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Medicare May be Reformed Again (But for the Good this time)

By Attorney Liz Durnell

Screen Shot 2013-05-22 at 8.36.12 AMDid you know that Medicare will not pay for any part of a nursing home stay if you or your loved one were not “admitted” to the hospital for three days? Sometimes the person was just in the hospital for “observation.” Under current Medicare laws, if you are in for “observation,” you were not considered “admitted” to the hospital and Medicare will not pay for your nursing home stay.

There are few ways to combat this issue: 1. Have proper planning in place so that you are not reliant on Medicare, and; 2. Write to Your Senators and Member of the House to Support Observation Status Reform.

Proper planning may include irrevocable trusts, certain qualified annuities, and legal documents such as a Power of Attorney, Health Care Power of Attorney, and Living Will. You should consult an Elder Law Attorney to ensure that your planning is proper.

You may also write your Senators and member of the House to ask them to become co-sponsors of the Improving Access to Medicare Coverage Act (H.R. 1179 and S.569). The legislation reforms observation status and would allow time spent in the hospital under observation status to count toward the requisite three-day hospital stay for Medicare coverage of skilled nursing care.FB

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DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

 

The 2013 Capital Gains Tax Hikes – with an “s”

By Attorney Dan Vu

Screen Shot 2013-05-22 at 8.32.01 AMDue to the 2013 fiscal cliff deal, the capital gains tax rate has jumped up in more ways than one. If you file as a couple and earn over $450,000 – or if you file as a single and earn over $400,000 – the capital gains rate has jumped from 15% to 20%. Couples and single filers making less those amounts will continue to be taxed at 15% and those making less than $36,250 will be exempt from paying any capital gains tax.

However … don’t let the $450,000 and $400,000 number fool you into thinking the increase affects only highest-earning brain surgeons and CEOs!

The Medicare Surtax is a new and additional tax for couples making over $250,000 and for single filers making over $200,000. The new tax will be used to help pay for the extraordinary cost of Medicare. This Medicare Surtax adds a 3.8% tax on capital gains (and dividends) to the 15% or 20% capital gains tax! So in all, the highest tax on capital gains is now 23.8%.

Furthermore, for Ohioans, add another 5.9% Ohio tax on capital gains – that’s potentially 29.7% in total! It all adds up to a significant capital gains tax hike, and for some, its tax hikes, with an “s.”

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DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

 

Medicare and Nursing Homes: The End of the “Improvement” Standard

By Attorney Liz Durnell

Screen Shot 2013-04-25 at 10.32.21 AMIn all of my time working with the elderly, one of the most discussed issues is “how long will Medicare pay for my nursing home?” The maximum amount of time that Medicare will pay for skilled nursing care is 100 days. Medicare pays 100% for the first 20 days. For days 21-100, they will pay all but a co-pay that is usually covered by supplemental insurance.

In the past, the question of how long Medicare paid depended on when the nursing homes decided that the patient was no longer improving or had “plateaued”. Once plateaued, Medicare stopped paying.

A recent settlement between the Center for Medicare Advocacy, Vermont Legal Aid and the Obama Administration has changed this standard.

Following is an excerpt from the ElderLaw Answers article, “Medicare to End ‘Improve or You’re Out’ Standard for Coverage of Skilled Services.”

“In a major change in Medicare policy, the Obama administration has provisionally agreed to end Medicare’s longstanding practice of requiring that beneficiaries with chronic conditions and disabilities show a likelihood of improvement in order to receive coverage of skilled care and therapy services. The policy shift will affect beneficiaries with conditions like multiple sclerosis, Alzheimer’s disease, Parkinson’s disease, ALS (Lou Gehrig’s disease), diabetes, hypertension, arthritis, heart disease, and stroke.”

As part of the proposed settlement, which the federal judge must still formally approve, Medicare will revise the manual that their contractors follow to clarify that Medicare coverage of skilled nursing and therapy services “does not turn on the presence or absence of an individual’s potential for improvement” but rather depends on whether or not the beneficiary needs skilled care, even if it would simply maintain the beneficiary’s current condition or slow further deterioration.

If you or a loved one are in a nursing home or assisted living facility or in the need of in home care, please contact the Elder Law Attorneys at Cooper, Adel & Associates to discuss your options.
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DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

 

The Importance of Planning for Special Needs Families

By: Attorney Nathan Simpson

Screen Shot 2013-04-25 at 9.47.22 AMGrowing up with a brother who is disabled, I know firsthand the importance of estate planning. The plans that my parents put in place now will have a significant impact on the quality of life for my brother after they have passed away. This means thinking further into the future than most people typically do.

Typically, special needs planners look to trusts that will enable those with disability to have assets available for their care without disrupting public benefits. This is a good first step, however it is not the only thing families should be concerned about. Planning for long term care costs for both themselves and their special needs child, in our case, my brother, should be a high priority. With Nursing Home costs exceeding $10,000 a month in some parts of the state, ensuring that there are assets to pass down to your children requires advanced long term care planning. Additionally, even establishing a basic estate plan that allows assets to avoid being tied up in a costly probate takes on a new level of importance for families like mine.

