1 mile west of the Chicago Premium Outlet Mall (800) 810 3100
By Rick Law,  Estate, Asset & Retirement Tax Attorney at Law Elder Law in Western Chicagoland. It’s a statement I used to hear all too regularly at the height of the recession.  Clients coming into my office would lament,  “We have lost so much in our mutual funds that I should just sell EVERYTHING and start over.”  I would ask, “How do you know that you have a taxable loss?”  Typically, the answer was something along the lines of, “Everybody knows that the whole market is down by at least 40%! That’s how I know.” The markets are arguably in a better place than even a couple years ago, but still, many people are panicking and making the same big mistakes in dealing with investment losses.  The two main errors made are:
  • Thinking that perceived investment losses are the same as tax losses; and
  • Failing to understand that any withdrawal from an IRA, 401(k), or 403(b) will always be treated as ordinary income.
The loss our client feels is what I call the “the quarterly statement loss,” but it is not usually the same as a taxable loss. If you ignore Mr. Taxman’s rules, you could wind up compounding your losses.  The way to compute a taxable loss is to look up what you originally paid for an asset and compare that purchase price to the current sale price.  Let’s say that your rental property would sell today for $200,000, but in 2015, it would have sold for $300,000. What kind of a loss have you suffered?  Does the tax-man think that you have a loss?  The answer is, no! If you bought your investment real estate at $300,000 in 2014, and in 2016 you sell at $200,000, then Mr. Taxman will agree that you have a long-term capital loss of $100,000 (please assume that we are ignoring depreciation and other adjustments). But, if you are like most of my clients, you may have purchased the asset a long time ago at a price that is lower than today’s sale price.  If you sell today, you may have a significant tax bill, even though you feel like you have ‘suffered’ a loss of value. For example, if you bought the rental property in 1975 for $50,000, the actual gain or loss will be computed from the original sales price (less any depreciation that you took as a deduction on an annual basis) compared to the current sales price.  So, if you sell that property now, you will be looking at a significant taxable gain. It’s critical that you remember that money in your IRA represents deferred wages.  No matter when or how the money comes out of your IRA, it will be treated as if you are now receiving those wages.  You pay the income tax rate to the federal and state government.  The government never allows you to treat IRA withdrawals as a tax loss. 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 800-310-3100 for your free consultation now!  
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by Rick Law, founder of Law Elder Law, Estate, Asset & Retirement Tax Attorneys in the West Chicago suburb of Aurora in Illinois. Recent studies reveal that nearly 70 percent of those 65 and older will eventually need some sort of long-term care assistance. When a family reaches the point where it becomes necessary for an affected loved one to enter a nursing home, it is one of the most difficult decisions they will ever have to make. When Alzheimer’s disease has progressed to the point where the affected loved one can no longer live alone, or when the primary caregiver can no longer provide the level or expertise of care that is necessary, a move to a nursing home is the next stop on the Alzheimer’s care journey. As always, having a plan and knowing the right questions to ask beforehand provides invaluable help to those in need. I counsel my clients to visit several different nursing homes before narrowing down their choices. Within urban areas, there are companies that specialize in connecting prospective nursing facility residents with facilities. One nationwide organization is called A Place for Mom (www.aplaceformom.com). This type of organization is compensated by being paid a commission from the long-term-care facility. Because the organization is paid on commission, they may not have listing contracts with all facilities; therefore, one may not be shown the entire panorama of options. This statement is not meant to be critical, but rather to express the possible limitations of such services. The Centers for Medicare and Medicaid Services rates nursing homes. The system is called the Nursing Home Compare. It includes ratings of nursing homes based on quality measurements, staffing ratios, and health inspections. The website is www.medicare.gov/NursingHomeCompare. Once clients have found a few facilities that look like good options, they should visit each one several times, preferably at different times in the day and at least once during a meal. 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, Estate Planner for Retirees. Rick has been named 8 times as 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
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 From Estate, Asset and Retirement Tax Lawyer Rick Law of the Multi-Generation law firm at Law Elder Law in West Suburban Aurora, Illinois. Due to the nature of typical elder law representation, it is particularly important that we spend time educating our clients and their families to understand the attorney-client relationship.  We have a duty to represent our client, and in doing so, put their minds at ease.  That way, we can ask the important questions when the time comes. To be an elder law attorneys, it is a calling, rather than a calculated business decision.  Usually due to the frailty of someone we love… a parent, a spouse, a sibling… elder law has chosen us. The fact, that the legal advice we provide may be the least complicated piece of the client’s aging puzzle is music to our ears.  My goal has always been to explain how we help, and what next steps we can take, in simple, understandable English…at least when possible. Many times the client’s adult children have an agenda which conflicts with that of the senior. We strive to mediate those conflicts and seek our client’s best interests. We help clients and families put together the “aging puzzle” with its many ill-fitting pieces of frail health, caregiving needs, survivor care concerns, financial decisions, residential options, family relationships, insufficient assets, substitute decision-makers, cumbersome probate, end-of-life decisions, and more. I’ve always hoped to make the planning experience “transformational” rather than “transactional.”  We strive to be more than dispute mediators, or standard document drafters. As elder law attorneys, we empower lives for the better in a way. This often impacts whole families for years to come. We believe that we are providing important services for our clients our communities, and our country. 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, Estate Planner for Retirees. Rick was named the #1 Illinois elder law estate planning attorney for the past 8 years in a row 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!
