 Elder
Law Update
Georgia Edition
Our
Fifth Birthday Issue!
|
|
| |
|
PLEASE VISIT MASON LAW
|
 |
|
I WANT TO KNOW
|
|
If you have an idea or comment that will help me
make this a better newsletter
please
send it to me. Just
click! |
|
|
Dear Bob & Ann,
 It's
our Birthday! The fifth. I read somewhere that five
years is some sort of
magic mark .
. . make it five years and the odds of your being
around another five years go up astronomically. I
don't see Mason Law going anywhere but up. We are
busier than ever and our world remains full of
people needing our help. We are grateful, profoundly
so, to all of the friends, clients and cheerleaders
who helped make it possible. Thank you.
Bob Joins the Senior Lawyers Division
Some years ago (maybe it was about five years ago,
come to think of it) I decided to quit being a
"joiner" and to hold my time commitments to church,
family, law practice and only those other activities
that would relate in some meaningful way to those
priorities. That being said, I recently joined
something new because, well, I wanted to.
In February Tom Sinks of the North Carolina Bar
Senior Lawyers Division invited me to come down to
New Bern in April and put on a Saturday morning
presentation on Medicaid basics. Had a great time.
All the guys (and a few gals) were great companions
. . . in fact many of them were down right hilarious
. . . constant good natured ribbing. The quarterly
meeting was more like a Rotary Club's
Sergeant-at-Arms report . . . NO ONE was safe.
Then the membership chair said something like "Hey!
How old are YOU!?" (looking directly at me). Busted.
I've agreed to send in my dues and I look forward to
the next meeting in Salisbury. A big group of them
have signed up for
Elder Law Update and this is their first
issue. Welcome aboard!
I don't know what it was that made the weekend so
enjoyable. Perhaps it was that it was a group of
friends who were far enough along in life that
they'd learned not to take themselves too seriously
(something my younger colleagues - and I - will no
doubt learn as we continue to chronologically
advance).
Memorial Day
Being the month of May, Memorial Day is coming up.
To be sure, an overlooked observance, assigned a
Monday and given little thought. I hope our little
contribution below will give you all something to
ponder.
Important Veterans Benefits
On a (somewhat) related note, under the General
Heading "Overlooked Things" and subheading
"Veterans" is the subject of Veterans Benefits. I
have spent the better part of the past year growing
my knowledge base in the area of Veterans Benefits -
which can also include benefits for the widows of
veterans.
I continue to be stunned at the lack of awareness
many otherwise eligible vets - or their widows -
have with respect to an incredibly valuable benefit
that less than 25% of eligible veterans ever take
advantage of.
IF YOU ARE A VETERAN OR KNOW A VETERAN; IF YOU ARE
THE WIDOW OF A VETERAN OR KNOW THE WIDOW OF A
VETERAN LOOK AT THE ARTICLE BELOW.
We are beefing up the practice in this area, and you
can read my "opening salvo" below.
And on the medical front . . .
Dr. Shevlin is back this month with an article that
is of absolutely no personal concern to me. The
topic is seniors failing to maintain adequate
weight. On the other hand, it is a thoughtful
article and presents some very important tips for
families and those who serve seniors.
Banking Balm
We are hearing that these are uncertain economic
times. The level of "scare" stories and noise in the
media is increasing. Banker Rose deVries offers some
common sense advice, some balm for the fears and
looks at FDIC protection and how you can hedge that
protection if you really feel it is necessary.
Social Security Front
And of course, Social Security Guy Warren Coble
continues his look at how Social Security benefits
are calculated.
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.
|
|
Surprise! A Great Veterans Benefit Might Be
Available
Bob Mason
 Are
you (or do you know) a veteran, or the widow of a
veteran, over age 65 who is homebound, in an
assisted living facility or in a nursing home? If
so, I have some great news.
A little known and usually misunderstood benefits
program variously called Improved Pension or "Aid &
Attendance" might be available to boost monthly
income by as much as another $1,842. Published
estimates I have seen declare that less than 25% of
eligible veterans or widows of veterans ever collect
a dime.
While most VA cash benefit programs are restricted
to vets who were wounded or injured while serving in
the armed forces, an Improved Pension or Aid
&Attendance benefit might be available to any
veteran 65 years or older or his or her widow if the
veteran served at least 90 days active duty, with 1
day of that 90 days during a VA defined period of
hostilities.
