Indiana Estate Planning & Elder Law

Friends of the Firm Friday - Heartland Home Health & Hospice

 

             

 

We had the opportunity to speak with representatives from Heartland Home Health and Hospice, the Indiana affiliate, to learn more about the clients they serve and services they provide. The mission of Heartland Home Health and Hospice is: "Our Heart Stretches Across the Nation." Their goal? To provide comfort care to thousands of patients in communities and neighborhoods across the country.

For those unfamiliar with the world of caregiving, comfort care is provided at the close of someone's life. It is intended to improve quality of life (if possible) relieve suffering, and honor any wishes of the ailing. Hospice is a specialized care that focuses on supporting you and your loved ones during an advanced illness. The emphasis is on comfort and quality of life, rather than finding a cure. Hospice care enables those who are ill to live each day to the fullest as comfortably and dignified as possible.

Heartland Home Health and Hospice provides care for the body, mind, and spirit. They encourage their patients to share personal thoughts, hopes, and concerns, so as to better meet their unique needs. Covered services may include:

• Comforting care, provided by an interdisciplinary team
• Pain and symptom management
• Psychosocial and spiritual support
• Medications
• Equipment and supplies
• Patient and family education
• Comforting treatments
• Therapies
• Bereavement services

When you or a loved one needs care, the team at Heartland Home Health and Hospice is ready to serve. Any day of the year, any time of the day, they can initiate hospice care. As mutual care providers, they work closely with your health care professionals to make sure specific protocols are followed closely. Pain and symptom management is the primary focus. 

Like many fields, there are myths that surround hospice services. Here are some that Heartland Home Health and Hospice proudly debunks:

• Just because you are receiving hospice does not mean you have to give up hope. Many patients and those caring for them say they wish hospice care had started sooner.
• Treatments that provide patients with comfort and relief can continue, uninterrupted, even after hospice care has started.
• Heartland Home Health and Hospice does not require that advance directive choices be made such as a “do not resuscitate” order (DNR) or living will to begin providing hospice care.
• Heartland Home Health and Hospice is fully accredited by the Accreditation Commission for Health Care (ACHC). We’ve chosen to follow their additional requirements in order to help advance the highest standards of community-based care.
• Hopsice care is not siloed. They work as mutual care providers. This means that they engage with your other health care professionals to make sure specific protocols are followed closely.
• Hospice care is 100% covered by Medicare and Medicaid.

The Indiana affiliate of Heartland Home Health & Hospice serves a 50 miles radius around the following cities: Terre Haute, Indianapolis, Marion, Fort Wayne, South Bend. Contact their team by by calling Jennifer Levy at (260) 341-8352 or (866) 421-6973.

Learn more about Heartland Home Health & Hospice at https://www.heartlandhospice.com/

Is Your Estate Plan SECURE? It’s Time to ACT!

 

 

 

 

 

 

 

 

Photograph by Drew Angerer/Getty Images

 

If you haven’t heard of the Secure Act, you may want to sit down, and don’t worry about stretching first, because you aren’t allowed to "stretch" anymore.

As of January 1, 2020, the Secure Act has drastically changed the way your Qualified Retirement Plans (think IRA and 401k) are treated, especially after you die.  For simplicity, I’ll refer to all such plans as IRAs in this little note.  And remember, every dollar in your IRA is subject to taxation when withdrawn.  Because of this change, us estate planning attorneys, financial advisers, and CPAs will also need to adapt many of the planning strategies we discuss with our clients.

The point of this blog isn’t to assess the Secure Act in detail. It's intended to simplify the big changes for you to then ponder. So don’t worry, you won’t find a boring legal analysis below.  

• Good-Bye “Stretch” IRA for non “Eligible Designated Beneficiaries” (EBDs): Before this change, basically any non-spouse beneficiary that inherited your IRA had to, at a minimum, take an annual “Required Minimum Distribution” (RMD) during that beneficiary’s life expectancy. In essence, it was possible for the beneficiary to only take the RMD each year, and the inherited IRA could continue to grow, or be stretched-out decades into the future. This made the IRS grumpy. They weren’t able to collect their taxes quickly enough—the stretch IRA essentially served as the proverbial brake pedal to paying those income taxes.

Now only your surviving spouse, a beneficiary no more than 10 years younger than you, a minor child (not grandchildren), and disabled or chronically ill individuals are the only EBDs.  They can still utilize the “stretch” provisions.  For non-EBDs, and minor children once they reach the age of majority, there’s a new rule...

