Reverse Mortgages–Part 4

Resources

· AARP - has an excellent section dedicated to reverse mortgages, including a reverse mortgage calculator then can give you an idea before you apply of how much money you might be able to take out of your home.

http://www.aarp.org/money/credit-loans-debt/reverse_mortgages/

· The National Center for Home Equity Conversions - has greater detail, and many supplemental materials.

http://www.reverse.org./

· The names of FHA insured lenders can be requested from the Federal National Mortgage Associations (800) 7-FANNIE (Fannie Mae)

· The attorneys at Cohen and Oalican would be pleased to assist you in evaluating all of your financial options, including Reverse Mortgages.

http://www.cohenoalican.com

Reverse Mortgages–Part 3

Reverse Mortgage Pro's

• Fast access to your equity.
• The mortgage is typically not paid until you die.
• Proceeds can be used for in-home care if you do not qualify for, or cannot get adequate in-home care, keeping you out of a nursing home for as long as possible.
• If you have great need for the cash flow from a reverse mortgage, and preserving your estate for your heirs is not the primary objective of your financial plan, this can be an effective way of supplementing your cash flow.

Reverse Mortgage Con's

High Closing costs.

· Closing costs for Reverse Mortgages can be as much as double what is charged for a conventional mortgage.

Potential impact on eligibility for government benefits.

· Reverse mortgage payments are not typically counted as income, if the proceeds are spent in the month they are received. If the proceeds from the reverse mortgage however are not spent and accumulate in a bank account, they could push you over the allowable limits for Medicaid of SSI. Certain states may also consider the proceeds to be income, even though it is your own equity, as you receive a monthly check.

Spending your children's inheritance.

· If you are trying to preserve your estate for your heirs, the mortgage will be paid off through your estate. Your inheritors can receive the difference, however, between what you owe on the reverse mortgage and what the home actually sells for if there is an excess.

Moving Out.

· Under certain circumstances, if you end up moving to a nursing home, it could be construed as having “permanently moved out”, as there may be a presumption that an elderly person leaving their home for a nursing home would not be returning. If this were the case, it could force the sale of the home.

to be continued…

Reverse Mortgages–Part 2

How much can I borrow?

What can be borrowed is not a set amount, it is a formula that takes the following into consideration.

1. The age of the borrower.

The older the borrower, the more that can be borrowed.

2. Current Interest Rates

The lower the interest rate, the more that can be borrowed.

3. The equity in the home.

The greater the value of the home, the more that can be borrowed.

4. The location (county) of the home

AARP has a very effective calculator that can help you determine how much money you might be able to take out of your home.

http://rmc.ibisreverse.com/rmc_pages/rmc_aarp/aarp_index.aspx

How is the Reverse Mortgage paid off?

Typically, the reverse mortgage is paid off by the borrower's estate.

The reverse mortgage can also be paid off from the proceeds of the sale of the house if the house is sold before the borrower is deceased.

What if I owe money on my home?

If you do not own your home outright (if there is an existing mortgage) you must pay off that mortgage, however, it can be paid off with the proceeds of the Reverse Mortgage.

 

to be continued…

Reverse Mortgages–Part 1

Introduction to Reverse Mortgages from an eldercare perspective.

Elders often struggle to find the resources to stay out of nursing homes, and stay in their home, but still need in-home care. A reverse mortgage can be used to help make that happen.

Medicaid can be used to pay for nursing home care, but stay at home care can be difficult under Medicaid.

A reverse mortgage is not a panacea and should be evaluated with the help of an elder care attorney or elder care financial advisor.

What is a reverse mortgage?

A reverse mortgage is a loan designed specifically for elders (62 years of age or older) to take money out of their home either in payments, in a lump sum, as a credit line, or as any combination of the three.

Repayment of a Reverse Mortgage

A Reverse mortgage is a LOAN, and that loan has to be repaid.

The loans do not have to be repaid until any of the following 3 events occur.

1. the last surviving borrower dies.

2. the home is sold.

3. the borrower moves out permanently.

What is the purpose of the Reverse Mortgage?

One must never forget that the first purpose of any financial instrument, is to make money for the lender.

The intention or motivation for a reverse mortgage was to give seniors that were real estate rich, but cash flow disadvantaged, fast and easy access to the equity in their home for any purpose, including home based elder care.

