When Roles Reverse… The Adult Child Becomes The Parent!

It is important to understand family dynamics when it becomes time for adult children to have to help make decisions for their parents. Thinking about long term care and placement in an assisted living or skilled nursing facility is very difficult for families to handle.  The family needs to talk with an experienced elder law attorney centered on what the parent(s) wishes to do versus what is in the best interest of the senior loved one.  Children are generally uncomfortable about moving a parent out of their home to a facility against they want to remain at home.  This discussion can start with looking at in home care aides to start the LifeCARE Cycle. Sometimes parents become rebellious and do not allow anyone in the home to help them.  If the children do not live nearby or have to work a full time job, managing a rebellious parent long distance becomes a difficult family task.

Many children are understandably uncomfortable in becoming the parent, especially if the parent does not want to accept help that is clearly needed.  Independence is a hard thing to let go of.  But there is a time when adult children will need to step in to the decision making role, just as parents do with small children. Your decision to step in can be very difficult because in many situations the decline is gradual.   When is the right time to step in?

Too often the deterioration of your parent’s ability to do the every day things to care for themselves will happen gradually over time. Your parent(s) may become experts at hiding these problems, so it is important for you to be on guard for certain warning signs:

• Incapable to properly pay bills and manage their finances
• Incapable to handle their needed nourishment, clothing or shelter
• Incapable to take care of one’s physical health

Early intervention on your part can prevent serious problems from occurring.  When you visit your parent(s), look for the following warning signs of a possible care crisis:

• no food in the cupboards,
• stacks of unopened mail,
• evidence of not bathing
• other signs that your parents are no longer able to properly care for themselves.

If they wait for the parents to ask for help, that day will probably never come. They need to have a plan in place sooner than later that will provide for adequate care supervision and financial assistance even if parents feel they need no help. 

LA LAW Center Staff will help you assess your parent’s physical, emotional and financial situation and suggest the best options for your parent’s situation.  This can range from, setting up a Conservatorship, securing Government Benefits to help pay for care, such as Medi-CAL, Medicare, Veterans or Social Security benefits, developing a Life Care Plan or help in choosing In Home Care Givers,  Assisted Living Facility or Nursing Home.

For more information, please go to our website and look around. We try to educate our community and assist them with any elder law needs they may have or fear. Visit our site or call us today to schedule your FREE consultation with one of our experienced elder law attorneys. 

1 (877) 537 - 8283

>>>     www.la-lawcenter.com     <<<

Only Small Change to Estate Tax from "Fiscal Cliff" Compromises

All of the talk in recent months about our nation’s economy and what our government planned to do about this “fiscal cliff,” decisions have been made and now we are left wondering what to make of it all. Most of us, in particular, are wondering what this will be doing to our families and ourselves, not just the country at large.

So far, people have been seeing larger numbers taken out of their paychecks due to the increase of taxes, and a couple other things are bound to change with families and small businesses, but we are happy to note that as part of the tax compromise that was approved, the amount that is exempted from estate taxes will remain the same as it has been for the past two years, although the maximum tax rate will rise by 5 percentage points. Those of us who are seeing an increase in money taken out of our paychecks will have solace knowing that estate tax will not be changed as a result of this deal.

The American Taxpayer Relief Act (http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf), which passed in the House by a vote of 257/167, permanently sets the estate tax exemption at $5 million for an individual and $10 million for a couple. Taking into account the new adjustments to inflation, these exemptions are estimated to rise to about $5.2 million for an individual and $10.24 million for couples. The gift tax and generation-skipping transfer tax exemptions will also remain the same as last year, adjusting for inflation, and the estate tax portability provision remains intact.

Although this is good news for most of us without assets in the millions, for those that exceed these amounts, Congress did change one of the prior rules: the maximum tax rate on inheritances above these levels will increase from 35 percent to 40 percent.

Although the bill's provisions should have taken effect on the first of the year when
President Obama had promised to sign it into law, technically for now the
estate tax has reverted to its 2001 level of a 55 percent tax on inheritances above $1 million.

Also the annual gift tax exemption has been raised to from $13,000 to
$14,000 gift per year per person. However, a person can gift more than this
amount each year by declaring a larger gift as part of their lifetime estate
gift tax exemption (which is set at $5 million with inflation adjustments in
the future) by declaring it on a 709 Gift Tax Return.

For more information about this and other California asset protection or
estate planning questions, call LA LAW Center, LLP for a complementary
consultation at 1.877.537.8283.

2013 New Limits for Medi-CAL & VA Benefits

January 14, 2013

We have new limits to the Medi-CAL program and the VA Aid and Attendance program for 2013.  It is important to know these new numbers when considering applying for these programs in California.

Medi-CAL (Medicaid in any other US state) and the Veteran’s Aid and Attendance are needs based programs and have defined income and asset limitations.  These numbers connected with the Social Security cost of living increases.  There was a 1.7% cost of living increase for Social Security this year. The following are other benefit increases to long term care related Medi-CAL and VA benefits: 

2013 VA Benefit Increases

The VA Aid & Attendance rates have increased this year too.  A single veteran qualifying for Aid and Attendance benefits has increased to a maximum of $1732 of tax free income.

