Kansas and Missouri Estate Planning

What Exactly is a "Shared Living Arrangement"?

Roommates may be an option beyond college.

The "cost of living" can be expensive for anyone.

Whether you are young and paying off college debt or older adding health care costs, you may be looking for ways to save money.

According to a recent The Mercury article titled “Do shared living arrangements make sense?,” shared living arrangements may be an viable cost-saving option.

Some immediate benefits include sharing responsibility for mortgages, taxes, and utilities.

Throughout history, generations of families have lived together.

When Gretchen and I lived in Germany, this was the norm among our neighbors.

If you need to save on expenses, shared living space can be a good choice.

Do not commit blindly.

Discuss household expectations, financial issues, and estate planning needs.

Not every family will enter into the same arrangement.

Some parents may choose to buy a home with their adult children.

Often this is easier and more cost effective than retrofitting a current home to fit the needs of an aging parent.

Be careful when it comes to "titling" property, too.

Work with an experienced estate planning attorney to determine what is best given the laws in your state.

For other families, it is simpler to have an aging parent simply move in with an adult child.

If you do this, make sure to have written agreement on the parent helping with monthly expenses.

You should also include payment for any alterations made to the home for the aging parent.

Having these in writing will be helpful should the parent need to apply for Medicaid.

A third option is for an adult child to move in with the aging parent.

An adult child can buy into the home as a joint tenant with right of survivorship.

Work with an experienced elder law attorney to determine what options are best for your circumstances, especially when it comes to Medicaid, real estate ownership, and estate planning issues.

Reference: The Mercury (August 28, 2019) “Do shared living arrangements make sense?”

Feeling "Sandwiched" Children and Aging Parents?

You do not have to care for others alone.

You have aging parents.

You have children of your own.

You are also nearing retirement.

You feel pressure in all directions.

According to a recent The Motley Fool article titled “How to Help Your Parents Retire Without Derailing Your Own Retirement,” you are not alone.

Nearly 16 percent of Americans are currently providing care for an aging relative.

This number will continue to rise as the population ages.

Neglecting your own saving for retirement, does not do you (or anyone you love) any favors.

What can you do to protect your future, while also caring for your children and parents?

Look into government assistance.

The government has many programs for citizens at different life stages.

Research whether your loved ones might qualify for help with food, utilities, housing, or healthcare.

For example, there may be the option of Supplemental Social Security Income for those over age 65.

What does this do?

In the year 2019, this provides up to $771 per month if your parent is single or $1,157 for a qualifying couple.

Cut costs.

You should have a budget.

Your parents should also have a budget.

Keeping track of money will help remove unnecessary expenditures.

It will also help you understand what steps need to be taken to cover costs.

Have a sale.

Whether you need to simply downsize or have valuable antiques, selling possessions can help.

Use the money to take care of expenses.

Create a plan.

You and your parents will continue to age.

You cannot neglect your own future needs.

Discuss future needs with your family .

Be realistic about the cost of your parents care and the care you may need in the future.

If you have siblings, work together now to better care for your parents later.

One sibling should not bear the responsibly alone.

Working with an experienced financial advisor and estate planning attorney can help you meet the needs and demands of aging.

Reference: The Motley Fool (August 25, 2019) “How to Help Your Parents Retire Without Derailing Your Own Retirement”

How are Baby Boomers Preparing for Long-Term Caregiving?

Caregiving can be both rewarding and costly.

Are you a Baby Boomer?

Do you have aging parents?

As people age, long-term care becomes a reality.

In fact, most over age 70 will require long-term care at some point.

Many Baby Boomers want to provide this help for their aging loved ones.

According to a recent Think Advisor article titled “Long-Term Caregiving Realities Hit Home for Boomers,” serving as a caregiver may require you to make several sacrifices.

How so?

You may need to cut your spending, travel less frequently, move homes, work fewer hours, or even quit your job.

Many who help their parents also need to come to terms with their own future needs.

As a result, they tend to have the conversations about their wishes for care and how to pay for it.

The problem?

