If you were to become incapable of handling your own affairs due to mental or physical incapacity, interested parties could petition the court to appoint a guardian to act in your behalf.  You may have no say about who this guardian is going to be, and if the petition is granted you could become a ward of the state.

This is a prospect that is not appealing to many people, but the good news is that you can avoid guardianship proceedings if you engage in intelligent incapacity planning.

There are a lot of good reasons to create a revocable living trust, and the fact that these trusts enable probate avoidance would be at the top of the list.  Probate can be a long drawn out process that stands in the way of your heirs receiving their inheritances in a reasonably quick and efficient manner.  Probate is also expensive and it is not uncommon for costs incurred during the probate process to consume between 5% and 10% of the overall value of your estate.

But in addition to providing for asset transfers outside of probate, you can include provisions in a revocable living trust agreement that could circumvent the need for guardianship proceedings should you become incapacitated.  A lot of people who create a revocable living trust will serve as the trustee while they are still alive and well.  But you could include the appointment of a disability trustee who would take over and handle the administration of the trust in the event of your incapacity.

This is just one way to prepare yourself for the possibility of incapacitation. To explore the matter in greater detail simply take a moment to arrange for a consultation with a licensed and experienced Indianapolis estate planning 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.

Planning for retirement involves more than simply financing the active period that will immediately follow your working career.  Many people are surprised when they hear that the segment of the population that is at least 85 years of age is growing faster than any other.  And of course advances in medical science take place virtually every day, plus people are learning more about how lifestyle choices impact their longevity.

It’s great to live a long life, but you must be prepared for the expenses that go along with reaching an advanced age.  According to the United States Department of Health and Human Services, around 70% of senior citizens will eventually need long-term care.  This care is expensive, with the average cost for a year in an assisted-living community in the United States in 2010 approaching $40,000.  To be able to address these expenses you must plan ahead and be aware of all of the resources that are available to you.

To this end veterans of the United States armed forces would do well to be aware of an often overlooked benefit called the Veterans Aid and Attendance special pension, which is often shortened to “Veterans A & A.”  This benefit is intended for wartime veterans who are defined as having financial need who require assistance with their routine day-to-day tasks.

From a financial perspective, there is a resource limit of $80,000.  But your home, some personal property, and your car or truck don’t count toward this figure.  In terms of length of service, to qualify you must have served for at least 90 days with no less than one of these days taking place during a time of war.

Veterans A & A can be a big help to former military personnel who need long-term care assistance. The Veterans Benefits Administration can fill you in on all the details and they can be contacted in person, online, or over the phone.

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

Estate planning clearly involves arranging for the transfer of assets to your loved ones after you pass away.  But, when you are making preparations for the future it would be wise to consider all the eventualities of aging.  There are elder law issues that you may face when you reach an advanced age, and you may not be in a position to respond to them at that time.  Therefore, to be fully protected you must make advance preparations with the assistance of an experienced elder law attorney.

One of these eventualities would be incapacitation that renders you unable to make sound medical and financial decisions.  Statistics indicate that upwards of half of all people who reach the age of 85 and older are suffering from some form of dementia.  You may be surprised to hear that this age demographic is the fastest growing group among us, so it is quite possible that you will live into your mid-80s and perhaps beyond.

If you were to be deemed incapacitated without making any advance preparations, you could become a ward of the state and a guardian would be appointed to handle your affairs.  This can be avoided by executing documents called durable powers of attorney.

Most people have heard of powers of attorney.  They are legal instruments that are used to appoint an agent to act in your behalf in a legally binding fashion.  However, standard powers of attorney are no longer recognized should the grantor become incapacitated.  Durable powers of attorney on the other hand do indeed remain in effect upon the incapacitation of the grantor.

You may want to execute two durable powers of attorney: one for health care decision-making, and one for financial matters.  This is because of the fact that you may not feel as though the person that you would like to see making your medical decisions is the best choice as a financial decision-maker.  By executing two separate documents you can name two different agents to act in your behalf, one for health care matters and one for financial decisions.

If you do not currently have an incapacity plan in place that includes durable powers of attorney, you would do well to be proactive and contact an experienced elder law attorney to arrange for an incapacity planning consultation.

