How to Handle Resistance to POA – Part 1
I have written several posts over the years on the importance of powers of attorney and the problems many people encounter when trying to use them. It seems that as time has passed the problems have only increased in frequency. Just this past week we received two calls from family members serving as agent under a power of attorney for a loved one. When presenting the POA to a bank or other financial institution many agents experience resistance. Often the financial institution will insist on the principal – the person who has signed the power of attorney – to be present. But if the principal can’t appear in person, which is increasingly the case as the population ages, does that mean the power of attorney is invalid? What if the bank says the POA is too old? Can that be true? Unless you know the law and your rights, it is difficult to respond to these questions. State law governs powers of attorney so there may be differences from state to state. Next week I will share with you what New Jersey law provides and how to address the resistance you may experience.
The Declining Pool of Caregivers
Another article, this time in the Wall Street Journal caught my eye the other day. It’s about how this country is running out of family caregivers at a time when the need for those caregivers is increasing. Some of my recent posts have included statistics showing the continued trend of an aging population and growing demand for long term care. The median income of retirees has remained relatively unchanged for years. At the same time, retiree debt has increased as a result of paying for the care of an older family member such as a parent or for the education and other needs of a child. Although I have written much about the cost of long term care in terms of nursing home assisted living facility costs or paying for private aides the reality is that there are more than 34 million people providing unpaid care. About 95% of that care is provided by family members. The amount of this unpaid care is estimated to be worth about $500 billion. That’s 3 times the amount that Medicaid doles out for care, just to compare. The problem is that this pool of caregivers is shrinking and it’s happening for a
The Talk
I have written in past blog posts about how best to approach the topic of long term care with a parent or elderly loved one. There are no two situations that are exactly alike so there is no one best way to handle the delicate subject. It is especially difficult when the senior is resistant to making a change or to even acknowledging that he/she needs some assistance and is living in an unsafe environment. It is hard to imagine a worse outcome however, than the one that occurred last month in Arizona. According to various media reports a 92 year old Arizona women allegedly shot her son when he tried to place her in an assisted living facility. Police responding to the scene found Son dead on the floor as a result of a gunshot wound and Mom in a chair muttering, “You took my life, so I’m taking yours”. She then told the police that she killed her son because he wanted to put her in a facility. We don’t have a complete record of what events and conversations transpired leading up to this tragic outcome. It appears that Mom had moved into Son’s house only months
Buzz Aldrin’s Legal Fight
As the population ages so do our celebrities who face many of the same elder related legal issues as the rest of us. Buzz Aldrin is yet another example of this. His story caught my attention last month. Aldrin, a local guy, was born and raised in Montclair, New Jersey and is known along with Neil Armstrong as the first men to walk on the moon. July 20, 1969 is a date etched in American history. It is one of the first memories I have of an historic event which I personally witnessed. Aldrin is now 88 years old and living in Florida. 2 of his 3 children have asked a Florida court to appoint them to be his co-guardians, citing his cognitive decline, paranoia and confusion as reasons. Andrew and Janice Aldrin say they want to manage his finances and his businesses. They say he is being manipulated by people he is unfamiliar with. Aldrin, for his part, says that he is unquestionably competent and does not need a guardian. He has filed a suit against his children and his business manager alleging elder exploitation. As with most of these types of lawsuits it comes down to money.
What Medicaid Covers – Part 2
In last week’s post I was telling you about a call I received revealing a very common misconception about Medicaid. Julie will lose her alimony payments in 6 months, dropping her income from $5000 per month down to $1000 per month. She is 69 years old and in good health. She does not need any long term care at this time. The reason for her call was to ask me about applying for Medicaid. Her thought is that Medicaid could replace her income. It’s that thought that is so common and also so wrong. That’s because the Medicaid program does not provide income. It also does not provide any money directly to a recipient. Instead, it is an insurance program that pays the cost of medical and long term care – depending on which program a recipient is eligible for. In some cases, people become eligible for Medicaid because they are also eligible for SSI. Supplemental Security Income does provide income to certain low income disabled individuals. They also get Medicaid health insurance coverage when they start receiving SSI payments. In Julie’s case, however, she won’t qualify for SSI. She already gets a
What Medicaid Covers – Part 1
The call we received last week raised a common misunderstanding about Medicaid. Julie called regarding getting Medicaid benefits. Julie is 69 and in relatively good health for her age. She is selling her home and will be moving to a rental unit in a senior housing complex.
Julie expects to sell her home and net $200,000 after paying off a $250,000 balance on her mortgage. She has another $200,000 of savings. Julie also has a long term care insurance policy that pays as much as $300 a day for long term care in a nursing home, assisted living facility or care at home for 3 years. She also has income of $1000 per month from Social Security and she receives $4000 per month of alimony from her ex-husband.
So why is Julie asking about Medicaid? It appears that $5000 of income per month is enough to support her lifestyle. Julie is concerned because her alimony payments will terminate in 6 months and she is looking to replace the $4000 of alimony income that she will lose. With only $1000 a month of income, Julie will need to dip into her savings to meet her monthly expenses. Julie figured that Medicaid could help plug that gap.