Page 38 - December 2019 Bar Journal

FEATURE ELDER LAW

LIFE IS A BALANCING ACT

WHAT IS ON YOUR CLIENT’S BUCKET LIST

FOR MAINTAINING HIS/HER LIFESTYLE AT 50 AND BEYOND

BY ALLISON M. MCMEECHAN & LEE ANN O’BRIEN

s the aging population continues resources to fund their long-term care in the and financial powers of attorney appointing a
to grow, more and more of future or are they insured in the event of a health succession of agents to assist with healthcare
our clients are going to find care crisis? If not, perhaps they need to be referred and financial decision making in the event
themselves as part of the to someone who can review long term care of incapacity? Consider whether the clients’
A “sandwich generation.” Children insurance options. Building a meaningful team college-aged children and parents also have these
of baby boomers are now in their 40s and 50s of professional advisors for our clients will ensure documents in place.
and are taking care of an aging parent or parents an on-going relationship with those clients rather Many in the sandwich generation find
and children who are under the age of 18. These than a “one and done” arrangement. themselves as caregivers and support persons for
clients are essentially “sandwiched” within their We should also be reviewing our clients’ aging parents while also financially supporting
own family. How do we as practitioners advise estate plans. If they have minor children, have children. A client may come to you for their
our clients on planning for their retirement, they nominated guardians in their wills and own estate planning and then ask for advice
while taking into consideration the long-term established trusts for the benefit of those children? and information related to long-term care for
care needs of their parents and their children’s Are any of their children disabled? If so, have they a parent or parents. Familiarizing yourself with
education and future needs? And why is this established a special needs trust or trusts for their the basics of Medicare, Medicaid, Social Security
information important to us? As this is not a disabled child to ensure that any public benefits and VA benefits, or co-counseling with an elder
one-size fits all approach, we as practitioners and are not affected by the receipt of an inheritance law practitioner, will provide your clients with
counselors need to educate ourselves with the or a gift? Does the disabled child have a 529 Plan? guidance and peace of mind. In summary, some
myriad of issues many of our clients are facing. Is it prudent to consider transferring that 529 programs that you may encounter include:
Looking at the landscape of aging populations tax-free to a STABLE account? It may also be 1. Medicare. Medicare is an entitlement program
in Northeast Ohio, it’s difficult to not be struck prudent to dovetail the client’s estate plan with for those who paid into Medicare. In order to
by the challenges in front of our communities. that of his/her parents’ plan(s) to ensure that the qualify for Medicare, your clients must be over
The growing population of the New Majority special needs trust is included as part of the plan 65, disabled for 24 months, or suffering from
(300,000 older adults living in Cuyahoga County, for multiple generations. end-stage renal disease. Medicare eligibility is
representing 24% of the total population and out- For clients with special needs children not affected by income or resources. Medicare
numbering those under 20]=) is also living longer. it is important that their estate planning be is a health insurance program with 4 types: A)
Not only does this have obvious implications for appropriately drafted to take into consideration Part A (hospital insurance); B) Part B (medical
entitlement programs such as Medicare and whatever benefits and services the child may be insurance); C) Part C (advantage plans); and D)
Social Security, but the implications are equally receiving or may be eligible to receive from public Part D (prescription drug coverage). Medicare
significant for every program and provider sources. There are two general categories of Part A will cover skilled care for up to 100 days
serving aging citizens and for every community trusts for disabled individuals that are considered (with a co-pay) following a qualifying three-
interested in remaining strong and vibrant. exempt for means-tested public benefits, namely day hospital inpatient stay. However, Medicare
In reviewing the options available to the third-party and self-settled trusts. The third- will not pay for long term care.
sandwich generation, it is important to take party trust is established by someone other 2. VA Pension. The VA pension is available to
into consideration your clients’ retirement, their than the disabled individual (such as a parent) veterans or surviving spouses of limited income
children’s education, and their parents’ long-term for the benefit of the disabled individual with and resources. To be eligible, the veteran must:
care needs (and often the clients’ own long-term assets never owned by the disabled individual. 1) have been discharged from service under
care needs). The self-settled trust is a trust established by a other than dishonorable conditions; and 2)
First and foremost, our clients need to consider disabled individual with his or her own funds. have served 90 days or more of active duty
their own retirement and estate plan. Are they For example, a personal injury settlement that is with at least one day during a period of war
saving enough for retirement? If not, we should awarded to someone receiving Medicaid benefits time. Furthermore, the veteran must be aged
1
be in a position to refer our clients to a qualified can be placed in a self-settled trust and allow the 65 or older, or be permanently and totally
financial advisor and accountant who can assist individual to continue to receive Medicaid. disabled. In addition to retaining the home
in this regard. Do our clients have sufficient Do your clients have healthcare directives and one car, a veteran or surviving spouse may

38 | CLEVELAND METROPOLITAN BAR JOURNAL CLEMETROBAR.ORG