Raleigh Elder Law | Required Post about Celebrity Estate Planning

Articles detailing the "failings" of celebrity estate plans is one of the more common "click-baitish" news items you'll see related to estate planning.  The one I saw today related to Lou Reed, his 34-page will, and the fact that he should have done a revocable trust.  The article can be found here.

I bring this up for a few reasons:

1. (shamless plug) I welcome all celebrities that would like me to handle their estate planning. (/shameless plug)
   
2. Revocable trusts are amazing and affordable estate planning tools.  Admittedly, any revocable trust drafted for the estate of someone like Lou Reed wouldn't be run of the mill, and would likely have made his 34-page will look like a blog post, but the importance of one can't really be overstated.  If you have an estate that you'd like to keep private, or have real property in multiple states, or would like to provide for family members (like Mr. Reed wanted to provide for his elderly mother), a revocable trust can make the administration of your estate much easier.  BUT:
3. Just because someone does a will instead of a trust doesn't mean their estate plan is bad, or incomplete.  It is quite possible that Mr. Reed sat down with his estate planning attorney, and the attorney began discussing trusts, and Mr. Reed threw up his hands and said "I'm not interested in trusts -- I just want to do a will."  To which the attorney most likely protested, but at the end of the day, it's the client's decision.  And if Lou Reed only wanted a will, that's the end of it.  It's much better than doing nothing at all and leaving it to the laws of the State of New York.  His wishes were met through the will.  Was it the cleanest or best method?  Not in my opinion.  But just because you don't do a trust doesn't mean your estate planning was awful.  The key is having a plan, and that's something we can help with.

Raleigh Elder Law | Does a Will have to be Recorded?

I'm trying to dedicate a decent amount of this blog to common questions that our Clients have when they meet with us, since they are likely questions many folks have.  One of those questions relates to "recording the will" and often comes in one of these forms:

"Are you going to record the will?"

"Mom [who is alive] has a will, but it was recorded by the lawyer that did it."

"Do I have to record the will with the Register of Deeds?"

A will does not have to be "recorded" to be valid while a person is living.  The only time a will needs to be "recorded" is following the death of the person that created the will, at which point the Will may need to be filed with the Clerk to start the probate process.  Until that time, however, provided that the will was properly executed and witnessed, the original will simply needs to be kept in a safe place.

Folks that talk about wills being recorded aren't incorrect, however.  The Clerk of Superior Court in each county has a depository for original wills.  For a small fee, any person may take their original will to the Clerk, and ask that it be deposited with the Clerk for safekeeping.  If this has been done, the Clerk will give the person depositing a will a receipt in exchange for the will.  That receipt will outline whose will has been deposited, the date on which it was deposited, and the County where it was deposited.  Under the statute, once the will has been deposited, the only people that may access it while the person who created the will (the "Testator") is living are the Testator, their duly-authorized agent, or their attorney.  This isn't technically "recording" the Will, but it is deposited somewhere

Some attorneys may do this as a matter of course.  Clients are always free to do this as well.  I normally advise clients that it is available, but is not required.  So, to answer the question, "does a will have to be recorded", the answer is "it depends."

Raleigh Elder Law | Year's Allowance

One of the really helpful estate administration forms that folks may not know about is what's called a "Year's Allowance".  It can be downloaded from our website here. 

The "Year's Allowance" form is something we use a lot when it comes to dealing with the estate of a spouse who has died and left a widow or widower.  In situations where the couple had most of their assets set up jointly or had named each other as beneficiary, there often is very little that needs to be transferred from the deceased spouse to the surviving spouse.  Most often, it's things like vehicles or small checks made payable to the deceased spouse as reimbursement for insurance premiums.

The Year's Allowance allows for the assignment of up to $30,000.00 in personal property (vehicles, money, etc.) from the deceased spouse to their surviving spouse, without having to go through probate.  To the extent that the value of the property in the name of the deceased spouse is $30,000.00 or less, it can be transferred to the surviving spouse by simply completing one form and having it certified by the Clerk of Court in your county.