• Hello, 10-Year Rule: Now, if the EDB exception doesn’t apply, (which will be more times than not), all inherited IRA funds must be completely withdrawn by the end of the 10^th year after the original plan holder’s death; and, RMDs are gone (Roth IRAs didn’t have RMDs, but are still subject to the 10 year rule). So, all of that IRA money you’ve been deferring paying income taxes on (potentially to pass on to children to help them financially for the rest of their lives) must be withdrawn in ten years. Essentially, the has IRS put their other proverbial foot on the inherited IRA income tax gas pedal.

To be clear, the new ten rule doesn’t change the existing rule that states if you don’t have someone named (or they’re no longer alive) as beneficiary on your IRA, then your IRA passes to your estate, and it all must be distributed within five years after death.

• Inherited IRAs and Trusts: Many people have chosen to utilize trusts in their estate plans, and often make their trust the beneficiary of IRAs for a variety of reasons.  With a properly drafted trust, there were no negative income tax consequences of passing an IRA to beneficiaries (remember, trusts reach the top tax bracket of 37% once it earns $12,950 of income, where those married filing jointly require $622,050 of income to reach the top bracket—a huge difference).

You can still name your trust as the IRAs beneficiary, as the reasons to do so may likely exist, but many trusts will need to be amended to prevent the IRSs gas pedal from flooring beneficiaries—once they see how much money their trust will owe the IRS.

Here’s the main purpose of this post—you need to Act!  Start by:

• ACT #1: Gather all of your IRA account(s) information, and confirm who the beneficiaries are for each account.

• ACT #2: Make sure you have designated beneficiaries, and note any IRA that names a trust as a beneficiary or your estate as beneficiary.

• ACT #3: Gather your trust (or will, if your will creates a trust for someone after your death) and note the beneficiaries listed in your estate planning document.  Also check to see if your beneficiary is receiving things (it’s theirs, no restriction), or in trust (usually this provides the beneficiary protection of their inheritance after you die).

• ACT #4: Consider, and make notes of, any circumstances you wish to protect your beneficiary’s inheritance against; like, divorce, poor financial decision making, addiction issues, and special needs or disabilities, etc.

• ACT #5: Discuss the notes you’ve made after reviewing your estate plan and IRA’s with your attorney so that they can identify if anything needs to be amended due to the change in the law.

Please Act! Doing this little exercise will help your attorney, financial adviser, and CPA create the most tax efficient estate plan. If you choose not to, the value of your estate could get wrecked by the IRS’ gas pedal.

You know, I saw a really funny cartoon the other day. A man was sitting at a desk with a couple in front of him. Behind him, a big sign on the wall said “THE  IRS.”  The couple looked at each other, and one said, “See honey, I told you it was all ‘THEIRS’.  It doesn’t have to be...

If you think the Secure Act may impact you, schedule a meeting with one of our attorneys to learn more.

 

 

 

Written by Kyle Allen, Attorney

The SECURE Act Signed Into Law for 2020

Congress has passed a bipartisan appropriations bill. In the contents of this spending bill is a piece of legislation known as the Setting Every Community Up for Retirement Enhancement Act (SECURE), the first significant change in retirement legislation since the Pension Protection Act in 2006. The President signed the Act into law on December 20, and its effective date is January 1, 2020.

The Impact of the SECURE Act

The impact of the SECURE Act to some retirees, near-retirees, and their future beneficiaries is profound, and it is imperative to schedule a review of your retirement, estate, and trust plans. Failure to act on the changes brought forward by the SECURE Act can create substantial tax burdens for some beneficiaries and even the possibility that they become locked out of their inheritance for a decade.

One of the most important provisions of the SECURE Act to understand is the removal of the stretch IRA required minimum distribution (stretch RMD). In essence, the removal will act as a tax revenue generator. This change means many Americans will face a tax increase as non-spouse beneficiaries must spread withdrawals over a maximum of ten years and not the lifetime of the account holder. The removal of the RMD for stretch IRAs is going to create significant problems for certain types of trusts, like the “see-through trust," that were written before the SECURE Act. Previously, a see-through trust allowed an individual, upon their death, to pass retirement assets of their IRAs via a trust to a chosen beneficiary. If the trust is not updated to match the current SECURE Act language, there could be restrictions in accessing funds to the heirs, which may cause massive tax liabilities down the line. 

Annuities are also affected by the SECURE Act as the legislation will ease restrictions to include them in consumers’ 401(k)s. While this is a positive for lifetime income, the bill also lessens and even removes some of the fiduciary requirements to vet insurance companies and their financial products before allowing them into your 401(k) plan. This change, coupled with a reduction in overall standards the SEC imposed earlier this year, creates an increased likelihood that consumers could experience negative consequences from poorly designed financial products and the possibility of insurance company failure.

