Indiana Estate Planning & Elder Law

Developing a Long Term Care Plan for Your Parent

Long term care (LTC) is comprised of a variety of services that meet medical and non-medical requirements for people who cannot care for themselves for long periods of time. It is a highly individualized care system which can be formally or informally provided. Formal facilities that provide long term care go by various names such as residential continuing care facility, nursing home, and personal care facility. Informal long term care is often provided, in its earlier stages, by a family member who is willing to provide their parent personal care, meals, laundry services, housekeeping, and transportation services to and from appointments.

These informal care providers are often referred to as the “sandwich generation” - those people who support their own children while at the same time care for aging parents. The stress of providing practical living and emotional care as well as financial support for two sets of generations, as well as themselves, can become overwhelming and have negative effects on the provider’s self-care and well-being. It is a difficult decision to make but at some point formal LTC becomes a necessity for some parents.

The Challenges of Placing Your Parent in Long Term Care

When the time comes for your parent to be placed in a formal long-term care arrangement, things can get complicated very quickly. If a parent has not planned for their own aging process finding the right facility that accepts their healthcare coverage can be daunting. If a parent has very little income and assets, they may be able to qualify for Medicaid. However, because Medicaid has strict income and asset requirements, this can leave the spouse at home with very little to live on.  It is important to engage an elder law attorney to help make a decision about Medicaid eligibility. An elder law attorney may be able to protect more assets for the parent who remains at home through legal planning strategies.

Paying for Long Term Care Can Drain Assets

Conversely, if a parent is very financially stable, then it may be possible to pay thousands of dollars a month to a quality health care facility. However, years of paying thousands of dollars a month can severely impact their savings and ability to leave a legacy to their children. With proper legal advice, a plan to pay for care without losing everything is possible.

Options for Seniors in the Financial Middle

What about those parents who are financially stuck in between? It is another type of sandwich, the “financial sandwich” - seniors not poor enough to qualify for Medicaid but not wealthy enough to cover their own costs. There are still options available to those who fall into this category. It is never too late (or too soon) to talk to an elder law attorney about options to find and pay for long term care.

Planning for Long Term Care

Long term care is becoming more expensive and less accessible as the increasing baby boomer population continues to put a strain on the US health care system. Now is the time to engage your parents in discussions about the type of care they would want if long term care is needed, including where they want to receive the care, and how it should be paid for. It’s important to document your parent’s wishes in appropriate legal documents that name an agent to make decisions if your parents are unable to. Contact our Fishers or Rockville office for assistance in navigating these issues and creating a plan to make sure your parents get the best care possible without losing their life savings. 

 

Medicaid Assistance and Planning for Your Ill Spouse

You may see it coming:  Unfortunately, as hard as you try, you just can’t take care of your ill spouse at home any more. At this emotionally difficult time, the last thing you need is the stress of not knowing where to find the money to pay for the steep costs of institutional care. 

Advance planning is a must. As soon as you can – ideally at least five years before serious health problems arise – take advantage of many elder attorneys’ willingness to talk with you for free, or for a modest initial-consultation charge.

We are here to help you navigate the complexities of the Medicaid program. This is a governmental fund available to meet the staggering expense of institutional care, but the ins and outs of the qualification rules are complicated and mistakes can be costly. Here are three points to help you understand what your attorney will be telling you.

1. “Resources” and “Income”: The Difference

Medicaid assistance is available only to those who own very little. The Medicaid rules determine what “owning very little” actually means. A person can only own around $2,000.00 of what Medicaid calls “resources.”

Resources include cash in the bank, CDs, the cash value of insurance policies, investments, and the like. Income includes regular paychecks, Social Security, or payments received for child support. Both income and resources are potentially “counted” by Medicaid as “available.” To qualify for assistance, available income and resources must be carefully spent or transferred away. 

2. Exempt Resources

Some resources are not counted or, in other words, are exempt. This means the Medicaid rules exclude them from adding up to the $2,000.00 limit. These resources are sheltered from Medicaid’s requirement that the applicant must spend down almost everything before assistance will be available.

A married couple’s residence, one motor vehicle, household goods and furnishings, medical equipment, jewelry, and other items are exempt. This means that an ill spouse can still qualify for Medicaid assistance even if the couple owns those resources. There’s no need to give them away or sell them to qualify.

