Mason Law, PC Elder Law Update

Elder Law Update

Georgia Edition
ELU First Anniversary Issue!

Vol 2 Issue One

June 2008

In This Issue

Home Alone XX

Hurricane Season: Evacuation Planning For Mom

Social Security Benefits for the Family

Is Your Money Safe? Retirement Benefits

This Month's Favorite Link
Check It Out!

Veterans Benefits: The Missing Puzzle Piece

The All New, Drastically Revised, All Free: Georgia Medicaid Guide

FDIC's Electronic Deposit Insurance Calculator

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Dear Bob & Ann,

Something happened last week. Never mind what the official rules say. Summer came. I popped the car door open at the mall and was slammed by a 130° gust. I understood then. Summer had arrived.

We (the family) also straightened out our summer schedule, and it looks like a busy one. Also, I'll be working on a few longer term projects this summer and I'll be sharing more of that with you in the Fall.

One project involves fully incorporating into the practice the Veterans' benefits I wrote you about last week. It is something like a prism held up to the light; every time I give it a slight twist I see another color, or something I hadn't seen before.

When properly incorporated into an overall plan, the results can be truly dramatic. I'll only pound in one point in this edition: You (or someone you know) may very well qualify even if you do not think you do at this moment.

If you haven't yet downloaded our Veterans' benefits brochure (Veterans Benefits: The Missing Puzzle Piece), do so now. And turn on the color. It is a nice looking brochure, if I do say so myself (I didn't design it, by the way . . . thanks to Jared Reeder of Asheboro). If you'd like some "hard copy" brochures, drop me an email and we'll get them right out.

Dr. Beth Hodges is back this month with some helpful observations about seniors living alone and important developments to be on the look out for. And on the topic of loved ones living alone . . . .

Barbara Dunn, a geriatric care specialist and president of Elder Care Management in Savannah, is starting off a multi-part series on disaster preparedness for older family members. Actually, this is a "back by popular demand" feature we ran last summer during hurricane season. I received many comments on it, and because we have more than tripled the readership of Elder Law Update since then, I decided to run it again.

Warren Coble takes a look at various Social Security family benefits and explains the main points below.

Soon-to-be-newly-wed Rose de Vries continues her look at federal insurance in the banking industry and how various sorts of POD, trust and retirement accounts are insured. Many of you will have at least one "Now-I-Didn't-Know-That" moment reading her article.

Finally, with summer comes hurricane season. Hurricane season, of course, is of vital concern to our many readers who live a short distance from the coast (both in Georgia and North Carolina). Hurricanes, however, can be almost as worrisome to those leaving further inland. Asheboro, North Carolina, and surrounding areas have been pounded in the past by such extreme weather.

Thanks to you all for a great year. With this issue we begin Year Two of Elder Law Update. You can "Take a walk down memory lane" by visiting the Bone Yard (Elder Law Update archives) by going HERE.

I welcome your comments and suggestions, and am always interested in anyone who'd like to share some thoughts in these spaces.

Have a great summer!

Bob Mason
Certified Elder Law Attorney

Certified by the National Elder Law Foundation, recognized by the American Bar Association as the certifying entity for specialization in Elder Law.

HOME ALONE XX . . . the older years
Beth Hodges, MD

Who do you live with? It is a question I ask all my new geriatric patients. The answer

varies . . . "my spouse," "my son," even "my sister" are possible answers. The one that I give special attention is, "I live by myself."

For many seniors, living alone can be a reasonable option. But as with driving privileges, certain criteria need to be met and there are pitfalls to avoid.

The most obvious question is, what is the physical status of the patient? Is he able to do activities of daily living (for example, dressing, bathing, simple food preparation) independently? Does he still drive and manage his finances? Though relatives and neighbors can certainly help, managing a household can be complex. Consider also the size of the home. A small condominium is a lot different to manage than a multistory house on five acres.

Next, what is his mental capability? A lot of well-meaning relatives ("Come on, Dad likes his privacy. He's fine by himself. We check on him once a week.") do not realize what attractive and easy targets older people are for con men going door to door. They can be fooled or simply strong armed into giving up their valuables. Then there is the danger a person with mild to moderate memory loss can pose to themselves.

Every year, if you read the papers, you will see stories of elderly people burning down their houses by turning a burner on the stove and forgetting. When I lived in Ohio, one prominent elderly couple died when the wife went into the garage and started the car to warm it up in preparation for going out, forgot, and went to bed. They died in their sleep of carbon monoxide leaking up from the garage below.

Also important to consider is the impact of social isolation. Sure, giving up independence and the home they've had for fifty years is traumatic, but after an initial adjustment period, most seniors thrive living around other people their own age. Rates of depression drop, diabetes and high blood pressure get easier to control, physical complaints decrease. I have even seen modest improvement in dementia patients who were previously isolated.

Some seniors really need a supervised environment for management of their medications. Taking multiple meds can be confusing and mistakes can result in serious consequences.