How the SECURE Act Will Impact Your Retirement Plans

According to Forbes, there are eight significant ways the SECURE Act will impact your retirement plans. They include an increase in ability for small employer access to retirement plans, an increase in annuity options inside of retirement plans, an increase in required minimum distribution (RMD) ages, and the removal of age limits on IRA contributions. There is also a tax credit to encourage automatic enrollment into retirement plans through small employers, penalty-free distributions for childbirth or adoption, lifetime income disclosure for defined contribution plans for transparency, and the removal of stretch inherited IRA provisions.

It is imperative as an individual to be responsive to the changes this proposed new law will enact. Currently, estate attorneys, CPAs, and financial advisors are receiving additional training to understand the long-term tax implications of SECURE Act provisions. For those affluent retirees, Kiplinger advises there are five things you can do immediately to respond to the SECURE Act. The first is to delay your IRA distributions if possible, and continue to save but perhaps not in an IRA. Also, consider paying taxes BEFORE your children inherit your IRA. Talk to your financial planner, tax advisor, and revisit your existing estate planning documents to make sure the plans don't compromise any existing IRAs that will be passed on to your beneficiaries.

The overall implications of the SECURE Act to your retirement and your estate plan are numerous. Contact our central Indiana office by calling (317) 863-2030 in Fishers and (765) 569-1060 in Rockville to discuss how we can help make sure your retirement assets pass with as few tax consequences as possible. 

 

Be Aware of These Everyday Devices That Can Be Hacked

The internet of things (IoT) is responsible for many conveniences via embedded electronic devices, and many seniors are making use of these technologies. It is becoming increasingly common for everyday items like refrigerators, thermostats, and doorbells to be internet-connected making our homes and personal information subject to hacking. A hacker will subvert computer security for malicious purposes. Seniors who employ IoT devices for safety and convenience may be less wary of all the ways their devices can be compromised. If you are a senior or have a loved one who is, it is imperative to have them, or a trusted friend, update software from device manufacturers and routinely monitor their devices.  

A Smart TV provides many hacking opportunities. The problem can be an annoying prankster blasting the volume control, switching channels, or even ordering movies you did not select. Or the hacker can also compromise your security and safety as your Smart TV is a gateway to other internet-connected devices in your home. TV apps can be data mined for credit card payment information since many manufacturers reuse default passwords, and users neglect to change them. Even companies who sell Smart TVs are now post-purchase monetizing the Smart TV by harvesting your information via data collection and using it for advertising and direct sales of entertainment to the consumer.

Digital Thermostats are a great way to keep heating and cooling costs down. However, a hacker who takes control of your thermostat can crank up the heat or cooling until the owner pays a ransom to regain control of the device. An older person can experience health consequences due to extremes temperatures as well as the anxiety and fear it breeds. Baby monitors are often connected to your home's Wi-Fi network for the convenience of a mobile app to check the display at any time. Many homes use these monitors for seniors instead of small children. Typically, people do not change the default password on the monitor, meaning that it is visible to the network. A hacker can scan transmitting internet protocol or IP addresses (numerical labels assigned to every device that connects to a computer). Once they have your IP data, they can find the baby monitor and watch you or your loved one at any time. For better protection shop for baby monitors that are made to be invisible to scans. If you have a Samsung smart refrigerator, it can be hacked. The wiring in the fridge leaves the new owner’s Google login credentials out in the wild for a hacker to grab and then infiltrate your home's IoT devices.

Smart cameras have vulnerability issues allowing a hacker to remotely access audio and video feeds. Be sure to keep track of all of your IoT devices that are network connected. Actively seek out all software and firmware updates for maximum protection against hackers. Smart voice-activated speakers like Alexa, Google, Echo, and many more open up every conversation you have in your home to be monitored by a hacker. Without even being aware, you can divulge sensitive information like doctor appointments, luncheon dates, and upcoming trips. Even your bank account and credit card information can be compromised. If your home security system is connected to your voice-activated speaker, a hacker can turn it off and enter your home.

Even pacemakers are subject to hacking however improbable that might seem. Anyone with bad intentions toward you can remotely change the pace of your heartbeat, which can even result in your death. Implanted medical devices, in general, are now subject to more stringent controls that use code to secure data and instructions in these devices and monitor them in real-time. Talk with your medical professional to know that you are protected against medical hackers.

Default passwords need to change in order to protect your devices from hackers. Most internet-connected devices have simple default passwords, and a search run on the name brand of a device will often yield the manufacturer’s default password. When you change your password, make it very strong, and use unique passwords for each device. Out of convenience, many seniors will use the same password for everything. In this case, if a hacker gets into one device, they can be in all of them if you do not use different passwords.

