Category: Financial Issues, Risks, Resources

Oregon Transfer-On-Death Deeds: The Good, the Bad, and the Ugly

Post by Stephanie Carter, Attorney at Law, with Draneas & Huglin, P.C.

Member, Senior Resource Alliance Northwest

On January 1, 2012, a new estate planning tool became available to Oregonians–the Transfer-on-Death Deed (TODD).  The new law allows property owners to transfer real property (i.e., real estate) to one or more beneficiaries using a TODD.   The Deed must be recorded while the transferor is still living, but is revocable and does not take effect until the transferor’s death.  This means that the property owner can sell the property at any time during his or her lifetime, automatically revoking the TODD.

Bank accounts, certificates of deposit, investment accounts, life insurance and almost all other assets have long allowed the owner to designate a beneficiary and, thus, avoid probate.  Real property, often the largest asset a person owns, did not allow such a designation.  The new TODD is intended to allow for real property to pass after death without probate.

When used in the right circumstances, a TODD could save the estate money.

As an estate planner, I have several concerns about the use of  TODDs without first obtaining competent legal advice.  Some of these are:

1.  Potential for fraud and elder abuse.  An untrustworthy individual could influence an elderly property owner to sign a TODD in his or her favor.  Such a transfer may defeat the transferor’s estate planning objectives.  The persons who would otherwise have inherited the property would have to bring a court action to defeat the TODD.

2.  18-month Cloud on Title.  When an estate is probated, there is a four-month creditor claim period, and the State of Oregon must be informed of the probate proceeding.  At the end of the claim period, clear title to the property may be transferred.  If a TODD is used, the property may not be transferred for 18 months.  One of the reasons for this longer period is to allow the state of Oregon to learn of the property owner’s death and assert a claim against the property for monies the State paid out for Medicaid care.

3.  Multiple grantors may lead to inconsistent results.  If there are joint grantors, a surviving grantor may revoke the deed after the other grantor’s death.  The revocation may be inconsistent with the deceased grantor’s wishes.

A TODD may or may not be the best tool for you to use to transfer real property at your death.  Consult an estate planning attorney to learn if this option is right for you. 

Stephanie Carter, Attorney at Law, Draneas & Huglin, P.C., 4004 Kruse Way Place, Suite 200,
Lake Oswego, OR, (503) 496-5509, stephanie@draneaslaw.com

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No Comments by jeanblackburn on January 31, 2012
filed in Baby Boomer Age Wave, Education for Senior Providers, Elder Law, Family Caregivers, Financial Issues, Risks, Resources, Legislative and Political Issues, Senior Resource Alliance NW

Who Gets the Tax Deduction When Decedent’s Personal Property is Donated to a Charity?

Post by Stephanie Carter,  Attorney at Law, with Draneas & Huglin, P.C.

Member, Senior Resource Alliance Northwest

When I assist a personal representative in the probate of an estate, the question almost always arises:  Who gets the tax deduction when the decedent’s personal property is donated to a charity?

Most clients assume that the estate gets the tax deduction.  That is incorrect!  Instead, the receipt for the deduction should be passed on to the beneficiary.  So, look at the decedent’s will or trust to see who was gifted the decedent’s personal property.  If the decedent died with no estate planning in place, then you would look at the intestacy statute to see who inherits the estate.

It is also important to remember that a trustee or personal representative (“fiduciary”) should not dispose of personal property to anyone other than the designated beneficiary without authorization.  Sometimes this authorization is provided in the will or trust. 
For example, the estate planning document may give the fiduciary discretion to sell personal property and give the beneficiary the proceeds from sale.  In other cases, the beneficiaries may jointly agree that certain items may be donated (e.g., those items that do not sell at an estate sale).

Stephanie Carter, Attorney at Law, Draneas & Huglin, P.C., 4004 Kruse Way Place, Suite 200,
Lake Oswego, OR, (503) 496-5509, stephanie@draneaslaw.com

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No Comments by jeanblackburn on January 30, 2012
filed in Education for Senior Providers, Elder Law, End-of-Life Care, Family Caregivers, Financial Issues, Risks, Resources, Legislative and Political Issues, Senior Resource Alliance NW

Lack of Estate Planning Sets the Stage for Conflict

Post by Stephanie Carter, Attorney at Law, with Draneas & Huglin, P.C.

Member, Senior Resource Alliance Northwest

A surprising number of famous people have died without any form of will or trust to direct distribution of their estate.  This has often led to conflicts over the right to control the estate assets, including intellectual property, public image, and other money-producing assets.

For example, Martin Luther King Jr. didn’t have a will when he was unfortunately assassinated.  His estate, which is run now through a corporation established by his children, often struggles to determine what King’s wishes would be.  Decades after the civil rights leader’s death, his children are still trying to sort out matters related to his estate.

