Kenneth Vercammen, Esq is Chair of the ABA Elder Law Committee and presents seminars to attorneys and the public on Wills, Probate and other legal topics related to Estate Planning and Elder law. He is author of the ABA's book "Wills and Estate Administration. Kenneth Vercammen & Associates,
2053 Woodbridge Avenue - Edison, NJ 08817
(732) 572-0500 More information at www.njlaws.com/

Thursday, July 21, 2016

Wills & Power of Attorney Seminar Old Bridge Library

Wills & Power of Attorney Seminar
Old Bridge Library
 October 11, 2016 at 1pm

SPEAKER: Kenneth Vercammen, Esq. Edison, NJ
          (Author- Answers to Questions About Probate)

     The NJ Probate Law made a number of substantial changes in Probate and the administration of estates and trusts in New Jersey.
Main Topics:
1. The New Probate Law and preparation of Wills
2. 2016 changes in Federal Estate and Gift Tax 
3. NJ Inheritance taxes on estates over $675,000
4. Power of Attorney
5.  Living Will       
6.  Administering the Estate/ Probate/Surrogate
7. Questions and Answer 

COMPLIMENTARY MATERIAL: Brochures on Wills, "Answers to Questions about Probate" and Administration of an Estate, Power of Attorney, Living Wills, Real Estate Sales for Seniors, and Trusts.
    Open to the Public. You do not need to be a resident.

732-721-5600 x 5033  
Old Bridge Library 1 Old Bridge Plaza Old Bridge NJ 08857

Can’t attend?  We can email you materials Send email to VercammenLaw@Njlaws.com

        Free Will Seminars and Speakers Bureau for Groups
SPEAKERS BUREAU
  At the request of senior citizen groups, unions, and Middlesex County companies and organizations, the " Speakers Bureau " is a service designed to educate citizens about how laws affect their lives and how the judicial system operates.  We have attorneys available to speak to businesspersons, educational, civic and social organizations on a wide range of topics during business hours.  For additional information on the Legal Seminars, contact our Coordinator, Kenneth Vercammen’s law office at (732) 572-0500, or fax 732-572-0030.


10 years ago the AARP Network Attorneys of the Edison/Metuchen/Woodbridge area several years ago established a community Speakers Bureau to provide educational programs to AARP and senior clubs, Unions and Middlesex County companies. Now, volunteer attorneys of the Middlesex County Estate Planning Council have provided Legal Rights Seminars to hundreds of seniors, business owners and their employees, unions, clubs and non-profit groups. These quality daytime educational programs will educate and even entertain. Clubs and companies are invited to schedule a free seminar. The following Seminars are now available:

Details on the 2 programs currently offered:
1.  WILLS & ESTATE ADMINISTRATION- PROTECT YOUR FAMILY AND   MAKE PLANNING EASY

2. POWER OF ATTORNEY to permit family to pay your bills if you are temporarily disabled and permit doctors to talk with family

All instructors are licensed attorneys who have been in practice at least 25 years. All instructors are members of the American Bar Association, New Jersey State Bar Association, and Middlesex County Bar Association.  All programs include free written materials.  
You don't have to be wealthy or near death to do some thinking about a Will.  Here is your opportunity to listen to an experienced attorney who will discuss how to distribute your property as you wish and avoid many rigid provisions of state law.
Topics discussed include: Who needs a Will?; What if you die without a Will (intestacy)?; Mechanics of a Will; "Living Will"; Powers of Attorney; Selecting an executor, trustee, and guardian; Proper Will execution; Inheritance Taxes, Estate Taxes $14,000 annual gift tax exclusion,  Bequests to charity, Why you need a "Self-Proving" Will and  Estate Administration/ Probate.
Sample materials: Hand-outs on Wills, Living Wills/Medical Advance Directive, Power of Attorney, Probate and Administration of an Estate, Real Estate, Working with your Attorney, Consumers Guide to New Jersey Laws, and Senior Citizen Rights.

In today's complex world, few people can function successfully and safely without competent legal advice.  In order to insure your estate plans are legally set up, you need to know exactly where you stand so that you can avoid possibly catastrophic mistakes impacting both you and your family.

