Charlie Robinson's Blog

FLORIDA NURSING HOME CARE COSTS JUMP AGAIN

You've noticed it at the grocery checkout and at the gas station, but did you realize how much nursing home costs have gone up? Probably not unless you have a loved one in a nursing home. According to Genworth Financial at www.genworth.com, here are the Florida State Median Annual Care Costs in 2012: Nursing home costs between $78,475 and $84,552 a year. Assisted living apartment could be as much as $33,000. If you choose to stay at home (and can afford it), you may pay from $38,896 to $41,184 annually for aides and services. If you apply for Medicaid, our state government has recognized how expenses have gone up by increasing the average monthly private pay nursing facility rate from $5000 to $6880 per month in February 2012 under the Florida Administrative Code. You could transfer or gift $6880 and face only one month penalty. A certified Elder Law attorney can help you put in place a life plan that will make full use of current regulations and laws. This is not something you want to put off until crisis hits.

 

A CRY FOR HELP

The following is a story about a fictional family called the Darlings. Dad died three years ago. He left Mom a substantial estate, including valuable real estate, stocks and bonds. Mom has been declining in health and mind.

She loves email and keeps in touch with grandchildren, nieces and nephews. She enjoys the photos they post. She also likes to look up Bible questions and medical advice on the internet.

One day she gets an email from an unknown financial advisor. Then he calls her on the phone to tell
her about an exciting privately managed fund she can buy into. Only a limited number of people will be offered this golden opportunity. He tells her not to talk with anyone about this “can’t-lose-investment”. She mails check to him. She gets a couple of checks from the investment in the following months, but later the fund folds and she loses entire $20,000 of the investment.

Three months later: Mom gets a phone call from person claiming to be friend of son traveling in Africa volunteering with Doctors Without Borders…son fell ill and needs $5000 today to get home for emergency care … Mom wires money immediately as directed. Later when talking to her daughter in law in Indiana she learns her son is safe at home, never went to Africa or anywhere.

Family members: Mom lives in Florida. Married Doctor son lives in Indiana has two children; nmarried
Chemist son lives in Georgia; Divorced daughter teacher lives in California, has three children; Married daughter lives in South Carolina, has two children; Unmarried daughter lives in New York, fashion director for large department store.

Family learns about scams and lost money, and call conference with Mom. Doctor son says track down callers and sue. Chemist son wants to close checking account and open new one where only he can issue checks. Teacher daughter argues they must allow Mom to be independent. Unmarried daughter agrees for independence but says someone must check finances regularly. Mom says she wants to stay in her home and get help to come in when she needs it.

The doctor son has talked by phone with his brother and sisters about a live-in caregiver, assisted living facility, moving in with one of the family members, selling her home, or selling other real estate, but finds no agreement on what to do or how to proceed. At this point the married daughter in South Carolina calls Mom’s estate planning attorney in Florida and explains their dilemma. The attorney suggests calling in an elder and adult family mediator and the attorney sends her a list of
certified mediators. The South Carolina daughter calls her siblings to tell them of her conversation with Mom’s attorney. The doctor offers to interview by phone the listed mediators. He recommends one of the elder and adult family mediators who appeared to have extensive experience in similar family situations. They all agree to pursue this option and to participate in the mediation procedure and ask the doctor son to make the arrangements which he does.

By telephone conference with Mom and all siblings, the Mediator explains basic process of arbitration including the normal steps in building a consensus: Initially the Mediator will talk with each
individually, in confidence, by phone. During these interviews the Mediator will attempt to learn what are the priorities, the concerns, interests, opinions, and personal feelings of each one, and how each sees the outcome of this mediation for their Mom.

The Mediator will sort out the negative and positive comments and prepare a brief list emphasizing
the positive ideas put forward containing the elements that will bind the parties together. Many times it takes real effort to find common ground on which to proceed. He also proposes the ground rules for a round-table conference with all participants including Mom, such as no disparaging remarks about each other, or complaints about past grievances, or reasons for pushing an agenda based on some kind of revenge or getting even.

This concludes the first step … getting the right people to the table and learning
what each participant sees as the dominant issue. Next the Mediator summarizes the issues.

ELDER MEDIATION

THE GREAT GENERATION DIVIDE

Bringing together two or three generations to come to a satisfactory and viable plan for eighty-year-old parents is no easy task. Certainly it is not an easy task for many family members each having their own agenda and no one strong enough to arbitrate. Perhaps one sophisticated son or
daughter will acknowledge that they need a mediator, and seek out an Elder and Adult Family Mediator for help.

