This document outlines ways to avoid problems with elder law and estate planning. It discusses: 1) The increasing rates of conditions like Alzheimer's and diabetes in older populations and the high percentages of seniors who will need long-term care or nursing home-level care. 2) Common mistakes people make like not having a will, power of attorney, or long-term care plan. It also warns against signing over all assets to children. 3) The importance of health care directives, life insurance, and reviewing plans after major life changes like remarriage. 4) Recommends getting advice from qualified elder law attorneys rather than relying on what "they" say.

2. How To Avoid an
Elder Law Train
Wreck *
By
Robert A. Mason, JD, CELA,
Mason Law, PC
Asheboro, North Carolina
Savannah, Georgia
*Maybe
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3. Setting
The Stage
Planning Crisis
• Playing The Odds –
– By 2025 50% more with Alzheimers
(Alzheimers Association)
– By 2025 100% more 65+ with Diabetes
(American Diabetes Association)
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4. Setting
The Stage
Planning Crisis
• Playing The Odds –
– 70%
The Percentage of Those 65+ Who Will Need Some
Level of Long Term Care Services
– 30% to 40%
The Percentage of Those 65+ Who Can Expect
Nursing Home Level of Care
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5. Setting
The Stage
Planning Crisis
• Playing The Odds –
– 50% to 60%
Percentage of Nursing Home Costs Paid by
Medicaid
– Government WILL Tighten Benefit Rules
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6. Setting
The Stage
The Caregiver’s Squeeze
• Almost 10 MM Children 50+
Care For Parents
• Percentage Has Tripled In
15 Years (25%)
• Daughters Bear Impact
Over Sons
- The MetLife Study of Caregiving Costs to Caregivers (June 2011)
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7. Setting
The Stage
The Caregiver’s Squeeze
• Adult Caregivers 50+ More
Likely To Have Health Problems
• Caregiving Can Jeopardize
Future Financial Security
- The MetLife Study of Caregiving Costs to Caregivers (June 2011)
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8. TEN GREAT WAYS TO AVOID AN
ELDER LAW TRAIN WRECK (maybe)
1. GET A WILL ON TRACK!
2. PUT SOME STEAM IN A POWER OF
ATTORNEY
3. DON’T SIGN OVER ALL YOUR
PROPERTY TO THE KIDS
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9. TEN GREAT WAYS TO AVOID
AN ELDER LAW TRAIN WRECK
(maybe)
4. COUPLE UP A HEALTHCARE
ADVANCE DIRECTIVE
5. FUEL UP LONG TERM CARE
PLANNING
6. PLAN FOR DISABLED LOVED ONES
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10. TEN GREAT WAYS TO AVOID
AN ELDER LAW TRAIN WRECK
(maybe)
7. CARRY ADEQUATE INSURANCE
8. DON’T IGNORE PLANNING AFTER A
“LATE” MARRIAGE (A CHANGE IN CONDUCTORS!)
9. REVIEW OR UPDATE YOUR ESTATE
PLAN
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11. TEN GREAT WAYS TO AVOID AN
ELDER LAW TRAIN WRECK (maybe)
10. AVOID BAD ADVICE:
DO NOT LISTEN TO:
THEY & THEM
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12. 1. GET A WILL ON TRACK
• Common misconception: I don’t need a
will because . . .
– Just my spouse and me
– I don’t have a large enough estate
– My family knows how I want things
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13. 2. PUT SOME STEAM IN A
POWER OF ATTORNEY
• Often overlooked
• Absolutely critical
• Conservatorship may be only option
• Severe limits on conservator’s planning
13

14. 3. DON’T SIGN OVER ALL YOUR
PROPERTY TO THE KIDS
• Common Practice
• Exposes to Kids’ Liabilities
• Horrible Tax Planning
14

15. 3. DON’T SIGN OVER ALL YOUR
PROPERTY TO THE KIDS
(Continued)
• Better to Use Irrevocable Trust
• Bank Account Problem (“I Put My Kid’s
Name on the Account”)
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16. 4. COUPLE UP A HEALTHCARE
ADVANCE DIRECTIVE
• Squabbling Children
• May Want to Alter Statutory Priority
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17. 5. FUEL UP LONG TERM CARE
PLANNING
• LTC Insurance – insurability issues
• 5 Year Medicaid Lookback; Crisis
Planning
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18. 5. FUEL UP LONG TERM CARE
PLANNING
• Second Marriage Problems
• Many Solutions – esp. for Couples and
Disabled
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19. 6. PLAN FOR DISABLED LOVED
ONES
MUCH can be done
• Tragic to leave to “healthy” kids to “look
after” sibling
• Special Needs Trusts
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20. 7. CARRY ADEQUATE
INSURANCE
• Long Term Care Costs
• MediGap/Supplemental Policies
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21. 7. CARRY ADEQUATE
INSURANCE
The GAP That MediGap Covers:
Part A
– Hospital
» $1,156 deductible
» Days 1 – 60: $0
» Days 61 – 90: $289/day
» Days 91 – 150: $578/day
» Actually only 90 days “per spell of illness” – 60
days “lifetime reserve”
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22. 7. CARRY ADEQUATE
INSURANCE
The GAP That MediGap Covers:
Part A (Cont’d)
– SNF
» Stringent conditions
» Days 1 – 20: $0
» Days 21 – 100: $144.50
» Days 101+ NO COVERAGE
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23. 7. CARRY ADEQUATE
INSURANCE
The GAP That MediGap Covers:
Part B - Mds and other providers
» $140 deductible
» 20% coinsurance
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24. 8. DON’T NEGLECT PLANNING
AFTER A “LATE” MARRIAGE
(Change in conductors)
• EVERYTHING Counts Under Medicaid
• Battling “First Families”
• No Prenups; Ignored Prenups
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25. 9. REVIEW OR UPDATE YOUR
ESTATE PLANNING
• Exclusion Amount Going Up
• Death of One Spouse
• Testamentary Asset Protection Planning
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26. 10. AVOID BAD ADVICE – DO
NOT LISTEN TO WHAT “THEY”
SAY
“Well, Mr. Mason, THEY say that . . .”
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27. Really, Really BAD Idea
11. BONUS SECTION! DON’T
DO A THING!!
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28. THREE Things You Can Do
Today
No. 1:
facebook.com/m
asonlawpc
An Open Forum – Ask Questions
Late Breaking News
Updates
Interesting Articles
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29. TWO Things You Can Do Today
No. 2:
Sign Up For Elder Law Update
Interesting Original Articles
News You Can Use
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30. THREE Things You Can Do
Today
No. 3:
Visit Our Website: www.masonlawpc.com
Packed Full Of Info
Open Comments (Ask Questions On Articles)
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31. Serving Central North Carolina
Elder Law * Wills & Trusts * Advanced Asset Protection
Special Needs Law
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