Financial Planning

Is “Prepaid” Life Insurance Becoming Popular?

Published on: October 19, 2012 | by Ettinger Law Firm

Life insurance is an important piece of long-term financial security for local families. It is entirely reasonable for parents and family breadwinners to wish to provide some security to their loved ones in case the unthinkable happens. However, with money tight and uncertainty about financial security remaining, some are unsure about the benefits of life insurance. Those in the life insurance industry have argued recently that their market is shrinking and returns are dropping. To jump-start the industry, some are now turning to a new product to sell to more community members.

A recent story in “The Motley Fool” provides some context for the product that may or may not be a good fit for some local families. This unique insurance option is actually a prepaid life insurance policy. It has been called the “marvel of simplicity.” The product, spearheaded by a unique collaboration between MetLife and retail giant WalMart, is essentially a short-term one year life insurance policy that provides up to $25,000 in coverage. These are not huge sums, but the idea is to open the insurance up to a much larger market. MetLife likely sought out the arrangment so that they could tap into Walmart’s large consumer base while saving costs of middlemen broker fees.

Interstingly, this approach is not the first of its kind. In the past Canadian insurer Manulife offered life insurance products through the U.S.-based big retailer Costco. In addition, in the past Walmart has sold customer various financial products, even including things like mortgages.

Elder Caregiving By Family Members

Published on: October 12, 2012 | by Ettinger Law Firm

The acting commissioner of the Dutchess County Department of Services for Aging, Veterans and Youth penned an article this week on the toll that elder caregiving takes on family members throughout the state. The purpose of the piece was two-fold: to recognize the amazing work done by so many local residents and to remind community members of the immense benefit of planning for the elder care they will likely need down the road.

The article, published in the Poughkeepsie Journal this week, refers to the recent AARP study which found that a staggering 42% of working-age U.S. citizens provided some form of unpaid elder care, with half of all citizens expecting to do that in the coming five years. In other words, this is not an isolated concern that affects “other people.” All of us, at one time or another, will have to deal with this situation.

Sadly, as noted in the AARP Report, the effect of providing this care (averaging 20 hours per week) is often more far-reaching than many suspect. It is not uncommon for elder caregivers to face limited work flexibility, denied leave, or even termination from their own paid job as a result of the care they are providing to their senior friend or family member. All of this is on top of data which suggests that senior caregivers has negative health consequences of their own. A MET Life study on the issue found that poor health was more common among those helping senior in poor health themselves.

Bronx Nursing Home Offers One-of-a-Kind Dementia Care

Published on: October 2, 2012 | by Ettinger Law Firm

In recent years there has been a push to alter care for seniors with dementia. Most arguments about superior elder care focus on limiting medication-only treatment options. These “chemical restraints” are still overused, with seniors in many nursing homes lulled into a near-stupor as a result of antipsychotic medication. In overcrowded or understaffed long-term care facilities, these drugs are often the only way that caregivers feel that they can handle the challenges that come with dementia and Alzheimer’s care.

However, just because medication is the most common way to deal with a resident with dementia does not mean that it is the best way. In fact, many elder care advocates argue that the best care steers clear of overuse of medication and provides tailored care that focuses on the individual senior and not the cognitive disease.

What does that individual care look like? One Bronx nursing home is receiving national plaudits for its work on the issue.

Free Lunches, Legal Information, & Long-term Care Insurance

Published on: September 26, 2012 | by Ettinger Law Firm

A new book is being released entitled “The Adventures of a Free Lunch Junkie.” The author, an 86-year old retired man, wrote the interesting tome based on his goal of eating at 50 “free lunches” over the course of a year. Most of the lunches were obtained during seminars, explaining concepts like estate planning, elder law, financial planning and more. Local seniors obviously know how popular these events are for learning about issues that may affect your latter years. In fact, many clients at our firm first learned about our services after attending one of these seminars.

The author is quick to point out that the book is not an “expose” but a simple satire. It was recently summarized in a LifeHealthPro article.

The book is chalk-full of humor, often highlighting the good (and bad) of the specific meals he received. However, the author importantly notes that there was one free seminar he attended that hit home on the need to plan for senior healthcare. He notes that while he was attending many events as part of his book project, the lessons shared were not ignored. In particular, he was convinced of the immense value in having a long-term care insurance policy. The elder law attorneys at our firm often recommend LTCI as part of prudent senior planning.

Man Tries to Kill Senior Girlfriend in Nursing Home for Financial Reasons

Published on: September 25, 2012 | by Ettinger Law Firm

It is perhaps every senior’s worst nightmare: a dispute over their finances influences the care they receive in their later years. It seems self-evident that nothing should get in the way of making medical and caregiving decisions based on maximizing a senior’s quality of life–not maximizing an inheritance for others once a senior passes on. Unfortunately, case after case demonstrates that some elderly community members suffer in their later years unnecessarily for financial reasons–not because they cannot afford proper care but because other want their money.

This confluence of elder law and estate planning was perhaps most vividly illustrated by a case discussed this week in SF Gate.

