Idaho Estate Planning

Idaho Estate Planning Attorney, Mark Wight - You Tube Star!

Regular readers of our blog have probably noticed the addition of videos to some of our articles. We are excited to have these educational and promotional videos available for the public. We invite you to visit our You Tube Channel, browse the videos and let us know what you think. If you know someone who might benefit from watching one of our videos be sure to let them know about this great resource.

 

Treasure Valley Moms Know Best - Have "The Talk" With Her

Oh the dreaded “talk.” Where do you start? Who should you approach first, Mom or Dad? Experts suggest starting the money and finances “talk” with Mom.

Fidelity Investments specifically suggests that moms are the best source of open dialogue, even when it comes to the “money talk.” In fact, MarketWatch recently considered this in an article titled “In family-money talks, start with mom.”

A summary of the numbers from that article:

In the survey of 975 parents and 152 adult children, 64% of mothers said it was “not at all difficult” to start a conversation with an adult child about their finances; only 54% of fathers felt the same way. In addition, 79% of women, versus 69% of men, reported having had “comprehensive discussions” with their adult children about estate planning or wills.  The same was true of 66% of women vs. 56% of men about health and elder-care topics and 70% of women vs. 55% of men about running out of money in retirement.

Although there are many reasons why moms might be the best to approach, most of them are mere conjecture. More important, however, is the reality that senior parents really do not enjoy talking about their finances. That is understandable.

All that noted, “the talk” needs to be had, sooner rather than later. At Idaho Estate Planning, we can help. We know how to help your family get things moving forward. Call us now to schedule a consultation. Remember, good planning is no accident.

Bookkeeping Critical For Idahoans Caring For Parents

If you find yourself taking on the responsibility of a caretaker to your elderly parents, are you documenting your efforts? If you are giving time and money for the care of loved ones and would like to take tax deductions for your efforts, you ought to make sure you brush up on your bookkeeping skills. Otherwise, when it comes to tax time, you may be out of luck (and money).

The case of Estate of Olivo v. Commissioner is most instructive.

Forbes examined the Olivo case in an article titled “Mother's Day? Son Claims $1.2M Tax Write-Off For Helping Mom.” From the title of the article, it is clear that the son may have been a bit generous in his claim. To make matters even more interesting, the son was a tax attorney.

Background: Anthony Olivo was the son/tax attorney. He took nearly ten years away from his law practice to care for his parents. Accordingly, Anthony lost his law practice income. However, he did collect fees from his parents for managing their estates. When Anthony’s mother died, he sought to deduct $44,200 in administrator’s fees, $55,000 in accountant’s and attorney’s fees, and a whopping $1,240,000 for a near-decade’s worth of lost wages (he did manage his own firm, after all).

The IRS raised an eyebrow, and then raised it further when they took a look at his documentation of all of these fees and amounts. Problem: there was no contract, no invoice, and no evidence. Not good.

Even when Anthony was handling the estate and filing the tax return he didn’t keep track of his time and just estimated. Also, not good.

In reality, not everything claimed may have been deductible. Nevertheless, the lack of recordkeeping killed any chance for success.

If you and your loved ones are entering a period of caregiving, then a little forethought and planning can go a long way. In the end, a little recordkeeping can be the deciding factor in making your claim. 

For more information on this and other Elder Law issues, contact Idaho Estate Planning and schedule a consultation. If you are caring for a veteran you need to investigate the VA Pension Benefit as well. Remember, good planning is no accident.

 

Get Out of Bed & Get Better Idaho

We first published this blog in June of 2011. We hope you enjoy it as it is still timely.

As we and our loved ones age, we put a lot of effort (and resources) into making sure a hospital bed is available when needed. New research shows that while that hospital bed may sometimes be necessary, getting up and out of it as quickly as possible is key to recovery. As it turns out, the hospital bed is a huge contributor to old-age infirmity, as studies prove that bed-rest and immobility slow healing and stunt recuperation.

A recent New York Times column, “The New Old Age” covered the results of a study conducted by University of Texas physician, Dr. Steve Fisher. Using a step activity monitor (a fancy pedometer), the Texas team found that just an extra 600 steps a day, or about 12 total minutes of slow walking, could significantly shorten hospital stays. Although Dr. Fisher calls for further study, he still offered his optimism, “It’s encouraging to think that small changes can be of broad benefit.”

Though physicians may have advised nursing staff to help the patient ambulate, nurses and aides frequently have little time for these tasks and the patient may not get up and walk enough. Dr. Fisher recommends that family members take the initiative and ask about getting a physical therapist involved early on and about whether the family is permitted to help the patient walk.