The distinction between “exempt” and “non-exempt” assets can be tricky, though, and should first be assessed by a qualified elder-law attorney before any action is taken.

3. What the Well Spouse Can Keep 

The Medicaid rules permit a spouse who remains at home to keep a portion of the couple’s resources. This is known as the “community spouse resource allowance” (CSRA). Of course you’d like to see the well spouse keep as much as possible within the CSRA limits. Planning can arrange the distribution of resources to make that happen.

Here is where the difference matters between “resources” and “income.” Medicaid distinguishes between the well spouse’s income and the couple’s resources. Resources over the CSRA limit must be spent down or carefully transferred. As to income, the well spouse can keep it up to a certain level, so he or she will have enough money to live on. The Medicaid rules call this the “monthly maintenance needs allowance” (MMNA). 

For example, if the well spouse gets Social Security benefits of only $500.00 a month, but her allowed MMNA is as high as $2,000.00, it makes sense to convert some of the couple’s resources into raising her income up to the MMNA limit. This is not a simple matter, though, and should be done only on the advice of a qualified elder-law attorney.

Planning for Medicaid eligibility can be complicated. The sooner you plan, the more strategies are available to protect your resources. Contact our office to schedule an initial consultation with a qualified elder-law attorney today.

I’m not rich but …

I hear this sentence all the time. Usually, the sentence is finished with things like:

“…I want what I do have to go to my children…”
“…I don’t want my money going to the nursing home…”
“…I would rather my money go to my kids than to Uncle Sam/tax man…”
“…I don’t want my estate to go through probate…”
“…I’m concerned about how my child is going to spend their inheritance…”

I could keep going on and on, but my point is that estate planning is not about how much money you have – it’s about your wishes and specifically, how to ensure your wishes are appropriately accomplished. Your estate plan is your storybook and going through the estate planning process simply gives you the pen and paper to write the story. (What came first – the chicken or the egg? I hope you get my point!)

Speaking of stories, grab a cup of hot cocoa and take a look at some of my most recent meetings:

• I met with a gentleman – we were meeting in regards to his mother who would be moving into a skilled nursing facility soon. He said, “She doesn’t have a lot … but the house means more to her than anything because that’s where she raised us kiddos.” Solution? We created an Asset Protection Trust, so that she was able to keep her house and still qualify for Medicaid benefits.
• I met with a married couple – they were in their mid-30s and recently had two children. They recognized the need to put people in place to take care of their children should something happen to them. Solution? We did a package containing “vital” documents – Power of Attorney, Health Care Proxy, Will. Now, they can stop worrying about “what if something happens to us?!”
• I met with a married couple – they were in their mid-70s. They shared with me that the husband’s father “spent everything down to qualify for Medicaid” and that they “did not want that to happen to them.” Solution? We created an Asset Protection Trust as a pre-planning strategy for any long-term care costs down the road.
• I met with a married couple – they were in their early 60s. Their children were grown, successful, unmarried, and generally had no concerns around them. They were not worried about asset protection nor concerned about probate. Solution? We updated their existing plan to bring it up to date so that it became reflective of their current wishes.
• I met with a widowed gentleman – he was only in his 30s. Before his wife’s passing, they had a child. It was important to him to ensure that if something happened to him, the child could immediately be taken care. Solution? We created a Revocable Trust to ensure probate was never an issue and he also included staggered distributions to the child – like 25% at age 25, 25% at age 30, and remaining 50% at age 35.
• I met with a married couple – they were in their 40s and were both on their second marriage. The wife had children from her prior marriage; though the husband explained that the children “were like his own.” It was important to them to “get their ducks in a row” first before considering additional planning like a Revocable Trust. Solution: We did a basic package of all the vital documents.
• I met with a lady – she was widowed and in her early 70s. She had property in Indiana and farmland in another state. We had a conversation around probate – when individuals own property (like houses, farmland, condominiums, vacation homes, etc.) in multiple states, probate will likely occur in every state which she has property. Solution? We created an Asset Protection Trust to not only avoid probate down the road, but also gain asset protection against long-term care costs.