 

to be continued….

Elder Abuse, a growing crisis without leadership–Part 3 of 3

 

So who is responsible?  The Administration on Aging & Health and Human Services are supposed to be providing the leadership services to put this problem in the spotlight where it can get the resources it needs to support our seniors.  The Elder Justice Act of 2009 makes grants available to states for Adult Protective Services Programs.  The Act also puts forward the means of creating, and implementing national priorities.  The Act, however, does not speak to national Elder Abuse Studies.

The report recommends that no less than The Secretary of Health and Human Services should determine the importance of providing Adult Protective Services with dedicated resources, and work with the Attorney General to create and deploy a national Adult Protective Services database so that the true measure of this problem is understood.

It is our firm’s hope that once properly understood, and the real depth of elder abuse comes to light, and thereby appropriate resources will be finally granted to the states to stop this horrible crime.

The report does seem to point to a need for better information, better cooperation, and better standards.  However what the elder community needs is real support.

With big government’s seeming paralysis to act on almost 50 years of “good intent” the need for legal representation, specializing in Elder Law is very obviously paramount.  While the firm of Cohen & Oalican deplores the need for protection for the elderly, the rising tide of abuse, in share numbers and sophistication makes it obvious that qualified legal counsel needs to be retained to help protect our more vulnerable population. 

Please, if you are a victim of abuse, don’t hide it, seek out help from law enforcement, and with an attorney.   If you haven’t been a victim of elder abuse, engage the services of an elder law firm to help you in decisions where you might be vulnerable.

 

Abuse and neglect should be important to all of us. Contact the elder law offices of Cohen & Oalican to talk to us. A loved one in your life may be the victim of nursing home abuse and neglect. An attorney can help you understand the law and what to do next

Elder Abuse, a growing crisis without leadership -Part 2 of 3

Elder abuse case loads are growing in both number, and complexity.  According the study, APS  (Adult Protective Services) program resources are not keeping pace with these changes.  It is difficult to keep pace with enough caseworkers, and keep APS caseworkers appropriately trained, to help our growing elder community.

The study indicates that a lack of coordination in collecting, maintaining and reporting statewide case level administrative information, which limits government’s ability to track the effectiveness of services that they have provided.

The Older Americans Act of 1965 spoke to the importance of needed federal leadership in the elder justice area, the study states that no national policy priorities currently exist… almost 50 years later!

 

Seven agencies within the Departments of Health and Human Services, as well as the Justice Department authorized 11.9 million dollars in grants in 2009 for support for the justice department to support sharing of information between Adult Protective Services and its many partners, like law enforcement.  However, the result has not offered Adult Protective Services the support they need to resolve elder abuse cases, or in standardizing the information that they need to effectively report on the problems that they have encountered. 

 

Part 3 next week…

 

Cohen & Oalican acts aggressively against nursing home abuse and neglect. We proudly provide legal services to the elderly and persons with disabilities and their families. If you have an elderly parent or relative in a nursing home, and you suspect they are being abused or neglected, get help right away. Our nursing home abuse lawyers will advise you on nursing home abuse laws and the rights of residents under the care of nursing home staff.  Contactone of our nursing home attorneys to schedule a consultation. A specialist in nursing home neglect will investigate the abuse or neglect and help you decide what may be your best legal options.

Elder Abuse - a growing crisis without leadership Part 1 of 3

According to the March 2011 Government Accountability Office (GAO) report “Leadership could Enhance National Response to Elder Abuse”  over 14%  (14.1%) of elders (not institutionalized) have experienced elder abuse.

Below is a link to the study.

http://www.gao.gov/products/GAO-11-208

Elder Abuse is categorized as

·         Psychological

·         Physical

·         Sexual Abuse

·         Neglect

·         Financial Exploitation.

 

The study, and three similar studies preceding it, indicates that the numbers are likely higher due to non-reporting among seniors.

The factors that leave elder adults prey to abuse include:

·         Physical and Cognitive       Impairments

·         Mental Problems

·         Low social support among victims.

 

This abuse has been associated with a negative impact on health and longevity.  In short, we have a growing problem of elder abuse, that’s literally killing our elderly population.