One obstacle to an aggressive mobility plan is the risk of falls. Not only are they a valid concern for you and your loved one, but also for the hospital. Since 2008, a fall is grounds for Medicare to refuse to reimburse a hospital for a patient’s care. So, it’s understandable that the hospital might be overly cautious about families helping elderly patients walk. Nonetheless, Dr. Fisher still encourages families to look for safe ways to help elderly patients get up and walk. While falls can indeed be dangerous, the consequences of prolonged immobility may be worse.

For more information on this and other elder law subjects, contact Idaho Estate Planning and schedule a consultation. Remember, good planning is no accident.

 

Mother's Day Special - Helping Parents Prepare for Their Future

Another oldie but goodie from January 2011 made more timely by the celebration of Mother's Day today. Our Moms (and Dads) deserve our attention when it comes to their potential long term care needs.

There is a very good chance that you or someone you know is taking care of elderly parents now or looking at that possibility in the near future. In 2008 a USA TODAY/ABC News/Gallup Poll of baby boomers found that 41% who had a living parent were providing care for them — either financial help, personal care or both — and 8% of boomers said their parents had moved in with them.

Of those who were not caring for an aging parent, 37% said they expected to do so in the future. About half said they were concerned about being able to provide such care.

 If financial planning and long term care planning have not been done previous to the need for care, the burden falls on the caregiving family member. Decisions about how care will be paid for, who will be responsible for managing the estate as well as how the long term care will be given can cause stress and contention among family members.

It is best for parents and all family members to be involved in planning for future financial needs. The financial resources being used today could change drastically with the occurrence of a stroke, illness or onset of dementia. In order to plan financially for long term care, you need to know what the costs are now and what they will be in the future.

Every year MetLife does a survey of long term care costs. Their 2010 survey shows that the average daily rate for private nursing home is $229 which is up from $219 in 2009. Assisted living monthly base rate cost rose to $3,293 in 2010 from $3131 in 2009. Home health aides average $21 an hour.

Planning financial needs can be very difficult, considering you do not know when long term care will be required or how long it will be needed. Staying in the home for care will require professional home care assistance, travel accommodations to doctor appointments, help with shopping, meals, medical supplies and medication and possibly a 24-hour attendant. Even if a family member is doing most of the care, in most cases professional care will eventually be required or a move to a nursing home facility will be necessary.

When evaluating present income and assets consider how they would work for future needs. Consider the following:

• Care options
• Long Term Care Costs
• Long Term Care Insurance
• Home Care Costs
• Medicaid Planning
• VA Benefits & Planning
• Legal Documents – Estate Planning 

For more information on this and other estate planning subjects, contact Idaho Estate Planning and schedule a consultation. Remember, good planning is no accident.

Recognizing Symptoms of Dementia

We have another installment in our series of favorite blogs from the past. Here is part of a blog from June of 2010. The information is still very valuable.

An online article from FamilyDoctor.org outlines some common symptoms in recognizing dementia.

"Dementia causes many problems for the person who has it and for the person's family. Many of the problems are caused by memory loss. Some common symptoms of dementia are listed below. Not everyone who has dementia will experience all of these symptoms.

• Recent memory loss. All of us forget things for a while and then remember them later. People who have dementia often forget things, but they never remember them. They might ask you the same question over and over, each time forgetting that you've already given them the answer. They won't even remember that they already asked the question.
• Difficulty performing familiar tasks. People who have dementia might cook a meal but forget to serve it. They might even forget that they cooked it. 
  Problems with language. People who have dementia may forget simple words or use the wrong words. This makes it hard to understand what they want.
• Time and place disorientation. People who have dementia may get lost on their own street. They may forget how they got to a certain place and how to get back home. 
  Poor judgment. Even a person who doesn't have dementia might get distracted. But people who have dementia can forget simple things, like forgetting to put on a coat before going out in cold weather.
• Problems with abstract thinking. Anybody might have trouble balancing a checkbook, but people who have dementia may forget what the numbers are and what has to be done with them.
• Misplacing things. People who have dementia may put things in the wrong places. They might put an iron in the freezer or a wristwatch in the sugar bowl. Then they can't find these things later.
• Changes in mood. Everyone is moody at times, but people who have dementia may have fast mood swings, going from calm to tears to anger in a few minutes. 
  Personality changes. People who have dementia may have drastic changes in personality. They might become irritable, suspicious or fearful.
• Loss of initiative. People who have dementia may become passive. They might not want to go places or see other people."

Dementia is caused by change or destruction of brain cells. Often this change is a result of small strokes or blockage of blood cells, severe hypothyroidism or Alzheimer’s disease. There is a continuous decline in ability to perform normal daily activities. Personal care including dressing, bathing, preparing meals and even eating a meal eventually becomes impossible.