The widowed spouse of a veteran has increased up to $1,112 of tax free income.

A married veteran who needs care can qualify for as much as $2053 per month of tax free income. 

2013 Assets be Counted for Qualifying for Medi-CAL

The applicant countable assets remained at less than $2000 in order to qualify for Medi-CAL. The good news is a married couple with one person needing the Medi-CAL program to help pay for nursing home care, the healthy spouse total asset amount has increased to $115,920. Many think both spouses have to be below $2,000 and must spend all of their savings on care before Medi-Cal will help. This is simply not true and if this is followed it can be devastating to the well spouse.

2013 Medi-CAL Income Rates have Changed

The minimum amount of the couple’s combined income for the benefit of the Well Spouse has increased to $2,898. If the Well Spouse’s separate income is less than a minimum amount ($2,898 per month), then a portion of the Medi-CAL Applicant Spouse’s income may be transferred to the Well Spouse to bring the monthly income up to the minimum levels. This can be increased by having an elder law attorney go to court to request additional living expenses through a 3100 Petition.

For more information about whether California’s Medi-CAL program or VA Aid & Attendance benefits may be available to you or your loved one contact please go to www.la-lawcenter.com or call us at 877-537-8283 or 818 241 4238. We offer free consultations on the phone or by appointment in our Glendale CA offices.

Only Small Change to Estate Tax from "Fiscal Cliff" Compromises

All of the talk in recent months about our nation’s economy and what our government planned to do about this “fiscal cliff,” decisions have been made and now we are left wondering what to make of it all. Most of us, in particular, are wondering what this will be doing to our families and ourselves, not just the country at large.

So far, people have been seeing larger numbers taken out of their paychecks due to the increase of taxes, and a couple other things are bound to change with families and small businesses, but we are happy to note that as part of the tax compromise that was approved, the amount that is exempted from estate taxes will remain the same as it has been for the past two years, although the maximum tax rate will rise by 5 percentage points. Those of us who are seeing an increase in money taken out of our paychecks will have solace knowing that estate tax will not be changed as a result of this deal.

The American Taxpayer Relief Act (http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf), which passed in the House by a vote of 257/167, permanently sets the estate tax exemption at $5 million for an individual and $10 million for a couple. Taking into account the new adjustments to inflation, these exemptions are estimated to rise to about $5.2 million for an individual and $10.24 million for couples. The gift tax and generation-skipping transfer tax exemptions will also remain the same as last year, adjusting for inflation, and the estate tax portability provision remains intact.

Although this is good news for most of us without assets in the millions, for those that exceed these amounts, Congress did change one of the prior rules: the maximum tax rate on inheritances above these levels will increase from 35 percent to 40 percent.

Although the bill's provisions should have taken effect on the first of the year when President Obama had promised to sign it into law, technically for now the estate tax has reverted to its 2001 level of a 55 percent tax on inheritances above $1 million.

Also the annual gift tax exemption has been raised to from $13,000 to $14,000 gift per year per person. However, a person can gift more than this amount each year by declaring a larger gift as part of their lifetime estate gift tax exemption (which is set at $5 million with inflation adjustments in the future) by declaring it on a 709 Gift Tax Return.

For more information about this and other California asset protection or estate planning questions, call LA LAW Center, LLP for a complementary consultation at 1.877.537.8283.

Take it From Them: Estate Planning Advice From Beyond the Grave

             We have made it to the first week of 2013 and have survived a lot of obstacles: the Mayan Apocalypse, a plethora of bread, pies, alcohol, cheese, and turkeys, holiday family gatherings, New Years Eve, and the sleep-through-it first day of the new year. After overcoming the last two months of celebrating and being with family and friends in copious amounts, the first week of January is a time where people all around the world feel a sense of renewal and a chance to make beneficial changes for their years to come. Some people make resolutions, some begin some pre-spring cleaning and organizing, and others just strive to do things brand new and exciting in the New Year. What many people are not thinking about, and probably should be, is setting up a plan to protect his or her family with an estate plan, will or trust.

The New Year is a time where people are feeling optimistic about their future and their lives, and are not usually thinking about planning for their death or the death of their loved ones, but setting up a plan in which a person’s personal wishes are legally documented is an important task that should be a part of anyone’s New Years Resolution list. There are a lot of reasons for this preparation: obviously it will protect a person’s wishes in case their life ends suddenly or after a long illness, but establishing the people who will make medical decisions for yourself if you happen to become unfortunately incapacitated is something many people do not think about when debating establishing an estate plan, will or trust.

Some people choose not to worry about the fate of their lives after they become seriously injured or deceased, and that choice has lead to disastrous ends in many circumstances. Here, in Los Angeles, the California court system will decide how a person’s end of life health care decisions are made if there are no legal documents giving those directions. Many families spend years in nasty court battles trying to sort out a loved ones assets because a proper will or trust was not established. Hugely public estate feuds have been apparent for many years involving many high profile celebrities and wealthy individuals, and in each case the need for an established estate plan becomes evermore apparent. Wealthmanagement.com gave a list of celebrities and famous individuals whose end of life plans did not go over as swimmingly as they might have hoped, and they serve as lessons of why these documents are so important for every adult, young or old.

