This number may be too high at a time when wills are becoming more and more important because of everything from modern day living arrangements to digital assets and more.
]]> The increase in unmarried couples raising children together has increased the importance of a will clearly outlining parents' wishes regarding their children's future and upbringing. Additionally, in a same-sex relationship, a will is essential to ensure the estate is distributed according to the decedent's wishes.According to a 2011 study, Americans have an average of $55,000 in digital assets, but not all of them take care to protect their hardware devices and their online presence. Houston residents who do have a will may not have included their digital assets in it. One option to rectify this may be amending their wills through a codicil to include their digital assets.
Americans also love their pets, but 61 percent of us have not included pet care in our wills. It is possible you may have informally asked a loved one to take over caring for a pet if you should pass away, but without formalizing this agreement, the pet could end up in a shelter. Individuals may also consider providing a monthly allowance through an estate plan to the person chosen to take care of their pet.
A successful estate plan may include all of these provisions and possibly more. The lack of a will leaves potential heirs at risk and increases the risks of disputes ensuing after death.
Source: Asbury Park Press, "Last wills change, but need doesn't," May 4, 2012
]]>An article in the May 8, 2012 edition of The New York Times, "Keeping an Ailing Relative Home, Almost" evaluates the new alternative to nursing home care for some frail seniors that originated in Australia. Called "Granny Flats" by Australians, the American version's "granny pods" offer a self-contained, prefabricated unit consisting of bedroom, bathroom, and kitchenette that are designed to fit into most suburban backyards on a temporary basis.
The pods feature safety products such as motion sensors, camera systems, and levers in closets which can lower the clothes rods to wheelchair height. Other mobility accommodations are included in the units.
Some of the manufacturers referenced in the article include MEDCottage and PALS (Practical Assisted Living Structures).
Some of the advantages to the pods are that they allow older adults to live in their own home and maintain their own lifestyle, while having ready access to extended fammily members. This type of living arrangement can allow the nuclear family to maintain their lifestyle while including an aging parent in family events and social functions.
Some disadvantages may include the fact that family dynamics may make this a less desirable alternative and the level of care needed by the older adult may be beyond what the family can provide. If an older adult cannot live alone, needs close supervision, or assistance with meals and medication management the "granny pod" may not be a suitable alternative.
The "granny pod" may be just the right fit for some multigenerational families and it could be worth a closer look before a life-changing incident occurs. And, just as pre-planning for lifestyle changes is important, families should consider and discuss a life care plan which can include a family agreement, advance directives, trusts and other tools that empower families and allow them to make the right decisions for their circumstances.
]]>It is essential to budget in the costs of long-term care insurance. However, the increasing cost of insurance is limiting choices available to customers.
]]> In 2010, a top five insurance seller stopped selling individual policies. Earlier this year, another company, the fifth largest long-term care insurance seller, exited the field. Both left for primarily the same reason--it is becoming increasingly difficult to forecast how much money may be required for claims. The risks involved in the calculations have gone up.There are still many long-term care insurers in the market willing to sell individual policies. The issue is not the scarcity of sellers, but the price at which the policies are sold. According to a trade group of insurers, prices have gone between six and 17 percent in the past year alone. In addition to this, the cost of existing policies goes up by double digits regularly.
Despite the rising cost, purchasing a long-term care insurance plan may still be a viable option as the toll extended care takes on savings is a heavy one.
It is possible for some to cut costs by purchasing inflation protection. In addition to this, it may be worthwhile to consider buying coverage for a limited period of time. In order to devise a plan that suits both financial and medical needs, Houston residents should consider consulting an experienced professional estate planning attorney.
Source: CNN Money, "Does it pay to buy long-term care insurance?," Lisa Gibbs, April 24, 2012
]]>The committee discussion took place the same day that Tennessee Sen. Bob Corker claimed that the public sector should play a bigger role in funding long-term care programs. He cautioned members at the Senate Aging Committee hearing about the feasibility of private long-term care insurance, and claimed financing long-term care is about to become a national crisis.
]]> The concern is spreading to other members present at the hearing. The director of healthcare and insurance at the federal Office of Personnel Management was concerned that many insurers left the business, even though enrollment in the federal long- term care program increased 20 percent.A previous director of the Congressional Budget Office stated that private insurers need to remain part of the system and should be encouraged by tax subsidies to incorporate insurance into their benefits. Automatic enrollment could also be an option.
An Urban Institute representative at the Senate hearing stated that reducing hospitalizations and improving primary care could help cut costs. Most of Medicare spending is on hospitalization and post-hospitalization home care.