Reggae singer Bob Marley left no will when he died in 1981.  Over the past 30 years, the estate has been involved in multiple lawsuits.  Handling Marley’s estate was complicated by the fact that, although Marley died in Florida, he maintained his Jamaican citizenship.  Since Jamaica’s laws of intestacy were not as generous as Florida’s, his advisors decided to prepare an estate plan AFTER HIS DEATH that Marley’s widow then signed.

The Jamaican court sorted out the issue of the falsified will and removed Marley’s widow as administrator of the estate.  The court then had to resolve the issue of who had the right to use the singer’s name, likeness and image in commerce.  About 10 years after Marley’s death, the Jamaican Supreme Court decided that Marley’s heirs possessed this exclusive right.  The heirs include the widow and Marley’s children.  Unfortunately, the list of heirs does not incude siblings.  The estate is now suing Marley’s half-brother for using his image to promote a Miami music festival and restaurant, as he has done for many years.

Swedish author Steig Larsson, known for his Millennium series that includes The Girl with the Dragon Tattoo, also died without a will.  His estate passed to his heirs (brother and father with whom Larsson was not close) rather than his long-time partner, Eva Gabrielsson.  Gabrielsson has refused to release to the estate the partial fourth volume in the book series, has fought for her share of the apartment they shared, and control over Larsson’s literary estate, which she feels better prepared to administer than Larsson’s family  The dispute is still pending.

Although your estate may not be large, and you may not be famous, proper estate planning can help pass your estate to the next generation without the conflicts that occur when money and sentiment are involved.

Stephanie Carter, Attorney at Law, Draneas & Huglin, P.C., 4004 Kruse Way Place, Suite 200,
Lake Oswego, OR, (503) 496-5509, stephanie@draneaslaw.com

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No Comments by jeanblackburn on January 30, 2012
filed in Communication and Relationships, Education for Senior Providers, Elder Law, End-of-Life Care, Family Caregivers, Financial Issues, Risks, Resources, Legislative and Political Issues, Senior Care Reference Materials, Senior Resource Alliance NW, Uncategorized

Hearthstone at Murrayhill Free Seminar Series: “Making Life Choices”

Blog Post by Penny Holcomb, Community Relations Director, Hearthstone at Murrayhill

Printable Flyer

Free Seminar Series for Seniors and Families

A free seminar series is being offered by Hearthstone at Murrayhill, a retirement community located at 10880 SW Davies Road in Beaverton.  The four-week series, titled “Making Life Choices,” is geared toward seniors and their families. Seminars will be held on four consecutive Saturdays, beginning January 14, from 10 a.m. to noon.

The January 14 session, titled “What You Don’t Know…CAN Hurt You,” will feature two local professionals: Lake Oswego Attorney Christopher Young from the Pixton Law Group and Diane Childs from the State of Oregon’s Department of Consumer & Business Services. Mr. Young will focus on common legal issues faced by seniors and their families. Ms. Childs will provide tips on how to protect your money from fraud and identify theft.

Subsequent Saturday sessions (January 21 and 28, and February 4) will feature other local professionals who are familiar with the needs of seniors and their families. They will address such topics as “Creating Family Peace in Times of Turmoil,” “Selling Your Home in a Down Economy,” and “Getting Organized.”

 

 

No Comments by Mike Brunt on January 14, 2012
filed in Communication and Relationships, Elder Law, Family Caregivers, Financial Issues, Risks, Resources, Local Events, Senior Housing Options

Dispute Over Estate of Stieg Larsson Highlights Importance of Estate Planning

Post by Stephanie Carter, Elder Law Attorney with Draneas & Huglin, P.C.

Member, Senior Resource Alliance Northwest

In November 2004, Stieg Larsson, Swedish writer and journalist, died suddenly of a heart attack.  Larsson became famous after his death through the posthumous publication of his Millennium Trilogy (“The Girl With The Dragon Tattoo,” “The Girl Who Played With Fire” and “The Girl Who Kicked the Hornet’s Nest”).  Today, these books have sold more than 20 million copies in 41 countries and have been made into movies.

Larsson lived for 32 years with the architect Eva Gabrielsson.  They never married; they had no children; and he did not leave a will.  Swedish law makes no provision for common-law marriage.  Under the Swedish law of intestacy, Larsson’s entire estate was inherited by his Father and Brother, from whom he was estranged.

This disposition of Larsson’s estate sparked a bitter dispute between Larsson’s Father, Brother and Eva Gabrielsson.  Gabrielsson claimed that Larsson’s Father and Brother Larsson “were never a part of our lives” and that they are unsuited to handling his estate–including the valuable copyrights.

Larsson’s former workplace, Expo, owns the computer on which is stored the partial manuscript for the fourth book in the Millennium series.  Larsson’s Father and Brother own the contents of the computer.   However, Gabrielsson currently is in possession of the computer and has so far refused to hand it over.

Negotiations between the parties began in November 2009, but were broken off the following month when Gabrielsson announced she had declined a ”settlement” offer of about 2 million euros from Larsson’s estate (which is now valued in the tens of millions of euros).  The dispute remains unresolved.

