Law Offices of Gerald L. KaneLaw Firm Law Offices of Gerald L. Kane Attorneys Encino, California Lawyers | Elder, VA Benefits2023-06-27T11:36:41Zhttps://www.estplan.com/feed/atom/WordPress/wp-content/uploads/sites/1201525/2019/10/cropped-favicon-1-32x32.pngby geraldkanehttps://www.estplan.com/?p=517032021-12-01T15:07:18Z2021-12-01T00:30:38ZOur nation’s population is a aging at a faster rate than ever before, and collectively we are living much longer than in the past. In fact, by 2034, seniors (age 65 and older) will outnumber children under age 18 for the first time in U.S. history, according to Census Bureau projections.With the booming aging population, more and more seniors will require long-term healthcare services, whether at home, in an assisted living facility, or in a nursing home. However, such long-term care can be extremely expensive, especially when it’s needed for extended periods. Moreover, many people mistakenly believe that their health insurance or the government will pay for their long-term care needs. But the fact is, traditional health insurance doesn’t cover long-term care. And though Medicare does pay for some long-term care, it’s typically limited (covering a maximum of 100 days), difficult to qualify for, and requires you to deplete nearly all of your assets before being eligible (unless you use proactive planning to shield your assets, which we can support you with if that’s important to you and your family).To address this gap in healthcare coverage, long-term care insurance was created. Since such insurance is fairly new, here we’ll answer some of the most frequently asked questions about these policies to help you determine whether you (or your loved ones) could benefit from investing in long-term care insurance coverage as part of your estate plan.Q: What is long-term care?A: Long-term care is a general term that describes the type of care or support you need when you are no longer able to handle activities of daily living (ADLs) on your own. ADLs include things, such as getting dressed, bathing, eating, and using the bathroom.In some cases, long-term care might simply mean that you have someone assist you in your own home with getting ready in the morning and before bed at night. In other cases, long-term care might mean you move into a nursing home to recover from surgery or manage a chronic medical condition.Some common activities of daily living (ADLs) include:
Ambulating (walking or getting around)
Feeding
Bathing
Dressing and grooming
Using the restroom
Continence management
Getting in and out of bed or a chair
Q: What are the different types of long-term care?A: Long-term care services typically fall into two categories: personal care and skilled care. Personal care, also known as custodial care, is for people who require assistance with non-medical activities, including the following:ADLs such as dressing, grooming, bathing, and eating.
Instrumental activities of daily living (IADLs), such as grocery shopping, meal prep, and laundry
Companionship
Supervision
Transportation
Skilled care, or skilled nursing care, is for people who require skilled medical care or rehabilitation services, including:
Medication management
Vital sign monitoring
IV treatments or feedings
Occupational, physical, and speech therapy
Wound care
Mobility assistance
Q: What is long-term care insurance?
A: First introduced as “nursing home insurance” in the 1980s, long-term care insurance is designed to cover the expenses related to your long-term care in the event you are no longer able to handle your own ADLs. These policies cover the cost of both personal care and skilled care services whenever and wherever you plan to receive care, whether in your own home, an assisted living facility, a nursing home, or a community care facility. Some policies even cover modifications to make your home more accessible, such as adding wheelchair ramps or grab bars to your bathroom.Q: How does long-term care insurance work?A: Before your coverage kicks in, most policies require that you demonstrate you have lost the ability to engage in at least two or three ADLs. Most policies also have a deductible, or “elimination period,” which is a set number of days that must elapse between the time you become disabled (eligible for benefits) and the time your coverage kicks in.Many policies offer a 90-day elimination period, but others can be longer, shorter, or even have no elimination period at all. Of course, the shorter the elimination period, the more expensive the premium. Additionally, long-term care policies typically come with a predetermined benefit period, which is the number of years of care it will pay for.For example, a benefit period of three to five years is a quite common duration for such policies. Most policies also come with a cap on the dollar amount of coverage that will be paid for care on a daily basis, known as a Daily Benefit Amount.Q: When should you purchase long-term care insurance?
