in 1965 under Lyndon B. Johnson’s administration in response to the inability of older and low-income people to purchase private insurance. Medicaid is an assistance program, funded federally and at the state level, that provides coverage for health care to low-income individuals regardless of age. It is governed federally with each state administering its own plan, which can vary from one state to the next. Medicare is a federal insurance program that provides health coverage for people aged 65 and over or to those under age 65 with a severe disability such as end-stage renal disease or Lou Gehrig’s disease, also known as ALS-amyotrophic lateral sclerosis. Dependents are not typically covered.

Medicaid eligibility is needs-based, meaning both income and assets are counted when determining eligibility. Both Medicare and Medicaid will cover a broad range of health care services, including hospital stays and physician office visits, yet Medicaid will cover nursing home care, in-home care services, long term care, and transportation to receive medical care which Medicare will not pay for. It is possible to qualify for dual coverage, which means both Medicare and Medicaid will work together to provide health care coverage and lower costs.

Regarding cost, Medicaid in most instances is free of cost, though a small copay may be required depending on the plan. Medicaid can also recover against assets in a recipient’s estate after the death of the recipient. This could mean a lien is placed and executed on a recipient’s home, depending on whether a surviving spouse or blind or disabled child is residing in the home. Medicare is not free in that premiums and co-payments may be required for some parts of Medicare, and may be larger for those with a higher income, but eligibility is not income-based.

With Medicare, one has to work for about 10 years (40 qualifying quarters), at which point no premiums are required for Part A,  which covers hospitalizations. Premiums may be necessary if you sign up for a Medicare Advantage plan, which is different from Original Medicare where you are permitted to purchase supplemental coverage for out of pocket costs. Because Medicare is not administered by each state, a Medicare recipient will usually have the same coverage and pay the same copays and deductibles regardless of the state of residence.   Co-pays and deductibles are required for Medicare’s Part B (outpatient services) and Part D (medication) plans. Also, a financial penalty can be assessed if one does not sign up for Medicare Part B when you first become eligible, and there may be a delay in getting coverage.

Though basic differences are covered here, there is much more information to know regarding both plans, so research is encouraged before you hit the age of eligibility for Medicare to determine which Medicare plan may be right for you. Medicaid plans and coverage differ from state to state, and sometimes county to county.  We would be happy to answer any questions you have about your potential eligibility for either program.

If you have questions about planning for yourself or planning for a loved one, contact our Ruston, Louisiana offices by clicking here to send us a message or give us a call at (318) 255-1760.

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Law Aimed at Stopping Financial Elder Abuse

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President Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act into law on May 24, 2018. The Act contains a section that was once a stand-alone bill from Sen. Susan Collins (R-Maine) which is designed to encourage the reporting of elder (age 65 and older) financial abuse witnessed by financial institutions. The Act does not mandate that these institutions report financial abuse directed towards elders to avoid penalties, rather it gives them an incentive to do so. The Act provides immunity from any lawsuit alleging elder financial abuse if the financial institution reports it to state or federal law enforcement agents. 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. This Act provides immunity to financial institutions because they are often the first to witness elderly clients making unusual transactions that may be linked to a scam.

The Act was inspired by the Senior$afe program in Maine. Senior$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 number of elders who fall victim to these scams.

However, this isn’t an entirely new idea. In 2016, the Consumer Financial Protection Bureau (CFPB) issued a report that found how reporting elder financial abuse has already become a respected norm in hundreds of counties around the country. The report found 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. Financial institutions are often the first to spot these cases, and law enforcement has an obligation to investigate once a claim is made. Also, the CFPB recommends that partnerships that 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 in 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 have any questions about something you have read, please do not hesitate to contact our Ruston office by clicking here are by dialing us at (318) 255-1760.

 

U.S. Government Says Seniors Should Exercise

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The U.S. Department of Health and Human Services has released its latest findings addressing healthy exercise guidelines for older adults. The overall conclusion is that all aging adults should include aerobic and muscle-strengthening exercises as well as add balance training. The authors of the study by the Journal of the American Medical Association (JAMA) state “All three aspects are important for this population because older adults are at an increased risk of falls, and strength and balance are needed to prevent falls.” Physically active adults are better able to engage in activities of daily living and have improved physical function.

