In This Issue:

1. Buffett backs Estate Tax

2. Connectedness: a Key Factor in Wanting to Remain Home

3. Holiday wishes from the Farr Law Firm

4. About The Firm

Buffett backs Estate Tax

Billionaire Warren Buffett urged Congress to preserve the estate tax, saying that plans to repeal it would benefit a handful of the richest American families and turn the country into a “plutocracy.” Buffett, the chairman of Berkshire Hathaway and the second-richest man in America testified before the Senate Finance Committee on Nov. 14, 2007. He told the panel, which is exploring ways to replace the ever-changing rules of the current estate tax system, that advocates of repeal are “dead wrong” to call the tax a “death tax.”

Buffett said it would be more appropriate to call it a “death present” because heirs get to calculate their capital gains on inherited assets based on the price when they inherited them rather than when the decedent originally bought them.

Buffett noted that so few Americans are subject to the estate tax that “you would have to be at 200 funerals to attend one where the decedent paid the tax.”

Currently, only estates worth more than $2 million are taxed by the federal government. The threshold is scheduled to rise to $3.5 million in 2009. For the year 2010, estates will be entirely free from federal taxation. However, the law that includes this provision expires at the end of 2010. Thus, unless Congress acts in the interim, the estate tax exemption will then revert to $1 million.

Senators on both sides of the aisle agreed that complete repeal of the estate tax will not happen anytime soon. “I think everyone in this room knows we’re not going to repeal the estate tax. It’s not going to happen in the foreseeable future,” said Committee Chairman Max Baucus (D-MT).

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Connectedness: a Key Factor in Wanting to Remain Home

One of the common myths is that a majority of the 60+ population pack up their belongings and moves to warmer climates as they age. According to AARP’s 2006 report, “Aging, Migration, and Local Communities: The Views of 60+ Residents and Community Leaders,” only about nine percent, or 4.4 million people age 60+, moved beyond their county in the five years prior to the 2000 Census. In contrast, 9 in 10, or 41.5 million of Americans 60+, remained at home or in the same county.

As are especially nurtured around the holidays, this study reveals that the relationships that people share with each other are a key factor in their decision to remain at home and in the community.  “Connectedness to family, friends and community is truly the emotional fabric of our society and these relationships are key factors in the decision to stay or move,” said Nancy LeaMond, Group Executive Officer, AARP. “Whether the community has a booming new 60+ population or a stable group of 60+ residents, the influx of Baby Boomers in the upcoming years will challenge community leaders to plan ahead accordingly for medical care, transportation options, and social services.”

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Holiday wishes from the Farr Law Firm

On behalf of all of us at the Farr Law Firm, we wish you a joyous holiday season! Have a restful and safe holiday!

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“Untreated Pain can lead to Depression, Fear, Anxiety, and Suicide”

Pain should never be considered a “normal” part of the aging process.  Pain can be a sign of a serious problem and should never be left untreated or undertreated.  Both untreated and undertreated pain can lead to depression, fear, anxiety, and even suicide.  An important safeguard some families may want to consider is an asset protection plan – by preserving assets in contemplation of Medicaid down the road, extra items and services can be obtained as needed – items and services which could otherwise be unaffordable and not paid for by Medicaid. 

Overmedication of the elderly has been widely reported and is an issue that many seniors, caregivers, and family-members take seriously.  On the other hand, under treatment of pain can lead to equally serious consequences, both for the patient and the caregiver alike.   According to a recent study, as many as 40% to 80% of elderly nursing home residents are inadequately treated for pain;^[1] undertreating the pain of an elderly patient has been considered a form of elder abuse.^[2]

According to the American Geriatric Society,^[3] “pain has no objective biological markers.”  It is essential for caregivers and family members to recognize signs of pain.