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By Estate Planning attorney Rick Law.  Rick is founder of the multi-generational law firm at Law Elder Law.  Estate, Asset & Retirement Tax Attorneys serving Kane, Kendall, and DuPage counties in Illinois. One of the goals in our practice is to make the client’s experience “transformational” rather than “transactional.”  This means doing more than simple legal task fulfillment such as resolving a dispute, drafting a document, or closing a real estate deal.  As elder law attorneys, we empower lives for the better in a way which will impact whole families for years to come. We believe that we are providing important services our clients cannot get elsewhere. Our clients rely upon us for more than traditional legal advice.  We help clients and families put together the “aging puzzle” with its many ill-fitting pieces of frail health, caregiving needs, survivor care concerns, financial decisions, residential options, family relationships, insufficient assets, substitute decision-makers, cumbersome probate, end-of-life decisions, and more.  In fact, the legal advice we provide may be the least complicated piece of the client’s aging puzzle. When clients get information from other sources, whether it is the government, a care facility, their banker, or even another family member, the person giving the answers may be well-meaning, but it is not their job to put the senior-client’s interests first. The elder law attorney is the filtering advocate for the frail senior. Our code of legal responsibility demands that we place our client’s interests first. The scope of our legal services is defined by the client’s overall circumstances. We work at the juncture of estate planning, disability, Medicare, Medicaid, VA benefits, financial planning, health care, family dynamics, tax law, and medicine. 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 800-310-3100 for your free consultation now!
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 By  Attorney Rick Law of the Estate, Asset and Retirement Tax law firm of Law Elder Law, home of the Estate Planning Center at Law Elder Law in Aurora, IL. As a prospective client, it’s completely reasonable for you ask your attorney about their own succession plans. I was born in 1950 and my life expectancy is about 14 more years.  When I was on vacation a few years back, one of my attorney acquaintances died suddenly of a heart attack. He was 61 and a sole practitioner… kind of leaves you to wonder;  was he ready for the unexpected? What’s happening with his client’s files?  Thankfully, Law Elder Law is a multigeneration firm filled with talented and personable lawyers, not the least of which is my Daughter, Diana. Whatever attorney you choose, they should take no offense if you ask, “How old are you?”; “How will you keep track of my secure files in the future?”; and “What is your succession plan if something happens to you?”  Every client deserves to know the answers to those questions. Here at Law Elder Law one of our goals is to run our law practice with modern, business-style systems designed to care for our clients every step of the way.  Our systems begin with sending our message to prospective clients and ends with our final information and electronic file storage.  But most importantly, at Law Elder Law we provide services to our clients as a team.  Running a law practice today requires management of much more than just the legal work, and we take that seriously—for ourselves and for our clients. Let me leave you with a story; Lola finished signing her estate plan documents and looked up at me and sighed, “That is such a relief!  Every time we drive in bad weather, I worry about dying before we have provided for our granddaughters.” She has a lovely Spanish accent, so those words were definitely music to this attorney’s ears. But then with a note of concern, she looked directly at my face and asked, “How old are you?”  Her worry had just changed from completing her estate plan to worrying about whether or not I would outlive her. She wanted to feel confident that I would be around to help provide guidance for her granddaughter’s trust. And rightfully so! “ I am 65,” I responded, “and the good news is that Law Elder Law has a second generation built-in. I am the oldest at our firm, but we have many young, capable people here to hold your hand if something happens to me.” 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, 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!
