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Estate & Elder Care Law

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What is a life settlement?

A life settlement, sometimes called a “senior settlement”, is the selling of one’s existing life insurance policy to a third party for a one time cash payment. In exchange for the one time cash payment, the third party becomes the owner and beneficiary of the policy.

What is a Viatical Settlement

“Viatical settlements” typically involve those with two years or less to live and the Viatical settlements are regulated and handled by the life insurance company itself. Life settlements, on the other hand, do not involve the insurance company. Instead, Life Settlements involve third party investors and brokers who buy the life insurance policy.

How do life settlements work?

Usually, the third party who purchases the life insurance policy is an experienced institutional investor. It’s worth emphasizing that after the sale is made, the investor who purchased the life insurance plan becomes the new beneficiary and owner of the policy. The investor who bought the policy hopes to make a profit by receiving the policy’s death benefit. Usually, the investor will purchase the policy for more than the face cash surrender value of the policy but for less than the net death benefit.

When do people usually consider a life settlement?

A life settlement is typically made by those who believe that they and their families will benefit more by taking cash now, instead of receiving the death benefit later. They also will not have to pay anymore premiums. A life settlement is also considered by those older folks who would otherwise have to surrender their policies or allow them to lapse due to financial constraints. The potential ramifications for a life settlement are huge. For example, if you receive Medicaid, then the life settlement could result in your disqualification.

Exercise caution:

Before you decide if you should take a life settlement, you should explore your options, compare rates, and speak with an elder law attorney or financial professional, such as a CPA or financial advisor. This professional should be someone who does not have a financial or other type of stake in the buying or selling of the policy involved in the life settlement. Because the ramifications of selling your life insurance policy are extreme, such as Medicaid eligibility and your listed beneficiary losing out on the net death benefit, you should proceed with caution. Speak with a professional who can clearly and exactly spell out your options.
 

As our loved ones age, there may come a time when they need to receive long-term care or move to a long-term care facility. Long-term care can be extremely expensive, and as a result, some choose to take out a long-term care insurance policy ahead of time.

Long-term care insurance is one method by which the costs of long-term care can be largely covered or reduced. However, long-term care (abbreviated as “LTC”) insurance policies can be very expensive and they need to be purchased before long-term care is actually required. Some LTC policies have limitations and loopholes that still leave significant long term care costs to the policy holder even if they bought it ahead of time. This is why it’s very important to know what the specific policies of your LTC insurance are.

For example, some long-term care insurance policies have a “waiting period” before the policy will kick in. This means that you will need to pay for long term care out of pocket at first, often for 30 days or more, until the policy will start covering the ongoing costs.

Some LTC insurance policies have maximum lifetime limits that cover the costs of care until that maximum dollar amount is reached. Once that maximum dollar amount is reached your loved one will be required to pay out of pocket for continued care. In selecting a LTC insurance plan, you need to do you research and choose the right plan for you or your loved one.

If you or your loved one has LTC insurance, and you need to go to a long-term care facility, you should contact the long-term care facility and make sure that your insurance will be accepted there. Not all long term care insurance is accepted at every facility. If it is accepted, you should verify with them exactly what items are covered and what expenses you may have to pay out of pocket. This will help you keep your budget in place without any surprised that could hurt your bottom line.

If you have any questions about your care options free to reach out to us at Scott Counsel. Our goal is to provide you with the best care planning services that meet your needs and circumstances. Our team would be glad to help you.
 

Medicaid is a joint federal and state program that provides health coverage for certain eligible persons who have low incomes and minimal assets. Medicaid is not to be confused with Medicare which is an entitlement program for those aged 65 or over, those on disability, or those with kidney failure, among other things. Medicare is something you become entitled to because you or a spouse paid for it through taxes by Social Security. Medicaid, on the other hand, is not an entitlement program, and instead you must meet exact eligibility guidelines.

Medicaid eligibility is different for each state so it’s important that you check with a professional that is familiar with the laws and regulations of your specific state. Specifically, eligibility for Medicaid is determined at the state level and it is mainly based on your income and the amount of assets you own. The income requirements for Medicaid are determined by the MAGI (Modified Adjusted Gross Income) and the exact income limit will be based on factors such as the size of your household.