Here are a couple of examples:

            Presidents:

President Lincoln is one of four presidents who did not have a plan for their death established, and Lincoln’s financial estate was such a mess that it took years to settle.

            Musicians:

Sonny Bono, musician and California Congressman experienced a sudden death after a tragic skiing accident without a will or trust established, that left his wife, Mary, to open up a probate estate and needed to be granted permission to have authority over his music rights after claims from his second wife, Cher, and an alleged love child conflicted the security of his estate of over 1 million dollars.

James Brown wished to leave his entire 100 million dollar fortune in a special trust that was set up to benefit needy children, but because he had not updated his will during the time of his most recent marriage, his money did not get sent to the children in need, or to his family.

 

Although there are a lot of horror stories of celebrities estates gone wrong, one of the most inspiring high profile estate stories comes from the King of Rock and Roll himself, Mr. Elvis Presley. He had a will, along with tools that were put in place to make sure that his finances would be handled appropriately, despite greedy music executives trying to get a hold on his assets.

These are obviously grandiose stories that seem far fetched to most of us, especially considering the sheer amount of money involved in their estates, but similar things happen to people with less assets and wealth every day. These kinds of missteps leave families involved with the court and probate teams for years, and the security that would come with a will or trust is gone.

The beginning of the year is a great time to make “resolutionary” changes to start making life decisions that leave you and your family healthier and happier than years past. One of the best ways to ensure that your family can continue to live in this way is to plan for the future of your family, even if you aren’t around. Add this to your resolution list this year: it’s a big one. 

For a free consultation please call 818 241 4238 or go to www.la-lawcenter.com

(Information found for this blog here: http://wealthmanagement.com/estate-planning/lessons-rich-and-famous-death)

Veteran's Day is this weekend! Remember to thank a Veteran!

Sunday November 11th is Veteran's Day!

This day each year gives all Americans the opportunity to honor the bravery and sacrifice of all U.S. Veterans.
Please take a moment this Sunday to remember the freedoms Americans have because of the U.S.Veterans.

We at the LA LAW Center strongly feel that our American Veterans have made tremendous sacrifices to preserve the freedoms of the American people. We believe that these men and women (& spouses) deserve many Veterans’ benefits. We have a mission to assist all Veterans in understanding their benefits and getting their well deserved entitlements! Also we want to ensure that carefully planning is a part of this process to make sure the Veterans will qualify for Medi-CAL if they need it in the future.

Please make a point to thank a veteran or a member of the U.S. Armed forces this weekend.

Elder Law Attorney’s roles in supporting our Aging Population

The specialty of attorneys understanding Elder Law is becoming essential as our population ages.  We are living much longer but not necessarily “living better Attorneys specializing in Elder Law are a great resource seniors and their families in many ways. Below are some of the more important elder issues we at LA Law Center, LLP can help you with.

Help with Understanding Medicare and Medi-CAL Programs

Qualified legal help is available from elder law attorneys to help individuals in applying for and accelerating payments for Medi-CAL. An elder law attorney can also help with disputes with Medicaid. Also attorneys who specialize in Medicare can help with disability claims and sometimes this help is the only way claims are ever granted.

Financial Elder Abuse or Exploitation

Seniors can be become lonely and then become vulnerable to strangers (or family members) and become victims of financial exploitation. Examples of the most common types of financial exploitation can include:

·      Pay in Advance Prize-Winning Schemes

·      Telephone Solicitations for Dishonest Charities or Fraudulent Investments

·      Identity Theft to Get Credit Card Numbers and Other Information

·      High-Pressure Door-To-Door Sales

·      Dishonest Home Improvement Contracts

·      Dishonest Miracle Health Cures

·      Unnecessary Living Trusts through a Trust Mill

·      Dishonest Funeral Arrangement Plans

Seniors should have their affairs in order and be protected with Powers of Attorney given to a trusted family member. Adult children need to keep a close eye of their parents if the suspect any failure in metal or physical capacities. Sometimes it is best to have an elder law attorney explain these issues to seniors as they will take it more seriously.  They should also be warned of and told to avoid any financial transactions that:

·          Anything requiring upfront deposits.

·          Contracts are to be signed without two or three days of consideration in consultation with knowledgeable family members.

·           Any dishonest schemes sent through the mail are guilty of mail fraud

Elder Law Attorneys and your local area agency on aging can be a good source for help in these areas. Most importantly you should have a review of estate documents to make sure your estate is protected!!!

Settle Family Disputes

An Elder Law attorney can help as an arbitrator or a mediator in solving disputes among family members relating to the care of elderly parents. There may be disagreements over many issues is an estate plan and it may take an attorney to help sort though the family politics! A lawyer may be necessary to settle the differences either through informal mediation to court actions. We prefer to settle issues before they destroy a family!

For more information, please go to our website and look around. We try to educate our community and assist them with any elder law needs they may have or fear. Visit our site or call us today to schedule your FREE consultation with one of our experienced elder law attorneys. 

1 (877) 537 - 8283

>>>     www.la-lawcenter.com     <<<