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You May Need More Than Just Traditional Estate Planning! | Chicagoland Estate, Trust & Probate Attorney & Elderlaw Attorney-CPA, Anthony B. Ferraro

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January 23, 2014

- Chicagoland Elder Law, Estate Planning, Estate Planning Attorney

Why is it  important to stray from traditional estate planning? Because many professionals have been trained to prepare estate plans by using the “death plan” mentality. Also, since the world today is rapidly changing, doesn’t that mean our estate plans should too? Most people today tend to create “Sweetheart” wills at the suggestion their advisors. In this case, the attorney will ask you a couple of questions like: your name, your loved one’s name, and who you want to leave things too when you die. Today this is overly simplistic. What is most important is that people create wills that follow the “death” rules of estate planning, BUT also will address what will happen if you have a long-term illness before your death. Long term care requirements dramatically change both your wills, trusts and powers of attorney and your course of action. Therefore, you must address long term care issues. -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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Why Estate Planning is Not a Do-It Yourself Project! | Chicago Estate Planning & Elderlaw Attorney-CPA, Anthony B. Ferraro

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January 15, 2014

- Chicago Elder Law, Estate Planning, Estate Planning Attorney

DO NOT CREATE YOUR OWN ESTATE PLAN. With today’s technology, there are many programs that allow us to create quick and cheap estate plans. Considering how busy the majority of us currently are, that sounds like a dream come true.  WRONG. The truth is, if you do not communicate with an Elder Law & Estate Planning attorney when creating your estate plan, you are only doing yourself a disservice.  In fact, you are potentially risking losing everything. The world of Elder Law is very complicated.  There is a lot of lingo and terminology that takes years of practice to fully understand.  The word income, for example, has a completely different meaning when it comes to different areas of the law.  So, if you do not understand Elder Law, how would you even begin to approach assessing your income when it comes to your estate plan?  If you attempt to create your own estate plan, the simplest misunderstanding or forgotten detail can cost you thousands of dollars, if not more.  The bottom line is, the only way to ensure your safety is to create an estate plan with an Elder Law & Estate Planning  attorney. You wouldn’t trust somebody without a medical degree to operate on you.  Why would you trust anybody but an Elder Law &  Estate Planning attorney to handle your estate plan? -Anthony B. Ferraro
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Should Your Loved One with Alzheimer’s Still be Driving? | Illinois Estate Planning & Eldercare Attorney-CPA Anthony B. Ferraro

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January 14, 2014

- Alzheimer's Care, Estate Planning

One of the dilemmas a caregiver for someone with Alzheimer’s faces is whether or not they should continue to let their loved one drive.  No longer allowing your loved one to drive can lead your loved one to a feeling of defeat and taking away their keys can mean the loss of your loved one’s independence; however,  you must balance that loss with the safety of others on the road. An issue that many caregivers face surrounding the driving issue is their loved one’s insistence that there is no reason why they can no longer operate a vehicle.  Even if you get the doctor to insist to the patient that they should no longer drive, due to the memory loss, the patient may completely forget what the doctor told them.  So, you will find yourself in a seemingly never ending cycle of your loved one insisting on driving and you telling them no. In this case, the best thing to do is change the topic of conversation when the driving topic is brought up.  Diverting to a lighter topic of conversation by saying something like, “What do you want for dinner tonight?” may feel odd at first, like you’re ignoring your loved one, but the truth is, switching to a lighter topic of conversation can be a great stress reliever for both you and your loved one, even if it is only for a brief moment. Changing to a lighter topic should not take away from the overall seriousness of the driving issue, but for the time being, it provides some relief and you both can move forward. It is important to realize that driving is one of the most challenging issues surrounding Alzheimer’s today.  Helpful answers to this issue can come from the Alzheimer’s resource center at abferrarolaw.com/senior-resource-kits/alzheimers-resource-kit/. -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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What is the difference between guardianship and power of attorney? | Chicago Elder Law Attorney Anthony B. Ferraro

