The Fiscal Cliff Has Been Avoided - For Now - Part 2

More meat-and-potatoes about the bill that avoided the Fiscal Cliff…

CLASS ACT REPEAL: The American Taxpayer Relief Act of 2012 repeals the CLASS Act, and provides for the establishment of a Commission on Long-Term Care. According to some reports, President Obama agreed to repeal CLASS if Republicans agreed to raise taxes on the wealthy. Most experts believe that CLASS won’t be implemented until a Democratic majority in both houses makes changes in its structure and funding.

COMMISSION ON LONG-TERM CARE: The bill stipulates that the Commission on Long-Term Care will “develop a plan for the establishment, implementation, and financing of a comprehensive, coordinated, and high-quality system that ensures the availability of long-term services and supports.” The President, Senate Majority Leader, Senate Minority Leader, Speaker of the House, and House Minority Leader will each appoint three members, for a total of 15. These members will represent the interests of consumers, seniors, family caregivers, health care workers, private long-term care insurers, state insurance departments, and state Medicaid agencies.

ADDITIONAL ITEMS: The new bill will also include various tax extensions, among them the deduction of state and local general sales taxes, and the credit for energy-efficient appliances. Federal unemployment benefits would be extended for a year. The bill also extends Medicare programs important to seniors, including payment for outpatient therapy services and Advantage plans for people with special needs.

CHALLENGES AHEAD: This bill still doesn’t provide solutions to the sequester or the debt-limit debate. We reached the legal borrowing limit on December 31. The debt issuance suspension will last only through February 28. So Congress doesn’t have much of a honeymoon before the debate starts again. And when it’s finished with the debt-ceiling debate, Congress will have to find an answer for sequestration…and a means of financing government after the Continuing Resolution expires on March 27.

The 113^th Congress will be dealing with issues such as tax reform, non-retirement accounts, exemptions, “loopholes,” and charitable deductions – along with hot-button entitlement programs such as Medicaid and Medicare.

You have to be a lawyer to understand it all. But we can help. Because we’re Elder Law attorneys.

At The Law Offices of Alice Reiter Feld & Associates, we’ve been helping South Florida families figure out the answers for 33 years. And we’ve helped them protect themselves from “complications,” with comprehensive estate planning, wills, trusts, powers of attorney, long-term care planning, asset-protection plans, and assistance with Medicaid and the VA.

We can help you un-complicate things, too. And we’re just a phone call away.

The Fiscal Cliff Has Been Avoided - For Now - Part 1

It’s complicated. But, complicated or not, it’s going to affect everyone – especially Boomers and Seniors.

The American Taxpayer Relief Act of 2012 was actually passed by the Senate in 2013…at 2 a.m. on New Year’s Day. After speculation on New Year’s Day on whether Speaker Boehner would bring the bill to a vote - or if the House would add amendments likely be rejected by the Senate - the House eventually passed the bill at 10:45 p.m. And President Obama signed it the next day.

The bill addresses the Bush-era tax rates, estate and gift tax rates, Medicare reimbursement, and the sequester, among numerous other issues.

TAX RATES: The bill permanently extends current tax rates for individuals earning less than $400,000 and couples earning less than $450,000. Those earning more will see an increase from 35% to 39.6%. Wealthy folks will see an increase from 15% to 20% on capital gains and dividends. Individuals earning above $250,000, and married couples earning more than $300,000, will see a phase-out of the personal exemption.    

ESTATE TAX: The estate tax exemption will remain $5.12 million per person, but will be adjusted for inflation. The top rate will grow from 35% to 40%. Portability’s extended, as well, and the gift tax exemption will remain at $5 million.

PAYROLL TAX: This tax, which funds Social Security, has been at 4.2% since 2011, but will now revert back to the previous of 6.2%.

“DOC FIX”: This provision prevents the scheduled 27% reimbursement cuts to Medicare physicians this year.

OLDER AMERICAN FUNDING: Funding has been increased for the Older Americans Act and similar programs. This year only, Area Agencies on Aging will receive an additional $7.5 million, and Aging and Disability Resource Centers an additional $5 million.

The National Center for Benefits and Outreach Enrollment will receive an additional $5 million, and Medicare State Health Insurance Programs will receive an additional $7.5 million.

As I said…it’s complicated. But we can help.

At the Law offices of Alice Reiter Feld & Associates, we’ve been advising South Florida families on financial issues for 33 years. We’ve helped thousands of them, with proactive measures to see them through any legislative changes. And we help secure their futures, with comprehensive estate planning, wills, trusts, powers of attorney, long-term care planning, asset-protection plans, and assistance with Medicaid and the VA.

We can help protect you and your family. We’re just a phone call away.

How Much is Enough? More Seniors Still Working in South Florida Than Ever Before

“How do I know if I have enough?”

As an Elder Law attorney who’s been practicing for 33 years, I hear this question every day.

Just look around you…in Publix, in Home Depot, in Wal-Mart, in restaurants, in movie theaters, in consulting businesses, in insurance, even in the medical profession. I’m not sure it’s entirely accurate to talk about the “graying” of the workforce anymore; it’s becoming more like the “whiting” of the workforce.

