“Open the Pod Bay Doors, HAL” Today’s 50-Year-Olds Will Live the Space Odyssey

The Squeeze:
 
Recent estimates predict that the population of adults 85 and older in the U.S. will almost triple over the next 40 years. Simultaneously, the working-age population is expected to decline. This means the people requiring support–the elderly–will outnumber the ones able to provide such support, financially and otherwise. AARP calls this the “caregiver cliff.”
 
Meanwhile, costs to provide health care are expected to grow by over 200% for those between the ages of 70 and 90. We already see that governments, payers, and manufacturers, aren’t really producing reductions in healthcare costs. So, seniors need care solutions in order to be prepared for this impending rise in costs.
 
Enter Technology:
 
The new developments in robot and AI technology is expected to employ virtual home assistants and portable diagnostic devices that will be able to help provide better elder care, help control medical costs—and allow more seniors to stay in their homes longer.
 
The question is how receptive seniors will be to this technological intrusion into their lives. Those in their 50s now will probably be more open to relying on technolgoy, while those 20 years older may feel very uncomfortable accepting these changes. Consequently, there will be a growing interest and market for already available and maturing technologies to support physical, emotional, social and mental health.
 
Stay tuned with this space as my new book comes out soon that addresses these realities: The 4Ts of Retirement Income Planning (the name is subject to publisher approval). I’m staying on the cutting edge of planning–make sure you’re there with me!
Meanwhile, if I can help your family in any way, use the robot to schedule an appointment or email or message me!

Aging Parents, Their Pets, and Long-Term Care

There’s no question that pets are family members that bring joy and comfort to us all, but particularly aging family members who have already lost a human companion. Indeed, an increasing number of assisted living facilities are becoming pet friendly–especially those offering independent living apartments. Skilled Nursing Facilities are bringing in pets on certain days for programs allowing residents to hold and play with animals on scheduled visits. There seems to be a special benefit for those with dementia.

But, pets and animals come with their risks also. Care must be taken to keep the situations under control to prevent accidental falls or other injuries. For those elders still in their homes, special consideration needs to be given for the situation especially where balance, diminished vision, and rambunctious pets can intermingle. Families may have to take over care for the pet and then bring it for visits. Pets too age and care needs to be taken that the pets aren’t lost in the fray of changes which occur when moving the elder to an ALF, SNF, or even when staying in the family home. If caregivers are contracted to come into the home, it is essential to include in the job description the caring for the family pets.

Cognitive decline can impair an elder’s ability to routinely care for a pet, despite their best intentions. So, just as we don’t want the pet inflicting unintentional harm on the elder, so too must we ensure the forgetful elder doesn’t wind up inflicting unintentional harm on the pet, such as forgetting regular food, water, and outside access for nature calls.

We plan for all these contingencies in our documents drafted and financial plans formulated to provide funding for the high costs of longevity. Contact us for your situation that requires thoughtful, comprehensive professional planning.

10 Early Symptoms of Dementia You Should Know

10 Early Symptoms of Dementia

Dementia is a collection of symptoms that can occur due to any one of a number of possible diseases. Dementia symptoms include cognitive impairment, i.e., interruption of thought processes, difficulties with communication, and ability to recollect. If you or your loved one is experiencing memory problems, it is inappropriate to immediately jump to the conclusion that dementia is the underlying culprit. A dementia diagnosis requires a person needs to have at least two types of impairment that significantly interfere with everyday life to receive a dementia diagnosis. Subtle short term memory changes or trouble with memory can be an early symptom of dementia. The changes are often subtle and tend to involve short-term memory. An older person may be able to remember events that took place years ago but not what they had for breakfast.

Other symptoms of changes in short-term memory include forgetting where they left an item, struggling to remember why they entered a particular room, or forgetting what they were supposed to do on any given day. Difficulty finding the right words Another early symptom of dementia is struggling to communicate thoughts. A person with dementia may have difficulty explaining something or finding the right words to express themselves. Having a conversation with a person who has dementia can be difficult, and it may take longer than usual to conclude.