Cell phones, home Wi-Fi routers, and even landline voicemail are susceptible to hacking. Inexpensive signal-proof cases are good to use for protection when you are out in public. It is possible for a hacker to clone your phone in seconds while standing next to you and they will get everything you store on your phone. Home Wi-Fi routers must be up to date on all software and firmware, and a unique, strong password can help protect you from hackers. Once a hacker gains access, all of your devices connected via the internet of things have been compromised as the router is the nerve center of your digital footprint. Many seniors still like to have a landline telephone and its associated voicemail. Passwords to access voicemail must be very secure, or a hacker can listen in to your conversations as well as delete potentially important messages.

All senior grandparents love pictures of their family to be proudly displayed. Picture frames that are digital and allow you to scroll through photos or change an art display with the swipe of a hand are vulnerable. If your frame becomes hacked, a thief can discern non-active times in your home by the frame's ambient light sensors and can plan a robbery while you are away. 

Garage door openers are also able to be hacked if you have a newer smart version device. A hacker can monitor garage door activity and identify times when you are not at home. It is very convenient for a burglar to avoid encountering people during a robbery. Be sure to update a manufacturer’s default password setting to something difficult to break, and a would-be robber will move to an easier target.

Cars and Self-driving cars can be hacked. It doesn't take a lot of equipment to break into and start a vehicle, even disabling the alarm system. Car thieves now employ sophisticated hacking technology, especially when they must bypass the electronic anti-theft systems. If a self-driving car is hacked, the attacker can take direct control over the throttle, brake, and steering while remaining anonymous as to their identity and location creating a very dangerous scenario.

Convenience comes at a cost to your privacy when using the internet of things. Taking the necessary steps to protect your devices from hackers is of paramount importance. Once secure procedures are in place, it is crucial to monitor for suspicious activity that can lead to robbery, electronic banking theft, and more. Taking control of your internet-enabled devices is essential to protect your home and your strategy for aging successfully. No one wants to be victimized by unwanted hackers. If you have questions or would like to talk about your legal needs, please don’t hesitate to contact our central Indiana office by calling (317) 863-2030 in Fishers and (765) 569-1060 in Rockville.

An Update on Federal Spousal Impoverishment Protections

Federal spousal impoverishment protections were set to lapse in March 2019. Two bills were proposed to deal with that issue. H.R. 1343 is still sitting in the House, but H.R. 3253 was enacted on August 6, 2019.

H.R. 1343, or the Protecting Married Seniors from Impoverishment Act, would have made certain impoverishment protections permanent. It was introduced on February 25^th and referred to the Subcommittee on Health the next day, but no further action has been taken on it.

However, H.R. 3253 has been enacted. This bill, also known as the Empowering Beneficiaries, Ensuring Access, and Strengthening Accountability Act of 2019, temporarily extends the applicability of Medicaid eligibility criteria that protect against spousal impoverishment for recipients of home and community-based services. The extension will run through 2024. The bill also expands the purview of state Medicaid fraud control units, reduces requirements regarding the average manufacturer price (AMP or blended AMP) for drug manufacturers under the Medicaid Drug Rebate Program, and increases funding for the Medicaid Improvement Fund.

The Centers for Medicare & Medicaid Services (CMS) released the federal guidelines for how much money the spouses of institutionalized Medicaid recipients may keep. The minimum “community spouse resource allowance” a state may set is $25,284. The spouse of a Medicaid recipient living in a nursing home (the community spouse, in other words) may keep as much as $126,420 without jeopardizing their spouse’s Medicaid eligibility, and perhaps even more if there is a hearing or court order. These numbers will increase in 2020.

We help seniors and their loved ones access Medicaid benefits for long term care when appropriate. If you have questions about Medicaid eligibility or about programs you may be eligible for, please contact our office by calling (317) 863-2030 in Fishers and (765) 569-1060 in Rockville.

Read more here:

https://www.congress.gov/bill/116th-congress/house-bill/1343/all-actions

https://www.govtrack.us/congress/bills/116/hr3253/summary

https://www.elderlawanswers.com/guidelines-used-to-protect-the-spouses-of-medicaid-applicants-in-2019-released-17003

Health & Financial Questions To Understand Before Turning 65

 

 

 

 

 

 

 

 

 

In the United States, turning 65 years of age is a milestone on many levels. Before this milestone birthday, there is a hefty checklist to review before you continue to age successfully. The most crucial thing on that to-do list before turning 65? In our humble opinion, it would be to review options and craft the best strategy for the well-being of your health and financial security.

Consider questions like:

1. Can you afford to retire?
2. Are you married?
3. Do you want to maintain a certain lifestyle?
4. Do you still have a mortgage?

Next, estimate your total annual spending. Include a cushion for periodic or unforeseen expenses (think home repairs or dental work). Total all of your potential retirement-income sources and understand the tax implications associated with their spending. Run through several scenarios where you change what year you claim social security benefits to see if you should defer collecting it to a later age. Be realistic and start adhering to a modest budget today.