The Alzheimer’s Organization reports that 5.3 million Americans suffer from Alzheimer’s disease, the most common cause of dementia. They also report that there are 10.9 million unpaid caregivers helping those afflicted by the disease. In 2000, there were an estimated 411,000 new (incident) cases of Alzheimer’s disease. For 2010, that number is projected to be 454,000 new cases; by 2030, 615,000; and by 2050, 959,000. To read the full report, visit www.alz.org.

In the beginning, family members find part time caregivers for their loved one. At first, loved ones need only a little help with remembering to do daily activities or prepare meals. As dementia progresses, caregiving demands often progress to 24 hour care. Night and day become confused and normal routines of sleeping, eating and functioning become more difficult for the patient. The demented person feels frustrated and may lash out in anger or fear. It is not uncommon for a child or spouse giving the care to quickly become overwhelmed and discouraged.

For more information on dealing with Alzheimer's and other forms of dementia, contact Idaho Estate Planning and schedule a consultation. Remember, good planning is no accident.

Living Wills & Other Medical Directives in Boise Idaho

End-of-life decisions are complicated, but they can be met with proper planning today to ensure your decisions will be carried out in the future.

So, have you executed your medical directive or living will? Was it one you created yourself or downloaded from the internet? If yes, you might want to reconsider that move while you can.

Bloomberg recently published an article titled “The Right Way to Craft a Living Will” that discouraged taking the self-help approach to this fundamental component of your estate planning. It is important to know there is a “right way to craft a living will” and it does involve more than simply signing on the dotted line of a pre-printed form.

Essentially, there may come a time when you are not “available” to make a medical decision – from resuscitation to feeding tubes to what-have-you. What happens then will depend, in large part, on how clear your instructions are. There are some definite shortcomings that can arise, particularly with those free forms you pick up online.

A medical directive or living will is designed to speak for you and be some kind of arbiter. Of course, you can only have so much forethought and the language used in any document can only be so clear. For example, the original article illustrates the complex issues surrounding the word “terminal.”

Given the difficultly attending the whole notion of predicting the course of your future health, consider appointing a trusted family member or friend to be your health care agent to make the decisions when you cannot. That way you are not merely trusting a piece of paper and the interpretation of the same.

Whatever legal arrangements prove to be the most powerful or expedient, the basic truth is that any plan can be put to paper. However, to be truly effective the contents of the plan on that paper and your specific wishes need to be communicated to the people who will be part of the process.

Make sure your loved ones know what your wishes are and that they will work to ensure that they are honored. At Idaho Estate Planning we are the experts you need to know and trust. Work with us and we'll put together a plan that works for you and your loved ones. Remember, good planning is no accident.

Maintaining Healthcare Options in Boise Idaho

Here is another in our "Greatest Hits" series of blogs. This one was first published in June of 2010.

Being In Control
Perhaps the most important goal of any estate plan is to allow the client to maintain control. Most of our clients here at Idaho Estate Planning are very intent on “being in control” as long as possible. They want to make their own decisions about whether to go into a “facility” or stay in their house. (Usually the choice is to stay at home as long as possible.) However, the ability to be in control and stay at home is challenged constantly.

Some of the challenges to being in control consist of those disabilities we all fear:  Alzheimer’s disease, dementia, other mental challenges and numerous physical disabilities. The biggest question becomes, “How do I maintain control if I suffer one of these disabilities?” While these situations are varied (and extremely difficult), there are some basics that will allow you to exercise control, that is, allow you to voice your opinion is such a situation.

Durable Power of Attorney for Health Care
First and foremost, you need to execute a Durable Power of Attorney for Health Care. This is a legal document that allows you to personally choose who will make decisions or give instructions if you are not able to, whether from mental or physical disability. This is an extremely important document to have in your estate plan. It is, therefore, extremely important to carefully consider who you want giving instructions to health care providers on your behalf. Typically, this is a spouse.

But, if the spouse is unable to fulfill this responsibility, who will take over? This requires great thought and consideration. Who has the skill set to take on this responsibility? Who understands what you want to have happen? These are not easy decisions and should not be undertaken lightly.

Living Will
A Living Will is a form created by statute that allows you to express a preference if it is determined by two doctors that you are in a terminal state and being kept alive by artificial life support measures. The Living Will also applies if you are determined to be in a persistent vegetative state (some call this being “brain dead”). The Living Will allows you three basic choices: 1) to forego all life preserving efforts being applied whether artificial or natural; 2) to forego any life preserving efforts applied; or 3) only natural efforts applied including food or water or both. In reality, while these situations do occur, they are rare.