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

Estate planning is something that adults of all ages should take seriously because no one can predict the future and any day could be your last.  This having been said, without question estate planning is going to become more and more immediately relevant as you reach the latter stages of your life.  Of course you are going to be very focused on making sure that your loved ones are provided for after you pass away, but there are some other things to take into consideration as well.  One of them is the possibility of incapacity.

One of the most surprising demographic statistics that you will hear involves the rapid aging of the population.  The “oldest old” is a term that is used in geriatrics to describe those who have reached the age of 85 and above.  This group is the fastest-growing among us, so the reality is that you may well live into your mid-to-late 80′s and beyond.

According to the Alzheimer’s Association 13% of people who reach the age of 65 are suffering from Alzheimer’s disease.  This percentage increases with age, and some 43% of the oldest old are Alzheimer’s sufferers.  Alzheimer’s disease causes dementia and of course this can render the patient unable to make sound financial and medical decisions.

When you pragmatically assess the above statistics it becomes clear that one must make plans in advance to address the possibility of incapacitation.  The way that this is routinely done is through the execution of durable powers of attorney.  You may choose to execute two different powers of attorney, one for financial decision-making and one for medical decision-making and name a different respective attorney-in-fact for each.

If you were to become incapacitated and unable to make your own decisions without taking any steps to protect yourself, a guardian could be appointed to act in your behalf by the court and you could become a ward of the state.  If you wait too long, you could find yourself in this position.  Most people would prefer to choose their own potential representatives, and this is a large part of what incapacity planning is all about.

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

When you are interested in planning your estate, you can’t help but think about the period of time that will precede the trigger event, and of course this is as it should be if you want to make comprehensive plans.  You may have very specific goals that you want to accomplish with your legacy, and how well you plan for the latter stages of your life will have a significant impact on what it is that you have to leave behind to your loved ones.

When you have the larger picture in mind there are things to consider beyond the financial components of your estate plan, and foremost among them would be matters pursuant to health care.  People are living longer and longer these days, and given the advances that take place in medical science on a regular basis, it is logical to assume that this upward trending will continue. As it stands the oldest old, people who are least 85 years of age, are the fastest-growing group in the country.  At the same time, four out of every ten of these elders is suffering from Alzheimer’s disease and upwards of half of them are experiencing dementia in one form or another.

The fact is that there is a very real possibility that you will be unable to make medical decisions on your own behalf toward the end of your life.  For this reason it is a good idea to state your intentions via the execution of a living will and appoint an attorney-in-fact to act on your behalf via the creation of a health care proxy or durable medical power of attorney.  When you have these documents in place, you leave nothing to chance and you can be certain that your wishes will be carried out and a person of your choosing will be the ultimate decision maker should incapacity befall you at some point in time.

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

On the surface estate planning may seen like a pretty cut and dried matter. You make an appointment and spend some time with an estate planning lawyer, draw up a will or a trust, and that’s it, end of story.  This can can be the way you go about it, but if you want to be sure that you are truly prepared for all of the eventualities of aging, you would do well to take a more comprehensive approach.

Ii is human nature to assume that the state of consciousness that you are in at any given time will persist throughout your life.  So when you visualize the end of your life and the period preceding the distribution of your estate, all you can do is expect that you will feel more or less as you do right now mentally up until the time you pass away.  Unfortunately the statistics tell a different story, as hard as it may be to accept.

Just about everyone has heard of Alzheimer’s disease, but unless you have a family member who has contracted it or you happen to have done a considerable amount of research, you probably don’t know just how widespread this affliction has become.  It is estimated that one out of every eight senior citizens has Alzheimer’s disease.  Some 50% of those who reach the age of 85 are Alzheimer’s sufferers.  Clearly Alzheimer’s disease is a ubiquitous problem by any logical barometer and it would seem as though it is going to get worse before it gets better given the rapid expansion of the elder population.

Alzheimer’s disease causes dementia, and among other things dementia limits one’s ability to analyze data and make sound decisions.  Preparing for the possibility of Alzheimer’s disease impairing your decision-making abilities makes incapacity planning a necessity.  Unless you have already addressed this contingency it may be a good idea to consult with an elder law attorney and do what is necessary to protect yourself and your family from the challenges that Alzheimer’s disease can present.