An example: Joan dies in 2014, leaving her husband, Bill.  Joan had an IRA, of which Bill was the named beneficiary.  Joan and Bill had a checking and savings account, of which they were joint owners.  Joan had a 2010 Honda Accord (worth $12,000.00) that she owned solely.  Their home was owned as tenants by the entirety.

When Joan died, Bill was left wondering what would need to be done from a probate standpoint to transfer Joan's assets to him.  Fortunately for Bill, out of all the things listed above, he only needs to worry about the 2010 Accord.  The IRA has Bill listed as beneficiary, meaning he need only file a death claim with the company managing the IRA.  The jointly-owned checking and savings accounts can be closed by Bill and reopened in his name alone without any legal authority.  Joan's interest in the home automatically transferred to Bill upon Joan's death because they owned it as tenants by the entirety.  The only thing that Bill can't transfer without legal authority is the car.

Bill would simply fill out the Year's Allowance form, sign it and have his signature notarized, and take it, along with Joan's death certificate and her original will (if she had one) to the Clerk of Court.  (There is a fee associated with the Year's Allowance -- currently it is $8.00 -- so Bill needs cash as well).  Once there, the Clerk will review the documentation, and assuming everything is complete, he or she will sign it, place a raised seal on it, and hand it back to Bill.

From there, Bill would take the certified Year's Allowance, along with the title to the Accord, to the DMV, present both, and ask that title be transferred to him.

What this means is that Bill has completed the administration of his Wife's estate with one form. Behold, the magic of the Year's Allowance!

Raleigh Elder Law | Common Probate Pitfalls

We have a lot of clients that come in and ask the question, "What is probate?"  Probate is the process by which a deceased person's will is offered to the court (in North Carolina, this occurs in front of the Clerk of Superior Court) for approval and by which the estate is administered in accordance with the terms of the will.  There is plenty of information out there about probate and what it is (here and here, for example), so there's no need to go over it again.  What I think would be beneficial is a discussion of the most common mistakes people make in the probate process.

Common Pitfall #1: Failing to transfer all property out of the name of the decedent.  When it comes time to close the estate, it's important to make sure that all items in the name of the deceased person have been closed out and/or transferred.  Many times we will see executors come into our office because they failed to transfer title to a vehicle or close out a bank account.  If it's something that wasn't listed on the estate's 90-day inventory, it can fall through the cracks, at which point the estate will have to be reopened in order to transfer those items.

Common Pitfall #2: Paying expenses related to a home or land owned by the deceased person out of the estate.  This is any easy trap to fall into, because it seems like a no brainer that an Executor would pay things like power bills, water bills, and tax bills for a home or land that a deceased person owned.  However, this is not the case.  Under North Carolina law, legal title to real property is vested in the deceased person's beneficiaries on the day the person dies, and with legal title comes responsibility for all expenses related to the property.  From that point on, the beneficiaries are responsible for all the bills.  Some counties will allow expenses related to real property to be paid from the estate with the agreement of the beneficiaries of the estate, but it varies, and could result in the funds paid out needing to be paid back to the estate.

The best thing is for an executor to inform all the heirs of real property in writing that they are responsible for the expenses of the property going forward, and to not pay those expenses from the estate.  It will just make things easier when it comes time to close the estate.

Common Pitfall #3: Paying bills along the way instead of waiting.  It would seem counter to the Executor's job to wait on paying bills.  Your job is to wrap things up, and paying bills is part of that job.  However, North Carolina law states that if there are not enough assets in a deceased person's estate to pay all creditors fully, the claims of creditors have to be prorated.  We have seen many times where an executor, in an attempt to keep bills paid and avoid ongoing billing, will pay things along the way, and then when it comes time to settle the big bills, there isn't enough money.  This is a problem because the estate cannot be closed until the bills of the decedent are satisfied in accordance with the law, and if there isn't enough money in the estate because bills have been paid incorrectly, the Executor may be put in a situation where they have to reimburse the estate for those incorrect payments.