About the speaker: Kenneth A. Vercammen is a trial attorney in Edison, NJ. We is the author of the American Bar Association’s book “Wills and Estate Administration”
He is co-chair of the ABA Probate & Estate Planning Law Committee of the American Bar Association Solo Small Firm Division.  He is a speaker for the NJ State Bar Association at the annual Nuts & Bolts of Elder Law & Estate Administration program.
He was Editor of the ABA Estate Planning Probate Committee Newsletter. Mr. Vercammen has published over 150 legal articles in national and New Jersey publications on litigation, elder law, probate and trial topics. He is a highly regarded lecturer on litigation and probate law for the American Bar Association, NJ ICLE, New Jersey State Bar Association and Middlesex County Bar Association. His articles have been published in noted publications included New Jersey Law Journal, ABA Law Practice Management Magazine, and New Jersey Lawyer. He established the NJlaws website www.njlaws.com which includes many articles on Estate Planning, Probate and Wills. He is a member of the AARP and often lectures to groups on the importance of an up to date Will, Power of Attorney and Living Will.


KENNETH  VERCAMMEN & ASSOCIATES, PC
ATTORNEY AT LAW
2053 Woodbridge Ave.
Edison, NJ 08817
(Phone) 732-572-0500
 (Fax)    732-572-0030
www.njlaws.com

www.CentralJerseyElderLaw.com

Edison Library Wills, Estate Planning & Probate Seminar


Edison Library
Wills, Estate Planning & Probate Seminar 
October 25 at 7pm   Free community program

WILLS & ESTATE ADMINISTRATION- PROTECT YOUR FAMILY AND MAKE PLANNING EASY

SPEAKER: Kenneth Vercammen, Esq. Edison, NJ
          (Author- Answers to Questions About Probate)

     The NJ Probate Law made a number of substantial changes in Probate and the administration of estates and trusts in New Jersey. 
Main Topics:
1. The New Probate Law and preparation of Wills
2. 2016 changes in Federal Estate and Gift Tax  
3. NJ Inheritance taxes on estates over $675,000
4. Power of Attorney  
5.  Living Will        
6.  Administering the Estate/ Probate/Surrogate
7. Questions and Answer  
    You do not need to be an Edison resident to attend.
COMPLIMENTARY MATERIAL: Brochures on Wills, "Answers to Questions about Probate" and Administration of an Estate, Power of Attorney, Living Wills, Real Estate Sales for Seniors, and Trusts.
 
To register go to http://www.edisonpubliclibrary.net/index-ek.shtml
340 Plainfield Ave.
Edison, NJ 08817
For info call 732-287-2298  x 228
Facebook Link https://www.facebook.com/events/156707594747347/

    FREE WILL SEMINARS AND SPEAKERS BUREAU for community groups
The AARP Network Attorneys of the Edison/Metuchen/East Brunswick area had established a community Speakers Bureau to provide educational programs to AARP and senior clubs, Unions and Middlesex County companies. During the past year, volunteer attorneys of the Middlesex County Estate Planning Council have provided Legal Rights Seminars to hundreds of seniors, business owners and their employees, unions, clubs and non-profit groups. These quality daytime educational programs will educate and even entertain. Clubs and companies are invited to schedule a free seminar. For other organizations to schedule a Will Seminar, please call Kenneth Vercammen Law Office at (732) 572-0500, email VercammenLaw@njlaws.com

Kenneth Vercammen is a trial attorney in Edison, NJ. Ken is author of the ABA’s book  Wills and Estate Administration. He is co-chair of the American Bar Association’s Probate & Estate Planning Law Committee of the American Bar Association Solo Small Firm Division.  Ken is a speaker for the NJ State Bar Association at the annual Nuts & Bolts of Elder Law & Estate Administration program. 
Mr. Vercammen has published over 150 legal articles in national and New Jersey publications on litigation, elder law, probate and trial topics. He is a highly regarded lecturer on litigation and probate law for the American Bar Association, NJ ICLE, New Jersey State Bar Association and Middlesex County Bar Association. His articles have been published in noted publications included New Jersey Law Journal, ABA Law Practice Management Magazine, and New Jersey Lawyer. He established the NJlaws website www.njlaws.com which includes many articles on Estate Planning, Probate and Wills. He is a member of the AARP and often lectures to groups on the importance of an up to date Will, Power of Attorney and Living Will.