We’re not retiring at 65 with gold watches, like our parents did. Many of us are now working into our seventies, and even into our eighties. And many of us are planning on working until we can’t.

The reasons, of course, are well-known. The recession, the housing crash, “workforce adjustments,” etc., etc. And the fact that, as a result, most of us have lost the financial bedrock on which we were counting.

Combine the economic disruption with the fact that we’re now living longer than ever – and, of course, will require more money to get us through our longer lives – and you’ve got the perfect storm.

According to the U.S. Census Bureau, Broward County women have almost doubled their rate of working past 65. And Palm Beach County women have more than doubled their percentages. About 25% of South Florida men 65 and older are working…or looking for work. In fact, the U.S. Bureau of Labor Statistics says the number of working Americans 65 and older has jumped 69 percent in just a decade.

And “younger” folks - middle-aged or even younger – are now living in fear that Social Security and Medicare won’t be around when they retire.

At The Law Offices of Alice Reiter Feld & Associates, our clients ask us every day: How much is enough? And how will this affect my eligibility for Medicaid and other programs?

We know the answers – because we practice Elder Law. And we help our clients with comprehensive estate planning, wills, trusts, powers of attorney, long-term care planning, asset-protection plans, and assistance with Medicaid and the VA.

We can tell you how much is enough. And we’re just a phone call away. 

How Can I Start a Family Council at my Husband's Nursing Home?

Many nursing homes have them. But some don’t. I tell my clients who have a loved one in a nursing home: If the home doesn’t have one…start it yourself!

If set up and managed properly, family councils can be very beneficial – for the home as well as the families, because administrators can learn a lot. The goal is to discuss issues of importance to the families, while avoiding a blame-first atmosphere.

It’s not a place to hold complaint sessions; that’s a private matter between you and the administration. It’s not a place to degrade the facility or the staff; that’ll only make things worse. It is a place, however, to share ideas and concerns…and, hopefully, solutions. And it can become, if pursued in this spirit, a place where you can bond with the people who care for your loved one.

Your first step should be to speak with the administrator about creating a family council. You probably won’t face much resistance, as these are now fairly common. Ask for her help in setting things up. Find out which rooms might be available, what day and time would be good, who should facilitate the meetings, and how to get the word out about the meetings. Then, at the first meeting, discuss the schedule with the other families.

Some councils have “formal” meetings, with minutes, etc. Don’t get hung up on formal structures; the important thing is to arrive at solutions in an open, participatory manner.

In addition to problem-solving, a key function of a council is to arrange activities involving residents and families, such as picnics on the grounds. These special occasions can help foster a feeling of unity among residents, families, and staff.

If you’ve got a loved one in a nursing home, you’ve got questions. At the Law Offices of Alice Reiter Feld & Associates, we’ve got answers.

We’re Elder Law attorneys. And we’ve been answering South Florida families’ questions for 33 years, and helping them prepare for the future with comprehensive estate planning, wills, trusts, powers of attorney, long-term care planning, asset-protection plans, and assistance with Medicaid and the VA.

We can answer your questions, too. And we’re just a phone call away. 

Beware: Scammers are Targeting Seniors

Small wonder that seniors are the biggest targets of frauds and scams.

They were born and grew up in a different world. Because of that - and because, by nature, seniors tend to be more trusting – every senior today has a red target on his/her back.

South Florida, of course, has the highest proportion of seniors in America. That’s why we lead the nation in identity theft and Medicare theft.

Many South Florida seniors receive e-mails stating they’ve won a prize, often in a contest they haven’t even entered. Others receive notice of free goods or services. To these types of e-mails, the experts all say the same thing. DON’T CLICK ON THE LINK!! If you didn’t enter the contest, you didn’t win anything. And if it sounds too good to be true – it is!

Another frequent tactic is to “notify” seniors that they’re eligible for free Medicare services. The only thing “free” about this is the opportunity for scammers to get their hands on your personal information, so they can bill the government for services they never provided.

Unfortunately, many seniors are embarrassed to report they’ve been the victim of a scam. And they don’t call the toll-free Medicare number, 866-357-6677 to report it.

One of my clients was recently targeted by one of the newly-popular schemes. She received a call from her “grandson,” saying he was stranded in England and needed her to wire money. However, this client had paid attention to what I had told her about scammers. And when she asked for her “grandson’s” last name…he hung up quickly.

At restaurants, pay with cash whenever possible. Giving credit cards to a server is never a good idea. And you should never use a debit card at a restaurant, either, because an unscrupulous employee can end up emptying your bank account.

When a senior is victimized by a scammer, it makes my blood boil. After all, at The Law Offices of Alice Reiter Feld & Associates, we’ve spent the past 33 years helping South Florida seniors keep what they’ve earned…with comprehensive estate planning, wills, trusts, powers of attorney, long-term care planning, asset-protection plans, and assistance with Medicaid and the VA.

We’ve helped thousands of people just like you. And if you’ve got questions about how to protect what you’ve earned…we’re just a phone call away.