 

Practical Application Under Oregon Law

The situation described above is unfortunately all too common.  The outcome under Oregon law would be similar to that of Sweden in this context. If a person dies with no will, the deceased person’s probate estate wil pass to members of his or her family in the order of priority listed in the statute.  If assets like bank accounts, certificate of deposit, and life insurance list beneficiaries, the asset will pass to the listed beneficiary.  If no beneficiary is listed, the asset becomes a part of the probate estate.

The problem also arises when a deceased person signs estate planning documents, but never updates them and does not regularly (every 3-5 years) check the beneficiary designations on assets that do not pass by will or trust.

It is very difficult when I have to tell a client that he or she will not share in a loved one’s estate because of outdated documents.  Do you have estate planning in place?  If so, how long has it been since you updated it?

Stephanie Carter, Draneas & Huglin, P.C., 4004 Kruse Way Place, Suite 200,
Lake Oswego, OR, (503) 496-5509, Stephanie@draneaslaw.com

 

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No Comments by conniemulligan on October 20, 2011
filed in Alzheimer's and Dementia, Baby Boomer Age Wave, Education for Senior Providers, Elder Law, Financial Issues, Risks, Resources, Legislative and Political Issues, Senior Care Reference Materials, Senior Resource Alliance NW

Senior Resource Alliance NW – Professionals to Serve Your Senior Loved Ones

Blog Post by Mike Brunt

Those who have helped an aging loved one through the later years of life know that the romanticized picture of old age as sipping lemonade on a porch swing is a far stretch from the actual experience. The realities of aging force seniors and their family members to confront physical, emotional, logistical, financial, legal, and caregiving challenges that are hard to predict, even harder to accept, and impossible to completely avoid.

What is needed is a strong group of affiliated service providers who can provide needed services and confidently refer you to other resources you can trust…enter Senior Resource Alliance NW.

 

The Senior Resource Alliance NW was formed to be an inter-connected group of professionals in the Portland Metro Area who provide essential products and services to seniors and those who care for them.

If you are working with your aging mother on estate planning and advanced directives for health care, you may also be in need of a trusted provider of in-home caregiving services or home remodeling. Or, if you are working on moving your parents into an assisted living community, you may also need help with an estate sale or the physical process of downsizing and moving. If Medicare is your hot topic, you may also be looking for financial planning or information you can trust about reverse mortgages. Whatever your need may be, the Senior Resource Alliance NW is your source of friendly, reliable professionals who will be there for you when you need them most.

Areas of Expertise:

  • Counseling Services
  • Daily Money Management
  • Estate Planning & Elder Law
  • Financial Planning
  • Geriatric Care Management
  • Home Remodeling & Repair
  • In-Home Care
  • Insurance
  • Mortgages
  • Real Estate
  • Relocation Services
  • Senior Housing

 

2011-2012 Officers for the Group Are As Follows:

President: Barbara Murphy, Neil Kelly Company
Vice President of Marketing: Stephanie Carter, Draneas & Huglin, P.C.
Chair of Marketing: Mike Brunt, Home Instead Senior Care
Secretary & Chair of Membership: Kim Megorden, KARE Transitions, LLC
Treasurer: Sandra Wagner, Frazier Hunnicutt Financial

 

Contact Information for the Senior Resource Alliance NW:

WEB: www.sranw.com
PHONE: (503) 442-3864
EMAIL: info@sranw.com

 

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No Comments by Mike Brunt on October 5, 2011
filed in Aging In Place, Communication and Relationships, Elder Law, Financial Issues, Risks, Resources, Senior Care Reference Materials, Senior Housing Options, Senior Resource Alliance NW

Washington County Family Caregiver Conference November 18

Blog Post by Deborah Letourneau, MSW
Program Coordinator of the Washington County Family Caregiver Support Program

SAVE THE DATE!

2011 Washington County Family Caregiver Conference

  • Friday, November 18, 9:00 a.m. to 2:30 p.m.
  • Tuality Health Education Center at 334 SE 8th Ave., Hillsboro
  • Call 503-846-3089 to save your space

 

There is no charge to family caregivers for admission and lunch.

Keynote Speaker:

Rev. Dr. Deborah L. Patterson, M.Mus., M.H.A.,
Executive Director, Northwest Parish Nurse Ministries
“Navigating the Tides of Change in Caregiving”

Discussions and Sessions:

  • Care– Sharing the care
  • Housing– Best options at home or in the community
  • Finances– Decisions and authority
  • Health– Living well with chronic conditions
  • Final Transitions– Nearing the end of your caregiving journey

Printable Flyer for 2011 Washington County Family Caregiver Conference

 

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4 Comments by Mike Brunt on August 23, 2011
filed in End-of-Life Care, Family Caregivers, Financial Issues, Risks, Resources, Local Events, Senior Housing Options, Senior Nutrition and Health

Financial Safety Tips To Avoid Identity Theft

Post by Laura Miller of Sapphire DMM
Member, Senior Resource Alliance Northwest

Identity theft is the fastest growing crime in the country, affecting half a million new victims each year.  Although stealing someone’s identity to obtain credit or money can cost consumers thousands of  dollars, it often goes undetected for months or even years.  Here are some tips on preventing such theft:

