By Estate Planning attorney Rick Law of Law Elder Law. Serving Chicagoland’s seniors, retirees, and their families. Recent findings in a survey done by the Society of Actuaries (SOA) found that almost 63% of older Americans reported that they are not confident that they can save enough to handle healthcare costs in retirement. In fact, nearly two-thirds of those surveyed stated that they could manage an annual increase in healthcare costs of only 1 to 5%. However, according to the U.S. Department of Health and Human Services, healthcare costs are actually expected to increase, on average, by 6.3% annually until the year 2019. And that could make healthcare costs even more difficult for senior Americans – enough to affect their ability to maintain their current standard of living in retirement. In addition, seniors received no cost of living increases in their Social Security checks in 2010 or 2011, even though many costs are still rising – especially costs that can affect seniors. Healthcare, nursing home, and assisted living costs are just a few of these expenses. Other expenses include daily necessities like food and utility bills, which are actually rising faster than the moderate rate of general inflation. This could put many seniors in a financial bind. Topping things off are those seniors who have stock accounts, IRAs and 401(k)s who have seen their income drop due to market losses – some for over a decade now.  Seniors who depend on interest payments from their savings are suffering from historically low interest rates. There’s no denying that seniors’ purchasing power will decline if they are living on a fixed income – especially in light of the fact that their healthcare costs will rise.  Purchasing power will decline even more so if the need for long-term care arises. On average, once an individual reaches the age of 65, their chances of needing long-term care at some point are nearly one in two, with the average length of care being two and a half to three years. If an individual is diagnosed with certain conditions, there is a good chance that the length of care will be even longer. On average, an individual with Alzheimer’s disease could need long-term care for eight years. At an average cost of over $70,000 a year – and rising – it doesn’t take long to see that healthcare costs could wipe out even a large investment portfolio in a very short amount of time. If you’re ready to start getting your estate in order and secure your assets for the “worst-case” scenario, please give our office a call at 800-310-3100. Your first consultation is absolutely free.  We’ll let you know what steps you need to take, right now, to protect yourself and your family.  Call now. Sincerely, Rick L. Law, Attorney, Estate Planner for Retirees Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal, AARP Magazine, TheStreet.com, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future.  Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care.  Call 630-585-5200 or 800-310-3100 for your free consultation now!

The “Elder Care Journey” is a continuum of possible care needs that get more intense as the journey progresses. Typically, the journey progresses as follows:

• Healthy, vigorous senior:  Most of today’s seniors are active, much more so than in years gone by. Several decades ago, you were not apt to see seniors playing tennis, running in races or skydiving?  But with today’s medical technology and resources for exercise for health-conscious seniors, more people in their sixties, seventies and even eighties are living full and active lifestyles… at least for a while.
• Medications and acute health problems:  At some point, it is likely that even a healthy and vigorous senior will begin to experience some type of health issues. These issues may start small, with arthritis or high blood pressure. But over time, most seniors will begin to exhibit more serious signs of physical aging and the onset of serious issues, possibly resulting in hospitalization to recover from injuries or for the purpose of various surgeries.

It is at this stage in the journey that these issues – and the corresponding medications that are prescribed – will most likely be covered from a cost standpoint either by Medicare (which covers acute care) or private insurance. Although the senior may be responsible for paying an insurance deductible, these costs are often capped at an annual rate so the senior can plan and anticipate their healthcare financial responsibilities.  In addition, those who are covered by Medicare may also have a Medicare supplemental insurance policy that covers many of the co-payments and deductibles that Medicare does not cover.

• Declining senior with memory or mobility issues: As the senior progresses on the journey, memory and/or mobility will begin to decline. Regardless of how active or healthy one was in the past, at some point the body and the mind will begin to slow down. These issues may start small, such as frequent forgetfulness or walking at a slower pace, until eventually the senior may need some type of in-home assistance to help with basic daily needs.
• In-home assistance:  When a senior is unable to perform basic daily living activities – either physically or because they cognitively are unable to remember to do so – then some form of in-home care is needed. This could entail hiring a homemaker aide to help with household chores or bill paying, or more extensive assistance might be needed on a more regular basis. Regardless of the need, at an average cost of $17 to $22 per hour (eight hours per day x 365 days per year = $49,000 to $64,000 per year), the expenses can begin to add up.

It is now that the senior and their family may begin to realize that regular health insurance, as well as Medicare and Medicaid, are not constructed to pay for these types of care costs. In fact, it is often only personal assets or long-term care insurance that will cover these types of expenses. And, unless the senior is suffering from a very serious condition, the situation could go on for years.

