|
Special Needs Community News
Elder Law Associates PA is always seeking ways to bring pertinent information to our clients, whether they are seniors, people with special needs or their families. We are happy to debut the Special Needs Community News column, a designated space for up-to-date information of interest to people with special needs. Feel free to email us with topic suggestions for future issues.
Support the Palm Beach School for Autism and look good doing it!
A mother of a boy with Autism designed, markets and sells (for only $20!) these beautiful necklaces to help raise money for her son's school, the Palm Beach School for Autism. Click here for more information.
Community Education Series Presents
Autism 101
Featuring Board Certified Developmental & Behavioral Pediatrician Dr. Judith Aronson-Ramos
When: Tuesday,
December 15, 2009
6:00 pm to 7:30 pm
Where: JARC Living and Learning Center
21160 95th Avenue South
Boca Raton, FL 33428
561-558-2550
Event Details:
Conversations with
Dr. Judith Aronson-Ramos on Disability Related Issues
For more information
and to RSVP,
please call or email
561-558-2550.
Generously sponsored by:
JARC (Jewish Association for Residential Care) in conjunction with the Department of Special Needs, Jewish Federation of South Palm Beach County.
| |
We hope you had a very
from all of us at Elder Law Associates PA.
Thank you to all who attended the 2nd Annual Elder Law Forum on November 12, 2009. Your input and enthusiastic participation helped make it a big success!
We provide The Elder Law Update to our clients and our colleagues who make up a wide range of service providers for seniors and people with disabilities to facilitate the dissemination of helpful and accurate information. We thank you for letting us share our knowledge with you. We continue to welcome your comments and questions. You may send them to Info@ElderLawAssociates.com. |
Medicare Part B Premiums to Rise 15 Percent for Some, or Maybe None
 After not rising last year, the basic premium for Medicare Part B will shoot up 15 percent to $110.50 a month in 2010 from $96.40 in 2008 and 2009. But most beneficiaries will be exempted from paying this increase. Whether the rest will be able to avoid it as well remains to be seen.
The explanation is somewhat complicated. It all started when the Social Security Administration announced that there would be no cost of living benefit rise for Social Security recipients in 2010. A "hold-harmless" provision in the Medicare law prohibits Part B premiums from rising more than that year's cost of living increase in Social Security benefits. Since there is no Social Security increase, most beneficiaries -- 73 percent -- will not have to pay any increased Part B premiums because of the hold-harmless provision. Those covered by the provision will continue to pay Part B premiums of $96.40 per month in 2010.
But this hold-harmless protection does not apply to the other 27 percent of beneficiaries -- about 12 million in all -- who either:
- do not have their Part B premiums withheld from their Social Security checks, or
- pay a higher Part B premium surcharge based on high income (see below), or
- are newly enrolled in Part B.
(All this is explained in an an earlier ElderLawAnswers article.)
The U.S. House of Representatives overwhelmingly passed a bill that would void the 15 percent Part B premium increase for all Medicare beneficiaries, and it awaits action in the Senate. The Obama administration has urged the Senate to go along with the House.
Medicare Part B covers physician services as well as qualifying out-patient hospital care, durable medical equipment, and certain home health services, among other services. But whether or not Congress keeps the cost of Medicare Part B level for all, other beneficiary costs of the Medicare program are scheduled to rise next year. Here are all the new Medicare figures for 2010:
-
Basic Part B premium: $110.50/month
-
Part B deductible: $155 (was $135)
-
Part A deductible: $1,100 (was $1,068)
-
Co-payment for hospital stay days 61-90: $275/day (was $267)
-
Co-payment for hospital stay days 91 and beyond: $550/day (was $534)
-
Skilled nursing facility co-payment, days 21-100: $137.50/day (was $133.50)
As directed by the 2003 Medicare law, higher-income beneficiaries will pay higher Part B premiums. Following are those amounts for 2010:
- Individuals with annual incomes between $85,000 and $107,000 and married couples with annual incomes between $170,000 and $214,000 will pay a monthly premium of $154.70.
- Individuals with annual incomes between $107,000 and $160,000 and married couples with annual incomes between $214,000 and $320,000 will pay a monthly premium of $221.
- Individuals with annual incomes between $160,000 and $214,000 and married couples with annual incomes between $320,000 and $428,000 will pay a monthly premium of $287.30.
- Individuals with annual incomes of $214,000 or more and married couples with annual incomes of $428,000 or more will pay a monthly premium of $353.60.
Rates differ for beneficiaries who are married but file a separate tax return from their spouse:
-
Those with incomes between $85,000 and $128,000 will pay a monthly premium of $287.30.
-
Those with incomes greater than $128,000 will pay a monthly premium of $353.60.
