Estate Planning & Elder Law Hour - 8.11.18

Saturday, August 11th

I believe that Estate Planning is here to give you control over who is in charge of taking care of you and control over how you take care of your family after you are gone.  Without proper planning you can lose control and your family will not be able to take care of you as easily, or you will not leave your estate for the benefit of your family according to your wishes.

I had an experience in my own family where during a crisis, we lost control over where my grandmother was going to receive care.  This caused my grandparents in their last years to be separated by a long distance after more than 60 years of marriage.  I believe that my grandparents have drawn me into the field of estate planning and elder law to affect the lives of my clients so that they can have a different experience at the end of their lives than my grandparents did.

I place a special emphasis on protecting the assets of aging loved ones and educating families about complicated laws and the best options available to them.  I am passionate about helping others preserve their money, avoid probate, and achieve lifetime estate planning goals. 

I started my post law school career working for a large financial company helping financial planners with advanced estate planning and tax planning. I utilize this financial services experience to bring a different perspective to my estate planning and elder law clients.  My number one priority is to educate and empower clients to make the best decision for them and their family; there is no one way to do things.  I strive to give clients options and let them choose which direction they want to go.  I like to say, “If you don’t ask yourself the right questions, you never get the right answer for you and your family.”

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This is the estate planning an elder lauer with skip Reynolds. We dive into wills trusts powers of attorney and so much more now here's your host skip Reynolds. Welcome everybody to the estate planning an elder law power with me skip Reynolds thanks so much for joining me this Saturday afternoon hopefully all is going well for you in your world really do appreciate you listening. So. In this summer year a lot of us are making resolution ends. You know we wanna get this done or we want new save more money or wanna lose later we wanna eat better are we wanna exercise more. But often times a lot of people have the New Year's resolution to. Work on their state plans get their state plan done revise seriously plan revisit their state plan. Said this out before but AARP says that we revisit and change our state plans completely typically about every nineteen point six years. Now just because it's been less or more than nineteen point six years doesn't mean he shouldn't be revisiting your state plan or revising it. There's a lot of different life events they cannot change your estate plan we'll talk a little bit about that hopefully today. But. If one of your New Year's resolutions is for you to update your estate plan I'll talk about this later but I do have. In this in the month of January here in and you typically two to three every single month. Free public workshops for you to come to. You can come to those workshops and if you come to those workshops in you wanna sit down rendered in busy your plan or get started on a plan. And talking with me I will give you an hour and a half of my time. As well as discount on my services as well for being a loyal radio listener. But again I wanted to reiterate like I tried to every week the goal of this show is to give you good information. So that you make better choices for you and your family vault while you're alive. And after you've passed away city you have the estate planning an elder law experience that you were looking for in the control. In the choices that you're looking for because often times. I'm one of the number one mistakes that people make. All our. We readings on the Internet we talked to our friends we talked to our neighbors we doctor Stanley. Whatever it might be for you and we start accumulating these facts of what we think. Will work for the Steve planning indoor were trying to do it any cheap fashion because. You know yet we know we needed to get something done but we don't see a whole lot of value in it. Maybe don't wanna pay an attorney or maybe can't pay an attorney. To help you do this stuff and and so. We do it on our own. And we go to illegals who we go to Office Depot we go to all these places in we make choices. And we may or may not understand the choices that we've made. And may not understand it's oh we made this choice but that it may not work out in this particular scenario. Then all of a sudden that scenario pops up for us. Death or disability and now we have limited choice is. A we have limited control or not as many choices are is not as much control as we would have wanted otherwise. And all of a sudden now we've got an issue. So that's what the goals this show is. Give you more of those choices give you more of those control features that you want. So that you can have a better experience. Whether it's during your life or after your death. But today wanna kind of start talking about. The dilemma. That many of us are facing nowadays. Eight used to be dead everybody had a pension. So we had a pension from our employer that we work for for thirty years we also had Social Security plus we also had whatever we had saved up. In you put all of those scenes together and typically. We were okay for the most part barring some other kind of fun for seeing. Type of circumstances health or otherwise. But since the mid eighties. More more companies are going away from the traditional pensions. And more to the 401K. Higher raid. Type of retirement planning. Putting more of the onus on us well number one on ensure that many you can attest still were not very good savers were good spenders. We like to go shopping we like to go out ski we like to buy. Better bigger faster car or the better bigger house. Or new furniture periodically or whatever it might be technology. And so we are very good savers well. One of the things that were running into is that what we have saved. May or may not be enough to get this through to the end of our lives and it's actually one of the bigger fears. Out there you know why I joke sometimes but. And they did a