As you can see, every story is different. Estate planning is not about how much money you have – it’s the goals/wishes that usually come after the words “I’m not rich but…” (And hey, by the way – a solid 99% of us are not rich either, so welcome to the majority!) Your estate planning goals/wishes are likely not the same as mine or your brother, friend, cousin, colleague, etc. Fortunately, we all have the opportunity to write our own storybook. Start writing yours today by calling us at 317.863.2030 or visiting our website at HunterLawOffice.net.

Jennifer L. Rozelle, J.D.

Procrastination is the Primrose Path to Destruction!

I had a college professor who gave only semester-long assignments. No daily or weekly homework or reading. Rather, he would start each semester with the assignment of whatever essays, projects or research we would be required to complete, and then say no more about it during regular classes. Students were expected to responsibly progress toward completion of their assigned projects without reminders or check-ins throughout the months-long semester.

The only reminder was a sign posted in the classroom, containing these words, “Procrastination is the Primrose Path to Destruction.” He pointed it out on the first day, when the assignments were made.

Inevitably, some students would put off the work, and find themselves in a mad scramble at the end of the semester in a frantic effort to get everything done before the deadline. You’d see them and hear their complaints about this massive project that was “unfairly” thrust upon them … as if they hadn’t been warned, or they had somehow forgotten that time passes whether you do anything or not. In any event, it was a lesson in accountability and personal responsibility. The lesson was learned, either the easy way or the hard way, but learned nevertheless. Putting things off does not end well.

I think of this advice often. It comes to my mind every time I work with a family who are cleaning up a mess of financial and personal matters after the death of a loved one. The loved one who didn’t seem to have any system for managing their affairs, and never took the time to write even a simple estate plan. Maybe they just kept putting it off and agreeing that they would do it “someday.”

Just as inevitably as the end of the semester comes for students, so comes the end of our lives. It is inevitable. As they say, “no one is getting out of this alive!” We know it. We know for certain that, eventually, death will come, and there will be affairs to be cleared up. The question is whether we choose to prepare and make things easy for our families, or procrastinate and enjoy the primrose path that leads to destruction. In the case of the students, “destruction” means a poor grade. In the case of life, “destruction” means the loss of significant portions of our estate that must now be expended in order to finally settle our estate. The same lesson is learned.

At this time of year, a phrase enters our language patterns; “I’ll take care of that after the first of the year.” As if some magical thing is going to occur on January 1 that will suddenly provide us with the time and energy needed to complete the task. We all know there is no magic to January 1 – it is simply the “next day” – yet we push things there. Why? It’s a convenient method of procrastination! Unfortunately, and inevitably, the 1^st of the year comes, and now we have a big pile of un-done to-dos that we’ve put off for no real reason. So we put some of those things off a bit longer. Including that Will we promised to get done this year.

Procrastination is the Primrose Path to Destruction. Start the process now, and you’ll be checking that task off your list before the 1^st of the year. No procrastination = no destruction.

To get your estate planning done once and for all this year, contact us by clicking here and giving us a little information.  Or you can call us at (317) 863-2030

Susan Hunter, Esq.

        

Give Yourself A Gift

I’d like to think I’m normal. That being said, I’d like to think we all have this place tucked deep in the back of our brain that tells us the stuff we should probably start doing, what goals to set, or what bad habits we should break—I certainly have that place in my brain.

Ever notice that this place tucked in the back of our brain is the place where most of our New Year resolutions come from? Yes, in the back of my brain, I’m going to get back to my old college shape someday, sigh. Then my brain tells me that the holidays are approaching and I should just wait until the New Year—yeah, not going to happen, sigh again. That stuff back there in the brain is important stuff, but we know that it will present some physical or emotional challenge to actually get it done, and we commonly make excuses not to do it.

A few weeks ago someone told me they had been “thinking” about doing their estate plan for the last 8 years. It was tucked in the back of the brain. Each year would come, and they would tell themselves “I’ll get it done this year,” sometimes as a part of a resolution, sometimes not. Well, their estate plan is done now—and this someone is extremely satisfied that it no longer lurks in their head. They had no idea it would be so easy.