KENNETH  VERCAMMEN & ASSOCIATES, PC
ATTORNEY AT LAW
2053 Woodbridge Ave.
Edison, NJ 08817
(Phone) 732-572-0500
 (Fax)    732-572-0030
www.njlaws.com 
www.CentralJerseyElderLaw.com

Friday, July 15, 2016

Wills & Power of Attorney Seminar Piscataway Library Kennedy Branch

October 13 at 7pm
500 Hoes Lane Piscataway NJ 08854

SPEAKER: Kenneth Vercammen, Esq. Edison, NJ
                (Author- ABA’s “Wills and Estate Administration book”)

     The new NJ Probate Law made a number of substantial changes in Probate and the administration of estates and trusts in New Jersey.
Main Topics:
1. The New Probate Law and preparation of Wills    
2. 2016 changes in Federal Estate and Gift Tax 
3. NJ Inheritance taxes on estates over $675,000
4. Power of Attorney               
5.  Living Will                                  
6.  Administering the Estate/ Probate/Surrogate    
7. Questions and Answer 

     Open to the public. You do not need to be a township resident.     
      COMPLIMENTARY MATERIAL: Brochures on Wills, "Answers to Questions about Probate" and Administration of an Estate, Power of Attorney, Living Wills, Real Estate Sales for Seniors, and Trusts.
         Piscataway Library Kennedy Branch
Register at the Kennedy Library Information Desk or by calling 732-463-1633x6
http://www.piscatawaylibrary.org/content/wills-estates
Can’t attend?  We can email you materials Send email to VercammenLaw@Njlaws.com

        Free Will Seminars and Speakers Bureau for Groups
SPEAKERS BUREAU
         At the request of senior citizen groups, unions, and Middlesex County companies and organizations, the " Speakers Bureau " is a service designed to educate citizens about how laws affect their lives and how the judicial system operates.  We have attorneys available to speak to businesspersons, educational, civic and social organizations on a wide range of topics during business hours.  For additional information on the Legal Seminars, contact our Coordinator, Kenneth Vercammen’s law office at (732) 572-0500, or fax 732-572-0030.


         10 years ago the AARP Network Attorneys of the Edison/Metuchen/Woodbridge area several years ago established a community Speakers Bureau to provide educational programs to AARP and senior clubs, Unions and Middlesex County companies. Now, volunteer attorneys of the Middlesex County Estate Planning Council have provided Legal Rights Seminars to hundreds of seniors, business owners and their employees, unions, clubs and non-profit groups. These quality daytime educational programs will educate and even entertain. Clubs and companies are invited to schedule a free seminar. The following Seminars are now available:

Details on the 2 programs currently offered:
1.  WILLS & ESTATE ADMINISTRATION- PROTECT YOUR FAMILY AND   MAKE PLANNING EASY

2. POWER OF ATTORNEY to permit family to pay your bills if you are temporarily disabled and permit doctors to talk with family

         All instructors are licensed attorneys who have been in practice at least 25 years. All instructors are members of the American Bar Association, New Jersey State Bar Association, and Middlesex County Bar Association.  All programs include free written materials.  
         You don't have to be wealthy or near death to do some thinking about a Will.  Here is your opportunity to listen to an experienced attorney who will discuss how to distribute your property as you wish and avoid many rigid provisions of state law.
         Topics discussed include: Who needs a Will?; What if you die without a Will (intestacy)?; Mechanics of a Will; "Living Will"; Powers of Attorney; Selecting an executor, trustee, and guardian; Proper Will execution; Inheritance Taxes, Estate Taxes $14,000 annual gift tax exclusion,  Bequests to charity, Why you need a "Self-Proving" Will and  Estate Administration/ Probate.
         Sample materials: Hand-outs on Wills, Living Wills/Medical Advance Directive, Power of Attorney, Probate and Administration of an Estate, Real Estate, Working with your Attorney, Consumers Guide to New Jersey Laws, and Senior Citizen Rights.