Once you have determined that Uncle Frank can no longer live by himself, the next step is to decide what type of environment he needs. The options include living with other family members, independent senior living apartments, assisted living, and a skilled nursing facility.

Living with other family members is self-explanatory and is often the best option. The only caveat is that the family members Uncle Frank moves in with must be capable of and willing to provide the care he needs. Sometimes Uncle Frank moves in with Cousin Betty so his pension check can subsidize her rent, and the only person who benefits is Cousin Betty.

To decide between the other options, it can be very helpful to have a conference with the individual's physician. Doctors know what criteria have to be met for placement in the different types of facilities. Once you determine the level of facility needed, you should take Uncle Frank there for a tour and to meet with the administration staff to check on pricing and bed availability. As with anything involving the government, there are copious forms to be filled out first. Sometimes there is a waiting list as well, so it is smart to do your research before a crisis occurs, if possible.

A discussion of prices and payment options would fill a book and is beyond the scope of my knowledge. Suffice to say, all of these places have social workers on staff to help families explore their options. (Thank goodness!)

Beth Hodges, MD, is a principal in Hodges Family Practice, with offices in Asheboro and Ramseur, North Carolina.

Evacuation Planning for Older Adults
Barbara J. Dunn, RN, MSN

Editor's note: This is the first in a three part series telling you how to begin devising an emergency evacuation plan for the elderly.

Barbara Dunn Hurricane Katrina dramatically illustrated the importance of planning the safe evacuation of older adults. Unfortunately, both communities and families often overlook evacuation planning for older adults. This article aims to raise the awareness of family members about the need to have an evacuation plan in place and to identify a few key measures to increase the older adult's safety and comfort should an evacuation be necessary.

This is a big topic. I'll show you how to get started. In this issue of Elder Law Update we'll discuss a few preliminary considerations. In the next two issues I'll review important and very specific areas to address with your older loved one.

First, draft an evacuation plan with your older adult loved one, making sure his or her wishes are included in the plan. Make sure the loved one has a copy of the plan and schedule time to review it periodically. Many older adults say they won't evacuate. Don't be deterred and forge on with planning.

Increasing your loved one's comfort and safety during an evacuation begins with (1) a written evacuation plan, (2) that reflects the older adult's unique evacuation needs. The four critical areas to address are mobility needs, communication needs, medication needs, and, yes, pet needs.

Caution!

Evacuations tend to be "equal opportunity events" leaving all of us subject to whatever comes our way-especially without prior planning. "My parents will never go to a shelter" or "my aunt will not evacuate on public transportation" are not wise positions to take. A life could be in jeopardy. Emergencies by their very nature come unannounced and are chaotic. Many will be forced to rely on public transportation and shelter.

Further, older adults often have no family members nearby, leaving others to plan for their well-being during an evacuation. Remember, if you don't plan for the older adult in your life, someone else may and you may not be happy with the outcome. Last, even if you live near your loved one, don't assume you will be able to reach him or her. Be prepared for everything and anything.

In the next issue of Elder Law Update I'll show you how to plan for mobility needs, communications needs, and medications. If it looks like Coastal Georgia may be visited by a hurricane before the next issue, we'll complete this article in a special alert.

Barbara Dunn, MSN, is owner of Elder Care of Coastal Georgia, as well as Chair of the Disaster Services Committee of the Savannah Chapter of the American Red Cross. You may email comments and questions to Barbara by clicking HERE.

SOCIAL SECURITY BENEFITS FOR THE FAMILY
-Warren Coble

The modern Social Security program is more than a retirement or disability program. Congress and FDR originally designed the program to replace wages lost by a worker Barbara Dunn

due to retirement or death. Family benefits have been included since the program's inception in the 1930's.

When you start receiving Social Security retirement or disability benefits, other family members also may be eligible for payments. For example, benefits can be paid to your spouse if she/he is age 62 or older; or at any age, if she/he is caring for your child (the child must be younger than 16 or disabled and receiving Social Security benefits on your record). In some cases, divorced spouse benefits may be payable.

Benefits also can be paid to your unmarried children if they are younger than 18; between 18 and 19 years old, but in elementary or secondary school as full-time students; or age 18 or older and severely disabled (the disability must have started before age 22).

If an insured worker dies, the family may be eligible for benefits based on the deceased individual's work. If a deceased worker had enough credits, a one-time payment of $255 may be payable after the death. This benefit may be paid to your spouse or minor children if they meet certain requirements.

Family members eligible to collect survivor benefits include a widow(er) who is 60 or older; or 50 or older and disabled; or any age if he is caring for your child who is younger than 16 or disabled and receiving Social Security benefits. In some cases, divorced spouses may also qualify.

Children of deceased insured workers can receive benefits, too, if they are unmarried and younger than 18 years old; or between 18 and 19 years old, but in an elementary or secondary school as full-time students; or age 18 or older and severely disabled (the disability must have started before age 22).