Obviously, I can’t read peoples’ minds—however, I know that estate planning often falls into this space. So, what should you do? Make space for other New Year resolutions—get this old goal off your list before the new year arrives! That’s right, give yourself a gift this year as the holidays approach—the gift of knowing you’re heading into next year with one less ‘to-do’ floating around in your head. More importantly, this gift can give you much more peace of mind during the holidays—you know, as you spend time with family and think about the important things in life (hopefully J). You’ll thank yourself, and someday your family will too!

I’ve been told (by many) that the only difficult part of the estate planning process is the first step—picking up the phone and scheduling an appointment. I get it. Think of estate planning like a band-aid, and as they say, “just rip it off.” It doesn’t hurt after that!

I hope to see you this November or December, 2018. That way you can spend next year solely focused on your health so that your estate plan isn’t needed for many, many more years.  If you want to join us for one of free upcoming educational workshops, and get the estate planning process started once and for all, just click here to let us know and we'll  be in touch.  Or you can call us at (317) 863-2030.

Kyle

The 5 Primary Documents Necessary For Estate Planning Done Right

There is certainly not a one-size-fits-all estate plan. Instead, you have a “menu” of estate planning documents and you should choose what best fits your family and your goals. There are primarily five documents that you should, at least, consider when you embark on the estate planning journey:

1. Living Will Declaration: This document specifically deals with artificial nutrition and hydration, and what your wishes would be if they would be needed. You have three “answer choices” – 1) yes, you do want artificial nutrition and hydration; 2) no, you do not; or 3) you leave the decision to be made by your Health Care Representative. You ultimately initial next to your preference.
2. Health Care Proxy: This document allows you to designate who will make health-care decisions for you if you are unable to make such decisions for yourself. It also should include HIPAA language, which allows your Health Care Representative to communicate with your medical professionals. It is recommended, but not required, to have a Successor listed.
3. Financial Power of Attorney: This document allows you to designate who will make legal and financial decisions for you if you are unable to make such decisions for yourself. It is often recommended to have a “General Durable Financial Power of Attorney” so the designated individual’s power is not restricted in any way from serving in your best interest.
4. Last Will and Testament: This document primarily does two things: 1) names who gets your “stuff” (your beneficiaries) after you pass away and 2) names who is in charge (Executor). A Judge, through a Probate Court proceeding, “officially” appoints the Executor and grants him/her the appropriate authority to administer and distribute the deceased person’s estate.  
5. Living Trust: There are multiple types of Living Trusts and different families create Trusts for different reasons. Though, the two most popular reasons are to 1) avoid probate and/or 2) gain asset protection against long-term care costs (i.e. Medicaid planning strategy) or lawsuits (i.e. business owners, farmers, high liability professions).

Simply put: an estate plan should evolve as you age. The estate plan that you created when joined the armed services at eighteen or when you had your first child may not be “enough” to satisfy your goals anymore.

Society is different and has certainly evolved, too. Now, more than ever, people want to avoid probate and/or want to gain asset protection against long-term care costs, lawsuits, and/or creditors. Learn your options – the five documents above are a great start. Making an informed decision, as it relates to your estate plan, may be the best gift you ever give to your family or beneficiaries.

If you want to come join us for a free Lunch & Learn and discover more about estate planning and how to begin the process, just click here to save your spot today.

Jennifer Rozelle, JD

The Free Bridge

We are often asked about the moral or ethical issues associated with long-term care planning in the context of asset protection. To address these issues, consider the story of the Free Bridge as told by US Supreme Court Justice Louis Brandeis:

“I live in Alexandria, Virginia. Near the Supreme Court chambers is a toll bridge across the Potomac. When in a rush, I pay the dollar toll and get home early. However, I usually drive outside the downtown section of the city and cross the Potomac on a free bridge.

This bridge was placed outside the downtown Washington, DC area to serve a useful social service, getting drivers to drive the extra mile and help alleviate congestion during the rush hour.

If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion.

If, however, I drive the extra mile and drive outside the city of Washington to the free bridge, I am using a legitimate, logical and suitable method of tax avoidance, and am performing a useful social service by doing so.

For my tax evasion, I should be punished. For my tax avoidance, I should be commended.

The tragedy of life today is that so few people know that the free bridge even exists.”

