Each year there is a study released by the MetLife Mature Market Institute that closely examines the costs associated with long-term care. The numbers for 2010 indicate that these costs are quite high and trending upward. The national average expense for 12 months residing in a private room in a nursing home last year exceeded $83,500, an increase of 4.6% over 2009 figures.

People interested in living in an assisted living community could expect to pay nearly $40,000 per year in 2010. Once again, these are national averages; in the state of New Jersey long-term care costs are considerably higher with a year in a private room in a nursing home averaging in excess of $100,000.

You may shrug off these figures under the assumption that you are probably not going to need long-term care. Considering the fact that seven out of every 10 people who reach the age of 60 will indeed need such care according to the United States Department of Health and Human Services you may want to adjust your thinking if you are indeed under this assumption.

Some people decide to aim toward Medicaid eligibility as a response to long-term care costs. There is a resource limit of $2000, but some significant assets such as your home, your motor vehicle, and some personal possessions don’t count against this number. So there is a strategy called the “Medicaid spend-down” that is sometimes employed, and it is rather self-explanatory: you spend down your assets in an effort to stay within the Medicaid resource limit.

If you decide to spend down in an effort to qualify for Medicaid it is important to understand that there is a five-year “look-back” period.  You are penalized for divesting yourself of assets during the five years preceding your application for Medicaid. The penalty is based on the cost of long-term care in your state. For example, if the average monthly cost is $5000 and you gave away $50,000, your eligibility would be delayed by 10 months.

To explore the matter further and gain an understanding of your options for addressing long-term care expenses, simply arrange for a consultation with an experienced elder law attorney.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

There are some things that you hear about that can really be upsetting, and perhaps the grandaddy of them all are cases when someone who is especially vulnerable is taken advantage of. In the field of elder law there is scourge of this nature running rampant in the form of elder financial abuse.

There is a study that was recently published by the MetLife Mature Market Institute. They worked alongside researchers from the University of Kentucky and Virgina Tech along with the National Committee for the Prevention of Elder Abuse (NCPEA) to compile statistics and draw extrapolations. The results are contained in the The MetLife Study of Elder Financial Abuse: Crimes of Occasion, Desperation, and Predation Against America’s Elders.

“Crimes of occasion” are instances when someone seizes an opportunity that they see to exploit a senior citizen financially without making a career out of it. “Crimes of desperation” are usually committed by family members and people known to the victim who are desperate for money and willing to resort to just about anything to get their hands on some it. And “crimes of predation” are perpetrated by criminals that are proactively looking for seniors that they can target.

There are many different ways that seniors can be financially abused. Identity thieves find seniors to be especially attractive targets because in many cases they have great credit and own their own homes outright. They also fall prey to scam artists of all persuasions, from telemarketing scams to Ponzi schemes to phony home improvement rackets. Some elders are lured into signing powers of attorney by a family member or someone otherwise known to them. Others are slowly but consistently taken by “helpers” who help themselves to the victim’s financial resources.

Awareness is key, and so is good legal advice. To learn more about elder financial abuse and how to protect yourself from it, simply arrange for a consultation with an experienced elder law attorney.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

The government program that provides income for senior citizens that just about everyone is well aware of is Social Security. Exactly when you qualify for your full benefit is going to vary depending on the year that you were born. For people who were born between 1943 and 1954, full retirement age is 66. It then rises by two months each year until 1960. Individuals who were born in 1960 and after reach full retirement age on their 67th birthdays.

It should be noted that the above parameters are current as of this writing. There is a lot of talk in Washington about making cuts to the program, and one way of doing that would be to raise the retirement age.

Social Security is due to people who have paid a sufficient amount into the program through the payment of payroll taxes. Those who have not done so are not eligible for Social Security when they reach full retirement age.

But, people with financial need who do not qualify for Social Security may be eligible to receive SSI or Supplemental Security Income. To qualify you must have less than $2,000 in countable assets. But, the value of some significant property does not count, such as your home and your car. This limit is the same one that exists for qualification for Medicaid benefits.

The maximum monthly SSI payment that a single person can receive is $674 at the present time, and a married couple may receive $1010. In addition to this monthly fixed income, people who have been approved for SSI are also eligible for Medicaid automatically. This is of interest to many seniors because Medicaid pays for long term care, such as a stay in a nursing home or an assisted living community. Medicare is not set up to absorb these costs, which are considerable and rising all the time.

To learn more about this and other matters of interest to senior citizens, simply arrange for a consultation with an experienced elder law attorney.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

When you start to explore the field of elder law and estate planning you will invariably come across many different legal terms, and you may not be entirely familiar with all of them. For this reason we like to examine some of the legal instruments that are commonly used by elder law attorneys to provide our readers with a little bit of background information. To this end we would like to take a look at powers of attorney, which serve an important purpose in the field of elder law.