Very few Americans can withdraw from personal savings and investments without risking running out of money too soon. As you start to review your retirement plan, find a qualified retirement planning expert that can help you with projections that are based on realistic assumptions.

Then you'll want to familiarize yourself with program variations of Medicare. If you are retiring, you will approach Medicare differently than if you are continuing to work and have healthcare available through your employer. If you will no longer have healthcare through an employer, explore a supplemental insurance policy like Medigap.

Health insurance becomes quite complicated and varies widely depending on your overall health and personal financial situation. The National Council on Aging (NCOA), in partnership with private companies Aon Retiree Health Exchange™ and Via Benefits™, provides a checklist and timeline that can usher you through the process of enrolling in Medicare. these options help assess how you will cover the cost of prescription medication too. If you have a lower income, you may qualify to enroll in Medicaid, which covers more expenses than Medicare. If you have already begun to take your social security benefits, then you will automatically be enrolled in Medicare. A packet entitled “Welcome to Medicare” will be sent to your address three months before turning 65. There are essential actions to take and deadlines associated with this packet, so read through the material carefully and be prepared to meet those deadlines.

As you approach the age of 65 many private insurance companies will lobby for your dollars. Should you decide to spend money on the supplemental insurance they offer, be sure you're using an insurance broker that can sell you policies from many different insurance companies (almost like a consortium). This gives you more options beyond a solo group that will only sell plans that associated with their company. A reputable insurance broker should not charge for helping you to assess your situation as they make commissions from the insurance company providing the policy to you. Check with the Better Business Bureau (BBB) online where you can enter the name of an insurance group or retirement counselor and find out how long they have been in business, their accreditation, BBB rating, customer reviews, and any complaints.

If you are age of 50 or older, you can contribute an extra $1,000 annually to your IRA and an additional $6,000 to a 401(k)s up until the age of 65, according to Investopedia. If you are still working, this is an excellent way to boost your retirement spending money. Before age 65, you should explore the option of a long-term care insurance policy, which helps to pay for any assisted living care needs you may require in the future. Long-term care policies can be expensive. If you do not enroll in a long-term care plan before the age of 65, the policies will become practically unaffordable.

Before turning 65, you should also give thought to a will or trust, power of attorney, healthcare proxy, etc. Take heart, turning 65 is far from a death sentence. Many Americans are living long and active lives well beyond the age of 65; however, meeting with an elder law attorney can save you and your heirs plenty of money and heartache. Do not wait until an adverse medical event forces your family or loved one to act on your behalf financially or medically. Decisions made under duress do not provide the best outcomes.

Considering a dementia directive is wise as well. Projections for the aging U.S. population indicate an ever-increasing number of seniors who have Alzheimer's and other forms of dementia. Your elder law attorney can guide you through your options. Some states even have working templates for dementia directives. As you age, you can review your legal strategies from time to time and make adjustments as you deem necessary. It isn't easy to discuss your end of life scenario, but once you have had the discussions and put proper legal documents into place, you can move forward with a sense of relief. It is freeing to make decisions and act on your future behalf, knowing you can always revisit your choices.

Now onto the fun stuff; get excited about the senior discount! While it is true that there are discounts available as early asage 55 and 62, nothing beats the senior discount at age 65. You can check off that bucket list of yours with deals on restaurant meals and travel excursions, clubs, retail stores, hotels, cinemas, smartphone plans, AARP membership discounts, and more. If you do not see a senior discount posted, by all means, ask.

Beyond Medicare eligibility, you can get a one-time free physical exam if you have Medicare Part B insurance coverage. Gyms and community programs offer discounted or free physical fitness programs so that you can keep yourself moving and as healthy as possible. If you have Medicare, check out your eligibility for SilverSneakers for an age 65+ fitness program. Your local senior center can keep you socially active and connected to people your age. Making friends and enjoying the simple act of conversation is known to have many benefits for your cognition and staves off isolation and depression issues.

If you retire from your job at age 65, you can finally begin to collect on your pension plan or 401(k). That in itself is worth a celebration after many decades of hard work. You might also opt to collect your social security benefits, however it is generally advised you wait until you reach full retirement age.

Homestead Benefits and property tax exemptions are a considerable benefit for those who already own or plan to own a home or property. Benefits vary by state, so you will need to see what you can qualify for where you live. Your local comptrollers' office can provide information about offers regarding homestead benefits. For property tax exemptions, you must contact your local comptroller or tax assessor's office for exemption information.