As ElderLawAnswers explains in a separate article, the Social Security Administration uses the income reported two years ago to determine a Part B beneficiary's premiums. So the income reported on a 2008 tax return is used to determine the monthly Part B premium in 2010. Income is calculated by taking a senior's adjusted gross income and adding back in some normally excluded income, such as tax-exempt interest, U.S. savings bond interest used to pay tuition, and certain income from foreign sources. This is called modified adjusted gross income (MAGI). If a senior's MAGI decreased significantly in the past two years, she may request that information from more recent years be used to calculate the premium. But, as noted above, all this may be academic for 2010 if Congress acts to hold down Part B premiums for all beneficiaries.
For more information from Medicare on the 2010 increases, click here. |
| Understanding the Differences Between a Will and a Trust
 Everyone has heard the terms "will" and "trust," but not everyone knows the differences between the two. Both are useful estate planning devices that serve different purposes, and both can work together to create a complete estate plan.
One main difference between a will and a trust is that a will goes into effect only after you die, while a trust takes effect as soon as you create it. A will is a document that directs who will receive your property at your death and it appoints a legal representative to carry out your wishes. By contrast, a trust can be used to begin distributing property before death, at death or afterwards. A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a "trustee," holds legal title to property for another person, called a "beneficiary." A trust usually has two types of beneficiaries: one set that receives income from the trust during their lives and another set that receives whatever is left over after the first set of beneficiaries dies.
A will covers any property that is only in your name when you die. It does not cover property held in joint tenancy or in a trust. A trust, on the other hand, covers only property that has been transferred to the trust. In order for property to be included in a trust, it must be put in the name of the trust.
Another difference between a will and a trust is that a will passes through probate. That means a court oversees the administration of the will and ensures the will is valid and the property gets distributed the way the deceased wanted. A trust passes outside of probate, so a court does not need to oversee the process, which can save time and money. Unlike a will, which becomes part of the public record, a trust can remain private.
Wills and trusts each have their advantages and disadvantages. For example, a will allows you to name a guardian for children and to specify funeral arrangements, while a trust does not. On the other hand, a trust can be used to plan for disability or to provide savings on taxes. Your elder law attorney can tell you how best to use a will and a trust in your estate plan. |
|
Book Review: The Alzheimer's Advisor: A Caregiver's Guide to Dealing with the Tough Legal and Practical Issues
 Vaughn E. James. The Alzheimer's Advisor: A Caregiver's Guide to Dealing with the Tough Legal and Practical Issues. AMACOM. New York, NY. 2009. 300 pages.
$14.96 from Amazon (click on book to order)
Caring for a family member with Alzheimer's disease is complicated enough, but often overlooked are the legal implications of the disease. The Alzheimer's Advisor provides a guide to the legal and ethical aspects of caring for a family member with Alzheimer's.
The Alzheimer's Advisor is written by Vaughn James, an elder law professor at Texas Tech University School of Law who has personal experience with family members with Alzheimer's disease. While James touches on possible causes and symptoms of the disease, the bulk of the book addresses the legal challenges that arise when caring for an Alzheimer's patient. James stresses that legal assistance is needed as soon as possible because once a patient is in the final stages of the disease, he or she may not have the capacity to execute essential estate planning documents.
James discusses the various planning documents that are important for anyone to have, especially someone suffering from Alzheimer's disease, including powers of attorney, wills and trusts, living wills, and "do not resuscitate" orders. The presence of the disease complicates issues regarding many of these documents. For example, because Alzheimer's disease is technically not a terminal illness, it may not trigger a living will. James also explains the guardianship process, moving someone who is under guardianship, legal liability for patients who do something wrong, and paying for care. In addition, James provides tips for caregivers on how to cope with the stresses of caring for an Alzheimer's patient.
James's experience with family members with Alzheimer's disease lends the book a personal dimension. Using real-life examples, James provides a thorough and easy-to-read explanation of the complicated legal implications of having a family member with Alzheimer's disease. |
IRS Issues Long-Term Care Premium Deductibility Limits for 2010
 The Internal Revenue Service has announced the 2010 limitations on the deductibility of long-term care insurance premiums from taxes. For the first time, the maximum deductible limit for an individual exceeds $4,000.
Premiums for "qualified" (see explanation below) are tax deductible provided that they, along with other unreimbursed medical expenses, exceed 7.5 percent of the insured's adjusted gross income. These premiums -- what the policyholder pays the insurance company to keep the policy in force -- are deductible for the taxpayer, his or her spouse and other dependents. (If you are self-employed, the tax-deductibility rules are a little different: You can take the amount of the premium as a deduction as long as you made a net profit; your medical expenses do not have to exceed 7.5 percent of your income.)
However, there is a limit on how large a premium can be deducted, depending on the age of the taxpayer at the end of the year. Following are the deductibility limits for 2010. Any premium amounts for the year above these limits are not considered to be a medical expense.
|
Attained age before the close of the taxable year |
Maximum deduction for year |
|
40 or less |
$330 |
|
More than 40 but not more than 50 |
$620 |
|
More than 50 but not more than 60 |
$1,230 |
|
More than 60 but not more than 70 |
$3,290 |
|
More than 70 |
$4,110 |
What Is a "Qualified" Policy?