    Changes in Mood

A change in mood is also common with dementia. If you have dementia, it isn’t always easy to recognize this in yourself, but you may notice this change in someone else. Depression, for instance, is typical of early dementia. Along with mood changes, you might also see a shift in personality. One typical type of personality change seen with dementia is a shift from being shy to outgoing.

This is because the condition often affects judgment.

    Apathy

Apathy, or listlessness, commonly occurs in early dementia. A person with symptoms could lose interest in hobbies or activities. They may not want to go out anymore or do anything fun. They may lose interest in spending time with friends and family, and they may seem emotionally flat.

    Difficulty Completing Normal Tasks

A subtle shift in the ability to complete normal tasks may indicate that someone has early dementia. This usually starts with difficulty doing more complex tasks like balancing a checkbook or playing games that have a lot of rules. Along with the struggle to complete familiar tasks, they may struggle to learn how to do new things or follow new routines.

    Confusion

Someone in the early stages of dementia frequently becomes confused. When memory, thinking, or judgment lapses, occur, confusion may also arise as the person can no longer remember faces, find the right words, or interact with others normally. Confusion occurs for a number of reasons and applies to different situations. For example, the person may misplace their car keys, forget what comes next in the day, or have difficulty remembering someone they’ve met before.

    Difficulty Following Storylines

Difficulty following storylines is a classic indicator of early dementia. Just as finding and using the right words becomes difficult, people with dementia sometimes forget the meanings of words they hear or struggle to follow along with conversations or TV programs.

    A Failing Sense of Direction

Dementia onset commonly brings with it the deterioration of the sense of direction and spatial orientation.

This can mean not recognizing once-familiar landmarks and forgetting regularly used directions. It also becomes more difficult to follow a series of directions and step-by-step instructions.

    Repetitiveness

Repetition is common in dementia because of memory loss and general behavioral changes. The person may repeat daily tasks, such as shaving, or they may collect items obsessively. They also may repeat the same questions in a conversation after they’ve been answered.

    Difficulties adapting to change

For someone in the early stages of dementia, the experience can cause fear. Suddenly, they can’t remember people they know or follow what others are saying. They can’t remember why they went to the store, and they get lost on the way home. Because of this, they might crave routine and be afraid to try new experiences. Difficulty adapting to change is also a typical symptom of early dementia.

If you know someone dealing with these indications and want to know how to plan for the inevitable consequences of dementia, use the scheduling robot to set up an appointment to discuss planning options in confidence.

As found on Youtube

Initial Glimpses Into Trump’s “Repeal & Replace”

Last week, the House and Senate committees that oversee health policy and GOP leadership released a white paper detailing initial structure of the replacement of large sections of the Affordable Care Act (“ACA” or “Obamacare”). Importantly politically, the plan allows its most critical provisions to be passed through a special budget process that requires only 50 Senate votes. These procedural mechanisms will allow fulfillment of Trump’s promise that repeal and replacement would occur “simultaneously.”

Currently, it appears that the major changes will be to expand the number of Americans who could benefit from federal assistance in buying health insurance coverage. But, the plan will change who benefits most from that federal assistance.

The ACA extended health coverage to 20 million Americans by expanding Medicaid for low income and needy in participating states, and by offering income-based tax credits for middle-income people so they could buy their own insurance. Effectively, Obamacare redistributed wealth from the rich to the poor.

This new GOP plan would alter both those two existing mechanisms. First, it will drastically cut funding for states in providing free insurance through Medicaid to the low income and needy. Secondly, it will change how tax credits are distributed by giving all American not covered through their employment a flat credit. But there’s the sticker: the credit will be determined by age, not income levels, the latter being entirely disregarded in the calculus.

So, the larges financial benefits will go to older Americans. For example, Warren Buffett will get the same amount of financial assistance as someone his age, living in poverty. Likewise, a Trump Cabinet member, 64 year-old multi-millionaire Secretary of State Rex Tillerson, if he didn’t have access to government coverage, will get substantially more money than a poor, young person, but the same amount of financial assistance as any given 64 year-old American living in poverty.

