Indianapolis Elder Law attorneys have been keeping a close eye on long-term care costs and the news is not good.

Every year the MetLife Mature Market Institute provides detailed information about the current state of long-term care costs.  Since we are now in 2012, they have the 2011 figures and they have made them available to the public via their annual survey.

Industry experts have predicted that long-term care costs will continually rise into the foreseeable future, and these 2011 numbers compiled by MetLife would confirm their suspicions.

In 2010, the national average cost for a single day in a private room in a nursing home in the United States was $229. In 2011 that number went up by 4.4% to $239.  If you multiply that figure by the 365 days that are in a year, you find that the national average cost for a yearlong residence in a private room in a nursing home in the United States in 2011 was $87,235.

In Indiana the average daily cost for a private room in a nursing home was very close to the national average at $234.

A month in an assisted living community in the United States in 2011 came with a $3,477 average price tag, which is a 5.6% increase over the 2010 figure of $3,293.

It is important to note that most senior citizens will require long-term care eventually and the average length of stay is between two and four years.

Clearly, long-term care expenses are something to budget for when you are planning for the future, and the sooner you get started sticking to an intelligently conceived long-term financial plan the better.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Estate Planning can be seen as a purely financial endeavor that directs the transfer of assets to your loved ones after you pass away.  But if you start to think about the future as you are executing a plan, you may start to consider the holistic picture.

People don’t usually pass away suddenly when they are in good health, although this does of course happen when individuals are involved in fatal accidents.  The natural process of aging brings certain realities along with it, and the different stages of life should be planned for in advance.

The suggestion here is to look at retirement planning and Estate Planning as components of a comprehensive plan for aging and eventual death.  For the retirement phase you have the active retirement years, and this is a period of time that a lot of people look forward to quite anxiously.

If you’re going to be able to retire and enjoy your free time to the utmost you need to plan ahead intelligently.  Social Security is really just a basic safety net so if you’re going to be comfortable you’re going to have to feather your own nest.

After your active retirement years you may go through a period of time when you need living assistance, and incapacity is a possibility as well.  These are contingencies that should be planned for in advance.

If you concur with the logic above, the wise course of action would be to sit down and discuss your future in its entirety with an experienced, savvy Indianapolis Elder Law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

A lot of people are amazed when they find out how expensive long-term care is these days.  If you calculate the average annual cost for a private room in a nursing home coupled with the average length of stay the reality is that you may be looking at an expense that exceeds $200,000 toward the end of your life.  This is obviously going to be difficult for a lot of people to handle out-of-pocket, and Medicare does not pay for long-term care.

An alternative that exists would be to seek Medicaid eligibility because Medicaid does in fact pay for long-term care.  Because of the fact that Medicaid is technically in existence as a safety net for people who have serious financial need there is an upper resource limit that you cannot exceed if you want to qualify for Medicaid.

This limit is just $2,000, so you may think that there is no way that you will qualify.  The reason why a lot of people can qualify who do in fact have some resources is because not everything that you own counts toward this number.  And, if you are married and you need long-term care and your spouse does not he or she can keep his or her half of the community resources up to a certain amount.

This amount has changed for the better now that we are in 2012.  The healthy spouse may retain $113,640 in countable assets this year as opposed to the $109,560 that held sway in 2011.

Becoming eligible for Medicaid can be a solution to a difficult dilemma.  If you would like to explore possible Medicaid eligibility strategies simply take a moment to arrange for a consultation with a good Indianapolis elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Many people have no idea how much long-term care costs or how likely it is that they’re going to need it.  This is a matter that is swept under the carpet because for one thing many individuals simply don’t want to go there mentally, and when you’re elder years are a long way off the subject may not seem relevant.  But in reality it is a matter that you may want to take into consideration as soon as possible, because the expenses are considerable, most people will need care, and Medicare does not cover long-term care.

Up until now Medicaid has paid for long-term care costs if you can qualify.  As of this writing there is an upper income limit of $1,500, but the healthy spouse may retain his or her half of the assets up to a certain limit and your home, your car, and some personal possessions don’t count toward this eligibility threshold.  So a lot of people aim toward Medicaid eligibility in anticipation of a possible stay in a long-term care facility.

However, the cost cutters in Washington have Medicaid in their sights and this is a matter of great concern to many in the elder law community.  Two out of every three dollars that are spent by the Medicaid program go toward helping seniors and disabled individuals.  40% of all long-term care costs incurred in the United States are paid by Medicaid.  So any cuts to Medicaid are going to impact senior citizens.

