The month of February and Valentines Day brings a celebration of love and stirs couples to rekindle feelings of romance and devotion. Not so different from young couples are aging seniors, celebrating memories of sweethearts and romance in days gone by. Sit a while with a senior couple and they will soon be telling you their romance story or listen to a widow or widower as they sing their favorite love song from their youth.
Dementia and Alzheimer’s can rob senior minds of many of these treasured memories, changing their personality and life style. Because of these and other illnesses, many seniors end up in nursing homes or care facilities where only their basic physical needs are cared for by the facility staff. To these seniors, Valentines Day becomes no different from every other day. They often find it difficult to relive memories of the past. In one care facility a sign placed lovingly over a patient’s bed reads, “I Am Somebody’s Sweetheart,” as if to say I once dreamed, lived and loved, please treat me kindly.
When asked how she relates to those she cares for, nurse assistant Karen W. replies that most of the time it's those patients who are causing a disturbance or may be in danger of harming themselves who are the ones that get her attention. Even then she can only take care of the immediate problem. Very seldom has she time to personally get to know well all the elderly people she cares for.
Although this is true with many facilities, the need for more personalized care is, in some cases, being recognized. Assisted living facilities with specialized memory care programs -- some using art, music and dance or physical activities -- are finding great success with increasing the quality of life for those suffering from dementia and Alzheimer’s. Many care facilities across the nation are adding these programs to better serve their residents.
If you cannot find a facility in your area that provides this special attention, home care may be a better option.
Consider this real experience. When Nora would visit her father in the nursing home she would find him sitting, slumped over and disinterested in his surroundings. By the time she and her young children finished their visit, he was alert and talking to them. Feeling he would do better in her home environment, Nora enlisted the services of a Geriatric Care Manager to evaluate her father and determine what would be needed for his care at home so that he could get the social stimulation that he needed.
A Geriatric Care Manager can be a valuable asset to family members when it becomes necessary to look at alternatives for their loved one's long term care. They work with all members of the family in educating about resources and making decisions. Some services provided are.
•Make an assessment about the type of care need
•Develop a care plan for care both current and future care
•Work with physicians in getting medical support
•Find home care services that work with the families needs
•Provide assistance with legal and financial issues
Appropriate home care services are also often necessary when a change in environment is called for. Home care services vary, depending on what is needed, and may change as caregiving requirements change in regards to the physical or mental health of the elderly person.
Types of Home Care are:
•Home health care companies: provide nurses, physical therapists, social workers and aides that assist with basic health care such as changing bandages, taking vital signs and helping with medication as well as a host of other skilled needs.
•Non-medical home providers: help with bathing, dressing, meals, ambulating, chores, errands, housekeeping and much, much more.
Home care personnel are skilled in working with the spouse and extended family members of their ailing loved one to provide needed services and support in the home. They add consistency in the care and are available in time of crisis or need to add additional services.
With help from her Geriatric Care Manager, Nora brought her father to her home for his care. The care manager worked with her father’s doctor, prescribing a physical therapist and nurse's aid to come to the home. A non-medical home care company was employed to help with daily bathing and dressing.
Another resource available to families, which is not used as often as it should be, is hospice. Hospice care is provided in the home or in a hospice facility, hospital or nursing home. When illness is terminal, hospice service is provided by a team which includes doctors, nurses, grief counselors, aides and social workers as needed. These services can be provided at no out-of-pocket cost by Medicare.
In her internet article Naomi Naierman, President and CEO of the American Hospice Foundation states:
“As a Medicare beneficiary, you are entitled to the Medicare Hospice Benefit without additional premiums. If you are enrolled in a managed care organization (MCO) you have access to this benefit, even if the MCO does not cover hospice services.
The Medicare Hospice Benefit covers the following hospice services in full:
•Skilled nursing services
•Volunteer Services
•Physician visits
•Skilled therapy
•Home health aide visits
•Medical social services
•Spiritual counseling
•Nutrition counseling
•Bereavement support for the family”
There is a growing market for care providers throughout the nation to fill the need of senior care services. Assisted living, home care and hospice care, geriatric care managers and geriatric clinics are all just part of these services. The National Care Planning Council supports family caregivers with information and resources of all types of long term care services on its website: www.longtermcarelink.net.
"Somebody’s Sweetheart" may be in need of your loving care someday and help is available to reduce your burden and ease the journey.
www.mireverse.com
Friday, February 11, 2011
Wednesday, February 2, 2011
Senior Citizen Safety and Independence
I care about seniors. I always have because I realize the knowledge they can share with me life experiences they had that I may never encounter. Some I knew and know don’t have an impressive education background, but their life experiences are nothing you could learn in a classroom.
When talking to my elders I realize that the one thing they want to maintain more than anything is their independence. They don’t want to go to a care center. So my mission is simple – help seniors maintain their independence and stay at home. That is why I recommend using simple technology to allow them to remain at home and allow the primary caregiver or child to rest easy knowing their loved ones are safe.
My grandmother was able to live in her own home until she was in her 90’s and what allowed us peace of mind was a little pendant she wore around her neck. Every morning when she would get up she would put the pendant around her neck and if she were to fall or need help she could push the button and her doctor and family would be notified that she needed help.
This simple technology can be a life saver because most long-term injuries from a fall are due to not getting immediate care. It is also waterproof so it can be worn in the shower where there is always more of a chance of falling.
I know that I love my older family members and friends and for less than a dollar a day, allowing them to remain independent and giving me the peace of mind is priceless.
There are a number of services out there to try, but they are not all the same.
When talking to my elders I realize that the one thing they want to maintain more than anything is their independence. They don’t want to go to a care center. So my mission is simple – help seniors maintain their independence and stay at home. That is why I recommend using simple technology to allow them to remain at home and allow the primary caregiver or child to rest easy knowing their loved ones are safe.
My grandmother was able to live in her own home until she was in her 90’s and what allowed us peace of mind was a little pendant she wore around her neck. Every morning when she would get up she would put the pendant around her neck and if she were to fall or need help she could push the button and her doctor and family would be notified that she needed help.
This simple technology can be a life saver because most long-term injuries from a fall are due to not getting immediate care. It is also waterproof so it can be worn in the shower where there is always more of a chance of falling.
I know that I love my older family members and friends and for less than a dollar a day, allowing them to remain independent and giving me the peace of mind is priceless.
There are a number of services out there to try, but they are not all the same.
Tuesday, February 1, 2011
Protect your parents when they are alone
Your parents want their freedom and you need the peace of mind knowing they are safe. How can you get both? My grandma lived well into her 90s by herself. We could rest easy knowing that with the push of a button that was on a string around her neck she could always call for help.
www.mireverse.com
www.mireverse.com
Monday, January 31, 2011
Helping Your Older Parents Stay Happy and Healthy
by Robert Stall MD, Geriatrician
If you're fortunate enough to have one or both parents still living, you may have noticed a role reversal taking place in your relationship. Remember the days when Mom shuttled you to the doctor whenever you were sick? Now, it may be you who's driving her to her medical appointments. Perhaps you've become even more involved in managing her healthcare needs – serving as her healthcare proxy, moving her into your home to care for her, or even having to select a nursing home for her to live in.
Whatever the case, it's natural to feel challenged – and, yes, intimidated – in the role you've undertaken. But if you stay positive and proactive, you'll be in a great position to advocate for your parents' optimal care. And, really, what better way is there to say "Thank You" for all they've done for you over the years?
The following six recommendations will help you understand what may be happening to your parents as they age – and what you can do to help.
1. Stay vigilant to sudden changes.
Typically, sudden changes arise from sudden problems. Your elderly father who becomes confused one week but was alert and oriented the week before, or becomes unsteady walking and starts falling, is likely experiencing an acute problem – an infection, medication side effect, or perhaps, a heart attack or stroke.
If you pay attention to your parent's baseline health and behavior, you'll be alert to sudden, and subtle, fluctuations. Being attuned to what's “normal” for your parent is critical in advocating for his care. By informing his physician of these changes, you help ensure that he receives a proper diagnosis and timely treatment – especially important in acute conditions.
2. Investigate the source of gradual decline.
Several years ago, I met an elderly woman living in a nursing home. Her family, assuming she had dementia, had moved her there after she had gradually stopped speaking.
After performing a brief procedure on her, I asked how she was doing. “I'm OK,” she replied.
A miracle? Not exactly. I'd removed bullet-sized pieces of wax from her ears. She'd stopped speaking because her ears were too plugged to hear.
A host of conditions can cause gradual decline. Before jumping to the conclusion – as many people do – that Alzheimer's disease is the culprit, recognize that your parent may be experiencing an altogether different problem: a vitamin B12 deficiency, an underactive thyroid, Parkinson's disease or depression, to name a few.
When discussing your parent's decline with her physician, make sure the two of you consider all the possibilities. To prepare for the appointment, make notes detailing how her decline has manifested itself – loss of appetite, a failing short-term memory and so forth – and how long you've noticed these changes. That way, you won't leave anything out. To help you, I've created a free checklist that either you or your parent can complete at seniorselfassessment.com – make sure you print or email the “Test Result Details” at the bottom of the page to analyze your responses and give you advice based on your answers.
3. Know thy parent's medicine cabinet.
Familiarize yourself with the medications your parent takes: what each one is for and how often he takes them. Make sure you notify each doctor your parent visits of all the medicine he takes, including over-the-counter products. Ask what side effects you might observe from each medication and whether it's potentially dangerous if your parent takes them together. You also want to tell the doctor whether your parent drinks alcohol or caffeinated drinks and whether he smokes, as these substances can affect some medications' efficacy and safety. To recognize which medications might cause the symptoms your parent experiences, check out drugscanmakeyousick.com .
4. Discourage ageist attitudes.
Simply put, ageism is prejudice against the elderly. It exists in many forms but can be particularly damaging to an older person's self-esteem when it assumes that all of her woes are age-related. Here are a couple of ways of expressing ageism to an elderly parent:
“What do you expect at your age?”
“You're not getting any younger.”
If you're ever tempted to utter something similar, remind yourself that by chalking up everything that ails her to her age, you sell your parent short. If she's depressed, it may have nothing to do with the fact that she's 80 and everything to do with a biological predisposition to depression. And remember that right-knee pain in a 90 year-old can't be just from age if there's no problem with her left knee. (More about Dr. Stall and a more in-depth article on the attitude of society towards medical care for the elderly can be found at http://www.longtermcarelink.net/eldercare/medical_care_issues.htm )
5. Address not just symptoms—but emotions, too.
There is disease and then there is “dis-ease” – that is, a lack of ease, security or well-being. “Dis-ease” can manifest itself as myriad emotions in an elderly person: fear, grief, boredom, embarrassment and sadness among them. The fact is, these emotions can be every bit as debilitating as disease.
Take the case of a parent who's incontinent. Too embarrassed to socialize, she cuts herself off from friends. Without companionship, she becomes lonely. Instead of allowing her to become a hermit, discuss with her doctor how to address the incontinence. Together, you can consider different solutions that will ease her embarrassment and reinvigorate her social life.