There is a debate over which program patients covered by Medicare and Medicaid benefits should select. Some claim patients might be better off if they stuck to Medicare, while others argue that through Medicaid, states should be given the flexibility to create a program for their residents.
Whatever the outcome of the debate, ways to provide cost-effective and well-organized long-term care services are under discussion and a creative solution could be in the works.
Source: Forbes, "Sen. Corker: Long-term care is 'Heading for a national crisis'," Howard Gleckman, April 18, 2012
]]>In a recent interview with NPR, "Bettersweet Season Details Caring for Aging Mom", Jane spoke about her disappointing experiences of finding intelligent direction on how to manage her mother's decline prior to her death in 2003. Thankfully, ten years later, there are some resources to assist families navigate this challenging time.
A new breed of attorneys and their practices have evolved to address the legal, financial and social issues facing the long term care of an elder. Steeped usually in estate planning and elder law, law firms associated with the Life Care Planning Law Firms Association ("LCPLFA") are focused on legal services which assist in managing the multiple, interlocking challenges of aging. From a legal perspective they address the legal, financial, medical and social components that all contribute to decision making. The attorney quarterbacks a cohesive action plan of legal, financial and care options. These can include direction on qualification or public benefits and how best to provide the family with the tools to stretch the family's savings.
A critical distinction to the law firm's membership in LCPLFA is the requirement for an Elder Care Coordinator, who overlays the care elements and works with the lawyer and fmily on implementing the plan. Identifying, accessing and financing quality care for the elder is the paramount goal.
No care decisions can be made in a vacuum, and the life care planning process provided by the LFPLFA law firms can provide guidance, savings, and peace of mind.
]]>The University Health System is one of eight hospitals dreading the change because it would jeopardize Medicaid benefits for the uninsured and those with low income. Several hospitals that have many of these patients have a safety program called Disproportionate Share Program, funded by extra Medicaid benefits. This program, known as DISH, specifically focuses on those who are in need of care.
]]> The chief financial officer of the University system explained that the costs of treating patients not covered by any other insurance plan are partially covered by DISH. Of the 160 qualifying hospitals, only eight hospitals designated by the program deposit money in the fund to draw on federal funding. Not only do hospitals recover the money they put in, they collect a couple of million more that is spread between all the participating hospitals.In the last year alone, DISH generated $747 million from the $487 million that eight hospitals contributed-the University system alone received an extra $18 million that was used to treat uninsured patients.
The new waiver limits how much money the eight hospitals would receive. The hospitals would now get more money if they invested it in a larger waiver program rather than in DISH.
The qualifying hospitals that cannot invest their money are concerned about the eventual costs this waiver would bring. If extra funds are not available to take care of poorer patients, where will these patients end up? Accordingly, hospitals are trying to retain their level of funding by asking for a waiver from the waiver.
Planning for Medicaid is very important, as the rules are complex and always changing. To make sure one's interests are being protected and they are covering all their bases, residents of Texas should consider talking to an experienced Medicaid Planning lawyer.
Source: My San Antonio, "Convoluted rules means hard choices for UHS," Don Finley, April 18, 2012
]]>However, the idea of combining chronic care and long-term care coverage has not appealed to all medical insurers who fear it would increases costs without improving their profit.
]]> The 2010 health care reform laws strongly encouraged integrated models of care. Medicare Advantage managed care plans, Medicaid managed care and Kaiser Permanente's integrated health care systems are all part of the increasing trend of stepping away from the traditional health insurance model. Some states have even begun to provide Medicaid managed care to elderly patients.One aim of including long-term care and chronic illness coverage with health insurance is to keep chronically ill people out of the hospital. A reliable way to do this, integrated insurance advocates say, is to make sure that elderly patients with chronic diseases receive high quality personal assistance. For example, patients with congestive heart failure can stabilize their illness by following a careful diet and regularly taking their medications. By providing these patients with an aide who takes care of their food and medication, it is possible to decrease the $24,000 per year cost of hospitalizing patients with congestive heart failure.
As it stands, Medicaid finances 40 percent of paid long-term care. There are many effects of using Medicaid that are important to consider. It is important for Houston residents to work with professionals and partake in long-term care planning to avoid hasty nursing home placement or other unsuitable arrangements.
Source: Forbes, "Make Long-term care insurance part of health care insurance," Benny L. Kass, April 11, 2012
]]>1. Educate yourself about various healthcare options and end-of-life decisions.
2. Determine and state your own personal choices.
3. Communicate your decisions to key family members.
4. Discuss and formalize your advance directives and other legal documents with your life care planning attorney.
We've all known someone who has experienced the anguish of making a healthcare decision on behalf of a loved one who is not in the position to communicate their own choices. Take the guesswork out of the equation for your loved ones and create clear directives for your family to follow.