The veteran could qualify for as much as an
additional $1,842 monthly, and his widow could
qualify for as much as $998 monthly. The exact
amount depends upon monthly adjusted income.
The problem is that most people believe that monthly
income and the available VA benefit may not
exceed $1,842 or $998. Not so!
The monthly income is adjusted downward for a
variety of medical, insurance and long term care
expenses, before determining the amount of benefit
available.
Here is an example. Kenny Kilroy entered the Army in
1945 and spent a few months in a
replacement pool at Ft. Bragg before the end of
WWII. Discharged from the Army in 1946, Kenny
returned to Asheboro, North Carolina, and went into
a small family business. During the early part of
2008 Kenny's health declined some and he now lives
in an assisted living facility near Asheboro.
Kenny's Social Security benefit pays $1,500 monthly,
and he has a small annuity that pays $300 month.
$1,800 monthly will not cover the $3,000 monthly
assisted living facility bill.
Time to panic? Not at all. Kenny's ADJUSTED income
will be at least a negative $1,200 (and maybe
more if he has other medical or health-related
expenses). Under that scenario Kenny Kilroy should
qualify for $1,842 in Aid & Attendance and he will
have more than enough to cover the assisted living
facility bill.
There are asset restrictions. As with Medicaid, some
assets count, some assets don't (the lists aren't
the same for Medicaid and Aid & Attendance).
Generally speaking the applicant can't have more
than $80,000 in countable assets. It might even be
less . . . the VA uses no "bright line" amount.
Unlike Medicaid, it is fairly easy to "reconfigure"
assets to qualify.
By law, the only people that can help compile an
application for a veteran or a widow are:
-
A licensed attorney
-
A veterans service organization (such as the
VFW, AmVets, American Legion), or
-
A state Department of Veterans Affairs office.
By law, it is illegal to charge a veteran for
compiling and submitting an application.
On the other hand, it is not illegal to charge a
veteran for the planning involved in qualifying for
the benefit and implementing that plan.
Further, veterans, or the widows of veterans, do not
live in a vacuum. They likely have other concerns.
Also, an advisor who may not know what he or she is
doing, may succeed in qualifying someone for VA
benefits and hopelessly disqualify the
veteran for Medicaid or other needed benefits in the
process of qualifying for Aid & Attendance. This is
tricky business.
Correctly approached, however, and correctly
integrated as part of an overall plan, this
particular VA benefit can be a powerful tool.
We are actively pulling this planning tool into the
practice. In the months ahead, I will tell you more.
Stay tuned.
PS If anyone needs to know the significance of
Kilroy,
send me an email, and I'll be happy to explain.
Bob Mason
|
|
WEIGHT LOSS IN THE ELDERLY
Patricia Shevlin, MD
Over the last few years there has been an emphasis
placed on "The Obesity Epidemic".
This emphasis is justified because obesity is seen
at all stages of life, including the elderly.
Seniors are, however, likely to suffer from weight
loss and it can be a poor prognostic sign. Weight
loss has been associated with increased mortality,
even in the elderly who otherwise appear well.
As with most problems in the elderly, the cause of
weight loss can be multifactorial. Chapters of
geriatric textbooks are devoted to medical causes of
weight loss and I have no intention of boring anyone
with a list of possibilities. I will instead confine
my comments to some of the things I ask family
members to watch for in determining a cause. The
patient himself is an excellent source of
information - but the family can provide some
observational data that the patient may not realize.
Having a meal with the senior can provide a lot of
information. If the person is living in the
community, can he cook for himself? Cooking requires
good eyesight, memory, and manual dexterity to chop
food or open cans. If the senior is trying to cook
but has limited what he prepares to make the task
easier, he could experience a slow weight loss over
time.
Watching the senior eat can also be helpful. A
tremor can make it difficult to cut food or to bring
it to the mouth. This can make a meal less enjoyable
and may make the senior give up eating sooner than
usual.
Is chewing or swallowing a problem? Again the
choices of food could be contributing to weight
loss. The sense of taste changes with age such that
food may need to have more seasoning to taste
appealing. Because this change is gradual it can
easily be missed as a cause of decreased appetite.