If communication is problematic, look for:

• Audible discomfort (cries, moans, shrieks)
• Distress when touched in certain areas
• Restlessness
• Uncharacteristic immobility^[4]

Fortunately, there are legal mechanisms to achieve peace of mind for you or a loved one.   Services offered by a local Certified Elder Law Attorney can protect assets and provide peace of mind.  Protected assets do not have to be “spent down” in connection with entry into a nursing home.  Once Medicaid is paying for long-term care, the protected funds can be used to purchase items not covered by Medicaid, which can include the hiring of a “helper” or “sitter” to monitor an individual for signs of pain, medication administration, and more.  Other things not covered by Medicaid include hearing aids, glasses, and dental work.

The goal of any Elder Law Attorney should be to keep his client’s interests at the forefront of all conversations related to asset protection.  If you or a loved one is experiencing pain – or if you believe a loved one is experiencing pain but you are not sure, your first step should be to contact a licensed Medical Practitioner immediately, and then call your local Elder Law Attorney.

Americans value the appearance and aesthetics of skin.  After all, the appearance of one’s skin provides others with silent clues concerning age, vitality and health.

Unfortunately, skin cancer incidence is on the rise, especially among seniors.  There are more cases of skin cancer per year than all forms of cancer combined.  One in five seniors aged-70 has had melanoma, and survivors are nine times more likely (compared to the general population) to develop melanoma again.

“Incapacity Planning” is especially appropriate for melanoma survivors, because of the risk of future incidence.  Due to the unfortunate rate of recurrence, planning for the disease – especially after surviving a bout with it once – is difficult but smart.  It’s also expensive to fight the disease: $28,000 on average, according to at least one study.

Avoiding damaging ultraviolet rays can preserve your skin.  As we grow older, skin loses its smoothness and elasticity and veins and bones become more noticeable.  To an extent, this aging process is unavoidable. Most seniors know to take precautionary measures such as wearing adequate sunscreen, hats, and avoiding tanning beds.

A lesser known risk factor is tobacco. Researchers found that current smokers developed “squamous cell carcinoma” 3.3 times more frequently than non-smokers.  Quitting reduced that risk down to 1.9 times, so it really never is too late to quit smoking.

A recent study found that 45% of individuals diagnosed with skin cancer were diagnosed by a Dermatologist after setting up a direct visit based on a concern.  Only about 14% were diagnosed after a visit for an entirely different reason.   Just over 25% were referred to a Dermatologist by a General Practitioner.  The key is to remain proactive.  If you think something may be wrong, make an appointment.

Proper financial planning is a smart choice for families who have already courageously fought this disease once. Incapacity planning ensures loved ones that they do not have to suffer the delay, inconvenience, complexities, and expenses of the process called “living probate.” Attending seminars and meeting with your local elder law attorney will provide you with vital information.  Remember, “Life is inherently risky.  There is only one big risk you should avoid at all costs, and that is the risk of doing nothing.”

In the year 1919 President Woodrow Wilson proclaimed November 11 as Armistice Day to honor those Veterans who served during World War I. On November 11, 1954, Armistice Day was proclaimed a legal national holiday and the name was changed to “Veterans Day” to honor all veterans of all wars.

Every November 11, ceremonies are held throughout the United States honoring Veterans of wars. A National Ceremony is held at Arlington Cemetery at the Tomb of the Unknown Soldier, where the laying of the presidential wreath and military playing of “Taps” is presented.

More Critical Aid & Attendance Information HERE!

The Department of Veterans Affairs provides three types of long term care services for veterans.

The first are health care benefits provided to veterans who have service-connected disabilities, who are receiving VA Pension or who are considered low income. These services include free medical care, possible free prescription drugs, orthotics and prosthetics, home renovation grants for disabilities, home care, assisted living, domiciliary care, nursing home care, and a possible host of other services or benefits.

The second benefit is state veterans homes. The majority of these homes offer nursing care but some may offer assisted living or domiciliary care. The Department of Veterans Affairs in conjunction with the states helps build and support state veterans homes. These homes are generally available for most veterans and sometimes their spouses and in some cases for so-called “Goldstar parents.” Veterans homes are run by the states, sometimes with the help of contract management. There may be waiting lists in some states.

More Critical Aid & Attendance Information HERE!