The good news is, even if you have never exercised before, you can get benefits from beginning today. Determine your level of fitness and talk to your doctor before beginning any program. To exercise safely, adults with chronic conditions may require exercise modifications either in physical technique or time allotment. Even with a chronic condition older adults should be as physically active as their circumstances allow. The goal is not to outlive your muscles.

General recommendations include all adults get a minimum of 150 to 300 minutes of moderate or 75 – 150 minutes of vigorous-intensity aerobic activity weekly. Two or more days of the week should include muscle strength training. Balance exercises can be natural daily incorporation in your routine with multicomponent physical activities such as dance, certain sports, or yoga. Additional balance (and brain!) training can be achieved by walking backward.

While some of these exercise routines may require a treadmill or weight training equipment, there are ways to add more motion to your daily routine by swapping sedentary behavior with light or moderate-intensity physical activity. Many household tasks like vacuuming, dusting, laundry, and gardening are excellent ways to keep you moving, and the work effort provides a more restful, clean environment for when you are ready to sit down and relax.

Aerobic activity is large muscle movement for a sustained period and it improves cardiorespiratory fitness. Many adults know it as endurance or cardio training. Good examples of aerobic exercise include bicycling, jumping rope, running, or brisk walking. All of these, except for bicycling, is bone-strengthening activity because the force exerted on your bones helps promote bone growth and strength. If you can’t exercise outdoors gym memberships are often available through your insurance company for free or at a reduced rate and are good places to exercise both for safety and social connection with others.

A gym is also an excellent place for a muscle-strengthening activity to increase skeletal muscle strength, power, endurance, and mass. If you are not actively working to strengthen your muscles, they will atrophy with age. Weight lifting or resistance training helps keep your muscles healthy. Proper form and familiarity with the gym equipment is a necessity so be sure to get proper training and oversight especially when you are beginning a muscle-strengthening program.

Balance activity is designed to improve your ability to resist forces within or outside of the body that can cause a person to fall while stationary or moving. Lunges are a straightforward technique that helps your balance. Walking backward is an excellent balance activity but must be approached slowly. There are great mental benefits from learning how to walk backward as well as physical ones. Benefits include an enhanced sense of body awareness, better body coordination, sharpened thinking skills, and cognitive control enhancement. However, be sure to consult with the gym personnel before engaging in backward treadmill walking.

Multicomponent physical activity is also excellent for improved balance. These activities include certain sports and dance, but one of the best overall is yoga which challenges your static balance as you stand in position and hold without swaying as well as dynamic balance which is the ability to anticipate and react to changes as you move. Yoga is also meditative and is very good for your brain and your ability to calm and center yourself. You can find yoga DVDs available to do at home or at a friend’s house. Yoga is an excellent multi-component physical activity for men and women.

The benefits that can be achieved by following this three-pronged approach for exercise cannot be overstated. Overall it will lower all-cause mortality including lower cardiovascular disease and its associated mortality, lower risk of hypertension, type 2 diabetes, and an adverse blood lipid (fat) profile. It can also lower risks of some cancers like bladder, breast, colon, esophagus, kidney, lung and stomach.  In conjunction with one another these three exercise activities improve cognition and quality of life, reduce anxiety and the risk of depression as well as reduce the risk of dementia (including Alzheimer’s). Exercise will improve your sleep and can help reduce weight gain. These three exercise activities will improve your bone health, physical function, and lower the risk of falls and fall-related injuries.

Proper exercise is one of the components to aging successfully, as noted in the Department of Health and Human Services report. Group exercise can also be a great way to socialize with others and reduce feelings of isolation.

If you have any questions or would like to discuss how we could help you or a loved one with a comprehensive legal plan, please don’t hesitate to contact our Ruston office to schedule an appointment or call us at (318) 255-1760.