There is plenty to discover, learn, and know about how to proceed in life at age 65 and beyond. With Social Security benefit determinations, health insurance policies, and legal documents in order, you can begin to enjoy what lies ahead. Contact our Fishers, Ind., office by calling (317) 863-2030 for assistance with your planning needs along the way.

Gen Xers Retirement Planning and Life Expectancy

As Gen Xers enter into their 40s and 50s, it is time for them to become active in the creation and execution of their retirement planning. There are many things to consider, including finances, investments, insurance policies, legal documents, living arrangements, and healthcare. It is advisable to make a detailed checklist within these categories and take action on each item. Meeting with an attorney can help you establish overall goals for your retirement and legacy planning while ensuring the steps you take will lead you to retirement success.

With regards to longevity, things may not be what they seem in the United States. While the world is experiencing an increase in life expectancy, Americans have seen a life expectancy decline for three years in a row. The Center for Disease Control and Prevention (CDC) considers this a worrying trend. Assessing life expectancy based on these CDC numbers using their traditional approach is just one part of the equation for Gen X retirement planning because the statistic is derived from birth years while retirement years are calculated from age 65 and beyond. Yes, some Americans are living until the age of 100, and fewer are having heart attacks in their 50s because of prescription medications; however, according to the Smithsonian Magazine, there is "no large extension of adult lifespan in old age." Making a reasonable estimation of your life expectancy is crucial as it affects planning for how long retirement will likely be and the amount of money needed to cover associated expenses.

MDVIP Health and Longevity Survey reveal that more than half of Gen Xers want to live past 90 years of age, with some wanting to make it to 100, and yet, nearly half have not had a comprehensive medical exam in the past five years. One-third of Generation X avoids going to the doctor at all out of fear of finding something medically wrong. Two-thirds admit they could be doing better when it comes to regular exercise, eating healthy, maintaining a healthy weight, and managing stress levels. There is good news, however. Generation Xers have a reasonable amount of lifespan left to identify changes that need to be made and implement them. Barring an unforeseen accident or illness, time is still on the Gen Xer’s side to make their retirement a success story.

The face of retirement has changed. The vision for most retirees is a full life bustling with activity and interpersonal relationships. Semi-retired is how many prefer to see their goal. There are many excellent reasons to keep working beyond age 65. Continuing to earn an income from work is great for health reasons and economic reasons. Generation X will further test the solvency of social security benefits after most of the baby boomer generation will have stressed the federal program to its limits. Staying productive and useful are key elements to financial well being, happiness, and long-term health. Entrepreneurial pursuits and consulting are more accessible than ever with the advent of the World Wide Web online community. Try pursuing or inventing a new career, perhaps something you have always dreamed about doing.

Joint life expectancy, whether married or not, is an important consideration when planning for and working toward retirement goals. According to the Vanguard Group, a heterosexual Gen X couple where both partners are age 50, the female partner has a 50 percent chance of reaching 85 years of age while her male counterpart only a 38 percent chance of reaching that same age. Since the couple is most likely to pass away at different times, factoring in the longevity of the surviving partner is crucial to planning. When extending longevity retirement scenarios understand that what is discretionary spending for fun in your 70s and 80s may shift to cover increasingly extensive medical aid and expenses in your 90^th decade and possibly beyond. A financial planner can help you to create scenarios that will accommodate repurposing of monies.

We welcome the opportunity to work with you on your retirement goals to help create a legal plan that supports those goals.  Contact our central Indiana office by calling (317) 863-2030 in Fishers and (765) 569-1060 in Rockville or click here to send us a message.

Bacteria: The Hidden Cause of Many Diseases

Health experts have been advising people for years about unhealthy habits being the cause of "lifestyle" diseases that are increasing across the US. These lifestyle diseases become more common with age and include heart disease, type 2 diabetes, some cancers, and Alzheimer's disease. Around the globe, these diseases account for 70 percent of all deaths. New Scientist magazine is reporting evidence suggesting bacteria are to blame for the diseases and that this finding will herald the coming of a revolution in medicine.

However, don’t stop healthy habits just yet; findings in disease after disease indicate that bacteria are covertly involved which complicates the problem. Bacteria will invade bodily organs and then co-opt the immune system in a sort of parasitic relationship as the bacteria boosts their survival while making the human body break down. In theory, if the bacteria microbes can be stopped, there is a potential to defeat disease conditions like heart attacks or Alzheimer's.

How can such an all-encompassing and seemingly simple underlying cause be overlooked for decades? Bacteria have eluded scientists because they work very slowly. Like a terrorist sleeper cell, the bacteria can hide or lay dormant for long periods inside of cells, and that makes them difficult to grow as a culture. DNA sequencing informs scientists and researchers that bacteria are in places they were never known or supposed to be and shaping the body’s inflammation responses.