A: Obviously, the younger and healthier you are when you buy the policy, the cheaper the premiums will be, so the sooner you invest in coverage, the better. In fact, most policies exclude certain pre-existing conditions, so if you wait until you become ill, it can be impossible to find coverage.For example, if you have any of the following conditions, it generally disqualifies you from obtaining coverage:
You already need help with ADLs
You have AIDS or AIDS-Related Complex (ARC)
You have Alzheimer’s Disease or any form of dementia or cognitive dysfunction
You have a neurological disease, such as multiple sclerosis or Parkinson’s Disease
You had a stroke within the past year to two years or have a history of strokes
You have metastatic cancer
You have kidney failure
According to the American Association for Long-Term Care Insurance (AALTCI), the best age to apply for coverage is before you reach your mid-50s. Beyond that age, your health is unlikely to improve significantly, so waiting longer will typically increase your premiums, or you may even become ineligible before acquiring a policy.Q: How do I purchase coverage?A: If you are looking to purchase long-term care insurance, you should speak with multiple insurance providers and compare their benefits, care options, and premiums. Different companies may offer the same coverage and benefits, but they can vary dramatically in price. Always ask about the insurance company’s history of rate increases, including the amount of the most recent increase.For the best chances of success when shopping for a policy, get help from a fee-only planner, who is not compensated based on your choice of coverage. Or, if you are working with a commissioned agent, consult with your Personal Family Lawyer®, who has experience in elder law, and we can review the policy terms to ensure it’s a good fit for you before you sign on the dotted line.Q: What are the most important elements in a long-term care policy?A: When meeting with an insurance provider, you must get answers to the following three questions about your policy:
How long is the elimination period before the policy begins paying benefits?
What capacities, or ADLs, must you lose before coverage kicks in?
How many years of care are covered?
These are the most important elements in a long-term care policy, and as such, they will make the biggest difference in the quality of coverage and the amount of your premiums.Q: Can I buy coverage for my parents?A: Yes, you can buy long-term care insurance for your parents. You will pay for the policy, and then have your parent(s) listed as the beneficiary. If you know you are going to be the primary caregiver for your aging parents, investing in a policy for them can help offset the expenses related to their long-term care.Furthermore, buying long-term care insurance should always be a family affair, because you are going to need your family members to advocate for you and file a claim for the policy when you need to use it. Given this, make sure your family knows what kind of policy you have, who your agent is, and how to make a claim.What’s more, you should pre-authorize the right person to speak to the insurance company on your behalf, and not just rely on a medical power of attorney. That said, you should definitely have a well-drafted, updated, and regularly reviewed medical power of attorney on file as well.Q: Once I have a policy, how often should I review my coverage?A: Once you are in your 50s, your long-term care policy should be reviewed annually to evaluate new insurance products on the market and update your policy based on your changing needs. Whatever you do, once you have a policy in place, make sure you don’t miss a premium payment. If you fail to pay, even for a short period of time, you’ll lose all of the money you invested and will have no access to the benefits when you need them.A Key Component In Your Estate PlanMeet with your Personal Family Lawyer® for guidance and support in finding the right long-term care insurance policy for your particular situation. In addition to life insurance, a long-term care insurance policy is a key component in your estate plan. When combined with the right estate planning strategies, you can rest assured that your loved ones will be protected and provided for no matter what happens to you. As your Personal Family Lawyer®, we view estate planning as much more than just planning for death, which is why we call it Life & Legacy Planning. Ultimately, it’s all about your life and the legacy you are creating by the choices you make today. Contact us today to learn more.This article is a service of Gerry Kane, Personal Family Lawyer®. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge. ]]>On Behalf of Law Offices of Gerald L. Kanehttps://www.estplan.com/?p=490342020-02-18T05:52:10Z2020-02-17T08:08:05ZThe Health Insurance Portability and Accountability Act of 1996 (HIPAA) protects the privacy of individuals concerning their health care and medical issues. However, the act also includes the ability for individuals to name agents who have rights to receive medical information if named in a HIPAA release form. LA County estate planning lawyers stress that a HIPAA Medical Release is an essential part of any estate plan.
What is a HIPAA Medical Release?
A HIPAA Medical Release is a document which allows family members or other agents to communicate with healthcare professionals and health insurance agencies regarding an individual’s medical condition. HIPAA Medical Releases can be standalone documents, or they can sometimes be included in living wills or Medical Powers of Attorney. An LA County estate planning attorney can advise you as to which form a HIPAA Medical Release should take in order to work most effectively.
What can a HIPAA Agent do?
A person named on a HIPAA Medical Release can speak with healthcare professionals and health insurance agencies on behalf of the person who signed the HIPAA Medical Release, meaning the professionals and agencies must treat the agent as if they are the person receiving the health care. The HIPAA Medical Release only gives authority to communicate with healthcare professionals and health insurance agencies; there are no decision-making powers associated with the release. A document naming a health care representative is needed in order for someone other than the individual to make health care decisions. We suggest you consult with an LA County estate planning lawyer in order to determine what medical documents you need for your individual situation and estate plan.