6. Strive to maximize your parent's quality of life.
No matter our age, we all want to enjoy life to the fullest and have the capability to do the things we want to. Improving the enjoyment of life and a patient's functional ability are the cardinal goals of geriatric care. But you don't need a medical diploma on your wall to help your parent achieve either of those goals.
Being there to solve a problem or provide company are tremendously worthwhile services you can provide – no expertise required. Remember, as your parent gets older, his quality of life becomes more important to him than how much longer he lives. And he doesn't necessarily need medications or surgery to ensure that he's living the latter part of his life to the fullest.
If he enjoys books but has difficulty reading regular-sized type, check out sight-saving titles at the library. If he's grieving the loss of his best buddy, introduce him to new acquaintances at the senior center. If he's living in a nursing home, bring your kids there to share a meal with him.
Sometimes, it's the small gestures that have the most profound impact. As the child of an elderly parent, you are uniquely positioned to deliver these life-changing gifts.
Dr. Robert Stall is a geriatrician practicing in Tonawanda, New York and a clinical associate professor at the University of Buffalo's School of Medicine and Biomedical Sciences. He serves as medical director and attending physician at Beechwood Homes in Getzville and Blocher Homes in Williamsville. To learn more about senior care issues, visit his website at stallgeriatrics.com or call 716-213-4345. For information on a new program offering balance assessment and fall prevention tips, call 716-213-0772.
www.mireverse.com
www.rmeducator.com
If you're fortunate enough to have one or both parents still living, you may have noticed a role reversal taking place in your relationship. Remember the days when Mom shuttled you to the doctor whenever you were sick? Now, it may be you who's driving her to her medical appointments. Perhaps you've become even more involved in managing her healthcare needs – serving as her healthcare proxy, moving her into your home to care for her, or even having to select a nursing home for her to live in.
Whatever the case, it's natural to feel challenged – and, yes, intimidated – in the role you've undertaken. But if you stay positive and proactive, you'll be in a great position to advocate for your parents' optimal care. And, really, what better way is there to say "Thank You" for all they've done for you over the years?
The following six recommendations will help you understand what may be happening to your parents as they age – and what you can do to help.
1. Stay vigilant to sudden changes.
Typically, sudden changes arise from sudden problems. Your elderly father who becomes confused one week but was alert and oriented the week before, or becomes unsteady walking and starts falling, is likely experiencing an acute problem – an infection, medication side effect, or perhaps, a heart attack or stroke.
If you pay attention to your parent's baseline health and behavior, you'll be alert to sudden, and subtle, fluctuations. Being attuned to what's “normal” for your parent is critical in advocating for his care. By informing his physician of these changes, you help ensure that he receives a proper diagnosis and timely treatment – especially important in acute conditions.
2. Investigate the source of gradual decline.
Several years ago, I met an elderly woman living in a nursing home. Her family, assuming she had dementia, had moved her there after she had gradually stopped speaking.
After performing a brief procedure on her, I asked how she was doing. “I'm OK,” she replied.
A miracle? Not exactly. I'd removed bullet-sized pieces of wax from her ears. She'd stopped speaking because her ears were too plugged to hear.
A host of conditions can cause gradual decline. Before jumping to the conclusion – as many people do – that Alzheimer's disease is the culprit, recognize that your parent may be experiencing an altogether different problem: a vitamin B12 deficiency, an underactive thyroid, Parkinson's disease or depression, to name a few.
When discussing your parent's decline with her physician, make sure the two of you consider all the possibilities. To prepare for the appointment, make notes detailing how her decline has manifested itself – loss of appetite, a failing short-term memory and so forth – and how long you've noticed these changes. That way, you won't leave anything out. To help you, I've created a free checklist that either you or your parent can complete at seniorselfassessment.com – make sure you print or email the “Test Result Details” at the bottom of the page to analyze your responses and give you advice based on your answers.
3. Know thy parent's medicine cabinet.
Familiarize yourself with the medications your parent takes: what each one is for and how often he takes them. Make sure you notify each doctor your parent visits of all the medicine he takes, including over-the-counter products. Ask what side effects you might observe from each medication and whether it's potentially dangerous if your parent takes them together. You also want to tell the doctor whether your parent drinks alcohol or caffeinated drinks and whether he smokes, as these substances can affect some medications' efficacy and safety. To recognize which medications might cause the symptoms your parent experiences, check out drugscanmakeyousick.com .
4. Discourage ageist attitudes.
Simply put, ageism is prejudice against the elderly. It exists in many forms but can be particularly damaging to an older person's self-esteem when it assumes that all of her woes are age-related. Here are a couple of ways of expressing ageism to an elderly parent:
“What do you expect at your age?”
“You're not getting any younger.”
If you're ever tempted to utter something similar, remind yourself that by chalking up everything that ails her to her age, you sell your parent short. If she's depressed, it may have nothing to do with the fact that she's 80 and everything to do with a biological predisposition to depression. And remember that right-knee pain in a 90 year-old can't be just from age if there's no problem with her left knee. (More about Dr. Stall and a more in-depth article on the attitude of society towards medical care for the elderly can be found at http://www.longtermcarelink.net/eldercare/medical_care_issues.htm )
5. Address not just symptoms—but emotions, too.
There is disease and then there is “dis-ease” – that is, a lack of ease, security or well-being. “Dis-ease” can manifest itself as myriad emotions in an elderly person: fear, grief, boredom, embarrassment and sadness among them. The fact is, these emotions can be every bit as debilitating as disease.
Take the case of a parent who's incontinent. Too embarrassed to socialize, she cuts herself off from friends. Without companionship, she becomes lonely. Instead of allowing her to become a hermit, discuss with her doctor how to address the incontinence. Together, you can consider different solutions that will ease her embarrassment and reinvigorate her social life.
6. Strive to maximize your parent's quality of life.
No matter our age, we all want to enjoy life to the fullest and have the capability to do the things we want to. Improving the enjoyment of life and a patient's functional ability are the cardinal goals of geriatric care. But you don't need a medical diploma on your wall to help your parent achieve either of those goals.
Being there to solve a problem or provide company are tremendously worthwhile services you can provide – no expertise required. Remember, as your parent gets older, his quality of life becomes more important to him than how much longer he lives. And he doesn't necessarily need medications or surgery to ensure that he's living the latter part of his life to the fullest.
If he enjoys books but has difficulty reading regular-sized type, check out sight-saving titles at the library. If he's grieving the loss of his best buddy, introduce him to new acquaintances at the senior center. If he's living in a nursing home, bring your kids there to share a meal with him.
Sometimes, it's the small gestures that have the most profound impact. As the child of an elderly parent, you are uniquely positioned to deliver these life-changing gifts.
Dr. Robert Stall is a geriatrician practicing in Tonawanda, New York and a clinical associate professor at the University of Buffalo's School of Medicine and Biomedical Sciences. He serves as medical director and attending physician at Beechwood Homes in Getzville and Blocher Homes in Williamsville. To learn more about senior care issues, visit his website at stallgeriatrics.com or call 716-213-4345. For information on a new program offering balance assessment and fall prevention tips, call 716-213-0772.
www.mireverse.com
www.rmeducator.com
Monday, January 24, 2011
The Financial Health of Aging Seniors
With our current economic challenges, those of us looking forward to retirement need to be well-informed about our financial needs in coming years. And not only pre-retirees, but individuals already in retirement need to be wise to the changing economic environment. The good news is there are trained professionals who keep abreast of changes in the current economy, changes in laws and changes in government programs for the elderly. Professionals in this field are equipped to handle everything from help with retirement savings accounts, investment advice, guidance on government programs, estate planning or even new funding options such as reverse mortgages. A little planning prior to retirement will allow you to maintain your current lifestyle; whereas, a lack of planning may require you to live on an extremely tight budget. For those already retired, taking time right now to deal with financial problems instead of waiting for a crisis to happen is well advised.
A large number of retired individuals feel that they have planned well for the future only to find that rising medical costs, damage done to investment portfolios (by the current economy) and many other factors have caused them to go into debt. According to an article in "USA Today" seniors are racking up debt like never before. Elderly individuals who are in debt live with a constant burden over their heads. Most of these people are on fixed incomes and have no way of paying off credit cards and home equity loans that continue to mount to cover household budget deficits. In order to meet ongoing payments, seniors often forego purchasing medications and skimp on food budgets. They live like hermits -- never going out and pinching every penny -- in order to pay their obligations.
Most of these people worked hard their entire lives and managed their debt. They never anticipated the rising costs of prescriptions, expensive medical care or depletion of savings by living too long. The good news is there is help for these individuals. Here are just a few examples of some relief options that could be available. There are many more besides these.
Reverse mortgages - A Home Equity Conversion Mortgages (HECMs), also known as a reverse mortgage, is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage". For those seniors who are less fortunate financially but own a home, a reverse mortgage can allow them to remain in the home by creating extra income.
Life settlements -- A life settlement enables older individuals, businesses and other organizations to sell life insurance policies they currently own – but no longer want or need – for an amount greater than the cash surrender value. In some cases the value can be 2-3 times the cash surrender value. Even some term life insurance policies with a conversion option to permanent coverage can qualify for a life settlement.
Government Programs -- Some government programs such as food stamps provide temporary financial help for food. Other programs provide subsidized housing, help with medical expenses and provide tax credits. For veterans there is free health care, inexpensive prescriptions and disability income. Area agencies on aging offer individual counseling, legal help and advice with Medicare costs. (National Care Planning Council)
For some, living on a fixed income and dealing with debt can be an overwhelming burden. There are knowledgeable professionals and debt relief strategies that can assist in easing this burden. The National Care Planning Council keeps a list of financial advisers and attorneys who specialize in this area of planning at www.longtermcarelink.net.
www.mireverse.com
A large number of retired individuals feel that they have planned well for the future only to find that rising medical costs, damage done to investment portfolios (by the current economy) and many other factors have caused them to go into debt. According to an article in "USA Today" seniors are racking up debt like never before. Elderly individuals who are in debt live with a constant burden over their heads. Most of these people are on fixed incomes and have no way of paying off credit cards and home equity loans that continue to mount to cover household budget deficits. In order to meet ongoing payments, seniors often forego purchasing medications and skimp on food budgets. They live like hermits -- never going out and pinching every penny -- in order to pay their obligations.
Most of these people worked hard their entire lives and managed their debt. They never anticipated the rising costs of prescriptions, expensive medical care or depletion of savings by living too long. The good news is there is help for these individuals. Here are just a few examples of some relief options that could be available. There are many more besides these.
Reverse mortgages - A Home Equity Conversion Mortgages (HECMs), also known as a reverse mortgage, is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage". For those seniors who are less fortunate financially but own a home, a reverse mortgage can allow them to remain in the home by creating extra income.
Life settlements -- A life settlement enables older individuals, businesses and other organizations to sell life insurance policies they currently own – but no longer want or need – for an amount greater than the cash surrender value. In some cases the value can be 2-3 times the cash surrender value. Even some term life insurance policies with a conversion option to permanent coverage can qualify for a life settlement.