Providing care for a loved ones often involves caregivers dipping into their own retirement savings, let alone helping children who may still be in college.

Consequently, those who provide care have a better grasp on the options available to provide for long-term care, to include the insurance options.

As Baby Boomers age, they should understand and come to grips with the fact that their own children may not be viable option for caregiving.

Why?

Older Americans are projected to vastly outnumber younger Americans.

If you have more female family members, your chances of having a loved one help with care may be higher.

The reason?

Most caregivers are women.

As you help your parents and plan for your own future, you should be mindful of your estate planning.

Making these decisions and having these important conversations sooner rather than later benefits everyone involved.

Reference: Think Advisor (August 8, 2019) “Long-Term Caregiving Realities Hit Home for Boomers”

Aging Parents: How do I Have the "Money Talk"?

Talking finances with your parents can protect all of you.

Money.

We all need it to live in society.

Nevertheless, we do not always like talking about it.

Having these conversations with aging parents can be even more uncomfortable.

Kinda like the "birds and the bees" conversation when you where a teenager.

According to a recent Forbes article titled “What You Don’t Know About Your Parents’ Finances Could Ruin Yours,” it is important to have these conversations.

Why?

As your parents age, so do their bodies.

Their minds may not be as sharp.

They may need help with their finances.

They may need you.

Failing to discuss finances with them early on could create an unnecessary financial burden for them and for you.

Medicare does not cover long-term care costs for home help, assisted-living, or nursing home care.

This care can be expensive—exceeding $8,000 per month.

Only 5 percent of Americans ages 55 to 60 have long-term care insurance.

Only 11 percent of those 65 and older have long-term care insurance.

Without insurance, you may become the only option for paying for or providing care.

This will cost you in money as well as in income from lost time at work.

It is important for you to have this discussion so you can either help them prepare financially or help create a plan with your siblings to ensure everyone is prepared for potential financial burdens.

While you are discussing finances, talk with your parents about their estate planning.

Be sure they have an up-to-date last will, general durable power of attorney for financial matters, and advance health care directives.

Knowing your parents have a plan in place and the nature of the plan will give you and your loved ones peace of mind.

Final thought.

Be good to your parents.

Not only is it meet and right so to do, but your children are watching and learning from your example.

Reference: Forbes (July 17, 2019) “What You Don’t Know About Your Parents’ Finances Could Ruin Yours”

Why do Senior Parents Need Incapacity Planning?

Aging brings with it a higher likelihood of incapacity.

As we age, our bodies follow suit.

The brain is a common casualty.

In fact, about a third of seniors die either with dementia or Alzheimer’s.

According to a recent Press Herald article titled “Planning for Incapacity: Advance Healthcare Directive and Durable Power of Attorney,” these figures make incapacity planning essential.

What can you do?

Get an advance health care directive.

If dementia or Alzheimer’s is in your future, a time may come when you can no longer make your own healthcare decisions.

Consider carefully who you would like to make these decisions on your behalf.

Work with an experienced estate planning attorney to ensure your directives will be recognized.

Set up a general durable power of attorney.

The general durable power of attorney functions much like your healthcare directive.

It is kind of the "kissing cousin" to the healthcare directive, but for financial rather than medical matters.

After all, bills and taxes will need to be paid and accounts accessed even if you cannot do it yourself.

Do not wait.

There documents are not only for those who are old.

Really, any adult should have them in place.

The odds you will need them increase as you age, but you cannot risk inaction.

To sign these aforementioned documents, you will need to demonstrate mental capacity.

By the time you need a healthcare directive or power of attorney it may be too late.

Your loved ones could seek to obtain guardianship (personal and healthcare authority) and conservatorship (financial authority) over an incapacitated you through the probate court, but this can be costly and put undue stress on families.

It also means you have no say regarding who will handle your affairs.

The court could appoint someone who you know to be untrustworthy.

Taking steps now will bring peace of mind knowing that your affairs are in order.

Reference: Press Herald (May 20, 2019) “Planning for Incapacity: Advance Healthcare Directive and Durable Power of Attorney.”