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By Estate, Asset and Retirement Tax Lawyer Rick Law of the Estate Planning Center at Law Elder Law.  Familial caregivers are typically compensated according to what the state along with your attorney determines to be “Fair Market Value”.  This may prevent transfers of money from one family member to the next from being counted as gifting or Medicaid spend down, when substantive caregiving services were rendered. Once your elder law attorney has provided an evidentiary basis to prove that the transfer of assets were for fair market value, they still must demonstrate that the transfer of assets was made for reasons other than to qualify for Medicaid or that the elder receiving the caregiving services intended to pay for the services. Simply providing verbal assurances that seniors were not considering applying for Medicaid when they transferred assets to the caregiver child is not sufficient proof that the assets were transferred for a reason other than to qualify for Medicaid. It is important to recognize that anyone applying for nursing home Medicaid benefits is burdened by the presumption that any transfer of assets for less than fair market value is deemed to have been motivated by an intent to impoverish oneself to qualify for Medicaid benefits. While the presumption is rebuttable, those who sit in judgment of the evidence are the employees of the state Medicaid department who do not often rule in favor of the Medicaid applicant. The senior needs to have a written personal-care agreement and extensive supporting documentation. However, even though the parties to the personal-care agreement may have anticipated being forced to use nursing home Medicaid when and if the senior’s assets become exhausted, that does not preclude them from giving “reliable proof” that the senior intended to receive valuable services in exchange for the transfer of assets. Hearing officers and judges will examine the senior’s personal-care agreement, looking for reliable proof that the assets were exchanged for valuable services. There is some disagreement as to how specific the written agreement must be, but it is best to make the agreement as specific as possible. In some states, it may be essential that the personal-care agreement be entered into prior to services being rendered. In other states, those reviewing the contract will be looking for specifics such as how long the services will last, how many hours per week, what standards of services are being provided, and what, if any, provisions provide for a refund. In some cases, those reviewing the contract may investigate whether the services mentioned in the agreement were actually the services that were performed. Thus, while a valid, written caregiver agreement is a necessity, it is difficult to find a universal standard for what must be included in the agreement. 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, 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!
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By Elder Care Attorney Rick Law.  Founding Partner at the Estate, Asset and Retirement Tax Lawyers at Law Elder Law in Aurora, IL.  Just off of the I-88 tollway. So, what is considered “Fair Market Value” in regards to a personal care agreement? The first thing a hearing officer or judge usually checks when evaluating a personal-care agreement is whether caregivers are being paid fair market value for their services. This is especially the case when the services are being performed by a family member. While services performed by relatives are often presumed to be gratuitous, the State Medicaid Manual states that “relatives and family members legitimately can be paid for care they provide. The State Medicaid Manual further explains that the Medicaid applicant is required to show that the funds transferred to the related caregiver and the services received were exchanged for fair market value. “Fair market value” is defined by the State Medicaid Manual as “an estimate of the value of an asset, if sold at the prevailing price at the time it was actually transferred.” While that may sound simple enough, determining the prevailing price of eldercare services is not as easy as it sounds. Just about everyone in the legal field, including hearing officers and judges, will have a different opinion as to how to determine the prevailing price for caregivers.  There is no legal formula as to how to determine a fair market hourly wage, or even who should make that determination.  AARP provides an estimate of how much home-health aides are paid in each state. In some states, this estimate might be sufficient to show that the transfers in question were made for fair market value. However, some state Medicaid agencies pay their personal-care attendants a much lower hourly wage than private caregivers, and that may skew fair market value. Lawyers should create an evidentiary record as to how they determined a fair rate to be incorporated into the contract. After establishing the fair market rate, your lawyer still may face questions about what services are included and, in the case of Alzheimer’s disease, how wages would change with intensified care responsibilities as the disease progresses. Another issue to consider when calculating the fair market rate is any formal training that the caregiver may have. For example, a child who is acting as her mother’s caregiver and who just happens to be a nurse may have a higher fair market rate than her sister, who is a lawyer. Unfortunately, there is a great deal of uncertainty when it comes to determining fair market value. 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, 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!  
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By Attorney Rick Law of the Estate, Asset and Retirement Tax Lawyers at Law Elder Law.  Home of the Estate Planning Center at Law Elder Law in the Western Chicagoland suburb of Aurora, in Illinois. I grew up (like most baby boomers) in the age of the TV Cowboy Hero. We were saturated with the “Code of the West” as the good guys of the cinematic Old West rode, roped, and fought their way into our hearts and minds. The Good Guys wore white hats (with the exception of Hopalong Cassidy) and selflessly fought evil as they helped the poor, oppressed, innocent, and vulnerable. It was always easy to recognize the Bad Guys… They didn’t just rustle stock from the honest folk. As a clear allegory for our now adult lives, the bad guys often came in the form of bankers and businessmen… misusing their power and position to cheat good and hard-working citizens out of their homes, ranches, and livestock. Like many idealistic law students, I carried that “cowboy code” inside me. I imagined using my legal skills to fight injustice and protect the innocent—just as my heroes had done. But I soon found that real lawyering is seldom as glamorous and interesting as a TV show, so I spent the better part of my first 25 years becoming very efficient and effective at moving mountains of documents for clients, mostly real estate and tax documents. It was not the work of a hero, but it paid the bills. Around 2000, due in large part to the aging issues of my parents, and my parents’ generation, I became a part of a small “tribe” of lawyers who practice elder law.  A combination of estate planning, taxation, health care, Medicare, Medicaid, elder abuse, and more, elder lawyers focus on assisting the frail and elderly to help achieve their goals of quality health care, while striving to avoid needless impoverishment. As I mentioned, I have been touched by a loved one’s long-term illness or a disability, and because of this, I strive to help the ones who need help the most; the widow(er), the caregiver spouse/adult child, and the frail elderly.  That, to me, makes being an elder law attorney the modern equivalent of Dale Evans, Roy Rogers, or Hopalong Cassidy. 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, 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!  
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