  • Photocopy the contents of your wallet, copying both sides of each credit card.  Keep the photocopies and account numbers at home in a safe and secure place.
  • Do not give personal information over the telephone, through the mail, or over the internet unless you have initiated the contact.
  • Shred documents and pre-approved credit applications received in your name.
  • Never use your Mother’s maiden name, your birth date, or the last four digits of your social security number as your password.
  • Do not carry your social security card, birth certificate, or passport unless necessary.
  • Do not print your social security number or driver’s license number on your checks.
  • Order your credit report at least once a year.  Reports can be obtained from:

Equifax – 1.800.685.1111 or www.equifax.com
Experian – 1.888.397.3742 or www.experian.com
Trans Union – 1.800.680.7293 or www.transunion.com

Laura Miller
Sapphire Daily Money Management
www.sapphiredmm.com

No Comments by conniemulligan on July 9, 2011
filed in Community Service, Education for Senior Providers, Financial Issues, Risks, Resources, Senior Resource Alliance NW

Reverse Mortgage Purchase Fulfills Coastal Retirement Dream

Post by Paul Pomeroy of Genworth Financial
Member, Senior Resource Alliance Northwest

Reverse Mortgage Purchase – No mortgage payments!

For many years Gilbert and Alice planned to sell their Portland home and retire to the Oregon coast.  The home equity they accumulated over the years would provide the large down payment needed on their coastal dream home.  Unfortunately, losses to their 401K and other retirement accounts, along with slumping real estate values, made their dream of retiring to the coast unrealistic.  With their shrinking equity for the down payment, and reduced retirement income, they just couldn’t afford the new mortgage payment.

Then, a friend told them about a unique purchase loan available through Genworth Financial Home Equity Access.  They still had adequate equity from selling their current home, to afford the approximately 40% down payment needed with a reverse mortgage purchase loan.  Even better, they wouldn’t have to qualify based on their income and credit.  And with a reverse mortgage they would never have a mortgage payment for as long as they live in the home.  It sounded too good to be true, so their friend called Paul Pomeroy, the local Genworth Financial reverse mortgage advisor.  After consulting with Paul, Gilbert and Alice’s dream home became a reality.

Paul Pomeroy
Genworth Financial
Home Equity Access
503-421-0798
paul.pomeroy@genworth.com
www.genworth.com/paulpomeroy

No Comments by Mike Brunt on June 28, 2011
filed in Financial Issues, Risks, Resources, Senior Housing Options, Senior Resource Alliance NW

Delegating Financial Responsibility: Trust, Transparency, Safeguards

Blog Post by J. Patrick Moore

Mr. Moore is the Administrator of the King City Civic Association. He has degrees in Mathematics and Ministry, and has worked in Community Association Management for over 8 years, and prior, in Ministry positions for over 12 years. Both his mother and mother-in-law live in Retirement Living facilities.

King City Civic Association

Fiduciary Duty

Many of us have seen the term, “Fiduciary Duty,” or “Fiduciary,” and may have a vague idea of what it means. This article is intended to give a general overview of the concept of fiduciary duty but, since I am not a lawyer, is not intended to offer legal advice.

Wikipedia states: “A fiduciary is someone who has undertaken to act for an on behalf of another in particular matter in circumstances that give rise to a relationship of trust and confidence.” Additionally, “A fiduciary duty is the highest standard of care at equity or law. A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the principal): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents.”

Many elderly people come to a point where they need someone to help them handle their financial affairs, or take them over completely. Essentially, someone who is given a Power of Attorney takes on a Fiduciary responsibility to the elderly person, to act out of loyalty to the person for whom they are taking that responsibility. It’s very important to be selective about who handles your financial affairs, since you effectively give them power over your assets (real estate, personal property, cash, bank accounts, investment accounts, retirement accounts, etc.). Choosing poorly could have a dramatic – and perhaps drastic – effect on your quality of life in your last years. There have been numerous stories in the news about people who literally lost a fortune when trusting the wrong person.

Generally, many people will look to family members first. If your family members are good, honest, upright people, that has the potential to work out great! However, not all family members are created equal. Just as you might think twice about hiring someone with their own money problems to run a cash register in a store, think twice if you have a relative who has not handled money responsibly in their own life – do you really want that person handling your financial affairs?

The same goes with your acquaintances. A neighbor or person from church who hasn’t done well handling money in the past, won’t be the right person for you. Know that there are some con artists who get involved in groups – some in clubs, others in churches – and commit financial fraud (Bernie Madoff is a great example of someone who came highly recommended from friends, but was not trustworthy).

Sometimes, it can work well to hire a professional – a lawyer or CPA –  to handle your affairs, but know that they will charge you fees for their services, and they are not cheap! If you can easily afford their hourly rates, a lawyer or CPA may be just the person you are looking for; be sure to ask how much the fees are, up front.