• Assisted living facility:  A time comes when the senior is unable – or unsafe to live at home without assistance throughout the day and night. At this time, even though the senior may not need medical or skilled nursing care, the family will need to consider an assisted living facility.  Here the senior will still maintain a great deal of independence, yet will have access to care and assistance whenever needed.

Here again, these costs are not covered by Medicare or regular health insurance policies. Payment for this type of care requires paying out-of-pocket or using long-term care insurance. (In Illinois, we do have “supportive living facilities” that take Medicaid, but you must meet the financial requirements and pass a screening that shows you require a certain level of care.  All “assisted” living facilities are not “supportive” living facilities; and therefore, Medicaid is not an option in the traditional independent or assisted living facility.) With an average monthly cost of $3,000 to $6,000 and an average length of need of two and a half to three years, the annual cost for an assisted living facility is $36,000 to $72,000 per year. Here again, the potential to quickly deplete personal assets is high without some form of pre-planning for this need.

• The fragile senior at a skilled nursing facility:  Once the senior’s health deteriorates to a certain level, they will have no choice but to enter a nursing home where they can receive around-the-clock skilled care. Skilled nursing facilities are equipped to handle most conditions, and many even have a special section for patients with Alzheimer’s disease.

The average monthly cost of care in a skilled nursing home facility is $4,000 to $9,000, with an average length of stay two to five years, with the only real option for payment coverage being out-of-pocket, Medicaid (which only applies if the senior is considered to be at the state’s poverty level) or a long-term care insurance policy.

• Death:  When the senior has passed away, a whole host of other issues will come into play. This can include survivor care, if the senior was married and is leaving behind a spouse, as well as estate administration. Pre-planning in this area is also essential, as the senior’s estate could be subject to hefty estate taxes, and his/her heirs could end up with nothing to show for a lifetime of work and saving by the senior.

Too many families needlessly lose everything they have. Don’t let that be you. If you need help, give our office a call at 630-585-5200 or 800-310-3100. Your first consultation is absolutely free. We’ll let you know what steps you need to take, right now, to protect yourself and your family. Call now, because when you’re out of money, you’re out of options! Sincerely, Rick L. Law, Attorney and Estate Planner for Retirees Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal,  AARP Magazine, TheStreet.com, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future. Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care. Call 800-310-3100 for your free consultation now!

By Attorney Rick Law, Senior Estate Planner and Elder Law Attorney in West Suburban Aurora, IL Often, as we meet with clients,  it becomes clear to us that they are concerned about what will happen to their vulnerable loved ones. They may be worried about their adult child who has been physically or mentally disabled since birth. It may be a child with severe learning disabilities that they care for and support while trying to help their child be as independent as possible. It may be a child who was perfectly healthy at birth but in later years developed a disability such as MS, or became disabled as a result of an accident and is now in need of extra care and support. Or, it may be a child that is in an abusive relationship, or the child that has never been able to handle money. It may be a child that had (or still has) an addiction. Whatever the reason, these parents or parent see that they have a vulnerable adult child who will need continuing care and support. But our client can also be an adult child who has been caring for his or her parent, but now that child is ill. I recently met with a daughter who had been battling cancer and knew she would lose her battle in the very near future.  Her mother was able to live independently at home, with her daughter’s assistance.  The daughter wanted to make sure that her mother’s special needs were taken care of, but did not want money left outright to her mother for fear of financial abuse, creditors, predators and the high cost of a nursing home if that level of care became necessary. And in some cases, our client has no children but has a beloved pet and is concerned that no one will care for the pet after their death. We have developed within our firm several trusts that are designed to care for the vulnerable loved ones that our clients may be leaving behind. Those clients understand that they cannot leave money to these individuals outright, since the beneficiaries cannot handle money well and would inevitably be taken advantage of and left unprotected. Our trusts provide peace of mind for our clients, with the knowledge that their loved ones will be cared for and not exploited. If you’re ready to start getting your estate in order and secure your assets for your loved ones, please give our office a call at 630-585-5200 or 800-310-3100. Your first consultation is absolutely free. We’ll let you know what steps you need to take, right now, to protect yourself and your family. Call now. Sincerely, Rick L. Law Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal, AARP Magazine, TheStreet.com, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future. Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care. Conveniently located off I-88 across from the Aurora Premium Outlet Mall.  Call 630-585-5200 or 800-310-3100 for your free consultation now!