Government Programs -- Some government programs such as food stamps provide temporary financial help for food. Other programs provide subsidized housing, help with medical expenses and provide tax credits. For veterans there is free health care, inexpensive prescriptions and disability income. Area agencies on aging offer individual counseling, legal help and advice with Medicare costs. (National Care Planning Council)
For some, living on a fixed income and dealing with debt can be an overwhelming burden. There are knowledgeable professionals and debt relief strategies that can assist in easing this burden. The National Care Planning Council keeps a list of financial advisers and attorneys who specialize in this area of planning at www.longtermcarelink.net.
www.mireverse.com
9 Things you should know before getting a Reverse Mortgage with ANY company!
The reverse mortgage program... take a look in your mailbox and count the number of advertisements that you received today. 3,5 maybe more? So how do you choose? How do you make sure that you will get the best information, the most money and the best service? Every company says the exact same thing. Let me help you filter out the noise and give you the tools to ask the right questions. Email me and request your "Consumer Awareness Guide - 9 things you should know before getting a reverse mortgage with ANY company". ReverseMortgageGuy@rmlenders.com
www.mireverse.com
www.mireverse.com
Thursday, May 20, 2010
Reverse Mortgage Specialist Says You Don't Have Enough Equity.
Many people call me and find out that they don't have enough equity in their home, either because of falling home prices or a large mortgage, to obtain a Reverse Mortgage without having to bring some cash to the table. While they qualify (older than 61 and homeowner) they will have to reduce their mortgage before being able to complete the Reverse Mortgage. I want to share with you a situation that will illustrate how a Reverse Mortgage and a retirement account can work together to a greater benefit.
People often wouldn't even consider their other retirement account and how it could even become a bigger benefit than it already is by "merging" it with a Reverse Mortgage.
Lets look at a situation where a couple has a monthly payment of $1,800 on a $180,000 mortgage. Due to the value of their home going down in value they need to bring around $50,000 in cash to close the loan.
So lets look at what happens when the client takes $50,000 of retirement cash flow and puts it into a Reverse Mortgage. They no longer have a monthly mortgage payment resulting it their cash flow increasing immediately by $1,800. To make up the $50,000 of cash flow they spent it will take 2.3 years of an extra monthly cash flow of $1,800 (not taking into account the interest minus the taxes of the retirement account)to make up the $50,000 and at that point no more monthy mortgage payments as long as they live in the home.
Leaving it the way it is, you have the $50,000 but you will be paying the mortgage for at least the next 10 years which equals about $216,000.
These are just rough numbers and there are other factors to take into consideration, so give me a call and we can run the numbers and decide which route makes the most sense as you chart your financial future.
Troy Freesemann
(866) 800-0280
www.reversemortgageloans-rates.com
www.mireverse.com
People often wouldn't even consider their other retirement account and how it could even become a bigger benefit than it already is by "merging" it with a Reverse Mortgage.
Lets look at a situation where a couple has a monthly payment of $1,800 on a $180,000 mortgage. Due to the value of their home going down in value they need to bring around $50,000 in cash to close the loan.
So lets look at what happens when the client takes $50,000 of retirement cash flow and puts it into a Reverse Mortgage. They no longer have a monthly mortgage payment resulting it their cash flow increasing immediately by $1,800. To make up the $50,000 of cash flow they spent it will take 2.3 years of an extra monthly cash flow of $1,800 (not taking into account the interest minus the taxes of the retirement account)to make up the $50,000 and at that point no more monthy mortgage payments as long as they live in the home.
Leaving it the way it is, you have the $50,000 but you will be paying the mortgage for at least the next 10 years which equals about $216,000.
These are just rough numbers and there are other factors to take into consideration, so give me a call and we can run the numbers and decide which route makes the most sense as you chart your financial future.
Troy Freesemann
(866) 800-0280
www.reversemortgageloans-rates.com
www.mireverse.com
Thursday, May 13, 2010
The Financial Health of Aging Seniors
With our current economic challenges, those of us looking forward to retirement need to be well-informed about our financial needs in coming years. And not only pre-retirees, but individuals already in retirement need to be wise to the changing economic environment. The good news is there are trained professionals who keep abreast of changes in the current economy, changes in laws and changes in government programs for the elderly. Professionals in this field are equipped to handle everything from help with retirement savings accounts, investment advice, guidance on government programs, estate planning or even new funding options such as reverse mortgages. A little planning prior to retirement will allow you to maintain your current lifestyle; whereas, a lack of planning may require you to live on an extremely tight budget. For those already retired, taking time right now to deal with financial problems instead of waiting for a crisis to happen is well advised.
A large number of retired individuals feel that they have planned well for the future only to find that rising medical costs, damage done to investment portfolios (by the current economy) and many other factors have caused them to go into debt. According to an article in "USA Today" seniors are racking up debt like never before. Elderly individuals who are in debt live with a constant burden over their heads. Most of these people are on fixed incomes and have no way of paying off credit cards and home equity loans that continue to mount to cover household budget deficits. In order to meet ongoing payments, seniors often forego purchasing medications and skimp on food budgets. They live like hermits -- never going out and pinching every penny -- in order to pay their obligations.
Most of these people worked hard their entire lives and managed their debt. They never anticipated the rising costs of prescriptions, expensive medical care or depletion of savings by living too long. The good news is there is help for these individuals. Here are just a few examples of some relief options that could be available. There are many more besides these.
Reverse mortgages - A Home Equity Conversion Mortgages (HECMs), also known as a reverse mortgage, is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage". For those seniors who are less fortunate financially but own a home, a reverse mortgage can allow them to remain in the home by creating extra income.
Life settlements -- A life settlement enables older individuals, businesses and other organizations to sell life insurance policies they currently own – but no longer want or need – for an amount greater than the cash surrender value. In some cases the value can be 2-3 times the cash surrender value. Even some term life insurance policies with a conversion option to permanent coverage can qualify for a life settlement.
Government Programs -- Some government programs such as food stamps provide temporary financial help for food. Other programs provide subsidized housing, help with medical expenses and provide tax credits. For veterans there is free health care, inexpensive prescriptions and disability income. Area agencies on aging offer individual counseling, legal help and advice with Medicare costs. (National Care Planning Council)
For some, living on a fixed income and dealing with debt can be an overwhelming burden. There are knowledgeable professionals and debt relief strategies that can assist in easing this burden. The National Care Planning Council keeps a list of financial advisers and attorneys who specialize in this area of planning at www.longtermcarelink.net.
http://www.reversemortgageloans-rates.com
http://www.mireverse.com
Wisconsin Reverse Mortgage
www.mireverse.com
A large number of retired individuals feel that they have planned well for the future only to find that rising medical costs, damage done to investment portfolios (by the current economy) and many other factors have caused them to go into debt. According to an article in "USA Today" seniors are racking up debt like never before. Elderly individuals who are in debt live with a constant burden over their heads. Most of these people are on fixed incomes and have no way of paying off credit cards and home equity loans that continue to mount to cover household budget deficits. In order to meet ongoing payments, seniors often forego purchasing medications and skimp on food budgets. They live like hermits -- never going out and pinching every penny -- in order to pay their obligations.
Most of these people worked hard their entire lives and managed their debt. They never anticipated the rising costs of prescriptions, expensive medical care or depletion of savings by living too long. The good news is there is help for these individuals. Here are just a few examples of some relief options that could be available. There are many more besides these.
Reverse mortgages - A Home Equity Conversion Mortgages (HECMs), also known as a reverse mortgage, is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage". For those seniors who are less fortunate financially but own a home, a reverse mortgage can allow them to remain in the home by creating extra income.
Life settlements -- A life settlement enables older individuals, businesses and other organizations to sell life insurance policies they currently own – but no longer want or need – for an amount greater than the cash surrender value. In some cases the value can be 2-3 times the cash surrender value. Even some term life insurance policies with a conversion option to permanent coverage can qualify for a life settlement.
Government Programs -- Some government programs such as food stamps provide temporary financial help for food. Other programs provide subsidized housing, help with medical expenses and provide tax credits. For veterans there is free health care, inexpensive prescriptions and disability income. Area agencies on aging offer individual counseling, legal help and advice with Medicare costs. (National Care Planning Council)
For some, living on a fixed income and dealing with debt can be an overwhelming burden. There are knowledgeable professionals and debt relief strategies that can assist in easing this burden. The National Care Planning Council keeps a list of financial advisers and attorneys who specialize in this area of planning at www.longtermcarelink.net.
http://www.reversemortgageloans-rates.com
http://www.mireverse.com
Wisconsin Reverse Mortgage
www.mireverse.com
Monday, May 10, 2010
Wisconsin Reverse Mortgages and program changes
It seems that every month the Reverse Mortgage industry introduces a change. If its not a new Government reuirement, its a change in the programs available.
The good news is that recently we can now offer a Reverse Mortgage with no origination fee and no monthly service fee. This equates to saving seniors thousands of dollars when they obtain their Reverse Mortgage.
The first thought is that the interest rate would have increased to cover the difference, but the exact opposite is true. The interest rate actually went from 5.56% to 5.49%. While not a big change, the fact is it went down while the other costs went down as well.
It seems everything is costing more and more while our income is staying the same, but a Reverse Mortgage is one product that is coming down in cost.
I always share the negatives with and product and the main negative was alwaays the cost. Well that has changed and now the main negative is if you want to leave the house to the kids, the reverse mortgage isn't for you. A reverse mortgage lets you enjoy the fruits of your labor without decreasing you cash flow.
Due to all of the changes, it is important to work with a broker that only does reverse mortgages. Also, work with a broker that will guarantee getting you the most money. Get that promise in writing and hold them to it.
www.mireverse.com
www.reversemortgageloans-rates.com
Wisconsin Reverse Mortgage Wisconsin
The good news is that recently we can now offer a Reverse Mortgage with no origination fee and no monthly service fee. This equates to saving seniors thousands of dollars when they obtain their Reverse Mortgage.
The first thought is that the interest rate would have increased to cover the difference, but the exact opposite is true. The interest rate actually went from 5.56% to 5.49%. While not a big change, the fact is it went down while the other costs went down as well.
It seems everything is costing more and more while our income is staying the same, but a Reverse Mortgage is one product that is coming down in cost.
I always share the negatives with and product and the main negative was alwaays the cost. Well that has changed and now the main negative is if you want to leave the house to the kids, the reverse mortgage isn't for you. A reverse mortgage lets you enjoy the fruits of your labor without decreasing you cash flow.
Due to all of the changes, it is important to work with a broker that only does reverse mortgages. Also, work with a broker that will guarantee getting you the most money. Get that promise in writing and hold them to it.
www.mireverse.com
www.reversemortgageloans-rates.com
Wisconsin Reverse Mortgage Wisconsin
Tuesday, May 4, 2010
Thursday, April 29, 2010
The New Reverse Mortgage "Zero, Zero" Program
Your cash available from a reverse mortgage has increased anywhere from $4,500 - $11,000. Some experts are calling this a limited time sale! Call me to find out how much you are entitled to.