Who should be named on the HIPAA Medical Release?
Typically, a spouse and adult children are named on the HIPAA Medical Release, along with anyone else who may need to have information about an individual’s medical condition or who needs to speak with healthcare and health insurance professionals. Remember, a person named as an agent on a HIPAA Medical Release will be treated just like the individual who created the document – they will have access to all of that person’s personal medical information. While this is necessary for a spouse and usually adult children, others should be chosen more carefully if privacy is valued. In the case that a person does not have a spouse or children, then relatives, trusted friends, and sometimes even attorneys are named on the HIPAA Medical Release. Speak with an LA County estate planning lawyer to discuss who may be the best agents to name on your HIPAA Medical Release.
If you have any further questions about HIPAA laws or HIPAA Medical Releases, please contact our LA County will and trust lawyers at (818) 905-6088 to set up a consultation.]]>On Behalf of Law Offices of Gerald L. Kanehttps://www.estplan.com/?p=490312020-02-18T05:53:54Z2020-02-17T08:08:01ZElder abuse is a serious problem that can occur in care facilities and inside the home. The abuse is often perpetrated by professional caregivers, con artists, and sometimes even family members. Encino elder law attorneys want people to be aware of the signs of elder abuse and to know what to do if elder abuse is suspected.
Physical Abuse and Neglect
Physical abuse and neglect often go hand-in-hand when discussing elder abuse. Many seniors who are confined to a home or care facility need constant attention from caregivers, and if that care is neglected, there can be disastrous and tragic results. Loved ones should check in often and look for signs of unsanitary living conditions, issues with personal hygiene and nutrition, and untreated medical issues that cause the senior pain. Another warning sign is if a caregiver refuses to let a loved one have private visitations with the senior or refuses to let the senior talk on the phone.
Emotional Abuse
Emotional abuse is often tied into physical abuse, so it’s important to look for the issues listed above in addition to recognizing behavior from caregivers that borders on anger, threats, or control issues. Loved ones should also track any changes that are occurring in the mental state of the senior which may seem like dementia, and have a physician assess the senior’s mental state if emotional abuse is suspected. While signs of emotional abuse may not be as readily apparent as signs of physical abuse or neglect, this problem can be just as devastating to the health and welfare of a senior and needs to be addressed immediately.
Financial Abuse
One of the more common forms of elder abuse, and one of the hardest to track and recognize, is financial abuse. Financial abuse can happen in many places, either in a care facility, at home, or over the phone. Many people are familiar with credit card scams that swindle seniors out of their life savings, but new scam tactics are being developed every day, and studies show that seniors are much more susceptible to such tactics than members of other age groups. Loved ones should be on the lookout for changes in beneficiary documents, sudden changes to a will or trust, unpaid bills, items missing from the senior’s home or room at a care facility, and withdrawals from financial accounts.
If you suspect that an elder is being abused, please inform a family member, doctor, or lawyer and contact your local Adult Protective Services department. Please remember that oftentimes seniors cannot advocate for their own care, and that responsibility falls to loved ones to make sure they receive the care and dignity they deserve.]]>On Behalf of Law Offices of Gerald L. Kanehttps://www.estplan.com/?p=490292020-02-18T05:55:54Z2020-02-17T08:07:57ZAs an Encino estate lawyer, sometimes I think it’s a wise idea to step back and review basic legal planning concepts here on the blog. It’s easy to get lost in technical estate planning issues. However, there is still a large portion of people who need Estate Planning 101. For example, many people don’t understand the difference between a will and a trust. Even though they are both tools used to bequeath your property after your death, they have many differences and serve different purposes.
A will is a legal document that provides instructions and describes your intentions for how your property and assets are to be allocated upon your death. A will is written, signed, and witnessed. It can identify specific possessions and money and the people you want to leave these items/assets to. You’ll also name an Executor, which is the person who will be responsible for distributing your property and funds. If necessary, you’ll appoint a guardian to raise your child if you die or become incapacitated. After you die, the Will is then administered through the probate court. This process can take anywhere from several months to several years.
A trust, on the other hand, is a legal relationship where the trustee holds property for the benefit of him or herself or of a beneficiary. The trust describes a form of ownership that holds assets that you have chosen to include. You can name yourself as the trustee, and after you die, the trust is passed to a successor trustee. The trustee (or successor trustee) is responsible for making decisions regarding the trust assets and for distributing the trust assets after your death. Unlike a will, the property held in the trust does not go through probate.