A power of attorney is a document that is executed by the grantor who names an agent or attorney-in-fact who is empowered to act in the grantor’s behalf. There are limited powers of attorney, which can be confined to a single act, such as a real estate transaction or the sale of a motor vehicle. And there are general powers of attorney that give another individual or individuals the right to act in your behalf in all matters.

When it comes to elder law issues, powers of attorney are integral to incapacity planning. If you were to become incapacitated and unable to make your own decisions the court could be petitioned to appoint a guardian to act in your behalf, and if the petition was granted you could become a ward of the state. Most people would prefer to choose their own legal representatives to make decisions on their behalf in the event of their incapacitation. This is achieved through the execution of powers of attorney.

But, standard powers of attorney do not remain in effect after the incapacitation of the grantor. So, elder law attorneys will generally recommend the execution of durable powers of attorney. These legal instruments do in fact remain in effect even after the incapacitation of the grantor. In some jurisdictions, one can execute a springing durable power of attorney, and these instruments take effect only upon the incapacitation of the grantor.

To gain a deeper understanding of powers of attorney, simply arrange for an incapacity planning consultation with a licensed, experienced elder law attorney.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

A lot of people think that retirement planning involves looking forward to a time of travel and leisure, and indeed this is part of the equation. But there is also a time that many people experience after their active retirement years that you must take into consideration if you want to be properly prepared for all the eventualities of aging.

Many individuals are not cognizant of just how likely it is that they will someday need long-term care during their twilight years. At any given time 25% of people 85 years of age and older are living in nursing homes. According to statistics provided by the United States Department of Health and Human Services 70% of Americans who reach the age of 65 will indeed require long-term care at some point in time. The costs associated with this care are very high at the present time and they are expected to continue to rise.

There are a number of possible solutions for funding long-term care, and one of them would be to take out a home equity conversion mortgage. These are federally backed reverse mortgages, and to qualify you must be at least 62 years of age and have significant equity in your home or own it outright. Because no payments are expected you can’t default and your credit and income are not a factor. You can continue to live in the home for as long as you want to, and the loan becomes due when you either move voluntarily or pass away.

You could utilize monies derived from the loan to fund ongoing in-home care if you needed assistance with your day-to-day needs. Another option would be to use the funds to purchase long-term care insurance. If the time came when you needed to enter a long-term care facility, the expenses would be covered by your insurance and the reverse mortgage loan would become due. You could then sell the house, use a portion of the proceeds to satisfy the debt, and do whatever you wanted to do with the rest of the proceeds from the sale.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

Many people look forward to the future anxious to enjoy their retirement, and with the proper planning your golden years can indeed be among the best periods of your life.

This being stated, the preparations for the future don’t end with your active retirement years. The reality is that Americans are living longer than ever, with people routinely living into their mid to late eighties and beyond. We understand more about healthy lifestyle choices these days, and medical science is advancing every day. But with this increased longevity comes certain potential challenges, and if you are wise you will prepare for these contingencies in advance so that you are not taken by surprise.

Many people are not aware of the fact that it is likely that you will spend some time in a long-term care facility at some point in time. 70% of those who reach the age of 65 will need some form of long-term care, and one out of every four people who are at least 85 years old are living in nursing homes. These are some poignant statistics that paint a clear picture.

Do you want to have your family pick the place where you will reside should you need long-term care? Most people would rather make their own decisions when they are fully capable of doing so, but you have to have the foresight to do some research in advance. There is a great resource online at the Medicare website called Nursing Home Compare that is useful, and you can also ask family and friends for recommendations. Once you have compiled a short list you can visit the facilities to see them first hand and decide which one would be best for you.

You may never need long-term care, but it is comforting to know that you have the ideal community already picked out should you someday find that you need assistance managing your day to day needs.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

A lot of people don’t really think that much about the future because they are very much engaged in the ups and downs of the present. Years can turn into decades and before you know it you can see your retirement age beckoning over the horizon, and many people find that they are totally unprepared. So when you think about the topic of estate planning you should recognize the fact that yes, you need to plan for the distribution of your assets after your death. But you also need to prepare for the eventualities that go along with reaching an advanced age and the sooner you get started the better.

One of these is the possibility of experiencing a period of time when you are not mentally capable of making your own decisions. It is estimated by the Alzheimer’s Association that some four out of every ten individuals who reach the age of 85 are suffering from Alzheimer’s disease, which causes dementia.

Including all causes of dementia in addition to Alzheimer’s, upwards of 50% of those who are at least 85 years of age are experiencing dementia, which can make it impossible to make sound personal, medical, and financial decisions. To protect yourself from a court-ordered guardianship you must be proactive and execute the appropriate durable powers of attorney, and this is clearly something you would want to discuss with an elder law attorney.

