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A lot of people question this term, because people of all ages can have the same legal concerns. This is true in some ways, but there are certain legal and financial matters that are only relevant to senior citizens.
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Elder financial abuse is a very pressing matter within the elder law community. The MetLife Mature Market Institute worked with the National Committee for the Prevention of Elder Abuse and the Center for Gerontology at Virginia Tech to produce a groundbreaking survey in 2008.
This subject had never been closely examined prior before this project was undertaken, and it produced some eye-opening statistics. The study found that $2.6 billion were lost each year due to instances of elder financial abuse.
A subsequent survey that was conducted in 2015 upped the figure to $36.5 billion annually. Experts find it difficult to pin down the true extent of the problem because the vast majority of cases are unreported.
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According to the MetLife survey, 51 percent of cases of elder financial abuse are committed by people that the victims do not know. Family members, friends, and neighbors commit 34 percent of the crimes, and professionals are responsible for 12 percent.
The strangers will typically be scam artists that target seniors because they view them as easy marks. Abusers that are known to the victims commit crimes of opportunity. They have the access, and they have the trust of the elders they are abusing.
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One of the reasons is loneliness. Many elders welcome contact because they live largely isolated lives, and this vulnerability is sometimes exploited by nefarious types.
Another major factor is cognitive impairment. According to the Alzheimer’s Association, 10 percent of elders have contracted the disease, and the number is 32 percent among people that are 85 years of age and older.
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Yes, you can be proactive about the implementation of an incapacity plan that would allow a trusted individual of your choosing to manage your affairs if it ever becomes necessary.
Aside from elder abuse, what is another elder law issue I should understand?
A significant percentage of elders with cognitive impairment require nursing home care eventually, and there are people in nursing homes for other reasons. These facilities are extremely expensive, and Medicare does not pay for nursing home care.
Medicaid is another federal/state government administered health insurance program that covers the custodial care that nursing homes provide. Since it is a need-based program, there is a $2000 limit on countable assets.
Your home, one vehicle, engagement rings and heirloom jewelry, and your personal belongings and household items are not considered to be countable assets. There are also some allowances for a healthy spouse that can live independently when their spouse is entering a nursing home.
Elder law attorneys help clients develop financial strategies that will lead to future Medicaid eligibility. This will often include the utilization of an income-only Medicaid trust.
This would be an irrevocable trust, and the grantor would not be able to access the principal or act as the trustee. However, as the name would suggest, they would be able to receive income that is generated by assets in the trust.
The principal would not count if the grantor applies for Medicaid to pay for long-term care, but advance planning is key. There is a five-year look-back period, so the funding must take place at least five years before the application for Medicaid coverage is submitted.
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Schedule a Consultation Today!
As you can see, there are serious elder law issues that should be addressed. When you develop a plan for aging that facilitates the effective passing of your legacy, you can go forward with peace of mind as the years pass.
If you are ready to get started, we are here to help. You can schedule a consultation appointment if you call us at 802-879-7133, and you can fill out our contact form if you would prefer to send us a message.
