Legal Planning for a Loved one with Alzheimer’s Disease

I was recently on the Alzheimer’s Association website (www.alz.org) and came across some great information on the legal issues that need to be taken care of as soon as and individual is diagnosed with Alzheimer’s Disease.

“Once a person is diagnosed with dementia, family and friends should help the person make legal plans. The sooner plans can begin, the more the person with dementia may be able to participate.  Legal planning includes:

·         Making plans for health care and long-term care coverage

·         Making plans for finances and property

• Naming another person to make decisions on behalf of the person with dementia”

Very often I get asked the question, when is it to late to get a power of attorney drawn up.  I found the following information about legal capacity on the Alzheimer’s Association website that I thought was very helpful.

“Legal capacity is the level of judgment and decision-making ability needed to sign official documents. In most cases, the person with dementia is able to understand the meaning and importance of a given legal document.

The requirements for legal capacity can vary from one legal document to another. A lawyer can help pinpoint what level legal capacity is required for a person to sign a particular document.”
When a person no longer has the capacity to make decisions for themselves it’s then time for a guardianship to be put into place.  Below is a great description of what a guardianship is.  Again I’m quoting from the Alzheimer’s Association website.

A “Guardianship is given by the court when it finds that a person is legally incompetent. In the case of dementia and its effect on the brain, legal incompetence relates to the person’s inability to make decisions about his or her care or property. Once a court rules that a person is legally incompetent, a guardian or conservator is appointed for that person. A diagnosis of Alzheimer’s or dementia alone is not an indication of incompetence.”

I hope this is helpful to those of you who have family members with dementia or serve those with this disease.  For more information on this topic please visit www.alz.org/living_with_alzheimers_legal_issues.asp

Carrie P. Barto, Client Relations Director

When to update your estate planning documents?

I often get the question from my clients: when do I need to update my estate planning documents?  My general response is that your estate plan may need updating anytime you have a life event.  The next question is, of course: what constitutes a life event?  Here is a list of some triggering events that should make you pull out your documents and determine whether an update is necessary:

• Change in marital status (married, divorced, or someone in estate plan gets married or divorced)
• Children (you’ve had a child since completing your estate planning documents, children reach 18 yrs, you’ve adopted a child)
• Death or Disability (if a family member, close friend or someone named in your estate plan dies or becomes disabled)
• Change in financial status (an increase or decrease in the size of your estate or nature of your assets)
• Change in the law (some changes in the law may have a dramatic impact on your estate plan)
• Relocation to a new state

There are many other events that can have an impact on your estate plan.  Outside of the triggering events listed above, a good rule of thumb is to review your estate planning documents with your attorney every 3-5 years.

RYAN W. MONK, licensed in NC & SC

Elder Law, Estate Planning, Asset Protection

Estate Planning: Why your power of attorney is like a spare set of keys.

This is a true story.  About five years ago, I was renting a room from my buddy in his Dilworth townhouse.  I was about to leave one evening to have dinner with some friends, and my roommate was walking out the door at the same time to walk across the street for a cup of Starbucks coffee.  As he walked out the door, he said to me, “Whatever you do, make sure to lock the door” – at least that is what I heard.  What he actually said was, “Whatever you do, DON’T lock the door.”  The distinction was crucial because my buddy had an exam he was studying for and did not have his keys to get back in the house.

Long story short, I left, locked the door, and did not have my cell phone on.  So there my poor roommate sat, outside his own house without his books and without a way to get in.  In order to get back into the house, he had to hire a locksmith (not cheap), who had to basically break into the house and make a new key.  If only he had a spare key with a trusted friend or family member around (other than his roommate who left him keyless).

This story is a great illustration of why powers of attorney are so important.  A power of attorney gives someone access to your ability to make financial or health care decisions on your behalf, just as a spare key gives a trusted person access to your house if you ever get locked out.  If you do not have a properly executed power of attorney, then it becomes necessary to go through the guardianship process, which is expensive and time consuming, just like having to hire a locksmith to get into your locked home.  If, however, you have taken the time to execute health care and financial powers of attorney, then, if you are ever not able to make decisions for yourself, you can have the peace of mind knowing that a friend or loved will be there to watch over your affairs.