 

These Trends in Senior Living May Surprise You

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The traditional senior housing market is undergoing a profound change. In 2018 senior housing occupancy fell to an eight-year low, even as the senior population continues to increase, as competition for the younger baby boomer market is ramping up and forcing a change to more traditional independent and assisted living options. Active adult concepts like Margaritaville are addressing this market segment that is turned off by the idea of “senior living.” Atria Senior Living is in a joint venture with Related Companies to build $3 billion in senior luxury housing in major metro areas while overall multifamily development with an intergenerational mix of renters is also fragmenting the traditional senior housing market. Occupancy challenges in traditional independent living and assisted living communities are also finding the retention of a reliable workforce to be a continuing challenge. The truth is that the advent of smart home technology and on-demand services ordered via a smartphone, as well as home care aides, are enabling apartment and single dwelling living for more extended periods than ever before. Younger seniors tend to want to age in place for as long as possible.

In the skilled nursing arena, Medicare fee-for-service payment reform brings forward three major provisions: the change to the case-mix classification system, the skilled nursing facility Value Based-Purchase Program, and the skilled nursing facility Quality Reporting Program. The case-mix model focuses on the patient’s condition and resulting care needs rather than the number of care services provided to determine Medicare payment. The Value Based-Purchase Program shifts Medicare payments from volume to value-driven. Finally, the skilled nursing facility Quality Reporting Program is designed, through innovation, to provide meaningful, quality measure reporting, a reduction of paperwork, and a lowering of administrative costs.

These and other changes in Medicare are helping to create an influx of capital into the senior care market incentivizing innovative partnerships and cross-continuum service development. Investors and providers will be partnering with Medicare Advantage payors, retail giants, home health, pharmacies, technology, and other provider groups to reinvent and manage the quality and cost of senior care housing, products, and services. This influx of investment capital combined with technology is destined to create fresh ways to approach senior living needs and the services that provide for them. Web-based platforms and data analytics software continue to address the battle for the retention of the health care workforce while Telehealth solutions are enabling elders in rural markets to reach providers and connect with specialists. Voice recognition software is increasingly being integrated into resident units whether they are private homes or pay for service facilities. Partnering opportunities and joint ventures will continue to create new service models that will, in particular, meet the needs of home and community-based services.

When aging in place is no longer a viable strategy a senior is faced with where to go next. Marketing senior housing to the younger baby boomers is changing, and it is data-driven. In particular, the adult Gen X children of these seniors are helping their parents to make informed decisions, and they typically get their information from online sources. Social media has become a tech tool replacing older marketing models of senior housing communities. Operators can tell their stories, address negative reviews, promote positive news items, and create conversations. Gen X adult children will be looking to social media platforms to get real and varied opinions to validate their parents’ choices.

As Medicare Advantage increases its integration in the overall health care system, data collection and its conclusions are more critical than ever. Potential residents will also be addressing concerns about health care data. More data is being gathered than ever before by Centers for Medicaid and Medicare Services (CMS) on hospital readmission rates, the prevalence of falls, and other related health information and consumers will demand to know what these statistics are before entering into a contract with a senior living community.

Seniors are being presented with more living options than ever before and the competition for their dollars will keep providers in the senior living industry highly focused and fiercely competitive. Questions facing seniors include: How and where do you want to live as you age? Are you well informed about the changing options available to you? Do you have a plan in place that is legally documented for the stages of your senior life?

We can help. Give us a call and let’s start planning together. You can reach Goff & Goff Attorneys at our Ruston, Louisiana office by clicking here to send us a message or by dialing (318) 255-1760.

Avoiding Medicare Scams

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By far the largest types of insurance fraud are scams against government and private health care insurers. The Coalition Against Insurance Fraud estimates that tens of billions of dollars are lost annually to these types of fraud. Additionally, medical identity theft is now a top complaint received by the Federal Trade Commission. Billing fraud is also responsible for huge losses to Medicare funds.

How does this affect a senior on an individual level? Although scammers frequently steal newly issued medical ID cards to take over the owner’s identity, scammers also pose as Medicare officials and ask people to pay for their new cards, which in reality are free. They also phone a potential victims with false news of  refund and ask for  ID numbers and bank account numbers to deposit the refund. 