Transparency is a popular buzz-word in some circles. Essentially, it means that nothing his hidden from sight. If you don’t have family close by, having someone locally who handles your affairs can be a good arrangement, particularly if there is transparency in the way that your affairs are handled – with a monthly reporting of financial condition, and the bank statements being delivered directly to a trusted family member, or having a family member who has internet access to your account, so that the can download the statements directly. Many banks allow access to images of checks that have cleared, which can allow another layer of transparency.

If and when all else fails in finding someone to handle your finances, check with your local city or county services, as they may offer a service through one of their departments; or they may be able to refer you to an agency that can assist you.

Remember, handling your financial affairs is very similar to hiring someone to manage a company. Be careful to choose well, and try to put safeguards in place to ensure your financial safety.

J. Patrick Moore, CMCA
Administrator
King City Civic Association
15245 SW 116th Ave.
King City, OR 97224
503.639.6565 Phone
503.639.8815 Fax
http://www.kingcityowners.com/

No Comments by Mike Brunt on March 24, 2011
filed in Family Caregivers, Financial Issues, Risks, Resources, Practical Tips and Resources

Assessing Financial and Emotional Effects of Inter-Generational Living

Blog Post by Mike Brunt

Why Families Are Living Together
The reasons different generations decide to live together are as varied as the families themselves, but three factors often come into play:

  • Shared Caregiving: Families are coming together to share caregiving duties — either an elderly loved one needs care or an older adult is providing care to his or her grandchildren.
  • Physical or Emotional Support: Seniors may feel the need for the physical or emotional support of extended family after losing a spouse, dealing with health issues, or having problems maintaining their property.
  • Finances: The economy is affecting everyone, especially seniors living on fixed incomes. Moving in with family can sometimes save money on food, utilities, and other essentials.

Whether your senior loved one should live with you or stay in his or her own home is an emotionally charged decision. But it’s important to understand both the financial and emotional impact, as well as some of the options available to you.

Home Instead Senior Care and Adriane Berg, author of more than 13 books on personal finance and a founder of the National Academy of Elder Law Attorneys, have combined their experience to create the Too Close For Comfort?® calculator. This tool uses 15 questions to walk you through basic budget items, major issues, and some often-overlooked matters that could affect your decision.

More about having aging parents live with you in your home.

No Comments by Mike Brunt on March 23, 2011
filed in Communication and Relationships, Family Caregivers, Financial Issues, Risks, Resources, Practical Tips and Resources, Senior Housing Options

What You Need to Know About Long-Term Care

Blog post by Mike Brunt
Content from the Society of Certified Senior Advisors

Get more info and download the free guide.

About 70 percent of people over age 65 require long-term care services to some extent, and the likelihood of needing care increases even more as you age. Yet the cost of long-term care often exceeds what the average person can pay from their income and other government programs. It is more important than ever for everyone, including seniors, their families and those professionals who work with them, to understand and plan ahead for long-term care.

The Society of Certified Senior Advisors has created a new comprehensive white paper on long-term care, What You Need to Know About Long-Term Care, that will provide you with invaluable information, including:

  • The importance of long-term care
  • What options for services are available
  • The costs associated with long-term care
  • How to determine whether long-term care insurance is right for you
  • Tools and guides to help you set up a plan

 

Get more info and download the free guide.

No Comments by Mike Brunt on February 15, 2011
filed in Education for Senior Providers, Financial Issues, Risks, Resources, Practical Tips and Resources, Senior Care Reference Materials

Founder of Home Instead to Speak in Portland on February 10

Event Now Passed: See Photos on Facebook

 

Blog Post by Mike Brunt

Those of you who have been following this blog for the past year probably by now recognize the name “Paul Hogan.” Paul and his wife, Lori, founded Home Instead Senior Care 17 years ago and last year wrote the USA Today Bestseller, Stages of Senior Care: Your Guide to Making the Best Decisions.

Mark Your Calendars!

On February 10, from 4-6 p.m., you are invited to hear Paul speak at the Embassy Suites Hotel in downtown Portland. He will address long-term care professionals and family caregivers about the range of support services and resources available to seniors as they age. Paul’s presentation draws from ideas presented in the book including senior care options, pros and cons of each, relative costs, pitfalls to avoid, when each option is most appropriate, and how to deal with family conflict and caregiver stress.

CEU UPDATE
This event is approved by the Oregon Nursing Home Administration Board for 1 general hour of CEU credit. 

Attendees will also receive a free, signed copy of the book, Stages of Senior Care, and will get a chance to chat with Paul for a few minutes. 

Here are some examples of how Paul is a thought leader in the senior care industry:

http://seniorcare2share.com/2010/11/seniors-and-the-information-gap/
http://seniorcare2share.com/2010/08/caring-for-the-aging-time-to-create-a-new-model/

On a Personal Note…

Paul came to Bend, Oregon last year for a similar event where he spoke to long-term care professionals and adult children of aging parents. I decided to make it a father and son adventure with my just-turned-four-year-old boy, Henry. It was so much fun. Early in December, when I found out that Paul would be here for this event on February 10, I said to Henry, “Paul Hogan is coming to town.” He immediately responded, “Like Santa Claus?”