The POST
The Physician Orders for Scope of Treatment or “POST” is a more detailed legal document that allows you be very specific in how treatment, whether artificial or natural is applied to you. You can choose to forego intravenous feeding or the use of a feeding tube. You can choose to forego intubation to keep you breathing. You can choose to forego “aggressive methods” to preserve your life. Each of these is an option that you choose.

HIPAA
If your Living Will or POST is needed, it is your Health Care Agent as established in your Power of Attorney for Health Care who gives the instructions to the health care professionals. These documents, then, work together to help you maintain control of your own situation. One more document that makes all the others work better is the HIPAA release. This is an informational release in which you give the health care professionals permission to provide your health information to your Health Care Agent or other family members. In essence, the Power of Attorney allows your Health Care Agent to talk to the doctor. The HIPAA release allows your doctor to talk to your Health Care Agent.

These, then, are the minimum documents you need to make sure your wishes for health and medical care and end of life decisions are honored. Now is the time to address these concerns and plan for the most difficult of times. Once it starts raining (or hailing as it did yesterday), it’s a little late to start fixing the roof. Once you are incapacitated, it’s too late to do this planning.

At Idaho Estate Planning, we understand the challenges faced by elder Americans. We have the experience and expertise to help you maintain your options and protect yourself as well as your loved ones now and into the future. Remember, good planning is no accident.

  

Alzheimer's - Be Prepared Boise

Here is another in our "Greatest Hits" series of blogs. This one was first published in November of 2011.

While medical research and advocacy are vital causes to uphold, Alzheimer’s is a disease that you and your loved ones might have to face directly, if you have not already. With the reality of Alzheimer’s or dementia striking close to home, some understanding and prior planning can help you in terms of the extensive economic toll and the unique legal ramifications.

According to a recent Forbes article, Alzheimer’s is as widespread as it is demanding. Consider this: Another American citizen will develop Alzheimer’s every 69 seconds. The symptoms are oftentimes subtle, at least initially. Some estimate that more than 13 million Americans will have the disease by 2050 and run up as much as $1 trillion in costs. Because of the progressive nature of the disease, most of the costs and problems won’t develop until later on. Nevertheless, significant planning must take place at the time of diagnosis, if not anticipated beforehand.

So, what is the scope of this “significant planning”? First, you will need to secure medical care, both for now and for the future. That means fundamental financial planning needs to be addressed, to include securing government benefits such as Medicaid and Social Security Disability Insurance. Second, because of Alzheimer’s progressive cognitive degeneration, estate planning must occur early in the process to secure and protect family assets. Thorough estate planning should include durable powers of attorney and advance health care directives. These documents create a plan for your future when you may no longer be able to manage your finances or make decisions regarding your health or personal care due to mental incapacity. With these documents, you identify a trusted person to act on your behalf and in your best interests to make financial and health care decisions for you.

Establishing durable powers of attorney and advance health care directives while you are in good mental and physical health will allow you to avoid the prospects of a court-supervised and expensive conservatorship.

Fundamentally, it’s important to understand that Alzheimer’s is not the same as other diseases. Through it all, competent counsel will be necessary to properly assess the needs and possibilities, as well as to ensure that everything is in place when needed most. At Idaho Estate Planning we have the experience and expertise to help you maintain your options and protect yourself as well as your loved ones now and into the future. We have a network of resources throughout the Treasure Valley ready to help us meet your needs. Remember, good planning is no accident!

Elder Scams on the Rise in Idaho & Nationwide

This is not a new topic for us as a quick scan through our past blogs will show. I came across a nice article from Florida with some good pointers I would like to share. The article titled Scams on the Elderly: Senior Care Tips for Fraud Prevention is a good read.

The article gives a few pointers on helping our parents or other loved ones avoid Elder Abuse.

• Regularly evaluate how things are going for your loved one. Hire a geriatric care manager to help you keep an eye on things from a distance, get a periodic evaluation and check in with calls and in-person visits. Continual communication can help you spot issues, as well as give your loved one opportunities to mention concerns. A professional assessment (and ongoing evaluations) can help determine when it may be necessary to assist with managing finances and household maintenance. Contact us to learn more about geriatric assessments and other eldercare assistance services.
• Share information about popular scams with your loved one and educate on issues such as giving out personal information.
• Help set up a dignified "out" for solicitations. Perhaps your loved one can say they have their "advisor" review everything before they make decisions (whether that really is some type of professional advisor, or running it by you). You might even suggest/share that you do the same yourself, as it is easy for anyone to get caught up in scams and some time to think about purchases and decisions helps.
• Determine ways to simplify finances and possibly consider a system for oversight (regular review/access by a trusted professional or family member).

At Idaho Estate Planning, we understand the challenges faced by elder Americans. We have the experience and expertise to help you maintain your options and protect yourself as well as your loved ones now and into the future. Remember, good planning is no accident.