The Centers for Medicare and Medicaid Services have provided a list of tips to help prevent fraud. The first and foremost is to protect your Medicare and Social Security numbers vigilantly. Treat your Medicare card like you would any credit card.  Do not provide the number to anyone other than your doctor or people you know should have it. Become educated about Medicare with regards to your rights and what a provider can and cannot bill to Medicare.  Review your doctor bills carefully, looking for services billed for but not provided to you. Remember, nothing is free with regards to medical care, so never accept offers of money or gifts of free services. You should be suspicious of your provider if they tell you they know how to “bill Medicare” to pay for a procedure or a service that is not typically covered. Before leaving your pharmacy check to be sure your medication is correct, including the full amount prescribed and whether  you received a generic or brand name medicine. If your prescription is in error, then report the problem to the pharmacist before leaving. 

Remember Medicare will never visit, call, or email you and ask for personal information such as your Medicare number, Social Security Number, address, or bank account number. Medicare already has this information and does not need you to provide it.  When Medicare issues new cards in April of 2019, you will not be required to do anything. You can assume that anyone who claims to be helping you with Medicare and asks for your personal or financial information is a scam artist so close the door, hang up the phone, or delete the email.

“Right now … everyone is being inundated with TV commercials, brochures and other official-looking documents in the mail about all the Medicare Advantage plans. It’s so confusing, and in an environment like that, fraud is rampant,” says Micki Nozaki of the California Senior Medicare Patrol. There are more than 50 million Medicare beneficiaries who can annually opt to swap Medicare Advantage and Part D prescription drug plans which provide scammers with the opportunity to prey on vast numbers of seniors.  

When it is time to compare plans be sure to meet with a trustworthy advisor. Some insurance representatives give the industry a bad name by selling you a policy or plan that does not suit your needs or your budget. Some agents go so far as to ask you to sign a release form allowing them to make decisions on your behalf. Never sign anything related to Medicare without first reading it carefully. Additionally, it is a good practice to have a family member or lawyer review the document before signing it. The non-profit National Council on Aging (NCOA) has a free, brief assessment that allows you to compare plans online. You can also contact your local State Health Insurance Assistance Program (SHIP). SHIPs is a provider of free, federally-funded Medicare counseling via a trained volunteer or staff member. 

Medicare fraud wastes billions of taxpayer dollars annually. With common sense and open eyes, you don’t have to become a victim of these predators. 

If you have questions or would like to discuss anything you’ve read, please don’t hesitate to contact us.

Add Goff, Elder Law Attorney

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Recognizing and Reporting Elder Abuse

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What is Elder Abuse?

Many seniors are subjected to elder abuse every day. Tragically, the abuse often goes unreported and the abuser goes unpunished. Before such abuse can be reported, it has to be recognized. Elder abuse is a problem that takes many forms. Elder abuse may take the form of physical abuse, emotional abuse, simple neglect, and financial exploitation. 

Physical abuse is often the most obvious and easy to spot. Physical abuse to the elderly would include the obvious things such as hitting, striking, beating, kicking, and using excessive force. However, physical abuse may also include the overuse of restraints or drugs. 

Emotional or psychological abuse can be anything that causes emotional pain or distress.  It often takes the form of verbal assaults, intimidation, isolation, humiliation, and harassment.

Neglect is when a caregiver fails to provide the necessary care for the senior citizen under their care. (In contrast, self-neglect is when a senior citizen who is mentally competent refuses to care for their own needs and causes harm to themselves.)

Financial exploitation is yet another form of elder abuse.  Many have heard of con artists and scammers taking advantage of the elderly through phishing scams, unsolicited phone calls, and the like. However, many do not know that financial exploitation is most commonly  committed by family members or caregivers. 

Reporting Suspected Abuse 

Adult Protective Services (APS) is often the first to receive reports of or to respond to reports of elder abuse. Their job is to provide for the safety, health, and well-being of elderly and vulnerable adults.  The law requires those who work with senior citizens in various capacities to report to APS if they suspect elder abuse. When APS receives reports of abuse or neglect, they have several possible actions or interventions. They are responsible for receiving and investigating reports of elder abuse. They then must evaluate the victim’s risks and assess the victim’s ability to understand their risk and give informed consent. The APS worker can then develop a case plan for the abused elder. Once a case plan has been decided, the case worker can arrange for necessary care, medical attention, and legal consultation. Once this is done Adult Protective Services then monitors the services and evaluates the case.

