Presentation on theme: "CLC Incorporated Legal and Financial Services Eldercare and Disability: Primary Legal Concerns of Long-Term Care and How Can a Family Pay for It?"— Presentation transcript:
CLC Incorporated Legal and Financial Services Eldercare and Disability: Primary Legal Concerns of Long-Term Care and How Can a Family Pay for It?
2 Today we’ll talk about… CLC: A company overview Elder Law vs. Estate Planning Attorney An attorney’s perspective on long-term care and mental capacity issues A financial planner’s perspective on long-term care expenses The value of a coordinated working relationship between the attorney and financial planner
3 CLC provides assistance for Value Options clients with legal and financial issues throughout the United States, Canada and Puerto Rico
4 Elder Law vs. Estate Planning Attorney
5 Long Term Care Planning & Financial Powers of Attorney Durable Powers of Attorney Incapacity Planning Long Term Care Planning
6 Durable Powers of Attorney Financial Focus of Presentation Health Equally Important but Not Covered in Presentation
7 Financial Powers of Attorney Definition of Durable Immediate Springing General Limited or Specific
8 Immediate Agent's authority commences on signing Overlap of authority Typical circumstances
9 Springing Agent's authority commences on principal's subsequent incapacity Requires definition of incapacity as trigger Requires identification of person or persons to determine incapacity Typical circumstances
10 General Broad grant of authority without restrictions Complete trust in agent required Typical circumstances
11 Limited or Specific Limited as to time Limited as to scope Not often used Typical circumstances
12 Form Documents Stationery store Generic and basic Computer download Generic and basic Attorney-drafted Comprehensive Tailored to client's need
13 Coordination With A Trust Revocable trust provides planning for death and incapacity Only effective as to trust assets Financial power needed for non-trust assets and income Two documents complement each other
14 Key Provisions Ability to Amend Trust and Other Documents Gifting Authority Self-Dealing Authority Alternate Agents Property Description Public Benefits Authority Removal of Trust Assets Insurance and Retirement Accounts Special Agent Joint Representation
15 Poor or Inadequate Documents Without a Power of Attorney With an Ineffective Power of Attorney Court Intervention Time-Consuming Costly Loss of Control Privacy Issues
16 Planning for Medicaid/MediCal Requires clear and specific authority Incapacitated person usually involved Need to qualify for means-tested benefits Requires transfer and gifting of assets Key document: Financial Power of Attorney
17 Most Urgent Long Term Health Concerns I want to avoid dependence I don’t want to burden my family I want to avoid welfare I don’t want to leave a lot of debt I want access to quality care I don’t want to deplete my savings I want to preserve assets for my family Source: Best of Life & Health, April 1996
18 What is a long term care situation? When help is needed for “Activities of Daily Living”: Bathing, dressing, eating, continence, etc. Assistance required as a result of cognitive impairment Care that will be needed for at least 90 days
19 The Family Caregiver A majority of long term care is provided by family caregivers in the home Financial impacts Physical and emotional impacts
20 Other Types of Long Term Care Adult day care Assisted living Skilled nursing There are many other options for care. A nursing home may be avoided with the proper planning!
21 What is the cost of care? 2008: Nursing Home/Semi-private Room $187/day or $68,255/year By 2018, a one-year nursing home stay (semi-private room) will cost approximately $111,180/year (at 5% inflation) 2008: Assisted Living (Private Room) $3,008/month; $36,096/year 2008: Home Health Aide (Medicare Certified) $38/hour for 15/hours per week = $29,640/year
22 Long Term Care Costs to Employers Economic Costs Loss of employee productivity Time off Increased use of health care resources by caregivers Non-Economic Costs Employees that are stressed and exhausted
23 How does a family pay for long term care? Personal income or liquidated investments of the person in care or their adult children Government benefits Long Term Care (LTC) insurance Other options Reverse mortgage Veteran’s benefits Life insurance accelerated benefits Life insurance riders Viatical settlements
24 What government benefits cover long term care? Medicare covers a maximum of 100 days per occurrence Medicaid You “spend down” savings to qualify Medicaid only pays for nursing home care Medicaid does not pay for home care or an assisted living facility
25 What about insurance? Medical Insurance pays doctor and hospital bills - not long term care expenses! Disability Insurance pays for lost income if sick or injured – not long term care expenses!
26 Long Term Care Insurance (LTC) Long term care insurance will pay for your care in almost any setting that you desire You can customize coverage that fits your budget.
27 When should you purchase long term care insurance? Timing is critical - premiums are based on age and health Premiums are increasing for new policies: insurance companies are realizing the daunting commitment that they have made in covering this need.
28 Other Payment Options Reverse mortgage Veteran’s benefits Life insurance accelerated benefits Life insurance riders Viatical settlements
29 The Role of the Financial Planner Help preserve client assets Balance the client’s ability to pay for care with the need for long term care insurance Work with the attorney and/or insurance agent to meet the client’s needs.
30 Thank you for your interest in CLC Incorporated.
31 The information presented is not to be a substitute for seeking advice specific to your situation from a legal or financial professional. If legal or financial advice is required, contact an attorney or financial advisor. The content hereof, together with any attachments, are subject to Federal and State Copyright and Trademark protections. This content may not be used, reproduced or distributed in any manner, in whole or in part, without the prior written consent of CLC Incorporated.