Make a plan today so that your family does not have to guess what your decision would be should you become incapacitated. If you need help getting started, please visit the National Healthcare Decision Day website.
]]>A person's online presence includes online banking, investments, tax returns and employment plans. An ideal estate plan would include information relating to this information so that survivors can access the decedent's information and use it as necessary.
]]> Issues involving social networking sites are also on the rise--Twitter, Facebook and LinkedIn are all included in someone's online presence. Each of these websites has enacted policies to cater to this situation.Facebook provides two options--profiles can either be removed or memorialized. Only immediate family members can remove a profile after providing proof of death, which may be either an obituary or a news article. Memorializing a profile means that the account holder's previously accepted friends can view the profile and post on their wall, but others cannot log into the account.
Twitter may remove individual accounts after the website receives an obituary or newspaper article. Twitter provides an email address that an account holder's next of kin can use for that purpose. The decedent's username or account profile page link is also necessary to complete the removal.
LinkedIn requires that a completed form verifying the account holder's death is submitted to an email address specified on the website. However, information about the decedent's email address, profile, death notice and date of death is required.
Blog profiles have different policies that users should analyze to make sure that loved ones have the relevant information to remove the decedent's account.
This information is important to make sure the decedent's online presence is protected after they pass away. In addition, it is crucial for family members to make sure the decedents' information does not fall into the wrong hands through hacking. Finally, the decedents' family may wish to ensure that the online information does not expire, making it unavailable. Estate planning professionals can help a family plan for and sort through these issues.
Source: Business Review USA, "What happens to your online presence when you pass away?" Kevin M. O'Brien, April 1, 2012
]]>According to the American Association of Retired Persons, in 2009 more than 42 million individuals across the country provided elder family members with care for their day-to-day activities. In addition to this, 61.6 million delivered it at some point throughout the year.
]]> The first step families need to take is to start discussing their health care arrangement plans and begin the paperwork. An advance care directive, including durable power of attorneys and health care proxies are documents that should be handled first. They ensure that the needs of a loved one are met when a situation arises where either financial or medical decisions need to be made on someone else's behalf.The AARP has found that that 90 percent of aging parents would elect to stay at home as long as they possibly could. Their adult children may have to invest in house modifications or become family caregivers. On the other hand, those caregivers who move in with their parents often neglect their own health, with 20 percent of such women age 50 and over suffering from caregiver burnout-related depression.
Private rooms at nursing homes and assisted living are also options that can be availed. However, as they are not generally covered in the federal health insurance programs, it is essential to keep their cost in mind when making a decision. This is why early planning is so helpful--it gives an aging family member's loved ones a clear picture of what preferences the elderly patient has and helps them prepare for it.
Source: USA Today, "Caring for elderly patients catches many unprepared," Christine Dugas, March 26, 2012
]]>However, it was troubling to see that Houston's will was signed in 1993 and had not been updated after her divorce. One might think that for the woman who signed the largest recording contract ever, detailed estate planning and revision of documents would have been a top priority. Even though the singer added an amendment to the will in 2000, she did not update the guardian for her young daughter should she die while the child was a minor.
]]> In addition to this, instead of creating a living trust to keep the distribution of assets a private matter and outside of probate court, the singer relied on a single will that would go through probate court in order to become effective and therefore a matter of public record. This could also lead to will disputes between family members.This is not to say that Houston did not think through the administration of her estate. For example, she created a testamentary trust for her daughter. A testamentary trust is one that is created by the will and is similar to a living trust, but still has to go through probate. By doing this, Houston spread out the distribution of assets to her daughter, so she would not become entitled to the entire estate until the age of 30. At age 21, she would only receive 10 percent of her inheritance. Houston also provided for independent trustees to spend the money on behalf of her daughter, for matters such as her education and family life.
The fact that the will was not updated after important life events such as divorce or major record deals is surprising. If a will is not properly drafted, management of the estate could take place in a manner contrary to the decedent's wishes. In some cases this may result in spouses or ex-spouses, or other family members, attempting to contest the will and take a larger portion of the estate than they are entitled to.
Source: Forbes, "Whitney Houston's will was far from perfect," Danielle and Andy Mayoras, March 15, 2012
]]>According to a director at the Texas Tech University Health Sciences Center, the public provider has been replaced by private providers as a part of the new Medicaid Managed Care program in Texas. It is essential that recipients of Medicaid benefits select a primary care provider as soon as they receive their information packet.
