Category: Advice

For countless seniors, the family home represents more than just bricks and mortar. It’s a treasure trove of memories, a cornerstone of family heritage, and very often, a person’s most significant asset. As we age, the importance of ensuring this beloved asset is safe from unexpected life events becomes paramount. Whether it’s safeguarding against future medical expenses or ensuring the next generation inherits the property, there’s much to consider. Here, we delve into some key asset protection strategies that every senior, and their families, should be aware of.

Understanding Home Equity and Its Significance

For most seniors, a significant portion of their net worth is tied up in the equity of their home. Equity refers to the home’s current market value minus any outstanding mortgage or loan amounts. Over time, as property values increase and mortgage balances decrease, equity grows.

It’s essential to recognize this equity’s value, not just from a financial perspective but also in the realm of estate and Medicaid planning. Mismanagement or lack of planning could mean this valuable asset is vulnerable to creditors, medical expenses, or other unforeseen costs.

Revocable vs. Irrevocable Trusts

Trusts are powerful tools in estate planning. They can offer control over assets, provide tax benefits, and ensure smoother transitions upon passing. However, when it comes to asset protection, especially for the home, the type of trust you set up matters immensely.

Revocable Trusts: These are flexible trusts where the grantor (the person creating the trust) retains control and can make changes. While they’re great for avoiding probate, they don’t offer robust asset protection against creditors or Medicaid estate recovery.

Irrevocable Trusts: As the name suggests, once assets are placed in this trust, changes cannot be easily made without the consent of the beneficiaries. The upside is that assets within this trust are generally protected from both creditors and Medicaid estate recovery, making it a more secure option for those looking to protect their home’s equity.

Medicaid Planning and the Home

A significant concern for many seniors is the potential for high long-term care costs. Medicaid can be a lifeline, but without proper planning, your home may be vulnerable. A few key points to understand include:

Medicaid Asset Limit: To qualify for Medicaid, one’s assets must be below a certain threshold. While the primary residence is often exempt, this exemption can have limits based on equity value.

Medicaid Estate Recovery: After the passing of a Medicaid recipient, the state might attempt to recover costs from the individual’s estate, potentially including the home. Proper legal structures, like the aforementioned irrevocable trust, can mitigate this risk.

Homestead Exemptions

Many states offer what’s known as a ‘homestead exemption’. This can protect a portion of your home’s equity from general creditors (though not from secured creditors like your mortgage lender). The specifics vary by state, but it’s a tool that can offer an added layer of security.

The Power of Life Estates

Another valuable tool in the asset protection toolkit is the life estate. This strategy involves transferring property ownership while retaining the right to live in it for life. It can be a strategic way to ensure a home passes to heirs without going through probate while also potentially protecting it from Medicaid estate recovery.

Conclusion

Asset protection, especially as it pertains to the family home, is a nuanced area that demands thoughtful planning. Strategies that work for one family might not be suitable for another, given the intricacies of individual financial situations and goals. As such, it’s crucial to partner with professionals who can offer tailored advice.

At Beasley & Ferber, we’re committed to guiding seniors and their families through the maze of asset protection. If you’re considering ways to safeguard your home for the future, reach out to our experienced team for a comprehensive consultation.

Social Security Disability (SSD) benefits serve as a lifeline for millions of Americans who cannot work due to severe medical conditions. Yet, the process of applying and securing these benefits often feels like navigating a maze, rife with complications. With the age demographic changing and more seniors looking to understand their entitlements, it’s paramount to break down the complexities.

Understanding the Basics of SSD Benefits

At its core, the Social Security Disability Insurance (SSDI) program pays benefits to you and certain family members if you have worked long enough and have a medical condition that prevents you from working for at least a year or is terminal. The emphasis is on “long-term” disability, distinguishing SSDI from other programs that give aid to people with partial or short-term disabilities.

Eligibility Criteria: Are You Qualified?

Determining eligibility for SSD benefits requires a two-pronged assessment:

Work Credits: Before you can qualify for SSDI, you need to accumulate work credits. Typically, you can earn up to four work credits per year. The number of work credits needed varies by age. For example, if you become disabled before age 24, you might qualify with as few as six credits.

Severity of Disability: The SSA has a stringent definition of disability. For adults, the condition must interfere with basic work-related activities for at least 12 months. If it doesn’t, or if it isn’t expected to last that long, you won’t be considered disabled in the SSA’s eyes.

Application Process: Tips and Preparations

Documentation is Key: Before starting your application, gather all pertinent documents. This includes medical records, doctor’s reports, and a detailed history of your employment. The more concrete evidence you provide, the smoother your application process will be.