In addition to income limits, there are also caps on the value of assets that someone may have to be eligible for Medicaid. While the specifics may vary from state to state, this countable asset cap is usually around $2,000. However, there are assets that may be exempt from being counted towards this cap. Assets that may be exempt could include your family home, your automobile, life insurance, among other things.

There are other specific provisions that may allow the spouse of a nursing home resident to retain about one half of the couple’s joint assets from being counted toward the asset limit for Medicaid. This situation typically arises when one spouse is applying for Medicaid and the other spouse is relatively healthy. This is called the “Community Spouse Resource Allowance” and there are very specific requirements that need to be met. As such, it’s important to discuss this possibility with a professional, such as a professional Medicaid Planner.

An important consideration to keep in mind when applying for Medicaid is that there is a “look back” period. In most states, except California, the look back period is five years. This means that Medicaid will “look back” five years from the date of your Medicaid application to make sure that you didn’t sell or give away assets for less than their fair market value. This “look back” period is meant to ensure that people don’t give away assets to their friends and relatives just to get under the Medicaid asset limits.

If you or someone you love needs assistance with Elder Care law issues, call 856-281-3131. Let us help ease your stress and give you a plan.
 

Planning for your passing or the passing of a loved one can be a very difficult process. It’s a process that many people may be inclined to avoid altogether. However, avoiding or ignoring end of life planning won’t solve your problems. In fact, by ignoring end of life planning, you may be putting very tough decisions and even guesswork onto the shoulders of those who love you most; and no one should have to guess what their loved one would or wouldn’t want regarding their end of life care.

Accordingly, it is very important that you discuss and plan with your close relationships and medical professionals the health care choices surrounding end of life care and the manner of your death. Before you begin, you may want to spend some time thinking about what you want your end of life care to look like. For example, do you want all potential medical treatments to be tried in order to save your life, regardless of the impact on your quality of life? Would you prefer to spend your final days with family and friends in the comfort of their home, or would you like to spend them in a supervised medical environment where loved ones can come and visit? To help make your wishes known and ensure they are followed, there are very specific legal and healthcare tools that you can use regarding end-of-life care and the manner of death.

Some common legal tools available for end of life planning:

End-of-life planning can include direction on where the patient wants to spend their final days, which treatments they wish to receive, and whether they want to pursue all life saving or resuscitation options.

An Advanced Directive or “Living Will” allows your wishes regarding medical treatment to be known in the event that a person is unable to communicate their health care decisions. The medical decisions in an advanced directive can include decisions about end-of-life care. Having a family discussion about your health care choices and advanced directive can help make sure that everyone in the family is on the same page and knows exactly what you want. A Living Will can include instructions on the use of breathing machines, resuscitation if the heartbeat or breathing stops, or whether the patient wants tube or intravenous feeding.

It’s important to keep in mind that a living will is not the tool you can use to leave property to your loved ones, name an executor, or name a guardian for any children. That document is called a traditional will or a last will and testament. In this case, we’re discussing a living will, which is also called a health care declaration. A living will is a document that you can use to describe the kind of health care you wish to get if you are incapacitated and cannot speak on your own.

Additionally, a “Do Not Resuscitate” or “DNR” request can also be signed by the patient. A “DNR” request instructs health care professionals that if your heart stops or you stop breathing, they should not make an attempt to resuscitate.

Other end of life planning can include signing a durable power of attorney that designates someone as your health care proxy or “agent” to make your medical decisions if you become unable to do so. If you do name a health care proxy, you should make sure that this person is comfortable with your choice and knows your wishes regarding end of life care. It may also be helpful to discuss these issues with your family when everyone is together so that everyone knows your wishes.

Planning end-of-life care can ensure that your wishes for the manner of your death are followed. In the event that you become unable to make health care decisions, it also alleviates the burden from your family members in having to guess what you may or may not want. If you or your loved one needs assistance with any of these topics or Elder Care law issues, call 856-281-3131. At Scott Counsel, we would be glad to answer your questions and help you craft the plan that works for you.

There often comes a point in the care of an elderly loved one where living at home is no longer a safe or appropriate option for them. When this is the case, it’s time to explore long-term care facilities. Choosing the right LTC (long-term care) facility for your loved one is a big decision and many caregivers often don’t know where to start. Among the common questions we get, two of the most common questions are

  1. What type of facility is appropriate for my loved one and where can I find one? and
  2. What level of care can we afford?