Additionally, the parents of a deceased insured worker can receive benefits on the deceased's earnings if they were dependent on the deceased for at least half of their support.

Next month, we will look at how actual benefits for the family are computed.

Social Security expert Warren Coble welcomes your questions regarding Medicare, Social Security and Senior Life in general! Email Warren by clicking HERE.

More On: Is Your Money $afe?

-Rose deVries

In light of the recent economic downturn, many are asking: "Is my money protected?" While most banks in fact are FDIC insured - which means that your deposits are protected up to a certain limit - you must still be knowledgeable about how to setup these accounts to mitigate any chance of loss.

It is important to understand which of your accounts are protected and to what degree. Today, the focus will be on two common ownership categories: Certain Retirement accounts and Revocable Trust accounts. The knowledge you have about these accounts can lead to big savings or huge loss - so you need to determine if you have set up your accounts responsibly.

Certain Retirement accounts are owned by a single individual and while there are many to choose from, only a select few are insured by the FDIC in this category. The most common insured type is the Individual Retirement Account (IRAs). These include the traditional IRA, Roth IRA, Simplified Employee Pension (SEP) IRA and Savings Incentive Match Plans for Employees (SIMPLE) IRA (although there are others that are protected as well, including deferred compensation and self-directed plans). The FDIC combines the retirement plans an individual has at a single banking institution and insures that amount up to $250,000.

As an example let us look at Bill and his financial situation. Bill has $100,000 in traditional IRA funds and $150,000 in Roth IRA funds at Bank A. At Bank B Bill has $30,000 in Section 457 deferred compensation funds. How much of Bill's retirement funds will the FDIC insure? The FDIC will insure all $280,000 of Bill's retirement funds because he did not exceed $250,000 in his combined retirement funds at Bank A and the additional $30,000 in retirement funds is in an account in another banking institution.

There are additional details to consider in regards to these retirement accounts. The insurance coverage does not increase based on the number of beneficiaries named to the account. If you have a retirement account that was not mentioned above, visit the FDIC website for information regarding your specific retirement account.

The next ownership category is Revocable Trust accounts. These come in two main forms, payable on death (POD) accounts and Living Trust accounts. POD accounts are informal revocable trusts naming certain people as the recipients of the deposits upon the owner's death. Living Trusts, on the other hand, are formal revocable trusts established for estate planning purposes. Determining coverage for living trusts is a more complicated process so the focus will be on POD accounts.

Unlike the retirement plans mentioned previously, revocable trusts cover the interests of each beneficiary named to the account up to $100,000 while the owner is still viewed as the insured party.

For example, Jack has Account A: a $100,000 POD account and has made his wife Jill the sole beneficiary. Jill holds Account B: a $100,000 POD account with Jack named as the sole beneficiary. The couple also has Account C: a joint POD account of $300,000 in which their three children are named the beneficiaries. The FDIC will fully cover all three of these accounts - totalling $800,000 - because each owner is entitled to $100,000 of coverage for the interests of each qualifying beneficiary. In this case, Account C has three qualifying beneficiaries. So each child is insured up to $100,000 for both Jack and Jill.

An important note with these revocable trust accounts is that FDIC coverage is provided solely for the owner's beneficiaries. This does not include the owners themselves. For example if Tom has a $300,000 POD account and names his two daughters as beneficiaries he is leaving $100,000 uninsured because his two daughters can only be covered up to $100,000 each for a total of $200,000.

As with the certain retirement accounts, there are some points to consider with revocable trust accounts, particularly those pertaining to beneficiary coverage. The FDIC has certain requirements that must be met in order to ensure full beneficiary coverage up to $100,000.

The beneficiary must be the owner's spouse, child (including adopted and stepchildren), grandchild, parent or sibling. Any other family members not mentioned above are not covered by the FDIC.
POD account beneficiaries must be identified by name in bank account records.
The account title must also indicate the trust relationship: payable on death, in trust for, an acronym such as POD or some other variation.

Done responsibly, setting up your financial accounts can mean the difference between your money being protected versus uninsured. To determine whether your bank is FDIC insured click HERE. Here you can enter the bank name and location to determine if it is in fact insured.

Finally, I encourage you all to use FDIC's Electronic Deposit Insurance Estimator. Just answer a few simple questions and the estimator will help determine if your accounts are fully insured.

Rose de Vries, JD, is Vice President of Private Banking Services for Darby Bank & Trust Co. (offices in Vidalia, Lyons, Pooler and Savannah, Georgia). Rose is based in Darby's main Savannah office. You may email comments and questions to Rose at rdevries@darbybank.com.

The Usual Disclaimer: This newsletter is for general information only. Please do not rely on anything you read in this email as definitive legal advice applicable to you. All situations are different, including yours. Nothing you read in this newsletter is a suitable substitute for professional advice you may receive from your attorney, your accountant, or your tax advisor.

All contents copyrighted 2008 by Mason Law, PC. Contents may be republished with written permission of Mason Law, PC (which permission will usually be given!).