]]> The Medicaid Managed Care program offers Medicaid services, but in a different way known as managed care. Many Medicaid recipients may choose to remain in Medicaid, or enroll in the managed care program. Enrollment the managed care program is only mandatory if the recipient is receiving cash assistance, or is pregnant or receives a limited income and lives in an area where the managed care program is available.These new rules complicate the already complex Medicaid planning process. Houston residents considering their options for long-term care are probably aware that the rules surrounding Medicaid are complex and cannot be generalized.
All factors must be considered, such as level of income, asset ownership and marital status. Add to that the ever-changing criteria, and it is enough to make people pause before planning for long-term care. However, the sooner viable options are considered and proper planning is done, the better the chances are that Houston residents will be able to protect their assets while still protecting their own health interests.
Source: Newschannel10 "Texas Medicaid Changes," Kelly Marose, March 14, 2012
]]>Long-term care not only refers to medical needs, but also assistance with daily activities such as bathing and feeding. These forms of non-medical care are actually usually provided to people with medical and cognitive conditions, according to Medicare.
]]> It is never too early to start long-term care planning, also known as life care planning. With the rising cost of living, not enough thought is being given to life-care planning by many. In fact, since medical expenses have historically never been as high as they are now, life care should become more of a priority. For those who engage in it, long-term care planning provides the option to select a health care arrangement of their choice before the time comes that they will need it.Houston residents should be aware of the options available when it comes to preparing a health care plan and select one that suits their lifestyle and requirements. One option is to prevent the need for health care by staying healthy and active; however, no matter how good of care we take of ourselves, some health conditions are beyond our control.
Another option is to save money for health care by investing it with modest returns that can become available immediately if required. However, it is important to correctly evaluate how much money must be saved to provide for long-term care and to recognize the increasing need for health care as one grows older.
Considering long-term care insurance coverage is also an option. As people get older, the cost to purchase such insurance does become more expensive.
Long-term care planning is very complex and requires much research. The sooner Houston residents begin making health care arrangements, the better their options.
Source: Foxbusiness.com, "How to plan for long-term health care," Donna Fuscaldo, March 6, 2012
]]>The state government is gearing up for 2014, when Medicaid coverage is expected to increase to 5.7 million Texans due to the federal Affordable Care Act, which will make health care insurance mandatory for Texans.
]]> Medicaid is a program that makes federal medical benefits available to fund medical expenses and nursing home care for those of low-income. It is a means-tested program, with eligibility centered on net worth and income.To cater to the growing demand for Medicaid Assistance, the state of Texas is planning on changing the way Medicaid is run currently to make the program more flexible and efficient. Top public health officials in Texas are involved in reforming the system but require the federal government's approval, for which they appeared before a joint committee of Senate and House members to outline their proposals late last month.
A waiver has already been approved by the federal government which allows Texas to adopt new or proven methods to provide long-term care to residents.
Many Houston readers may not have heard about the bill passed in Texas in the summer of 2011 that directs the Health and Human Services Commission to pursue making medical care more cost-effective. The plan envisions expanding the state's power to regulate Medicaid eligibility and benefits, instituting copayments and encouraging Texans to take care of their own health by providing incentives.
Many Texas residents fear that their hard earned money will be completely diminished if they ever need long-term care. And, in fact, this does happen to people quite often. This is why it is very important to make Medicaid planning a part of a well-rounded estate plan.
Source: KUT.org, "Texas lawmakers continue quest to reform Medicaid," Matt Largey, Feb. 29, 2012
]]>A living trust allows you to document how you want your financial affairs and medical directives handled should you become incapable of communicating your wishes in the future.
]]> Whereas a will is only relevant upon your death, a living trust allows you full control over your estate plan and health care directives during your lifetime. It also prevents an arbitrary third-party from making decisions on your behalf should you become unable to make these decisions.In the event you become incapacitated without a documented estate plan such as a will or living trust, a family member may have to petition the court to appoint a conservator to handle your affairs. If the matter involves making medical care decisions on your behalf medical testimony may be required. If your family members disagree with the medical testimony the judge may appoint an unrelated third-party to serve as your conservator.
Another benefit to a living trust is that it is a great way to avoid probate court, which can be a costly and drawn out process for your loved ones. And, if you should happen to own property outside the state of Texas, a living trust allows you to avoid the probate process in that state as well. Depending on the complexity of your estate, properties and assets you may want to consider the services of an estate planning attorney to help ensure your estate plan is executed exactly as you wish.
Source: USA Today, "Money Watch: Should I have a living trust?" Christine Dugas, March 1, 2012
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