First, you’ll need to decide what type of long-term care facility is appropriate for your loved one. This includes choosing from Residential Care Facilities, Assisted Living Facilities, Skilled Nursing Facilities, Continuing Care Retirement Communities, among others. Each of these facilities is geared towards assisting the elderly who are within a certain spectrum of required care. For a brief overview, the following types of common LTC facilities include:

  • A residential care facility provides supervision, grooming care, meals, socialization, among other things, but it does not provide skilled nursing care.
  • An assisted living facility is for those who retain some independence but need daily help with their medication management, housekeeping tasks, and personal care. These facilities often have nurses on-site or on-call for your loved ones.
  • A skilled nursing facility or a “nursing home” provides 24/7 around the clock nursing services for those who require it. A nursing home is typically for those who need help with most or all of their self-care needs.
  • A Continuing Care Retirement Community, also called “Life Care,” provides independent living, assisted living, and skilled nursing facilities in a single location. This allows your loved one to stay at the same community, even if their health begins to deteriorate.

Once you’ve chosen the appropriate type of long-term care facility, you need to choose the right one for your loved one. To do this, you should research the facilities available to you by talking with family, friends, and health care professionals about the facilities in your area. If your loved one has a specific type of chronic or progressive health condition, you should search for a facility that offers specialized care to meet their specific needs.

Medicare actually provides a “nursing home compare” feature that has detailed information about every Medicare and Medicaid certified nursing home in the country. After you’ve selected a few options, you should prepare questions and schedule visits and tours with those facilities that seem like they could be a good fit. You should look at the living environment, meal times and the food, the kindness and competency of the staff, policies and safety features, and how the residents seem to like living at the facility.

As a caregiver, your role doesn’t end when your loved one moves into an LTC facility. While you may no longer be taking care of the hands-on tasks associated with care, your loved one will still need you to be their advocate. This job often entails paying bills, scheduling appointments, and ensuring appropriate follow-up care for your loved one. Help be the voice that your loved one needs. With an attentive caregiver and an LTC that is a good fit, you can make sure that your loved one is receiving the best possible care that they need.

Of course, even when you find the right place, there is still the question of affordability. The stark reality is that long-term care facilities are often very expensive. Most often, these facilities are paid for out of pocket. For private financing, common ways to pay for the care includes long-term care insurance, personal savings, reverse mortgages, annuities, and other options. For government programs, if you qualify, Medicaid may pay for some types of long-term care. There are also various other government programs available, if you qualify, that may help for some or most of the expenses of long-term facility care.

We hope this overview was helpful, and if you or someone you love needs assistance with Elder Care law issues, call 856-281-3131. We’re here to help ease your stress and give you a plan that meets the needs of you and your loved one.
 

When you’re caring for an older adult, caregiver stress is part of the job.

That’s why it helps to have a long list of ways to cope and get relief. You’ll always be able to find an option that works for the situation you’re in at the moment.

The Rising Spoon has a great article that shares over 30 helpful stress relief tips. From these, we selected the top 15 stress relief tips that are most useful and realistic for busy caregivers.

We’ve also added extra ideas and resources especially for caregivers to make it even easier to benefit from these stress relief strategies.

15 quick tips for managing caregiver stress

1. Take slow, deep breaths

One of the fastest ways to calm down and relieve anxiety is to breathe deeply and mindfully. Taking slow, deep breaths quickly shifts your body out of stress mode and allows you to relax.

Breathe in through your nose and out through your mouth. This gets more oxygen into your blood and gives you something concrete to focus on.

We recommend a free mobile app called Breathe2Relax that uses visual cues to help you breathe at a slow, steady rate.

 

2. Use aromatherapy
Smells can instantly trigger significant memories and are a powerful way to affect the body’s nervous system.

For example, a research study showed that lavender essential oil can have a calming effect similar to anti-anxiety medications.

Suggestions:

  • Use a diffuser to scent the air with relaxing essential oils
  • Place a drop of essential oil in your hands, rub your palms together, cup them to your face and inhale
  • Put drops of essential oil on a few cotton balls in a dish to diffuse the scent

 

3. Drink calming herbal tea
Sipping a caffeine-free herbal tea is a wonderful way to take a break and rehydrate your body too. Some calming herbs like mint, lemon, or ginger can even do double duty as aromatherapy.

