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Who is a Qualified Elder Law Attorney? | Chicagoland Estate Planning & Eldercare Attorney-CPA Anthony B. Ferraro

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January 22, 2014

- Chicagoland Elder Law, Eldercare Attorney

Today I want to give you a brief lesson on what you need to know when selecting an elder law attorney.  Remember that an elder law attorney’s practice focuses on the areas of estate and longevity planning, Medicaid, special needs trusts, and VA benefits for those over the age of 65. Unfortunately, you will see general practitioners who also identify themselves as elder law attorneys.  The fact of the matter is, drafting simple wills and trusts DOES NOT make an attorney an elder law attorney.  Sure, wills and trusts are certainly part of the elder law process at times, but elder law consists of so much more than that. What is not often communicated to the public is that wills really only control what happens after you die.  Therefore, today’s seniors really need both an estate and longevity plan.  A longevity plan will allow for seniors’ families to know what their wishes are in the event that they become incapacitated before they die. A traditional estate plan (a.k.a. death plan) is designed to do three things:
  1. Minimize estate taxes
  2. Avoid probate court
  3. Distribute assets from the deceased person to his or her heirs
Elder law, on the other hand, is death planning plus long-term disability and care planning. I call all of this together “longevity planning.” In order to help yourself identify an  elder law attorney, ask the following questions:
  1. How many Medicaid applications does the firm do in a year?
  2. How many veterans does the firm assist with VA aid and attendance benefits per year?
  3. How many Elder Law oriented estate plans has the firm done this year?
  4. Are your powers of attorney documents tailored to senior issues?
The bottom line is, because the issues are so complex, you deserve to work with somebody who is experienced in elder law, not just estate planning. -Anthony B. Ferraro
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A Warning on VA Benefits | Chicagoland Estate Planning & Eldercare Attorney-CPA Anthony B. Ferraro

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January 17, 2014

- Chicagoland Elder Law, Estate Planning

Because it is illegal to charge veterans any fees for filing VA Benefit claims, there are few attorneys out there who know anything about these kinds of benefits.  Veterans Service Organizations (VSOs) are very knowledgeable on this subject and are eager to help, but they are all too often hard-pressed to have the resources to handle so many veterans.  Therefore, it can unfortunately be difficult for a veteran and/or his or her surviving spouse to get the sufficient help that they need to file a claim. The only other common source for information regarding VA Benefits are annuity salespeople, who sometimes offer to consult with veterans and/or their families regarding VA Benefits for free.  This offer usually consists of a consultation for the veteran to meet the asset and income limitations of the VA Benefit by buying an annuity from that salesperson, and the veteran giving away his or her assets to his or her children. In reality though, annuity salespeople are often being paid by an annuity company to sell a financial product to the veteran.  Sometimes an annuity can turn out to be a great thing for a veteran and his or her family, but other times an annuity can end up being a very poor financial decision.  In order to avoid making a poor financial decision, your first step in the VA Benefit process should be to get advice from a VA accredited attorney BEFORE transferring any assets and/or purchasing an annuity. Remember, the VA Benefit process does not have to be stressful if you follow the correct steps. -Anthony B. Ferraro
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Medicare v. Medicaid | Chicagoland Estate Planning & Eldercare Attorney-CPA Anthony B. Ferraro

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January 16, 2014

- Chicagoland Elder Law

A brief reminder on the basic logistics of Medicare and Medicaid, and the differences between them: Medicare and Medicaid sound similar, but are very different programs.  Often times, people tend to confuse one with the other.  Medicare provides healthcare benefits for people who are older than 65 years old, blind, or disabled; Medicaid provides medical benefits for the impoverished. Here’s a quick rundown on the differences between Medicare and Medicaid: Medicare:
    • Health insurance for seniors 65 and older
    • Federally controlled, nationwide uniform application
    • Covers no more than 100 days of nursing home care
    • Covers primary hospital care and related medical services
Medicaid:
    • Needs-based health care program
    • Differs state by state with different regulations in each part of the application process
    • Covers long-term care costs
    • Covers medication costs
    • Must meet income and asset limits, be 65 or older, disabled, or blind in order to be considered eligible
Don’t be caught off guard by the differences in these two programs. -Anthony B. Ferraro
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It’s Time to Update Your Estate Plan | Chicagoland Estate Planning & Elder Law Attorney-CPA Anthony B. Ferraro

