The Carson Report Number 4

THE CARSON REPORT

News for you and your family

Number 4 June, 2002

In This Issue

A Message from Leigh Joy Carson

Planning for the Future: Common Questions about Long-Term Care, Medicare, Estate Planning, and Social Security

The Benefits of Pre-Arranged Funeral Plans

A Message from Leigh Joy Carson

Dear Friends,

I am proud to announce that the First Annual Carson Law Firm Book Drive for Our Little Haven is complete and it was a tremendous success! We originally set our goal at collecting 100 books, and after we asked our clients, our friends and our colleagues for help, we were able to collect and donate more than 2,000 books to Our Little Haven. We are please to have the assistance to two students from Visitation Academy, Lauren and Carolyn Copeland, who organized their classmates and donated over 150 books!

Thank you to all of you who gave books. Our Little Haven provides residential care for children between birth and age six, and I am certain that they would welcome donations of more children's books, toys, clothes or furniture. If you have something to donate, feel free to call us and we will put you in touch with the right person at Our Little Haven.

We are proud to support such a worthwhile organization.

Please let us know how you like the new format of our newsletter and if you have any topics that you would like to see addressed. While we limit our practice to family law matters, we have many colleagues who are willing to contribute their specialized knowledge to our newsletter (like Ginny Rice, who contributed to this issue). Of course, if you need a referral to an attorney for something other than family law, we are happy to help.

Our best wishes to you and yours for a safe and happy summer.

Leigh Joy Carson

Planning for the Future: Common Questions about Long-Term Care, Medicare, Estate Planning and Social Security

Question: When should I start planning for the health care expenses and need for care issues that arise with advancing age?

Answer: Ideally, plans for the issues that arise with advancing age are made while you are in good health. No matter what your age, you should have a simple will, a durable power of attorney regarding financial and health care issues that authorizes another to make decisions and handle your affairs while you are unable to do so, and a health care directive (like a living will). These documents should be reviewed every five years or sooner in the event of any change in your family situation (a new child, a divorce, a death, etc.), a significant change in your financial status or a change in medical condition. Long term planning for the issues that often come with advancing age should also be done as part of your estate planning, and in the event that estate planning is not done, you should seek professional advice as soon as possible after the diagnosis of a potentially debilitating illness, Ideally, long term planning is done while you are in good health, as long term care insurance is rarely available after the diagnosis of a disabling illness, You can make a plan that can be changed as your situation changes, but waiting may mean that certain options that would be very valuable to you are foreclosed.

Question: If I have a will or other estate plan, do I still need to plan for health and long-term care expenses that arise with advancing age?

Answer: Yes. Wills and trusts generally address what will happen to your assets and debts after death. These documents commonly do not address payment and management of medical and long-term care expenses during your lifetime.

Question: Why should I plan for health and long term expenses - won't the government take care of me?

Answer: No, eligibility for many government benefits is dependent on your financial circumstances. Planning can protect your estate from being depleted to pay for health care and long term expenses. With proper planning, an individual's estate can be protected from being used to pay medical and long-term care expenses.

Question: Will being on Medicare and Medicaid affect the quality of treatment I receive?

Answer: No. Federal law is clear that if a facility accepts Medicare or Medicaid patients, those patients must receive the same level of medical, nursing or long-term care as a patient who privately pays or who has private insurance.

Question: What government benefits are available to assist me with meeting the health and long-term care expenses that often come with advancing age?

Answer: In addition to Medicare and Medicaid, Social Security and Veterans Administration and other government programs may be available.

Medicare is a benefit that almost everyone is entitled to. This benefit is generally based on age or disability, and not on income or assets. This benefit generally covers costs of hospitalization and certain medical care.

Medicaid is an indigency based program that if you qualify, will pay for long term care and some medical treatments and medications. Most facilities accept Medicare but do not accept Medicaid.

Question: Are there rules or limits on my transfer of assets in terms of my qualification for government benefits?

Answer: Yes. The transfer of property can have a devastating affect on your ability to qualify for Medicaid. You must seek the advice of an experienced elder law attorney before transferring property when health and long-term care issues associated with advancing age are imminent.

Question: Should I get divorced and transfer all of my assets to my former spouse in order to qualify for Medicaid benefits?

Answer: No. The laws were changed in 1993 so that the spouse who needs long-term care does not need to be impoverished in order to qualify for Medicaid.

The rules relating to planning to maximize your estate and to take the fullest advantage of all of the government benefits available are complex and the violation of a rule can have devastating effects. An experienced elder law attorney is an essential part of the planning process. It is never too early to start thinking about these issues. A disabling or debilitating injury or illness can strike at any age. Planning for medical expenses and long-term care needs does not need to impair your current lifestyle or restrict your estate plan to be effective.

The Benefits of Pre-Arranged Funeral Plans

by John Fernandez

There are several reasons why you may consider pre-planning your funeral arrangements:

It allows you to clearly state your wishes for your final disposition. Often this is the last subject that people want to talk about. As a result, families have no idea what the desires of the deceased individual were regarding the final arrangements. This leaves an undue burden upon the family of the deceased at a very emotional time. By prearranging funeral or cremation plans, this can be avoided and the plans can be made from a non-emotional perspective.

It allows you to shelter funds from the required spend-down that is often necessary for people facing the prospect of needing to receive Medicaid or state assistance. Most older adults face the inevitable fate of having to enter a nursing facility or need other long-term care for their final illness that result in a deletion of personal funds. Prepaid, irrevocable funeral arrangements are one of the few items that are exempt from the spend-down requirements necessary for an individual to qualify for Medicaid and state assistance. As long as the expenses are reasonable and normal the funds cannot be taken from the individual for medical expenses as long as they are secured in an irrevocable funeral contract in which funds are designated for funeral expenses only, to be released after the beneficiary's death.

Prearranging funeral arrangements freezes the cost of the goods and services and protects the beneficiary from any unforeseen increase in cost. Although the funeral director cannot guarantee outside expenses such as cemetery cost, he or she can guarantee that no matter what the cost is at the time of need the funeral establishment will honor the contract on the basis of funds received. Regarding items that the Federal Trade Commission regards as cash advance items (cemetery costs, etc.), the purchaser of a prepaid funeral can either choose to include money for the cost without guarantee that there will be enough to cover the expense at the time of need or the purchaser can choose to prepay those items with the provider, such as the cemetery, in order to guarantee costs.

If you have any questions regarding preplanning or prepaying funeral arrangements, please feel free to contact Mr. John Fernandez at 314-952-0030.

The Carson Law Firm: Family Law Attorneys -- Serving St. Louis Families for Over a Decade

Send mail to familylawinfo@thecarsonlawfirm.com with questions or comments about this web site.

This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Persons accessing this site are encouraged to seek counsel for advice regarding their individual legal issues.

St. Louis Web Design and maintenance by Clicked Studios.