So, if you want to feel the excitement that a child feels at Christmas, just attend this event. You will be glad you did. 

No Comments by Mike Brunt on January 18, 2011
filed in Education for Senior Providers, Family Caregivers, Financial Issues, Risks, Resources, Practical Tips and Resources, Senior Care Reference Materials

Spouse on Medicaid? You May Need to Change Your Will.

Post by Elder Law Attorney, Geoff Bernhardt
Article on Geoff’s Blog

Wednesday, January 5, 2011

Legislative Alert! Do You Have a Spouse on Medicaid? Oregon Law Now Requires You to Change Your Will

According to the State of Oregon, the average cost of long-term care is now $7,663 per month. Paying for this care for very long is beyond the means of most middle-class families. In an effort to obtain good care for an ill spouse and preserve enough assets for the healthy spouse to live independently, many people in this situation apply for assistance with care costs through the Medicaid program.

Once the Medicaid application is approved, most people neglect to consider a crucial question: What happens if the healthy spouse passes away before the ill spouse? While Medicaid allows an ill spouse to have only $2,000 in assets, a healthy spouse is permitted to maintain additional assets, as much as $109,560 plus the family home, for his or her support. What will happen to these assets if the healthy spouse dies first?

The answer depends on the will of the healthy spouse. Mostly, we see that the healthy spouse has made no change at all to an old will leaving all assets to the ill spouse. In that event, if the healthy spouse dies first, all assets pass to the ill spouse. This causes two problems. First, the ill spouse will immediately lose eligibility for Medicaid benefits. Second, due to illness, the ill spouse is usually unable to manage the inheritance. Sometimes the court has to appoint a conservator to manage the ill spouse’s inheritance and pay the bills. All of this results in large expenses for the ill spouse and extra hassle for loved ones.

Sometimes, the healthy spouse will go to the other extreme. Instead of leaving everything to the ill spouse, the healthy spouse signs a new will leaving nothing to the ill spouse. The problem with this is, under Oregon law, you cannot completely disinherit your spouse. An ill spouse has the right to receive a portion of the healthy spouse’s estate. If the ill spouse is on Medicaid, the State of Oregon will intervene in the healthy spouse’s estate, and the court will require that some of the healthy spouse’s estate be set aside for the ill spouse. As of January 1, 2011, that amount is being increased to one-third of the healthy spouse’s estate.

As a practical matter, this means that every healthy spouse who has an ill spouse receiving Medicaid benefits needs to update his or her will to comply with this change in Oregon law. At a minimum, one-third of the healthy spouse’s estate should be left in a support trust for the ill spouse. Remaining assets can be left in a special needs trust for the ill spouse (these funds will be protected from the Medicaid spend-down) or to other beneficiaries.

So, if you have a spouse in long-term care who now receives, or who may in the future receive Medicaid assistance, speak with an experienced elder law attorney to discuss bringing your will into compliance Oregon law. Prompt attention to this issue could save your family tens of thousands of dollars and avoid delays in Medicaid eligibility. Most importantly, updating your will helps to insure that the ill spouse will always receive good care and has the best possible quality of life.

No Comments by Mike Brunt on January 17, 2011
filed in Education for Senior Providers, Elder Law, Financial Issues, Risks, Resources

So, What’s a Daily Money Manager?

Blog Post by Laura Miller of Sapphire Daily Money Management

Can’t keep the checkbook balanced? Don’t like bills or forget to pay them? Now you can hire a daily money manager. Lean how to find one…

Many senior Americans struggle with household money management, specifically paying their monthly bills.  For some, physical conditions such as poor eyesight or arthritis can make simple tasks of writing checks and opening the mail difficult. Others are confused, forgetful and/or disorganized all potentially leading to past due notices, late fees, service fees, canceled policies, and lost documents.

Today, almost all of us are drowning in official-looking solicitations for credit cards, insurance, fraud protection and financial assistance from every institution in which we have an account. In the past, having several bank accounts was once considered prudent, but now has turned into a junk-mail nightmare. Junk mail can look so official it begs a reply which can often lead to unknowingly opening another credit card account. Charities, even the ones near and dear to our hearts, solicit contributions on a weekly basis.  Renting and selling mail lists has become a huge revenue generator for many companies including banks, credit cards companies, mortgage companies, telephone companies, charities and others.

Now, we can hire a Daily Money Manager to provide assistance to people who have difficulty managing their personal monetary affairs. This service offers a cost-effective way for clients to get assistance with organizing, bill paying, balancing checkbooks, and reviewing statements from a trusted source. A Daily Money Manager does not replace the services of other professionals, such as CPAs, banks, financial planners, and attorneys, but assists clients with daily affairs and helps maintain records and information that is essential for these professionals.