The medical community is up-ended by this startling paradigm shift in disease causation. The information is so contrary to the current medical understanding that some scientists and researchers are only cautiously optimistic. Many scientists have spent years looking for answers to the root cause of diseases and are left frustrated by their inability to identify the reasons.

The worst offenders in the link between bacteria and disease are gum diseases.  So it is bacteria that cause gum disease that is responsible for the most widespread disease of aging. Maurizio Tonetti of the University of Hong Kong calls gum disease “the most prevalent disease of mankind." Gum disease is prevalent in 60 percent of Americans aged 65 or more. Germ theory finds the bacterial culprit known as Porphyromonas gingivalis  (P. gingivalis) is linked to the broadest array of disease conditions.

Gum disease is releasing bacterial P. gingivalis into your bloodstream and promoting inflammation long before an infected tooth falls out. Americans 30 and older have a 43 percent rate of some form of gum disease, and many find dental insurance an added expense they didn't think worth the price. What a price it turns out to be. Since bacteria cause diseases and bacteria are prevalent in the majority of Americans, what can be done to manage the role of these bacteria within the body's immune system?

Some companies are developing drugs that will block specific inflammatory signals or responses to slow disease progression. Even if the goal to prevent a limited number of signals or responses is successful, it is unclear what tampering with the human immune system can unleash. While being a relatively simple identification with the advent of DNA sequencing, bacteria still manages to host itself in the body's vastly complex immune system. This situation makes for a complicated fix.

Once P. gingivalis enters the bloodstream, it changes its surface protein. This change allows the bacteria to cloak itself inside the immune system's white blood cells. Even within the cells themselves, they enter into its lining arteries. Here it can remain dormant and primarily undetected until it wakes to invade a new cell. Because bacteria are so hidden, antibiotics will not identify it to kill it, and immune defenses do not respond to it. There is much to consider from research and experimental perspectives.

Understanding the underlying cause of many diseases is a breakthrough, but an application for preventing disease based on this information is still in the developing stages. While the future does look brighter, it is always a good idea to live an overall healthy lifestyle.  

If you have questions or would like to schedule a time to discuss your planning needs, please don't hesitate to contact our office by calling (317) 863-2030 in Fishers and (765) 569-1060 in Rockville.

Topics to Consider when Caring for an Aging Parent

It is essential to bring up a parent's aging expectations and set goals together even though initial discussions may be uncomfortable. Often, an exploration into a parent’s future thoughts about health, finances, and residential plans can make the difference between reacting to a crisis or following an established plan that can bring both the parent and their children peace of mind. The sooner an identified caregiver begins a dialogue, the better the outcome for all involved.

It is common for an older parent to try and shield loved ones from some of their harsh realities - whether financial or health-related - because they are reluctant to accept help, embarrassed by their finances and don't want to be a burden, or are hiding some critical health information. Even in the best of health circumstances an older parent’s ability to remain independent and manage their life can be challenging. Family caregivers are essential to the experience of aging in America and while individual care needs vary there are some general topics to address when helping an aging parent.

Safety

Safety issues are paramount. If there are assets and retirement plans in place, do not allow an aging parent to become financially vulnerable. In the most recent report released by the Department of Justice (DOJ) more than 2 million elderly Americans were defrauded out of more than 750 million dollars in one year. Get educated and learn systems that can protect parental assets. Physical safety must also be addressed to prevent accidental falls in the home. Technology can be adapted into the home to have environment lighting controls and other comforts that can keep a parent safer. Driving is also a topic that needs to be discussed. At what point is it best to remove a parent from behind the wheel to avoid unintended accidents that can be costly both financially and health-wise.

Activities of Daily Living

Activities of Daily Living (ADLs) and Instrumental Activities of Daily Living (IADLs) are the basic foundation of day to day functioning. IADLs include chores such as managing finances, transportation, home maintenance, shopping, and meal preparation. ADLs include eating, bathing, getting dressed, toileting, transferring and continence. The level of need in the described activities generally determines the sorts of care and housing arrangements a parent, caregiver, and family must consider.

Health and Medical

Health and medical issues are pervasive as a parent ages. Many elder parents suffer from chronic conditions requiring medications, management, and monitoring. A caregiver may notice new health concerns that will need attention and routine visits to physicians to diagnose any new medical conditions. Dementia and other serious chronic illnesses can cause a parent to lose their ability to manage their health decisions or oversee their medical care. A medical power of attorney becomes necessary in the event a parent is no longer able to make sound decisions. All of these legal and financial issues that address health directives must be documented with the necessary legal paperwork. Legal designations such as a will, trust, and power of attorney are also essential to have in place. When the time becomes necessary, this documentation affords a designated power of attorney, and medical power of attorney the right to act on a parent’s behalf without the time-consuming need to address the courts for permission. Very often a caregiver is assigned these legal designations. Planning for a parent’s inevitable future decline, emergencies, and end of life care goes a long way to helping reduce stress, hassles and sometimes expense.

