Elder Law Attorney

Planning for Medical Expenses During Retirement

Published on: November 18, 2019 | By McCulloch & Miller, PLLC

The unknown about spending in retirement is not just whether it will be higher or lower, but when during the course of retirement, you’ll be spending more or less. If you downsize, housing costs will decrease, but if you travel more, recreational spending will rise.

According to a recent article from Investopedia, “How to Plan for Medical Expenses in Retirement,” healthcare is likely to be the biggest expense in retirement. A survey from Fidelity Investments found that a 65-year-old newly retired couple should budget about $285,000 for medical expenses in retirement. It is better to have the money set aside than to be surprised by the cost. That number also does not include long-term care. Depending on where you live, those costs can range from $18,720 for adult day care services to $100,375 for a private room in a nursing home.

Despite saving and preparing for retirement their entire lives, many retirees aren't mentally or financially prepared for these types of expenses. A survey by HSA Bank found that 67% of adults 65 and older thought that they’d need less than $100,000 for healthcare. However, Fidelity calculated that males 65 and older will need $133,000—and females, $147,000—to pay for healthcare in retirement.

What Will Boomers Do When They Need Long-Term Care?

Published on: October 25, 2019 | By McCulloch & Miller, PLLC

A generation seems to be waking up to the concept that they are likely to need to care for a spouse or a family member, and they’re taking it seriously.

A study from Bankers Life Center for a Secure Retirement reported that 90% of baby boomers surveyed understand that they will need to make significant lifestyle changes as part of caring for a loved one. Not only are they aware of this as a new role, but according to Think Advisor’s article, “Long-Term Caregiving Realities Hit Home for Boomers” they are willing to take a number of steps, including:

Cut spending: 66%

How Advance Directives Are Used When the Diagnosis is Dementia

Published on: July 26, 2019 | By McCulloch & Miller, PLLC

The progressive nature of dementia makes advance directives necessary to manage the health care needs of the patient.

When adult children suspect that one or both of their parents may be suffering from the early symptoms of dementia, it’s a good idea to sit down with an experienced elder care attorney to start planning for the legal issues that will follow, says The Roanoke Times in the article “What to do in absence of advance directive.” If the parent is unwilling to cooperate, the attorney will be able to refer the family to a social worker or other professional who may be able to assist. In addition, a geriatric evaluation consultation with a board-certified geriatrician will help to clarify the medical issues.

It’s wise for anyone older than 55 to have advance directives in place, should they become incapacitated so a trusted agent can fulfill the patient’s wishes in a dignified manner. Think ahead and plan ahead.

Basics of a Special Needs Trust

Published on: July 18, 2019 | By McCulloch & Miller, PLLC

Parents of special needs children need to be especially proactive about planning for the future. Their planning should start with an estate plan, that includes a Special Needs Trust.

It’s one of the hardest things for any parent to think about, but for special needs families, planning for the child’s needs when the parents have passed, is particularly important. Trying to determine how much money the child will need while the parents are living and after they have died is complicated.

A recent Kiplinger’s article asks “How Much Should Go into Your Special Needs Trust?” As the article explains, a special needs trust, when properly established and managed, lets someone with a disability continue getting certain public benefits.

Medicare Doesn’t Cover Everything

Published on: July 8, 2019 | By McCulloch & Miller, PLLC

Life before Medicare was a real struggle for seniors without healthcare coverage. Today’s program still works wonders, but it doesn’t cover everything.

Once you turn 65, you are eligible to take part in the Medicare system of healthcare. It can be a little confusing to apply, and sometimes a little hard to figure out what it will and won’t cover. Traditional Medicare, also known as “Original Medicare,” should cover most of your medical expenses through Medicare Part A and Part B. Part A is all about hospital insurance: inpatient stays, skilled nursing facilities for some costs, surgery, hospice care and some home health care. Part B helps to pay for things like some medical equipment and supplies, some preventive services, doctor visits and outpatient care. Three months before you reach age 65, you need to sign up for Medicare.

Kiplinger’s article, “7 Things Medicare Doesn't Cover,” takes a closer look at what isn't covered by Medicare, plus some information about supplemental insurance policies and strategies that can help cover the additional costs, so you don't end up with unanticipated medical bills in retirement.

