Elder Law Elements

Senior Care Planning Are you a mature American (i.e., age 65 or older), do you care about someone who is, or do you anticipate becoming a mature American yourself one day? If so, then, according to the U.S. Census Bureau, you are in good company. In 1960, there were nearly 17 million mature Americans. Today, there are more than 35 million and by 2010 there will be some 40 million mature Americans. Thereafter, due to the graying of the Baby-Boom generation, we will witness that figure jump to 53 million in 2020, and to 70 million in 2030! As this mature population increases, so will the need for Elder Law services.

What is Elder Law?

Generally speaking, Elder Law can be defined as the holistic application of general legal principles to the specific emotional, logistical and financial needs of mature Americans. Many mature Americans are concerned with two fundamental threats to their dignity: (1) becoming incapacitated, and thereby losing control to the court system over their personal, health care and financial decisions; and then (2) running out of money due to the catastrophic costs of long-term (nursing home) care, and ending up on welfare (Medicaid). Fortunately, these threats may be minimized, or even avoided, through properly coordinated legal and financial planning.

Long-Term Care Insurance

Long Term Care Options      No one relishes the notion of paying insurance premiums of any kind. After all, you can pay and pay and pay ... and never collect on a claim. If you are fortunate.
     The purpose of insurance is to transfer a risk that you can afford (i.e., the payment of a premium with no guarantee of its return) to cover a risk you cannot afford. For example, what homeowner does not insure their personal residence from damage due to a fire? Or, what automobile owner does not insure their auto from damage due to a collision? Consider this: The odds of a major fire insurance claim are about one in 88, with an average claim of $2,000. The odds of an auto insurance claim are about one in 47, with an average claim of $8,000.
     Against this backdrop, why would any responsible, mature American (i.e., age 65 or older) not insure against the financial risk of requiring long-term care at some point? The odds are nearly one in two that a person over age 65 will need long-term care for about 2.5 years at an average annual cost of $76,460 in 2008, making the average claim in excess of $200,000.

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Is it Time to Review Your Plan?

Proper estate planning is a process, not simply a one-time event. Therefore, it only makes sense to periodically review your planning goals and legal instruments. Review this list of life changes that could alter your estate-planning needs. If you notice some areas that might apply to you or your family, it may be time for an estate plan check-up.

Marriage, remarriage or divorce
Death of a spouse
Substantial change in estate size
Death or incapacity of an executor, trustee or guardian
Move to another state
Acquisition of property in another state
Birth or adoption of a child or grandchild
Serious illness of a family member
Change in business interest or retirement
Change in insurability for life insurance
Marriage or divorce of a beneficiary
Change in beneficiary attitudes
Financial irresponsibility of a child
Change in tax law
More than two years since review of plan with attorney

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This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. You should consult an attorney for individual advice regarding your own situation.