If your family is like mine, and you are concerned about creating a plan for members of your family with disabilities, talk to the Elder Law Attorney at Cooper, Adel & Associates. Our Elder Law Attorneys have the knowledge about both estate planning and government benefits you need to ensure that your family has their ducks in a row.FB

Contact us for a free consultation.

DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

 

A Bird in the Hand is Worth Two In the Bush

By Julian Guilfoyle

Screen Shot 2013-04-24 at 9.49.34 AMThe belief that it is better to have a lesser certain benefit than the possibility of a greater one that may come to nothing is a decision increasing contemplated by today’s retiree. George Yacik outlines this decision that can have severe repercussions in the February issue of Financial Planning. In an article titled “Weighing a Pension Buyout”, Mr. Yacik discusses the complex decisions these retirees face when deciding between a lump sum disbursement versus a promised income stream for life.

Retirement in 1985 was a simpler endeavor than it is today. Yacik writes that back then, “some 89 of the Fortune 100 companies offered a traditional defined benefit (pension) to newly hired salaried employees.” Towers Watson, a human resources consulting firm, has found that these figures have “completely flipped. In the Fortune 100 of today, 89 companies now offer only account-based retirement plans (for example, a 401(k)) to new salaried hires.” The purpose of this shift was to save money as these companies and their defined benefit plans began to feel the strain of the baby boomers reaching retirement age. The shift in retirement benefits affects not only workers entering employment, it has expanded to current retirees already receiving their pension benefits. Yacik cites a recent study completed by Aon Hewitt. They found that some “35% of the more than 500 large American companies said they were likely or somewhat likely to offer a lump-sum payout to their retirees and employees in order to put a cap on their pension liabilities.” Even if one is already in retirement, they may be forced to revisit this crucial decision.

While it has made retirement a more treacherous undertaking, there are some benefits to the worker. First, the retiree doesn’t lose a substantial amount of money should they pass away before their life expectancy. For example, lets take a 65 year-old male with $250,000 in retirement benefits. If a pension option based solely on his life expectancy is elected, the retiree should receive around $1400 per month for the rest of their life. Should the retiree pass away at 70, he would lose $166,000 plus the interest this money could have generated during that period. If the retiree had elected a lump sum option of $250,000 (and withdrew $1400 per month), the $166,000 plus accrued interest would pass to the spouse as an IRA or to the children. This obviously works the other way as well. If the retiree lived past his life expectancy or if the lump sum saw a decline due to market losses, the retiree may outlive the lump sum disbursement.

The second benefit to retirees is that they control their own destinies. If the lump sum is rolled into an IRA the retiree has unlimited investment opportunities. The IRA can be transferred into whatever type of investments they desire. Depending on the size of the IRA and the investor’s goals, the IRA can also be split. A portion could be set aside to generate an income stream, another to provide for long-term care insurance, and the remainder to achieve long-term market growth. If the pension option is elected, the retiree is restricted to the pension fund manager’s investment ability. It is also subject to revisions made to retirement benefits by their previous employer, collective bargaining agreements, or bankruptcy proceedings.

Though the lump-sum option is becoming increasingly attractive to retirees, it is imperative that the transfer to an IRA is handled appropriately. If the retirement is not transferred correctly, the entire lump sum could be taxed as income, all in one year. This is one of the many reasons you should be working with both legal and financial advisors to guarantee a smooth transition from employment to retirement. If you are approaching retirement or if your former employer is considering modifying your existing pension, please feel free to call our office at 800-798-5297 to schedule a free consultation and discuss the options that are available to you.

http://www.financial-planning.com/fp_issues/43_2/Weighing-a-Pension-Payout-2682991-1.html?pg=3

 
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DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

 

Can I sell my assets once they are in a living trust?

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Answer:  Yes.  You have the same control over your assets, including the right to buy, sell or transfer those assets as you did before they were placed into the trust.

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DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

 

Can I transfer my assets from my living trust?

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Answer:  Yes.  Your assets in your living trust are totally accessible by you.  You can spend them, give them away, transfer them into your own name or to other individuals, all without any restriction.

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DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

 

National Healthcare Decision Day

By Attorney Keith Stevens

Screen Shot 2013-04-23 at 10.23.25 AMYou may not have realized it, but April 16 was National Healthcare Decisions Day. In a time when you can find national days celebrating all sorts of crazy things (on May 9th you can commemorate Lost Sock Memorial Day), National Healthcare Decision Day should be of interest to us all.