By Attorney Rick Law of Law Elder Law in Western Chicagoland The income and asset control trust is – as we describe it in our office – an open box. The assets you put or “fund” into this trust, along with all income produced from those assets, are completely available to the person or persons who make the trust (the trustmaker). The trustmaker (owner of the assets placed into the trust) is generally also the trustee (manager of those assets). The trust  is for the trustmaker’s use for his or her health, education, maintenance and support while he or she is living.  The trust document includes instructions for such things as who will manage the trust if the trustmaker becomes disabled, how the trust should be managed at that time; who should manage the trust when the trustmaker dies, and what will happen to all remaining assets in the trust. It can be as simple as this: John Smith, Trustmaker, creates an Income and Asset Control Trust (IACT). During his lifetime, John has full access to the assets in the trust and any income the assets produce. When John opens an account in the name of the trust, he uses his own Social Security number and the account owned by“The John Smith Trust Dated [whatever date the trust was signed], John Smith, Trustee.” There is no need to do a separate return for the trust because John reports any interest or gain that the assets in the IACT accrue on his personal income tax return. When John dies, his successor trustee (in this case his daughter Mary Smith) reads the instructions in the trust document, which say: 40% to Mary; 40% to Tom (John’s son); and 20% to be divided equally among the four grandchildren.  Mary, as the successor trustee, must follow those instructions. Because John used our firm, Law Elder Law, all of his assets are properly titled in the trust, including his bank accounts, investment account, stock and residence. Mary proceeds to liquidate everything and put the money into the checking account, which has been titled in John’s IACT, and then she can write checks to the beneficiaries of the trust, following John’s instructions in the trust. No probate, no court costs, no attorney fees (unless Mary wants some help with the trust administration), and no lengthy waiting period to distribute assets. So let’s change this story a bit…..if John had not died but rather become ill, it would be important for John’s trust to state how he wanted Mary to proceed during his long-term care. Did he want everything used for his care? Maybe he really wanted to stay at home,  if at all possible. Did he want Mary to seek the counsel of an elder law attorney to pursue some protection planning? Because John’s IACT was prepared by Law Elder Law, John has given Mary instructions and the ability to do such planning in the trust. And if John becomes so ill that he cannot make decisions, it will be a very good thing that John has power of attorney for property prepared by Law Elder Law that built in the necessary planning powers – not just one of those statutory form you can get online or buy at the office supply store. If you’re ready to start getting your estate in order and secure your assets for the “worst-case” scenario, please give our office a call at 630-585-5200 or 800-310-3100. Your first consultation is absolutely free. We’ll let you know what steps you need to take, right now, to protect yourself and your family. Call now. Sincerely, Rick L. Law, Attorney, Estate Planner for Retirees Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal, AARP Magazine, TheStreet.com, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future. Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care. Conveniently located off I-88 across from the Aurora Premium Outlet Mall.  Call 630-585-5200 or 800-310-3100 for your free consultation now!

By Rick Law of Law Elderlaw.  Providing Seniors and retirees with experienced planning and legal support in West suburban Aurora, Illinois Dementia and chronic illness can be one of the most devastating experiences a family can face.  I have experienced that devastation and responded to it by founding Law Elder Law, a firm dedicated to helping victims’ families not only cope with their grief and confusion, but discover how they can save the assets their loved one has worked a lifetime to achieve.  I’ve seen the incredible burden that is borne not only by the families of my clients, but in my family as well. I’ve watched as family members have exhausted their own health and emotional resources by being sacrificial caregivers.  This sacrifice is a major motivator that has caused me to develop the services and systems of Law Elder Law. We are dedicated to protecting and serving the elderly and those who love them. There are countless lawyers who can help you draw up a will and other papers to tell the courts what to do with your assets when you die.  Just about anyone who has passed the bar exam can write you up a “Death Plan.”  But there are very few who focus on just how to give you or your loved one a “Life Plan.”  What Law Elder Law specializes in is not just how to divvy out your assets when you’re gone, but how to make sure those assets remain intact while you are alive so you have a legacy to leave to your loved ones.   With the cost of nursing home care in Illinois averaging $6,000 per month, a lifetime of savings can be wiped out in a matter of months.  Law Elder Law works to protect your assets, legally, and assure you that you will not be left out of money, out of options, and robbed of dignity. You don’t have to outlive your money or your assets. I have organized Law Elder Law to provide the answers that “throw a lifeline” to individuals in danger of sinking under the weight of a long-term nursing care burden, or those who want to make sure they are never faced with that crisis situation. Sincerely, Rick L. Law, Attorney, Estate Planner for Retirees. Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal, AARP Magazine, TheStreet.com, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future.  Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care.  Call 630-585-5200 or 800-310-3100 for your free consultation now!