More serious cases of abuse may be reported directly to police. If a senior is in immediate danger, this may be the best course of action.

The internet has many websites that provide information on warning signs of potential physical abuse, emotional/psychological abuse, sexual abuse, neglect, and financial abuse. If you have a loved one who is a senior citizen, it is important to know the warning signs for abuse. It is also key to stay involved with the caregivers and to make regular visits to check on the care of your senior loved one. The National Adult Protective Services Association, https://www.napsa-now.org/get-informed/ , has important information on different types of abuse, as well as ways to get help in any state

If you have any questions about something you have read or would like additional information, please feel free to contact us.

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Ruston Elder Law Attorney, Add Goff.

Special Needs Trusts 101 – A Tool For Protecting Those With Disabilities

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In general, a trust is created when property or assets are managed by a person or firm for another person’s benefit. The person or entity who manages the trust is known as the “trustee” and is entrusted with the responsibility of making decisions in the best interest of the person who benefits from the trust, known as the beneficiary. Trusts are advantageous because they provide the ability to place conditions on how and when your assets will be distributed when you die, reduce estate and gift taxes, and allow you to skip the lengthy and expensive probate process. However, they can have other important benefits. 

Generally speaking, without proper planning, a person with special needs could be rendered ineligible for government benefits upon the  death of the beneficiary’s parent. The absence of the caregiver parent gone and / or the loss of the benefits could be devastating to the special needs person. A Special Needs Trust can avoid this situation. 

A Special Needs Trust is a class of trust made specifically for the benefit of someone with a physical and/or mental disability. It differs from the typical trust due to the special conditions that often need to be in place to accommodate the specific needs and lifestyle of the Special Needs Trust’s beneficiary. One of the important features of a special needs trust is that the assets in the trust will not be counted toward asset thresholds contained in government programs such as Supplemental Security Income (SSI) and Medicaid. The trustee has complete control over the assets in the trust, instead of the beneficiary. For this reason, government programs such as SSI and Medicaid ignore assets in a trust when determining eligibility. Many people are unaware of this and make the mistake of distributing their assets to a loved one with special needs through a will. This could cause them to exceed the asset limits for SSI and/or Medicaid, thus losing their benefits from these programs.

Special needs trust may also be set up to take the proceeds from a legal settlement on behalf of the person with special needs. For example, if someone is rendered disabled due to the fault of a drunk driver and thus receives a  award or settlement (even a small one), then this could knock the victim off of any government benefits being received.  A Special Needs Trust can ensure the victim’s compensation does not have such tragic effects. Also, the funds in the special needs trust can sometimes be protected from being paid out to a creditor or someone who decides to sue.

When setting up any trust, much less a Special Needs Trust, choosing the right trustee is of paramount importance. The trustee must be someone you are certain will act in the beneficiary’s best interest before and after your death. Often, this takes place in the form of a trusted family member who knows the beneficiary and his or her needs. However, if your situation doesn’t allow for this, a court can appoint a third party to manage the trust according to your written wishes.

Even if you believe your loved one with special needs will never need government benefits, it is still prudent to consider a Special Needs Trust. These trusts can provide for the unique and specific needs of the beneficiary in ways that other types of trusts cannot. Further, you never know what may happen in the future, especially when you’re no longer around. It may turn out that your loved one needs these government benefits one day. If that happens, they’ll be glad you provided them this option.

Special needs trusts are an excellent vehicle to ensure your loved one with special needs is taken care of in the event of your passing. It is also a good tool to take care of your children in the future in case a tragedy occurs down the road. However, they can be difficult to set up and it is advised that you consult an elder law attorney who will be able to examine your specific situation and make sure your loved one is taken care of for years to come. Give me a call if  you would like to speak with a trust lawyer regarding your situation. 

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Ruston Elder Law Attorney, Add Goff.

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.