Category Archives: Insurance

If you think Long Term Care is expensive in Ohio…

Written on July 13, 2010 by Thom Cooper in Estate Planning, Insurance, Long Term Care Insurance
0 Comments - Leave a comment!

by Attorney Thom L. Cooper

The monthly average cost a long term care stay in Ohio is $6,023 per month according to the Ohio Department of Job and Family Services.  That works out to $72,276 per year.  However if you want to see where we might be headed, let’s look at the cost of some of our trend setting states nearby.  According to a recent Genworth Financial Survey.  A semi-private room will set you back $100,923 in New Jersey,   $110,980 in New York, and $126,108 in Connecticut.  Want a private room, add about 10 percent.  And…if you think that is high,  Alaska, may be a nice place to visit but don’t have a medical emergency there and go into a nursing home since a semi-private room there will deplete your savings at the rate of $218,453 per year!

  • How much is your home worth?
  • How long to go through it with a long term care stay?
  • Who can afford this?

And…to make it worse.  If you go into a nursing home, or receive in home medical benefits,  in Ohio and the State helps pay the bill they will put a liens on your home for these costs.  It is no wonder that people are desperately worried about this problem.

There are things that can be done to protect your home…but you must act now since there are time limits which must run to fully protect your home.   But….these time limits don’t start until you act!!

For help…

Contact us, or contact someone else….

…but please act now.

Your home and assets are at stake.

For a copy of the Genworth study see:

http://www.genworth.com/content/products/long_term_care/long_term_care/cost_of_care.html

Beware of Insurance Scams

Written on May 4, 2010 by Thom Cooper in Insurance
0 Comments - Leave a comment!

Insurance fraudThe information below was taken mostly from a news release by the Ohio Department of Insurance on Monday April 26, 2010.

Potential Life Insurance Scheme Thwarted

Insurance Director Revokes California Agent’s License

COLUMBUS – If someone offers to give you money to take out a life insurance policy on yourself for the purpose of selling it to an investor, they are probably involved in a stranger-originated life insurance (STOLI) scam, which is illegal in Ohio.  Ohio Department of Insurance officials recently stopped such a scam from taking place.

On March 16, 2010, Ohio Department of Insurance Director Mary Jo Hudson revoked the insurance license of Alex Kozonshvili of California for alleged violations of Ohio insurance law, including misrepresentation and untrustworthiness.

The Department’s investigation revealed that in August 2008, Mr. Kozonashvili allegedly submitted a universal life insurance application to Prudential Insurance Company for $9 million worth of coverage for a 74 year old woman from Cleveland.  In the application, he misrepresented where she lived and claimed that she had assets worth $12.5 million.  The agent allegedly offered the potential victim at least $8,000 to participate.  The potential victim lives on a fixed income of less than $1,000 a month.  Fraud was suspected and reported to the Department.

Director Hudson is encouraging seniors to be on the lookout for these types of schemes so they don’t become victims.

“STOLI transactions involve someone betting on your life” said Director Hudson. “We want Ohioans – especially our senior citizens – to be cautious about any kind of scheme that involves someone offering you money or a low-cost loan to take out a life insurance policy on yourself.  We want people to empower themselves with knowledge about insurance, which exists to protect them, not as a vehicle for fraud or financial exploitation.  In this case, the good work of the underwriters and investigators at Prudential Insurance and our fraud and enforcement investigators protected someone from potential harm.”

For more information about STOLI, visit www.insurance.ohio.gov/Consumer/Pages/STOLI.aspx.

Ohioans who believe an agent is committing fraud or misconduct should call the department’s fraud hotline, 800-686-1527.  Information about agent fraud and misconduct can be on the Department’s website, www.insurance.ohio.gov.

The new estate tax can bite

Written on May 3, 2010 by Thom Cooper in Estate Planning, Insurance, Taxes
0 Comments - Leave a comment!

Tax_Debt_SmallI would never have believed two years ago that it would be possible for us to be going back to a 1 million federal estate limit. But, in spite of many legislative bills and resolutions it appears to be helping.

How did we get here? Under the 2001, Bush tax cuts, the amount exempt from estate taxes went up gradually over 8 years then took a big jump to $3.5mil in 2009. In 2010, both the federal estate tax and 2010 the federal estate tax was eliminated for one year only.

After the Bush tax cut expired at the end of 2010, the estate tax is scheduled to return in 2011. At the same unfavorable rights applied ten years earlier, before the Bush tax cuts. In 2011 the amount that is exempt for federal estate tax will be $1mil and the tax on the rest will be 55% as a base, and go as high as 60% and this tax is imposed on all of your assets including your life insurance, IRAs and fair market value of all of your real-estate including farms.