To be sure, older people tend to have higher medical bills and so are charged more by insurers even under the ACA. So, matching tax credits to age has a rational basis–to a degree. And the new plan would simplify the current system in that verification of applicant income to optimize just the right amount of financial assistance would be eliminated. And, it would also eliminate incentives for low-income people to avoid earning more to avoid facing a reduction in benefits. But the GOP plan will result in more low-income people losing coverage if they can’t find the money to pay the difference between their tax credit and the actual cost of their health insurance. The ACA is set up to ensure low and middle-income Americans can afford the premiums charged for healthcare insurance.

Moreover, older people without employer-based insurance typically earn more than young people starting out their careers. Independent estimates of similar tax credit plans from Speaker Paul Ryan and Secretary of HHS Tom Price show changes based on tax credits will result in millions losing coverage.

Now, in moving resources from the poor to the rich, limits to deposits in Health Savings Accounts (“HSAs”) will increase. Generally, those with higher incomes paying more in taxes tend to benefit more from HSAs and recent studies show that HSAs are disproportionately held by families with higher earnings. The new program will also eliminate a number of taxes on the health care industry at large.

Curiously, the new plan omits changes to any of the Obamacare regulations the GOP have argued drive up costs of health insurance: the rules including mandates that every plan cover a standard package of benefits, and those requiring companies to charge the same prices to healthy and sick Americans (removal of pre-existing condition penalties). These rules can’t be changed through the budget process and so will require 60 votes in the Senate. It is yet unclear how these proposals will affect Aged, Blind & Disabled Medicaid assistance programs, if at all.

The new plan will undoubtedly change as it moves through committee hearings. But the above seems to set forth the outline of the discussion. So, against this backdrop essentially approved by every major committee working on health care in Congress, it seems that President Trump’s promises to provide a beautiful plan of health insurance for “everybody” are truly speculative.

Some Thoughts on Asset Protection and Liability Limitation Strategies: What OJ & Lance Armstrong Did

Retirement plans offer some long-term protection even in the event of a Black-Swan event such as a bankruptcy. While the discussion of 401(k) plans and Roth IRAs generally revolve around tax-deferred growth benefits, these devices, along with insurance-based vehicles, really show their true potential in terms of their respectively available asset protection features–even in the event of a bankruptcy.

OJ Simpson has had a judgment of $33 million plus against him since 1997. Yet, Simpson’s NFL defined benefit plan still holds over $4 million that is sheltered under ERISA law from his creditors on that judgment: the Ronald Goldman and Nicole Brown-Simpson families.

Similarly, Lance Armstrong has faced several lawsuits from entities seeking to recoup their payments to him after Lance admitted to doping while winning seven Tour de France races. These creditors even include the US Government and the US Postal Service! Yet, because Armstrong did a lot of asset protection planning in the form of trusts to help shield his assets, his retirement assets will likely stay away from the reach of creditors.

Currently, 401(k) plan assets are protected in an unlimited dollar amount against creditors in bankruptcy proceedings. Upon retirement, if the employee/investor transfers the 401(k) balance into a rollover IRA, and doesn’t commingle those same funds with personal contributions to the same IRA, the protection from creditors remains unlimited. But, IRAs comprised only of traditional IRA contributions and IRAs comprised of rollovers from an employer plan commingled with personal IRA contributions are capped at a maximum of $1.245 million (continues to be inflation-adjusted from 2005 basis).

Several states like California have become increasingly aggressive in pursuing traditional IRA assets in liability cases. So, investors should seek to keep as much as possible in segregated ERISA-sponsored retirement investments, as they still provide unlimited protection for the assets in the plan, even against these aggressive states.

Bottom line:  good asset protection planning can start with such a simple move as keeping proper form in your retirement plan assets.