Almost 80% of my customers tell me the reverse mortgage sounds too good to be true. The “catch” has always been the closing cost…until now. We have eliminated the monthly service fee and the origination fee. Lets take a look at how much this new program will save you:
Previously the service set aside fee would limit the cash available to you by $2,000 - $5,000 based on your age. NOW that money will be put in your pocketbook! The origination fee charged to you in the past was $2,500 - $6,000 based on the value of your home. NOW that cash is also going to be placed directly in your pocketbook! Even better, the interest rate has been reduced.
If you have ever considered a reverse mortgage, you need to take another serious look and learn how the new savings will benefit you.
Troy Freesemann
Reverse Mortgage USA
(877) 298-5614
http://www.reversemortgageloans-rates.com
www.mireverse.com
Almost 80% of my customers tell me the reverse mortgage sounds too good to be true. The “catch” has always been the closing cost…until now. We have eliminated the monthly service fee and the origination fee. Lets take a look at how much this new program will save you:
Previously the service set aside fee would limit the cash available to you by $2,000 - $5,000 based on your age. NOW that money will be put in your pocketbook! The origination fee charged to you in the past was $2,500 - $6,000 based on the value of your home. NOW that cash is also going to be placed directly in your pocketbook! Even better, the interest rate has been reduced.
If you have ever considered a reverse mortgage, you need to take another serious look and learn how the new savings will benefit you.
Troy Freesemann
Reverse Mortgage USA
(877) 298-5614
http://www.reversemortgageloans-rates.com
www.mireverse.com
Tuesday, March 16, 2010
The Reverse Mortgage Doctor for you Financial Health
The Reverse Mortgage has been around for some time and now most people have heard something about them. We have heard they are the best things for seniors and we have also heard that they are the worst things for seniors. In fact I think that both of the reports are accurate because it depends on each individuals situation.
When we go to a doctor for a yearly check up we aren’t always sick or feeling bad, but just want to make sure that if there is something we are missing that we can catch it early and make adjustments to avoid future problems. We also might learn about new procedures or advances that can eliminate some challenges that we have learned to live with. Of course, if a challenge is more than the doctor is trained for he will send you to a specialist.
We can find a lot of medical information in the news, on the internet and almost everywhere you turn. Even with all of this information we could sort through I don’t believe we would skip our yearly exam and rely on the information we read. With every report contradicting each other and not knowing the source or reliability of the information using it to self diagnose or treat could prove to be very dangerous.
If you agree with that, why would you self diagnose your personal financial situation without sitting down with a “financial doctor”? My area of expertise is reverse mortgages and that’s all I do, because I want to specialize. Maybe you have read all kinds of information about the reverse mortgage and self diagnosed that its not for you. Well you may be right, but what if you are wrong? Wouldn’t the prudent thing to do is visit with a specialist that can give you a full education and understanding? You will either confirm your suspicions that it isn’t for you or find out something that you didn’t know and realize it might just be what you are looking for. Either way you will be better for taking the time.
If a reverse mortgage isn’t for you, I will tell you and if I know of another financial specialist that might help you in your situation, I will refer you to them. I spend most of my day educating people on the misconceptions about the industry and I fear there are a lot of people that could use this product, but are self diagnosing themselves out of the market because of bad reporting and the perpetuation of reverse mortgage misconceptions. Please take the time to talk to an expert…get things in writing and make sure the reverse mortgage specialist answers ALL of your questions in a way that is easy to understand.
Good luck and wishing you physical, mental and financial health
www.mireverse.com
www.reversemortgageloans-rates.com
When we go to a doctor for a yearly check up we aren’t always sick or feeling bad, but just want to make sure that if there is something we are missing that we can catch it early and make adjustments to avoid future problems. We also might learn about new procedures or advances that can eliminate some challenges that we have learned to live with. Of course, if a challenge is more than the doctor is trained for he will send you to a specialist.
We can find a lot of medical information in the news, on the internet and almost everywhere you turn. Even with all of this information we could sort through I don’t believe we would skip our yearly exam and rely on the information we read. With every report contradicting each other and not knowing the source or reliability of the information using it to self diagnose or treat could prove to be very dangerous.
If you agree with that, why would you self diagnose your personal financial situation without sitting down with a “financial doctor”? My area of expertise is reverse mortgages and that’s all I do, because I want to specialize. Maybe you have read all kinds of information about the reverse mortgage and self diagnosed that its not for you. Well you may be right, but what if you are wrong? Wouldn’t the prudent thing to do is visit with a specialist that can give you a full education and understanding? You will either confirm your suspicions that it isn’t for you or find out something that you didn’t know and realize it might just be what you are looking for. Either way you will be better for taking the time.
If a reverse mortgage isn’t for you, I will tell you and if I know of another financial specialist that might help you in your situation, I will refer you to them. I spend most of my day educating people on the misconceptions about the industry and I fear there are a lot of people that could use this product, but are self diagnosing themselves out of the market because of bad reporting and the perpetuation of reverse mortgage misconceptions. Please take the time to talk to an expert…get things in writing and make sure the reverse mortgage specialist answers ALL of your questions in a way that is easy to understand.
Good luck and wishing you physical, mental and financial health
www.mireverse.com
www.reversemortgageloans-rates.com
Tuesday, February 23, 2010
Friday, January 8, 2010
Say Goodbye to Mr. Struggle
You might have heard or noticed on the news that the cost of living is increasing at an alarming rate and our income has stayed pretty steady. Actually with the dollar becoming weaker the purchasing power of our income has steadily decreased.
Take a look at your gas bill and electric bill and compare it to last years bills…its hard to imagine the increase. How are we expected to keep paying these high prices when our income stays the same and our purchasing power keeps decreasing?
There are ways to help get out of this slump, but if you are like many people they live in fear and denial. They are often too depressed and stressed out to look around and see what might be available to help. The economy is not easy for anyone, so it makes you wonder how your neighbor and friends are doing it.
Maybe they were just lucky, they probably have always had luck on their side. Or maybe their family had a lot of money and they were just given money. Or maybe they had a great job and didn’t have any of the financial setbacks in their life you experienced… a lot of different thoughts run through the mind.
But maybe, just maybe the people you see sailing by on easy street might have looked around and found out about a number of programs that were created to help.
I bet before they found the program that helped them they looked at 3 or 4 before deciding which one fit their situation. I am sure they took a hard look at a lot of opportunities, kicked the tires, talked to the experts, did some research. They were smart because after looking at the different programs, when they decided to help themselves they knew without a shadow of a doubt that what they picked was best for them.
I know you are smart too, because you have read this letter to this point and are beginning to think, maybe just maybe there is something out there that would put you back on easy street. Understand, for many people they will struggle all their life and become so comfortable with struggling that struggling becomes their close friend. Mr. or Ms. Struggle have become so close to you that you wouldn’t dare look at a program that would alienate one of your closest and dearest friends that has been with you for years. I mean they have been with you all your life.
Now lets tell Mr. or Ms. Struggle that you would like to start seeing other people and maybe you will find Mr. or Ms. Prosperity and Mr. or Ms. Financial Freedom more fun to hang around with. You see as soon as you meet Mr. or Ms. Cash Flow, you will soon forget about Mr. or Ms. Struggle.
Let me introduce you to your new friends – I promise a long fulfilling relationship with a friend that will cause you to quickly forget about Mr. or Ms. Struggle.
(866) 800-0280
http://www.mireverse.com/
http://www.reversemortgageloans-rates.com/
Take a look at your gas bill and electric bill and compare it to last years bills…its hard to imagine the increase. How are we expected to keep paying these high prices when our income stays the same and our purchasing power keeps decreasing?
There are ways to help get out of this slump, but if you are like many people they live in fear and denial. They are often too depressed and stressed out to look around and see what might be available to help. The economy is not easy for anyone, so it makes you wonder how your neighbor and friends are doing it.
Maybe they were just lucky, they probably have always had luck on their side. Or maybe their family had a lot of money and they were just given money. Or maybe they had a great job and didn’t have any of the financial setbacks in their life you experienced… a lot of different thoughts run through the mind.
But maybe, just maybe the people you see sailing by on easy street might have looked around and found out about a number of programs that were created to help.
I bet before they found the program that helped them they looked at 3 or 4 before deciding which one fit their situation. I am sure they took a hard look at a lot of opportunities, kicked the tires, talked to the experts, did some research. They were smart because after looking at the different programs, when they decided to help themselves they knew without a shadow of a doubt that what they picked was best for them.
I know you are smart too, because you have read this letter to this point and are beginning to think, maybe just maybe there is something out there that would put you back on easy street. Understand, for many people they will struggle all their life and become so comfortable with struggling that struggling becomes their close friend. Mr. or Ms. Struggle have become so close to you that you wouldn’t dare look at a program that would alienate one of your closest and dearest friends that has been with you for years. I mean they have been with you all your life.
Now lets tell Mr. or Ms. Struggle that you would like to start seeing other people and maybe you will find Mr. or Ms. Prosperity and Mr. or Ms. Financial Freedom more fun to hang around with. You see as soon as you meet Mr. or Ms. Cash Flow, you will soon forget about Mr. or Ms. Struggle.
Let me introduce you to your new friends – I promise a long fulfilling relationship with a friend that will cause you to quickly forget about Mr. or Ms. Struggle.
(866) 800-0280
http://www.mireverse.com/
http://www.reversemortgageloans-rates.com/
Just Scraping By
If I had a nickel for everyone that told me that they aren’t interested in a Reverse Mortgage because they are “doing fine” or “just scraping by” I would be on a beach somewhere enjoying a cool drink!
Whenever I hear those three words, I take a moment and try to imagine what my retirement will look like. Will I be happy in my retirement years – just scraping by? Is that really why I am working so hard to raise my money and hopefully put a little away so in my retirement I can just “scrape by".
What happened to the “Golden Years”? What happen to enjoying retirement? What happened to all that money that I worked so hard for over the last 40 years? I paid off my house, raised my family and they had nice things now I finally have the time to do all the things I put off so I could take care of my family…but I can’t because I am “just scraping by”.
What a sad state of affairs – is this what our seniors have come to expect – scrape by all your life taking care of your family and then retire! Oh and continue to “just scrape by”.
I actually heard that the money one mother gets from her Birthday, Mothers Day and Christmas takes care of her – either she gets a lot in those cards or she can get by on barely anything (I want her Christmas list). She is just scraping by!
What I offer isn’t for everyone, but it is a tool to help people enjoy their retirement. It is an option to allow you to enjoy your “Golden Years”. But we all know that ignorance is bliss – but not exploring your options and “just scraping by” doesn’t sound to blissful.
Well the information is free, the education costs nothing – but ignorance can be very costly.
Oh and if you enjoy the “challenge” of “just scraping by” – then it would be a waste of time to get together – but if you want more out of life than to “just scrape by”, maybe it might be worthwhile to talk!