Online Applications: The Social Security Administration (SSA) offers an online application process. It’s convenient and eliminates the need for an in-person visit, especially useful for those with mobility issues.

Stay Patient and Persistent: A large number of SSDI applications are denied initially, often due to incomplete information or lack of evidence to support the disability claim. If denied, don’t be disheartened. You can appeal the decision, and many applicants secure their benefits during the appeal process.

The Waiting Period: What to Expect

Once you submit your application, it’s not uncommon for the process to take several months. During this period:

Your application is reviewed: This involves a detailed analysis of your work history and severity of the disability.

Additional Examinations: If the evidence provided is inconclusive, the SSA might request additional medical exams or tests, at no cost to you.

Approval or Denial: Once a decision is made, you will receive a notice. If approved, the notice will display the benefit amount and when payments start. If denied, it will explain why and provide information on the appeals process.

The Road Ahead

While the Social Security Disability benefits system seems daunting, understanding its intricacies and preparing adequately can make the journey smoother. For seniors and their adult children, securing these benefits can mean the difference between financial stability and uncertainty. But remember, you don’t have to navigate these complexities alone.

Contact Beasley & Ferber

Need more guidance or think a legal consultation could benefit your application process? Reach out to our team at Beasley & Ferber. We specialize in elder law and are equipped to support you through the nuances of SSD benefits. Let us help you make the future clearer and more secure. Contact us today.

Financial scams targeting seniors are, unfortunately, all too common. As the older population grows, so does the number of unscrupulous individuals looking to take advantage of their hard-earned savings. Seniors may be more susceptible to these scams due to factors like loneliness, a willingness to trust, or a lack of knowledge about technology. This blog post will explore some common financial scams targeting seniors, warning signs to look out for, and steps you can take to protect yourself and your loved ones.

Common Financial Scams Targeting Seniors

Scammers use various tactics to target seniors. Here are a few of the most prevalent scams to be aware of:

1. Telemarketing Scams

Scammers may call seniors, pretending to represent a charity, a well-known company, or even a government agency. They may ask for personal information, such as Social Security numbers or bank account details, or request immediate payment for a fake product or service.

2. Email and Phishing Scams

Phishing scams involve sending fraudulent emails that appear to come from legitimate sources, like banks, credit card companies, or government agencies. These emails often ask recipients to click on a link or provide personal information, potentially leading to identity theft or financial loss.

3. Lottery and Sweepstakes Scams

In this type of scam, seniors are told they’ve won a lottery or sweepstakes but need to pay a fee or provide personal information to claim their prize. This is merely a ploy to steal money or sensitive data.

4. Grandparent Scams

Scammers may call seniors, pretending to be a grandchild in distress who needs money immediately. They often rely on the senior’s emotions and urgency to keep them from verifying the situation.

5. Romance Scams

Seniors using online dating platforms may be targeted by scammers who create fake profiles, form a relationship with the senior, and eventually ask for money for various reasons.

Warning Signs of Financial Scams

Recognizing the warning signs of financial scams can help protect you and your loved ones. Some red flags include:

• Unsolicited phone calls or emails asking for personal or financial information.
• Requests for immediate payment or to wire money.
• Pressure to make quick decisions without time for research or consultation.
• Offers that seem too good to be true or require upfront fees.
• Inconsistent or suspicious behavior from online contacts.
• How to Protect Yourself and Your Loved Ones

To safeguard against financial scams targeting seniors, consider implementing the following measures:

1. Educate Yourself and Your Loved Ones

Learn about common scams targeting seniors and discuss these issues with your loved ones. Open communication can help raise awareness and ensure everyone is prepared to recognize and avoid scams.

2. Safeguard Personal Information

Never share personal or financial information with unsolicited callers or emailers. Keep sensitive documents secure, and shred any unneeded documents containing personal information.

3. Verify Information

Before providing information or making payments, verify the legitimacy of the organization or individual. Research the company online, check for reviews, or consult with friends, family, or professionals.

4. Use Technology Wisely

Install antivirus software on your devices, use strong passwords, and keep software up-to-date. Be cautious with online dating and social media platforms, and avoid sharing too much personal information.

5. Report Suspicious Activity

If you or a loved one suspects a scam, report it to local law enforcement, the Federal Trade Commission (FTC), or your state’s consumer protection agency. Reporting can help protect others and potentially stop the scammers.

Contact Beasley & Ferber for Trusted Legal Advice

Financial scams targeting seniors can have a devastating impact on your hard-earned savings and your peace of mind. At Beasley & Ferber, our experienced elder law and estate planning attorneys are dedicated to helping you protect your assets and secure your financial future.