Nobody Wants Your Parents’ Stuff

For the first time in history, two generations are downsizing simultaneously: Boomers and their parents. And millennials don’t want “heavy” assets tying them down in case they need to relocate for a job opportunity. So, it’s best to start facing the inevitable and address the disappointments and sentimentality early on, so you can make appropriate arrangements ahead of the time you’re going to have to take action. Here’s a great article that provides some tips, insights, and solutions:  http://www.forbes.com/sites/nextavenue/2017/02/12/sorry-nobody-wants-your-parents-stuff/#1c10cd5f3afe

Estate Planning: The Problems of Disinheritance and Alternative Solutions (There’s always a better way)

Parents and children each have duties imposed on the other by society, custom and tradition.  After the teen years, the family mobile dynamic often becomes broken, breaking the parent/child bond, and leading to estrangement.  When carried to the extreme, vengeful or unhappy parents may seek retribution by exercising the only remaining power they have left—disinheritance.

Disinheritance may be a parental attempt to save a wayward child from alcohol or substance abuse issues.  Other issues include parental concerns over a child’s spouse, concerns that a child never properly applied him/herself, abuse issues that cut both ways, or which ultimately lead to the denial of access to grandchildren.

I posit that the choice of disinheriting a child is akin to the death penalty—one reserved for only the gravest of circumstances and wrong-doing and then only implemented after a series of appeals.  Otherwise, if there are siblings, they will have to deal with the repercussions the disinherited child will inevitably raise.  These actions will be taken towards and involve the survivors who did inherit.  Those children’s relationships with the disinherited will forever be strained until some compromise is reached or one of them dies.  Moreover, the hurt inflicted by the disinheritance becomes “permanent” in the psychological sense, and there are always more than one side to any story.  And, is that really the legacy any parent wishes to leave—that of being such an old, unforgiving, crotchety cuss that the parting shot with one foot in the grave was the ultimate “gotcha?”

The result of the ultimate “Gotcha!” or disinheritance, is that the surviving children who were received an inheritance is that they may have to buy peace by carving out an appropriate, equitable share to the disinherited child.  In that case, the parent has effectively projected his/her own problems onto another child or grandchild, instead of having the courage and character to appropriately and properly address those issues with the estranged child themselves, during their lifetime.

And, of course, the disinherited child may bring a will or trust court action to invalidate the parent’s estate plan, with the hope of receiving an intestate share equal to the other children’s shares.  Not only will the lawsuit be stressful and upsetting to the other family members, it will be particularly hard on any child who is in charge of administering the estate.  Any court action will also diminish how much is left to distribute.

Reconciliation is possible, but difficult and not a frequent outcome.   A better alternative is for the parent to finish life being as good a parent as he/she can be, and at least try to be better than the child, adult child or not, and leave some incentive there to stop the cycle from passing on to the next generation.  Several alternatives should be considered:

·        Consider reducing the inheritance until such time as when (if ever) the parent and child are reconciled;

·        Put incentives in place in a trust that would reward the desired behavior and work towards normalizing the full inheritance;

·        Leaving some or all of the child’s inheritance to that child’s own children (who may themselves be the objects of neglect or abuse).

Leaving a reduced inheritance demonstrates that the child was once a part of the parent’s life.  It also provides an incentive to the child not to contest the will or trust. The use of incentives in a trust protects the principal, yet simultaneously incentivizes the person to turn away from destructive behaviors.  The last alternative recognizes that the grandchildren are not to blame for their parent’s choices and behavior.  It prevents inadvertent punishment of the grandchildren by allowing them to be recognized in the estate while bypassing the individual who was intended to be punished.  While it is an alternative to outright disinheritance, I view it as the last gasp of an otherwise dysfunctional parent who themselves would rather take bitterness to the grave than to appropriately address their own role in the dysfunctional relationship and make appropriate provision to heal the dysfunction, such as funding psychological assistance or a rehabilitation program.

We will be happy to explore each option with you in confidence in our offices.  Just reach out and contact us to arrange a mutually convenient time to meet.