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August 30, 2012

- Blog, Elder Law Articles, Estate Planning, Guardianships

Guardianship is a legal relationship where a court gives someone (the guardian) the power to make personal decisions for another (the ward). The proceedings are started by a family member or friend who initiates a petition in the circuit court in the county where the individual resides. A licensed physician must conduct a medical examination in order to establish the individual’s condition. It is the court of law that then determines whether the individual is able to meet the essential requirements for his or her health and safety, or not. If the individual can’t, the court appoints a guardian to make personal decisions for that person. The guardian — unless limited by the court — has the same rights, powers and duties over his ward as parents do over their minor children. The guardian must report to the court annually. A power of attorney is a legal document where one person (the principal) designates another person (the agent) to act on his or her behalf, either for financial or healthcare decisions. A conservatorship is a legal relationship whereby a court gives a person (the conservator) the power to make financial decisions for another (the protectee). Court proceedings here are very similar to those of a guardianship, except the court of law determines whether an individual lacks the capacity to manage his or her financial affairs. If this is the case, the court appoints a conservator to make financial decisions for the person. Often, the court will appoint the same person to act as guardian and conservator for the individual. Just as with the guardianship, the conservator must report to the court annually. Powers of attorney for healthcare and property/financial decisions are relatively inexpensive and a private way to determine which family member or friend will have the legal authority to carry out your wishes if you can no longer speak or act for yourself. You must consider that if you do not have powers of attorney, or if the papers for one are not drafted properly, your loved ones may later face court proceedings and court supervised guardianship and/or conservatorship, if something happens to you. A court proceeding is not only costly, but the person who ultimately is appointed as your guardian/conservator might not be someone whom you would have chosen for these sensitive decisions.
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Do I need a lawyer to draft a durable power of attorney for property/financial decisions? | Chicago Long-Term Care Planning Attorney Anthony B. Ferraro

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August 29, 2012

- Blog, Elder Law Articles, Estate Planning, Guardianships

A durable general power of attorney for property/financial decisions allows a person to plan for care and control of property in the event he or she becomes incapacitated. It is a legal document where an individual (the principal) authorizes another (the agent) to act on the former’s behalf for financial decisions. Powers of attorney are the single most important documents to put in place so a family member or trusted friend will have the legal authority to carry out your wishes if you can no longer speak or act for yourself. If something happens where you become unable to make decisions and you don’t have a power of attorney, your family might later get tied up with court proceedings and court supervised guardianship and/or conservatorship. You don’t necessarily need a lawyer to draft the powers of attorney, but you have to be careful. Without the proper, precise wording, your agent might not be able to work with some of the issues important to you. While some people buy a “form document” power of attorney from an office supply store or download one from the Internet, these documents might not address certain things. They can, however, legally authorize someone to act on another’s behalf. But, for example, the law states that your agent cannot handle certain matters unless specific working in the document empowers him or her to do so. Things that are covered in this manner include the power to make gifts on your behalf and the power to remove and/or add assets to a trust.  Laws vary from state to state, so check to see if a form document addresses key issues you want covered. All of these powers can be vital in planning for and around Alzheimer’s care. That’s why it’s so important to complete documents for them now, while your loved one still has the mental capacity to do so. Otherwise, it could quickly become too late, as mental and cognitive abilities decline.
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What can you explain about advance directives? | Chicago, Illinois Elder Law Attorney Anthony B. Ferraro