         In today's complex world, few people can function successfully and safely without competent legal advice.  In order to insure your estate plans are legally set up, you need to know exactly where you stand so that you can avoid possibly catastrophic mistakes impacting both you and your family.

About the speaker: Kenneth A. Vercammen is a trial attorney in Edison, NJ. We is the author of the American Bar Association’s book “Wills and Estate Administration”
He is co-chair of the ABA Probate & Estate Planning Law Committee of the American Bar Association Solo Small Firm Division.  He is a speaker for the NJ State Bar Association at the annual Nuts & Bolts of Elder Law & Estate Administration program.
He was Editor of the ABA Estate Planning Probate Committee Newsletter. Mr. Vercammen has published over 150 legal articles in national and New Jersey publications on litigation, elder law, probate and trial topics. He is a highly regarded lecturer on litigation and probate law for the American Bar Association, NJ ICLE, New Jersey State Bar Association and Middlesex County Bar Association. His articles have been published in noted publications included New Jersey Law Journal, ABA Law Practice Management Magazine, and New Jersey Lawyer. He established the NJlaws website www.njlaws.com which includes many articles on Estate Planning, Probate and Wills. He is a member of the AARP and often lectures to groups on the importance of an up to date Will, Power of Attorney and Living Will.


KENNETH  VERCAMMEN & ASSOCIATES, PC
ATTORNEY AT LAW
2053 Woodbridge Ave.
Edison, NJ 08817
(Phone) 732-572-0500
 (Fax)    732-572-0030
www.njlaws.com
www.CentralJerseyElderLaw.com



Wednesday, July 06, 2016

Planning Potpourri: Revocable Trusts; Seed Gifts; SNTs


Revocable trusts. These trusts, not merely a will, should be the default approach to estate plans for many. Consider replacing your current will with a revocable trust and “pour- over” will. Revocable trusts have been touted for decades as a tool to avoid probate. While that might be beneficial, there are many more im- portant uses of this document. A rev- ocable trust, especially if combined with a trust protector and other checks and balances, can be a useful technique to protect you as you age or in the event health challenges worsen. Trusts for heirs formed under a revo- cable trust may be easier to move to trust friendly jurisdictions.
■ Special needs trusts. The provisions that are required in New Jersey differ than those required for trusts under New York because of what is known as the New Jersey trust buster provi- sion. The trigger mechanism should
 be incapacity and the definition should track the definition provided under the law. If your document has not been reviewed, your special child moved to NJ, or your document silent (can anyone assure they won’t have a special needs descendant), review them.
■ Seed Gifts: Sales of assets to grantor trusts have become a common estate planning technique for larger estates. Some commentators have long sub- scribed to a mythical requirement that before assets can be sold to a trust that trust should have assets/ value equal to 10% of the value of the assets to be sold. That Chimera never really comported with applicable law, but had become de rigueur as com- mentators kept repeating the myth. Other commentators have suggested instead that a reality of sale construct be used (whether or not the 10% seed gift is addressed). Under this ap-
page4image30784
proach the buyer should be able to demonstrate a reasonable likelihood that it will be able to make the pay- ments required. There are other points to consider. Although taxpay- ers have had a recent victory on a note sale transaction, other tech- niques, such as a sale to a disregard- ed LLC followed by a contribution to a GRAT might warrant considera- tion instead. Also, with so many wealthy clients having created trusts in prior years (especially 2012) it may be feasible to engage in transac- tions with trusts that already have significant assets and perhaps assets unrelated to the asset being sold. 
source http://shenkmanlaw.com/uploads/2016/06/Practical-Planner-Apr-Jun-2016.pdf

An executor can be personally liable for the estate's estate tax liability


Executor Liability: An executor is personally liable for the estate's estate tax liability if the assets of the estate are distributed to the beneficiaries and the executor knew or should have known of the IRS's claim. CCA 201212020. In a recent case the executor was not held liable because the estate lacked assets to pay the tax and many assets were non-probate assets. Singer, TC Memo 2016- 48 (3/14/2016). Before doing a happy dance executors should consider the lia- bility they might face with new Form 8971.