The other elder law matter that we would like to highlight here is that of long-term care and the costs involved. It is estimated that 70% of people who reach the age of 65 are going to need long-term care, and the costs are extremely high and rising all the time. Medicare does not cover long-term care expenses, but Medicaid will if you can qualify. This too is a strategic matter that is best addressed with expert legal advice.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

There are few things that are more frustrating than realizing that you could have taken advantage of a money making (or money saving) opportunity after it was too late. This is one of the reasons why it is a good idea to retain the services of an elder law attorney. These legal specialists are deeply immersed in all of the issues that are relevant to seniors every day of the week for decades on end, and they know every nook and cranny of the system. They are also up-to-date as changes to the laws take place, and this kind of expertise is invaluable to you when you are planning for all of the eventualities of aging.

One of the matters that is getting a lot of attention in elder law circles these days is that of long-term care. Given the high and constantly rising costs you really have to take advantage of all of the resources that are available to you. With this in mind, if you have served honorably in the United States armed forces you may be entitled to an often overlooked benefit called the Veterans Aid & Attendance Pension.

Veterans A & A is available to qualified veterans who need assistance taking care of their day to day needs, things like dressing, eating, personal grooming, etc. To meet the length of service requirement you must have served at least ninety days on active duty with a minimum of one of these days served during a time of war.

If you qualify as a single veteran you can receive a maximum of $1,632 per month (as of this writing). This amount is not going to cover a stay in a nursing home in its entirety, but it would certainly help. And if you simply need in-home care, the Veterans Aid and Attendance Pension may well be enough to cover it in full depending on the extent of the assistance you need.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

Preparing assets to be passed on to your heirs after you pass away is a matter that is not especially difficult to face because we are all aware of the fact that we will die someday and most people can accept their own mortality. But the reality is that people don’t pass away suddenly for the most part without experiencing any decline. Medical science is capable of some amazing things these days and lifespans are getting longer. So there’s a very real possibility that you will live into your late 80s and perhaps beyond. You may do so while enjoying robust good health, but statistics would indicate that diminished faculties go along with reaching such an advanced age.

Considering the fact that dementia strikes about half of the people who reach the age of 85 you really have to take the matter seriously if you want to be prepared for all the eventualities that elders face. It is probably a good idea to engage in open dialogue with your trusted family members and friends long before you notice any decline so that everyone is on the same page and you can work together with your support system as years pass. With this in mind, we would like to highlight the disturbing problem of elder financial abuse.

The MetLife Mature Market Institute states that some $2.6 billion is lost each year due to instances of elder financial abuse. It is estimated that only one in 25 of these cases is reported because the perpetrators are usually family members or people who are otherwise known to the victims. The victims keep quiet to protect these people in most cases, and at other times they are simply embarrassed at having been taken or they don’t know that they’re being abused.

This is indeed a sad state of affairs, but bringing the issue out into the open can only help to raise awareness. Elder financial abuse is a very real danger, and if you have taken no steps to protect yourself legally now is a good time to contact an experienced elder law attorney to arrange for a consultation.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

Retirement planning can be something that is actually a lot of fun because you have the opportunity to consider the things that you would like to do when all of your time is your own. Your active retirement years are indeed a reward of sorts for a lifetime of hard work and commitment to raising your family, but when you are playing from a financial perspective you have to consider the totality of your post-work years.

The reality is that seven out of every 10 people who reach the age of 65 will need some form of long-term care eventually, and this can be in-home care, residence in an assisted-living community, or a stay in a nursing home. The costs associated with long-term care are quite high and on the rise, with the national average for a year-long residence in an assisted-living facility sitting iat nearly $40,000 and a private room in a nursing home carrying a $83,500 annual price tag. New Jersey is well above these national averages.

Below we would like to look at a handful of ways that people address these costs.

Pay Out-Of-Pocket

Perhaps the simplest way to address the expenses that go along with long-term care is to keep them in mind when you are creating a long-term financial plan. Knowing that you have the resources to pay your own way regardless of contingencies that may crop up is a good feeling, and this is one the reasons why many people take advance planning so seriously.

Long-Term Care Insurance

Long-term care insurance is an option that is available to you as well, but there is a delicate balance involved with this type of coverage. It is more affordable if you obtain the coverage long before you expect to need it, but do you want to be paying insurance premiums for 40 years? By the same token, if you wait until you have reached an advanced age the cost of long-term care insurance can be stifling.

Medicaid

Medicaid is a government program that many seniors utilize as a way to pay for long-term care.  Though it is intended for those who do not have the means to pay for their own medical care, it is possible to qualify while still retaining possession of much of your personal property in many cases.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.