We love Lemon Balm, Chamomile Lemon, Cup of Calm, Ginger Chamomile, Cinnamon Stress Ease, Turmeric Ginger, and Peppermint.

 

4. Meditate or pray
Meditation is excellent because it’s free, can be done anywhere, and has been proven to reduce stress. If you’re religious, prayer works in a similar way.

Studies show that meditation reduces blood pressure, improves immune function, and increases the ability to concentrate. It’s also efficient – you can get the benefits in just a few minutes a day.

We recommend a free mobile app called Calm.com that helps you relax with meditation in just 2 minutes. If that one isn’t your cup of tea, we’ve got 5 additional meditation app recommendations.

 

5. Release tension with exercise
Exercise is an excellent way to relieve tension, boost mood, and improve both physical and mental health.

It helps you burn off nervous energy, do something that’s just for you, and focus on something positive. Regular exercise also helps you sleep better.

You don’t need to spend hours at the gym to get the benefits, even a 5 minute workout makes a real difference. We’ve even created a gentle, super-efficient 4 minute workoutthat’s perfect for caregivers.

 

6. Talk with a trusted friend
Connecting with supportive people that you trust is another good way to reduce stress.

You’ll be able to vent your frustrations, know that you’re not alone in the world, and talk about something other than your older adult.

Meeting in person is ideal, but phone or video chat work well too. In a pinch, texting back and forth is still helpful.

 

7. Practice gratitude
Thinking about the things you’re grateful for helps you notice the good things in your life, no matter how small or big they may be.

Getting into a habit of gratitude helps you look on the bright side more often and adds a new perspective. Instead of focusing on the negative aspects of life, it will be easier to balance things out with a dose of the positive.

We’ve got suggestions for how to create a gratitude calendar, 5 simple ways to practice gratitude, and a 21-day gratitude challenge.

 

8. Listen to music
Music is an amazing way to improve your mood.

Whether you like to sing and dance to energetic tunes or relax with soothing classical or jazz, turning on some music is a sure way to help you de-stress.

Create a playlist on a free online music service like iHeartRadio, Spotify, or Pandora.

 

9. Go outside
Spending time outside, breathing fresh air, and looking at the natural scenery is a simple, but effective way to reduce caregiver stress.

Studies have shown that spending time in nature reduces the level of stress hormones, boosts the immune system, reduces anxiety and depression, and more.

 

10. Massage tired muscles
Caregivers often hold stress in their neck and shoulders.

The next best thing to an in-house masseuse is to use a foam roller, massage therapy ball, or even a regular tennis ball to massage those knots right out of your tense muscles.

 

11. Stretch or do yoga
Something as simple as stretching once or twice a day can relieve a lot of tension.

Do a few stretches at your desk, a 5 minute yoga stretching routine, or treat yourself to a relaxing 20 minute beginner yoga session.

 

12. Do something creative
Take a break from reality once in a while and focus on a creative project like painting, writing, photography, gardening, cooking, coloring, crafting, or knitting.

This takes your mind away from thoughts of caregiving and directs your energy toward something positive, fun, and productive.

 

13. Do a brain dump
If your mind is spinning with to dos, worries, reminders, and errands, take a moment and write it all down.

Get everything that’s bouncing around your brain out onto paper so you won’t feel like you need to remember it all anymore. That definitely takes a load off your mind!

 

14. Watch or read something that makes you laugh
Sometimes you just need a good laugh. Read a funny book, browse the cartoons in the paper, or watch an amusing video. We love funny animal videos like this one.

 

15. Take a spa-like bath or shower
A hot bath or shower is a refreshing way to start the day and a soothing way to unwind at night.

Take the relaxation factor up a notch by adding magnesium flakes or epsom salts and some essential oils or scented bath salts.

Bathing with magnesium is said to soothe sore muscles, reduce stress, and improve circulation. This is easiest in the bath, but you might not have time to clean the tub and have a soak.

For a quick spa-like experience, run the shower with the drain stopped and let everything dissolve at your feet, creating a detox foot soak and scented steam (but make sure the shower floor isn’t slippery). Or, try using a magnesium spray like this oneor this simple DIY version.

DailyCaring.com

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