In North Carolina, following a person's appointment as Executor, the Executor is to run what's called a "Notice to Creditors".  This notice, run in a newspaper in the county where the person died, lets everyone know that the person has died, and tells them that if the deceased person owed them money, they have 90 days in which to make a claim with the Clerk of Court, or their claim will be forever barred.  (Note:  There are exceptions to this rule as it relates to "known" creditors, so if there's a debt you, as Executor, know about, and they do not file a claim, you can't say they are barred.  If you run into a situation where you aren't sure about a claim's validity, contact an attorney).

You should always wait until this 90-day period has run before you start paying estate bills.  This will ensure that you're paying things correctly, and will ensure that if there isn't enough money in the estate, that claims are properly prorated and satisfied as fully as possible.

There are certainly other areas that can cause problems for Executors, but these are the ones we see in our office most often.  If you're considering navigating the probate process on your own, keep these points in mind -- they may save you a lot of extra work down the road.

Raleigh Elder Law | Medicaid Estate Recovery Claim Filed -- Now What?

In a previous post, I indicated that I would be following up on the process when a Medicaid Estate Recovery claim can't be or isn't waived.  Time to follow up!   Once it is determined the claim can't be waived, the estate of the deceased Medicaid recipient has a claim against it that the State of North Carolina would like to have satisfied.

However, just because they have a valid claim doesn't necessarily mean that it's going to get paid.  The same could be said of any claim made against an estate.  In order for claims to be paid, there must be assets in the estate with which to satisfy said claims.  No assets in the deceased recipient's estate?  Then most likely, Medicaid (and any other creditor) won't get paid back.

Let's look at the process, but let me start by making an important point: estate recovery liability does not, in North Carolina, extend beyond the Medicaid recipient.  If your husband, mother, father, brother, or best friend was receiving Medicaid, and you are named as executor of their estate or get appointed as administrator, and you get an estate recovery notice, do not panic.  Medicaid will not be coming after you personally.  They are only coming after the estate.  Your job is to just make sure things get done correctly.

So what happens?  The deceased person's estate is opened (more on that in a later post), and the executor or administrator takes stock of what the person owned.  If they were receiving Medicaid, chances are they didn't own much (for an overview of what a Medicaid recipient can have, click here), and if they owned anything of significant value, it was most likely real property.  Real property that passes to heirs by virtue of either a will or intestacy is considered part of a person's estate, and can be claimed by creditors for payment of debts.  However, because of the way the law treats real property upon death, it must be "reclaimed" (for lack of a better term) by the estate to be sold to satisfy those claims.

The executor or administrator would therefore be responsible for filing the proper petitions and paperwork for reclaiming the real property so that it can be sold.  Once this process is complete, the real property is sold, the proceeds from the sale are added to the estate, and debts can be satisfied.

Quick example: Bob received Long Term Care Medicaid Assistance for three years prior to his death.  He is a widower, and his will names his two children, Lauren and William, as beneficiaries.  Lauren is the Executrix.  Bob passes away, and Lauren opens her father's estate.  Her father's estate consists solely of his home, valued at $125,000.00.  Not long after opening the estate, Lauren receives an Estate Recovery Claim in the amount of $70,000.00.  Her father also has a credit card bill totaling $12,000.00.

Lauren realizes she has $82,000.00 in debts that must be paid, and the only asset with which to pay those debts is the home.  Lauren hires an attorney, who files the necessary paperwork and follows the necessary process to reclaim her father's home for the estate.  This means that the home, which was supposed to go to Lauren and William, no longer belongs to them, but rather belongs to the estate.

At this point, Lauren hires a realtor who lists the home for sale.  After a month or so, Lauren receives a couple of offers, the highest of which is for $80,000.00.  Lauren, on the advice of the realtor, accepts the offer.  The offer is approved by the court, and the sale takes place, meaning that Bob's estate now has $80,000.00 in cash with which to pay debts.  As you can see, this isn't enough money to pay both debts.  So what must Lauren do?

North Carolina's General Statutes outline how debts are to be satisfied in situations where there isn't enough money to pay them all in full (that statute can be found here).  I will try and cover priority in a later post, but under the law, the Estate Recovery Claim has priority over the unsecured claim of the credit card company.  When a claim has priority, it gets satisfied in full (if there are enough funds to fully satisfy it) before the claims over which it has priority get satisfied.