Conceding that all the sons and daughters want the best care for their parents, the solutions to promoting such quality of life are diverse. Finding the one or two best ideas from among the possibilities suggested by the family takes the expertise of the mediator. But first, the mediator will seek to fully understand the values, the ambitions, the fears and concerns of each party.
Finding common interests among the parties in a safe environment where everyone has their say will lead the way to options that take into account some of those commonalities. Then they can brainstorm the options, considering, evaluating, prioritizing until one plan becomes clear to all present.

Many times these differences are battled out in court, where there is always a “winner” and a “loser”. In mediation, you are most likely to have a win-win solution.

As a Court Certified Mediator, I will discuss how elder mediation works in future posts.

GUEST SPEAKER AT GUARDIAN ASSOCIATION

March 20, 2012

CHARLIE ROBINSON was the guest speaker at the meeting of the Guardian Association of Pinellas County, Inc. at Regal Palms Premier Assisted Living Center in Largo. Mr. Robinson discussed the new Durable Power of Attorney statute.

WHY DO YOU NEED LONG TERM PLANNING?

One of the core services my office provides is long term care planning. Often families do not understand what is meant by a “long term care plan”. They have their Will and maybe Trust and their Living Will, Health Care Surrogate and Durable Family Power of Attorney. They have their retirement savings, bank accounts, properties, perhaps their stocks and bonds. They believe they have done all the “planning” necessary. What they are missing is a viable plan to take care of them in the event of incapacitation such as a chronic illness, stroke, ALS, Parkinson’s, or Alzheimer’s disease. We all like to believe ‘this won’t ever happen to me.’ But the fact remains, the very real danger is out there, as the following survey shows:

The original content of the following article is from the Alzheimer's Reading Room http://www.alzheimersreadingroom.com.

The MetLife Foundation Alzheimer’s Survey “What America Thinks,” conducted by Harris Interactive, found that most people are not preparing for the strong possibility that they or their family members will develop Alzheimer’s, despite significant fear of the disease. When asked which of five major diseases they fear most, Alzheimer’s disease was second (31%) behind cancer (41%), but far ahead of heart disease (8%), stroke (8%) and diabetes (6%). The survey was conducted by telephone with 1,007 adults in September 2010; it follows similar research from 2006, the year of the 20th MetLife Foundation awards presentation.

The current study found:

• 44 percent of adults have family members or friends with Alzheimer’s disease.
• Nearly a quarter (23%) of adults are extremely or very concerned that they may someday provide care for a loved one with Alzheimer’s, an increase from 18% in 2006.
• Only 18 percent of adults say they have made any plans for the possibility of getting Alzheimer’s disease, compared to 12 percent in 2006. Fewer than half of all adults claim to have talked to their families about Alzheimer’s disease (41%).
• Thirty-three percent have considered what care options would be available to them in the event of AD; 44 percent have designated who would take care of them. Slightly more than one in five (21%) adults claims to have made any financial arrangement for the possibility of AD onset.

Call my office for more information on long term care planning.

See my website: www.charlie-robinson.com.

GUEST SPEAKER FOR CAREGIVERS

CHARLIE ROBINSON was the guest speaker at the meeting of the Largo Caregivers Support Group on Friday, January 27, 2012, at the Church of Christ Fellowship Hall in Largo, Florida. Mr. Robinson discussed Asset Protection Planning, Medicaid Planning and the new Durable Power of Attorney.

LONG TERM CARE PLANNING

MOST AMERICANS DON'T PREPARE FOR LONG TERM CARE PLANNING, SURVEY SAYS.

Nearly eight out of ten Americans acknowledge the increasing need for long term care (LTC) planning, yet nearly half (45%) aren't sure how they will address future LTC needs, according to a study released by Northwestern Mutual Life Insurance Company.

The study also found that almost two-thirds of people believe the cost of providing LTC services will rise faster than the return on their savings, and that slightly over half believe that long term care costs will double in the next 14 years. Yet, less than one-third are currently saving for future LTC needs.

"There is a clear disconnect between what Americans understand about long term care needs and the steps they've taken to prepare," said Steve Sperka, Northwestern Mutual vice president of long term care. "In order to create flexibility and options in retirement, people need to address long term care risk as part of financial security planning."

Northwestern Mutual's survey was conducted online by Harris Interactive from October 11-13, 2011, and comprised 2,194 American adults ages 18 and older. According to the survey, an estimated 27% of women report that they have been a caregiver compared to 22% of men. Additionally, two-thirds of women polled said that they're more likely to report that the physical demand of caregiving is their biggest challenge versus less than 50% of men. Compounding the issue is the fact that women, on average, live five years longer than men, according to data from the Centers for Disease Control. Despite this fact, the study showed that fewer women are saving for their future needs (24% for women vs. 32% for men).