 

Part 2 to be posted next week…

Cohen & Oalican acts aggressively against nursing home abuse and neglect. We proudly provide legal services to the elderly and persons with disabilities and their families. If you have an elderly parent or relative in a nursing home, and you suspect they are being abused or neglected, get help right away. Our nursing home abuse lawyers will advise you on nursing home abuse laws and the rights of residents under the care of nursing home staff.  Contact one of our nursing home attorneys to schedule a consultation. A specialist in nursing home neglect will investigate the abuse or neglect and help you decide what may be your best legal options.

Alternatives to Nursing Homes as Nursing Home Populations Swell With Younger Patients - Part 1

We heard the other day on National Public Radio, that one of the fastest growing populations in Nursing Homes is not the elderly, but rather adults   aged 31 TO 64.

These patients that are victims of disease, accident, health failure, or mental health problems.  Many of these new patients could be cared for at home, or assisted living facilities, but are instead finding themselves in the Nursing Home System.  Young people aged 31 to 64 are the single fastest growing population of nursing homes.  This population has grown roughly 40% since 2000.

This report underscores the fundamental need for legal advocacy when considering nursing home care, or alternatives to nursing home care.

You can see the full report here.

http://www.npr.org/2010/12/09/131912529/a-new-nursing-home-population-the-young

 

All too often, people think of nursing homes as a repository for the elderly, and disability attorneys like Cohen and Oalican as being entirely elder law.  There is a huge sense of accomplishment for us, however, when  we can use our skills and help young people, and their families, to live a fulfilling life, perhaps outside of institutional care, and despite their disadvantages.  We have long been involved in special needs trusts to help protect family’s finances when there is a young (or younger) family member with special needs.

 

To be continued….

Preview of the Proposed New Tax Relief Act of 2010–Conclusion

 

 

Changes to Regulated Investment company (RIC). 
Do you have investments in an offshore owed Regulated Investment company (RIC).  Here’s what changes you might be able to expect if the current bill is extended.

 

Estate tax look-through of certain Regulated Investment Company (RIC) stock held by nonresidents. Although stock issued by a domestic corporation generally is treated as property within the United States, stock of a RIC that was owned by a nonresident non-citizen is not deemed property within the United States in the proportion that, at the end of the quarter of the RIC’s taxable year immediately before a decedent’s date of death, the assets held by the RIC are debt obligations, deposits, or other property that would be treated as situated outside the United States if held directly by the estate (the “estate tax look-through rule for RIC stock”). The proposal permits the look-through rule for RIC stock to apply to estates of decedents dying before January 1, 2012.

 

By the time you read this, much may have been changed.  What we know for sure is that there will be change and it will impact our elder and special needs clients.  Please consult with us, or with an appropriate elder law attorney as you make decisions that will impact your taxable situation for the coming years.

 

Your friends at…

 

Cohen & Oalican

Boston Elder Law Attorneys
Raynham Elder Law Attorneys
Andover Elder Law Attorneys

Preview of the Proposed New Tax Relief Act of 2010 - Part 4

 

Once again.. this is a preview of what is currently under discussion.  It is NOT law, and should not be looked at as political, legal, or financial advice.  This is only  a brief look at some of the currently debated act, as it impacts our senior clientele.

 

Tax Free Distributions to Charity from IRA Account
Continuing on the theme of philanthropy, if approved, there will continue to be opportunity to make charitable contributions from your retirement account without attracting a tax penalty.

The bill if approved in its current form extends through 2011 the provision that permits tax-free distributions to charity from an Individual Retirement Account (IRA) of up to $100,000 per taxpayer, per taxable year. The bill allows individuals to make charitable transfers during January of 2011 and treat them as if made during 2010.

 

To Be Continued…

 

Your friends at…

 

Cohen & Oalican, LLP

Boston Elder Law Attorneys
Raynham Elder Law Attorneys
Andover Elder Law Attorneys

Preview of the Proposed New Tax Relief Act of 2010 - Part 2

 

Once again.. this is a preview of what is currently under discussion.  It is NOT law, and should not be looked at as political, legal, or financial advice.  This is only  a brief look at some of the currently debated act, as it impacts our senior clientele.

 

 

Capital Gains and Dividends.
Many of our clients are reliant on their investments.  Here is what is under contemplation regarding Capital Gains and Dividends.