There are several ways to set up trusts; you can make it revocable or irrevocable, for example. But, describing all of the different types of trust options would take us well beyond Estate Planning 101. The good news is that if you work with us, you won’t need an advanced degree in estate planning to have a rock-solid plan in place. We’ll walk you through our process that will help us work as a team and decide the best estate planning tools for your family.
If you are ready to put an estate plan in place to preserve your wealth for your family, be sure to contact our Encino estate planning law firm. Only an attorney that stays current with laws, rules, and regulations can help you meet the goals set forth in this article. To schedule a consultation, simply call (818) 905-6088.]]>On Behalf of Law Offices of Gerald L. Kanehttps://www.estplan.com/?p=490262020-02-18T05:58:11Z2020-02-17T08:07:52ZAs an Encino probate lawyer, I often find that people agree to become the Executor of someone’s estate without fully understanding the tasks and responsibilities involved. The work of the executor can be an overwhelming experience. Most executors take on the responsibility as a courtesy to a loved one, without investigating whether they are really prepared to fulfill the duties they have agreed to.
The funny thing is that if you are not prepared for what’s expected of you, the process actually becomes much more difficult. And, if deadlines are blown, bills go unpaid or assets not properly managed, you could be held personally liable.
So before you say “yes” to handling someone else’s affairs after they pass away, take a moment to read through the following steps that you will be taking to ensure you are ready and willing to carry them out.
First, when your loved one dies, legal documents must be filed with the Los Angeles County probate courts to start the probate process. Depending upon the complexity of the estate, you may be required to file additional documentation and paperwork that is asked of you. Once the paperwork is filed, you will wait while the court validates the will. After this happens, you will begin the work of settling the debts of the deceased as well as managing and paying their tax obligations.
After all those responsibilities have been completed, it is time to distribute the estate’s assets according to the direction of the deceased’s estate plan. Even in the best of circumstances, this process requires a significant amount of time and effort. If there are issues or problems, it could require more time and money to resolve.
Another overlooked probate issue is that you’ll be dealing directly with the heirs during this time. Many will be emotional following the loss of their loved one, some may be disgruntled about what they do (or do not) stand to inherit, and some may stand in the way of you doing your job. Honestly, the opportunities for drama and fighting after the loss of a loved one are endless. If you would rather not deal with the “people” side of managing the estate, then the role of an executor is probably not for you.
Finally, don’t forget that as an executor, you can make the choice to bring on a probate attorney to help you oversee the process of closing out the estate. A probate attorney can help you make decisions, take care of court dates and filings and manage the legal side of things. This will likely give you the peace of mind you are looking for as you retain the right to stay in control, but you have professional assistance in order to avoid mistakes and liabilities, while gaining extra time to spend with your grieving family. If you’d like more information on how our Encino probate lawyers may be able to help you through the process, contact us at (818) 905-6088.]]>On Behalf of Law Offices of Gerald L. Kanehttps://www.estplan.com/?p=490072020-02-18T06:00:29Z2020-02-17T08:07:26ZSpecial needs lawyers in Encino always look for the most effective ways to protect their clients’ assets, while at the same time ensuring that they get the level of care needed in order to live fulfilling lives. One of the ways Encino special needs lawyers do this is through the use of Medi-Cal Special Needs Trusts. These trusts are designed to allow individuals who need a high level of care to qualify for Medi-Cal, even if they may be over the allowable asset limit.
Medi-Cal Special Needs Trusts are used to provide for the supplemental needs of the beneficiary of the trust, meaning that the funds in the trust can be spent on things like clothing, housewares and furnishings, education, and most other things that are not directly related to the individual’s healthcare. The money put into a Medi-Cal Special Needs Trust will not disqualify the beneficiary or cause the beneficiary to be penalized by Medi-Cal as long as the trust is designed properly according to state and federal Medicaid statutes.
In order for a Medi-Cal Special Needs Trust to effectively work, it must be properly established by a qualified and experienced special needs lawyer. If the trust is set up improperly, it could cause the intended beneficiary to become ineligible for benefits and could put their assets at risk. Encino special needs attorneys urge clients who are considering setting up a Medi-Cal Special Needs Trusts to consult with them first to make sure their situation matches the need for one, and also so they don’t run the risk of having their beneficiary become disqualified from receiving benefits.