According to the story, a 63-year old woman was staying at a local care center because she was not able to care for herself at home. The details of her family situation are not known, however, she had been dating a 67-year old man for the past three years. Unfortunately, the boyfriend appears to have been motivated in the relationship mostly by the way that it could benefit him financially.

Death & Student Loan Obligations

Published on: September 24, 2012 | by Ettinger Law Firm

Not many years ago student loans and estate planning were rarely discussed in the same sentence. That is because in decades past far fewer individuals took out student loans and, even when they did, the size of the loans were smaller. Things are changing, however. Higher education is becoming more and more crucial to long-term employment and the cost of that education is increasing. These changes mean that more individuals have to take student loan obligations into account when conducting long-term financial planning. Those loans may the planner’s own loans or (even more likely) loans for children on which they co-signed.

In any event, more and more families have to take these issues into account in long-term planning. One issue on which there is much confusion is the discharge (or lack of discharge) of these obligations upon death.

Student Loan Obligations & Death

Can Doctors Protect Retirees from Fraud?

Published on: September 11, 2012 | by Ettinger Law Firm

As more and more information emerges about the true scope of senior financial exploitation, senior care advocates are leaving no stone unturned when it comes to tackling the problem. The latest statistics from MetLife suggest that, amazingly, one out of every five seniors over 65 years old have already be victimized financially in some way. At a general level it seems that prevention can take three forms: better educate seniors to stop it, better educate interested third parties to identify problems, and improve law enforcement efforts to catch wrongdoers.

Ensuring seniors are able to spot scams themselves seems like an obvious way to cut the problem significantly. However, that comes with many challenges, because the entire issue is rooted in seniors inherent vulnerability. Those with early stages of Alzheimer’s and other dementias are often the most at risk of being taken advantage of. For that reason, many suspect that intervention of third parties, like elder law attorneys and financial professionals, is crucial.

New Advocate to Prevent New York Elder Fraud

Losing Home Over $400 Tax Bill

Published on: July 11, 2012 | by Ettinger Law Firm

Senior care advocates repeatedly remind families that oversight is needed in some cases to ensure seniors do not fall victim to financial exploitation. Having an elder law estate planning attorney involved in the process is one way to provide some professional oversight.

However, beyond protecting against scammers and hucksters, many seniors are facing a new financial crisis that is not rooted in illegal misconduct. When on a fixed income and struggling with confusing money issues, some seniors might face incredibly severe financial penalties for falling behind on certain bills or taxes.

For example, CNN Money reported this week on a growing number of individuals who are losing their homes because they owe relatively small sums. A report from the National Consumer Law Center detailed how some states have outdated laws that allow states to sell tax liens on delinquent properties. Essentially this means that instead of the government having a lien on a piece of property that owed back taxes or bills for services like water and gas, private investors own the lien. The investor then collects interests on the overdue bill or, in some cases, forecloses on the home. Some states allow investors to charge staggeringly high interest rates, from 15% to 50%.

Should You Take Advantage of Tax Situation Now?

Published on: June 25, 2012 | by Ettinger Law Firm

The New York Times published a story this weekend on the continued uncertainty regarding the gift and estate tax and the questions it raises for many families. As each New York estate planning lawyer at our firm explains to local residents, the current tax situation is in flux, requiring many different considerations when engaging in estate planning. As it now stands, residents can each give up to $5.12 million tax free and then pay a 35% tax rate on any gift above that amount. The tax-free amount will drop and tax rate rise at the end of the year without Congressional action.

The uncertainty about the future of the tax details present very obvious challenges to many families. Giving away money to heirs now means reducing an eventual tax bill down the road. However, there are many questions about whether couples will have enough money to live on themselves after giving large sums to others. Obviously these considerations all depend on the value of the family estate. In general, only comparatively wealthy families are impacted by these issues. But for those families who are “on the cusp” and stand to pay more in taxes when the changes take effect, tough decisions will need to be made in the next six months.

One consideration beyond basic tax savings for estate planning purposes is the amount the any money passed on might grow over the years. For example, if a couple gave their child $5 million to take advantage of the favorable exemption, the gift could grow to nearly $30 million in about 30 years based on reasonable return rates.

Money for Senior Care Services Fails to Keep Pace with Rising Need

Published on: March 28, 2012 | by Ettinger Law Firm

Surveys from the AARP suggest that more than ninety percent of seniors would prefer to stay in their own homes as they age instead of moving into a nursing home or assisted living facility. Our New York elder law estate planning attorneys work with many seniors who take preparations specifically to avoid being forced to move in the future.

Unfortunately, access to the support services that allow seniors to stay at home is getting harder and harder to come by. Transportation services, meal delivery programs, adult day care centers, and similar programs are finding it tougher to stretch stagnant resources to aid a growing number of seniors. The Times Herald-Record touched on these New York elder care concerns in a story this week.

For example, at the end of this month the Dial-A-Bus service will no longer be providing support to elderly community members in New Windsor, Cornwall, and many nearby towns. Senior care workers explain that it is hard to underestimate the value of those sorts of services. For some isolated seniors, the bus service was not simply the only way they had to get to doctors appointments, but it was often the only chance these seniors had to socialize and interact with those in the community.