Under discussion it to temporarily extend the current capital gains and dividend rates. Currently  capital gains and dividend rates for individuals below the 25% bracket is equal to zero percent. For those in the 25% bracket and above, the capital gains and dividend rates are 15%. If this portion of the act does not happen, capital gains taxes become 10% and 20% respectively.  Dividends will be subject to the ordinary income rates. This proposal extends the current capital gains and dividends rates for all taxpayers for an additional two years, through 2012.

 

 

Dependent Care Credit
Many of our clients have adult dependent children, or are themselves dependents of their children.  The impact of the dependent care credit is of a direct concern to our elder and disabled clients.   Under discussion is to (temporarily) extend the expanded dependent care credit.  The dependent care credit allows a taxpayer a credit for an applicable percentage of child care expenses for children under 13 and disabled dependents.   The current eligible expenses are $3,000 for one dependent, and $6,000 for two or more dependents.  These are proposed to be extended through 2012.   If the credit falls back to previous rates, it will be only $2,400 for one dependent and $4,800 for two or more dependents.

 

 

Your friends at…

Cohen & Oalican, LLP

Boston ElderLaw Attorneys
Raynham ElderLaw Attorneys
Andover ElderLaw Attorneys

Preview of the Proposed New Tax Relief Act of 2010 - Part 1

 

 

There’s a lot of talk about the New Tax Relief Act of 2010. 

At the time of this writing, it isn’t law, and with our current political logjam, there is likely to be a fair bit of change between now and then. 

We thought, however, that our clients would like to hear some of the elements that are of most direct interest to their welfare, and to the health of their estate.

Once again.. this is a preview of what is currently under discussion.  It is NOT law, and should not be looked at as political, legal, or financial advice.  This is only  a brief look at some of the currently debated act, as it impacts our senior clientele.

Reductions in Individual Income Tax Rates

Under contemplation is to temporarily extend the 10% bracket. The 10% individual income tax bracket expires at the end of 2010, and this impacts a great deal of our elder law clients. If nothing happens, the lowest tax rate will be 15%. This proposal extends the 10% individual income tax bracket for an additional two years, through 2012.

 

Part 2 will look at the proposed changes to Capital Gains and Dividends as well as The Dependant Care Credit.

 

Your friends at…

Cohen & Oalican, LLP

Boston ElderLaw Attorneys
Raynham ElderLaw Attorneys
Andover ElderLaw Attorneys

Scams and our elderly clients

• Unlicensed contractors offering home repairs: "Hey, we just finished a job for the smiths two streets over, and there's leftover tile, would you like a great deal on....."  If it sounds too good to be true, it probably is.  Beware of home repair scams.   Look out for transient work crews, strangers claiming to have extra material, free inspections in your home.. All of these should be red flags.  You should look to licensed bonded and insured professionals.  It may feel more expensive at the outset than these street contractors that show up.. but nothing is more expensive than a botched job, or worse, paying and never seeing your money or the work again.  Shop around for a certified contractor insist on a detailed contract on the work to be done, estimated cost and timetable.

• The state of Massachusetts Executive Office of Elder Affairs should be notified of any scam, or scam attempt by calling 1-800-243-4636.

If you have been victimized, keeping quiet will not help the next victim in line.  Just last month (October 20/2010) in Ipswitch an elderly citizen was approached by someone saying that they were the recipient of funds from the federal government, and asked to provide personal information in order to claim his windfall.  The man intelligently informed local police, and the scammer was investigated and arrested.  We applaud this anonymous individual.  Our elders cannot be a doormat waiting for the next scam artist to come knocking. 

If you are subjected to a scam, contact local authorities, and your elder law attorney.

 

At Cohen & Olican we take pride in protecting our clients.

Scams and our elderly clients: Some common swindles–ID Theft

 

 

ID theft: With the growing of the internet and all the different ways con artists work to get ahold of your private information, you must be incredibly careful with Identity theft.   Place outgoing mail in a secure collection box and remove incoming mail from your mailbox promptly. Get a shredder.. nothing that is in your trash should be considered safe.  Any personal information should be shredded before it is trashed.   Question any website that asks you for your passwords or bank account numbers.  Websites can be built to look like they are your real bank website - but in truth - they are there to take your information.  If it doesn't feel right..ask the question.. has my bank ever before asked me to go to a website just to confirm my password... We assure you - they haven't.  If in doubt.. call your bank, or whomever it is that is asking for your information.   To cut down on credit offers, call 888-567-8688 or go to http://www.optoutprescreen.com to opt out of mail credit offers. You will need to provide your Social Security number so they can match your request with your file - this is a legitimate request for your private information.

