CARES Act – An Overview for Seniors and Their Families
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was passed by Congress and signed by President Trump last month. It is a $2 trillion aid package with a lot to it. Because of the speed with which it was written and passed, there is much confusion about what’s in it and who is eligible. This week’s post is meant to provide an overview, however, the details and exceptions are far more complicated than can be covered here. The following, however are some of the provisions that may be relevant to our clients and their families. Stimulus payment – Up to $1200 per individual ($2400 per married couple if you file a joint income tax return) plus $500 for each qualifying child. You qualify for the full payment if your adjusted gross income as shown on your 2019 tax return (or 2018 return if you haven’t filed 2019 yet) is $75,000 or less ($150,000 if married filing jointly). You can qualify for a smaller amount if your AGI exceeds $75,000 but you get nothing when you
Should I Move My Loved One?
As the current Covid-19 pandemic continues and experts predict that the peak in the number of new cases is expected to be reached sometime this month we have been taking calls from family members who want to know whether they should consider moving their loved one to another facility or to their own home. There isn’t a one size fits all answer and it depends on the facts of each particular case, however, there are a number of things to consider. The first point – which is obvious to most of us – is that just because Facility A where my mother resides has had reported cases of the virus and Facility B has not, does not by itself mean Facility B is safer. The virus continues to spread exponentially. Facility B may not have any cases when I move her in but that doesn’t mean tomorrow or next week there won’t be an outbreak. Most facilities in the state now have limited outside visitors to their buildings so that it will also probably be impossible to see Facility B before I make a decision. How about if I move Mom to my home temporarily? Is that safer? Maybe yes and maybe no. It depends on who I am living with. If a member
Document Signing During Covid-19 Crisis
As of this writing we are in the midst of a pandemic the likes of which none of us living today has ever experienced. Historians tell us that the Spanish Flu epidemic from 1918 to 1919 comes the closest. Government shutdown of nonessential businesses has caused widespread disruptions and affected people and businesses in different and very personal ways. Given the nature of our practice, we are receiving calls from concerned clients and family members. Some have loved ones in facilities but can’t visit them and are concerned about the spread of the virus there. Others are prioritizing long term care and estate planning that they put off as they see the randomness of this all. There have been numerous reports of one person in a household contracting the virus while others remain unaffected. As I always explain to clients and prospects, the basic tools that we use to help clients begin with legal documents – a power of attorney, health care directive, will and often trusts. The execution (signing) of these documents must conform to certain legal requirements. Most often they must be signed in the presence of two witnesses and a notary public who must sign an acknowledgement and affix his/her notary stamp or seal. (The health care directive can be signed before two witnesses or a notary
Problems When Renewing Medicaid – Part 1
I have written a few times about the problem of keeping Medicaid once you have been approved. There are a number of rules and regulations that – if violated – could cause the loss of benefits. A recent case in our office illustrates another way that we haven’t previously experienced. We applied for Medicaid for a married couple. The application process was made more difficult because the caseworker did not understand some of the documents she was looking at and insisted on the production of other documents that did not exist. As a result, our application was originally denied and I had to file an appeal before it was ultimately approved. Under Medicaid’s asset rules for a married couple, the healthy (non-Medicaid) spouse is entitled to keep a certain portion of assets – what is known as the Community Spouse Resource Allowance or CSRA. In our case that amount was calculated and we established that as of our requested Medicaid start date the combined assets of the couple had been spent down below that targeted amount. Everything had turned out as we wanted and expected. The problem we encountered, however, didn’t present itself until Medicaid’s annual redetermination. As I have written about in the past, each year Medicaid checks in to see if you are still
Thoughts on the Coronavirus
With the spread of the Coronavirus (named COVID-19) in the news and changing seemingly by the minute I decided to devote this week’s post to the topic. People are understandably nervous. It can seem impossible at times to sort through the information, especially when one government official says one thing but then almost immediately is contradicted by another. There are some facts and advice that, at least right now, public health and government officials agree on. The symptoms of COVID-19 are similar to the flu, which especially hit younger and older people the hardest. At this point, the majority of deaths are to the elderly and other patients with underlying serious health conditions. A concern is that seniors – including those in group living settings such as senior housing, nursing homes and assisted living facilities – are especially vulnerable because spreading the virus is much easier. We have certainly seen this on cruise ships. Much media attention has been placed on Washington State where the virus has spread among residents and workers at a Seattle area nursing home. Many facilities here in New Jersey have cancelled industry networking events to limit the risk of visitors bringing the virus into their buildings. Notices appear on front entrances asking people not to visit if
What to do if a Bank Refuses to Honor Your Power of Attorney
2 years ago I wrote about bank and other financial institutions' resistance to powers of attorney (POAs). Since then we have seen an increase in frequency of these issues so it bears revisiting some of the common problems and solutions. When we draft POAs for clients we tell them to expect some resistance. Many financial institutions act out of an abundance of caution. They are concerned about fraud and their own liability, however they often go too far. Bank policies are often too restrictive, lack common sense or just plainly violate state laws. We tell clients to expect push back but if you find yourself in that situation (ie. looking for bank approval of a POA) what should you or can you do? The more official looking the POA the less resistance to honoring it you are likely to get. For one thing, I don't recommend "do it yourself" or "internet" POAs. Often they are done incorrectly. I have seen some in which the principal (the person designating someone to act for him/her) lists him/herself as the agent rendering the document meaningless. Unfamiliarity with legal documents can lead to mistakes that invalidate