you know a lot of people's number one fear is public speaking. It but I think right behind it especially as we get closer to retirement or are in retirement is running out of money during our lifetime. And new word. You know deathly afraid of running out of money because then you know as most of us feel. We will have less choices or less control and I would say that that's probably the truth. So it used to be that. If we had a million dollar saved up will they be you know retirement money whether being non retirement funds bank accounts CDs. Money markets whatever might be that we were going to be okay. Was reading as CNBC. Article talking about million dollar poverty. And this is a really interesting article to me because. On it hits home for me because of my age but also I think it is she hit home for all of you listeners out there is that. A million dollars today is not what a million dollars used to be. On so many people in my office who are seeing down we're going through you know what are their assets it as it pertains to their state planning. Typically I've run into many many clients and actually if you added all up you before you take away any mortgages or other. Car loans or debts or other things that might be going on. There's a lot of us here in the Denver area there are worth a million dollars. Arm now like myself I'm worth a million dollars dead. Because elected turns. But a lot of people are worth a million dollars because of their savings because of their retirement accounts their savings accounts. There CD's the value of their house is in particular if their house has been paid off. If you got up all these scenes in their worth a million dollars and I say guess what you're a millionaire. They go added that doesn't really resonate because they don't feel like millionaires it is because. A million dollars isn't what it was 20304050. Years ago. I'm a million dollars now. Is a fairly normal thing I mean shoot. The houses in this area there are houses that you secured 200000 that are now worth 400000. In just right there that has increased your network just by living in the same house for twenty years. So. So many of us are worth a million dollars but this the problem with the million dollars is. Just because you're worth a million dollars as we have a million dollars in savings even if you had a million dollars in savings. At a conservative 4% as they talk about withdrawal rate that's only 40000 dollars a year. So if you have social security and you're earning you know save the if you're couple in your together making 4000 dollars a month. And then you give 40000 dollars from your your. Your retirement assets. Mean you're really only making aid. If 4048. Year you make in 80000 dollars well does sounds like a pretty reasonable amount. There's a lot of people that are spending every dollar of that 40000 dollars that's coming in from. There. Assets but what happens if your assets or to lose value so. Many of us fear and we go into you kind of shell lost all call and we invest our money in fashion where. You know we're not taking as much risk is maybe we were back when we were working. And so that means your returns will what happens if you're returns go negative or what happens if you have some unexpected medical expenses. Or health care expenses he need to you know you fall and you break your hip or you have some other kind of the issue of stroke or heart attack. And now he needs some higher level services you know Medicare especially once we turn 65. Only pays for certain amount of time. I know that they say they'll pay up to a hundred days but the typical number of days that they actually pay. Is significantly. Less than that. For a bunch of different reasons that I'm not gonna get into right now but we can't rely upon that we've got to have a backup plan. On this article on CNBC was talking about how. You know somebody who's in their mid forties generation asks. A million dollars. Adjusted for inflation will only create 191000 dollars worth of income. Well that's a lot less than what it's producing right now for those of you that might be guardian that baby boom generation. So you know how are we going to deal with this it also had a little map where you can click on and you could define how much. Where Colorado ranked in all of these things and we were I think 32 nationally. And then a million dollars will last approximately. 22 years with annual expenditures. Of 45000. Dollars a year well. That's fairly low expenditure rate on the it's amazing how when I sit down with folks. And and they are getting say 4000 dollars a month from the Social Security. And their kid in some of their retirement money on you know. And it ice I say so what are your fixed expenses and they always you know. Who are fixed expenses are probably two to 3000 dollars a month. And NSA so how much are you guys saving on a month to month basis. And they get this Blake deer in the headlights stare. And NATO. Well you know sometimes we save in sometimes we don't own men. Their experience is like so many other people mining included. Is all this in the money to say it falls through the cracks and you can't figure out where went ear making 68101000. Dollars a month. From in your retirement funds in and social security and whatever else but you're spending every dime of that somewhere. And you're not quite sure where it's going. Know some of us are tracking it more closely than others. But what I what I wanted to talk about as it pertains to this is. You know how do we do with it as it pertains to health care. Because I think that release involves my world and what I see so frequently. You know if if you had a quick changing your health and also now one of the couple needs to go and pass more care whether it's in the home. Out of the home wherever it might be. How how we gonna spend our money on this and how's it going to affect our longer term planning. You know the the most traditional way into what most people think you have to do. Is he had did you spend all of your money and they aegis stirs kind of stuck in this got to spend it all on quandary if you will. The the next the kind of peace and it is well as some of us have thought long term care. The statistics say anywhere between five to 10% of us have bought some form of long term care. But. One of the issues that I keep running into in my practice and I'm sure that some of you out there can attest to this is