Right now there is a committee hatching a plan to trim the federal deficit by $1.5 trillion over the next 10 years.  Within this past year both the Congress and the president have proposed gargantuan cuts to Medicaid.  So it would be logical to assume that the so-called super committee will call for cuts to this program that many seniors rely on heavily.

The only way to be sure that you are prepared is to take the bull by the horns and make sure that you have the personal resources that you need to address your long-term care costs should you incur them.  To map out a plan for achieving this goal, take a moment to arrange for a consultation with an experienced elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

When you ask the typical person on the street about estate planning he or she may well tell you that the exercise is all about drawing up a last will to direct distribution of your assets after you pass away.  Everyone is aware of the last will, and it is indeed the most commonly utilized vehicle of asset transfer in the field of estate planning.

But there are other ways to transfer assets to your loved ones, and the last will is not always the best choice.  And beyond this, there is another type of will that should be included in your estate plan that is called a living will.

Some individuals are under the mistaken impression that a living will is a document that somehow arranges for the transfer of assets while you’re still alive.  These people are probably confusing a living will with a living trust.  In fact, a living will has nothing to do with financial issues at all.

A living will is utilized to express your wishes regarding medical decisions.  People sometimes fall into incapacitated states and become unable to communicate with their physicians in real time.  In some of these cases they are being kept alive via the use of artificial life support systems and there is no hope of recovery in the assessment of the doctors.  With a living will you state how you would like to proceed if you were in such a position.

You can imagine how difficult it would be for your family members to make this decision in your behalf if they had no input from you. In addition, members of your family could disagree regarding the best course of action and this makes a horrible matter that much worse.  You can circumvent this possibility by simply executing a living will with the assistance of an experienced, licensed elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Aging is a natural part of life, and to be frank there are some eventualities that go along with it that are not entirely pleasant.  To mitigate the negative impact of the potential challenges that exist you need to plan carefully in advance.  Doing this involves educating yourself and gaining an understanding of what may lie in wait so that you can take appropriate action to make sure that you are prepared.

Incapacity strikes many people who reach an advanced age.  Sometimes it is mental, sometimes it is physical, and there are times when an individual will suffer from a combination of both.

A lot of people don’t realize just how likely it is that incapacity will strike at some point in time.  The Alzheimer’s Association tells us that around 40% of people age 85 and older suffer from the disease. Alzheimer’s causes dementia, and including other causes upwards of half of the oldest old are experiencing some degree of dementia.  Of course dementia can render its victims incapable of making sound medical and financial decisions.

To protect yourself you can execute documents called durable powers of attorney.  Most people are aware of the fact that powers of attorney are utilized to appoint a representative to act in your behalf in a legally binding fashion.  The fact that these powers of attorney are “durable” allows them to remain in effect after the incapacitation of the grantor.

To plan for possible incapacity you could execute a durable financial power of attorney and a durable power of attorney for health care.  If you want to appoint two different respective decision-makers for each type of decision you’re free to do that.

If you don’t execute these documents, interested parties could petition the court to appoint a guardian to act in your behalf.  Clearly it is preferable to have representatives of your own choosing in place, and this is something that you should discuss with an elder law attorney if you have not done so already.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

You are probably aware of the fact that many people who reach an advanced age become somewhat isolated.  It is also not uncommon for elders to experience reduced mental capacity. These two factors help to make seniors targets of those who would seek to take advantage of them for financial gain.

A lot of elders need assistance of one type or another with their day-to-day living needs, so family members, friends, or neighbors often pitch in.  This is usually fine, but there are occasions when an individual who is close to an elder exploits that access.  Studies find that the majority of instances of elder financial abuse are perpetrated by people who the victim knows.

So when the senior who has been abused recognizes the fact that he or she has been bilked this individual does not come forward to the authorities in an effort to protect the perpetrator.  Part of it is because of the fact that the victim doesn’t want to see the person get in trouble, but another part of it is that he or she actually needs the assistance that is provided by this financial abuser.

Now that we live in the digital age elder financial abusers have a new forum within which to operate.  As we all know you can access your bank and brokerage accounts online and transfer funds electronically.  As a senior who is trying to take steps to avoid abuse, it is important to closely guard access to your accounts.  Don’t give out sensitive information and make sure that your passwords are secure.  You can also subscribe to some type of identity protection service that will monitor your identity and shield you from identity theft.

