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How Do I Notify the VA That My Parent Passed Away?

Dealing with the death of a loved one is always hard, and putting off the settling of your parent’s affairs can make it even more difficult. If your parent received the VA Aid & Attendance pension, it is important that you notify the VA of their death as soon as possible so that you will not receive payments from the VA that you will be required to return later.

The consequences of delaying this important step can be unpleasant. If you delay in notifying the VA of your parent’s death, you will have to return the amount of any benefits that the VA sent to your parent after their death. Not only could this create a financial burden to the executor who is attempting to pay debts on behalf of the estate, but it could cause confusion that will complicate the probate process in the future.

There are a couple of ways to notify the VA of your parent’s death. One way is to complete VA Form 21-438, Statement in Support of Claim, and include a copy of the death certificate with the form. Form 21-438 can be found at the following website: http://www.vba.va.gov/pubs/forms/VBA-21-4138-ARE.pdf. However, if your parent was receiving their pension through a direct deposit, it may be faster to call the VA at 1-877-838-2778 and request that payment of benefits be stopped.

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VA Aid and Attendance for Legally Separated Spouses

It is clear that divorced spouses of veterans cannot receive surviving spouse benefits from Aid and Attendance, but some people may be unsure about the rules regarding spouses who were only legally separated from the veteran at the time the veteran passed away. For legally separated spouses, the rules are identical to the rules for divorced spouses – legally separated spouses cannot receive surviving spouse benefits.

However, the rules become more complicated for veterans who are legally separated from their spouse. Often, veterans who are legally separated will not want the VA to consider their spouse’s assets when they are applying for VA benefits. Not only is the veteran no longer living with their spouse, but their spouse will almost always be reluctant to spend down his or her assets to help the veteran receive Aid and Attendance. In order to ensure that the VA will not consider their spouse’s assets on the application, the veteran must confirm in writing that they are separated and that he and his wife are financially independent from each other. This usually requires proof that the veteran and his spouse do not file a joint tax return and do not contribute to each other’s monthly expenses. This statement, along with all proof of separation and financial independence, can be placed in the “remarks” section of the VA application.

It is important to consult with an accredited attorney to make sure that you or your loved one takes the necessary steps to ensure that the VA does not consider a separated spouse’s income and assets when reviewing an Aid and Attendance application.

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Providing for Pets in Your Will or Trust

According to a recent article on BusinessInsider.com, there are some surprising new figures about American households and their pets. “In 2011, Americans spent a record $50.8 billion on pets, according to the American Pet Products Association. We share our homes with an estimated 86 million cats, 78 million dogs, 16 million birds and 160 million fish.”

These numbers perhaps aren’t so shocking when you consider how the role of animals in our lives has changed over the past few decades. Animals have gone from being mere pets or farm animals to being companions, guides, status symbols, and in most cases beloved members of the family. As such, most pet owners want to provide for them as they would a human member of the family.

Unfortunately, as mentioned in the article, “While we may consider our pets family members, our legal system considers them property. And because estate law prohibits us from leaving property (money, real estate, etc.) to property, we must instead provide for our pets through human intermediaries.” The best way to do this is through a pet trust, in which you can nominate a loving caregiver for your pet, as well as set aside some money to be distributed to the caregiver—either in one lump sum or in smaller distributions throughout the life of your pet.

A pet trust may be the most reliable way to ensure your pet will be provided for, but it certainly isn’t the only way. Another option is to simply name a caregiver for your pet in your will or trust and then include the caregiver as a recipient of funds in your will. For example: “If my cat Fluffy is alive at my death, I leave $3,000 for her care to Mary Johnson.” If you have more than one person who might serve as caregiver you should consider also naming back-up caregivers in the event that your first choice is unwilling or unable.

Pets provide so much unconditional love and support during our lives, the last thing we want is to leave them without a friend to care for them after our deaths. The next time you review your estate plan or talk to your attorney, be sure you’ve included a provision for your pet.