Troy Freesemann
(866)800-0280
http://www.reversemortgageloans-rates.com/
www.mireverse.com
Whenever I hear those three words, I take a moment and try to imagine what my retirement will look like. Will I be happy in my retirement years – just scraping by? Is that really why I am working so hard to raise my money and hopefully put a little away so in my retirement I can just “scrape by".
What happened to the “Golden Years”? What happen to enjoying retirement? What happened to all that money that I worked so hard for over the last 40 years? I paid off my house, raised my family and they had nice things now I finally have the time to do all the things I put off so I could take care of my family…but I can’t because I am “just scraping by”.
What a sad state of affairs – is this what our seniors have come to expect – scrape by all your life taking care of your family and then retire! Oh and continue to “just scrape by”.
I actually heard that the money one mother gets from her Birthday, Mothers Day and Christmas takes care of her – either she gets a lot in those cards or she can get by on barely anything (I want her Christmas list). She is just scraping by!
What I offer isn’t for everyone, but it is a tool to help people enjoy their retirement. It is an option to allow you to enjoy your “Golden Years”. But we all know that ignorance is bliss – but not exploring your options and “just scraping by” doesn’t sound to blissful.
Well the information is free, the education costs nothing – but ignorance can be very costly.
Oh and if you enjoy the “challenge” of “just scraping by” – then it would be a waste of time to get together – but if you want more out of life than to “just scrape by”, maybe it might be worthwhile to talk!
Troy Freesemann
(866)800-0280
http://www.reversemortgageloans-rates.com/
www.mireverse.com
Tuesday, December 8, 2009
Reverse Mortgage Loans
For many seniors the equity in their home is their largest single asset, yet it is unavailable to use unless they use a conventional home-equity loan. But a conventional loan really doesn't free up the equity because the money has to be paid back with interest.
A reverse mortgage is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage".
Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, to create money for a down payment for a second home or to pay off debt. Popularity is skyrocketing. Over the last five years the number of reverse mortgages nationwide has tripled. The uses of this untapped wealth are only limited by a person's imagination.
For those seniors who earn low incomes but own a home, a reverse mortgage can allow them to remain in the home by creating extra income. It can also allow for remodeling or repairs and when the time comes to sell, the investment in the home can make it more valuable.
False Beliefs about Reverse Mortgages
“The lender could take my house.” The homeowner retains full ownership. The Reverse Mortgage is just like any other mortgage; you own the title and the bank holds a lien. You can pay it off anytime you like.
“I can be thrown out of my own home.” Homeowners can stay in the home as long as they live, with no payment requirement.
“I could end up owing more than my house is worth.” The homeowner can never owe more than the value of the home at the time the loan is due.
“My heirs will be against it.” Experience demonstrates heirs are in favor of Reverse Mortgages.
Virtually anyone can qualify. You must be at least 62, own and live in, as a primary residence, a home [1-4 family residence, condominium, co-op, permanent mobile home, or manufactured home] in order to qualify for a reverse mortgage.
There are no income, asset or credit requirements. It is the easiest loan to qualify for.
A reverse mortgage is similar to a conventional mortgage. As an example:
•The bank does not own the home but owns a lien on the property just as with any other mortgage.
•You continue to hold title to the property as with any other mortgage
•The bank has no recourse to demand payment from any family member if there is not enough equity to cover paying off the loan
•There is no penalty to pay off the mortgage early
•When the loan becomes due, you can refinance and keep the house.
The proceeds from a reverse mortgage are tax-free and can be used for any legal purpose you wish:
•daily living expenses
•home repairs and improvements
•medical bills and prescription drugs
•pay-off of existing debts
•education, travel
•long-term care and/or long-term care insurance
•financial and estate tax plans
•gifts and trusts
•to purchase life insurance
•or any other needs you may have.
The amount of reverse mortgage benefit for which you may qualify, will depend on
1.your age at the time you apply for the loan,
2.the reverse mortgage program you choose,
3.the value of your home, current interest rates,
4.and for some products, where you live.
As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be (up to certain limits, in some cases). The reverse mortgage must pay off any outstanding liens against your property before you can withdraw additional funds.
The loan is not due and payable until the borrower no longer occupies the home as a principal residence (i.e. the borrower sells, moves out permanently or passes away). At that time, the balance of borrowed funds is due and payable, all additional equity in the property belongs to the owners or their beneficiaries. If the heirs want to keep the home with the additional equity, they can refinance with a conventional loan.
There are three reverse mortgage loan products available, the FHA - HECM (Home Equity Conversion Mortgage), Fannie Mae - HomeKeeper®, and the Cash Account programs. Over 90% of all reverse mortgages are HECM contracts.
The costs associated with getting a reverse mortgage are similar to those with a conventional mortgage, such as the origination fee, appraisal and inspection fees, title policy, mortgage insurance and other normal closing costs. With a reverse mortgage, all of these costs will be financed as part of the mortgage prior to your withdrawal of additional funds.
You must participate in an independent Credit Counseling session with an FHA-approved counselor early in the application process for a reverse mortgage. The counselor's job is to educate you about all of your mortgage options. This counseling session is at no cost to the borrower and can be done in person or, more typically, over the telephone. After completing this counseling, you will receive a Counseling Certificate in the mail which must be included as part of the reverse mortgage application.
You can choose 3 options to receive the money from a reverse mortgage:
1) all at once (lump sum);
2) fixed monthly payments (for up to life);
3) a line of credit; or a combination of a line of credit and monthly payments.
The most popular option, chosen by more than 60 percent of borrowers, is the line of credit, which allows you to draw on the loan proceeds at any time. The line of credit also earns interest which in essence is allowing the equity in the home to grow. For example $120,000 in a line of credit earning 5% would be worth almost $200,000 10 years from now.
Keeping money in a reverse mortgage line of credit in most states will not count as an asset for Medicaid eligibility as this would be considered a loan and not a resource for Medicaid spend down. In other words, keeping the money in the line of credit will not disqualify you from becoming Medicaid eligible.
However, transferring the money to an investment or to a bank account would represent an asset and would trigger a spend down requirement and delay eligibility. Please note however that distinguishing between what portion of reverse mortgage proceeds might be counted as a loan and what portion as an asset is not a simple black and white decision. It is best to get an opinion from an elder attorney in your state.
If a senior homeowner chooses to repay any portion of the interest accruing against his borrowed funds, the payment of this interest may be deductible (just as any mortgage interest may be). A reverse mortgage loan will be available to a senior homeowner to draw upon for as long as that person lives in the home. And, in some cases, the lender increases the total amount of the line of credit over time (unlike a traditional Home Equity Line where the credit limit is established at origination). If a senior homeowner stays in the property until he or she dies, his or her estate valuation will be reduced by the amount of the debt.
At the death of the last borrower or the sale of the home, the loan is repaid from equity in the home. Any remaining equity (which is often the case) goes to the heirs.
Almost all reverse mortgages are the HECM loan which is guaranteed by FHA mortgage insurance. If there is not enough equity to cover the loan, the insurance satisfies the loan by paying the deficit. With a HECM loan, the bank will never come after the heirs to satisfy the mortgage obligation.
http://www.mireverse.com/
http://www.reversemortgageloans-rates.com/
A reverse mortgage is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage".
Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, to create money for a down payment for a second home or to pay off debt. Popularity is skyrocketing. Over the last five years the number of reverse mortgages nationwide has tripled. The uses of this untapped wealth are only limited by a person's imagination.
For those seniors who earn low incomes but own a home, a reverse mortgage can allow them to remain in the home by creating extra income. It can also allow for remodeling or repairs and when the time comes to sell, the investment in the home can make it more valuable.
False Beliefs about Reverse Mortgages
“The lender could take my house.” The homeowner retains full ownership. The Reverse Mortgage is just like any other mortgage; you own the title and the bank holds a lien. You can pay it off anytime you like.
“I can be thrown out of my own home.” Homeowners can stay in the home as long as they live, with no payment requirement.
“I could end up owing more than my house is worth.” The homeowner can never owe more than the value of the home at the time the loan is due.
“My heirs will be against it.” Experience demonstrates heirs are in favor of Reverse Mortgages.
Virtually anyone can qualify. You must be at least 62, own and live in, as a primary residence, a home [1-4 family residence, condominium, co-op, permanent mobile home, or manufactured home] in order to qualify for a reverse mortgage.
There are no income, asset or credit requirements. It is the easiest loan to qualify for.
A reverse mortgage is similar to a conventional mortgage. As an example:
•The bank does not own the home but owns a lien on the property just as with any other mortgage.
•You continue to hold title to the property as with any other mortgage
•The bank has no recourse to demand payment from any family member if there is not enough equity to cover paying off the loan
•There is no penalty to pay off the mortgage early
•When the loan becomes due, you can refinance and keep the house.
The proceeds from a reverse mortgage are tax-free and can be used for any legal purpose you wish:
•daily living expenses
•home repairs and improvements
•medical bills and prescription drugs
•pay-off of existing debts
•education, travel
•long-term care and/or long-term care insurance
•financial and estate tax plans
•gifts and trusts
•to purchase life insurance
•or any other needs you may have.
The amount of reverse mortgage benefit for which you may qualify, will depend on
1.your age at the time you apply for the loan,
2.the reverse mortgage program you choose,
3.the value of your home, current interest rates,
4.and for some products, where you live.
As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be (up to certain limits, in some cases). The reverse mortgage must pay off any outstanding liens against your property before you can withdraw additional funds.
The loan is not due and payable until the borrower no longer occupies the home as a principal residence (i.e. the borrower sells, moves out permanently or passes away). At that time, the balance of borrowed funds is due and payable, all additional equity in the property belongs to the owners or their beneficiaries. If the heirs want to keep the home with the additional equity, they can refinance with a conventional loan.
There are three reverse mortgage loan products available, the FHA - HECM (Home Equity Conversion Mortgage), Fannie Mae - HomeKeeper®, and the Cash Account programs. Over 90% of all reverse mortgages are HECM contracts.
The costs associated with getting a reverse mortgage are similar to those with a conventional mortgage, such as the origination fee, appraisal and inspection fees, title policy, mortgage insurance and other normal closing costs. With a reverse mortgage, all of these costs will be financed as part of the mortgage prior to your withdrawal of additional funds.
You must participate in an independent Credit Counseling session with an FHA-approved counselor early in the application process for a reverse mortgage. The counselor's job is to educate you about all of your mortgage options. This counseling session is at no cost to the borrower and can be done in person or, more typically, over the telephone. After completing this counseling, you will receive a Counseling Certificate in the mail which must be included as part of the reverse mortgage application.
You can choose 3 options to receive the money from a reverse mortgage:
1) all at once (lump sum);
2) fixed monthly payments (for up to life);
3) a line of credit; or a combination of a line of credit and monthly payments.