that. If you but these long term care policies you know years ago back in note late ninety's. Maybe even in the in the mid two thousands. A lot of these companies that we're selling these policies back then. Are no longer selling these policies and there's a number of reasons for it. But one of the big reasons is they didn't expect us to you continue to pay the premiums and then get sick in need to use in their actuaries work. Off on all of their testaments and so one of the things that's been happening is. These insurance companies are going to the insurance board and saying you know we can't sustain. These premiums we're gonna need to raise the premiums because we need to either offset our risk with people paying more for their policies. Or. We'll talk about the dirty side of it is they're hoping that you drop your policy. Because if you drop your policy now they know how to ensure you. Which helps their books and helps their actuarial tables in helps make sure that they're more solvent than they were maybe before you chopped your policy. So I actually had an experience here just in the last couple weeks with some longtime clients where this was there quandary. And they were calling me and wind coming in speak with me talking about there. But their long term care insurance premiums and their premiums were going to be going up approximately 45%. Over the next two years. Which was a significant increase in their premiums something to the effect of almost 200 dollars per month. Bit by the end at 2000 in nineteen. Well that's a quite that's a huge increase especially for somebody he's on a fixed income who's now retired. Now that's taking away from other expenditures it may be needed to have such as paying your mortgage paying your health insurance premiums on. Keeping your house afloat he gas electricity. TV arm bone all of those kinds of things in its taking away from all of those. Things in in making your income not go as far and or it may make you dipping into your savings to pay for these things. And so you know they're big question is what do we do. Do we keep this thing do we not keep this seemed to be paid every additional premiums what do we do. And so we sat down and we talked about that and and a couple things that I wanted to kind of bring up. World view out there it is you need asks more questions before you just make the snap decision of not paying these premiums. One of the things is. You'll find out can you keep your premium at the same liable. Sometimes he's insurance companies will allow you to negotiate that but they will change some of the benefits with in your policy. Well you can go to their minute ascent hate if we wanted to keep our premiums at the current level. What does that do to our Paul C. On typically what I hear from folks when they do this is they're going to extend the period. A time where you're going to be responsible for paying for your care before they'll start to chip then. So a lot of these policies will be a ninety day timeframe where you gotta pay for your care. After ninety days to meet all their climates of the policy boom they search to kick in whatever they're gonna kick in. Well leave me extend that to use six months instead of ninety days. Those kinds of things just to try to offset some of their risk. To get asked these questions. In addition to that. He's got to find out okay will what do we need to show you before you'll start to panic. Because often times. Even if you start new needs and care now you may already start recruiting these ninety days. Or just finding out the devil's in the details because a lot of us think that we got rolling these scenes in one of the fit and the issues that I hear frequently with long term care policies I had somebody just this last year have this happen where they had a long term care policy. But he didn't pay if you were to the nursing home. Or I heard of it another one that it didn't pay if you weren't in the nursing home. So it only paid for in home care or didn't pay for if you were an assisted living or in the nursing home. Or it took so long to prove to them that you met all their requirements that in this 11 scenario that the client died. Before he even paid. When he should've started paying much sooner. Because they didn't know what the requirements work I think when they bots policy to beyond us. So you can ask those questions read through your policies. Find out if the premium stop if you turn this policy on. I'm with that couple that us talking about that was something that we didn't know. It was an obvious in their paperwork so calling the company is saying OK if I get sick or these policies premiums gonna stop if they don't stop. That might be triggered to use either consider looking at the new policy in reviewing whether this policy really is. Good for you or not. But after the break a wanna talk a little bit more about these long term care policies. And where I really see the value of them. In helping to pay for your care and Elena talk about a couple other issues. On that sometimes happen with long term care policies that cause and not to work. Arm and I think he can be something that could be more easily avoided potentially. But I wanna remind everybody if you missed any part of the show today. You can always go to the crews in 1430 web site. You can go to the show pages go to the weekend show pages and then you can find the estate planning an elder law our show right there. Or you can go to my. Website at WWW. Skipped in law dot com. And on there you're going to be able to you. Click on blogs you'll drop down I have the work have via radio shows right there with a little description of what each show this if you wanna listen to even past shows. You're welcome to do so. Also owner remind everyone as we're now and August can you believe were already in August. I've got to workshops here in August August 2 free public workshops you're welcome to come. I've got. One on Tuesday August the fourteenth it's at this south Glenn library so it's in the streets of south income on the backside over vice years. That one is Tuesday the fourteenth from 2 PM to 4 PM. Or you can come on Wednesday August the 29. This one I have from ten to noon in the it is at the lone tree library in lonetree. If you wanna come to one of those you can sign up for a couple different ways. One ways you can call my office and talk with Ron Amadon give you the number here 12. Or you go to my website skipped in law dot com you can click on workshops and you can sign up right there. And CC will confirm that we've received that or you can call and talk to Stacy in my office at 720. 