source http://shenkmanlaw.com/uploads/2016/06/Practical-Planner-Apr-Jun-2016.pdf

Monday, June 27, 2016

Only attorneys can provide legal advice on medicaid estate planning

Only attorneys can provide legal advice on medicaid  estate planning
OPINION 53
Non-Lawyer Medicaid Advisors (Including “Application Assistors”) and the Unauthorized Practice of Law
COMMITTEE ON THE UNAUTHORIZED PRACTICE OF LAW Appointed by the Supreme Court of New Jersey

The Committee received an inquiry concerning permissible and impermissible activities of non-lawyer Medicaid advisors, including so-called “Application Assistors.” Inquirer stated that non-lawyers who are retained by families or nursing homes to assist with the Medicaid application process are providing erroneous or incomplete law-related advice. It asked the Committee to issue an opinion specifying what activities such non-lawyers may engage in and what activities are the unauthorized practice of law.
Lawyers have also called the attorney ethics research assistance hotline reporting that non-lawyers and companies that are not law firms have charged “clients” large sums of money for faulty Medicaid-planning legal assistance, causing the elderly victims significant financial loss. Some of these non-lawyers and companies may be associated with nursing homes. The Committee notes that such unauthorized practice of law is not only a criminal offense, N.J.S.A. 2C:21-22, it also may violate the Consumer Fraud Act, N.J.S.A. 56:8-1 et seq.
According to Inquirer, non-lawyer advisors advised a family member that she could receive monies as a caregiver when the family member did not qualify for that status; advised a family member to spend down an IRA when it would have been more reasonable to purchase an
annuity with those monies; advised a family member to draw down her assets when it would have been more sensible to transfer monies to a disabled child; advised a family member to transfer real estate when it would have been prudent to address the significant tax implications of that plan; and the like. It stated that these advisors also counseled people on wills and powers of attorney; on the need for guardianships and the authority to transfer assets; on the standards for Medicaid coverage; on nursing home laws; on transfers of property; on the impact of marriage and divorce; on estate administration and the elective share; and similar legal matters. It stated that such erroneous or incomplete legal advice causes the applicant, beneficiary, and family significant harm.
Medicaid is a federal benefit program that provides health insurance to eligible persons. If the beneficiary is eligible, the program pays for hospital services, doctor visits, prescriptions, nursing home care, and other services. The program is implemented through the State Department of Human Services, Division of Medical Assistance & Health Services. The State agency is required to provide assistance to persons who may be eligible for services. 42 C.F.R. Sections 435.904(e) and 435.908(a). In addition, the federal regulations require that States “must allow individual(s) of the applicant or beneficiary’s choice to assist in the application process or during a renewal of eligibility.” 42 C.F.R. Section 435.908(b).
An applicant or beneficiary is also expressly permitted to “represent himself or use legal counsel, a relative, a friend, or other spokesman” in any hearing on agency action or decisions. 42 C.F.R. Section 431.206(b)(3). The applicant or beneficiary, or his or her representative, has procedural rights, including the right to establish pertinent facts and present arguments at the hearing. 42 C.F.R. Section 431.242. Finally, the regulations require the State agency to permit applicants and beneficiaries to “designate an individual or organization to act responsibly on
2
their behalf in assisting with the individual’s application and renewal of eligibility and other ongoing communications with the agency.” 42 C.F.R. Section 435.923(a)(1).
The federal regulations permit States to certify staff and volunteers to act as application assistors. 42 C.F.R. Section 435.908(c). “Certified” assistance includes “providing information on insurance affordability programs and coverage options, helping individuals complete an application or renewal, working with the individual to provide required documentation, submitting applications and renewals to the agency, interacting with the agency on the status of such applications and renewals, assisting individuals with responding to any requests from the agency, and managing their case between the eligibility determination and regularly scheduled renewals.” Id. at (c)(2). Certified assistors may not receive payment or compensation for their services. Id. at (c)(4).
The Committee acknowledges that the federal program requires States to permit non- lawyers to assist applicants and beneficiaries with Medicaid applications and represent persons in hearings. While non-lawyer Medicaid advisors may provide these limited services, the Committee finds that it is the unauthorized practice of law when non-lawyers provide advice in matters that require the professional judgment of a lawyer. Hence, only a lawyer may provide legal advice on issues such as strategies for Medicaid eligibility, including provisions of wills and powers of attorney; on the need for guardianships and the authority to transfer assets; on nursing home laws; on transfers of property; on the impact of marriage and divorce; and on estate administration and the elective share.
The Committee considered and agrees with published opinions issued by Ohio, Florida, and Tennessee regarding activities of Medicaid advisors and the unauthorized practice of law. These jurisdictions similarly acknowledge that federal law permits non-lawyers to assist individuals in Medicaid applications but conclude that, in more complex cases, providing advice
3
on strategies to become eligible for Medicaid is not sanctioned and is the unauthorized practice of law.
The Ohio Board noted the broad grant of authority to non-lawyers in the federal regulations and acknowledged that the general task of consulting with the applicant, reviewing documents to determine the applicant’s resources for Medicaid purposes, preparing and filing an application for Medicaid, and attending hearings with the individual or on behalf of the individual, are all permissible. Board on the Unauthorized Practice of Law of the Supreme Court of Ohio Advisory Opinion UPL 11-01 (October 7, 2011). The Ohio Board stated:
Medicaid planning in many, if not most, instances involves estate planning according to the prevailing legal literature. Individuals in need of long-term care often use estate tools such as trusts, gifts, and asset transfers to meet Medicaid income and resource-eligibility thresholds. Such estate planning requires specialized legal training, skill, and experience because it incorporates analysis, interpretations, and the preparation of legal documents. . . . The Board concludes that Medicaid planning requiring specialized legal training, skill, and experience constitutes the practice of law. However, especially in situations where the applicant’s income and resource levels are near the Medicaid limits, there may be some Medicaid planning scenarios involving only document review and a financial calculation. As a result, the Board further concludes that the question of whether nonattorney involvement in Medicaid planning constitutes the unauthorized practice of law must be determined on a case-by-case basis.
[Ohio Board Opinion, section III (internal citations omitted).]
The Florida Opinion provides that rendering legal advice on the implementation of Florida law is the practice of law. Florida Bar Standing Committee on the Unlicensed Practice of Law FAO #2011-4 “Medicaid Planning Activities by Nonlawyers,” (October 14, 2014). “Assessing the facts relevant to a client’s situation, applying those facts to the laws governing Medicaid, developing a plan to structure or spend the client’s assets in compliance with those laws, and drafting legal documents to execute the plan, would constitute the practice of law . . . . It is the opinion of the Standing Committee that when a nonlawyer engages in these activities or
4