How Does a Medicaid Annuity Work?

Published on: July 1, 2019 | By McCulloch & Miller, PLLC

When one spouse needs nursing home care and the other is healthy, there are several approaches that can be taken to securing Medicaid coverage. An elder law estate planning attorney should be contacted, since every situation is different. For some couples, a Medicaid-compliant annuity may be a solution.

What happens when one person needs long-term nursing home care, but does not have long-term care insurance and the family cannot afford to pay out of pocket? Applying for Medicaid is difficult if you have too much money to qualify, but not enough to allow the healthy spouse to afford to pay their bills.

Doing a “Medicaid spend down” requires the person to become broke, before they are eligible. What happens to the spouse’s lifestyle? One solution is a Medicaid Annuity, as described in U.S. News and World Report’s recent article, “What Is a Medicaid Annuity?”

Should a Reverse Mortgage Be Part of My Retirement Plan?

Published on: June 5, 2019 | By McCulloch & Miller, PLLC

If you’ve got a fair amount of equity in your home and no other way to cover a healthcare cost or if the bills are coming in faster than your retirement accounts can manage, it might be time to consider a reverse mortgage.

For retirees in a financial tight spot, a home equity line of credit or borrowing against an existing home equity line of credit can provide a short-term solution. If you are at least 62 with a home that is not heavily mortgaged, a reverse mortgage is another option.

A revere mortgage gives you tax-free cash. No repayments are due, until you die or move out of the house.

Boomers Should Prepare For Life

Published on: April 29, 2019 | By McCulloch & Miller, PLLC

Boomers are more willing to plan their own funerals, than to prepare for an extended stay in a nursing home. Both are inevitable events for most of us.

With more than 10,000 people celebrating their 65^th birthday every day in America, and the startling statistic that 70% of us will need long-term care at some point during our lifetimes, it would make sense that more of us would be planning for long-term care. And yet…boomers seem to be more comfortable making plans for a memorial service, than they do for a nursing home visit. The cost of long-term care is big, and it’s not covered by Medicare. Surprised? So are families, when the bill comes.

The Motley Fool’s recent article, “Baby Boomers Are More Prepared for Death Than Life,” says most baby boomers are either unprepared or haven't planned for a long-term care expense, according to a Bankers Life survey of 1,500 middle-income Americans aged 54 to 72. The results show that baby boomers were more likely to plan for their own death, than to have a long-term care plan. About 81% made some kind of funeral arrangements for when they pass away, but just 32% have a plan for how they’ll get care in retirement. The lack of long-term care planning is a significant issue, when you compound this with the harm that such a huge unexpected expense has on a person’s retirement savings, especially in cases where a nest egg is small to begin with.

Special Needs Planning With Special Needs Trusts

Published on: April 11, 2019 | By McCulloch & Miller, PLLC

It is important to understand the basics of special needs planning, so that you can plan for your child’s future. There are many issues to address, but an experienced Houston estate planning professional will be able to help.

Special needs planning is challenging. It’s important to have a strong team to work with. An estate planning attorney with experience in helping special needs families will be able to guide you through the process. They will also likely have access to other professionals to help.

A recent Forbes article, “Special Needs Kids Require Specialized Estate Planning,” says that if you have a child with special needs, it’s critical that you look at your planning options with your estate planning attorney and discuss your child’s health, capabilities and prognosis. You can then customize a plan that works for your child, with as much flexibility as possible.

Iowa Senator Sponsors Elder Abuse Prevention and Prosecution Act

Published on: March 27, 2019 | By McCulloch & Miller, PLLC

“Iowa Senator Charles Grassley is among those in Congress calling for a crackdown on elder abuse crimes in the country.”

The witnesses of loved ones affected by elder abuse incidents testified at a recent Senate Finance Committee hearing in Washington.

Those witnesses included Pat Blank, longtime Iowa Public Radio host, and past winner of the Iowa Broadcast News Association's Jack Shelley Award. Blank's mother, Virginia Olthoff, died in an Iowa nursing home in February 2018, because of alleged neglect.