In this case, Medicaid's Estate Recovery Claim would be satisfied in full, and the credit card company would receive the remaining $10,000.00.  The credit card company must take this amount in satisfaction of its claim in full -- it has no other recourse.

There are ways to avoid the inclusion of real property in a decedent's estate, even after a person has qualified for Medicaid.  Additionally, there are details related to the probate process that I either glossed over or skipped in the interest of making the post as brief as possible.  As always, consult with an attorney (like me!) if you are facing any of these situations.

Raleigh Elder Law | Is the Medicaid Look Back Period Five Years or Seven?

This is another question that's started cropping up lately in client meetings.  I've had many clients come in under the impression that the look back period for transfer of assets under the Medicaid rules is now seven years.  Much to their relief, this is not the case.

The last change related to an increase in the look back period came in 2005 with the Deficit Reduction Act.  Provisions in that Federal law required the look back period to move from three years to five years for all transfers, beginning in 2007.  That transition was not fully implemented until 2012.  Which is to say, changes to the look back period don't happen overnight.

So don't fret.  If you hear someone say the look back period is seven years, let them know they've obtained some incorrect information, and tell them to consult with an Elder Law attorney familiar with Medicaid and the look back period before they make a mistake. 

Raleigh Elder Law | On Cynicism, Dementia, and Irony

Apparently a new study published in the online publication Neurology has found a correlation between cynicism and dementia.  Newsweek published an article on the study, and highlighted the main finding, which seems to be this: there is strong evidence that consistent social interaction helps maintain cognitive functioning as a person ages, and cynical people tend to shy away from consistent social interaction. Therefore, cynics don't participate in the types of settings that provide cognitive stimulation, thereby removing one of the bolsters to cognitive functioning. 

Ironically, while cynics may chose to avoid social interaction, many other elderly members of the population crave social interaction, but are deprived, either because of health or a lack of transportation.  These folks are therefore at risk of losing the same bolster that cynics may knowingly avoid.

Many local elder groups have group activities, and many counties in North Carolina provide transportation services for the elderly.  Additionally, your church or other civic group may have teams that visit people who are unable to get out.  Finally, local programs like Meals On Wheels also provide an opportunity for social interaction for the elderly.  Take time to research your area and see what programs are available if you are interested in helping provide that link between an elderly person and society.

For folks in the Raleigh area, here are some good places to get started:

http://www.resourcesforseniors.com/
http://www.wakemow.org

Important note: dementia is not the actual disease; it's a term used to describe the "symptoms associated with a decline in memory or other thinking skills severe enough to reduce a person's ability to perform everyday activities."  The Alzheimer's Association has a very good overview of dementia and the different diseases here, which is where the above definition came from.  There is no specific test for determining whether someone has dementia or one of its diseases.  If you or a loved one are having or suspect issues that are affecting your ability to conduct day-to-day activities, please consult with your physician. 

Raleigh Elder Law | How Does Estate Recovery Work?

At least once a week, I have a Client that will ask about Medicaid's Estate Recovery Program.  Admittedly, they don't use those words.  It's more commonly phrased in the way in which they've heard about it: the government selling the house or taking everything you've got.  This generalization isn't necessarily incorrect, but it oversimplifies the issue.  Hopefully this post will provide some clarification.

Estate recovery is the law, and it's codified in the North Carolina General Statutes in Chapter 108A.  A link to the statute is here.  What the statute says in simpler terms is that anyone who receives one of six types of medical care that is paid for by the North Carolina Medicaid Program will open themselves up to a claim being filed by the Program to recover the amount paid for those services on behalf of the individual.  This includes nursing home services and home and community-based services.

So how does this work in practice?  Once a person is approved for and begins receiving medical assistance that is paid for, in part, by the North Carolina Medicaid Program, they start running up a tab with the Program.  The program tracks expenditures made on behalf of the individual, and when the person receiving services dies, a letter is sent to the recipient or person responsible for the recipient that basically says "you were made aware that estate recovery was a possibility when you applied for services. Since you have passed away, your estate may be subject to estate recovery."  That letter will also normally set out the amount paid on behalf of the recipient, and what the State believes is in the estate of the recipient.  This letter is not the actual claim, however.  The actual claim will follow, and will include a copy of the tab the recipient ran up during their time in care.