The third benefit for veterans is disability income programs. The most familiar of these benefits is an income for service-connected disabled veterans called “Compensation.” The least known of these is a program officially called “Pension” but popularly known as the “aid and attendance benefit.”

• All active-duty veterans who served at least 90 days during a period of war are eligible for Pension and the additional income from aid and attendance or housebound allowances. A single surviving spouse of such a veteran is also eligible.
• All qualifying veteran applicants over the age of 65 are eligible for pension but must meet income and asset tests. Applicants under the age of 65 must in addition be totally disabled to qualify. Disability does not have to be service-connected.
• A surviving spouse can be any age and there is no need for disability.

The aid and attendance benefit can pay additional income to provide for the costs associated with home care, assisted living, nursing homes, adult day care and other unreimbursed medical expenses. It can also pay for a family member other than a spouse to be the care giver. The amount of payment varies with the type of care, recipient income and the marital status of the recipient.

More Critical Aid & Attendance Information HERE!

These types of claims require medical evidence in order to receive a rating for aid and attendance or housebound allowances. These ratings must be received or certain non-medical expenses associated with long term care are not deductible from income. Special rules also allow for deducting the annual anticipated cost of month-to-month long term care from household income in order to meet the income test. This special treatment requires special documentation and evidence. In addition, those households with substantial assets will be denied for a Pension income unless those assets are below a certain level determined for each case by VA. The personal residence, personal vehicles and personal property are exempted from this asset test. Finally, evidence must be supplied every year in January that the anticipated costs for the previous year were actually incurred or VA will likely demand for its money back.

The National Care Planning Council has compiled the necessary forms, rules and information about claims together in one book titled “How to Apply for the Veterans Aid & Attendance Pension Benefit.”

This book contains information about how a typical applicant receives a successful pension award. VA often tells callers to go ahead and fill out the application but generally provides no information on the special treatment of annualization of anticipated recurring medical costs. The claims form also contains no information on this important issue. One simply has to know how to do it. This crucial information can make the difference between a successful award and being declined. All necessary forms for filing a claim are in the book.

Veterans who have substantial assets may need to do some estate planning and realigning of assets to qualify. An expert in this area should be sought to help with the application in order to avoid lengthy delays in awarding a benefit or a possible denial of benefits.

For a list of individuals or companies in your area who understand how to get this benefit go to http://www.longtermcarelink.net/ref_veterans_consultants.htm

To learn more about this benefit go to http://www.veteransaidbenefit.org/

Photographer: dan

Elder Law: Elder Law is a relatively new and fast growing field of law that deals with specific legal issues faced by senior citizens. For example, elder law attorneys offer tailored legal services such as Medicaid asset protection, special needs trusts, Veterans benefits, guardianships, and more.

Traditional Estate Planning: It may help to think of traditional estate planning as a “plan to deal with death.” The main goals encompassed by traditional estate plans are to minimize estate taxes, avoid the probate process, and to transfer assets from the deceased to his or her heirs.

How Elder Law Differs from Traditional Estate Planning: Elder law attorneys guide clients through the often more important goal of long-term life care decisions.

The considerations and goals of traditional estate planning into account, but also should address other important details. Elder law combines elements of Estate Planning, Trusts, Wills, Medicaid Planning, Nursing Home Planning, and Guardianship/Conservatorship. In addition, elder law deals with disability planning, including use of durable powers of attorney, living trusts, living wills and other means of delegating management to another in case of incompetence or incapacity. It is important for attorneys dealing with the elderly to have a unique understanding of the laws that may have an impact on the elderly. As you can tell, “Elder Law” is much broader of a term than “Estate Planning.”

When Selecting Your Elder Law Attorney: It is important that you hire an attorney who regularly handles matters in your area of concern and knows about the other areas of law that might impact this decision. It is also equally important to choose an attorney who you are comfortable talking with and who seems to empathize with the elder’s real life problems. Some questions you may consider asking:

• “How long has the attorney been in practice?”
• “What percentage of the practice is devoted to elder law?”
• “What elder law matters he/she has handled in the past and currently?”