4402774. She'd be happy to get you signed up for you or your friends or your family whoever would like to come. If you come to these workshop or one of these workshops. And you wanna sit down with me and started new plan. Start plan altogether because you don't have one or even have a review of your plan. I will give you an hour half of my time. Brief for coming to the workshop that's a 300 dollar value that's what they charge for those hour and a half meetings. To go through all of this and start looking out what he's your vision for your state plan. So if you wanna come sign up on my website or call my office we'd love to have you come. So when we come back we'll continue the discussion of talking about long term care and how can help save your state. Then we'll go into use in different types of solutions. That might help. You answer some questions and maybe you didn't even know were available to try to hope. Save your money from being all spent on long term care type scenarios. So stick around and when we come back we'll talk about that and a whole lot more. This is the estate planning an elder lauer with skip Reynolds. Are we dive into wills trusts powers of attorney and so much more now here's your host skip Reynolds. Welcome back everybody to DC planning an elder law our thanks so much for joining me this Saturday afternoon and hopefully you're having a great day so far. This is second segment of our show if you missed the first segment. I was talking a little bit about. You know. Long term care premiums and how you our money is not going as far as we hoped it would go on that a million dollars is not. A million dollars or at least not what we used to think of as a million dollars. And it doesn't quite go as far as it should hurt are we thought it should. And now that we are getting towards retirement in retirement. How we paying for all these scenes in not dipping too far into our principal. And then. It's very in house stalking about OK well now we've had some life event occur that is changed are spending and how we're going to need to spend our money. And and how it can really affect things. But if you guys have any questions or if you miss that person and show. You can go to the crews in 1430 website you can click on the show page you'll drop down click on the weekend shows and then go to UC planning an elder a lot hour. Or you go to my website at WWW. Skipped ten law dot com. Click on blog ill drop down click on radio beacon fine though. Don't show right there as well. Arm also talked about during the first segment my upcoming workshops so I do to workshops freed the public every single month. Welcome to come to it a lot of people have the New Year's resolution to get their state plan updated get. Of the new plan if you don't have one or even just review your plan if it's been a little while. On did the workshop is a great review for those of you to have some think as well as a good. First step for those of you that maybe don't have anything because the whole goal of the workshops just like this show. RDD you'd ask yourself the tough questions. So you get to the plan is right for you. Not what's right for me now what I think is right for you. It's what is right for you by you answering the questions because we have solutions to all of your answers. It's how you. Want your experience to be and if you don't ask yourself the right questions he never get to the right answer in my opinion. So those workshops coming up who got one actually coming up just this next week. On Wednesday January the tenth it's at the lonetree library from 10 AM to noon if you wanna sign up. You can go on my website skipped in law dot com. Click on workshops you can sign up right there or you can call my office. At 720440. 2774. You can talk to Stacy and she'll be. 24. At the cobol library again in south metro area it's in the Greenwood Village it's at the corner. Of wholly and orchard. You wanna come to that now 1 is from 1 o'clock until 3 o'clock on Wednesday the 24. You can also go to my website or you call my office and sign up for that as well. So when it got to continue my discussion. Where I left off talking about long term care and how we can they use that to help pay for things in. And how I had some folks come in here recently and they were. Ask you most who we continue to pay our premiums they're gonna raise our premiums it got approved by the insurance board to do so. It's gonna eat up our disposable income. Indoor we're just gonna be spending more then we want to you on these policies and we're kind of upset about it should we keep these are sure we not. Well. We asked a couple of questions this kind of rehash the last couple minutes of the show before the break. The questions that I wanted them to find out were. Can they keep their premiums the same call the company. Sometimes LA to keep the premium the same they're just gonna change some of the terms of the policies such as soon be ninety day waiting period you'll be a 120 day waiting period. Now. You just have to wait OK are we okay to pay for six months of care commerce is ninety days of care and is it worth. The 200 dollars less a month in these this particular couple scenario or not on that that's something you just have to weigh. Also finding out in what are we have to show to the company for them to start to pay. I've heard way too many stories where. Clients will have these policies and then all of a sudden they're not. Getting the policy U turn on because the the policy will only pay if if you're in the nursing home. Or the policy won't pay if you're anywhere but your house. Or you'll. Need just showed this this in this and they're gonna that it really hard because let's be real insurance companies they like to take our money they don't like to pay it out all that much. Who set it they can avoid it they'll try to get out of Pena. By note you know what you have to prove to them find out what happens your premiums if you do turn it on. Some of these policies the premium stop. I've heard of policies of the premiums don't those are definitely the ones you don't want half in why are you paying for something you know let's say it's less of pay a thousand dollars a month. You premiums are 250 a