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Wednesday, June 22, 2022

What Can ABLE Account Money Be Spent On?


ABLE (Achieving a Better Life Experience) accounts offer people with disabilities a great, tax-free way to accumulate money without jeopardizing their qualifications for Supplemental Security Income (SSI) and other means-tested programs. Withdrawals are tax-free as long as the money is used for “qualified disability expenses.”  The arguments for starting and maintaining such funds are overwhelming, not least of which is the wide variety of things on which the money can be spent.

To build 529A ABLE accounts, beneficiaries (and other contributors) can put up to $16,000 total into these funds each year.
Read more . . .


Friday, April 8, 2022

Planning for Incapacity


Last month, we introduced our year-long project to organize our estates.  How did you do? Did you check all the boxes?  As with most projects, sometimes getting started is the real goal, so give yourself a gold checkmark if you did anything to start getting your estate in order. 

This month, it is time to make sure we have legal documents in place to protect in case we become unable to make or communicate significant decisions about our healthcare or our finances.

Years ago, I had a potential client whose daughter called my office several times to make appointments for him to get his estate planning documents prepared.  As each appointment time approached, he called my office to cancel.
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Thursday, March 31, 2022

What is a guardian, what is a conservator and when should you become the guardian or conservator of an adult?

In Georgia, a guardian is the term used for the person responsible for managing affairs related to the health and safety of the ward, while a conservator is responsible for the financial affairs of the ward. Ward is the term used for someone who has a guardian or conservator. The relationship of the guardian or conservator to the ward is similar to that of a parent to a minor child.

The judge of the probate court in the county in which the ward resides or can be found appoints guardians and conservators.

When a guardian or conservator is appointed, the ward loses many rights.


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Wednesday, February 10, 2021

Estate Administration Basics

What should you do when a loved one dies? How and when does the estate get administered?

Administration is defined as Court-supervised distribution of an estate during probate. Also used to describe distribution process for a trust. Probate means proving the will, but it can also be used to indicate a court process to handle a deceased person’s estate.

When a loved one dies, there is often confusion and panic about what legal and financial steps should be taken by survivors.  There may be little information about the finances of the decedent, and spouses or children are left to sort through what may seem like a never-ending mass of papers.


Read more . . .


Friday, February 7, 2020

Could Your Bad Estate Plan End Up as The Plot of a Book?

My favorite hobby is reading and I try to combine my love of reading with my profession of estate planning.  The plots of some of my favorite books are about dysfunctional family relationships complicated by really bad estate planning!

Here are three books I recommend where siblings were torn apart by their parents’ bad estate planning choices.

The Nest

by Cynthia D’Aprix Sweeney

The four siblings of the Plumb family - Leo, Melody, Beatrice, and Jack- are the beneficiaries of a trust fund they call “The Nest” left to them by their father. The terms of the trust provide that the trust assets will be distributed equally to the four siblings when the youngest, Melody, reaches age 40.

When the book begins, Melody is fast-approaching her 40th birthday, and each of the siblings is anxiously awaiting the distribution that could solve their self-inflicted life problems.


Read more . . .


Friday, August 17, 2018

What it means to be a healthcare surrogate

When nominated to become a surrogate healthcare decision maker for someone, you may be asked to make decisions about what healthcare procedures and care will be appropriate for someone other than yourself. You will only be asked to make healthcare decisions if the person is not able to make or communicate those decisions.  you may have to decide what medical care the person would want without ever having discussed the issue with them.

In general, as a healthcare surrogate you will have the right to:

  • Make choices about all medical care for the person, to include surgery, medical tests and pain management.

  • Make choices about where the person will receive treatment

  • Take legal action in order to have the person’s wishes honored

  • Apply for insurance, including Medicare and Medicaid for the person


Read more . . .


Thursday, June 22, 2017

How Safe is My Mother from Financial Exploitation?