In addition, the beneficiary of a Medi-Cal Special Needs Trust must meet certain conditions in order to qualify for protection under the trust. Typically, these qualifications are:
Must be disabled according to Medi-Cal guidelines and under the age of 65;
The primary beneficiary of the trust must be California, as it is the one paying out benefits;
The trust has to be created by a guardian or other family members such as parents or grandparents, or in extreme cases, by a court;
The trust funds must only be used for the benefit of the individual receiving benefits from Medi-Cal;
The funds in the trust must consist of the beneficiary’s own assets and no one else’s, although assets left to the beneficiary as inheritance or received as part of a court settlement may be used.
The use of a Medi-Cal Special Needs Trust can be a huge help for individuals with special needs, but it is important that strict guidelines are followed when establishing the trust. If you have questions about Medi-Cal Special Needs Trusts, or you would like to set up a trust for a loved one with special needs, please contact us at (818) 905-6088 to set up a consultation.]]>On Behalf of Law Offices of Gerald L. Kanehttps://www.estplan.com/?p=489682020-02-18T05:10:06Z2019-02-28T08:00:00ZTrustees of special needs trusts shoulder an incredible amount of responsibility. In addition to providing care for the individual with special needs, they must also make sure the assets in the trust are spent wisely and will not disqualify the person from any benefits they may be receiving.
One issue that often comes up is whether or not special needs trust funds can be spent on food or housing, which also includes utility expenses like heat, water, and electricity. While trust money can be spent on these things, it may reduce the amount the person with special needs receives in Supplemental Security Income benefits or affect Medicaid eligibility. Considered to be a type of income called in-kind support and maintenance (ISM), the specific amount of money spent on food and housing can reduce the Supplemental Security Income benefits up to $270. Please note that $270 is the current deduction amount and may change to account for inflation. The deduction amount is calculated as one-third of the federal portion of the Supplemental Security Income grant, which is currently $750, plus an additional $20.
It’s important to have a good understanding of the person’s finances, including the benefits received and money in the special needs trust, before making decisions on how to pay for these various expenses. For instance, if the person with special needs received less than $270 from Supplemental Security Income due to other forms of income, the ISM could cost them their Supplemental Security Income eligibility. Since Medi-Cal eligibility can also be affected, it’s extremely important to know if the person can be disqualified from Medi-Cal benefits, which could be disastrous.
An Encino lawyer experienced with special needs laws can help you determine the right strategy to manage the trust finances while keeping all benefits in place. The Encino special needs lawyer can even help determine when it makes more sense to use trust funds to pay for food and housing if the impact on benefits is negligible. As you know, making sure the person with special needs receives the best care and quality of life possible is of utmost importance, which is why it’s so important to have the best information available when making choices concerning their care, income, and benefits.
If you would like to get more information about special needs trusts, or if you’re the trustee of a special needs trust and you’d like more information on how the trust may be managed, please set up an appointment at our Encino estate and elder law office by calling (818) 905-6088.]]>On Behalf of Law Offices of Gerald L. Kanehttps://www.estplan.com/?p=489712020-02-18T05:10:06Z2019-02-21T08:00:00ZMedi-Cal is a needs-based program meant to help those without considerable resources access medical care and benefits. Since it is needs-based, there are significant asset and income limits attached to eligibility, which can easily lead to a disqualification from receiving benefits if the assets are not monitored closely. However, there are several ways to prevent a Medi-Cal eligibility disqualification through the use of trusts. For the purposes of this article, we’ll focus on how an irrevocable trust can help if a person expects to receive Medi-Cal benefits in the future and a First-Party Special Needs Trust if a person is ready to receive Medi-Cal benefits.
Irrevocable Trust
If it’s believed that Medi-Cal will be in a person’s future and that they may run into difficulties due to their amount of assets, an irrevocable trust designed specifically for Medi-Cal eligibility may be the answer. This type of trust must be established and funded at least 5 years before Medi-Cal is needed, which can be tricky since the future may be hard to predict. Once the assets are transferred to the irrevocable trust, they are not technically owned by the person and are not considered as countable assets for Medi-Cal, though soon under anticipated law changes in California, the person will be penalized if the transfer happened within those 5 years. While the person is alive, the trust funds can be used for their benefit as directed by the trustee, and once the person passes away, the funds may go to whomever is listed as a beneficiary of the trust.