How can I Remain at Home Through Retirement?

There is no place like home.

Any good Kansan certainly knows there is no place like home.

Home is special.

It is comfortable, familiar, and calming.

If you want to stay at home throughout your entire retirement, you are not alone.

No one would rather be in a nursing home.

However, according to a recent Washington Post article titled “Aging in place helps you to avoid a retirement community or nursing home,” avoiding placement in a nursing home requires careful planning.

Not all of our homes are designed for accessibility.

If your home is not, you should remodel or retrofit.

What should you consider?

You will want a bedroom on the first floor, wider doorways, grab bars for the shower, and improved lighting.

The design of your upgrades should be accommodate all ages and abilities.

Contractors who are Certified Aging in Place Specialists would be best.

What if you cannot afford to remodel?

Simply installing grab bars, adjusting lighting, or securing rugs to the floor can go a long way.

When it comes to food, you can take advantage of delivery services or meal prep companies, if you cannot make it to the store.

You should also take charge of your health, finances, and estate planning.

Being proactive with your finances, insurance, and legal documentation can help you remain at home for many years to come.

An experienced estate planning or elder law attorney can help you cover all of the bases.

Reference: Washington Post (July 1, 2019) “Aging in place helps you to avoid a retirement community or nursing home”

How do I Choose the Right Hospice?

Hospice is a wonderful service for those who are terminal.

Perhaps you have heard of hospice.

If you have had a loved one with a terminal illness, you likely have had experienced with hospice.

Hospice often gets confused with palliative care.

According to a recent AARP article titled “How to Find a Quality Hospice,” they are quite different.

The purpose of palliative care is also to empower patients and relieve suffering.

What makes them distinct?

Palliative care is an option for anyone with a serious illness.

Hospice requires a terminal diagnosis.

Hospice is usually provided where the patient lives.

The hospice team will frequently visit the home or long-term care facility of the patient.

What is the goal of hospice?

Hospice does not work to restore health, but to help the family and the patient through the difficulties associated with end-of-life realities.

This means the relationship between the hospice team and the family is of utmost importance.

How do you find a hospice team for your loved one?

Start by doing research.

Interview different providers and evaluate what they provide in light of your needs.

Bring questions to the interview and have a clear idea of the type and quality of care you desire for your loved one.

The connection and care from the hospice team is important.

What questions should you ask?

• Would the medical director come to care for complex symptoms?
• What are after hour policies?
• Does the care provided meet the level required by the Medicare hospice benefit?
• Is the facility accredited?
• How are staff certified?
• Does the facility utilize volunteers?
• Do not be afraid to ask questions.

It is important to pick a hospice that fits the needs of your loved one.

While there are many fine hospice providers in the Greater Kansas City area, I have been a volunteer attorney for Kansas City Hospice & Palliative Care since 1997.

I can personally attest to the professionalism and compassion of the good folks who work there.

Reference: AARP (June 27, 2019) “How to Find a Quality Hospice”

How do I Avoid Social Security Scams?

Beware of scammers.

There are plenty of dishonest people in the world.

They take advantage of others for their own sordid gain (I have been looking for an opportunity to use "sordid" in a blog post).

Anyone could be a target, but the elderly are especially vulnerable.

According to a recent The Sentinel Source article titled “How to protect yourself from the Social Security imposter scam,” some very sordid popular scams involve Social Security.

In fact, more than 76,000 individuals have reported such schemes to the Federal Trade Commission.

On average victims lost $1,500.

Be alert.

Scams can come in many forms.

One such scam involves a phone call.

The caller will say your Social Security number has been suspended and action must be taken.

It could be a robot or a person on the other end.

Typically, it will instruct the victim to speak with a representative.

Another variation involves Social Security reaching out via phone about increasing benefits for the victim.

These are scams.

On preys on fear and the other on greed.

Do not provide personal or account information.

If you do, then expect to find your bank accounts depleted or your identity stolen.

Yikes!

How can you protect yourself?

Do not trust callers.

Caller ID can be faked.