 

At Cohen Olican we take pride in protecting our clients. 

Scams and our elderly clients.

Our elder law firm, Cohen & Olican LLP, works hard to protect the rights and assets of our elderly and handicapped clients.  When we champion your rights, it is totally upsetting to us to see our clients preyed on by unscrupulous con artists. 

So, in this article, we are going to do our best to alert you to some of the more common scams, and how to protect yourself.  Of course, should you fall victim to one of these scam artist, turning to professional law enforcement, and your elder law attorney is far more important than protecting yourself from embarrassment.  Acting against these scam artists is the only way to protect the next victim.

You've hear the adage "If it sounds to good to be true......"   Well, frankly, more often than not, it is too good to be true.   Yet still the vulnerable are constantly preyed on by con men and women, leaving financial devastation in their wake.

 

Tomorrow we will present some of the most common scams you should be on the look out for.

MEDCottage or Granny Pod–Part 1

 

MEDCottage

One of the things that the elderly hate the most and find really upsetting is to be moved from their familiar surroundings to a hospital or nursing home. The clinical, coldblooded ambience of a medical treatment center possibly makes the older lot a bit nervous and also tentative about their future.

Priests attending to older people have commented on this feeling and also opined that it appears that closeness to family members and access to their loved ones are most important issues. There was one lady in particular about whom Rev. Kenneth Dupin had talked about when discussing this aspect of caring for senior citizens. Katie was a happy old lady living in her own home, filled with mementos and artifacts from her past and she loved to talk of the days gone by. Rev. Dupin enjoyed listening to her anecdotes when he visited her, but the entire scenario changed when Katie was shifted to a nursing home some time afterwards.

Katie’s entire demeanor and happy attitude had just disappeared, which was noticed by Rev. Dupin when he went to see her at the nursing home. She begged and pleaded to be taken back home with tears running down her cheeks. She did not get the chance to go back to her beloved home, as she passed away in the nursing home, but the entire episode had a profound effect on Rev. Dupin. He was extremely moved by Katie’s attachment to her home and her deep melancholy at being moved to a nursing home, away from her loved ones.

In a talk with Audie Cornish of the National Public Radio (NPR) he said that Katie and her emotional outpourings had left him thinking about the entire subject of elderly people and their happiness in their last days. He was seriously wondering whether there was some way whereby older people could be kept closer to their families and out of places like hospitals and nursing homes. His concern is now being addressed as a new concept called “granny pods” that is gradually becoming an alternative for the housing of the elderly.

 

In Part 2 Cohen & Oalican, LLP talk more about the concept of “granny pods” or MEDCottages. Call our attorneys to see if this is an option for you and if  Medicaid covers it.

How to Protect Your Home if You Are Admitted to a Nursing Home - Part 3

Medicaid Lien

There is also the distinct possibility of Medicaid putting a lien on your home to compensate for the expenditure on your treatment. If you sell your home while still living, the lien would have to be satisfied by reimbursing the state for the amount spent on your medical care. The only cases where you can claim exemption from this rule is when a spouse, or a minor, disabled or blind child, or a sibling with equity share in the property, is living in your home.

Recovery of Estate

As stated earlier, only if a spouse, a minor, blind, or disabled child, or a sibling with a share in the property inhabit the house, can you be exempted from the state claiming it as recompense for your Medicaid expenses of your nursing home treatment. If the spouse of dependent family member move out or dies, the state can again try to claim the property.

There are some situations however, when the value of a home or property can be protected against recovery by Medicaid. These are:

• If you or your spouse owned the home as tenants by the entirety.
• If the house is in the name of your spouse and you have given up your interest in it.
• If the house is in the name of an irrevocable trust.
• If any family member is eligible as a ‘care-taker child’.’ This is applicable when a daughter/son looked after you prior to your admittance to a nursing home and has no other place to live in. The person can then avoid a Medicaid claim on the house after your demise.