By Rick Law of Law Elder Law, Senior Advocates in Aurora, IL Most people want to remain at home for as long as possible as they age. But, some seniors living at home need help with activities of daily living and the cost of hiring in-home help can add up quickly.  Is a nursing home your only option? Most people think that Medicaid will only pay if the senior is in a nursing home and is already impoverished.  Few people know about a special benefit within Medicaid law that allows some seniors to stay at home longer, qualify for assistance with Adult Day care, and even keep more money – all while still qualifying for benefits to pay for care!  This benefit is called the Medicaid Community Care Program. The Illinois Department on Aging’s Community Care Program helps seniors who might otherwise need nursing home care to remain at home by providing help that the senior may need.  This includes help within the home, as well as in the community.  This program allows qualifying seniors to keep their independence, while providing cost effective alternatives to a nursing home. Some of the benefits of the Community Care Program include:

• In-Home Help is available to provide assistance with household tasks and personal care for older adults who are moderately impaired. It could be something as simple as uncapping medications and providing water, or even assisting with personal care, cleaning, doing laundry, preparing meals.  Help with more complex tasks is also included, such as meal planning, shopping and arranging transportation.
• Emergency Home Response Service provides the senior with a signaling device for 24-hour emergency coverage.  That way, if help is needed (such as a fall or a fire), the senior can easily alert the authorities and get fast help.
• Adult Day Services offer older adults the opportunity to interact with other people in a safe, supervised setting outside the home. Snacks and a noon meal are provided, and participants may enjoy everything from arts and crafts to card games. Counseling and physical therapy with trained professionals are also available in some centers. Adult day service centers can greatly help caregiving family members who may need a few hours to themselves, or who work outside the home during the day. In many adult day service centers funded by the Illinois Department on Aging, specialized programs are available for seniors with memory problems such as Alzheimer’s or dementia.

At Law Elder Law, we strive to give our clients the best possible outcome – and that includes helping them qualify for special programs like this.  We work to ensure our clients are not left exceedingly impoverished, and receive the best care for their specific situation.  Call us at 630-585-5200 or 800-310-3100 today to see if you may meet the eligibility requirements for this special program. Too many families needlessly lose everything they have.  Don’t let that be you. Your first consultation is absolutely free.  We’ll let you know what steps you need to take, right now, to protect yourself and your family.  Call now, because when you’re out of money, you’re out of options! Sincerely, Rick L. Law, Attorney and Estate Planner for Retirees Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal, AARP Magazine, TheStreet.com, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future.  Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care.  Conveniently located across from the Aurora Premium Outlet Mall off I-88. Call 630-585-5200 or 800-310-3100 for your free consultation now

By Elder Law Attorney and Senior Estate Planner Rick Law of Law Elderlaw, serving West suburban Chicagoland Talking about what happens after you pass away isn’t an easy thing to do.  Most people avoid it like the plague…  and that’s normal! That being said, we have to remember that after we breathe our last breath, something does happen to our estate… whether we planned for it or not. Most people think that a will is all you need as you plan for your eventual death.  But these days, things have changed.  You may want to make the process of managing your estate as easy as possible for those you love. If you only have a will, your estate will pass into a court proceeding called probate when you die.  This will help determine exactly who gets what parts of your estate according to your will. If you don’t have a will, your estate will still go through probate and will pass to your rightful heirs (depending on who the state decides that is).  Sounds simple, doesn’t it? The problem is that probate can be a huge weight on your already-grieving family. It can cost many thousands of dollars, and drag on for months… or even years after your death. As you might imagine, if your family is forced to deal with probate for months or years, it can become extremely costly. In addition, what passes through probate is made public record… meaning all your laundry is aired, for better or for worse. In my office, I have seen too many people fail to plan properly. Unfortunately, the person who failed to plan has not only passed their estate to their loved ones, but they have also passed a huge burden onto their children and/or spouse. The good news is, with proper documents in place, you can avoid putting that load on the ones you love after you pass.  With planning that is right for your unique situation, you can put your mind at ease that your family will have the best possible outcome when you die. Always be sure you talk to a qualified Elder Law attorney before you take any steps.  While probate can be expensive and inconvenient, for some it is the best option.  Every person’s circumstances are different… make sure you’re making the right choice for your family before you put anything in place. Too many families needlessly lose everything they have.  Don’t let that be you.  If you need help paying the overwhelming cost of long term care, give our office a call at 800-310-3100.  Your first consultation is absolutely free.  We’ll let you know what steps you need to take, right now, to protect yourself and your family.  Call now, because when you’re out of money, you’re out of options! Sincerely, Rick L. Law, Attorney and Estate Planner for Retirees Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal, AARP Magazine, TheStreet.com, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future.  Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care.   Call 630-585-5200 or 800-310-3100 for your free consultation now!