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New Veterans’ Cemetery Opens in Virginia

According to local news reports, a new cemetery for veterans, the Southwest Virginia Veterans Cemetery, has opened in Dublin, Virginia, in the southwestern part of the state. Because there are over 80,000 veterans living in southwest Virginia alone, retired Lieutenant Colonel Pat Green pushed for the completion of the $7.2 million cemetery. Veterans who wish to be interred at the new cemetery can pre-apply for interment using the form at the following website: http://www.dvs.virginia.gov/downloads/Dublin%20Pre%20App.pdf. In order to qualify for internment in the cemetery, veterans or their family members must produce proof of military service, usually in the form of a DD-214.

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Will Medicare Provide for You in Your Golden Years?

Many retirees (or soon-to-be-retirees) have been living and saving under the assumption that Medicare would pay for a bulk of their medical costs during retirement, but a recent article in the Wall Street Journal reveals that counting on Medicare may not be the safest bet anymore. According to the article, one of the most important facts that retirees need to understand about Medicare is that “Medicare pays for very little long-term care, and you’ll still need significant savings to cover the rest of your medical expenses.”

This statement may come as a shock to those who fall in the soon-to-be-retired category simply because they likely haven’t had to give much thought to post-retirement medical costs yet; but they may be in for a rude awakening when the time comes to rely on Medicare. “Two-thirds of those on Medicare also said they pay the same, or more, for healthcare now than when they were working. They have been unpleasantly surprised by the cost of Medicare Part B premiums, what you pay for doctor and outpatient coverage, with 44% paying more than they had expected.”

Fortunately, our readers can become aware of this need to be more proactive about their own healthcare, and can start planning now. How you should plan will depend greatly on your age, your current rate of saving, and many other factors. Please contact our office (or your own trusted attorney or financial planner) today.

Posted in Elder Law, Long-Term Care, Medicare | Leave a comment

A Difficult Decision: Choosing a Nursing Home for Yourself or Your Loved One

If and when the time comes to choose a nursing home—either for yourself or for a loved one—how will you know how to choose the right one? A person’s living situation often has a lot to do with how happy they are, so it is important to choose carefully and wisely. When you do begin the process of choosing a nursing home, you don’t have to go into it blind. Here are a few things to consider and questions to ask when you start your search:

A Matter of Money – Nursing care is an expensive prospect, so one of your first considerations when looking for a nursing home will be how much it will cost and how you (or your loved one) will pay for it. Fortunately, it is likely that the entire cost will not have to come out of your personal finances. The Medicare.gov website offers an overview of different strategies to pay for quality nursing care. Your elder law attorney can help you navigate these—and other—options.

For-Profit vs. Non-Profit – Not all nursing homes are created equal, and according to this recent article the choice between a for-profit or non-profit home can be one you’ll want to consider carefully.

Evaluate Staff and Policies – Taking the time you need to evaluate the staff and the policies of the homes on your list will quite possibly be the most important part of your decision-making process. This article from the “Our Parents” website provides a comprehensive list of questions to ask yourself, the nursing home staff, the residents, and more before you make your decision.

Location, Location, Location – Finally, we all know that location is everything, and this is true of nursing homes as well. Issues of location ranging from how close the home is to family and friends, to what kind of view can be seen from the windows can all be of the utmost importance.

Choosing a nursing home may well be one of the most difficult decisions you will ever make, so it’s best to go into it prepared. Don’t be afraid to get in touch with the professionals who can help you make the best possible decision for yourself and your loved ones.

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529 Plans Are Useful for College Tuition AND Estate Planning

As the cost of college tuition rises, so do parents’ stress levels. According to one website, the cost of tuition for one year at some schools can be enough to make a decent down-payment on a house. By the time you’ve paid for your child to spend 4 or 5 years at a university you could almost have bought a vacation home!

This is why 529 plans are an appealing savings tool for many parents. Parents and grandparents already know most of the benefits of a 529 plan: Money inside the plan is outside of the parent’s taxable estate; additionally, funds held inside a 529 plan belong to the parent, not the child, which means not only that parents can choose to reclaim the money if needed in the future, but also that the money in a 529 plan won’t count against the student when he or she applies for financial aid.

What many parents (and grandparents) may not know, and which this article on Investors.com points out, is that 529 plans can also be a useful estate planning tool. “In 2012, the annual gift tax exclusion is $13,000. If you wish, you can put $65,000 into a 529 account for, say, your grandson now. That contribution will be treated as five annual installments of $13,000 in a row for gift tax purposes.” This can be quite a boon for parents or grandparents looking to provide some financial help to their college-age loved ones and avoid gift-taxes.