Do not answer phone calls from Social Security.

Instead, you should call the bona fide Social Security number at 800-722-1213.

If the caller says your Social Security number has been suspended and requires payment to fix it, this is a scam.

The Social Security Administration will never do this.

Do not ever give out personal information such as bank account and Social Security numbers to anyone.

Period.

What if you have done so?

Call Social Security at the above number to find out what you can do to help protect your identity and your credit.

Knowing information about you does not make a call legitimate.

Much can be found out about you elsewhere.

It is very very difficult these days to hide from the internet.

Also, no legitimate government agency will ever require payment in gift cards.

This is a red flag.

What happens if it is too late?

You have fallen victim to a scam.

Do not be embarrassed.

Reach out to family and friends.

Get help.

Let others know so your loved ones and friends do not become victims as well.

Remember, people are not always trustworthy.

Be cautious.

Reference: The Sentinel Source (June 16, 2019) “How to protect yourself from the Social Security imposter scam”

What is "Predatory" Marriage?

Beware of predatory marriages.

Motives for marriage are not always pure.

We like to believe in love.

The reality?

Some people marry for money.

According to a recent New York Law Journal article titled “Predatory Marriages and the Elderly: A Legislative Solution,” many gold diggers target the elderly.

At high risk are mentally incapacitated seniors.

Yikes!

Does this sounds familiar regarding a senior loved on in your life?

If yes, then it could be a sign of elder abuse.

What should you do?

If your loved one seems to be in danger of becoming a victim of a predatory marriage, talk to him immediately.

Having an estate plan in place can be also prove helpful.

Why?

An estate plan specifically excluding the identified predator may make the future marriage less appealing, especially if there is a premarital agreement.

What can you do if the loved one is already married and has died?

There may be little you can do.

You can possibly challenge the marriage as being made while the senior lacked capacity to enter into the contract.

This is not a guaranteed solution, and the burden of proof belongs to you.

The best way to protect your senior loved ones is to be ever vigilant.

Prevention is far more effective than damage control.

Reference: New York Law Journal (May 16, 2019) “Predatory Marriages and the Elderly: A Legislative Solution”

How do I Help My Parents with Estate Planning?

Your parents do not have to navigate estate planning alone.

You love your parents.

Selfishly, you would also prefer to not sort through a mess after they have passed.

Nevertheless, the last thing you want to do is overwhelm with the need to get their affairs in order.

Caught between these competing realities, is there anything you can do to help?

Yes, according to a recent The Monterey Herald article titled “Financial planning: Making sure Mom is taken care of.”

How?

First, check with your parents to see if they already have their estate planning documents in place.

Ask if they have a last will and testament, maybe a revocable living trust, a general durable power of attorney, and certainly an advance health care directive.

If yes, ask whether their legal documents were prepared by an experienced estate planning attorney or downloaded on the cheap from the internet.

An experienced estate planning attorney will help makes sure the legal documents satisfy the relevant laws, let alone the goals and wishes of your parents.

The internet is, well, the internet.

For example, how thoughtfully an advance health care directive is prepared will impact when and how much authority is given to the agent, as well as any guidance regarding important treatment decisions.

If your parents have only a last will and testament to plan their complex estate, you may recommend that they ask their estate planning attorney whether a living trust may be more appropriate.

Why might this be helpful?

A living trust can help keep assets out of probate (like their out-of-state real estate holdings), allowing for a speedier and more private distribution.

If your folks have assets with beneficiary designations, it is important to keep the designations updated.

Definitely check IRA accounts, 401(k) accounts, and life insurance policies.

Discourage your parents from adding a financially unstable sibling as a joint owner on anything, especially if she is or will be subject to creditors, marital strife, or legal problems.

Bad idea.

The assets of your parents could be put at risk from these issues orbiting your sibling.

These are but a few examples of ways you may assist your parents with their estate planning.

While you are at it, one of the best ways to encourage them is to share your own estate plan as an example.

Reference: Monterey Herald (March 20, 2019) “Financial planning: Making sure Mom is taken care of”