Housing

Housing issues are at the forefront of successful aging. Is a parent able to age in place, particularly with the aid of technologies that simplify their day to day living? If they are not, what sort of environment is best suited to their current needs? Do they need to move in with a family member or might they require assisted living? If so, is that financially viable? How does housing address the parent’s quality of life? Beyond the basic needs, a caregiver and family should want a parent to thrive, not just survive. It is essential to learn what matters most to the parent and what they would be willing to compromise on if the need arises. A parent’s desire for social connections, autonomy, dignity, and purpose must be considered to ensure a positive quality of life.

Family Dynamics

Finally, the management of family dynamics and relationships often brings many challenges and painful emotions to process. A caregiver deals with relationship stresses that can include physical exhaustion, financial depletion, and emotional burnout. A caregiver is only as useful to a parent as they are to themselves. While setting boundaries can be difficult, establishing frameworks that designate acceptable norms are healthy for all involved. A caregiver who puts their well being in jeopardy will also affect their ability to care for a parent. Some strategies for wellness in a caregiver’s life include: joining a support group, asking family members for help, learning to say no when needs outside established boundaries arise, and allotting time for themselves.

There is much to consider. Planning can become complicated as human emotions and relationships are involved when setting forth caregiving expectations and parent aging plans. We help families navigate the aging process and plan for how to find and access appropriate care. Contact our central Indiana office by calling (317) 863-2030 in Fishers and (765) 569-1060 in Rockville and schedule an appointment to discuss how we can help you with your planning.

Should You Rethink Your Retirement Portfolio?

Kiplinger.com is suggesting it is time to rethink your financial retirement portfolio. You may have built up a significant nest egg in a 401(k) plan, but it does come with serious baggage during your golden years. It is impossible to argue against the early stages of a 401(k) when employers match your contribution to the plan. You can take advantage of the tax breaks because contribution money comes out of your paycheck before calculating taxes and that money compounds every year. When you retire, however, the tax impact of a 401(k), 403(b), or traditional IRA can become significant. 

You have probably been told at retirement time that you will be in a lower tax bracket however; it is more likely that the opposite will be true. Your tax rate is expected to increase. If you maintain the same standard of living, it will require the same amount of income, which translates to the same tax rate. Additionally, your children will be grown, the house paid off, and those substantial tax deductions are gone which may push you into a higher tax bracket. You will pay taxes on withdrawals from your contribution plan(s) annually irrespective of if the money comes from dividends, capital gains, or your contributions. That money will be taxed at your income tax rate at the time of withdrawal. Currently, the top marginal income tax rate is 37 percent, and taking into account the US deficit that tax rate could increase in time. 

Double taxation can eat away at your retirement savings and is often the norm because you can pay more taxes on your Social Security benefits. Unless you have a Roth IRA, distributions from your retirement plans count against your tax situation when calculating what percentage of your Social Security is subject to tax. The result is you are paying more taxes on your retirement plan distributions and Social Security income. You are also paying more taxes from capital gains, dividends, and interest from your investments.

Required minimum distributions (RMDs) can be frustrating and expensive if you neglect to take them. You have to withdraw funds from your retirement fund accounts when the IRS deems it necessary. Even if you want to leave the money in the account, the IRS will schedule your withdrawals when you reach 70 ½ years old. There are stiff penalties for not taking out the required minimum distribution. You may pay as high as an additional 50 percent tax.

If you are married a 401(k) or IRA is the worst account to leave to your surviving spouse. No one wants to die without leaving their spouse financially secure, but these two financial vehicles are fully taxable accounts. Upon your passing, your spouse is about to change tax filing status from married filing jointly to single. That takes your spouse's tax obligation from the lowest to the highest bracket. Probably not exactly what you had in mind.

Both your 401(k) and IRA plans are subject to tax law changes. Every time Congress convenes a session, there is the possibility that increases in taxes on your retirement plans can occur. It is highly unlikely that your taxes won't increase. The US debt continues to grow at an alarming rate. The US government will tax its citizens more than ever to gain some level of financial control. Privatize the gains, socialize the losses is the federal government’s rule of thumb, particularly when considering how massive the US debt is.

Get together with a tax planner to identify ways to move your retirement funds into better financial retirement vehicles. Sometimes conversion can cost a bit of money upfront, but in the long run, you will be far better off with regards to your retirement tax obligations.

We can assist with all of your long term planning needs.  Contact our office by calling (317) 863-2030 in Fishers and (765) 569-1060 in Rockville.