Is the senior so worried about following a special
diet that he is over-limiting his diet? (Yes,
sometimes the patient is too good at following
directions).
Knowing if a person is eating alone can be a clue to
weight loss. Social isolation can lead to
depression, which is one of the major causes of
weight loss. If the person is eating alone, is it
because he is unaware of opportunities available to
eat with others, or is he embarrassed by some
difficulty he has with the mechanics of eating? Is
the cost of meals a barrier, or transportation?
As you can see, a lot of information can be gathered
even before medications are reviewed, a physical
exam done or lab tests ordered. Addressing the
issues that are discovered is yet another challenge,
but if we are caught up only in the medical model we
miss a lot of potential to make a difference.
Patricia Shevlin, M.D., is a principal in Asheboro
Family Physicians with offices in Asheboro, North
Carolina.
|
HOW YOUR SOCIAL SECURITY BENEFIT IS CALCULATED
-Warren Coble
Continuing last month's article we consider some
additional factors which affect the amount of Social
Security benefits.
Delayed retirement credits are applied to the PIA of
individuals who delay entitlement to some point
after age 66. This automatic increase is applied by
Social Security from the time the individual reaches
full retirement age until they start receiving their
benefits or until they reach age 70. The percentage
of increase varies depending on the year of birth.
For example, individuals born 1943 or later will
have 8 percent per year added to the PIA benefit for
each year that they delay signing up for Social
Security beyond their full retirement age. This
could ultimately increase the benefit by 32%.
Additional wages earned after age 62 may or may not
increase the Primary Insurance Amount. Since wages
in the years prior to age 60 are "indexed" to
current values, unless the yearly earnings after age
60 are higher than the earlier "indexed" earnings,
no increase is given.
A final factor affecting the monthly amount of the
benefits payable is the receipt of a pension
(usually derived from government employment) that
was not covered by Social Security taxes. Many
times, certain government employers (some Federal,
some City, some School) have their own separate
retirement systems. Individuals retiring from
non-covered employment who also have sufficient
Social Security Quarters of Coverage to qualify for
Social Security Retirement are subject to the
Windfall Elimination Provision (WEP). WEP reduces
the first percentage amounts in the computation to
lower, but does not eliminate the Social Security
Benefit.
Next month, we'll look at the issue of family
benefits.
Social Security expert Warren Coble welcomes your
questions regarding Medicare, Social Security and
Senior Life in general! Email Warren by clicking
HERE. |
Is Your Money $afe?
Rose deVries
With today's turmoil in the financial
marketplace, banks find it more and more
difficult to
compete. In fact, over the span of the last
70 years, 3,553 banks have failed in the
U.S. Of those failed banks, 42 are
Georgia-based and 22 operate in North
Carolina. So when a bank closes - what
happens to your money? Don't let your
hard-earned dollars disappear as a result of
someone else's bad business decisions! Take
advantage of ways to fully insure all your
deposits.
The Federal Deposit Insurance Corporation
(FDIC) will insure your deposits, dollar for
dollar, including principal and interest, up
to its insurance limit. What makes the
"insured bank" designation so special is the
fact that all FDIC-insured banks must meet
high standards for financial strength and
stability. The FDIC, with other federal and
state regulatory agencies, reviews the
operations of insured banks to ensure these
standards are met. (Visit
www.fdic.gov for more information.)
Considering the current economic downturn,
investing your finances at an FDIC-insured
institution is a must. In fact, a recent
announcement by federal bank regulators
noted that they plan to increase staffing 60
percent in coming months to handle an
anticipated surge in troubled financial
institutions. Currently, there are 76 banks
on the FDIC's "problem institutions" list,
which would equate to about 10 expected bank
failures this year. Historically, about six
banks fail per year on average, FDIC
officials said.
The standard FDIC-insurance amount is
$100,000 per depositor per insured bank.
Certain retirement accounts, such as
Individual Retirement Accounts (IRAs), are
insured up to $250,000. You may qualify for
more than $100,000 in coverage if you own
deposit accounts in different ownership
categories (i.e., single accounts,
retirement accounts, joint accounts,
revocable trust accounts). Additionally, a
corporation, partnership or unincorporated
association is insured separately from
personal accounts of the stockholders,
partners or members. But, not all deposits
are created equal in the eyes of the FDIC!