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August 28, 2012

- Blog, Elder Law Articles, Estate Planning

An advance directive is a form of direction that allows a person to express healthcare preferences in the case that person becomes unable to make or communicate his or her own decisions. Advance directives include a host of options, such as power of attorney for healthcare decisions, living wills and informal directives people make in letters, conversations and conduct. Any advance directive must be signed while a person still has approved mental capacity to sign legal documents. All people have a constitutional right to refuse any medical treatment, including ventilators and feeding tubes. This was determined by a Supreme Court decision called Cruzan et ux v. Director, Missouri Department of Health. There are also state laws that authorize an individual to name a person to make healthcare decisions for when he or she is unable to do so himself or herself. Advance directives are intended to ensure that a person’s wishes are known — and followed. Among other things, they allow a person to state wishes regarding the potential use of life-prolonging procedures. The necessary documents will be most helpful to survivors if wishes are discussed ahead of time with family members, friends and healthcare providers as part of advance care planning. The most common healthcare directive is the Power of Attorney for Health Care Decisions. It allows you to appoint a person to make healthcare decisions if you are incapacitated, and it also allows one to state wishes about issues such as life support and organ donation. The document would go into effect only when the creator of it cannot make or communicate decisions for himself or herself. When a person completes an advance directive, copies of it should be given to corresponding physicians, family members, clergy, attorneys, friends and other appropriate people. The details of the directive should be discussed. Whenever the person is hospitalized, a copy should accompany him or her. The person also should ask the doctor to make it a part of the permanent medical record. Contrary to what some might believe, an advance directive is valid in any state. However, because there are state-to-state differences, it is recommended that people have documents drawn up, witnessed and notarized in the state where they live. Advance directives then stay in effect until the creator’s death, unless that person revokes it ahead of then.
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How will we know when it’s appropriate to move my dad from adult day care to a nursing home, or an assisted living facility? . | Chicago Long-Term Care Planning Attorney Anthony B. Ferraro

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July 26, 2012

- Alzheimer's Care, Blog, Elder Law Articles, Estate Planning, Medicaid and Paying for Nursing Home Care

The answer is simple: When you no longer can care for him at home. Adult day care is just a day service, so it occupies only part of the time. Care at home is still needed for nights and weekends. There are some adult care centers that offer evening and weekend services, but often it is not enough. Some people “package” services from a home care agency with the time spent at adult day care. In addition, a home care agency can assist with evening and weekend care to reduce the strain on you, and keep your father at home longer. But as you can see, that takes quite a bit of coordination, and still a fair amount of resources, to do properly. Everyone’s situation is different and everyone has a different threshold, so you have to figure out what is appropriate for you and your loved one. It is time to consider a nursing home or assisted living facility if you are feeling overwhelmed and the quality of life at home has fallen. You need to remember that it isn’t fair to either of you if your time with your father is so strained it diminishes your quality of life. If he were to go to an eldercare facility, your time together would likely be decreased, but then your time together could be that much more focused on doing things you like together, and in a lower stress environment. Some assisted living facilities have staff members who are trained and equipped to work with Alzheimer’s residents. But many do not. You must research any long-term care operator’s limitations before making a decision. Some will accept Alzheimer’s residents until they become incontinent or require some other type of skilled care. In that case, you must consider what an extra move might mean to your father’s well being and sense of orientation. This is a decision that you, as primary caregiver, must make. Everyone has different limitations and goals. When you know you have reached your limit, make the most appropriate, effective decision for everyone involved.  Realize you have done your best and that that is good enough. Let go of any guilt, for it can only destroy you.  For more information about Alzheimer`s, click here for our Resource Kit.  
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Medicaid Reform Again, But WORSE!

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May 25, 2012

- Blog, Elder Law Articles, Estate Planning, Medicaid and Paying for Nursing Home Care, Probate, Estate, and Trust Administration

The SMART Act SB 2840 will reverse many of the DRA changes Elder Law attorneys fought for on behalf of our clients.  The changes include the following:
  • Legal fees are no longer exempt for 3-month backdating.
  • Abolishes spousal refusal entirely.
  • A homestead in Trust is no longer an exempt asset.
  • Except for the Community Spouse Resource Allowance ($109,560) and Minimum Monthly Needs Maintenance Allowance ($2,739, HFS is no longer limited in how much it can seek when pursuing a support order against a community spouse.
  • Reverts to the old limits on prepaid funeral contracts.
  • Reduces the home equity exemption to the minimum allowed under federal law (base figure of $500,000, adjusted annually for inflation, rather than the $750,000 adopted in the DRA rulemaking).
  • No exception for prepaid funerals for 3-month backdating.
More to come.
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