Asset Protection Planning is the Free Bridge. Elder law attorneys provide the map to get you across that bridge. We’ve dedicated our careers to creating a roadmap for our clients that will guide them as they traverse the rocky terrain along their life’s journey. The laws and regulations that govern our public benefits system can be confusing, and we are here to help you find your way. So, whether you choose to pay the toll or go the extra mile to the free bridge, let us provide the roadmap to your destination.  Click here and give us a little information and we'll be in touch!

Susan Hunter        

Welcome Crystal, Team Hunter's New Paralegal

Please Help Us in Welcoming our New Paralegal, Crystal!

Crystal joined the Hunter Estate & Elder Law team this month. She enjoys attending sporting events, taking family trips to the lake, and biking. She is also actively involved in her family charities.

“I joined Hunter Estate & Elder Law because I feel passionately about helping others during their time of need.”

– Crystal

We recently visited with Enclave Senior Living at Saxony to talk about what makes them unique. Here's what they had to say.

The Enclave Senior Living at Saxony, is a luxury senior living community located in Fishers close to IU Saxony Hospital, St. Vincent Fishers and Shopping. The community offers 164 comfortable, maintenance-free apartments, with luxury amenities, chef-prepared meals, concierge services, transportation, and enriching activities.   

The facility offers At Your Service Dining, which is an all-inclusive meal service that allows residents to eat anytime they are hungry during the hours of 7:00 am and 7:00 pm.  They offer three levels of care including Independent Living, Assisted Living and Memory Care.  

While living in the Independent Living a time may come when daily activities become too difficult for your loved one to complete on their own, if this occurs Enclave Senior Living at Saxony staff steps in to help with more day to day tasks.  The staff can help with the following day to day activities Bathing, Dressing, Toileting, Medication Reminders, Transportation, and much more.  

The team of professional nurses and other highly trained staff members will meet with you upon arrival to assess your needs and put together a plan that's most beneficial to you.

Residents enjoy a variety of activities such as Colors of Spectrum Dining Events, New Residents Social, Happy Hour, Book Club, Bingo and other games. The residents venture out to weekly activities such as Sporting Events, Sight Seeing Tours, Movies, Shopping, Lunch Outings, Mystery Bus Tours and Casino Outings.  

They offer transportation on Tuesday and Thursday to Physician Appointments, on Monday to the Grocery Store, and on Wednesday to Lunch Outings.

Thank you for visiting with us and sharing how unique Enclave Senior Living is!

About our visit with Clearvista Lake Health Campus in Northeast Indianapolis...

We recently visited with Clearvista Lake Health Campus located in Northeast Indianapolis to talk about what makes the Clearvista Lake Health Campus community unique, this is what she had to say:

The facility offers a warm, welcoming place to call home. The staff has a team attitude and they come to work every day wanting to take care of the residents. Patients needing rehab are known for coming back to Clearvista Lake Health Campus after another hospital stay, because they feel at home during their stay. They offer Short-Term Rehab, Respite Care, Transitional Care, Skilled Nursing, and Memory Care.

The Short-Term Rehab known as "Home Again" is a comprehensive, post-acute rehabilitation program that helps patients return home following an illness or injury. Rehabilitation services provided are Physical therapy, Occupational therapy, Speech therapy, Orthopedic recovery, Cardiac recovery, Stroke recovery, and IV therapy.

Skilled Nursing Care provides 24-hour skilled nursing and comprehensive long-term care services that meets the specific needs of the residents. They recognize they are caring for individuals, each with different wants, needs, beliefs and expectations.

Their Health Center combines a state-of-the-art facility with a safe and caring environment. They accept private pay along with Medicaid for Skilled Nursing.

The event calendar at Clearvista Lake Health Campus is packed with activities including Entertainment, Bingo, Men's Group, Happy Hour every Friday, Movie and Popcorn, Crafts, and much more. They will also be hosting a Father's Day event for the Men to enjoy with their family. They have a program called Live a Dream, the program helps residents fulfill their dreams, they have granted wishes such as a retired 2nd grade teacher was able to go back and teach for a day.

They also offer transportation to Physician Appointments, Shopping and Trip Outings.

Thank you for visiting with us and sharing how unique Clearvista Lake Health Campus is!