The following is a table that shows what is
and what is not covered by FDIC insurance.
|
Covered (up to the insured limit) |
Not Covered (even if offered by an
insured bank) |
|
Checking accounts |
Stocks |
|
Now accounts |
Bonds |
|
Savings accounts |
Mutual funds |
|
Certificates of Deposit (CDs) |
Life insurance policies |
|
|
Annuities |
|
|
Municipal securities |
To give you an example of how FDIC insurance
works, let's use Bob and Sarah Smith. Bob owns
a CD in the amount of $180,000. He and his
wife, Sarah, jointly own an account in the
amount of $160,000. Additionally, Bob has a
business account for his pet supply company,
PetsRus, in the amount of $100,000. As you can
see by the following table, Bob is not fully
insured. He's leaving $80,000 vulnerable!
|
Single Ownership Acct. |
Balance |
|
|
Bob CD |
$180,000 |
|
|
|
|
|
|
Single Ownership Insurance Summary |
Balance |
Insured |
Uninsured |
|
Bob |
$180,000 |
$100,000 |
$80,000 |
|
JointOwnership Accounts |
Balance |
|
|
Bob and Sarah, jointly |
$160,000 |
|
|
|
|
|
|
Joint Ownership Insurance Summary |
Balance |
Insured |
Uninsured |
|
Bob |
$80,000 |
$80,000 |
$0 |
|
Sarah |
$80,000 |
$80,000 |
$0 |
|
Business Accounts |
Balance |
|
|
PetsRus |
$100,000 |
|
|
|
|
|
|
Business Insurance Summary |
Balance |
Insured |
Uninsured |
|
PetsRus |
$100,000 |
$100,000 |
$0 |
|
All Accounts |
Balance |
Insured |
Uninsured |
|
Grand Total |
$440,000 |
$360,000 |
$80,000 |
If you find that FDIC insurance does not cover
all your deposits, you can either open multiple
title accounts in different rights and
capabilities of family members or run around
town, depositing your funds in multiple insured
banks. A less well-known, but more convenient
option is the Certificate of Deposit Account
Registry Service (CDARS). CDARS is run by the
Promontory Interfinancial Network. With CDARS,
you can purchase a CD from one of any 1,700
participating institutions and that deposit is
parceled out to other banks, qualifying you for
up to $50M in FDIC coverage. Put simply, this
means that a customer is able to deposit up to
$50M with one banking institution and have those
monies fully insured by the FDIC. For a complete
listing of banks which participate in CDARS,
visit www.cdars.com.
For example, to fully insure Bob's CD, his
insured bank ("Bank A") would give him a CD
worth $95,000 (leaving room for interest) and
send his remaining $85,000 to another insured
bank ("Bank B") which will issue Bob a CD for
the remaining $85,000. With CDARS, Bob will
receive one statement from his primary bank
showing all fully-insured deposits. But the most
important thing Bob gets is peace of mind,
knowing that his deposits are safe.
I challenge all of to confirm that your bank is
"insured" and if so, that ALL your deposits are
fully covered. To determine whether a bank is
FDIC insured, go to
www.fdic.gov/deposit/index.html/, click on
"Bank Find" and search for your bank.
Alternatively, you can call the FDIC at
1-877-275-3342 and a representative will search
for you. Once you've determined that your bank
is insured, utilize the Electronic Deposit
Insurance Estimator at www2.fdic.gov/edie/ or
ask your bank representative to determine what
portion, if any, of your deposits are
uninsured. Finally, for those amounts that are
not insured, call your bank to find out if it
offers the CDARS service. If not, visit
www.cdars.com to locate a member bank near
you. You may also call CDARS directly at
888-776-6426. You've worked hard for your
money, so protect it!
|
In
Remembrance
We may not, and should not, approve of war
and violence. But until we learn to make a
better world, that is the way it is, and
this is the lesson of Memorial Day: Nothing
is ever wholly negative, nothing is ever
wholly lost. Despite all grief and human
wastage, even over dead men's blood and
bones, we manage to progress a little.
Let us then remember the dead - in all wars
- gratefully. And let us hope that because
of them we may become a touch better, a
thimbleful wiser, and a handshake more
tolerant of this changing world they did not
live to see.
--- Arthur
Hailey
|
|
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!). |
|
|