Elder financial abuse can take many forms in the age of the Internet, and this is important to remember as you enter the latter stages of your life.  To take legal steps to protect yourself, simply arrange for a consultation with an experienced elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

A lot of people do not concern themselves with budgeting for potential long-term care costs because they’re under the impression that Medicare will cover these expenses.  In reality, Medicare does not pay for an extended stay in a nursing home or assisted living facility.  And if you’re thinking that it will be simple to adjust to these expenses should they arise, you may not be aware of the present state of long-term care costs.

Every year the MetLife Mature Market Institute culls a great deal of research data on the subject and publishes it in a report.  According to this year’s report, in 2010 the average cost for a year-long stay in an assisted living community in the United States was nearly $40,000.

A year in a private room in a nursing home would run you just over $83,500 on average. According to the United States Department of Health and Human Services men who need long-term care require it for 2.2 years; for women the figure is 3.7 years.  Given these statistics, you could be looking at a very significant expense.

Some people respond by doing what it takes to qualify for Medicaid, which does pay for long-term care. You can’t have assets exceeding $1,500 in Indiana, but some things don’t count, such as your home, your car, and some valuables.  So there is such a thing as a Medicaid “spend down” strategy. It’s basically self-explanatory: you spend down your assets until you get within the Medicaid resource limit.

However, there is a five year look-back period.  If you give away assets in an effort to qualify for Medicaid within five years of applying you are penalized.  The penalty is based on the amount of money that you gave away as compared to the average cost of long-term care in the state within which you reside.

If you’re interested in finding out more about Medicaid and how it may fit into your incapacity plan, simply arrange for a consultation with an experienced elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

It is important to know under which conditions guardianship and/or conservatorship responsibilities will apply and what the procedure is in order for the rulings to be made. Guardianship can apply to anyone who is considered by the courts to be disabled in a way that makes them unable to take responsible actions or to those who are minors and therefore need the assistance guardianship and conservatorship will offer.

Some states combine the duties within the designation of guardian, but traditionally a conservator handles financial decisions in behalf of the ward and the guardian takes care or personal decisions.

A guardianship ruling can apply to a person who is mentally incompetent for one reason or another, or suicidal or psychotic in a way that makes it clear that he or she is unable to make decisions relating to legal, medical or financial matters.

In all cases where guardianship is being considered for an adult individual, there will need to be a report submitted to the deciding court from medical professionals who are fully accredited.

The request for guardianship will normally be granted should these reports indicate that the individual is suffering from incapacity due to severe mental illness or age related diseases such as Alzheimer’s disease.

It should be understood that guardianship does not always have to be total.  Partial guardianship can apply to an individual who has a conservator appointed for their financial affairs while the individual retains control of his or her personal affairs.

In the case of both conservatorship and guardianship, those responsible have duties defined by each state.  It is very important that as a guardian or conservator you clearly understand what your legal duties are regarding reporting to the courts and the frequency at which these reports will be required.  Make sure you have a good estate planning lawyer to counsel you in advance of taking up your duties!

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

There are some things that you hear about that are so underhanded it really makes your blood boil, and it would probably be safe to say that elder financial abuse would fall into this category.  The thought of someone specifically targeting a senior citizen is really horrible, but the reality is that this is a big problem in our society today and it is something to be aware of.  According to the United States Department of Justice one out of every nine Americans who is at least sixty years of age has been victimized by at least one instance of elder financial abuse.

The MetLife Mature Market Institute just released a report that is formally titled The MetLife Study of Elder Financial Abuse: Crimes of Occasion, Desperation, and Predation Against America’s Elders, and it sheds some light on the subject.  “Crimes of occasion” are described as being instances when an individual see an opening to take advantage of a senior citizen and decides to pounce without having specifically planned on abusing anyone.

The “crimes of desperation” are usually committed by family members and others who are known to the victim when they are simply in dire need of money for one reason or another.  And “crimes of predation” are cases when the criminal is actively seeking out elders to exploit or flat-out steal from.

According to the analysis that was provided by the MetLife Mature Market Institute in 2010 a staggering $2.9 billion was lost to instances of elder financial abuse.  This represents a 12% increase over the $2.6 billion that was lost in 2008.  And these are minimum estimates; since so many cases go completely unreported there is no way of truly knowing exactly how much money is lost due to elder financial abuse in the United States.

To learn more about this scourge and how to protect yourself, take a moment to arrange for a consultation with a licensed elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.