Now, there are a few key points to remember.

1. If the deceased recipient's estate has a value of less than $5,000.00, the State will waive its right to estate recovery.
2. If the recipient's tab is less than $5,000.00, the State will waive its right to estate recovery.
3. If the recipient is survived by a spouse, the State will waive its right to estate recovery.

If any of these situations applies, you do not need to be concerned about estate recovery.  It is important to send a response to the State, however, outlining why they should waive their claim if the reason is either 1 or 3 above.

If one of these exemptions does not apply, you will face an estate recovery claim that will have to be satisfied.  I will outline the process for satisfying those debts in a later post, but the final important point to remember about estate recovery is this: the state cannot get any more out of your estate than it paid on your behalf.  So if your home sells for $300,000 after your death, and the State paid $50,000 on your behalf for medical services, the State is only entitled to $50,000 -- not the full amount.

So back to that oversimplification: the state will take your house, or the state will take everything you have.  The State will not take your house.  The State's claim will likely result in it being sold (depending on the decision of your Executor -- which will be discussed in my next post), but it cannot take the full amount of sale proceeds unless the sales price is only equal to or is less than the amount it paid on your behalf.

There are ways to avoid estate recovery completely with proper planning.  Call our office today and set up a time to discuss your options if you're facing a long-term care situation.

Raleigh Elder Law | How To Shop for Long Term Care Insurance

NPR had a segment on Morning Edition this week about shopping for long term care insurance.  A link to the story and the audio is here, and it has some useful information, but I really like it because within the article is a link to a federal website that shows the average annual cost of care on a state-by-state basis.  Since we're a Raleigh, NC and Burlington, NC firm, however, I want to point out the costs for North Carolina:

A private room in an assisted living facility will cost up to $36,000 per year, or $3,000 per month.

A semi-private room in a nursing home facility will cost anywhere from $64,000 to $74,000 per year, or $5,300 to $6,100 per month.

A private room in a nursing home facility will cost anywhere from $72,000 to $86,000 per year, or $6,000 to $7,100 per month.

Think about these numbers, and then think about what you are either receiving in retirement, or expect to receive in retirement.  Do you have enough to cover that cost of care?  How much does it leave your spouse with per month in income?  Chances are, not much.  That's why it's imperative that you consider these issues when you are looking at your estate plan and your finances.  What can you do to help supplement your income to cover the cost of care?  Have you checked on long term care insurance?  If you have and you either don't qualify, or you can't afford it, have you talked to an attorney that focuses their practice (like us!) on estate planning and long term care issues?

Don't let these things creep up on you.  Plan!

Raleigh Elder Law | Long Term Care Insurance?

We don't sell long-term care insurance through our office, but we've seen the difference it can make for clients who have it in place when they come into to see us about long-term care issues.  This article provides a good overview of the current state of long-term care insurance.  I'm not going to rehash the contents of the article in this post, because I think the article does a great job of explaining things.

What I do think is important (because it relates to what we do) is to elaborate on one of the points made towards the end of the article.  The idea of self-insurance -- paying for care out of your own assets -- is a prospect that many of our clients face.  The article seems to indicate that the only option for folks with modest assets is to spend down to the point you or your loved one qualify for Medicaid.

What people need to understand is that completely wiping out your assets is NOT the only way to qualify for Medicaid, and I want to illustrate this with a few points:

1. If you are married, and your spouse is needing care, there are basic spousal protections built into the Medicaid regulations that absolutely should be taken advantage of by the healthy spouse.  In North Carolina, the healthy spouse (or community spouse, as they are called in the regulations), is allowed to keep one half of the couple's assets, up to roughly $115,000.  This amount does not include the home, life insurance with a face value of $10,000 or less, and one vehicle.  
2. If you are single or widowed, and you have significant cash assets, there are ways to plan using gifting and annuity combinations to protect at least some of those assets. 
3. If all you have is your home, don't assume that you have no choice but to expose it to estate recovery.  There are deeds that can be used to keep your home protected and leave something for your children.