month there or is this golf 400 a month but your continued to hit 400 policy benefit to use really only 600. Well there's no reason to have that type of policy really. Maybe should be looking at getting into a different one it's a little bit better for you. But I want to look at the real costs not talked about this before with him he didn't hear me or maybe only cop part of it. The real cost of not having long term care. Because I think sometimes we get caught up in this well I don't wanna pay for it today because it's gonna cramp whatever I wanted to do use my money for. But we forget about the the financial costs later. The price today vs the the cost later it is often times something that I think people overlook. And we do it in all areas of our life I mean I do it myself. You know we do I wanna buy this now I don't wanna buy this today and ends up costing me more later or whatever it might be. So. Let's just pretending an example. That you have somebody who has. And income as a couple of approximately 4000 dollars a month nice easy round numbers. That could be your Social Security that could be their pensions and can be either required distributions. Doesn't matter but it adds up to 4000 dollars per month. And then their fixed expenses you know there Mitt their mortgages they're heeding their electric their cable there. Cell phones their food is setter let's just say that's 3000 months that means. Technically they have a thousand dollars a month of disposable income being go bowling making go out to the movies in go out to eat. They can go golfing whatever it is that they wanted to go and do. Well now you throw in one of them falling ill. So the cost of care obviously I think most of us realize are not getting cheaper. But I don't think that people realize how fast it can add up even in your own home. So it's typical in home care person. Not a skilled person just somebody coming in and no cooking cleaning being d.s around the house companionship whatever it might be. Not administering medicines. Typically cost anywhere between 25 to thirty dollars per hour. Well let's see that you need them to come in at thirty dollars an hour ten hours a week not a time to time but thirty dollars. Times ten is 300 dollars a week. Times four is 12100 dollars per month that's just for a very minimal amount of time. Well if you want any exponential of that let's say it's twenty hours a week well now it's 2400 dollars a month. Well let's say that. Your long term care cost 4000 dollars a month when it's in the home whether it's at the assisted living. Now ninety talking about nursing home here in the numbers game vastly worse if it's nursing home. Is average cost of nursing home in the metro areas over 8500 per month. So if you have an income of 4000. Fixed expenses for the spouse who's not sick. A 3000 a month and long term care cost of 4000 a month. For the sick spouse. You are already native 1000 dollars. Her excuse me 3000 dollars per month that is 36000. Dollars a year that you are short. And long term care costs at the lower end they typically go on for a longer period of time the stats say that this. It's most of us who needs some form a long term care whether it's just her spouse taking care of us some becoming in the home. Assisted living nursing home whatever might be over the full gamut of need of care. That typically can be up to nine years on average. And it does mean you're in the nursing home for nine years and sets actually safer nursing homes it's more about two point eight years. But that's it end of your care right. The beginning of your care can be that person coming in in helping you bay. Or cooking cleaning for you or giving your spouse it's not sick arrest fit sitting go to the grocery store go play cards either. Or whatever it is that they want to enjoy with their friends and get away from the constant demands of caring for somebody. So if your native 36000. Dollars a year that's a 100000 dollars in three years. Well that's a lot of money. And if you're pulling it from your ire raised there may be some tax involved in that as well. And there might be some offsets for some of it but not all of it. And if you're one of those people those talked about earlier that has a million dollars. But doesn't feel like a millionaire because of the value of their house maybe only have 4500000. Dollars total saved up. And years and I'm gonna tell you in three years you get to spend a 100000 dollars and you're not even had a good high level care. How we gonna offset better what is the numbers not 4000 dollars a month for your care. What if it's that 8000 dollar a month or more nursing home bill because you had a stroke. In the care needs are too much for your loved ones. Now how you gonna do it at 36000 years now 72000. A year. How we do get through this period in what do we save our money for. And everybody has a different philosophy on this. There's some people to have the philosophy hey I see this money on them to spend every last dime of it hopefully on fun things but if not. I saved for a reason and I'm gonna use every dime of it. There's others of us in particularly those of us that are married. We might be saying well. You know if I fall ill I don't want my wife to not have what we did save for our whole lives are not have the lifestyle that I wanted her to live. Just because I got sick. Or we might have the philosophy of hey no I really wanna pass on some of what I accumulated to my children. And if you are not taking active measures and you fall feeling you don't have things like long term cure other kinds of planning. And he'll listen to a show like mine I taught us some solutions that I can offer here in just a minute but. If you don't take a look at what are the different solutions and you just think you have to spend all of your money. You may end up in a tricky spot. Because now everything that you didn't save for your whole life. You know most of us who work from our early twenties. Some of this even before then. Could all blow up just because you had a right hand turn your health. And so you know what is so long term care gonna do what's gonna offset some of that cost. If you got 4000 dollars a month shore or 3000 dollars a month short and you have a long term care policy that case 3000 dollars a month. Well guess what. You know dipping in any of your principal to pay for so long term care all by the way you can choose where you have it is