It is advisable to have a detailed discussion with an attorney regarding this ‘care-taker child exception’ and whether it can be applicable for any family member in your case. Considering the many legalities and other policy matters involved, the attorney can guide and help you to protect and retain your home and property, against all claims by the state and Medicaid.

For further information visit Cohen & Oalican,LLP Boston Elder Law and Estate Planning Attorneys, Also serving Andover and Raynham Massachusetts

How to Protect Your Home if You Are Admitted to a Nursing Home - Part 2

Part 2

Transfer of your home

The legal transfer on ownership of your home to your children or any other family member may incur a Medicaid penalty, which would affect your eligibility for Medicaid for a certain period of time. It is best to talk to an attorney to find out all the legalities regarding your wish to transfer your property ownership to someone else, before you do it.

There is no penalty involved if you transfer ownership of your home, to the following:

1. To your spouse.

2. Any child of yours who is under 21 years of age, or visually or physically challenged.

3. Into a trust that is formulated for the sole benefit of a disabled person under 65 years of age. This could be for the Medicaid applicant as well, under certain circumstances.

4. A brother or sister of the owner, who has lived in the same home for one year prior to the admission of the applicant in the nursing home and also has an equity share in the property.

5. A child who has been a caregiver and is the offspring of the applicant, who has lived in the same house for a minimum period of 2 years. He/she must have taken care of the applicant during that period to avoid admission to a nursing home.

You may consider selling off your home at the current market value, but you may find yourself ineligible for any Medicaid benefits. You may end up utilizing the money from the sale of your home, for your medical treatment.


For advice with your Medicaid Planning, contact Cohen & Oalican,LLP Boston Elder Law and Estate Planning Attorneys, Also serving Andover and Raynham Massachusetts

How to Protect Your home if You Are Admitted to a Nursing Home - Part 1

How to Protect Your Home if You Are Admitted to a Nursing Home


When you need to obtain Medicaid coverage for your future medical treatment and care, it is not necessary to sell your home. However, if the house is in your sole name, the state may claim your house legally after your demise. When you claim Medicaid to pay for medical treatment in a nursing home, it is possible that the state may try to recover the cost of the benefits provided, by placing a lien against your home. This is termed ‘estate recovery’ and the house you own may be the only item of considerable value left after your demise, given the terms and conditions of eligibility for Medicaid.

So there is a distinct possibility of the state filing a legal claim on your property and home after your demise. It is in your interest therefore, to consult an attorney to get complete information and find out how to protect your home, as soon as you need to be admitted to a nursing home for your medical treatment. Some states have implemented the Deficit Reduction Act of 2005, whereby the home is not looked upon as an asset for the terms of eligibility for Medicaid, if the equity value is less than $500,000. In some states, the equity value limit is $750,000. You can retain your home and property with no limit on the equity value, if your spouse or
any other dependent family members live there.


Cohen & Oalican,LLP Boston. Elder Law and Estate Planning Attorneys, Also serving Andover and Raynham Massachusetts

A Guidebook for Caregivers of Alzheimer’s Disease

A Guidebook for Caregivers of Alzheimer’s Disease


There is a new online guidebook published by the National Institute on Aging, detailing the aspects of care-giving for those afflicted with Alzheimer’s disease. This is specifically for the people who are facing the difficult task of looking after family members or others, stricken with this incurable disease. The aspects of the guidebook that are worth mentioning are:

1. It is written in simple, clear language

2. It is exhaustive, giving a complete range of information, from full details of the medical condition and legal formalities to the various aspects of care-giving and what to do and what to avoid

3. It is free

You can read it online Read it online (P.D.F.) at Cohen & Oalican, LLP or for future reference (as it is very useful), you can order print copies from the website.

The Alzheimer’s Disease Education and Referral Center of the National Institute of Aging provides answers to all queries, sends different journals and other publications on the subject and helps with information on local medical and other support services. The Center also has detailed and up-to-date information on the clinical trials being undertaken for research, around the country. The Center is open from 8:30 am to 5:00 pm Eastern Time from Monday to Friday and the staff members are fluent in English and Spanish. There is a toll-free number too for the convenience of people who wish to contact them: 800-438-4380.

Cohen & Oalican, LLP

Boston Elder Law and Estate Planning Attorneys Also Serving Andover and Raynham Massachusetts