 

Jennifer’s 80-year-old mother seemed to be running low on funds every month.  By the end of the month, she had no money for groceries.  Jennifer had helped her mother with a budget, so she thought her mother had plenty of money to make it through each month.  When she asked her mother to allow her to look at her bank statements, though, Jennifer discovered a series of automatic debits to several companies she did not recognize.  It turns out, her mother had signed up for monthly book delivery clubs, as well as recurring magazine subscriptions for magazines Jennifer knew her mother did not read.
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Thursday, December 3, 2015

Important Things You Need to Know About Medicare Part D

 

This year, a relative of mine had two issues that affected her prescription plan.  First, she was diagnosed with an illness and prescribed new drugs.  Second, she forgot to pay her Medicare Part D premiums and lost her prescription coverage.  How do you choose a Medicare Part D plan?  How do changes in medication affect the Part D insurance plan a participant might choose?  

Medicare Part D is the health insurance that covers prescription medication for outpatient drugs.  Part D is a fairly recent addition to the Medicare Alphabet, having been added in 2006.  This plan seems incredibly confusing, and it can require some research to determine the best plan for each individual.

Medicare Part D is a federally subsidized drug benefit.  The participants will pay a monthly premium to an insurance company that has contracted with the government.  In 2015, the average premium is around $33.15 per month.  After a participant has paid the deductible $320.00, the participant will pay 25% of the cost of the drugs until the total cost of the prescription drugs has reached $2960.  The federal government pays $2,220 of this amount and the participant will pay $760.  

But how to choose a Medicare Part D plan?  Medicare has a pretty powerful program online that can help you make the decision.  Go to www.medicare.gov/find-a-plan.  It will ask you to enter the zip code of the participant, and then will ask for all of the medications the participant is taking, the dosage of the medications, and the number of pills purchased each time.  It will also ask for the pharmacy where the participant usually purchases the drugs.  Once all of that information is entered into the find-a-plan site, the site will spit out a list of plans with comparative information including the cost of premiums, the annual drug deductible, the estimated annual drug costs, and the rating of the plan based on 3 out of 5 stars assigned by Medicare. Medicare sometimes assigns a 5-star rating for a Part D insurance plan that will be indicated by a yellow star with a 5 in the middle next to the Medicare Part D plan.   Once you have entered all of the information, you can compare the costs of the various plans.  Of course, the information is only valid if all of the drugs in the correct dosages are entered into the system.  Be sure to check to see whether the cost of the drugs will go up during the year.  Usually, the cost of the prescription drugs goes down once the deductible is met, and goes up again when the participant hits the donut hole at $2960.

The participant will have to go to a pharmacy in the plan’s network in order to get the lower price you expect to pay. 

Not everyone needs a Medicare Part D plan.  Some retirees may have coverage under their retirement plans, veterans who qualify for free or reduced price medications may not need the coverage. That is called “creditable coverage.”  If you do need it, though, and don’t sign up for it when eligible, you will be charged a penalty when you do finally sign up.  The penalty is at least 1% for every month you delay enrolling past the Initial Enrollment Period.

 

 

 

 


Thursday, November 19, 2015

What You Should Know About Medicare Part B

 

Medicare Part B pays for doctor’s services, whether in their offices, the hospital, your home or other settings, and lab tests, screenings, medical equipment and other supplies. 

You will pay a monthly premium, which may be deducted from your Social Security, Railroad Retirement or Civil Service check.  If the premiums are not deducted from your retirement or disability check, you will be required to pay premiums quarterly.  In 2015, the monthly premium for most recipients was $104.90, though the premiums are higher if your annual income on your individual tax return is over $85,001 or on your joint return it was over $170,001.  The highest premiums in 2015 are $335.70 per month.

Once you pay the premium, there is a deductible and a coinsurance amount that you will pay.  The yearly deductible is $147, and the coinsurance amount is 20% of the Medicare-approved amount that is charged by the providers. 

For example, if you visit a doctor and the doctor accepts assignment from Medicare, the doctor agrees to accept the amount that Medicare has approved for the service.  Medicare pays 80% of the cost and you will pay 20%.  If the doctor accepts Medicare patients, but not an assignment, the doctor can charge you up to 15% more than the Medicare approved amount and you will have to pay the extra amount unless you have a Medigap policy.  If the doctor does not accept Medicare, Medicare will not pay for the service and you will be responsible for the entire amount of the service provided.  Medigap insurance won’t pay for the cost of a doctor who has opted out of Medicare.