The most popular option, chosen by more than 60 percent of borrowers, is the line of credit, which allows you to draw on the loan proceeds at any time. The line of credit also earns interest which in essence is allowing the equity in the home to grow. For example $120,000 in a line of credit earning 5% would be worth almost $200,000 10 years from now.
Keeping money in a reverse mortgage line of credit in most states will not count as an asset for Medicaid eligibility as this would be considered a loan and not a resource for Medicaid spend down. In other words, keeping the money in the line of credit will not disqualify you from becoming Medicaid eligible.
However, transferring the money to an investment or to a bank account would represent an asset and would trigger a spend down requirement and delay eligibility. Please note however that distinguishing between what portion of reverse mortgage proceeds might be counted as a loan and what portion as an asset is not a simple black and white decision. It is best to get an opinion from an elder attorney in your state.
If a senior homeowner chooses to repay any portion of the interest accruing against his borrowed funds, the payment of this interest may be deductible (just as any mortgage interest may be). A reverse mortgage loan will be available to a senior homeowner to draw upon for as long as that person lives in the home. And, in some cases, the lender increases the total amount of the line of credit over time (unlike a traditional Home Equity Line where the credit limit is established at origination). If a senior homeowner stays in the property until he or she dies, his or her estate valuation will be reduced by the amount of the debt.
At the death of the last borrower or the sale of the home, the loan is repaid from equity in the home. Any remaining equity (which is often the case) goes to the heirs.
Almost all reverse mortgages are the HECM loan which is guaranteed by FHA mortgage insurance. If there is not enough equity to cover the loan, the insurance satisfies the loan by paying the deficit. With a HECM loan, the bank will never come after the heirs to satisfy the mortgage obligation.
http://www.mireverse.com/
http://www.reversemortgageloans-rates.com/
Monday, November 30, 2009
Medicaid Planning
Introduction
A person facing the prospect of long-term care with moderate income and assets may eventually have to rely on Medicaid to pay part or all of the cost of care.
Medicaid planning, using a qualified elder law attorney, allows you to correct inequities in the system. Medicaid planning has gotten a bad name because some individuals, who would normally have too many assets to ever qualify for Medicaid, deliberately use it, many years in advance, to give away everything to their family so as to qualify for Medicaid. It is wrong to abuse the system in this way and to use taxpayer dollars to insure an inheritance for the family. And if that person is not anticipating immediate care, this strategy is just plain dumb. A list of practitioners who specialize in this area of helping people with Medicaid issues can be found at http://www.longtermcarelink.net/a7medicaidplanning.htm
Income Annuity in the Name of the Community Spouse
This technique relies on two Medicaid rules. The first rule is that income between couples is attributed to the spouse who owns the income. Unlike assets which have to be shared for Medicaid eligibility, income does not have to be shared. For example if the Medicaid recipient has a total income of $500 a month and the community spouse has a total income of $4,000 a month the community spouse is not required to contribute any income towards the care of his or her spouse. Medicaid will cover the bill less the $500 a month, which, less a monthly allowance must be spent towards the cost of care. The second rule allows a spouse to transfer any amount of assets to another spouse without penalty of losing Medicaid eligibility.
Using these two rules, here is how a Medicaid annuity strategy works.
The person needing long-term care -- the institutional spouse -- applies to Medicaid in order to receive Medicaid services. In this case suppose the couple has $100,000 of cash equivalent assets and owns a home and a car. As long as the healthy spouse -- the community spouse -- lives in the home she can keep the home and the car and those assets do not prevent the institutional spouse from receiving Medicaid help. In this example, the institutional spouse must spend $50,000 of the couple's assets down to less than $2,000 and have an income insufficient to cover the cost of care and then Medicaid will take over.
Once the Medicaid application has been submitted, instead of starting the spend down to $2,000 and then receiving approval and having Medicaid pick up the balance of the cost, the institutional spouse transfers his $50,000 to his wife. This is allowable and will not disqualify the Medicaid approval process but it does not yet take away the responsibility to spend down the cash. The community spouse then uses the money to purchase an immediate income annuity for a period equal to or less than the allowable life expectancy in the HCFA transmittal 64 table. Assets have now been converted to about $800 a month in income. The income belongs to the community spouse and does not have to be shared with the institutional spouse. Therefore the spend down has been avoided. Evidence of this transaction is presented to Medicaid and because the institutional spouse no longer has any attributable assets, Medicaid starts paying its share of the bill.
This strategy serves two purposes. First, it may give the community spouse a larger income than she otherwise would have had under Medicaid rules. Second, even though it represents income, the community spouse has managed to keep $50,000 that would normally have to be spent.
In the past, some planners have set up annuities that provide a remainder payout should the community spouse die too soon. This is usually paid to the children and in the past was used as a way to transfer assets to the children without penalty. Under the Deficit Reduction Act of 2006, the state must be named as beneficiary for any remainder payout. This new rule discourages the use of these annuities to transfer assets to the next generation.
It is important for the planner to follow Medicaid guidelines in order to avoid a penalty. If the payout period of the annuity exceeds the life expectancy in Medicaid tables, then the excess amount of total income payment over the life expectancy becomes a transfer for less than value and represents a penalty. This in turn results in a penalty period equal to the amount of excess divided by the monthly Medicaid rate in that state. Medicaid will not start paying for care until this penalty period has been met with someone else paying for that care. It's important to use a qualified adviser to make sure you do all of this properly.
Prepaid Funeral Instead of or in Addition to Burial Funds
Federal rules allow a person on Medicaid to keep up to $1,500 for funeral expenses. Most states allow a recipient to buy a prepaid funeral plan. The limit for such a plan is usually higher than the $1,500 allowed by Federal rules. As an example, if your state allows $7,000 for a prepaid funeral plan then you should use the full amount you have money for to buy a plan.
Your state may also allow additional costs such as the burial plots, caskets and vaults to be tacked on, thus raising the limit.
Use of Spend Down Resources
People assume money being spent down for Medicaid eligibility needs to be applied to care costs. In reality, Medicaid is only interested in seeing the potential Medicaid recipient's resources reduced to less than $2,000. How the money is spent is only questioned if there has been a transfer for less than value.
In order to qualify for Medicaid more quickly, you may want to use some of the spend down money to pay off debt, trade in the old car and buy a new one. (Medicaid typically allows a community spouse to retain just one car), or fix up the house.
Intend to Return Home
If a single person receiving Medicaid care in a facility has a house, that property could be subject to sale to pay for Medicaid expenses. The house is only protected if a qualifying child or dependent lives there or if the recipient intends on returning home. Some states require a medical doctor to certify a return home, but in many states it only requires the signature of the recipient whether that recipient has justification or not. In the states that allow it, always have your loved one sign an intent to return home. At least you have use of the property while your loved one is still alive.
Most families sell the home and end up with a large amount of cash that must be spent down before the loved one qualifies for Medicaid. Keeping the home avoids losing the entire value of it to spend down. By retaining the home, Medicaid recovery may not come after the full value of the home when the loved one dies.
Potential rental income from the house would also go towards paying the the facility cost and reduce the amount that Medicaid would have to pick up. This could mean that Medicaid recovery using this strategy might go after a smaller share of its cost in the recovery process.
Medicaid treatment of a Home
If the community spouse lives in the home then the home is exempt from determining Medicaid eligibility. It does not count as an asset and prevent the institutional spouse from receiving Medicaid help. On the other hand any other real estate property, not the primary residence, will have to be converted to cash and spent down before Medicaid will start paying the bill.
If the community spouse living in the home does not in turn need Medicaid help in the future then one of two things can happen to the house after the death of the institutional spouse. Legally Medicaid has a claim against the property for recovery services. And in some states a lien against the property, called a TEFRA lien, can be filed in anticipation of Medicaid's cost. The lien can be filed before the death of the care recipient but only a few states actually do that. States that have authority to file these liens often don't so until after the death. At the death of the community spouse, the property cannot be sold until the lien is satisfied. But in states where there is no lien, if the community spouse dies after the institutional spouse it's unlikely that state Medicaid recovery will use the property as an asset for recovery.
And in many states if the property is inside a trust, the state may not consider the house an asset for recovery even though most states have altered their definition of estate to include a trust. Many states still rely on filing a claim in probate court to initiate recovery. The bottom line is very few states are efficient at recovery especially when it comes to a primary residence. Always contact and work with a competent adviser when dealing with recovery issues. You can never assume what your state recovery program will actually do.
Special Home Exemption Rule
It's often the case that a daughter will move in to take care of Mom or Dad or both. In this case Medicaid has a special leniency rule to allow transfer of the home to the daughter and not result in a penalty for a transfer for less than value. If the child provides care for a parent in a parent's home for at least two years, and that care kept the recipient out of a nursing home, the property can be transferred to the child without penalty and the property will not be a subject asset for Medicaid recovery. Medicaid will require some proof of this. Typically an affidavit from a third-party care provider such as a doctor or an agency stipulating that the care was given for at least two years and resulted in keeping the care recipient out of a long-term care facility, will be sufficient evidence. It's important to use a legal adviser to make sure you do this properly.
Joint Tenancy
Many people anticipating Medicaid services are tempted to put a child's or sibling's name on property titles to avoid probate and Medicaid recovery. It may not be a good idea.
There are at least four problems.
• If the other person on the title becomes subject to a judgment, even one arising from an accident, then at least 50% of the property can be lost to the judgment.
• The other person on the title must consent to any disposition of the property. He or she might not be in accordance with what the original owner wants to do.
• Redoing the title must occur at least 5 years prior to claim in order to avoid look back rules and a sanction on a gift to a non spouse owner.
• The person assuming joint ownership has received a gift and loses the step-up in basis at death. Capital gains taxes may have to be paid. And if the property is not the principal residence of the new tenant, the capital gains exclusion cannot be used either.
Transfer Title of the Property to The Community Spouse
Transfers to a spouse of any assets are exempt from Medicaid eligibility rules. An institutional spouse, anticipating Medicaid, can transfer title in the home to the community spouse and it has no effect on Medicaid eligibility. This can be done either with a quit claim deed or through a trust. With the asset no longer in the name of the care recipient, Medicaid recovery cannot use the house as a basis for recovering its costs. And the community spouse can transfer the house to a member of the family and as long as this is done beyond the five-year look back period, then Medicaid can't assess a penalty period for a transfer of assets for less than value. It's important to use a legal adviser to make sure you do this properly.
Trust to Avoid Probate
Common trusts to avoid probate are called "living" or "inter vivos" trusts. A trust never dies, thus it is not subject to probate. Most arrangements make the trust the owner of the property with the original owner(s) as trustee(s) (caretaker as it were) and beneficiaries(s). Thus the property reverts to the estate at death. Most people initiate these trusts to avoid probate. Assets in these trusts, other than a primary residence, are transparent to Medicaid. These trust assets are subject to Medicaid spend down rules.
The trust can be used in states where Medicaid recovery only uses primary residences passing through probate as being subject to recovery. However, a growing number of states do not recognize these arrangements to avoid probate estate recovery and go after primary residences in revocable trusts regardless of ownership.