There are a lot of other points related to crisis planning that we touch on on our website that I could spend thousands of words discussing here.  But just remember, if you meet with a social worker and they tell you that you either don't qualify because you have too many assets, or that what you do have will be subject to estate recovery after your death, that isn't always the case.  The social worker's job is to give you the rules.  Our job is to explain how the rules can still benefit you and your family.  

Raleigh Elder Law | Gifting, Taxes, and Long Term Care

One of the more common concepts that clients get confused about is taxes on gifts to children or grandchildren, and how it all works together when you're thinking about planning for Medicaid or long-term care.  This normally happens with our older clients who are getting to a point where paying for care is a concern.  The conversation normally goes something like this:

Client: "I want to give my kids $50,000.00 each.  I know I can give some amount away each year to my kids and the government won't count it, right?"

Me: "You're allowed to give $14,000 to an individual without incurring any gift tax liability."

Client: "So they can't come back and get it if I need to go into the nursing home?"

And this is where the confusion begins.  Many clients confuse the rules related to taxes on gifts with the rules related to gifts related to the Medicaid lookback, or they assume that one rule covers everything.  Unfortunately, this isn't the case.

The website "The Motley Fool" had a good, succinct article yesterday about when a person should consider making gifts to heirs.  The article, which can be found here, has as straightforward an explanation of gifts and taxes as I've seen.  It also raises a good point, namely, have you considered how you are going to pay for long-term care after you've made these gifts?

The important points to remember are:

1. Gifts made for tax purposes are not always protected from the Medicaid lookback rules, if such gifts are made within five years of applying for Medicaid assistance.  This five year period is also called the "lookback" period, and it is what it says.  Social Services is looking back through your financial history to determine whether you have made gifts of assets that should have instead been used to pay for your long-term care.  There are certain situations in which you may be able to overcome this presumption, but the safe rule of thumb is that Social Services will count those gifts against you.
2. If you have your cost of care covered, either with long-term care insurance, or with other assets, remember to take into consideration the assets you are gifting.  Gifts of stocks or real property can result in adverse tax consequences down the road for the recipient.  Why?  Because generally speaking, gifts during the life of the donor (donor is the person making the gift) retain the basis of the donor in the hands of the donee (the person receiving the gift).  In English?  OK, OK.  Let's say I bought 5,000 shares of stock in ABC Corporation for $1.00 each 20 years ago.  My basis in these shares is $5,000.00.  If today they are worth $10.00 per share, and I sold them, I would have a taxable gain of $45,000.00.  

If I give the shares away to my sister when they are worth $10.00 per share, my sister's basis would not be $50,000.00, it would be what I paid for them: $5,000.00, meaning that if my sister were to sell the shares, she would be taxed on the $45,000.00. 

If I retained my shares, and gave them to my sister via my Will when I died, she would receive the shares with the basis "stepped up" to the value of the shares the day I died.  So if when I died, the shares were worth $100 per share, my sister's basis would be $100 per share.  If she sold the stock that same day, she would owe no taxes on the money received from the sale.

So what does this mean?  If you're going to make gifts, think about the type of asset you're giving.  If it's something you didn't pay much for but is worth an awful lot now, consider holding onto that asset and passing it at death.  

Where does this tie in with the Medicaid lookback rules?  If you're worried about protecting assets for long-term care and/or Medicaid eligibility, but want to make sure that your beneficiaries retain the advantages of a stepped-up basis in the asset, consider estate planning that will do both.  There are several different ways to ensure that assets will not be subject to estate recovery should you need Medicaid assistance, while retaining the step-up in basis provided by an on-death transfer.  Irrevocable trusts and gift deeds reserving life estate are one common way of doing this, but it needs to be done properly, and it needs to be part of an overall plan that will leave you with the assets you need and access you need to be able to live comfortably during retirement.

If you have questions about these issues, or need advice about planning for long-term care, talk to an attorney (like me!) who deals specifically with these matters. 

Raleigh Elder Law | Expectations & Reality - Long Term Care

A joint venture between the Associated Press (AP) and the NORC at the University of Chicago (if you're curious about what NORC means, visit this page, and anticipate confusion) released the results of a national survey it conducted related to the population's understanding of long-term care and the impact it has on families.  This is a follow-up to a survey it conducted last year related to peoples' understanding of long-term care. 