Do I have to have Medicare Part B?  You are not required to sign up for Medicare Part B, but you will be responsible for paying privately for the services covered by Part B (unless you have a Medicare Advantage Plan) if you have chosen not to sign up.  If you don’t enroll in Part B when you turn 65 and enroll in Part A, when you do sign up for Part B you may be have to pay a higher premium for Part B.  The premium can go up 10% for each 12-month period that you could have been enrolled in Part B.  If you have insurance through an employer or have a union group health insurance plan that is your own, a spouse’s or a family member’s (if you are disabled), you do not need to sign up for Part B if that insurance will be the primary insurer.  If the plan is not the primary insurer, and Medicare is the primary, you will need to sign up for Part B.

Note that Cobra coverage does not count as employer coverage.

 

 

 

 

 


Thursday, November 12, 2015

UNDERSTANDING THE BASICS OF MEDICARE PART A

 

Medicare Part A is known as hospital insurance.  That term may be misleading, however, because services provided in the hospital by doctors, anesthetists, and surgeons are covered by Medicare Part B.  Part A covers nursing care, such as care provided by professional nurses, a semi-private room, meals, lab tests, prescription drugs, medical appliances and supplies, rehabilitation therapy.  Services provided for home health care, when you qualify, or hospice care are also covered under Part A.

Generally, the Part A premiums are paid for by the Medicare taxes withheld from your paycheck if you or your spouse has worked enough to qualify for 40 or more work credits.  If you have not worked long enough to earn the 40 credits, you may pay up to $407/month based on the number of credits earned during your employment.

You can qualify for Medicare Part A if you are age 65 or if you are disabled and qualified for Social Security Disability Insurance for 24 months. 

Most people assume that Medicare will cover the cost of all health care once you reach 65.  That is not truly accurate.  Although the premiums for Part A may be “free” because you or your spouse paid through the payroll deductions from your paycheck while you were working, in most circumstances you will be required to pay a co-pay or co-insurance.  In addition, you will be required to meet a deductible of $1,260 for each hospital benefit period in 2015.  What is a hospital benefit period?  That is the period from when you are admitted to a hospital and ends when you have been out of the hospital for 60 days in a row.  After the deductible is met, Medicare will pay for the full cost of the hospital care for 60 days.  If you go home from the hospital before the 60 days are up, but are readmitted during that 60 days, the costs of the stay will be covered.  After 60 days and before day 90, you will pay $315 for each day of the benefit period.  After 91 days, you will pay $630 per day.  (These are the 2015 costs.  The 2016 rates will most likely be higher.)

What about admission to a Skilled Nursing Facility (SNF)?  Medicare will pay the full cost of Days 1 through 20 in a SNF.  From Day 21 through 100, you must pay a daily co-pay of  $157.00 (These are 2015 costs.)  and from Days 101 on you must pay all of the costs. Before Medicare will pay for your stay in the SNF, however, you must be admitted to the hospital for a 3-day inpatient stay.

You can buy a Medigap policy to cover some of the Part A deductibles and co-pays.  If you are admitted to a SNF, long-term care insurance may cover some of the costs of your care.

Open enrollment for Medicare plans is October 15 through December 7th, 2015.  At that time, you can compare Medicare Advantage (Part C)  plans to regular Medicare plans to determine which option is the best one for you.

 

 

 

 


Thursday, July 23, 2015

Four Ways to Pay for Long-Term Care

Concerned about how your parents will pay for their long-term care?  Here are the four basic ways to pay for care.


Read more . . .


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The Elrod-Hill Law Firm,LLC assists clients with Estate Planning, Veterans Benefits, Medicaid, Elder Care Law, Probate, Special Needs Planning and Pet Trusts in the North Atlanta area including the counties of Dekalb, Gwinnett and Fulton.



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