To do it right for these states requires an irrevocable trust with no life interest, set up 5 years or more before a Medicaid claim. Very few people are willing to do these kinds of trusts.
Some people also include a so-called "life interest" in property in arrangements where property is gifted or in irrevocable trusts. The life interest gives them use of the property until their death even though they don't own it. Medicaid in many states does not recognize life interest and the property is considered to be in the ownership of the person who gifted it and subject to look back rules and recovery.
Move Loved One Needing Care to Another State
A person needing Medicaid covered care in one state may not qualify under that state's rules but might qualify under the rules of a neighboring state. Of particular concern are candidates suffering from dementia or Alzheimer's. It's difficult to quantify their need for care and in some states, those people who are cognitively impaired might not get help with Medicaid even though their needs might be greater than the needs of those who are physically disabled.
Families should consider moving loved ones who have been declined in one state, to live with a member of the family in another state and possibly qualifying in that state. In addition the new state may be more lenient with Medicaid recovery procedures.
A second reason may be that the current state of residence has a very tight supply of Medicaid beds and there is a waiting list. Moving the loved one to a state where there are more available Medicaid beds may avoid the family having to temporarily cover the cost of a non-Medicaid nursing home bed while waiting for one to become available.
Give Away Assets
We have already discussed the moral implications of using Medicaid planning strategies for unfairly qualifying for Medicaid and shifting the burden of cost to the taxpayers. New look back rules under the Deficit Reduction Act have effectively done away with gifting strategies used in the past to accelerate eligibility for Medicaid. This does not mean that gifts cannot be used, but planning must be done many years in advance. Under these new circumstances the whole concept of gifting in order to qualify for Medicaid probably makes little sense.
http://www.reversemortgageloans-rates.com/
http://www.mireverse.com/
A person facing the prospect of long-term care with moderate income and assets may eventually have to rely on Medicaid to pay part or all of the cost of care.
Medicaid planning, using a qualified elder law attorney, allows you to correct inequities in the system. Medicaid planning has gotten a bad name because some individuals, who would normally have too many assets to ever qualify for Medicaid, deliberately use it, many years in advance, to give away everything to their family so as to qualify for Medicaid. It is wrong to abuse the system in this way and to use taxpayer dollars to insure an inheritance for the family. And if that person is not anticipating immediate care, this strategy is just plain dumb. A list of practitioners who specialize in this area of helping people with Medicaid issues can be found at http://www.longtermcarelink.net/a7medicaidplanning.htm
Income Annuity in the Name of the Community Spouse
This technique relies on two Medicaid rules. The first rule is that income between couples is attributed to the spouse who owns the income. Unlike assets which have to be shared for Medicaid eligibility, income does not have to be shared. For example if the Medicaid recipient has a total income of $500 a month and the community spouse has a total income of $4,000 a month the community spouse is not required to contribute any income towards the care of his or her spouse. Medicaid will cover the bill less the $500 a month, which, less a monthly allowance must be spent towards the cost of care. The second rule allows a spouse to transfer any amount of assets to another spouse without penalty of losing Medicaid eligibility.
Using these two rules, here is how a Medicaid annuity strategy works.
The person needing long-term care -- the institutional spouse -- applies to Medicaid in order to receive Medicaid services. In this case suppose the couple has $100,000 of cash equivalent assets and owns a home and a car. As long as the healthy spouse -- the community spouse -- lives in the home she can keep the home and the car and those assets do not prevent the institutional spouse from receiving Medicaid help. In this example, the institutional spouse must spend $50,000 of the couple's assets down to less than $2,000 and have an income insufficient to cover the cost of care and then Medicaid will take over.
Once the Medicaid application has been submitted, instead of starting the spend down to $2,000 and then receiving approval and having Medicaid pick up the balance of the cost, the institutional spouse transfers his $50,000 to his wife. This is allowable and will not disqualify the Medicaid approval process but it does not yet take away the responsibility to spend down the cash. The community spouse then uses the money to purchase an immediate income annuity for a period equal to or less than the allowable life expectancy in the HCFA transmittal 64 table. Assets have now been converted to about $800 a month in income. The income belongs to the community spouse and does not have to be shared with the institutional spouse. Therefore the spend down has been avoided. Evidence of this transaction is presented to Medicaid and because the institutional spouse no longer has any attributable assets, Medicaid starts paying its share of the bill.
This strategy serves two purposes. First, it may give the community spouse a larger income than she otherwise would have had under Medicaid rules. Second, even though it represents income, the community spouse has managed to keep $50,000 that would normally have to be spent.
In the past, some planners have set up annuities that provide a remainder payout should the community spouse die too soon. This is usually paid to the children and in the past was used as a way to transfer assets to the children without penalty. Under the Deficit Reduction Act of 2006, the state must be named as beneficiary for any remainder payout. This new rule discourages the use of these annuities to transfer assets to the next generation.
It is important for the planner to follow Medicaid guidelines in order to avoid a penalty. If the payout period of the annuity exceeds the life expectancy in Medicaid tables, then the excess amount of total income payment over the life expectancy becomes a transfer for less than value and represents a penalty. This in turn results in a penalty period equal to the amount of excess divided by the monthly Medicaid rate in that state. Medicaid will not start paying for care until this penalty period has been met with someone else paying for that care. It's important to use a qualified adviser to make sure you do all of this properly.
Prepaid Funeral Instead of or in Addition to Burial Funds
Federal rules allow a person on Medicaid to keep up to $1,500 for funeral expenses. Most states allow a recipient to buy a prepaid funeral plan. The limit for such a plan is usually higher than the $1,500 allowed by Federal rules. As an example, if your state allows $7,000 for a prepaid funeral plan then you should use the full amount you have money for to buy a plan.
Your state may also allow additional costs such as the burial plots, caskets and vaults to be tacked on, thus raising the limit.
Use of Spend Down Resources
People assume money being spent down for Medicaid eligibility needs to be applied to care costs. In reality, Medicaid is only interested in seeing the potential Medicaid recipient's resources reduced to less than $2,000. How the money is spent is only questioned if there has been a transfer for less than value.
In order to qualify for Medicaid more quickly, you may want to use some of the spend down money to pay off debt, trade in the old car and buy a new one. (Medicaid typically allows a community spouse to retain just one car), or fix up the house.
Intend to Return Home
If a single person receiving Medicaid care in a facility has a house, that property could be subject to sale to pay for Medicaid expenses. The house is only protected if a qualifying child or dependent lives there or if the recipient intends on returning home. Some states require a medical doctor to certify a return home, but in many states it only requires the signature of the recipient whether that recipient has justification or not. In the states that allow it, always have your loved one sign an intent to return home. At least you have use of the property while your loved one is still alive.
Most families sell the home and end up with a large amount of cash that must be spent down before the loved one qualifies for Medicaid. Keeping the home avoids losing the entire value of it to spend down. By retaining the home, Medicaid recovery may not come after the full value of the home when the loved one dies.
Potential rental income from the house would also go towards paying the the facility cost and reduce the amount that Medicaid would have to pick up. This could mean that Medicaid recovery using this strategy might go after a smaller share of its cost in the recovery process.
Medicaid treatment of a Home
If the community spouse lives in the home then the home is exempt from determining Medicaid eligibility. It does not count as an asset and prevent the institutional spouse from receiving Medicaid help. On the other hand any other real estate property, not the primary residence, will have to be converted to cash and spent down before Medicaid will start paying the bill.
If the community spouse living in the home does not in turn need Medicaid help in the future then one of two things can happen to the house after the death of the institutional spouse. Legally Medicaid has a claim against the property for recovery services. And in some states a lien against the property, called a TEFRA lien, can be filed in anticipation of Medicaid's cost. The lien can be filed before the death of the care recipient but only a few states actually do that. States that have authority to file these liens often don't so until after the death. At the death of the community spouse, the property cannot be sold until the lien is satisfied. But in states where there is no lien, if the community spouse dies after the institutional spouse it's unlikely that state Medicaid recovery will use the property as an asset for recovery.
And in many states if the property is inside a trust, the state may not consider the house an asset for recovery even though most states have altered their definition of estate to include a trust. Many states still rely on filing a claim in probate court to initiate recovery. The bottom line is very few states are efficient at recovery especially when it comes to a primary residence. Always contact and work with a competent adviser when dealing with recovery issues. You can never assume what your state recovery program will actually do.
Special Home Exemption Rule
It's often the case that a daughter will move in to take care of Mom or Dad or both. In this case Medicaid has a special leniency rule to allow transfer of the home to the daughter and not result in a penalty for a transfer for less than value. If the child provides care for a parent in a parent's home for at least two years, and that care kept the recipient out of a nursing home, the property can be transferred to the child without penalty and the property will not be a subject asset for Medicaid recovery. Medicaid will require some proof of this. Typically an affidavit from a third-party care provider such as a doctor or an agency stipulating that the care was given for at least two years and resulted in keeping the care recipient out of a long-term care facility, will be sufficient evidence. It's important to use a legal adviser to make sure you do this properly.
Joint Tenancy
Many people anticipating Medicaid services are tempted to put a child's or sibling's name on property titles to avoid probate and Medicaid recovery. It may not be a good idea.
There are at least four problems.
• If the other person on the title becomes subject to a judgment, even one arising from an accident, then at least 50% of the property can be lost to the judgment.
• The other person on the title must consent to any disposition of the property. He or she might not be in accordance with what the original owner wants to do.
• Redoing the title must occur at least 5 years prior to claim in order to avoid look back rules and a sanction on a gift to a non spouse owner.
• The person assuming joint ownership has received a gift and loses the step-up in basis at death. Capital gains taxes may have to be paid. And if the property is not the principal residence of the new tenant, the capital gains exclusion cannot be used either.
Transfer Title of the Property to The Community Spouse
Transfers to a spouse of any assets are exempt from Medicaid eligibility rules. An institutional spouse, anticipating Medicaid, can transfer title in the home to the community spouse and it has no effect on Medicaid eligibility. This can be done either with a quit claim deed or through a trust. With the asset no longer in the name of the care recipient, Medicaid recovery cannot use the house as a basis for recovering its costs. And the community spouse can transfer the house to a member of the family and as long as this is done beyond the five-year look back period, then Medicaid can't assess a penalty period for a transfer of assets for less than value. It's important to use a legal adviser to make sure you do this properly.
Trust to Avoid Probate
Common trusts to avoid probate are called "living" or "inter vivos" trusts. A trust never dies, thus it is not subject to probate. Most arrangements make the trust the owner of the property with the original owner(s) as trustee(s) (caretaker as it were) and beneficiaries(s). Thus the property reverts to the estate at death. Most people initiate these trusts to avoid probate. Assets in these trusts, other than a primary residence, are transparent to Medicaid. These trust assets are subject to Medicaid spend down rules.
The trust can be used in states where Medicaid recovery only uses primary residences passing through probate as being subject to recovery. However, a growing number of states do not recognize these arrangements to avoid probate estate recovery and go after primary residences in revocable trusts regardless of ownership.