It is true that money that goes to a spouse is exempt from federal estate tax. But be careful, leaving money to a spouse only serves to double your estate, resulting in even more taxes being collected when the second spouse dies.

Most of those outside Congress in Washington, assumed that some type of political deal will be struck before the estate tax disappears in 2010 and comes roaring back in 2011. That has not been the case in spite of much grumblings and proposals.

Many of my clients have told me, “I never thought that I would be here facing a catastrophic estate tax, where between state and federal taxes, up to 70% of my estate could be lost to taxes.”

There are things that can be done. We suggest that you come in and visit us and we’ll provide suggestions as to what you can do to reduce this estate tax from falling on you.

We would suggest that you come in before you face the devastating effect of losing your money to this tax.

Frequently Asked FINANCIAL Questions & Answers:  Part 1

Written on February 23, 2010 by Thom Cooper in Asset Protection, Insurance, Investments
0 Comments - Leave a comment!

lock_money_annuity

Over the past several months our office has been receiving an increasing number of clients calling with question about various financial and insurance products.  Most of these questions have been related to how certain products work and especially as to how these products may or may not fit into the clients overall plan to avoid taxes, reduce probate cost and protect their assets from being lost to the cost of aging, including the cost of a nursing home stay, assisted living or home health care.

Listed below are a couple examples of questions received and answers that hopefully will help clear up certain misunderstandings. ……

Question: Is an annuity product protected from being lost to the cost of a nursing home stay if the annuity has waiver of surrender charges?

Answer: No.  The waiver of surrender charges in the event of a nursing home stay is just that, a waiver of the surrender charges should you need to cash in your annuity to help pay for the cost of your nursing home stay.

Please note:  The only annuities that are protected against being lost to a “nursing home spend down” are those being used in conjunction with other legal documents, such as a trust.  If anyone tells you that they have a stand alone financial product, such as an annuity, that will gives you nursing home protection it is not true.  If you have any specific questions in this regard, please call Sandy Workman at our office for a more detailed explanation.

Question: I was recently approached about a single premium whole life insurance policy and was told the death benefits would not be taxable when I die.  Is his correct?

Answer: Most life insurance death proceeds are not subject to income tax or Ohio death tax if paid to a named beneficiary.  However, if you are the owner of the life insurance policy, the death proceeds are included in your gross estate for federal estate taxes.  These death proceeds may or may not be taxable depending on the size of your estate or when you die.  With larger estates, these taxes can usually be avoided by using a certain type of trusts.

Our plan is to continue to provide answers to frequently asked questions as part of the blog postings.  Should you have any questions at all, please contact us at 1-800-798-5297.

Attention: Medicare Beneficiaries Medicare Premiums, Deductibles and Copayments for 2010

Written on January 7, 2010 by Thom Cooper in Insurance, Medicaid
0 Comments - Leave a comment!

news-icon

  • Basic Part B premium: $110.50/month (was $96.40) (But most beneficiaries will not pay this increase due to a “hold-harmless” provision in the Medicare law prohibiting Part B premiums from rising more than that year’s cost of living increase in Social Security benefits. Part B deductible: $155 (was $135)

  • Part A deductible: $1,100 (was $1,068)

  • Co-payment for hospital stay days 61-90: $275/day (was $267)

  • Co-payment for hospital stay days 91 and beyond: $550/day (was $534)

  • Skilled nursing facility co-payment, days 21-100: $137.50/day (was $133.50)

Premiums for higher-income beneficiaries:

  • Individuals with annual incomes between $85,000 and $107,000 and married couples with annual incomes between $170,000 and $214,000 in 2010 will pay a monthly premium of $154.70.

  • Individuals with annual incomes between $107,000 and $160,000 and married couples with annual incomes between $214,000 and $320,000 in 2010 will pay a monthly premium of $221.

  • Individuals with annual incomes between $160,000 and $214,000 and married couples with annual incomes between $320,000 and $428,000 in 2010 will pay a monthly premium of $287.30.

  • Individuals with annual incomes of $214,000 or more and married couples with annual incomes of $428,000 or more in 2010 will pay a monthly premium of $353.60.

Rates differ for beneficiaries who are married but file a separate tax return from their spouse:

  • Those with incomes between $85,000 and $128,000 will pay a monthly premium of $287.30.

  • Those with incomes greater than $128,000 will pay a monthly premium of $353.60.

For more information please visit www.ohioinsurance.gov, www.medicare.gov or call our office at 800-798-5297.

“Taken in part from ElderLawAnswers.com”



Related Posts with Thumbnails

Blog subscribe via Email