As beneficial as this sounds, it is important to always remember that no two families are alike, and what may be a useful strategy for one family can be detrimental to another. Please contact your financial planner or estate planning attorney for more information about how a 529 plan may benefit your family.

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Making the Transition to a Long-Term Care Facility as Smooth
as Possible

One question that we often get from our clients is how to know when to place a parent into an assisted living facility or nursing home. Making this decision can be difficult, and disagreements about the best options can cause tension and confusion within the family. However, if you plan ahead and know the physical and mental signs to look out for, knowing when it is time to make the transition can be a much less heartbreaking experience. Below are some of the most important steps that you can take to ensure that you know when to help your parent make the permanent move to an assisted living facility or nursing home – and what to do once the decision has been made.

1. Initiate the discussion before a move becomes necessary.

Moving to a nursing facility is hardly a pleasant thought, but for many seniors it will become a reality. Many children of our clients experience guilt or concern that they may not be acting consistently with their parent’s wishes when they make arrangements for them to move into a long-term care facility. However, if you begin discussing options with your parents while they are still healthy and able to express their wishes, you can eliminate much of this guilt and insecurity. Talk to your parents about what type of facility they expect to move into, what aspects of long-term care are most important to them, and even which specific facilities are the most attractive to them. Initiating the conversation before the situation reaches a crisis point will help you (and your parent) to be capable of making the correct decisions when the time comes to make the move.

2. Be on the lookout for changes in physical capabilities.

People who move to long-term care facilities often do so because they are physically unable to care for themselves. While some people need extensive care, those who move to assisted living facilities may only need help with one or two activities of daily living. If the layout of your parent’s house has made it difficult or dangerous for them to move around easily in the home (for example, they can no longer climb stairs), living in the home may no longer be an ideal situation. It is important to look for evidence that your parent has fallen or stumbled. A typical warning sign that someone needs to move to a long-term care facility is when they have experienced several falls without being able to get up or call for help. Assisted living and nursing facilities have round-the-clock staff on hand to monitor residents.

Another warning sign is when the house begins to appear dirty. Perhaps Mom’s house was always spotless, but lately you’ve been noticing crumbs in the kitchen and dirt on the floor. These could be signs that your parent is no longer able to care for her home in the way that she would like, and it may be time to consider moving her to an assisted living facility.

Further physical signs that it may be time to consider speaking with your parent about moving outside of the home include evidence of frequent sleep disturbances, difficulty dressing or bathing, and difficulty preparing meals.

3. Be on the lookout for changes in mental capabilities.

Has your parent exhibited sudden changes is personality? Is it becoming obvious that she is forgetful or frequently disoriented? Are you concerned that your parent has begun to make poor decisions or has had difficulty making decisions at all? Each of these issues could mean that your parent has dementia. Because diseases causing dementia are usually progressive, their condition usually will not improve and it is important that your parent move into an assisted living facility or nursing home before the dementia worsens. Symptoms such as forgetting to take medication, difficulty operating electronics like the telephone or the stove, and dangerous driving habits can also be signs that it’s time to consider moving to a long-term care facility.

4. Schedule a family meeting.

Once you’ve determined that your parent’s physical and mental symptoms show a need to move out of the home, it’s important that you schedule a family meeting. This allows everyone in the family to share their concerns and to make decisions together about who will be involved in the decisionmaking process and how to proceed with the move. Remember to include your parent’s caregivers in the family meeting – their input can be important in determining what your parent’s needs are.

At the meeting, it is important to have an agenda to help everyone focus on what decisions need to be made. This agenda could include discussions about your parent’s medical status, sharing feelings and opinions about the situation, financial concerns, and how to move forward. If you feel that there may be disagreements between family members, you may want to hold the meeting in a neutral place and have a disinterested third party mediate the meeting.

5. Research long-term care facilities in the area.

If you haven’t already done so, now is the time to research different options for long-term care in the area where your parent will be living. One option is to go to www.snapforseniors.com to research different facilities in your area. Once you find a facility you’re interested in, you can call the facility to take a tour, check references from families of former or current residents, and weigh your financial options.