To do it right for these states requires an irrevocable trust with no life interest, set up 5 years or more before a Medicaid claim. Very few people are willing to do these kinds of trusts.
Some people also include a so-called "life interest" in property in arrangements where property is gifted or in irrevocable trusts. The life interest gives them use of the property until their death even though they don't own it. Medicaid in many states does not recognize life interest and the property is considered to be in the ownership of the person who gifted it and subject to look back rules and recovery.
Move Loved One Needing Care to Another State
A person needing Medicaid covered care in one state may not qualify under that state's rules but might qualify under the rules of a neighboring state. Of particular concern are candidates suffering from dementia or Alzheimer's. It's difficult to quantify their need for care and in some states, those people who are cognitively impaired might not get help with Medicaid even though their needs might be greater than the needs of those who are physically disabled.
Families should consider moving loved ones who have been declined in one state, to live with a member of the family in another state and possibly qualifying in that state. In addition the new state may be more lenient with Medicaid recovery procedures.
A second reason may be that the current state of residence has a very tight supply of Medicaid beds and there is a waiting list. Moving the loved one to a state where there are more available Medicaid beds may avoid the family having to temporarily cover the cost of a non-Medicaid nursing home bed while waiting for one to become available.
Give Away Assets
We have already discussed the moral implications of using Medicaid planning strategies for unfairly qualifying for Medicaid and shifting the burden of cost to the taxpayers. New look back rules under the Deficit Reduction Act have effectively done away with gifting strategies used in the past to accelerate eligibility for Medicaid. This does not mean that gifts cannot be used, but planning must be done many years in advance. Under these new circumstances the whole concept of gifting in order to qualify for Medicaid probably makes little sense.
http://www.reversemortgageloans-rates.com/
http://www.mireverse.com/
Wednesday, November 11, 2009
Seniors Relocation and Real Estate Services
As people age, they often become overly attached to their homes and even though there may be compelling reasons to find other living arrangements, these folks will go to extreme lengths to remain in their homes.
Notwithstanding the affection for their dwellings, there is oftentimes undeniable pressure for seniors to move out and into a different living arrangement. Consider the following:
•The challenge of maintaining a yard and providing upkeep has become too great.
•There is a need for long term care that can't be handled in the home.
•The older person needs supervision that can't be provided in the home.
•The neighborhood has deteriorated and safety is a concern.
•There is a desire to be near children or grandchildren (70% of those 65+ live within 1 hour of a child).
•The home cannot accommodate disability needs.
•There is a need to avoid climbing stairs.
•Assets are tied up in the home and cash is needed through selling the property.
•Driving is no longer possible and available local transportation is not adequate.
•There is a desire for a warmer climate, a yearning for new vistas or a need for challenging new experiences.
Typically, the thought of giving up their residence, finding new accommodations, downsizing personal possessions and executing the move can seem overwhelming to many older people.
Perhaps another obstacle for many seniors, contemplating a move, is the lack of support or help from family members. In fact, some seniors have no children. For others, the children are living far away or are extremely busy with their jobs or their own families. And in some cases -- because people are living so long -- the children are elderly as well and find it difficult to help with the move.
This overwhelming pressure and stress relating to moving can often result in gridlock -- a failure to make any decision at all.
Because many elderly people face such a daunting task with moving, a growing number of seniors relocation specialists are stepping forward to provide assistance. These individuals or companies provide or arrange for the following services:
•advice and counseling,
•help with finding new accommodations,
•downsizing possessions through personal, caring assistance with discarding, donating or arranging estate sales,
•selling the existing property,
•organizing, arranging and scheduling the move,
•unpacking at the new location and removing boxes and other debris,
•setting up and arranging furniture.
And it isn't just the elderly person, contemplating a move, who is hiring these specialists. Active senior communities, independent living facilities, nursing homes and assisted living often retain a relocation specialist to provide advice and arrange services to help seniors with a move. Family members of seniors have also found it more convenient to hire a specialist to help their loved ones with relocation.
So who are these companies or individuals who provide seniors relocation and real estate services? (A list of these providers can be found at www.longtermcarelink.net.)
Seniors Real Estate Specialists
A Seniors Real Estate Specialist (SRES) is a real estate agent who specializes in helping the elderly transition to a new location. The specialist has been trained to recognize the special needs of seniors and understand the various living arrangements available to older people. Most of these specialists concentrate on selling the property and do not directly provide relocation services but they will arrange for companies or individuals or advisors who can provide these other services.
Senior Move Managers
A Senior Move Manager is a member of the National Association of Senior Move Managers. These people often have a background in social work or case management and have experience working with the elderly. As such, they understand the needs and desires of seniors. Senior Move Managers can provide or arrange for any needed service such as counseling and advice, selling property, downsizing or relocating their clients.
Moving Companies
Many independent moving companies recognize the special needs of seniors and they will provide moving services, storage and other specialized programs for this unique group of customers. These companies will often work together with senior advisors and relocation specialists.
Specialists with Developers or Senior Communities
Active senior community developers, senior residences and care facilities have recognized that providing relocation services will help their clients or residents transition more quickly into the new living arrangements. This not only relieves the stress on the seniors but also results in less cost to the providers who might be holding open properties or rooms for a long period of time -- while receiving no income -- due to the difficulty of selling the old residence and relocating.
Professional Organizers
Professional organizers -- many of whom are members of the National Association of Professional Organizers -- have found a unique niche in helping people reduce clutter in their homes or provide a more efficient office or living environment. Because of extensive experience in reducing personal possessions, a professional organizer can be particularly useful in helping to downsize in anticipation of a move.
Professional or Geriatric Care Managers
Care managers help the elderly and their families deal with the issues of long term care. Most care managers also help people, needing long term care, to find appropriate living arrangements. A natural outgrowth of finding new accommodations has resulted in many care managers specializing in relocation services as part of what they do.
Adding Value by Helping to Obtain the Veterans Aid and Attendance Benefit
About 30% of seniors over the age of 65 are war veterans or they are the surviving spouses of these veterans. Under the right circumstances these people could be receiving a veterans benefit called "aid and attendance" which, under the right circumstances, could furnish up to an additional $1,800 a month in income. This is such a well-kept secret that only a fraction of eligible veterans are receiving the benefit. Relocation specialists who are experts on obtaining the veterans aid and attendance benefit are helping seniors find additional income to pay for assisted living or nursing home costs. Seniors are also seeking out these veteran-savvy relocation specialists for help with moving and creating new income after the move. Click here to learn more.
http://www.mireverse.com/
http://www.reversemortgageloans-rates.com/
Notwithstanding the affection for their dwellings, there is oftentimes undeniable pressure for seniors to move out and into a different living arrangement. Consider the following:
•The challenge of maintaining a yard and providing upkeep has become too great.
•There is a need for long term care that can't be handled in the home.
•The older person needs supervision that can't be provided in the home.
•The neighborhood has deteriorated and safety is a concern.
•There is a desire to be near children or grandchildren (70% of those 65+ live within 1 hour of a child).
•The home cannot accommodate disability needs.
•There is a need to avoid climbing stairs.
•Assets are tied up in the home and cash is needed through selling the property.
•Driving is no longer possible and available local transportation is not adequate.
•There is a desire for a warmer climate, a yearning for new vistas or a need for challenging new experiences.
Typically, the thought of giving up their residence, finding new accommodations, downsizing personal possessions and executing the move can seem overwhelming to many older people.
Perhaps another obstacle for many seniors, contemplating a move, is the lack of support or help from family members. In fact, some seniors have no children. For others, the children are living far away or are extremely busy with their jobs or their own families. And in some cases -- because people are living so long -- the children are elderly as well and find it difficult to help with the move.
This overwhelming pressure and stress relating to moving can often result in gridlock -- a failure to make any decision at all.
Because many elderly people face such a daunting task with moving, a growing number of seniors relocation specialists are stepping forward to provide assistance. These individuals or companies provide or arrange for the following services:
•advice and counseling,
•help with finding new accommodations,
•downsizing possessions through personal, caring assistance with discarding, donating or arranging estate sales,
•selling the existing property,
•organizing, arranging and scheduling the move,
•unpacking at the new location and removing boxes and other debris,
•setting up and arranging furniture.
And it isn't just the elderly person, contemplating a move, who is hiring these specialists. Active senior communities, independent living facilities, nursing homes and assisted living often retain a relocation specialist to provide advice and arrange services to help seniors with a move. Family members of seniors have also found it more convenient to hire a specialist to help their loved ones with relocation.
So who are these companies or individuals who provide seniors relocation and real estate services? (A list of these providers can be found at www.longtermcarelink.net.)
Seniors Real Estate Specialists
A Seniors Real Estate Specialist (SRES) is a real estate agent who specializes in helping the elderly transition to a new location. The specialist has been trained to recognize the special needs of seniors and understand the various living arrangements available to older people. Most of these specialists concentrate on selling the property and do not directly provide relocation services but they will arrange for companies or individuals or advisors who can provide these other services.
Senior Move Managers
A Senior Move Manager is a member of the National Association of Senior Move Managers. These people often have a background in social work or case management and have experience working with the elderly. As such, they understand the needs and desires of seniors. Senior Move Managers can provide or arrange for any needed service such as counseling and advice, selling property, downsizing or relocating their clients.
Moving Companies
Many independent moving companies recognize the special needs of seniors and they will provide moving services, storage and other specialized programs for this unique group of customers. These companies will often work together with senior advisors and relocation specialists.
Specialists with Developers or Senior Communities
Active senior community developers, senior residences and care facilities have recognized that providing relocation services will help their clients or residents transition more quickly into the new living arrangements. This not only relieves the stress on the seniors but also results in less cost to the providers who might be holding open properties or rooms for a long period of time -- while receiving no income -- due to the difficulty of selling the old residence and relocating.
Professional Organizers
Professional organizers -- many of whom are members of the National Association of Professional Organizers -- have found a unique niche in helping people reduce clutter in their homes or provide a more efficient office or living environment. Because of extensive experience in reducing personal possessions, a professional organizer can be particularly useful in helping to downsize in anticipation of a move.
Professional or Geriatric Care Managers
Care managers help the elderly and their families deal with the issues of long term care. Most care managers also help people, needing long term care, to find appropriate living arrangements. A natural outgrowth of finding new accommodations has resulted in many care managers specializing in relocation services as part of what they do.
Adding Value by Helping to Obtain the Veterans Aid and Attendance Benefit
About 30% of seniors over the age of 65 are war veterans or they are the surviving spouses of these veterans. Under the right circumstances these people could be receiving a veterans benefit called "aid and attendance" which, under the right circumstances, could furnish up to an additional $1,800 a month in income. This is such a well-kept secret that only a fraction of eligible veterans are receiving the benefit. Relocation specialists who are experts on obtaining the veterans aid and attendance benefit are helping seniors find additional income to pay for assisted living or nursing home costs. Seniors are also seeking out these veteran-savvy relocation specialists for help with moving and creating new income after the move. Click here to learn more.
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