it in your homers in the assisted living. You have more choices of where you receive that care. And it slows the drain on your resource is so even if you went into the nursing home and 8000 a month. And instead of being 3000 short your 6000 short. Okay well. If you're 6000 short he's got a long term care policy that pace story a bit says Finney 72000 a year is spent in 36. He see how your money lasts longer. That's where long term care I think has its real benefit. Is that it slows the drag on all of your resource is so that you don't run out of money as fast so you have more choices of where you receive your care. And so that you don't leave your spouse if you that's important to you or your other loved ones. Not having what you had wanted to leave them or not having a life that you won and then no live. Regardless of whether you fell ill or not. That's where a long term care has its real real big benefit to you. But so many of us of not long term care firm and a million myriad of reasons right it costs too much. Com. You know I'm not gonna get sick just. Here this one all the time in my out this. You know I will not going to any nursing home I'm going to stay home no matter what. And you know I I don't disagree with that sentiment I think most of us can can relate to that. And fortunately if you were to go and ask all the people in the nursing homes prior to their situation. If they were really want to be in the nursing home. I can almost guarantee that a 100% of them would say no I do not wanna be in the nursing home and prefer not to be in the nursing home. But unfortunately we don't always make those choices. You know nobody ever wakes up and says well today's my data have a massive stroke. So I can never use a whole right side of my body again for the remainder of my life where I need now somebody to come in give me a long term care for the rest. Eyes at a high high price. Nobody ever does that. But a lot of people tell me in my office taking you know taking up in the woods and gimme my. My shotgun and I'll take care of it or just push me off that hill or whatever it. You know funny thing you can come up with as a way of trying to avoid some of these scenarios. And fortunately though. Sold me a list. That are. Have had loved ones that have gone into some form of care that has not been inactive choices there's. And some of those solutions that we say. I think. Are unrealistic. And just not gonna come to fruition and Andy some of them truthfully are illegal so. It's one of those kind of catch when he tees we don't want this but we may or may not happen. The truth choice so it it's kind of up and in arresting situation all the way around. But I want to. No talk about after the break what are some solutions. Are what are some things maybe you didn't even know is I think most people think. The you have to spend all the way down but I think the other thing too is that people wait too long to start giving advice. And depending on things that have gone on. We may or may not have some major issues. That we may not be able to solve very easily. And I'll tell you right now asking for forgiveness from. The state is usually not an easy endeavor. So when I come back a wanna talk a little bit more about. What are some solutions on the in that crisis type of scenario because so many of us don't have long term care how we can deal with this if the health event occurs that we hope doesn't occur. Planning for that worst case scenario because unfortunately that's part of what I do. So we'll talk about that when we come back but just another quick reminder if you have questions. You can go to info you're you can email me those questions at info. At skipped into law dot com I think it's something that would be topical for everybody to hear I'll try to pre. Into the show if not I'll give back chief is something real personal. Also remind everybody. I do public workshops to teach the state planning city you can start asking yourself the really hard questions that you've gotta ask yourself. So you have the right plan. If you would like to come to one of those. Learn more about the steep planning. Compare what you have in your plan to things that I talked about to see if you have that are you donor if you want to know or don't want it. I had two workshops in August won his cheesy the fourteenth from 2 PM to 4 PM. This one is that the south land library sits at the streets of south and it's kind of near a rap oh in university. Then I also have one Wednesday August the 29 this one is from 10 AM until noon. It is at the lone tree library. So to workshops if you come to those workshops in August and you wanna sit down with me start a plan review your plan. Mend your plan. You'll get an hour and a half my time which is a 300 dollar value to go through and start planning what is your vision for your estate plan. So if you wanna sign up we go to the web sites skipped in law dot com click on workshops. You can sign up right there. Or you can call my office and speak with Stacy and she'll be signed up at 720. 4402774. So stick around we'll talk about some legal solutions to your issues if you need long term care in the future. This is the estate planning an elder lauer with skip Reynolds. We dive into wills trusts powers of attorney and so much more now here's your host skip Reynolds. Welcome back everybody to be safe planning an elder law power which he skipped Reynolds and hopefully having a great Saturday so far. It is the third and final segment of my shows if you miss any the first two segments. You can find those podcasts on net decrease of 1430 website by clicking on the show page. It'll drop down click on the weekend shows and then go to DC planning an elder law hour. We go do my web site at WWW. Skipped in law dot com. Click on blogs he'll drop down click on radio and you can find the podcast there as well. So thanks so much for listening this Saturday we've been talking about. You know how. Our money is it going as far as he used to go in particular loss announced talk Mel long term care costs. And long term care policies and how can offset some of those things. But I wanted to kind of switch gears and wanted to talk a little bit about here in our last bit of time this Saturday together about. Some common misconceptions about how can we. Help plan for you to go. On a programming if you're not a veteran like Medicaid or if you are better in something like he did