First-Party Special Needs Trust
If a person is ready to receive Medi-Cal benefits but is over the asset limit, those assets can be placed in a First-Party Special Needs Trust. There are several guidelines established by the state of California to ensure that the trust is set up correctly and the funds are used only for the benefit of the person receiving Medi-Cal. The basics of trust are that only the Medi-Cal beneficiary’s money can be used, the beneficiary must be under the age of 65 and disabled, and that the state is named as the primary beneficiary of any trust assets left behind after the person passes away. Since there are so many guidelines for this trust, it’s important to speak with an experienced California elder and special needs lawyer attorney to find out if this type of trust will be the best fit for your situation.
If you would like to get more information about Medi-Cal eligibility through the use of trusts, or if you’re currently in the process of getting a loved one qualified for Medi-Cal and are running into issues, please set up an appointment at our San Fernando Valley elder law office by calling (818) 905-6088.]]>On Behalf of Law Offices of Gerald L. Kanehttps://www.estplan.com/?p=489742020-02-18T05:10:06Z2019-02-14T08:00:00ZDigital assets and what happens to them after you pass away are fairly new concerns for people. However, this issue must be given significant thought, since so much of our lives are impacted by the digital age. To help alleviate these concerns and give more control to those managing estates of the recently incapacitated or deceased, Congress passed The Revised Fiduciary Access to Digital Assets Act, otherwise known as RUFADAA. This act allows fiduciaries (executors, trustees, and agents working with a Power of Attorney) to manage digital accounts owned by others, while at the same time affording the account owner a level of privacy.
RUFADAA addresses the needs of fiduciaries to manage various digital assets, most of which we wouldn’t even think of until it’s too late, like online utility and bill pay accounts, social media, and online subscriptions. This law faced significant logistical hurdles, however, since the digital age is still fairly recent. Questions were raised regarding legal rights to another’s digital assets in the event of death or incapacitation, while password protection placed obstacles in front of fiduciaries when trying to access and manage these accounts.
The law has seen significant revisions since it was first introduced in 2014, as many digital providers expressed reservations over legal liabilities that could arise from fiduciaries accessing others’ private accounts. As of now, the authority of the fiduciary over the digital assets has been narrowed and provisions were made to address privacy concerns, such as the need to gain explicit consent from a deceased or incapacitated person beforehand, an explanation from the fiduciary to the probate court about why access to digital assets is necessary, and the ability for digital service providers to limit their compliance to “reasonably necessary” assets.
California enacted RUFADAA in 2016, so it is still a very new law in the grand scheme of things. The best way to avoid any issues concerning your digital assets is to consult with a lawyer who can help you make a plan with your expected fiduciaries concerning your digital assets.
If you would like to get more information about Revised Fiduciary Access to Digital Assets Act and how it governs digital assets in California, or if you’re currently involved in a probate matter and facing issues with digital assets, please set up an appointment at our Encino elder law office by calling (818) 905-6088.]]>On Behalf of Law Offices of Gerald L. Kanehttps://www.estplan.com/?p=489772020-02-18T05:10:06Z2019-02-07T08:00:00ZA concern for many adult children with an aging parent is whether or not they can still handle money and make sound choices regarding their financial affairs. There are many reasons why an elderly parent would have trouble handling their own finances, usually due to some physical or mental ailment or the loss of a spouse who normally handled the finances, though there are other times when the parent just decides they would rather have someone else handle financial decisions, so they may focus on other things.
The consequences of an elderly parent facing financial trouble can range from inconvenient, like having the utilities shut off for non-payment, to dangerous, like losing a home or apartment due to unpaid mortgage, taxes, or rent.
Perhaps the most daunting aspect of this whole matter is speaking with your parent about their finances. Many will insist they can still do everything they did when they were younger, as they fear a loss of independence or feeling like they are no longer in total control of their own lives. This is why it’s important to have a plan in place before your parent even needs help. Speak with them while they’re still in control of their finances to let them know you’re thinking of the future and want to help and try to determine together the best way to avoid financial difficulties. This is usually the point where an experienced LA County elder law attorney can help.
Oftentimes, the elder law attorney will suggest setting up a trust that names an adult child as a successor trustee in conjunction with a Power of Attorney as a way for the adult child to assist with the finances. These documents give the adult child the authority to make financial decisions for trust funds and all other solely-owned assets, while also providing a level of fiduciary responsibility that must be followed. This added responsibility may ease your parent’s mind of any concerns they have that their money will be used improperly, since there are legal consequences if that were to happen.
If you would like to learn more about the best way to help your elderly parent manage money, or if your parent is currently having financial problems and you’d like to explore solutions for helping them, please set up an appointment at our Los Angeles County elder law office by calling (818) 905-6088.]]>