RYAN W. MONK, licensed in NC & SC

ryan.monk@franklegal.com

Proposed Chinese Law Would Require Adult Children to Visit Elderly Parents Regularly

I just read the following article in our Elder Law newsletter and thought it was interesting.  In the past I worked as a social worker in a nursing home and saw the positive effect an attentive family had my residents.  When the family was around the resident received better care and lived longer.  I believe the family benefited from the visits as well.

~Carrie Barto, Client Relations Director

“Adult children in China would be required to visit their elderly parents on a regular basis under a proposed amendment to the nation’s Law on Protection of the Rights and Interests of the Aged.

Wu Ming, an official with the Ministry of Civil Affairs, is reported as saying that the amendment would allow elderly parents ignored by their children to go to court to claim their legal rights to be physically and mentally cared for.

China has 167 million citizens over age 60, half of whom live alone without children and 20 million of whom cannot take care of themselves. In traditional Chinese culture, filial piety — respect for one’s parents and ancestors — is one of the paramount virtues. But the longstanding tradition of children caring for aged parents is being challenged by history’s largest human migration, in which 130 million Chinese have moved to cities in search of jobs, leaving nearly 60 million growing up apart from one or both parents, according to a recent article in the New Yorker. In effect, capitalism appears to be undermining traditional values, and the state’s attempted solution is to legislate morality.

Wang Shichuan, a news analyst quoted by the site CriEnglish.com, questioned whether a moral issue is susceptible to a legal solution. Wang noted that many adult children work outside their hometowns and have little opportunity to visit their parents due to all-consuming jobs and few days off.

The Ministry of Civil Affairs is set to submit the proposed amendment to the Legislative Affairs Office of the State Council in the near future, according to the news site Global Times.”

Adding Life to Days

www.franklegal.com

I recently read that choosing Hospice is NOT giving up. It is choosing to add life to days rather than days to life.  As an estate planning and elder law attorney, I see time and time again how so many people want to put off establishing a plan that will allow them to leave a legacy for their family.  I sympathize with the reasons that people provide for not putting a plan in place: “I don’t want to think about my death or disability” or “I am in good health” or the ominous “I have plenty of time.”  It is true that death and disability and long term care are not topics that you want to discuss at a dinner party.  And most of the people I meet with are in good health at the moment.  And, God willing, most people will have years before they need their planning documents in place.  BUT, reflecting on the idea of “adding life to days”, wouldn’t you rather have your plan in place and have the peace of mind knowing that you have provided for your loved ones?  As a new father, I am quickly learning that nothing adds life to days like providing for your family.

RYAN W. MONK, licensed in NC & SC

Need Help Paying For Long-Term Care?

As an Elder Law Attorney, I find the number one dilemma facing Seniors today is how to pay their rising Long-Term Care costs.

One can expect to pay around $6,000 per month, or $72,000 annually, on Long-Term Care in many of North Carolina’s Assisted Living and Skilled Nursing Communities.  In the absence of Long-Term Care Insurance, you do not need to be a Mathematician to understand that one can burn through assets it took them a lifetime to accumulate in a relatively short period of time.

However, financial help is available for Veterans, with non-service connected disabilities, who:

1.      Served one day during a time of war,

2.      90 days of active duty, and

3.      Was other than dishonorably discharged.

Through this increasingly known program, popularly called Aid and Attendance, a married Veteran may receive up to $1,949.00 per month; tax free for the rest of his/her life.  The surviving spouse of the wartime veteran is also eligible to receive up to $1,056 per month.

I was recently told that as many as 1 out of every 3 residents of North Carolina Assisted Living and Skilled Nursing communities could qualify for this benefit with a little planning.

Alone, the Aid and Attendance benefit may not cover all of your Long-Term Care costs, but in many cases it will postpone the need for Medicaid by slowing the depletion of a family’s assets.

Please consult with not only an Estate Planning or Elder Law Attorney, but specifically a VA Accredited Attorney for the full details before you apply for this benefit.

Join us for a ribbon cutting April 4th a

Join us for a ribbon cutting April 4th at the Rock Hill Chamber as we celebrate one year of service to the Rock Hill Fort Mill area.

Wishing all our colleagues and friends a

Wishing all our colleagues and friends a wonderful Thanksgiving holiday.

Please join us Thursday at 6:30pm at Bro

Please join us Thursday at 6:30pm at Brookdale Place for “Plan Early Plan Ahead” an informative round table program

Remember to wear your purple tomorrow in

Remember to wear your purple tomorrow in honor of World Alzheimer’s Day!