in attendance because. So many of us do you have a goal that maybe we don't wanna be completely broke. Or even if our plan is to be completely broke. If we were to get sick that we've got to do with the right way. So wanna start first with those of you who are kind of of the mindset of you know. I made this money if I have to spend it on me whether it's in home care whether it's assisted living whether it's personal whatever it is. And that's your philosophy that is fine. But we need to be doing some forward thinking because sometimes. What I've seen happen in my office is that that is the plan that we're taking. And then we get near the end of the planning time frame because we've now spent down most of the resource is. Although we didn't realize we shouldn't have done this or because we did this now we've got a problem. Sony give you a couple of real life once that happened I had 11 scenario where. This person was now into the nursing home and we were looking at trying to apply for Medicaid. Ed which was fine we've spent all the money. All the way down but as we got into the application process one of the questions that is asked. Of all applicants for Medicaid is have you given any money away. And this particular. Person has the answer was no. It hadn't given any money away. The problem was is that when we looked at the bank statements. Because of the way money was moving around. It actually would have lookalike to Medicaid office that they were making gifts. And there was no proof to show that they hadn't. Because he was coming out in the form of cash. So what it was his mom won it some cash so she could get her nails done if she could do some things that she could buy some. You know little gifts for the grandkids you and in great game Kate grandkids. Very reasonable. The problem was is that the the daughter was taking the money now every single month that a hundred dollars not a lot. We have been doing this for years and years in giving it to her mom this cash. There is no there was no paper trail it just look like a cash withdrawal and and sometimes it even came from the wrong account. And all of these things and we were gonna get down to the application we're gonna cause. What they call a penalty. Because that Medicaid office was gonna consider all these scenes together as gifts. Or there are gonna start asking questions that we didn't have a good answer for all it was was take our word for it in Medicaid they don't want to take our word for a decision that way. So. We had an issue but we were almost out of money. Fortunately they came to me at a time where we can still fix this problem. Of the perceived gifts before we had to really. Running into an issue where were essentially out of money. And we're asking for forgiveness for Medicaid and they're saying yeah we are gonna give you forgiveness. Because what Medicaid does is they say if you gave some money away we can't judge why you gave it away we just see that you didn't give it away and you must tell them. If you do not tell them that you've given me any kind of money away in the last five years and they find it you've now committed fraud. And I don't know about you I don't wanna help anybody commit fraud. I personally don't wanna commit fraud and potentially have legal ramifications for not telling them about the gift. And what you think might have been just a normal transaction might look like you gift to them. So my advice especially if you gut. Couple or a single person. If you're getting down to you as a couple of fear getting down to that a 150000. Dollars left mark. That is a good good time to be sitting down with someone such as myself and elder law attorney. Not Danny old estate planning attorney you want somebody who also specializes in elder law. And talking about OK. What are our options if any. And actually 150000. Might be too low. He might wanna look at it at 200000 dollars left of liquid assets so you have more choices in more options. If you're single person I would say if you're below a 100000 dollars she probably wanna start looking at this. Because. We may transactions that may be perceived as gifts. And if we wait to you get down especially for these single folks out there. If you get down to 2000 dollars which is eligibility allowance for your resources. To be on Medicaid if you're down to that 5101000 dollar mark. And you've got these hundred dollar gifts every single month for five years. We don't know when you fix your problem. And so now. Our choices are much more limited Medicaid may deny your application. In if they deny your application or if they see the you've got to pay a penalty. Because what they say is if you give money away. We're just not gonna pay for you for a period of time equivalent to the amount of that gift and they've got a whole math equation that they do. To figure out what that penalty period may be doesn't mean that you can't qualify within five years of that gift it just means that you're gonna have to pay your patents. If you don't have enough money to pay your patents. They may not approve view or who's gonna pay for you your kids who may be your kids don't have the wherewithal to pay for you. That's why I say look ahead. Plan ahead it's like anything else I mean bad analogy would be in going harking back to the days before we all had cell phones in garments and everything. Is if you're gonna take a road trip. Typically one would plan that out you say okay we'll organ and need to go on I 25 up to highway 7UP this to this this this. Right we're gonna plan are trip out. And say okay today we try to get to this city in the next time the next day to this city if you were out on a road trip. The same kind of conditions here plan ahead if you week until the last second in May be too late he missed the turn. And if you missed the turn when it comes to do elder law. It may be very difficult. Thing to try to fix so I encourage you look forward in looking at. Trying to plan for these scenes if you're of the opinion of you know I wanna spend all of my assets that was why you need them. So I'm going to use their mom not saving them for anyone else. But you need to be looking forward. And if you're a married couple I think you need to start looking forward at a higher level assets left. If you are starting to fall ill com. So that we can have more planning options for that surviving spouse there that spouse who may be isn't sick. Now the next