If you or a loved one have concerns about financial scams or need guidance in asset protection planning, don’t hesitate to contact us today. Our team is ready to answer your questions and provide the support you need to make informed decisions about your financial and legal needs.

According to a recent article in Forbes, more than 90 percent of elderly people who were surveyed express the intent to remain living in their own homes as they age and are committed to never moving. This is true even if it means living alone after a divorce or the death of a spouse. Unfortunately, that is not always possible.

Signs Your Parent Should No Longer Live Alone

There comes a time when no matter how much your elderly parent wants to remain living alone, it is no longer feasible for them to do so. A few signs that they need help are:

• They exhibit personality changes such as getting angry easily, or being withdrawn and silent or lashing out.
• Forgetting to take their medications.
• They have trouble paying their bills.
• They neglect their personal care demonstrated by not brushing their hair, not getting dressed appropriately, and forgetting things like eating.
• They can no longer use their computer and have trouble even with their phone.

If this is happening to your elderly parent, it is time to have a serious discussion with them about making a change.

Tips on How to Discuss Living Options with Your Elderly Parent

It is not easy to talk to your parent about making a change in their living environment when they belligerently refuse to move from their home and give up living alone. SeniorSafetyAdvice, an online information resource for seniors and their caregivers, offers some suggestions for discussing this touchy subject with your loved one:

• Listen to your parent’s point of view. Treat them like an adult. Do not talk down to them as though they are children. Understand why they are so resistant. Are they simply afraid to move and fear they will be giving up control of their life? Give them time to consider your suggestions.
• Give your parent a sense of control over deciding how the family will cope with the changes that need to be made. Don’t argue with them but be firm and calm. If possible, give them choices. For example, do they need grocery delivery, meals-on-wheels, or an in-home health aid? Do they need an assisted-living environment?
• If they can be convinced to do so, include them in the research about what to do next. Will they need to move or is it more feasible to have a caregiver move in with them?
• If moving seems like the only option, focus on the type of place that will meet their needs, not a place that you think would be wonderful for you if you were in their situation.
• Be firm about discussing with them the potential consequences of them continuing to live alone.

Contact Beasley & Ferber for Assistance

After you’ve had your thoughtful discussion with your loved one, make an appointment with Beasley & Ferber. We are here to help with all things related to elder law and will discuss with you options for care for your elderly parent who can’t or should no longer live alone.

Dementia and, in particular Alzheimer’s Disease, get a lot of attention in the media. So much so, that when an elderly loved one starts to exhibit memory loss, dementia is the first thing that occurs to family members and close friends. This can be a misleading and dangerous thing to assume for many reasons. First, no one should be casually diagnosed with a medical condition without professional input. Second, it’s unfair to a person to be categorized with a condition when no such professional diagnosis has been made.

Important Differences Between Dementia and Age-Related Memory Loss

There are distinguishable differences between dementia and simple age-related memory loss that need to be understood. Dementia is a physical symptom of a physical condition. Alzheimer’s is just one disease that has dementia as its most prevalent symptom. Dementia is a disabling condition that progresses and worsens over time, often to the point where a person forgets who they are or who their family members are.

Age-related memory loss is something that happens to almost everyone over a long enough period of time. It is typically minor and not debilitating. People with age-related memory loss may repeat themselves, or forget why they came into a room, but they can usually still take care of themselves and recall earlier life events.

Dangers of Casually Diagnosing a Person With Dementia

When a person is casually diagnosed with dementia without having received a professional diagnosis, all sorts of estate planning problems can occur. The first one is the assumption that the person is not able to make sound choices about their estate. Later on, once the estate plan has been documented and executed, the person may balk at certain aspects that don’t align with their true wishes. Not only does this lead to family discord, but it also necessitates beginning the entire legal process over again, which is timely and costly.

Why a Professional Diagnosis is Essential

Establishing diminished mental ability is essential before a family member or anyone else can legally make decisions on behalf of someone else. In most cases, a court order is also needed. There is a great deal of grey area around estate planning for those with dementia, and that grey area is even bigger if a person attempts it without first having a professional diagnosis. If the professional diagnosis comes back with unexpected results, the plan could be negated. If the diagnosis affirms the suspected dementia, then the estate plan needs to be organized in such a way as to accommodate the expected increased needs of the dementia patient. Either way, it’s not just prudent to get the professional diagnosis first; it’s essential.

The very fact that family members are concerned about a loved one’s mental state is often a good sign that they have that person’s welfare in the right perspective. Working with an established elder law attorney in New Hampshire can help to ensure that the loved one’s estate is properly planned. Contact Beasley & Ferber today for more information.