"There is no doubt that long term care is a pronounced issue for women, who tend to live longer and are more likely to provide care during their lives," Sperka added. "This just amplifies the importance of planning for women, in order to maintain control over their finances and lifestyle through retirement."

See my website www.charlie-robinson.com for more information on long term care planning.

FLORIDA MEDICAID 2012

MEDICAID 2012

MEDICAID QUALIFICATIONS 2012 during and after Application Process

• Medicaid applicant available asset limit in 2012 is $2000.
• Medicaid applicant gross income limit in 2012 is $2094.
• Community Spouse available asset limit in 2012 is $113,640.
• Home Equity Exemption in 2012 is $525,000.
• Assets below the Medicaid limit one day of the month of application.

MEDICAID APPLICANT

During Application: Asset Limit under $2000---Income Limit under $2094

After Approval: Asset Limit under $2000 ---Income Limit under $2094.

COMMUNITY SPOUSE

During Application: Asset Limit under $113,640---Income Limit No Limit

After Approval: No Limit---Income Limit No Limit

Qualifications for Florida Institutional Care Program (ICP) Medicaid

• Appropriately placed in a nursing home.
• Determination by personal physician.
• Evaluation done by CARES unit of Department of Elder Affairs (DOEA).
• Assets for Medicaid applicant under $2,000 one day of every month of Medicaid benefits.
• Income for Medicaid applicant under $2,094 or a Qualified Income Trust (QIT) in place and funded.
• Gross income includes any deductions such as Medicare Part B premium deduction from Social Security.
• Qualified Income Trust must be established and gross income deposited in QIT account the first month of qualification.
• Income must be deposited into QIT account each month.
• Under no transfer penalty.
• A transfer of assets for less than market value to somebody other than a spouse causes a period of ineligibility.
• Application for Medicaid benefits is not made until all of the abovfe criteria have been met. Applying too soon may cause additional disqualification for benefits.

See my website: www.charlie-robinson.com for details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WHAT IS A DURABLE POWER OF ATTORNEY ?

Major changes that affect everyone who has or may need to have a Durable Power of Attorney went into effect October 1, 2011. It is critical that everyone who has a Durable Power of Attorney or may be an Agent for someone understands these changes. A Durable Power of Attorney is an extremely important and powerful document. You should consult with a Florida attorney who specializes in the area of law that currently affects your life. A Durable Power of Attorney form copied from a book or drafted by a non-lawyer may not be valid if all the provisions of the new Florida Durable Power of Attorney law are not followed. There are now specific options, duties and powers that you may elect to allow your Agent to perform. A generic form document will not advise you on the importance of your choices.

Q. Can an Agent be paid under the new Durable Power of Attorney?

Q. What are the duties of the Agent under the new Durable Power of Attorney?

Q. What are “Superpowers”?

These are some of the questions that I answer in my article about the new Florida Power of Attorney Act on my website: www.charlie-robinson.com. Click on “Articles” and select “Florida Durable Power of Attorney Questions and Answers as of October 1, 2011.”

NEW FLORIDA POWER OF ATTORNEY

A new Florida Durable Power of Attorney statute went into effect on October 1, 2011. The Act applies to all powers of attorney, regardless of the date the powers were created. I will provide you with some details of the significant provisions in the new Statute in this post and future posts.

Protection of the person granting the power (the principal) is foremost in the minds of the legislators. They recognized that it is desirable to make available to the citizens of Florida a system that provides incapacitated persons the least restrictive alternatives to ensure their physical health and safety, protect their rights and manage their financial resources, while providing protection to the principal and clear guidance to the agent (the person to whom the power is given).

In doing so they designated certain powers that may be exercised by an agent only upon the specific signed authority by the principal. Those powers have been designated Super Powers. Each grant of authority must be signed or initialed by the principal on the document itself at the location of that power. Included in these powers is the authority to create a trust; to modify, revoke or terminate an existing trust; to change rights of survivorship; to change a beneficiary; to waive any rights of the principal to an annuity or survivor benefit under a retirement plan. An agent may make gifts of principal’s property under certain conditions that insure the principal’s decision to authorize gifts is a knowing and informed one. The Act also clarifies an agent’s duty to maintain a principal’s estate plan and the liability an agent incurs for not doing so.

I have removed the old DPOA from my website. I left the Health Care Surrogate and Living Will documents in place. If those documents coincide with your values, then they still can be used by you providing the signing instructions are followed. All Advance Directives need to follow your values and religious beliefs as well as be valid under Florida law and should always be drafted by a qualified Florida attorney. Due to the many choices an individual needs to make in the new Durable Power of Attorney as of October 1, 2011, I feel it is important this document be drafted by a qualified Florida attorney. I do not plan to put the new DPOA on my website.