renders legal advice regarding the implementation of Florida law to obtain Medicaid benefits the nonlawyer is engaged in the unlicensed practice of law. This includes advising an individual on which legal strategy or strategies under federal or Florida law are appropriate given the individual’s factual circumstances.” Id. at p. 17.
The Tennessee Opinion concludes that “whether conduct by a non-attorney in this specific circumstance would constitute unauthorized practice depends on whether the legal assessments or advice at issue would require the professional judgment of a lawyer and is offered for a valuable consideration.” State of Tennessee Office of the Attorney General Opinion No. 07-166, “Practice of Law; Medicaid Eligibility” (December 18, 2007), at page 3, paragraph 2. In other words, if it is a complicated question that should be considered only by a lawyer, then it is the practice of law.
The Committee agrees with these opinions. Applying the law to an individual’s specific circumstances generally is the “practice of law.” A Medicaid advisor or Application Assistor may provide information on insurance programs and coverage options; help individuals complete the application or renewal; help them with gathering and providing required documentation; assist in counting income and assets; submit the application to the agency; and assist with communication between the agency and the individual. But the advisor may not provide legal advice on strategies to become eligible for Medicaid benefits, including advice on spending down resources, tax implications, guardianships, sale or transfer of assets, creation of trusts or service contracts, and the like.
5 

Friday, June 24, 2016

Explore Your Long-Term Care Options

Explore Your Long-Term Care Options

shared from Arag legal plan

The majority of us will use some sort of long-term care services as we get older. You may need assistance with activities ranging from bathing, eating and taking medication to shopping for groceries, managing money and preparing meals.
Because the cost of these services continues to rise — now averaging anywhere from $5,000 to $10,000 per month — you need to start budgeting and planning now so that you are prepared when you need these support services, whether it be at home, in the community, in assisted living facilities or in nursing homes.