To be "qualified," policies issued on or after January 1, 1997, must adhere to certain requirements, among them that the policy must offer the consumer the options of "inflation" and "nonforfeiture" protection, although the consumer can choose not to purchase these features. Policies purchased before January 1, 1997, will be grandfathered and treated as "qualified" as long as they have been approved by the insurance commissioner of the state in which they are sold. For more on the "qualified" definition, click here.
The Taxation of Benefits
Benefits from reimbursement policies, which pay for the actual services a beneficiary receives, are not included in income. Benefits from per diem or indemnity policies, which pay a predetermined amount each day, are not included in income except amounts that exceed the beneficiary's total qualified long-term care expenses or $290 per day (for 2010).
When a business purchases a tax-qualified long-term care insurance policy on behalf of any of its employees, or their spouses and dependents, the corporation is entitled to take a 100 percent deduction as a business expense on the total premium paid. The deduction is not limited to the aged-based eligible premiums listed above.
For details on these and other long-term care insurance tax-advantaged rules, click here.
The Georgetown University Long-Term Care Financing Project has a two-page fact sheet, "Tax Code Treatment of Long-Term Care and Long-Term Care Insurance." To download it in PDF format, go to: http://ltc.georgetown.edu/pdfs/taxcode.pdf
(If you do not have the free PDF reader installed on your computer, download it here.) |
| Switching Medicare Plans If You Move
 If you are over 65 and preparing to move to another county or state, be sure to add "check Medicare plan" to your to-do list. You need to make sure your Medicare plan will still be in effect after you move. Whether or not your policy will be valid will depend in part on whether you have Original Medicare or Medicare Advantage.
If you have Original Medicare, moving should not affect your benefits. Your Medicare plan will still be valid when you move. However, if you have a Medigap policy as well, you need to check with your insurer. While the insurance company should continue to renew the policy as long as you continue to pay your premium, it may be able to change the premium based on your new area of residence. In addition, if you have Medicare SELECT, a type of Medigap policy that allows you to use only hospitals and doctors within its network, you may have to purchase a new supplemental policy.
If you have a Medicare Advantage plan, you will need to check with the plan to see if you are moving out of the plan's service area. If the plan does not cover your new area, you will need to switch to another plan. You can choose to switch to another Medicare Advantage plan in your new area or to Original Medicare. If you take no steps, you will be automatically enrolled in Original Medicare. If you do switch to Original Medicare, remember that you may also need a Medigap policy as well as prescription drug coverage to take care of coverage your Advantage plan offered.
If you choose to switch to another Medicare Advantage plan, you should be able to enroll in the new plan right away without waiting for the open enrollment period. This is called a special enrollment period. The special enrollment period for joining a Medicare Advantage plan is usually one month before you move up until two months after you move.
The best way to switch plans is to just enroll in the new plan. Once you do this, you will be automatically disenrolled from your old plan. To find out what plans or policies are available in the area you are moving to, check the Medicare Options Compare Web site.
For more information on Medicare, click here. | |
| The Greatest Compliment ...
 We always appreciate referrals from our satisfied clients, friends, business partners, and family members. We welcome the opportunity to serve the people you care about. Click on the blue Forward Email at the bottom of the page to send this newsletter to someone who will benefit from our insights. | |
|
|
Elder Law Associates PA is a boutique elder law firm that practices exclusively in Medicaid and long term care planning including long term care insurance, Medicaid applications, home and community-based Medicaid waiver services, diversion program benefits, nursing home benefits, spousal refusal applications, and Medicaid fair hearings and appeals; nursing home and assisted living facility residents' rights litigation; asset preservation planning with a special focus on planning in light of the Deficit Reduction Act of 2005, including personal service agreements, the purchase of life estates, income producing real estate and spenddown planning; disability planning, including special needs trusts and guardianship; estate planning, including wills and trusts and advance directives; and probate, which encompasses estate and trust administration as well as litigation.
We assist clients in planning for the possibility of disability, incapacity, home health care, assisted living and/or nursing home placement. Our firm enables clients to avoid impoverishment caused by the escalating cost of long term care, to maintain their right to make health care decisions and to avoid unnecessary medical treatment.
We hope you have enjoyed The Elder Law Update. If you have questions about something you read, elder law matters or issues concerning persons with disabilities, we would be delighted to hear from you. We serve as an elder law resource to many professionals and organizations and want to become your elder law resource as well. You can reach us at Info@ElderLawAssociates.com.
Warm regards,
|
|
Ellen S. Morris, Esq. & Howard S. Krooks, Esq., CELA, CAP
Elder Law Associates PA
phone: (561) 750-3850 / (800) 353-3752
fax: (561) 750-4069
This publication is intended for general information purposes only. It is not intended to constitute individual legal advice to any specific client. |
|
|