piece is okay well what if we don't like that dilemma of spinning over rhesus we didn't make it so that my wife would be broke. We didn't make it's of the night keys when receive something because that's an important thing in our family is too. Enos he passed down some level of wealth. Well if that's your scenario. So many have this feeling around Medicaid in particular that. You know I just cannot qualify for and I've got way too much in resources. And there's even attorneys out there that will tell you got an and I told people that as well among. See that I haven't told people that but. There are solutions. Depending on the scenario for the family that mail allow lest you have some more choices. And may allow. You to preserve more resource is the new over thought possible. On the had the occurrence one time where us talking about these things in one of my workshops. And I had a woman sitting in the back in house talking about how I had helped a couple that had approximately. I'll I'll just say they had total assets of approximately 600000. Dollars. But the wife who needs to go into care and in fact she was in the nursing home already and he was working just to pay for her care. Any wasn't sure how much longer he can continue working. As well as coming home and caring for her at night etc. etc. And site I talked about this solution and how we had no. Got her the care through Medicaid that she needed help him preserve his nest they could use only 71 years old at the time. So that he could continue to legalize sell that they had saved four because we have no idea how much longer he's going to list. And this woman in the back said Euro liar. She called me a liar because she had gone has spoken to somebody else. We told her that she was going to have to spend all of her money down because she had too much in resources. That this person that that she had gone and spoken to. In my opinion frankly didn't know all the different ins and outs of Medicaid. Medicaid is kind of like our tax code very complex all kinds of exceptions and rules and loopholes. Etc. And whomever she had spoken to you. Or whether I can't recall there was an attorney or whether it was just you know hearsay from friends in the neighbors etc. But she had spent this woman had spent. Almost 800000. Dollars. Prior to coming to my workshop. Which is why she's a little skeptical about what I was saying. Well after this she came in in and we helped her out we helped her call fire husband for Medicaid. And we stopped that train. That was had already drained a 100000 dollars out of their resource is now they obviously had done a great job of saving and having 800000. Is still having money left. But many of us maybe don't have that level. Of wealth. And we want to make sure that our spouse in particular for Mary does have something to live on in that their lifestyle isn't completely gone. Just because we felt ill. And we have solutions that can help you do this. I've help families with 600000. Dollars. I had families that had 4500000. Dollars over the allowable limits we help these families if that's what you're looking for. And this all it's all using these exceptions to the rules of Medicaid to our benefit. Now that's for those people that he mindset of I wanna save my assets I don't want them to all be gone I worked too hard for these. If you're on that boat. We can sit down we can have a conversation if you have a loved one who is in care or may need care sometime soon. He's better to be proactive in looking at these things in this crisis type of the scenario then like I said earlier here just a few minutes go where we wait until. He got. Hardly any money left in our choices are less in if you need mistakes we need not be able to solve these mistakes. Obama met with somebody else here recently that they had been making some gifts. Do their family. In trying to help them you know by car down payment on the house kind of thing. And beating really even think twice about it. And now there health situation is changed and it's going to potentially greatly affect her ability you qualify. For a program such as Medicaid. 1 last reminder I do to public workshops every single month by two coming up in the month of August. Are on Tuesday August the fourteenth. From two to 4 PM. At the south Oakland library this is in the streets of south Glenn near the intersection of arapahoe road and university. Or Wednesday August the 29 from 10 AM to noon this is that the lone tree library. If he'd like to sign up for either you can sign up on my web sites skipped in law dot com. Click on workshops and you can sign up for those or even if those don't work for you we've got an Al into September as well the you can sign up for. Or you call my office at 7204402774. To sign up. If you come and you want to sit down and review your plans starting new plan or start a plan altogether. You'll get an hour and a half of my time free. For having come to the workshop and started the process of asking yourself the hard questions that's a 300 dollar value. We'd love to see you come to win these workshops in August. But before I sign off of one of. Think all of you for listening this Saturday I do appreciate you listen to the show especially moved those of you to listen regularly thinking so much I can't. Say how much I appreciated. I hope you have a great rest of your Saturday a great rest of your weekend and I can't need to talk to you and next I would greatly folks ticket. Thanks for listening into the estate planning an elder lauer would skip Reynolds. Tune in next week where we talk about some great new topics this is the estate planning an elder lauer with skip Reynolds that's every Saturday from two to three on cruise in 1430. You can Reynolds is a licensed attorney in Colorado all of the stories and content of this state planning an older life hour are not intended to be direct legal advice they are for illustrative purposes only additionally no attorney client privilege has been performed with the law offices have been Reynolds LLC we're still in Reynolds Esquire 26 legal counsel before making any estate planning or elder Watson did all of the views of the guests of the show are their own and are not views of the law officers have been Reynolds LLC or skipping right over Esquire. Nor is there appearance and endorsement of goods or services for the law offices of have been Reynolds LLC were skipping Reynolds Esquire.