The purpose of National Healthcare Decisions Day is to encourage people to take charge of advance care planning. This is an area that needs clarification and discussion. In 2003, the U.S. Agency for Healthcare Research and Quality reported that fewer than 50% of severely or terminally ill patients had advance directives in their medical record, while 65-76% of physicians whose patients had advance directives were unaware of it. But there are signs of improvement – according to the Pew Research Center in a January 2006 report, the number of people with living wills jumped 17% between 1990 and 2005, from 12% to 29%, in part thanks to the infamous Terri Schiavo litigation.

Dealing with advance planning can be difficult not only because of the emotions involved, but also because of the common perceptions people have, correct or incorrect. People often have difficulty figuring out how healthcare powers of attorney, living wills, and do-not-resuscitate orders fit together, or even how these three documents are different from each other. That’s before we even start talking about the differences in state laws. With fifty states, there are fifty living will statutes and the requirements for a healthcare representative can vary greatly between them. When clients of mine move to another state, the healthcare documents are the ones that are most likely to need to be replaced. What you may have heard from a friend or family member in Indiana won’t necessarily apply in Ohio.

With today’s medical treatments, it is not unusual for our bodies to outlast our minds. We are living longer and advances in healthcare mean that fewer of us are dying as early of heart disease, cancer, and similar ailments, the downside of which is that we are more likely to develop dementia or other mental disorders than any previous generation. These facts, coupled with increasing legal regulation of physician-patient relationships, make advance directives all the more important.

If you have not already created advance healthcare directives, consider contacting an elder law attorney to assist in drafting them. If you do have these directives, the best thing you can do is make sure that your physician knows about them and that you have talked with your family or other agents.

National Healthcare Decision Day has its own official website at http://www.nhdd.org/

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DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

Attention Medicare Beneficiaries

By Roy Whited

Screen Shot 2013-04-23 at 10.12.53 AMThis information was taken in part from the Ohio Department of Insurance Website.

COLUMBUS – Lieutenant Governor and Ohio Department of Insurance Director Mary Taylor announced the Ohio Senior Health Insurance Information Program (OSHIIP), the state’s official source for free and unbiased Medicare information and counseling, will hold “Welcome to Medicare” events in 17 counties running April through May. The events will help new and soon-to-be beneficiaries understand the basics of Medicare.

At the events, people can learn about the important deadlines and benefits Medicare provides, Medicare Advantage plans, supplemental health insurance, and prescription drug coverage. There will also be information regarding financial assistance programs that help pay for Medicare’s Part B premium and out-of-pocket expense associated with prescription drug costs.

For a list of the upcoming events visit www.insurance.ohio.gov

Cooper, Adel & Associates law firm would like to encourage everyone to make sure they understand what and how much Medicare pays to cover the cost of a long-term nursing home stay. It is not much.

For more information on how to protect your assets from being lost to the cost of a long-term nursing home stay call 1-800-798-5297 to schedule a free one-hour consultation.

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DISCLAIMER – Every case is different because every case is different. This blog does not give legal advice. This blog does not create an attorney client relationship. You are not permitted to rely on anything in this blog for any reason. This blog is an entirely personal endeavor. Every person’s situation is different and requires an attorney to review the situation personally with you.
No attorney-client relationship is created by this site.

The use of the Internet, this blog or email for communication with this firm or any individual member of this firm does not establish an attorney-client relationship. Before we represent any client, the client and the attorney will sign a written retainer agreement.
If you do not have a written, signed retainer agreement with us, we are not representing you and will not be taking any action on your behalf.

A Cautionary Tale of DIY Estate Planning

By Attorney Ted Brown

Screen Shot 2013-04-23 at 9.47.36 AMI recently came across another example of self-help estate planning gone drastically wrong. In this case, Mom was in her 80′s and owned a family farm and a life-savings of conservative investments. She wanted her estate to be divided equally among her four children but wanted to make sure her two sons, who were farmers, got the farm.

So, to keep things simple, she deeded the farm to her two sons, and created a “simple” will leaving everything else (the cash investments) to her two daughters. She used a national legal self-help service to get templates of the necessary documents and was satisfied she had done everything she needed to do while avoiding the costly fees of an estate planning attorney.

However, when Mom passed away things were not nearly as simple as she had hoped. The will that she had prepared was not valid because it did not comply with the complexities of Ohio law. Therefore, her plan to divide the investments among her daughters failed. Not only did her assets have to go through the hassle and expense of probate, but since there was no valid will, her assets were divided according to state law.

This gave the investments equally among all four children. Since she had already given the farm to her sons, they ended up with a larger share and were under no obligation to even things out as mom had intended. However, it turned out that they would need the extra cash to cover the large capital gains tax burden that was created when mom gifted the farm to them while she was alive.

I see cases like this all too often. Estate planning is one of the most important decisions you will make and it is always best to consult a professional who specializes in that area. The legal fee paid to ensure that your estate is in order, up to date with state law and tailored to the specifics of your family will be far less than the fee associated with sorting out a flawed do-it-yourself strategy. Estate planning is like anything else: you get what you pay for.



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