6. Continue to keep family involved.

Moving to a long-term care facility is a large transition for everyone, not just your parent. It is important that you keep your family informed about what decisions have been made, even if they are not directly involved in the decisionmaking process. If some family members are contributing more time or money to the transition process than others, it is important to acknowledge this effort and attempt to achieve balance within the family if possible.

7. Most importantly, continue to keep your parent involved.

Of course, the person for whom the transition will be the most difficult is your parent. She may be feeling confused or angry at the thought of leaving a home that she may have lived in for a number of years, or she may not understand where she is once she lives in her new home. This is especially true if your parent suffers from dementia. It is important that you allow your parent to express her feelings about her new home and that you listen to her concerns. One way to ease her mind could be to ask her how she feels about the new location at a time when she is calm and there are few distractions. Depending on the situation, it may be helpful to visit the facility with your parent shortly before the move so that she can learn more about it and start to become comfortable there.

Posted in Assisted Living, Long-Term Care, Nursing Home | Leave a comment

You Can Help Your Child Become a Homeowner—But Do Your Research First

American culture is one that respects independence and self-reliance; but with the current tough economic situation, and the fact that more young adults are graduating from college without jobs, or living at home until well into their 20’s, many families are opting to do things the old-fashioned way—with parents giving kids the financial help they need to buy their first home.

Helping your child make such a significant purchase, however, requires foresight and planning in order to do it without hurting your own tax- and estate-planning potential, and without creating family conflict later on. This article from CNN Money has some good advice for would-be parental mortgage-lenders.

The first thing to remember ANY time you make a monetary gift is that the federal government will only let you give away so much each year without incurring a gift tax. “In 2012, a taxpayer can give $13,000 to an individual without triggering so-called gift taxes. Married couples may underwrite their child to the tune of $26,000 a year.”

If you’d like to contribute more than $13k or $26k toward your child’s first home there are ways to go about it without hurting your own tax status later on. Your best option in this case might be to “lend money to your child — and you can offer terms far more generous than any bank’s. To make sure the money is considered a loan and not a gift for tax purposes, you’ll need to charge interest based on the IRS’s ‘applicable federal rate’ minimum for various loan maturities.” These rates are generally very good, “as low as 0.19% for loan terms of three years or less to 2.63% for loan maturities of over nine years.”

Of course, if you become your child’s mortgage lender the government isn’t going to just take your word for it; you’ll want to be sure you have the proper contracts drawn up and signed, and that you keep good records of all payments. “If the loan is properly structured as a mortgage and filed, the interest will be tax-deductible for your child. Having a contract also makes estate planning easier.”

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How to Ensure Your Valuable Antiques Don’t End Up in Someone’s Yard Sale

Have you seen Antiques Roadshow? It’s a PBS television show in which antique experts travel around the country to critique and appraise antiques brought in by local people. Quite often on the show someone will bring in an old knick-knack they found in grandma’s attic, only to find out it’s actually worth hundreds or thousands of dollars! Now imagine that for every person who makes this valuable discovery on television, there are at least three people who end up selling their own unrecognized treasure for a few bucks at a yard sale. It’s painful to consider.

How can you ensure that your family recognizes the value of your treasures? The first step is to talk to your attorney about creating the right estate plan to protect ALL your assets, and provide for their distribution upon your death. Your next step is to make a list of assets and keep it with your estate planning documents, where it can be easily found. Your list of assets should include not only real estate property and financial accounts, but personal property as well—the artwork, historical artifacts, and antiques you value so highly. Your list should include a description of each item, an approximate value, and the name of the person you would like to inherit the item (if applicable.)

This list is called a Personal Property Memorandum, and can be an essential component in your estate plan. Very often the person named as executor of an estate is the most responsible and organized member of the family; this is just what you need in an executor, but it’s not always the person who will look at a 200 year old, somewhat worn, antique bureau and recognize its value. Having a list of assets included in your estate plan will ensure that the valuable pieces are recognized and appreciated—regardless of who is named as the executor of the estate.

For more information about personal property memorandums, or about creating the best estate plan to protect your family, please contact our office.

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