Services can include:

  • Bill paying, preparation of checks, deposits
  • Balancing checkbooks and organizing bank records
  • Organizing files for tax and other purposes; general organization
  • Phone calls concerning incorrect bills, or to ascertain relevant information
  • Deciphering insurance information and assistance with claims
  • Setting up automated accounts or other means to efficiently handle household finances
  • Getting a handle on junk mail
  • Referrals to needed professionals, such as CPAs, attorneys, financial professionals

 

Your first visit with a Daily Money Manager will be an informational interview, so you can get to know them and they have a clear understanding of your needs. Together, we determine an effective plan to meet the individual needs. Typically, the DMM will visit once a month or every other week to review bills, incoming mail, insurance papers, and help the client write the checks, balance the check book, and organize and file papers.

How do you find a daily money manager? Follow this advice:

  • One of the best places to start your search is with the Website of the American Association of Daily Money Managers, where you can find a list of money managers by state of residence.  WWW.aadmm.com.
  • Before meeting face-to-face with someone, ask if they charge for the first session. Some money managers offer a free consultation, which lets you make a more informed choice about whether daily money management is for you.
  • Ask for references from people who have used their services before, and check those references out. You are entrusting your financial health to that individual, make sure that trust is warranted.
  • Make certain the DMM you’re considering is insured and is willing to work with another individual such as a lawyer, CPA or an accountant on your behalf.
  • Get a referral from someone in the financial services field, such as your attorney, tax adviser or accountant.
  • Go with your gut — it may be the most important thing to do, Make sure you like and instinctively trust this individual. If it doesn’t feel right, it isn’t. It’s got to be a good fit. 

 

Call Laura Miller at 503-654-9200 or e-mail laura_sapphiredmm@comcast.net   Website: http://www.sapphiredmm.com/  to download a brochure.

No Comments by Mike Brunt on November 23, 2010
filed in Financial Issues, Risks, Resources, Practical Tips and Resources

Caring for the Aging: Time to Create a New Model

Blog Post by Mike Brunt
Content is direct text of a white paper written by Paul Hogan, co-founder of Home Instead Senior Care, and one of the nations thought leaders on how to make sure health care reform includes providing for the care of America’s aging population.

Link to full text of Hogan’s white paper:
Caring for the Aging: The Old System is Obsolete, Time to Create a New Model

Introduction

Rational, economical, sustainable reform of America’s healthcare system is a national imperative. There are many parts to achieving reform, but no plan will be complete if it fails to address the issue of providing for the care of America’s aging population.

Indeed, in view of the impending “age wave” of baby boomers that is descending upon the nation, it is not too much to say that senior care must be one of healthcare reform’s highest priorities. The current unstructured system for senior care evolved haphazardly during the 20th century and is hopelessly inadequate to the challenges that lie ahead. For decades, it consisted of what one might call a binary situation: You cared for mom as long as you could, then put her in a nursing home.

Today, a range of options has grown up, from seniors aging in their homes while they are supported by nonmedical caregivers who provide companionship and help with daily chores, to assisted living facilities, to nursing homes – with many choices in between.

Unfortunately, government regulations and financing have failed to keep pace with this dramatically changed landscape. It is necessary, therefore, as part of any healthcare reform plan, to develop a comprehensive national policy for senior care.

When properly done, the policy will maximize the choices that seniors and their caregivers have while keeping costs manageable for all the parties involved. It will insure that the care is safe and well-regulated. It will keep seniors fully informed about their many options. And it will strive to maintain a supply of caregivers that is sufficient to meet the
nation’s needs.

Link to full text of Hogan’s white paper:
Caring for the Aging: The Old System is Obsolete, Time to Create a New Model

1 Comment by Mike Brunt on August 31, 2010
filed in Education for Senior Providers, Financial Issues, Risks, Resources, Legislative and Political Issues

“Elder Law, Guardianship, and Special Needs Planning” by Geoff Bernhardt

Excerpts from “Elder Law, Guardianship, and Special Needs Planning”
by Geoff Bernhardt, an elder law attorney in Portland, Oregon. 
His contact information can be found at www.elderlawpdx.com.

Full text of this article can be found online at http://www.elderlawpdx.com/elder-law-articles.html

…A power of attorney must be signed by a person who is legally competent.
This means the signer must have the ability to understand the nature and importance of the document. If someone already has Alzheimer’s Disease, or dementia, or has suffered a stroke, it may be too late to sign a power of attorney. Therefore, it is important to sign a power of attorney while a person has mental capacity to understand the document.

…The main advantage to a conservatorship is court oversight, and the surety bond.
If the ill person does not have a trusted person to manage finances using a power of attorney, the conservatorship may be preferable to a power of attorney.

…In Oregon, there are three documents commonly used to specify your wishes about health care decisions in the event you are not able to communicate those wishes:
a living will, a durable power of attorney for health care, and an advance directive for health care.

- Living Will.
Also called a Directive to Physicians, a living will is a document stating that you do not want life-sustaining treatment if two doctors certify that you are in a terminal condition, and that life-sustaining treatment will only postpone the moment of your death. This document was widely used in the late 1980’s and early 1990’s. The main problem with a living will was that it did not appoint someone to review medical records and communicate your wishes about end-of-life care to medical staff.