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

Estate planning is usually seen as something that involves the distribution of your assets after your death, and rightly so.  But the totality of the matter blends into the period of your life that precedes your passing.  Why is this?  To put it bluntly, if you don’t have anything left when you die any planning that you may have done regarding inheritances is not going to have a whole lot of value.

Obviously there are those who have sufficient assets to easily handle any and all eventualities that may come their way and sill have more than enough resources to leave a poignant legacy. But a lot of people fall into a gray area where they may or may not have significant assets to pass on to their loved ones depending on various contingencies.  One of the things that people who fit into this category would do well to consider is the cost of long term care.

The facts would indicate that it is quite possible that you may be spending some time in a nursing home or assisted living facility; about half of all seniors will reside in a nursing home at some point in time.  The average stay is about two and a half years.

Now let’s take a look at the costs associated with long term care.  According to the annual MetLife market research study, the average annual cost for a year in a private room in a nursing home in 2009 was $79,935.  That number rose in 2010 by 4.6% to $83,585. The costs associated with residing in an assisted living facility rose at an even higher rate of 5.2%, from an average of $37,572 in 2009 up to $39,516.

These numbers are high, they are on the rise, and industry experts expect this upward trending to continue.  Planning is key, so when you are budgeting for the future take these costs into consideration and act accordingly.

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

When you decide to do some research into estate planning you will invariably see a number of legal instruments referred to that you may not be entirely familiar with. Advance health care directives can fall into this category for many people, so we would like to provide a brief overview to give you an idea of what these vehicles are intended to achieve and why they are important.

The most commonly used advance health care directives are the living will and the durable medical power of attorney or health care proxy. People are living longer than ever, and these expanding lifespans increase the possibility of a period of incapacity at some point. And of course people of all ages can become incapacitated as a result of an accident or due to a sudden and unexpected illness. Advance health care directives are documents that you can use to state your wishes with regard to medical matters in advance should you become unable to communicate them.

With a living will you can directly communicate the types of medical procedures you would be willing to accept and those that you would prefer to deny in the event of your incapacitation. The core issue in most living wills is the matter of being kept alive through the use of artificial life support systems when there is no hope for recovery.

The durable medical power of attorney is used to select someone that you empower to make health care decisions in your behalf should you become unable to make them for yourself due to incapacity. The reason why many people execute both of these advance health care directives is because it can be difficult to address every possible medical contingency in a living will. When you name a health care proxy, he or she can act in your behalf in situations that may not be covered in the living will.

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

One of the top stories in the elder law community of late has been the rising cost of long term care. This is a very complex matter because the playing field is changing as the costs are rising, and there are no easy answers. Let’s start by recapping the costs associated with long term care, which we have touched on previously in this space.

According to a MetLife market survey, in 2010 the national average charge for a day in a private room in a nursing home was $229; this factors out to over $83,500 per year, which represents a 4.8% increase over 2009 numbers. In the state of New Jersey the average is into the six figures.

The cost of a year in an assisted living facility rose by even more. In 2009 the charge for a year’s stay in an assisted living facility averaged $37,572 in the United States. In 2010 it was $39,516, and that is a 5.2% increase. Once again, these numbers are larger in the Garden State, where a year in an assisted living facility would set you back over $54,000 on average.

These costs are attention-getting at present, but if they continue to rise at about five percent every year for the next five, ten, or twenty years they may be truly suffocating by the time you need long term care. This is a challenge that can be addressed by the purchase of long term care insurance.

Long term care insurance is expensive in its own right, but you can get locked in at a lower rate if you obtain the coverage when you are in your forties or fifties. A person who is fifty-years-old may pay about $150 a month for coverage, while a sixty-year-old may be looking at a $250 monthly payment (these are broad estimates).

The suggestion here is to do some research on the matter and compare some quotes if you find that long term care insurance sounds like a viable solution given the specifics of your financial situation. The longer you wait before purchasing the coverage the more expensive it will be, and coverage is not going to be offered at all once you reach an advanced age.

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