The results of the survey may be surprising to some, but not to folks that have experienced a situation related to the care of a loved one.  Some key points from the survey:

1. The US Department of Health & Human Services estimates that 70% of people who reach the age of 65 will need some form of long-term care.
2. Six in 10 Americans aged 40 or older have experience with long-term care, either as caregiver, recipient, or person paying for care. 
3. Americans aged 40 or older who have experienced long-term care issues are more likely to be concerned with planning for long-term care for themselves and not relying on family.
4. One-third of Americans in that same age bracket are very concerned about not doing enough planning to provide for their own care, but two-thirds indicate that they've done little to no planning.
5. Americans lack information about ongoing living assistance, but what information they do have the tend to get from friends, family, or co-workers, even though they place much more trust in the information they receive from professionals.

There are additional critical points in the survey, including how the nation will pay for the growing care needs of its aging population.

But the big takeaway for me, as an elder law attorney, is this: there are professional sources of information on these issues, from attorneys to elder care groups to financial planners, that can be tapped for often-times minimal or no cost to provide education and understanding related to these issues.  There is no reason to face these problems without planning or direction.  Our website has many examples of how planning can assist folks facing these situations -- take a stroll through the links on the right-hand side of our homepage for more information.

Some basic points to consider:

1. Have you talked about your long-term care desires with your family?  If so, have you talked about how to pay for them?  For example, if you want to stay at home, have you advised in which order assets should be consumed, and which ones should not be (if any)?  Or if you'd like to move into an independent or assisted living home, have you discussed paying for care?
2. Do you have the basic estate planning documents in place that will allow family to make decisions on your behalf?  Power of Attorney?  Health Care Power of Attorney?  Living Will?  Have you explained your wishes to your family?  If not, DO SO.  
3. Have you considered long-term care health insurance?  Many insurance companies nowadays offer policies that are long-term care/whole life insurance combinations, meaning you can get more than just care coverage from your investment.  Many long-term care policies also include home-health riders, allowing coverage for in-home care.  Talk to an insurance professional about these options.
4. Have you considered planning to protect assets in the event you need long-term care?  As the survey indicates, 72% of the folks that have received some sort of long-term care have incomes of $50,000 or less.  Our experience has shown that many of these people do not have the types of long-term savings or assets to pay for ongoing care, and when the assets they do have run out, they're normally left needing Medicaid assistance.  The laws related to the Medicaid program allow for planning to preserve some of your assets.  Talk to an attorney (like me) that understands these rules and what can be done.
5. Finally, don't wait until you're faced with a crisis situation to do something.  We deal with these situations regularly, and they're never good.  So, if you're reading this blog, make an appointment with an attorney to talk about things.  The consultation fee is worth the peace of mind.

Raleigh Elder Law | A New Firm

I'm John Paschal, and I'm an Elder Law attorney here in Raleigh.  I'm titling this first post "A New Firm", even thought it's a bit of a misnomer.  Our firm, J. Ray Deal, PLLC, isn't new.  We've been practicing elder law for a combined 25 years.  But we are new to the Raleigh area.  We recently opened an office on National Drive, just off of Glenwood Avenue.  So -- why?

A couple of reasons.  First, my wife and I (along with our dog, Stevie) live in Raleigh, and have for the last two years.  We aren't Raleigh natives, but we're making it our home, and we're excited to be a part of this growing and vibrant community. 

Second, we see a need.  There are plenty of attorneys in this area that can draft a will and a trust, and do it well.  But the practice of elder law doesn't begin and end with estate planning documents.  It's an approach that views wills and trusts as one component of an overall plan that is structured to achieve the long-term goals of the client, while providing the flexibility to deal with anything life throws their way.  Nobody has a crystal ball -- but we can use our experience to help our clients be ready when the future becomes clear.

So we're here, and we're ready to help.  Visit our website at www.jraydeallaw.com for more information on us and ways to schedule appointments.  You can also follow me on Twitter @raleighelderlaw  We look forward to helping you soon!