Archive for July, 2015

Stay Socially Engaged As You Age

Tuesday, July 21st, 2015

Staying socially active as you age not only makes life more fun, it can be good for your health. Researchers with the Rush Alzheimer’s Disease Center conducted a study that found that seniors who were highly social had a rate of cognitive decline 70 percent lower than less-social seniors. Interacting with others and keeping your mind stimulated can help ward off depression and dementia in some cases. Perhaps surprisingly, such mental stimulation and social interaction seem to have positive effects even when they take place on the Internet. Researchers from the University of Alabama at Birmingham found a 30 percent drop in symptoms of depression among Internet users.

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There are lots of easy ways for seniors to stay socially engaged and intellectually stimulated. Seniors should, according to their ability, make an effort to attend social events, visit friends and neighbors, and keep in touch with family members, if not in person then by phone, email or social media. Seniors can also play games, such as crossword puzzles, or chess to keep their minds active.

Older individuals may also want to do volunteer work or even work a part-time job for the social benefits. Non-profit organizations like At Home on the Sound are run by volunteers and assist their members with a range of services that are designed and coordinated to empower senior citizens and support their wellness, independence and vitality while aging in place, in their own homes within the community they love.

People often become socially withdrawn as they age, but that is something that should be resisted as much as possible. It is important for seniors to take advantage of opportunities for social interaction, to get more satisfaction out of life, and to stay healthy.

 

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Learn the Facts About Medicare, Medicaid and Long-term Care

Tuesday, July 14th, 2015

More than 40 million seniors rely on Medicare for their everyday health insurance needs, and many mistakenly assume that Medicare will also cover long-term care if it is needed. In fact, there are specific limitations to Medicare coverage for long-term care, and such care is often covered instead by Medicaid, which has eligibility requirements. Therefore, it is important to understand how these two public benefit programs affect long-term care expenses.

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Medicare pays for health care for people age 65 years and older or with certain disabilities. Under certain conditions, Medicare will pay for short-term stays in skilled nursing facilities, hospice care, or home health care. Generally, Medicare focuses on medically necessary care such as doctor’s visits and hospital stays, rather than personal care services associated with long-term care.

Until recently, there was an unevenly enforced “improvement standard,” by which Medicare beneficiaries were denied coverage if their condition was no longer improving. However, the settlement of Jimmo v. Sebelius, a 2013 lawsuit, clarified that no such “improvement standard” can be enforced, and people with chronic conditions can continue to be eligible for Medicare to pay for their medical treatment.

Nevertheless, Medicare generally does not provide for room, board and custodial care such as that offered in a skilled nursing facility. Therefore, people needing such care usually use personal resources, long-term care insurance, and Medicaid. Medicaid has income and asset eligibility requirements, and many seniors will have to spend down some assets to qualify. The financial requirements for Medicaid can be complicated, and the advice of an experienced elder law attorney can be invaluable in planning for long-term care.

 

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The Importance of Asset Protection Strategies

Monday, July 6th, 2015

Protecting your assets from creditors is an important part of estate planning. There are several different strategies that may be effective. Because individual situations vary and the laws regarding these strategies can be complex, you should only use them with the advice of an experienced estate planning attorney. With that in mind, here is an overview of some techniques for asset protection:

lawyer-or-notary-with-cl Give certain assets away before any claims arise. When done properly, such a gift may succeed in transferring property while keeping it out of an estate that may face claims from creditors. However, creditors may try to claim the transfer is fraudulent if it is made after claims arise, if the gift makes you insolvent, or if you place limits on the gift such that you still maintain control over the assets.

In the business context, a basic strategy for protecting your personal assets is to operate businesses as limited liability entities, such as corporations or limited liability companies (LLCs), rather than as partnerships or sole proprietorships. However, be aware that if you blur the line between your personal finances and those of your company, you may open your personal assets up to creditors of your business.

At the family level, an important asset protection strategy is for a married couple to hold title to property as tenants by the entirety, rather than as tenants in common. This can prevent one spouse’s creditors from asking the court to partition the property. The laws on this vary by state, but in New York, third parties cannot partition a tenancy by the entirety. However, when a married couple may be subject to estate tax, there are reasons why owning property as tenants in common may be more advantageous.

 

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Seniors Affected By Housing Debt

Wednesday, July 1st, 2015

Housing debt is affecting the retirement plans of a growing number of seniors. Paying off a home mortgage prior to retirement has traditionally been a key part of many people’s plan for their golden years, but today many seniors find themselves still in debt in their sixties and seventies.

According to the Office for Older Americans, part of the federal Consumer Financial Protection Bureau, in 2013 there were 6.5 million seniors paying a mortgage, or 30 percent of all seniors. That is an increase from 22 percent in 2001. Data from the Federal Reserve show that 21 percent of people age 75 and older were carrying home loans in 2011, up from 8 percent in 2001.

Littman Krooks Elder LawAlong with the number of seniors with housing debt, the average debt amount is also growing. In fact, according to the financial protection bureau, since 2001 the average debt has more than doubled for people age 65 and older, from $43,400 to $88,000.

The effects of the Great Recession and accompanying collapse of the housing market are still being felt, and many older homeowners are still “underwater” on their homes, owing more than the home’s value, especially in the cities hardest hit by the housing bust.

Housing debt leaves seniors in a difficult situation: what was supposed to be a nest egg can actually hinder their retirement plans. There are no easy solutions, but seniors are addressing the issue in various ways, such as by working in retirement or downsizing their home and lifestyle.

 

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