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January 9, 2014

- Chicagoland Elder Law, Estate Planning, Estate Planning Attorney

Today, the world is quickly changing; medical care can be both impersonal and expensive.  But one area that has not changed with the times is traditional estate planning.  Traditional estate plans are designed to focus on just a couple of things and when creating them, most people tend to take the easy route.  Often times, people are in good health and think, “There’s nothing wrong with us now; we want our estate plan to be very simple.”  In those cases, their estate plans only really focus on who will get what when they die. The truth is, most of us are not going to die while we’re in good health.  As we venture into old age, many of us will, unfortunately, develop long-term illnesses and need specific care.  According to AARP, 70% of individuals aged 65 and older will spend part of their life living in a long term care facility.  The cost of long term care and Medicaid planning are probably not things that are included in the will or living trust you already have.  So shouldn’t we consider this when updating our estate plans? While the traditional estate plan details concerning who gets what when you die are important, it is equally, if not more important, to consider what could happen to you before you die.. -Anthony B. Ferraro
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The 35%Estate Tax is Peanuts! How About the 100% “Medicaid Tax”?|Chicagoland Elder Law Attorney Anthony B. Ferraro

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February 18, 2013

- Chicagoland Elder Law, Medicaid spend down planning, senior estate planning

Why has everybody been so concerned about the Estate tax? For years,  clients of our office have  been very concerned about the Estate tax. I have reassured many clients over the last couple of  years that the Estate tax will not impact you unless you have more than $5,000,000 ($10,000,000 if you are married). Now contrast that to the cost of what I call the “Medicaid tax”. The “Medicaid tax” is  the government’s  requirement that you  spend your assets down to $2,000 (as a single person) before you get any Medicaid  help for your  custodial care or long- term care, either in a Supportive Living Facility (similar to an assisted living facility) or an Intermediate or Skilled Nursing Facility. This terrible governmental  requirement to spend down to $2000 is what I refer to as a 100% Medicaid tax. Because, effectively you have to be down to zero assets before you get any assistance with maladies that require custodial care, such as dementia, Alzheimer’s, Parkinson’s, MS, ALS, COPD,  muscular dystrophy, etc. Therefore, I politely ask my clients to “wake up and smell the coffee”. Quit obsessing over the effect of the Estate tax. It will not affect most of us. On the other hand, consider the government-mandated Medicaid spend down of your assets to paltry $2,000 –  this will affect most of us. Why will this affect most of us? Because, due to the advances of medical science,  most of us are living much longer (thankfully).  However, while we are living much longer, we also need more care as we age. Couple this with the fact that the average cost of a Supportive Living Facility (SLF) is somewhere around $4,000 a month and the average cost of an Intermediate or Skilled Nursing Facility is $6,000 to $10,000 a month, and you have a “perfect storm” scenario that can lead to a Medicaid spend down of your assets to a measley $2,000. And that $2000 has to last you for the rest of your life. This is, in my view, the equivalent of a 100% “Medicaid tax“. How treacherous is it to be spent down to $2000? Let me give you an example. We recently had a client at our office that needed  abscessed teeth to be removed. Our client was 85 years of age and spent down to $2000. She was told that the only available Medicaid dentist  in Cook County would take her, but it would require her to wait 6 to 8 hours in the waiting room. My client had moderate to severe dementia and could not last 6 to 8 hours in a waiting room. It would have been nice if she had come to me earlier so I could set aside a rainy day fund for her. A Solution: This would be a legal and ethical  re-allocation of her assets so that she could have funds for things like teeth extraction,  but still qualify for Medicaid benefits. We had  another client that required hearing aids. Hearing aids cost $6,000.How do you buy them when you’re spent down to $2,000? So we inform our clients that they should not be concerned about the Estate tax unless they are very, very wealthy. The more likely severe financial impact that will hit most of our clients comes from the devastating cost of long-term care. Clients have to understand that they must  plan while they still can. Unfortunately, this window can sometimes close very quickly due to the onset of a stroke, heart attack, accident, or some other catastrophic disability. At The Law Offices of Anthony B. Ferraro, LLC, we are Attorneys and CPAs. We have been serving clients in matters of Medicaid asset protection, long-term care planning, traditional estate planning, senior estate planning, estate tax planning, and estate and trust administration for a combined 45 years. Today’s environment in which our seniors are asked to fend for themselves and protect themselves and loved ones from Medicaid spend down, taxes, the cost of home care, healthcare, long-term care,  creditors, predators, divorcing spouses, and illness, is very complicated to most of our clients. But we deal with this every day. And we are just a phone call away. Consider making the call to our office while you are still are able to plan. Let us provided you with service and guidance that will be essential for your well-being and that of your loved ones. Let us give you options… So you don’t go broke the aging process.     Anthony B. Ferraro Attorney-MSTax-CPA The Law Offices of Anthony B. Ferraro, LLC Attorneys & CPAs The Elder Law, Estate & Trust and Asset Protection Law Firm 5600 North River Rd. Rosemont, Illinois 60018  847-292-1220 www.ABFerraroLaw.com
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