-Durable Power of Attorney for Health Care.
The Durable Power of Attorney for Health Care was designed to supplement the living will. This document allowed a person to appoint an agent to communicate with health care providers and make decisions about end-of-life care. The main problem with this document is that it expires seven years after it is signed. A secondary problem is that the form was ambiguous, requiring the person to write the word “yes” to indicate that he or she did not want life support or tube feeding.

- Advance Directive for Health Care.
The Advance Directive for Health Care was authorized by the Oregon legislature in 1993. This form combines the best features of the living will and the power of attorney for health care. It allows you to appoint a health care representative to make decisions about health care for you in the event you are unable to do so. It also lets you give instructions to your health care representative so he or she will have a clear understanding of your wishes. The form does not automatically expire after a certain period of time, and can be good for your entire life. It also allows you to make additional comments about end-of-life decisions. An advance directive for health care is the best way to ensure that your wishes about health care would be respected if you faced a life-threatening illness or injury.

…A POLST form and guardianship are ways in which others can make health care decisions for you.

- POLST
Physician’s Orders for Life-Sustaining Treatment. This is a document on bright pink paper that can be placed in a person’s medical chart. It sets forth physician’s orders concerning certain types of end-of-life care. It must be signed by the doctor. Some people obtain completed POLST forms and post them on the refrigerator so they can be seen by paramedics in the event of a medical emergency.

- Guardianship.
A guardianship is a court order allowing one person to make health care and placement decisions for an incapacitated person. If you have not appointed someone to make health care decisions for you (for example, by signing an advance directive for health care), it may be necessary to seek the appointment of a guardian. People who suffer from dementia, Alzheimer’s Disease, or other illnesses affecting the ability to make important decisions often need the assistance of a guardian to make placement decisions. A guardianship is expensive – it can cost several thousand dollars to secure the appointment of a guardian by the court. It is far better to rely upon the advance directive for health care to appoint someone to make health care decisions for an incapacitated person. Even if you sign an advance directive for health care, a guardianship will sometimes be necessary to make placement decisions. 

2 Comments by Mike Brunt on April 23, 2010
filed in Elder Law, Financial Issues, Risks, Resources

Helping Seniors Avoid Financial Abuse

Blog Post by Mike Brunt

As I have provided in-home caregivers for seniors in the past five years, I have seen firsthand how many schemes and scams there are intended to separate seniors from their money. I have presented to groups on the topic of helping seniors avoid financial abuse over 20 times now, and I never cease to be amazed by how prevalent this crime is and often how unreported it goes. 

I have been encouraged though, by the media attention this topic is now getting and by the many groups that are now working to educate seniors about how to protect themselves from cons, schemes, and scams…whether they are by phone, mail, or in person. Unfortunately, many seniors are taken advantage of financially even by those they may know and have a close personal relationship with.

My presentation is structured around a 15-minute video created by the California Department of Justice. It is a very engaging, short film that serves as a wake-up call to seniors and those who care for them that the financial abuse of seniors is a crime. The video gives many practical tips on how seniors can steer clear of financial scams. These are summarized below.

If you are interested in having me do this presentation for your group, or if you would like a free copy of the video for your own education efforts, please call me at 503-530-1527 or email me at mike.brunt@homeinstead.com. 

 

How to Recognize and Avoid Financial Abuse:

Overview
-Predators act sincere and appear trustworthy.
-Victims come from all ranges of culture and class. Seniors are targets because that’s where the money is.
-Denial is a problem…it can happen to you.

Predators Are From Two Groups
-People you don’t know

  • They will seem like very nice people.
  • They will be kind, charming, and convincing.
  • They will get TOO friendly and will pry about personal details.

-People you do know

  • Family members who intimidate and manipulate.
  • Friends or caregivers who think they are entitled to your money.

Red Flags
-Money missing from wallet
-Isolation tactics
-Pressure to sign papers

Identifying Scams
-Prizes and lotteries

  • They ask you to send money before you receive your winnings.
  • Don’t ever send money first.
  • Ask yourself…did you buy a ticket?

-Home improvement

  • They con you into something you don’t need. They collect money then disappear before providing promised services.

Prevention Steps
-Involve trusted family members before acting on mail or phone offers.
-Don’t let strangers in your home.
-Call Adult Protective Services and ask for help.
-Don’t be afraid to be rude when you need to be.
-Learn all you can about the problem.
-Be alert to the signs it might be happening to you.
-Share what you learn with other seniors.

4 Comments by Mike Brunt on March 30, 2010
filed in Financial Issues, Risks, Resources
At Home Instead Senior Care, we provide non-medical services to senior citizens in their own homes or apartments. Our services include companionship, light housekeeping, meal preparation, medication reminders, escorting to appointments, personal care, and dementia care. We help seniors maintain their independence and help them stay safe, healthy, and happy at home, wherever home may be.