Long-term care insurance

As you plan, keep in mind that there are long-term care insurance policies that can provide financial help, but that age and physical condition are factors in the cost. If you are older or less well, then you can expect the policy to have higher premiums and more stringent terms. On the other hand, if you are younger and in good health, you can expect more flexibility in the terms and premiums.
As is true with any insurance product, you'll need to look carefully at each policy offered and its options. Consider such items as:
  • What benefits are offered? For example: daily payments amount (which could be up to a preset daily amount for incurred expense reimbursement or daily pre-set disability payment amounts regardless of actual expenses) benefits for certain period, lifetime benefit amounts, comprehensive or facility care only, home modifications to support physical capacity limitations or risks, care coordinator services, payment for family/friend provision of care.
  • What conditions trigger coverage? For example: a determined impairment in activities of daily living (ADRs) or specified cognitive impairment.
  • When will benefits begin? That is, is there an elimination period — a set period of days after the requisite triggering condition exists before benefits start? How long is the elimination period?
  • Will benefits be fixed or will they adjust with inflation?
  • What exclusions from coverage or from certain policy benefits apply? For example, If you already need or are in long-term care, or if you have certain progressive and severely debilitating conditions.
  • How much will it cost?
To learn more about this option, talk to an insurance agent who specializes in these types of policies.

Government assistance

The government provides assistance for some services to those eligible for Medicare, such as nursing home rehabilitation and post-hospitalization home health care. But it doesn't address long-term chronic needs or custodial care.
The Administration for Community Living, maintained by the federal Department of Health and Human Service's Administration on Aging, prepared a chart that addresses the major categories of long-term care options and the financing alternatives available for persons needing care:
 PublicPrivate
Long-Term Care ServiceMedicareMedigap InsurancePrivate Health Insurance
OverviewLimited coverage for nursing home care following a hospital stay and home health if you require a nurse or other skilled provider.Insurance purchased to cover Medicare cost sharing following a hospital stay and home health if you require a nurse or other skilled provider.Varies, but generally only covers services for a short time following a hospital stay, surgery or while recovering from an injury.
Nursing home care
Pays in full for days 1-20 if you are in a Skilled Nursing Facility following a recent 3-day hospital stay.
If your need for skilled care continues, may pay for the difference between the total daily cost and your copayment of $137.50 per day for days 21-100. After day 100 does not pay.
May cover the $137.50 per day copayment if your nursing home stay meets all other Medicare requirements.Varies, but limited.
Assisted living facility (and similar facility options)Does not pay.Does not pay.
Does not pay.
Continuing Care retirement communityDoes not pay.Does not pay.
Does not pay.
Adult day servicesNot covered.Not covered.Not covered.
Home health and personal care
Limited to reasonable, necessary part-time or intermittent skilled nursing care and home health aide services, some therapies if a doctor orders them, and a Medicare-certified home health agency provides them.
Does not pay for on-going personal care or only help with Activities of Daily Living (also called "custodial care").
Not covered under current policies.
Some policies sold prior to 2009 offered an at-home recovery benefit that pays up to $1,600 per year for short-term at-home assistance with activities of daily living (bathing, dressing, personal hygiene, etc.) for those recovering from an illness, injury, or surgery.
Varies, but limited.
To learn more, you may want to talk to an elder law attorney who works exclusively with elder law issues such as how to qualify for Medicaid and other government benefits and what actions you may need to take to legally qualify.

Making a decision

The decision to prepare for long-term care arrangements is very personal. You'll need to:
  • Consider the resources you'll have available for future long-term care costs and the extent of assistance you'll need to make up the difference.
  • Consider if you'll have family members to assist as caregivers should you require it, or if you'll have to turn to outside sources.
  • Think about what is most important to you in terms of the site and extent of care you'll want.
Start with a preliminary analysis and plan to meet your expectations for your own situation.
Even though thinking about how your care needs may change as you get older isn't the most fun topic, it is a necessary one. Another necessary topic you may not have considered yet?